Liquid Glass Enterprises, Inc. v. Dr. Ing. H.C.F. Porsche AG

8 F. Supp. 2d 398, 1998 U.S. Dist. LEXIS 7912, 1998 WL 312491
CourtDistrict Court, D. New Jersey
DecidedMarch 30, 1998
DocketCivil Action 97-4978(MTB)
StatusPublished
Cited by14 cases

This text of 8 F. Supp. 2d 398 (Liquid Glass Enterprises, Inc. v. Dr. Ing. H.C.F. Porsche AG) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liquid Glass Enterprises, Inc. v. Dr. Ing. H.C.F. Porsche AG, 8 F. Supp. 2d 398, 1998 U.S. Dist. LEXIS 7912, 1998 WL 312491 (D.N.J. 1998).

Opinion

OPINION

BARRY, District Judge.

This matter comes before the court on the application of defendants, Dr. Ing. h.c.F. Porsche AG (“Porsche AG”) and Porsche Cars North America, Inc. (“Porsche Cars N.A.”) (collectively as “Porsche”) for a preliminary injunction to enjoin plaintiff Liquid Glass Enterprises, Inc. (“Liquid Glass”) from infringing and diluting Porsche’s trademarks and trade dress. For the reasons which follow, a preliminary injunction will issue.

I.

Liquid Glass is a New Jersey corporation which sells car care products, primarily ear cleaners and polishes. Compl. at ¶¶ 4,7. Porsche AG is a German company which has manufactured motor vehicles, parts and accessories since 1952. Verif. Countercl. at ¶ 3. Porsche Cars N.A. is a Delaware corporation with exclusive authority to import and sell Porsche vehicles and related products in the United States. Id. at ¶ 2.

Porsche AG owns registered trademarks for the underlined word PORSCHE (stylized) for use with automobiles and parts, for the stylized word PORSCHE on various products, and for the Porsche crest. Id. at Exh. A. Porsche contends that it also holds ownership rights in the distinctive shape or trade dress of certain Porsche automobiles, namely the Porsche 911, 356 and 959. Id. at ¶ 7-8; Exh. F.

At issue in this case is Liquid Glass’s use of the Porsche trademarks and trade dress in its advertisements for car polish. Porsche has submitted two examples of allegedly infringing and diluting Liquid Glass advertisements, namely, an ad appearing in the May 1997 issue of a national car magazine, Motor Trend, which portrays a provocatively-dressed woman- applying Liquid Glass car polish to a Porsche 911 with the trademark “PORSCHE” prominently displayed on the ear (Id. at Exh. B), and a ten-minute video *400 for use at trade shows. Id. at Exh. D. The video opens with a Porsche 911 (with the Porsche crest plainly visible) accelerating down a highway. Immediately following, the video cuts to a woman who is undressing and taking a shower. Thereafter, the video cuts alternately between a car (not a Porsche) being washed and polished and a woman showering, putting on her makeup and getting dressed. The video then illustrates Liquid'Glass’s uses on numerous expensive cars and ends with a shot of the Porsche 911 speeding down the road. 1

Porsche first became aware in 1991 that Liquid Glass was running advertisements using a Porsche 911. Verif. Countercl. at ¶ 19. On December 2, 1991, a cease and desist letter was sent to Liquid Glass, objecting to its unauthorized use of the Porsche trademarks and trade dress. Porsche Reply Mem. at Exh. A. No further unauthorized uses were detected until the July 1993 issue of Road & Track included a Liquid Glass advertisement picturing a provocatively-clad woman polishing a Porsche 911. Again, Porsche responded with a cease and desist letter, further admonishing that “the tenor of this advertisement is not consistent with Porsche policy; we find the suggestion that Porsche cars condones, this advertising approach objectionable.” June 11,1993 Letter, Id. at Exh. B. In response, Liquid Glass asserted that the Porsche depicted in the advertisement belonged to the President of Liquid Glass and, therefore, its use was “fair usage and not Trademark or TradeDress infringement.” June 24, 1993 Letter, Id. at Exh. C. Nonetheless, Liquid Glass offered to update the advertisement with a disclaimer that Porsche and Liquid Glass were affiliated in any way. Id. Porsche disagreed that a disclaimer was sufficient, or that use of an individual’s privately owned automobile in an advertisement constituted “fair use.” July 2, 1993 Letter, Id. at Exh. D. Apparently understanding the matter to be resolved, however, no further correspondence between the parties occurred until 1996.

In October 1996, Porsche discovered another Liquid Glass advertisement in Motor Trend depicting the Porsche 911 and using the Porsche trademarks and trade dress. Verif. Countercl. at ¶ 20. Porsche sent cease and desist letters to Liquid Glass on December 19, 1996 and February 24, 1997 stating that if such unauthorized usage continued, “Porsche Cars N.A. will be compelled to pursue its legal remedies.” Id., Exhs. F, G. Liquid Glass did not respond to either letter and Porsche informed Liquid Glass by letter of June 24, 1997 that its advertisements were willful violations of the trademark laws. Porsche again requested that Liquid Glass cease and desist, threatening a lawsuit if it did not do so. Id. at Exh. H. On July 16, 1997, Liquid Glass responded that it would immediately stop featuring any Porsche in its national advertising campaign, but that the 5,000 sales sheets which depict the Porsche would continue to be used until they were exhausted by year’s end. Id. at Exh. I. Porsche replied that the continued use of the 5,000 sales sheets was unacceptable, and supplied Liquid Glass with a copy of a Verified Complaint which it was prepared to file if Liquid Glass did not discontinue use of the sales sheets immediately. August 8, 1997 Letter, Id. at Exh. J.

Liquid Glass responded, without conceding liability, that it would discontinue the advertisements but that it could not guarantee that the sales sheets which had been circulated would not appear in the market in the future. Id. at Exh. K. In addition, Liquid Glass voiced concerns about the costs associated with reshooting the video used in trade shows, suggesting that either a disclaimer be added or the video be reshot at Porsche’s expense. Id. Porsche immediately requested a copy of the video. August 12, 1997 Letter, Porsche Reply Mem. at Exh. E. After view *401 ing the video, Porsche objected to its use of the Porsche automobile and Porsche crest, refused to pay for a reshooting, and disagreed that a disclaimer would be sufficient. August 20, 1997 Letter, Verif. Countercl. at Exh. L. Porsche demanded that use of the video be discontinued, that Liquid Glass cease distributing the sales sheets, and that it “take all reasonable steps to recall undistributed advertisements from its retailers who may have quantities on hand....” Id.

Porsche also enclosed a proposed settlement agreement for Liquid Glass’s signature. Id. Liquid Glass refused to sign the agreement unless it was modified to include a release of liability. September 16, 1997 Letter, Id. at Exh. M. Porsche revised the settlement agreement, as agreed upon by the parties in a telephone conference, to include a disclaimer of liability as to Liquid Glass’s past advertisements and resubmitted it to Liquid Glass on September 18, 1997. Id., Exh. N at ¶ 3. Having received no response, Porsche followed up on October 7, 1997, stating that if the settlement agreement was not executed by October 13,1997, Porsche would take “appropriate action.” Id. at Exh. O.

On October 9, 1997, Liquid Glass rejected the settlement agreement as “overreaching.” Id. at Exh. P.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

TILE, INC. v. BLAZING PRICES
D. New Jersey, 2021
Flir Systems, Inc. v. Sierra Media, Inc.
903 F. Supp. 2d 1120 (D. Oregon, 2012)
Bentley Motors Ltd. Corp. v. McEntegart
899 F. Supp. 2d 1291 (M.D. Florida, 2012)
Audi AG and Volkswagon of America, Inc. v. D'Amato
341 F. Supp. 2d 734 (E.D. Michigan, 2004)
Bijur Lubricating Corp. v. Devco Corp.
332 F. Supp. 2d 722 (D. New Jersey, 2004)
General Motors Corp. v. Let's Make a Deal
223 F. Supp. 2d 1183 (D. Nevada, 2002)
Pharmacia Corp. v. Alcon Laboratories, Inc.
201 F. Supp. 2d 335 (D. New Jersey, 2002)
Ford Motor Co. v. Lloyd Design Corp.
184 F. Supp. 2d 665 (E.D. Michigan, 2002)
Basic Fun, Inc. v. X-CONCEPTS, LLC
157 F. Supp. 2d 449 (E.D. Pennsylvania, 2001)
Nabisco, Inc. v. PF Brands, Inc.
50 F. Supp. 2d 188 (S.D. New York, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
8 F. Supp. 2d 398, 1998 U.S. Dist. LEXIS 7912, 1998 WL 312491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liquid-glass-enterprises-inc-v-dr-ing-hcf-porsche-ag-njd-1998.