Ligotti v. Garofalo

562 F. Supp. 2d 204, 2008 DNH 123, 2008 U.S. Dist. LEXIS 49384, 2008 WL 2528240
District Court, D. New Hampshire·Decided June 26, 2008·No. 1:08-cr-00119·Published·Cited by 13 cases

Opinion

ORDER

JOSEPH N. LAPLANTE, District Judge.

Each of the parties seeks a preliminary-injunction preventing the other from using the yet-unregistered service mark, “The Guy from Boston.” Alleging that his rights in the mark are superior, the plaintiff, Joseph A. Ligotti, Jr., commenced this action, which claims, among other things, that the continued use of the mark by the defendant, David Garofalo, amounts to trademark infringement and unfair competition in violation of § 43(a) the Lanham Act, 15 U.S.C. § 1125(a), and New Hampshire law. 1 Garofalo, however, claims that he has the superior rights in “The Guy from Boston,” so it is Ligotti who is engaged in trademark infringement and unfair competition by his continued use of the mark.

The court has jurisdiction over this matter under 28 U.S.C. §§ 1331 (federal question) and 1367 (supplemental jurisdiction). The court first heard argument on the parties’ motions on April 3, which concluded with an order for additional briefing on the issue of ownership of the mark in accordance with the standards set forth in Bell v. Streetwise Records, Ltd., 640 F.Supp. 575 (D.Mass.) (Zobel, J.), aff'd without op., 787 F.2d 578 (1st Cir.1986). 2 The district court in Bell issued this opinion after the First Circuit had vacated and remanded the initial order in the case. 761 F.2d 67 (1st Cir.1985). 3

Together with this briefing, the parties also submitted additional evidentiary materials, principally the competing affidavits of Ligotti and Garofalo, that revealed sharp disputes as to many potentially significant facts. To resolve these disputes, the court held an evidentiary hearing on the motions over May 19-20 and May 29-30, at which the court heard the live testimony of Ligotti, Garofalo, and several other witnesses, and received a number of exhibits. 4 Having considered this evidence, and the parties’ accompanying ar *207 guments, the court grants Ligotti’s motion in part and denies it in part, and denies Garofalo’s cross-motion in its entirety.

I. Applicable Legal Standard

In deciding whether to grant a motion for a preliminary injunction, a court must consider four factors: (1) the mov-ant’s likelihood of success on the merits of his claims; (2) the risk of irreparable harm to the movant if the injunction is not issued; (3) how that harm compares to any harm the defendant faces if the injunction does issue, and (4) how granting or denying injunctive relief would affect the public interest. See, e.g., Naser Jewelers, Inc. v. City of Concord, 513 F.3d 27, 32 (1st Cir.2008). While all of these factors must be considered, “[t]he sine qua non of this four-part inquiry is likelihood of success on the merits.” New Comm Wireless Servs. v. SprintCom, Inc., 287 F.3d 1, 8 (1st Cir.2002). This is particularly true when the movant seeks a preliminary injunction on the basis of a trademark claim, since irreparable harm generally follows from infringement, I.P. Lund Trading ApS v. Kohler Co., 163 F.3d 27, 33 (1st Cir.1998), and “as a matter of public policy, trademarks should be protected against infringing uses,” Borinquen Biscuit Corp. v. M.V. Trading Corp., 443 F.3d 112, 115 (1st Cir.2006). So, as more fully discussed infra, the resolution of the parties’ cross-motions depends on which of them is more likely to succeed on his claim to ownership of “The Guy From Boston” mark.

II. Background

For purposes of the cross-motions, the court makes the following findings of fact, see Fed.R.Civ.P. 52(a), based on the testimony and exhibits received at the evidentiary hearing, as well as the materials submitted beforehand, see Asseo v. Pan Am. Grain Co., 805 F.2d 23, 26 (1st Cir.1986) (noting with approval that “[ajffidavits and other hearsay materials are often received in preliminary injunction proceedings”); see also MJM Prods., 2003 DNH 159, 2, 2003 WL 22205129, *1.

Garofalo owns The Two Guys Cigar Shop, which has retail locations in the southern New Hampshire communities of Salem, Nashua, and Seabrook and, as what Garofalo describes as “the largest cigar retailer in the world,” also conducts a significant business in mail and Internet orders. In early 2006, Garofalo had the idea of promoting his business by using a character called “The Guy from Boston,” based in large part on an existing character called “The Kid from Brooklyn” who has appeared in a series of videos on the Internet. Garofalo envisioned “The Guy from Boston,” like “The Kid from Brooklyn,” as a champion of individual rights and freedoms who would present his views by “yelling and screaming” in front of an American flag in performances to be viewed on the Internet, known as “rants.” Unlike “The Kid from Brooklyn,” however, “The Guy from Boston” would rant in a Boston accent while holding a cigar, thus promoting Garofalo’s Boston-area cigar business. Garofalo’s first conception of the character did not include any thoughts about his physical appearance, such as his ethnicity, build, or dress.

Garofalo engaged a website designer with whom he had previously worked, William Vining, to create an Internet site for “The Guy from Boston,” and to register the Internet address www.theguyfrom boston.com. Garofalo also set about selecting somebody to play the role of “The Guy from Boston.” After his first choice turned down the opportunity, Garofalo offered it to Ligotti, describing “The Guy from Boston” as a version of “The Kid from Brooklyn” who would perform “rants” on the Internet as a means of *208 advertising Garofalo’s cigar business. Ga-rofalo proposed to compensate Ligotti in the form of half of the net revenue; it is disputed, and ultimately irrelevant for present purposes, whether this was meant as half of all revenue generated by the character in any medium, or only the website. Because Garofalo intended to pay the start-up expenses himself, he explained, the arrangement would cost Li-gotti nothing.

Though Ligotti had doubts about the success of the endeavor, jokingly calling Garofalo “out of his mind,” he accepted the offer.

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Ligotti v. Garofalo, 562 F. Supp. 2d 204, 2008 DNH 123, 2008 U.S. Dist. LEXIS 49384, 2008 WL 2528240 (D.N.H. 2008).

562 F. Supp. 2d 204 (Ligotti v. Garofalo) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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