Lever Bros. Co. v. Mattel, Inc.

609 F. Supp. 1395, 226 U.S.P.Q. (BNA) 752, 1985 U.S. Dist. LEXIS 19697
CourtDistrict Court, S.D. New York
DecidedMay 20, 1985
Docket85 Civ. 1657 (CBM)
StatusPublished
Cited by4 cases

This text of 609 F. Supp. 1395 (Lever Bros. Co. v. Mattel, 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
Lever Bros. Co. v. Mattel, Inc., 609 F. Supp. 1395, 226 U.S.P.Q. (BNA) 752, 1985 U.S. Dist. LEXIS 19697 (S.D.N.Y. 1985).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

MOTLEY, Chief Judge.

This is an action for trademark infringement and unfair competition brought pursuant to the Lanham Act, 15 U.S.C. section 1051, et seq., and common law. Plaintiff Lever Brothers Company (Lever) seeks to enjoin sale and distribution of a plush toy product known as “Snuggles the Seal,” designed by defendant Flair Licensing Inc. (Flair) and produced by defendant Mattel, Inc. (Mattel). Plaintiff alleges that defendant’s product infringes on plaintiff’s putative trademark, a teddy bear named “Snuggle” which it created to promote its “Snuggle” fabric softener. Plaintiff asserts that it has invested millions of dollars in its lovable “spokesbear” and urges that there is a likelihood of consumer confusion between “Snuggle” and “Snuggles the Seal.”

The court heard oral argument on March 7, 1985 on plaintiff’s motion for a temporary restraining order and denied the application at that time. An evidentiary hearing on plaintiff’s motion for a preliminary injunction was held on March 11 and 12, 1985. In denying the motion for a preliminary injunction, the court makes the following findings of fact and conclusions of law. FINDINGS OF FACT

Plaintiff Lever is a manufacturer and distributor of fabric softeners and other household products. (Transcript of Preliminary Injunction Hearing at 7). In 1982, Lever introduced a new brand of fabric softener distributed under the registered trademark “Snuggle.” (Tr. 13; Exh. 19). Defendant Mattel, the world’s largest toy company, distributes plush toys through its “Emotions” division. (Tr. 183). Emotions has, since February 1985, marketed a plush toy baby seal known as “Snuggles the Seal.” (Tr. 176, 222). Defendant Flair, an independent licensing contractor, created “Snuggles the Seal” and licensed it to Mattel. (Tr. 187).

Background on “Snuggle”

Following the success of a similar marketing plan by affiliated European compa *1397 nies, Lever decided to market a new fabric softener called “Snuggle” with a teddy-bear character of the same name. The bear was designed as the centerpiece of the promotion campaign and was intended to have a distinct public identity. The bear character and the “Snuggle” name were chosen because of their universal associations with softness and emotional warmth. (Tr. 8-12). Lever retained Kermit Love, a puppet designer known for his work on television’s “Sesame Street,” to create the “Snuggle” character. (Tr. 8-12).

Following its introduction in the Milwaukee area in September, 1982, “Snuggle” liquid fabric softener has been marketed in areas comprising approximately 37 percent of United States households. (Tr. 84). Although it has yet to be offered in New York City, “Snuggle” has made significant inroads in the national fabric softener market. (Tr. 12-35). In addition, Lever has marketed “Snuggle” in sheet form in limited markets. (Tr. 32-34).

“Snuggle” bear has appeared on every bottle and box of “Snuggle” sold, and has been featured in extensive television and print advertising for the product. In the television commercials, “Snuggle” bear is the sole speaking character. (Tr. 13-15, 22, 28, 33, 38, 54, Exh. 1-3, 9, 9A). In all, Lever has spent $30 million in promoting, “Snuggle” fabric softener. (Exh. 7). Lever has also registered the term “Snuggle” with the Patent and Trademark Office for use in connection with fabric softeners, but has not sought trademark registration for the term in connection with any other product. (Tr. 64-65, Exh. 19).

In connection with its marketing of “Snuggle” fabric softener in each new area, Lever has distributed several different versions of a plush toy bear to capitalize on positive public reaction to the “Snuggle” bear character. In November 1982, Lever sold through direct mail in the Milwaukee area approximately 1000 to 2000 12-inch plush toy bears. These were generic teddy bears manufactured by the Dakin Company to which Lever affixed a plastic “Snuggle” name tag. (Tr. 18-20, Exh. 11). Lever also distributed 49,600 three inch bears as a promotional gift shrink-wrapped to 96-ounce bottles in the same test market area. (Tr. 20-21, Exh. 5).

Lever then had created for it a six and one half inch version of “Snuggle” bear, which it has offered by mail for cash or for multiple proofs of purchase in each subsequent new market area. (Tr. 24-25, Exh. 4). A total of approximately 311,550 such bears have been distributed to consumers, and Lever has continued to ship the bears to satisfy additional offers. (Tr. 35-36, Exh. 7). An additional 40,000 of this version of the bear have been distributed through children’s programs and other channels. In all, Lever has distributed approximately 450,000 bears. (Tr. 38-39).

The “Snuggle” bear character has achieved a significant degree of public recognition in the areas where the fabric softener has been marketed. In August, 1984, after the product had been offered for one year in the Midwest, Lever ran a ten-second commercial and a one-time print advertisement inviting “happy birthday” calls to “Snuggle,” costing fifty cents each, at a special number. More than 125,000 people called to wish “Snuggle” bear happy birthday. (Tr. 25-28). In addition, Lever has received approximately 1,000 letters praising “Snuggle” fabric softener and “Snuggle” bear, many of which inquire as to whether “Snuggle” bears are available for purchase. (Exh. 17A-C).

Lever has also marketed a “Snuggle” bear calendar, beach towel, and t-shirt in some areas. Although no reference to any product is made on these items, they were produced in conjunction with the fabric softener marketing campaigns. (Tr. 29-30, 71-73). In addition, “Snuggle” bear has made public appearances at Reading Is Fundamental programs and zoos in several cities, and Lever has produced a public service commercial featuring “Snuggle” bear urging children not to consume household products found under the sink. (Tr. 40-43).

In order further to capitalize on the public affection for the “Snuggle” bear charac *1398 ter, Lever has been exploring for several months the possibility of licensing a “Snuggle” bear for retail sale. (Tr. 108-09, 133). In this connection, Lever, which has no experience in the toy licensing field, has had preliminary discussions with several licensing consultants (Tr. 110) and has arranged for the Russ Berrie Company to produce several proposed versions of “Snuggle” bear. Although the company has produced 11 prototypes of a bear, none was considered close enough to the Kermit Love original to be considered the true “Snuggle” bear. (Tr. 109-112). Lever’s licensing program has not progressed beyond this exploratory stage and will not be in place for several months. (Tr. 127, 133-34).

Background on “Snuggles the Seal”

Defendant Mattel purveys plush toys and other upscale gift items through its “Emotions” division. (Tr. 182-83). In February 1984, defendant Flair approached Mattel with the concept of marketing a plush toy seal to capitalize on the publicity surrounding public opposition to the annual slaughter of baby seals.

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Bluebook (online)
609 F. Supp. 1395, 226 U.S.P.Q. (BNA) 752, 1985 U.S. Dist. LEXIS 19697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lever-bros-co-v-mattel-inc-nysd-1985.