McNeil Nutritionals, LLC v. Heartland Sweeteners LLC

512 F. Supp. 2d 217, 2007 U.S. Dist. LEXIS 36948, 2007 WL 1520101
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 21, 2007
DocketCivil Action 06-5336
StatusPublished
Cited by3 cases

This text of 512 F. Supp. 2d 217 (McNeil Nutritionals, LLC v. Heartland Sweeteners LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNeil Nutritionals, LLC v. Heartland Sweeteners LLC, 512 F. Supp. 2d 217, 2007 U.S. Dist. LEXIS 36948, 2007 WL 1520101 (E.D. Pa. 2007).

Opinion

MEMORANDUM

PADOVA, District Judge.

Plaintiff McNeil Nutritionals (“McNeil”) has brought this action against Defendants Heartland Sweeteners LLC and Heartland Packaging Corp. (collectively “Heartland”) alleging violations of Section 43(a)(1)(A) of the Lanham Act, 15 U.S.C. § 1125; dilution of trade dress and trademark under *220 Pennsylvania state law, 54 Pa. Cons.Stat. Ann. § 1124; unfair competition under Pennsylvania common law; and misappropriation of an advertising idea under Pennsylvania common law. Currently before the Court is McNeil’s Motion for a Preliminary Injunction pursuant to Federal Rule of Civil Procedure 65. For the reasons detailed below, McNeil’s motion is denied.

I.BACKGROUND

McNeil markets Splenda®, the leading artificial sweetener in the United States in terms of dollar sales. Heartland packages, sells, and distributes to a number of retail chains store-brand artificial sweetener products that compete with Splenda. McNeil filed a Complaint against Heartland on December 5, 2006, alleging that Heartland’s packaging of the store-brand products is confusingly similar to the Splenda trade dress. 1 Shortly after filing its Complaint, McNeil filed a Motion for Preliminary Injunction seeking an order enjoining Heartland from selling or distributing store-brand products in packaging that is confusingly similar to the Splen-da trade dress, using or distributing any advertising or sales material depicting such packaging, and directing Heartland to recall from distribution and destroy all such packaging and sales material depicting such packaging. An evidentiary hearing was held on January 26, 2007 and February 7, 2007. At the conclusion of the hearing, the Court directed the parties to file proposed findings of fact and conclusions of law. Oral argument was heard on the motion on March 13, 2007.

II. LEGAL STANDARD

A party seeking a preliminary injunction must demonstrate that (1) it is likely to succeed on the merits of its claim, (2) it will suffer irreparable harm if the injunction is denied, (3) granting preliminary relief will not result in even greater harm to the nonmoving party, and (4) the public interest favors such relief. Rogers v. Corbett, 468 F.3d 188, 192 (3d Cir.2006) (citing Child Evangelism Fellowship of New Jersey, Inc. v. Stafford Twp. Sch. Dist., 386 F.3d 514, 524 (3d Cir.2004)). Preliminary injunctive relief is an “extraordinary remedy” and “should be granted only in limited circumstances.” American Tel. & Tel. Co. v. Winback & Conserve Program, Inc., 42 F.3d 1421, 1427 (3d Cir.1994) (quotation omitted). Only if the movant produces evidence sufficient to demonstrate that all four factors favor preliminary relief should the injunction issue. Opticians Ass’n of Am. v. Indep. Opticians of Am., 920 F.2d 187, 192 (3d Cir. 1990). 2

III. FINDINGS OF FACT

We make the following findings of fact:

*221 Sugar Substitutes

1. American consumers spend between $600 to $700 million yearly on sugar substitutes, also known as artificial sweeteners. No-calorie sweeteners are a subset of artificial sweeteners that do not have any calories. (San-dler, 1/26/07 Tr. at 38-39, Gelov Deck ¶ 17.)
2. Sugar substitutes are purchased by consumers for a variety of reasons including: blood-sugar disorders, including diabetes; obesity; weight loss; fitness; and tooth decay. (Canaan Decl. ¶ 24, Gelov Deck ¶ 18.)
3. The market for no-calorie sweeteners is dominated by products that contain one of three sweetening ingredients: saccharin, aspartame, and sucralose. (Sandler, 1/26/07 Tr. at 38-39.)
4. Saccharin was first marketed in the United States in 1957 and was the first artificial sweetener to be introduced in the United States. The' leading artificial sweetener containing saccharin is Sweet’N Low®. (Id. at 39.)
5. Aspartame was approved by the U.S. Food and Drug Administration for sale in the United States in 1982. The leading artificial sweetener containing aspartame is Equal®. (Id. at 38-39.)
6. Sucralose was approved by the U.S. Food and Drug Administration in 1998 for use as a food additive, and in 1999 for use as a general purpose sweetener. Sucralose is an artificial sweetener that is manufactured through a process in which the molecular structure of sugar is modified by replacing three of eight hydroxyl (he. hydrogen and oxygen) groupings on the sucrose molecule with three chlorine atoms. Therefore, sucralose is essentially a chlorinated sucrose molecule. Sucra-lose has no calories because it is passed through the body without being metabolized. Because sucralose is more heat-resistant than saccharin and aspartame, it is often marketed not only in individual packets, but also in loose or granular form to be used in cooking and baking. (Sandler Deck ¶¶ 5-6, Sandler, 1/26/07 Tr. at 39-40.)
7. In September 2000, McNeil introduced Splenda, the first artificial sweetener in the United States made from sucra-lose. Sales of Splenda have grown more than tenfold in just six years, from approximately $32 million in 2001 to approximately $410 million in 2006. Within a year of its introduction, Splenda captured 14% of the total U.S. market for low-calorie sweeteners (based on dollar volume). Splenda’s market share has increased over the last five years, and in 2006, Splenda captured approximately 60% of the no-calorie sweetener market, compared to approximately 15% for Equal and 14% for Sweet’N Low. (Id. at 39-40, 42:12-45:10, Sandler Deck ¶ 23-27.)

Color Coding in the Sugar Industrg

8. As the number -of sugar and sugar substitutes has increased, color-coding in packaging has developed as a means of differentiating products and quickly identifying the active ingredient in a given product. The leading artificial sweeteners are each sold in distinctive packaging that helps consumers identify and distinguish them from other products in the market. (Sandler, 1/26/07 Tr. at 85:23-25; Gelov, 2/7/07 Tr. at 51:7-9.)
9. Sweet’N Low, the leading saccharin brand, is marketed in predominately red and pink packaging. Individual packets of Sweet’N Low are pink. The recognized industry standard for saccharine-based products is for the *222 product to be sold in red and/or pink packaging. This practice informs consumers that the particular product is made primarily with saccharin and, in the case of store-brand products, that the item competes with Sweet’N Low. (Gelov Decl. ¶¶23, 25.)
10.

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512 F. Supp. 2d 217, 2007 U.S. Dist. LEXIS 36948, 2007 WL 1520101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneil-nutritionals-llc-v-heartland-sweeteners-llc-paed-2007.