Karmikel Corp. v. May Dept. Stores Co., Inc.

658 F. Supp. 1361, 1987 U.S. Dist. LEXIS 3002
CourtDistrict Court, S.D. New York
DecidedApril 20, 1987
Docket87 Civ. 0782 (PKL)
StatusPublished
Cited by20 cases

This text of 658 F. Supp. 1361 (Karmikel Corp. v. May Dept. Stores Co., 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
Karmikel Corp. v. May Dept. Stores Co., Inc., 658 F. Supp. 1361, 1987 U.S. Dist. LEXIS 3002 (S.D.N.Y. 1987).

Opinion

LEISURE, District Judge:

Plaintiff Karmikel Corporation (“Karmik-el”) brings this action claiming that a trademark, see Affidavit of Miriam L. Siroky, Esq., sworn to on April 9, 1987 (“Siroky Aff.”), Exhibit 2 appended thereto, used by defendants, the May Department Stores Company (“May”) and May Merchandising Corporation (“May Merchandising”) (hereinafter collectively referred to as “defendants”), infringes Karmikel’s trademark, see Plaintiffs Exhibit 2; Siroky Aff.Ex. 1. The instant action is now before the Court upon plaintiffs motion pursuant to Fed.R. Civ.P. 65 for a preliminary injunction. Based on the papers submitted by the parties, oral argument before the Court held on April 14, 1987, and for the reasons set forth below, plaintiffs motion is denied. The following constitutes the Court’s findings of fact and conclusions of law pursuant to Fed.R.Civ.P. 52(a).

FINDINGS OF FACT

A. The Parties

Plaintiff Karmikel is a manufacturer of wearing apparel, which is, and has been sold, throughout the United States primarily in department stores, including the stores owned by defendant May. Affidavit of Robert P. Phillips, sworn to on March 25, 1987 (“Phillips Aff.”), TUT 2 and 4. Kar-mikel’s line of apparel includes men’s, young men’s, and boy’s sportswear, including knit shirts, sweat suits, and jogging shorts. Karmikel’s merchandise is low-priced, made from a blend of 50 percent cotton and 50 percent polyester and is sold in discount and budget stores and budget departments of department stores. Deposition of Robert P. Phillips, dated March 19, 1987 (“Phillips Dep.”), at 14; Affidavit of Gary R. Boyson, sworn to on April 9, 1987 (“Boyson Aff.”), ¶ 21. Plaintiff’s business strategy appears to be “selling low-price knit shirts and athletic wear through discount stores_” The Charlotte Observer, May 24, 1982, 6d, Siroky Aff.Ex. 18; The Charlotte News, July 18, 1984, 10A, Phillips Aff.Ex. B.

Defendants are May and May Merchandising. May is a New York corporation in the business of owning and operating department store chains and other retail outlets throughout the United States. Boyson Aff. ¶ 2. May Merchandising is a subsidiary of May and is engaged in, among other things, developing general marketing strategies for May’s stores. May Merchandising performs its functions through various divisions, each responsible for a different category of merchandise, such as children’s clothing, accessories, cosmetics and the like. Each individual store has its own buyers who select the vendors from whom they will purchase merchandise for resale in the May stores. Boyson Aff. HU 3-4.

B. The Marks

This dispute is based on the alleged infringement of Karmikel’s “Fast Track” trademark. The trademark consists of the word “fast” placed above the word “track”. The words are written on an angle. Both words are divided up by four jagged horizontal lines indicating speed. See P.Ex. 2; Siroky Aff.Ex. 1. The mark is used only on labels sewn inside the clothing, where it is consistently depicted in the color red, with the words “Made in U.S.A.” printed below. See Siroky Aff.Ex. 1. The evidence indicates that plaintiff uses its “Fast Track” trademark interchangeably with four additional trademarks: “On Stage,” “Tops Too,” “Classic Line” and “Michael Scott.”

In the spring of 1982, plaintiff adopted and commenced to use the trademark “Fast Track” for its lines of men’s and boy’s sportswear. On May 17, 1982, Karmikel applied to the United States Patent and Trademark Office (the “Trademark Office”) for a Federal registration to use the mark on “clothing, namely, jogging suits, sweat suits and other active wear.” See Siroky Aff.Ex. 3. The Trademark Office viewed the mark as consisting not only of the words “Fast Track” but of the entire design as well. See Siroky Aff.Ex. 4 (mark *1365 consists of “Fast Track, Plus Design”). On December 23, 1982, the Trademark Office amended plaintiffs application, with plaintiff’s consent, to limit the types of clothing to which the registration would apply. The amendment, included changing the broad term “active wear” to the narrower category “athletic shirts”. Moreover, the description of the clothing was amended to read “clothing, namely, jogging suits, jogging shirts, sweat suits and athletic shirts.” Siroky Aff.Ex. 4.

In April 1983, the Melville Corporation filed an opposition to Karmikel’s registration on the ground that it conflicted with Melville’s use of the trademark “Fast”. See Siroky Aff.Ex. 5. The parties — after extensive litigation — settled their dispute on February 28, 1986. See Siroky Aff.Ex. 6. The eventual registration for Karmik-el’s mark, issued on June 10, 1986, Registration Number 1,296,873, covers use on “clothing, namely, jogging suits, jogging shorts, sweat suits and athletic shirts.” See P.’s Ex. 2; Siroky Aff.Ex. 7. Although plaintiff’s registration is specifically limited to the four aforementioned categories of clothing, Karmikel “has applied its federally registered trademark to a full line of boy’s and young men’s athletic wear and sportswear including sweatsuits, jogging shorts and sport shirts.” Plaintiff’s Memorandum in Support of its motion for a Preliminary Injunction (“P. Memo.”) at 7-8; see also Phillips Dep. at 18 (“Fast Track” is used on all merchandise made by plaintiff other than one shirt style); Phillips Aff. H 3.

Among plaintiff’s earliest customers for “Fast Track” sportswear were department stores owned by May. Sales of “Fast Track” apparel by plaintiff to May commenced in approximately Mid-1982 in a modest amount with steadily increasing amounts until the spring of 1985. At that time, plaintiff claims that sales of “Fast Track” apparel by it to May-owned stores abruptly stopped; only isolated minuscule sales have occurred since May 1985. Total sales by plaintiff of “Fast Track” apparel to May have totaled approximately $250,-000.

Apparently, the aforementioned sales were always to May’s downstairs or budget departments. May and May Merchandising have always distinguished between May’s “upstairs” (meaning high quality) and budget departments. In fact, many May-owned stores have a separate “Budget Store” selling low-priced merchandise. A “Budget Store” Division at May Merchandising is responsible for the merchandising activities of the Budget Stores, in conjunction with budget buyers of the stores. See Boyson Aff. ¶¶ 5-7; Affidavit of Martin L. Rothman, sworn to on April 8, 1987 112 (“Rothman Aff.”). 1

The evidence in the record suggests that the articles of clothing purchased by May from plaintiff were selected by style numbers instead of labels. In fact, plaintiff selected the label to be used on the merchandise and used these labels interchangeably. For the aforementioned reasons, it is reasonable to conclude that neither the labels nor the trademarks were of interest to May’s Budget Department Buyers.

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Bluebook (online)
658 F. Supp. 1361, 1987 U.S. Dist. LEXIS 3002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karmikel-corp-v-may-dept-stores-co-inc-nysd-1987.