ITC Ltd. v. Punchgini, Inc.

373 F. Supp. 2d 275, 74 U.S.P.Q. 2d (BNA) 1239, 2005 U.S. Dist. LEXIS 2026, 2005 WL 351121
CourtDistrict Court, S.D. New York
DecidedFebruary 10, 2005
Docket03 Civ. 1306(GEL)
StatusPublished
Cited by14 cases

This text of 373 F. Supp. 2d 275 (ITC Ltd. v. Punchgini, 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
ITC Ltd. v. Punchgini, Inc., 373 F. Supp. 2d 275, 74 U.S.P.Q. 2d (BNA) 1239, 2005 U.S. Dist. LEXIS 2026, 2005 WL 351121 (S.D.N.Y. 2005).

Opinion

OPINION AND ORDER

LYNCH, District Judge.

Plaintiffs ITC Limited and ITC Hotels Limited (collectively, “ITC”) sue defendant Punchgini, Inc. and its principals, alleging defendants’ “Bukhara Grill,” a restaurant with, until recently, two locations in Manhattan, infringes upon ITC’s rights in the “Bukhara” trademark and dress associated with its own “Bukhara” restaurants located throughout the world. Defendants move for summary judgment dismissing the complaint in its entirety, and separately move in limine to exclude the testimony of ITC’s expert witness. The summary judgment motion will be granted in its entirety, mooting the motion in limine.

BACKGROUND

Plaintiffs ITC Limited and ITC Hotels Limited are large Indian corporations engaged in a variety of ventures, including ownership of the Maurya Sheraton Hotel & Towers in New Delhi, India. 1 , 2 The Maurya Sheraton complex contains a handful of restaurants, including “Bukhara,” which opened in 1977, and is named for the legendary Great Silk Road city in Uzbekistan. (P.R. 56.1 Stmt. ¶ 84; Marsh Reply Decl. Ex. 35.) As conceived by ITC, the menu of the New Delhi “Bukhara” is drawn from the cuisine of the “North West Frontier” region of India, with a decor to match: “The restaurant’s look is pure Flintstones: walls of boulders, solid-wood tables and menus printed on laminated sections of tree.” (Curry Without the Hurry, Time, Dec. 23, 2002, Koustenis Decl. Ex. 60; see also P.R. 56.1 Stmt. ¶¶ 84-86; Draft Concept Note, Koustenis Decl. Ex. 54.) Acting as either operators *277 or franchisers, ITC replicated its flagship “Bukhara” restaurant at locations throughout the world, including Ajman, Bangkok, Hong Kong, Kathmandu, Montreal, and Singapore. (P.R. 56.1 Stmt. ¶ 88.) ITC also opened a “Bukhara” in New York in 1986, and licensed use of the “Bukhara” mark, for which it had obtained United States trademark registration for restaurant services in 1987, to a Chicago restaurateur that same year. ITC’s award-winning “Bukhara” restaurants have garnered significant media attention in the past quarter-century. (P.R. 56.1 Stmt. ¶¶ 95-98, 105-106; Koustenis Decl. Exs. 59-71, 78, 80, 81 (collecting media reports touting various “Bukhara” restaurants and awards).)

The New York ITC “Bukhara” closed in 1991, and ITC terminated its licensing agreement with the Chicago “Bukhara” on August 28, 1997. Since terminating the Chicago licensing agreement, ITC has not owned, operated, or licensed a restaurant in the United States using the “Bukhara” mark or dress. ITC asserts that it has continued to seek out appropriate business partners to open a “Bukhara” restaurant in the United States, a contention strongly disputed by defendants in defending against ITC’s trademark infringement claims, see Part II below. In the past three years, ITC, in partnership with its U.S. importer, King Maker Marketing, has begun marketing a line of packaged food products in the United States, including “Dal Bukhara,” derived from the dish of that name served at ITC’s New Delhi “Bukhara,” and has applied for trademark registrations for the “Bukhara” mark in connection with food products. (Sekhar Aff. ¶¶ 21-25; Marsh Decl. Ex. 6 (trademark registration applications).)

When this litigation began, defendants owned two restaurants in New York City, “Bukhara Grill” and “Bukhara Grill II.” 3 The first of these restaurants was opened in 1999, and the second in 2001. Defendants Vicky Vij, Raja Jhanjee, Mahendra Singh, Bachan Rawat, and Dhandu Ram, all employees of defendant Punchgini, Inc., were previously employed by ITC. (D. Objections and Responses to Plaintiffs’ First Set of Interrogatories, Koustenis Decl. Ex. 52, at 5-6.) ITC alleges that many aspects of defendants’ “Bukhara Grill” restaurants are borrowed from its “Bukhara” franchise, including the rustic decor, heavy wooden menus, use of checkered bibs in lieu' of napkins, and logo font. (P. Opp. Mem.18.)

On March 22, 2000, counsel for ITC sent defendant Raja Jhanji a letter informing him of ITC’s registration of the “Bukhara” mark, charging Punchgini, Inc. with “passing off [their] new business as that of’ ITC, and threatening legal proceedings unless defendants desisted from use of the “Bukhara” mark and compensated ITC accordingly. (Marsh Decl. Ex. 23.) Defendants’ counsel responded that their preliminary investigation showed no present use of the “Bukhara” mark by ITC in the United States, and encouraged discussions between the parties to avoid litigation. (Marsh Decl. Ex. 24.) In June and July, 2000, defendants’ counsel attempted to engage ITC’s counsel in discussion of their clients’ respective rights, stating they *278 would assume ITC’s rights in the “Bukhara” mark had been abandoned if no response was received by a date certain. (Marsh Decl. Exs. 25-26.) Neither ITC nor its counsel responded. Almost two years later, in April É002, ITC’s counsel again wrote to defendants’ counsel complaining that no formal response had ever been received to their first cease and desist letter, and that defendants continued to violate ITC’s property rights, particularly as “Bukhara Grill II” had opened by this point. (Marsh Decl. Ex. 27.) Defendant’s counsel responded within days, restating their position that ITC had abandoned the “Bukhara” mark. (Marsh Decl. Ex. 28.)

No further communication was received from ITC or its counsel until the complaint in the instant case was filed on February 26, 2003. Defendants moved to dismiss the complaint, but their motion was denied. See Order of June 9, 2003. Having survived defendants’ motion to dismiss, ITC amended its complaint on April 9, 2004. The Amended Complaint stated five causes of action in somewhat conclusory terms, three under the Lanham Act, 15 U.S.C. § 1051 et seq. (infringement of registered trademark, false designation of origin, unfair competition), one under New York General Business Law § 349 (deceptive acts and practices), and one under New York common law (trademark infringement and unfair competition). But in opposing defendants’ present motion for summary judgment, ITC has clarified its complaint as claiming only trademark and trade dress infringement, unfair competition, and false advertising claims. (P. Opp.Mem.l — 2.) Defendants asserted a number of counterclaims in their Amended Answer of April 26, 2004, including a claim for cancellation of ITC’s trademark registration for the “Bukhara” mark. (Counterclaim II, Am. Answer ¶¶ 16-36.)

Defendants now move for summary judgment to dismiss the complaint against them and to cancel ITC’s trademark registration for the “Bukhara” mark. Defendants also move to exclude the testimony of ITC’s expert witness, William J. Guil-foyle.

DISCUSSION

I. Summary Judgment Standard

Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P.

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373 F. Supp. 2d 275, 74 U.S.P.Q. 2d (BNA) 1239, 2005 U.S. Dist. LEXIS 2026, 2005 WL 351121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/itc-ltd-v-punchgini-inc-nysd-2005.