McNeil-PPC, Inc. v. Guardian Drug Co., Inc.

984 F. Supp. 1066, 45 U.S.P.Q. 2d (BNA) 1437, 1997 U.S. Dist. LEXIS 18537, 1997 WL 726027
CourtDistrict Court, E.D. Michigan
DecidedNovember 10, 1997
Docket97-CV-74995-DT
StatusPublished
Cited by6 cases

This text of 984 F. Supp. 1066 (McNeil-PPC, Inc. v. Guardian Drug Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNeil-PPC, Inc. v. Guardian Drug Co., Inc., 984 F. Supp. 1066, 45 U.S.P.Q. 2d (BNA) 1437, 1997 U.S. Dist. LEXIS 18537, 1997 WL 726027 (E.D. Mich. 1997).

Opinion

OPINION AND ORDER GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION AND ORDER OF PRELIMINARY INJUNCTION

ROSEN, District Judge.

I. INTRODUCTION

This trade dress infringement/unfair competition action is presently before the Court on the Motion of Plaintiff McNeil-PPC, Inc. (“McNeil”) for a preliminary injunction to compel Defendants to recall all packaging, labeling and/or sales materials that infringe or dilute Plaintiffs trade dress rights with respect to one of its products, LACTAID ULTRA. 1 Defendant Arbor Drugs has responded to Plaintiffs Motion.

Having reviewed and considered the parties’ briefs and supporting exhibits, and having further considered the oral arguments of counsel presented at the hearing held on October 6, 1997, the Court is now prepared to rule on Plaintiffs Motion. This Opinion and Order sets forth the Court’s ruling.

II: FACTUAL BACKGROUND

Plaintiff McNeil-PPC, Inc., a wholly-owned subsidiary of Johnson & Johnson, is a manufacturer of over-the-counter (“OTC”) medications and personal care products. One such product is LACTAID ULTRA, a digestive aid for lactose-intolerant persons.

Defendant Guardian Drug Company (“Guardian”) is a manufacturer of generic OTC pharmaceutical products. It produces generic versions of popular OTC brands, including products marketed by McNeil, and often manufactures and distributes these generics in the form of “private label” or “store brand” products.

*1068 Defendant Arbor Drugs has its own “store brand” line of products, which it sells in addition to brand name products. One of Arbor’s store brand products is ARBOR ULTRA LACTASE, which is manufactured by Defendant Guardian.

Plaintiff contends that Arbor has deliberately copied the overall appearance of McNeil's LACTAID ULTRA packaging for its store brand ARBOR ULTRA LACTASE product.

A comparison of the packaging of Arbor’s and McNeil’s products shows that the packages are virtually identical in color, design and labeling. Both McNeil’s LACTAID ULTRA and Defendant’s ARBOR ULTRA LACTASE are packaged in boxes which have

• a dark blue background with gradually lighter-blue horizontal pinstriping
• the product brand identified in white block-print
• the word “Ultra” in cursive script
• a photo of dairy products in the center of the front panel
• a yellow informational “banner” with red script to the left of the dairy product photo
• a picture of a caplet in a “spotlight” cutout in the lower right corner
• the number count of the package caplet contents in the lower left corner

The back panel of both Plaintiffs and Defendant’s packages similarly are identical. The content of the text on the back of the packages is nearly verbatim the same and, on both packages, the text is presented in the same red and blue color combination.

Defendant does not dispute the above similarities in product packaging but does point out that, on its product, the name “ARBOR” appears prominently in white letters on the package above the product name “ULTRA LACTASE”, and in small print under the product name appears the invitation “Compare to the Active Ingredient in Lactaid® Ultra”. Defendant further notes that on the back of the package in small print appears a disclaimer that “This product is not manufactured by McNeil Consumer Products Company, distributor of Lactaid® Ultra.”

Defendant claims the prominent display of its name, Arbor, and the “compare to” statement and disclaimer sufficiently distinguish its trade dress from that of Plaintiff. Defendant also argues that it further distinguishes the two products by placing them side-by-side with a price comparison placard (referred to as a “shelf talker”) on the shelf. This price comparison marketing strategy is further carried out by Defendant in its “compare and save” newspaper, television and radio advertising campaign. Defendant contends that all of these distinguishing factors, taken together, dispel any likelihood of confusion as to the source or origin of its Arbor brand product. Therefore, Defendant argues that Plaintiff cannot establish a legally cognizable trade dress infringement claim and has no likelihood of success on the merits so as to entitle it to the preliminary injunc-tive relief it seeks.

III. DISCUSSION

A. STANDARDS FOR PRELIMINARY INJUNCTIVE RELIEF

In deciding whether a plaintiff is entitled to a preliminary injunction, the court is to consider four factors:

(1) whether the plaintiff has a strong likelihood of success on the merits;

(2) whether it would suffer irreparable harm if preliminary relief is not issued;

(3) whether the issuance of a preliminary injunction will not cause substantial harm to third parties; and

(4) whether the public interest would be served by the issuance of a preliminary injunction.

Sandison v. Michigan High School Athletic Association, Inc., 64 F.3d 1026, 1030 (6th Cir.1995); USACO Coal Co. v. Carbomin Energy, Inc., 689 F.2d 94, 98 (6th Cir.1982). The four considerations applicable to preliminary injunctions are factors to be balanced and are not prerequisites that must be satisfied. In re Eagle-Picher Indus., Inc., 963 F.2d 855, 859 (6th Cir.1992). “These factors simply guide the discretion of the court; they are not meant to be rigid and unbending requirements.” Id.

*1069 B. LIKELIHOOD.OF SUCCESS ON THE MERITS

1. THE ELEMENTS OF TRADE DRESS INFRINGEMENT

Section 43(a)(1)(A) of the Lanham Act, 15 U.S.C. § 1125(a)(1)(A), prohibits the use of any word, term, name, symbol, or device which:

is likely to cause confusion, or to cause mistake or to deceive as to the affiliation, connection, or association of such person with another person, or as to origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person----

Two fairly recent Supreme Court cases dealt with trade dress infringement. In Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 112 S.Ct.

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984 F. Supp. 1066, 45 U.S.P.Q. 2d (BNA) 1437, 1997 U.S. Dist. LEXIS 18537, 1997 WL 726027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneil-ppc-inc-v-guardian-drug-co-inc-mied-1997.