Klein-Becker USA, LLC v. Product Quest Manufacturing, Inc.

429 F. Supp. 2d 1248, 2005 U.S. Dist. LEXIS 10807, 2005 WL 3981034
CourtDistrict Court, D. Utah
DecidedJune 2, 2005
Docket2:04CV 01146 DS
StatusPublished
Cited by4 cases

This text of 429 F. Supp. 2d 1248 (Klein-Becker USA, LLC v. Product Quest Manufacturing, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klein-Becker USA, LLC v. Product Quest Manufacturing, Inc., 429 F. Supp. 2d 1248, 2005 U.S. Dist. LEXIS 10807, 2005 WL 3981034 (D. Utah 2005).

Opinion

MEMORANDUM OPINION AND ORDER RE: PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

SAM, Senior District Judge.

I. INTRODUCTION

Plaintiff Klein-Becker usa, LLC (“Klein-Becker” or “Plaintiff’) brings this lawsuit against Defendants Product Quest Manufacturing, Inc. (“Product Quest”) and Vital Science, Corp. (“Vital Science”) for, among other things, infringement of its trademark and trade dress. Pursuant to Fed.R.Civ.P. 65, Plaintiff has moved the court for a preliminary injunction against Defendants seeking to enjoin their alleged infringement. An evidentiary hearing was held, followed by post-hearing briefing. For the reasons set forth below, Plaintiffs Motion for Preliminary Injunction is DENIED.

Plaintiff is the exclusive licensee for a cosmetic product by the name of StriVec-tin-SD® (Striadril™) ( sometimes hereafter “StriVectin”). Striadril™ is a proprietary ingredient of StriVectin. StriVectin-SD® is a registered trademark in both the United States and Canada. StriVec-tin-SD®, introduced in July of 2002, was originally sold as a stretch mark cream. However, after women started to use the product on their faces and noticed positive results, Plaintiff repositioned it as an anti-wrinkle cream in February of 2003. Stri-Vectin-SD® is sold for $135.00 per 6 oz. tube on the internet, at high-end department stores, at GNC stores and at spas and salons. Plaintiff expends significant resources advertising its product and has gained some' national attention.

Defendant Product Quest is in the business of manufacturing private label products for various retail chains. It manufactures the compound that goes into the container and has the packaging made. It also acts as a contract manufacturer. In that role, it makes the product that goes inside the container, but provides no other services. In January of 2004, Todd Kwait (“Kwait”) of Product Quest first learned about StriVectin-SD® and began to consider doing a value brand alternative. Kwait has a history in the anti-wrinkle skin care products. After a period of research, Product Quest began to manufacture and distribute NuVectin™ as a therapy for wrinkles. NuVectin™ is sold for $24.99 per 6 oz. tube at retail outlets such as drug stores and supermarkets.

Defendant Vital Science is a Canadian company that purchases the compound that goes inside the tube from Product *1251 Quest. Vital Science markets its product in Canada as Dermaglow NuVectin. Vital Science does not market its product in the United States and has taken affirmative steps to prevent sales in the United States. Dermaglow NuVectin sells for $120.00 Canadian.

II. STANDARD FOR INJUNCTIVE RELIEF

To obtain a preliminary injunction, a party must clearly establish the following: (1) a substantial likelihood of success on the merits; (2) irreparable injury to the movant if the injunction is denied; (3) the threatened injury to the movant outweighs the injury to the other party: and (4) the injunction is not adverse to the public interest. Kikumura v. Hurley, 242 F.3d 950, 955 (10th Cir.2001). Certain preliminary injunction requests, however, are disfavored at law and are subject to a heightened burden. They include: “(1) a preliminary injunction that disturbs the status quo; (2) a preliminary injunction that is mandatory as opposed to prohibitory; and (3) a preliminary injunction that affords the movant substantially all the relief he may recover at the conclusion of a full trial on the merits.” SCFC ILC, Inc. v. Visa USA, Inc., 936 F.2d 1096, 1098-99 (10th Cir.1991). The heightened burden was recently modified in O Centro Espirita Beneficiente Uniao do Vegetal v. Ashcroft, 389 F.3d 973, 975-976 (10th Cir.2004)(emphasis added), cert. granted, 73 U.S.L.W. 3498, 544 U.S. 973, 125 S.Ct. 1846, 161 L.Ed.2d 723 (2005).

With one important alteration, a majority of the en banc court has voted to affirm the core holding of SCFC ILC.... Thus, if a movant seeks a preliminary injunction that falls into one of the three categories identified in SCFC ILC, the movant must satisfy a heightened burden. The en banc court does, however, jettison that part of SCFC ILC which describes the showing the movant must make in such situations as “heavily and compellingly.” SCFC ILC, 936 F.2d at 1098. Instead, the en banc court holds that courts in this Circuit must recognize that any preliminary injunction fitting within one of the disfavored categories must be more closely scrutinized to assure that the exigencies of the case support the granting of a remedy that is extraordinary even in the normal course. Furthermore, because a historically disfavored preliminary injunction operates outside of the normal parameters for interim relief, movants seeking such an injunction are not entitled to rely on this Circuit’s modified likelihood-of-success-on-the-merits standard. Instead, a party seeking such an injunction must make a strong showing both with regard to the likelihood of success on the merits and with regard to the balance of harms, and may not rely on our modified likelihood-of-success-on-the-merits standard.

Plaintiff moves the Court to enjoin Defendants from, among other things, continuing to use the name NuVectin™ or any cosmetic product utilizing a vectin suffix, and from selling products “which bear Klein-Becker’s trade dress or any confusingly similar variation thereof’. Compl. at 19. Because the relief sought would alter the status quo and is mandatory, Plaintiff must meet the heightened burden, as set forth above, for a preliminary injunction to issue.

III. DISCUSSION

Plaintiff seeks to enjoin Defendants from infringing in any way on either its trademark or trade dress.

A. Likelihood of Success on the Merits.

As noted above, Plaintiff must make a strong showing with regard to the likeli *1252 hood of success on the merits. Having considered all the relevant factors as a whole, the Court, for the reasons that follow, concludes that Plaintiff has failed to meet its burden of a strong showing of likelihood of success on the merits as to either its trademark infringement claim or its trade dress infringement claim.

1. Trademark Infringement

A trademark includes “ any word, name, symbol, or device or any combination thereof ... to identify and distinguish ... goods ... from those manufactured or sold by others and to indicate the source of the goods, even if that source is unknown”. 15 U.S.C. § 1127. Unauthorized use or imitation of a registered mark in commerce in a way that is likely to cause confusion is prohibited. Id. at § 1114.

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429 F. Supp. 2d 1248, 2005 U.S. Dist. LEXIS 10807, 2005 WL 3981034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klein-becker-usa-llc-v-product-quest-manufacturing-inc-utd-2005.