Landscape Forms, Inc. v. Columbia Cascade Company

113 F.3d 373, 161 A.L.R. Fed. 737, 42 U.S.P.Q. 2d (BNA) 1641, 1997 U.S. App. LEXIS 11377, 1997 WL 253347
CourtCourt of Appeals for the Second Circuit
DecidedMay 16, 1997
Docket1421, Docket 96-9465
StatusPublished
Cited by189 cases

This text of 113 F.3d 373 (Landscape Forms, Inc. v. Columbia Cascade Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Landscape Forms, Inc. v. Columbia Cascade Company, 113 F.3d 373, 161 A.L.R. Fed. 737, 42 U.S.P.Q. 2d (BNA) 1641, 1997 U.S. App. LEXIS 11377, 1997 WL 253347 (2d Cir. 1997).

Opinion

OAKES, Senior Circuit Judge.

This appeal raises the difficult question of under what circumstances the law of trade dress appropriately protects industrial design. Those who would seek monopolistic protection for industrial design, but are unable to obtain a design patent, have had little success under the law of copyright even with the “conceptual separateness” gloss provided by the 1976 Act. 1 Given impetus by the Supreme Court’s opinion in Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 112 S.Ct. 2753, 120 L.Ed.2d 615 (1992), they have turned to the law of trade dress as it has evolved under the Lanham Act. When evaluating these claims, courts must not lose sight of the underlying purpose of the Lanham Act, which is protecting consumers and manufacturers from deceptive representations of affiliation and origin.

This is the second appeal of a preliminary injunction entered by the United States District Court for the Southern District of New York (John E. Sprizzo, Judge) in an action for trade dress infringement brought under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and state law. Plaintiff-Appellee Landscape Forms, Inc. (“Landscape”), a manufacturer of site furniture used in airports, parks, shopping malls and other similar locations, is incorporated in Michigan. Defendant-Appellant Columbia Cascade Co. (“Columbia”) competes with Landscape in the site furniture market and is incorporated in Oregon. On October 16, 1996, the district court entered an order reinstating an injunction previously signed on March 23, 1995, and filed on April 7, 1995, which prevented Columbia from “soliciting or accepting orders, delivering or selling” specified commercial, outdoor furniture. Columbia filed a Notice of Motion for a Stay of the Injunction Pending Appeal and a Notice of Appeal on November 8, 1996. A Motion for an Expedited Appeal was granted on December 3, 1996.

Landscape originally filed this lawsuit in November 1994 and then moved for a preliminary injunction on December 30, 1994. After several days of hearings, the district court enjoined Columbia from selling, in the United States, an entire line of its outdoor furniture which is similar to Landscape’s attractive “Petoskey” line.

The Petoskey line includes two different outdoor trash cans, two benches without back support, and six benches with backs. Of the benches in this last group, three stand on two legs, while three stand on two front legs and a pair of adjacent hind legs. All of the products, with the exception of one of the two trash cans, use curved steel pipe for support. The seating surfaces of the benches are wooden slats, steel rods, or curved, perforated metal sheets. All ten items are closely resembled by comparable Columbia products.

Our November 13, 1995, decision in the first appeal vacated the district court’s initial order enjoining Columbia and remanded this matter for consideration of Columbia’s affirmative defense that the design of Landscape’s furniture was functional. Landscape Forms, Inc. v. Columbia Cascade Co., 70 F.3d 251 (2d Cir.1995). That decision did not reach the issue whether there was a likelihood that consumers would be confused as to the identity of the manufacturer of the two product lines. Columbia now appeals the district court’s rejection of the functionality defense as well as the issues raised in its first *376 appeal. Citing Knitwaves, Inc. v. Lollytogs Ltd., 71 F.3d 996, 1008-09 (2d Cir.1995), Columbia also argues that Landscape’s designs do not qualify for trade dress protection because they are not “likely to serve primarily as source designators.” Our jurisdiction is based on 28 U.S.C. § 1292(a)(1). We agree with Columbia’s last contention and, therefore, once again vacate the injunction.

Background

A. District court findings prior to the first appeal.

On February 14, 1995, the district court issued an opinion from the bench. Without discussing whether consumers recognized Landscape as the manufacturer of the Petoskey furniture, the court found that Landscape’s designs were unique and distinctive. It then went on to apply the eight, nonexclusive factors from Polaroid Corp. v. Polarad Elecs. Corp., 287 F.2d 492, 495 (2d Cir.1961), to conclude that consumers were likely to be confused as to the identity of maker of the accused site furniture. 2 The district court found that the only factor “which may cut in favor of the defendant” was the sophistication of the relevant consumers who are contractors, landscape architects and other design professionals. But, in its discussion of other factors, the court mentioned several considerations favoring Columbia, such as the facts that each company’s products are labeled with the name of the manufacturer; that the benches were sold through catalogs that identify the manufacturer; and that there was little evidence of actual confusion. Among the factors supporting the injunction, the district court seemed most swayed by the strength of Landscape’s designs, which the court adjudged “unique, attractive and beautiful”; the similarity of the accused products’ overall look; and Columbia’s apparent bad faith in deliberately copying Landscape’s designs.

B. District court findings following our remand.

Following our remand for consideration of Columbia’s defense that the design of the site furniture was functional, and, thus, ineligible for trade dress protection, the district court heard from additional witnesses and made the following findings: First, “[wjhile it is unquestionably true that the Petoskey bench is an excellent and innovative design, it is clear from the evidence that there are a large number of available designs that can, with even a modest amount of creative effort, be utilized to compete effectively in terms of price, quality, and aesthetic appeal.” Landscape Forms, Inc. v. Columbia Cascade Co., 940 F.Supp. 663, 665 (S.D.N.Y.1996). Second, persuasive expert testimony established that several competitive designs already exist. Id. Third, Columbia failed to show that its overall business was adversely affected by the trade dress protection afforded to Landscape’s products; and, in fact, the accused line of site furniture was a “small fraction” of Columbia’s business. Id. at 666. The district court never found that Landscape’s designs were recognized as such by consumers in the marketplace, or, in other words, that they had acquired secondary meaning. Indeed, when asked by Landscape’s counsel to make such a finding, the court expressed doubt that there was “enough of a record” to do so.

Discussion

To obtain a preliminary injunction, a party must show (a) irreparable harm should the injunction not be granted, and (b) either (i) a likelihood of success on the merits, or (ii) sufficiently serious questions going to the merits and a balance of hardships decidedly in favor of the movant.

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113 F.3d 373, 161 A.L.R. Fed. 737, 42 U.S.P.Q. 2d (BNA) 1641, 1997 U.S. App. LEXIS 11377, 1997 WL 253347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landscape-forms-inc-v-columbia-cascade-company-ca2-1997.