Home Shopping Club, Inc. v. Charles of the Ritz Group, Inc.

820 F. Supp. 763, 1993 U.S. Dist. LEXIS 6194, 1993 WL 158761
CourtDistrict Court, S.D. New York
DecidedMay 7, 1993
Docket92 Civ. 8173 (CSH)
StatusPublished
Cited by5 cases

This text of 820 F. Supp. 763 (Home Shopping Club, Inc. v. Charles of the Ritz Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Shopping Club, Inc. v. Charles of the Ritz Group, Inc., 820 F. Supp. 763, 1993 U.S. Dist. LEXIS 6194, 1993 WL 158761 (S.D.N.Y. 1993).

Opinion

HAIGHT, District Judge:

Plaintiff Home Shopping Club, Inc., (“HSC”) commenced this Lanham Act suit against defendant Charles of the Ritz Group, Ltd., (“CORGL”) in the United States District Court for the Middle District of Florida. HSC alleged causes of action for federal trademark infringement under 15 U.S.C. § 1114; use of a false designation of origin under 15 U.S.C. § 1125(a); and, under principles of pendent jurisdiction, causes of action based upon the common law and statutes of the State of Florida. HSC sought injunc-tive relief and money damages.

CORGL interposed an answer and then an amended answer, denying liability and objecting to the venue. HSC moved for a preliminary injunction, but before the district judge in Florida reached the merits of that motion, he transferred the action to this Court.

Thereafter discovery was completed. Counsel for the parties were directed to submit designated portions of the depositions *765 and exhibits upon which they would rely at oral argument, which took place on February 11, 1993. Counsel argued the cause on that date, plaintiff seeking a preliminary injunction and defendant opposing that application. This opinion resolves plaintiff HSC’s motion for preliminary injunctive relief.

Background

HSC is a Delaware corporation with its principal place of business in St. Petersburg, Florida. HSC is a self-described national marketer of consumer goods through “interactive retail television,” telephone marketing, and national catalogue, telephone and mail order sales.

Among other goods, HSC sells a wide variety of cosmetic products to customers in every state of the Union. For purposes of the definitions contained in 15 U.S.C. § 1127, HSC is a related company to and under common ownership with Home Shopping Network, Inc.; HSC Cosmetics, Inc.; HSC Lifeway Products, Inc.; and HSC Mail Order, Inc., all Florida corporations.

While HSC markets its products in various ways, its primary effort takes place on television. Television viewers who subscribe to a cable television service may obtain, as part of their cable package, the Home Shopping Club Channel. To purchase products advertised on the HSC channel, a consumer must become a member of the Home Shopping Club, but the criteria for membership are not onerous. A club member places an order by telephoning the number displayed on the television screen while the particular product is being touted by one or more members of the HSC sales staff, referred to on the program as “hosts.”

On August 5, 1986, Lindow, Ltd., a Connecticut corporation, obtained United States Registration No. 1,403,688 from the United States Patent and Trademark Office for the trademark ESSENCE OF TIME. The ESSENCE OF TIME trademark is described in the registration as being for “cosmetics, namely, skin emollient, in Class 3 (U.S.C. 51).” It is undisputed that in 1991 HSC acquired by assignment from Lindow all rights to the ESSENCE OF TIME trademark and federal registration thereof, as well as the good will associated therewith.

ESSENCE OF TIME skin cream is sold in a 2-ounce jar. It is a light brown color, although that color disappears when the cream is applied to the skin and rubbed into it. According to HSC’s televised presentations, the cream is brown because it contains peat, a substance which is said to hold moisture and consequently makes the skin cream a good moisturizer, thereby retarding or preventing the outward manifestations of age. The HSC “hosts” advise the television audience, usually in breathless tones, of the stranger-than-fiction but nonetheless true circumstances giving rise to the cream. Some years ago in England the body of a ' man was found in what the HSC presentations refer as the “Lindow Moss Peat Bog.” At first it was thought that the man was a recent murder victim, but scientific tests demonstrated that he had died 2,500 years ago. His fingernails, skin and hair were remarkably well preserved for a specimen so ancient; and it is claimed that the man was preserved by the peat in the bog. Some entrepreneur, presumably the incorporator of Lindow, Ltd., decided to add what the television presentations refer to as “unblemished Lindow peat moss” to skin cream and market the cream on the theory, in substance, that if the peat could preserve the Lindow Moss Peat Bog Man for 2,500 years, think what it can do for you.

While the HSC television presentations claim that men also find ESSENCE OF TIME beneficial, the product’s primary market is women who watch television and have reached that level of maturity when they begin to be concerned by the appearance of aging. HSC' markets a number of products under the trademark ESSENCE OF TIME. There is the skin cream which has been described thus far. It is referred to in HSC printed advertisements as a “Night Creme” [sic] and is described as follows:

Proven effective in helping skin maintain a nourished, radiant glow. Smooth on at bedtime and feel the softness and smoothness of your skin after just one application.

The substance of these claims and instructions are reiterated in the television presen *766 tations. HSC also markets under the ESSENCE OF TIME trade name a “Daytime Liquid Moisturizer,” an “Exfoliating Scrub,” a “Facial Masque,” and a “Body Cream Moisturizer.”

HSC marketed the ESSENCE OF TIME skin cream and other products bearing that name at least from November 1991, throughout all of 1992, and continues to market them today.

CORGL is a Delaware corporation with its principal place of business in New York City. The company and its predecessors have since at least 1940 used .the trademark Charles of the Ritz in connection with a line of cosmetics products, including skin care products. In the fall of 1991, the Charles of the Ritz skin care line was comprised of about sixteen products. The company also marketed a separate CHARLES OF THE RITZ RE-VENESCENCE line of about thirteen skin care products.

In 1991, executives of defendant CORGL began to consider restoring its long-established cosmetic line to its more traditional marketing positioning, following a relatively brief time when the line was being directed to younger customers at lower prices. CORGL decided to once again market more expensive products through department stores, where floor displays could be mounted and beauty advisors be available to consult with customers. One of the chains of department stores CORGL dealt with was J.C. Penney. In a Penney intra-company bulletin, a sales executive advised all 440 Penney stores that on June 5, 1992, Penney would institute a national and local television campaign for Charles of the Ritz products, and place them on sale in all Penney stores. CORGL also markets its products through other department stores and certain independent drug stores.

One of the products which CORGL began to market in June 1992 is a skin cream called TIMELESS ESSENCE. TIMELESS ESSENCE is described as a “Night Recovery Cream.” TIMELESS ESSENCE is a white skin cream sold in a box containing a glass jar which holds 1.7 ounces of cream.

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820 F. Supp. 763, 1993 U.S. Dist. LEXIS 6194, 1993 WL 158761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-shopping-club-inc-v-charles-of-the-ritz-group-inc-nysd-1993.