JR Tobacco of America, Inc. v. Davidoff of Geneva (CT), Inc.

957 F. Supp. 426, 1997 U.S. Dist. LEXIS 1501, 1997 WL 78510
CourtDistrict Court, S.D. New York
DecidedFebruary 13, 1997
Docket95 Civ. 0319(LAP)
StatusPublished
Cited by6 cases

This text of 957 F. Supp. 426 (JR Tobacco of America, Inc. v. Davidoff of Geneva (CT), 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
JR Tobacco of America, Inc. v. Davidoff of Geneva (CT), Inc., 957 F. Supp. 426, 1997 U.S. Dist. LEXIS 1501, 1997 WL 78510 (S.D.N.Y. 1997).

Opinion

OPINION AND ORDER

PRESEA, District Judge:

This Lanham Act claim arises out of plaintiffs advertisements for premium cigars. Plaintiff and counterclaim defendant JR TOBACCO of AMERICA, Inc. (“JR”) initially sought a declaratory judgment that JR Tobacco’s advertisements for JR Alternatives, its line of premium cigars, are neither false advertisements nor likely to confuse consumers with respect to the source of the products. Defendants Davidoff of Geneva (CT), Inc. (“Davidoff Connecticut”) and AVO Uve-zian Cigars, Ltd. (“AVO”) have moved, along with additional counterclaim plaintiffs, related companies Davidoff & Cie, S.A. (“Davidoff Switzerland”) and Oettinger Imex AG (“Imex”), for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure and under § 43(a) of the Lanham Act, claiming that JR Tobacco’s advertisements are literally false.

*428 I. Introduction

Cigar smoking is currently enjoying an unprecedented renaissance in America. The popularity of cigars has surged dramatically over the past five years. According to the Cigar Association of America, sales of premium cigars rose 29 percent between 1991 and 1994. Power Puffing Cigarettes may Be Out But Interest in Gourmet Cigars has Been Rekindled, Jim Reilly, Syracuse Herald-Journal, (Aug. 8, 1995); see also Cigar Sales Catch Fire; Women Among Buyers, Glenn Collins, Tulsa World (Feb. 5, 1995). During the first five months of 1996, sales of premium cigars were up 51 percent over the previous year. Cigar Craze Sparks Stogie ‘Smuggling’ from Cuba, John Pacenti, AP, San-Antonio Express-News (Nov. 17, 1996). What is more astounding is that these increases come after almost “30 years of consistent decline.” Cigars All Around, Robert Nelson, The Omaha-World-Herald (Feb. 27, 1996).

Various commentators have attributed this resurgence in popularity to different causes. Some have described it as a type of neoprohibitionist rebellion, “a bold puff of smoke ... in the face of salads and no-fat dressing and marathon runnerlooking people harping about the stink and death of cigarette smoking.” Id. The President of the Cigar Association has explained them popularity in similar terms, writing that “‘[c]i-gars are so politically incorrect it makes them more attractive to those who refuse to go along with the herd in today’s militant, neo-prohibitionist environment.’ ” quoted by Joel B. Obermayer, Cigars Suddenly Hot and Longtime Smokers Are Smoldering, The. News & Observer (Aug. 25, 1996). A recent issue of the upscale cigar magazine “Cigar Aficionado” featured an article drawing parallels between the speakeasies of the 1920s as cultural symbols and the cigar lounges of the 1990s. Smokin’ USA: In the 1920s There Were Speakeasies; In the 1990s There Are Cigar Lounges, Shandana Durra-ni, Cigar Aficionado 422 (Winter 1996/97).

The cigar market also appears to have become popular among a broader cross-section of Americans, including younger people and women. 1 Although women account for only 2% of today’s 10 million cigar connoisseurs, numerous publications have focused on the significance of the cigar as a feminist symbol. Tobacco Vogue Women Fire Up Cigars, Put “She” in Hedonism, Melanie Wells, USA Today (June 25, 1996). By smoking cigars, some say, women are “crashing one of society’s last traditional male bastions.” Id. As for many other cigar smokers, smoking a cigar purportedly evokes an image of power for women. Id.; Nelson, supra.

Whether the explosion in cigar sales is attributable to “a backlash by ’90s voluptuaries ... shaking a stogie at ‘this neo-puritan era of chiseled abs and pinched enjoyments,’ ” Reilly, supra, or to more traditional associations between cigar smoking and status and wealth, 2 the current popularity of cigar smoking is undeniable. In New York alone, several new cigar bars have opened; before long, “every neighborhood will have a cigar lounge with humidors for rent.” Another Cigar Lounge Opens, The New York Times, C2 (Jan. 29, 1997). Just last year two new books about cigars appeared, encouraging cigar neophytes to cultivate a more studied appreciation of cigars through the knowledge of the cigar connoisseurs featured in these books. It is amidst this popularity surge in cigar smoking that counterclaim plaintiff Davidoff brings its Lanham Act claim against JR Tobacco’s advertisement based on the latter’s advertising brochure for its own line of premium cigars, JR Alternatives. Davidoff has moved for summary judgment, and JR Tobacco has opposed this motion. For the reasons explained below, counterclaim plaintiffs motion is granted.

*429 II. Background

A. JR Tobacco’s Cigars

Defendant and counterclaim plaintiff Davi-doff Connecticut along with additional counterclaim plaintiffs Davidoff Switzerland Avo, and Imex (collectively “Davidoff’) are related corporate entities engaged in manufacturing and selling premium cigars. 3 Davidoff sells cigars under the registered trademarks of DAVIDOFF, ZINO, AVO, and THE GRIFFIN’S.

Plaintiff and counterclaim defendant is a mail-order cigar company. JR sells name brand cigars, JR private label cigars as well as JR Alternatives cigars. (Rothman Declaration executed March 11, 1996 (“Rothman Decl.”) ¶2). The President of JR Tobacco, Lewis Rothman, consulted a variety of prominent cigar manufacturers around the world in developing his line of premium cigars, JR Alternatives. Among the manufacturers he consulted are General Cigar Co., Inc., Mata-sa, and Villazon. (Rothman Decl. ¶ 6). Although these names may be foreign to those uninitiated to the world of cigars, they figure among the most celebrated of South American cigar manufacturers, producing such world famous cigar brands as Macanudo, Partagas, Punch and Rey del Mundo. (Id.).

As Mr. Rothman explains, he chose over 175 of what he considered to be the best cigars of the world, organized them into groups of 25, grouping together those similar in size, shape, taste, origin and wrapper col- or. (Rothman Deck ¶ 15). According to Mr. Rothman, it is common practice in the cigar business to sell a single cigar under numerous labels at different prices. (Rothman Deck ¶ 9). After having sorted the cigars into groups, Mr. Rothman requested the manufacturers whom he had consulted to produce, under the JR Alternatives label, a single cigar for each of the 25 groups according to his specifications. (Rothman Deck ¶ 14).

Among the cigars imitated were the Maca-nudo line, purportedly the most popular premium brand of cigar sold in the United States. Mr. Rothman suggests that DAVI-DOFF, AVO and THE GRIFFIN’S are simply copies of Macanudo cigars. (Rothman Deck ¶ 16).

Mr.

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