McNeilab, Inc. v. American Home Products Corp.

501 F. Supp. 517
CourtDistrict Court, S.D. New York
DecidedNovember 21, 1980
Docket79 Civ. 3973
StatusPublished
Cited by58 cases

This text of 501 F. Supp. 517 (McNeilab, Inc. v. American Home Products Corp.) 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
McNeilab, Inc. v. American Home Products Corp., 501 F. Supp. 517 (S.D.N.Y. 1980).

Opinion

LASKER, District Judge.

In June, 1979, American Home Products Corporation (“AHP”), the manufacturer of the non-prescription internal analgesic Anacin, began a nationwide advertising campaign for a new analgesic preparation, Maximum Strength Anacin (“MSA”). In this action, McNeilab, Inc. (“McNeil”), the manufacturer of the competing non-prescription internal analgesic Extra Strength Tylenol, seeks an injunction barring AHP from making three advertising claims in its efforts to promote MSA. McNeil contends that these advertising claims violate section 43(a) of the Lanham Trade-Mark Act of 1946, 1 15 U.S.C. § 1125(a), which provides that

“[a]ny person who shall . .. use in connection with any goods or services .. . any false description or representation, including words or other symbols tending falsely to describe or. represent the same .. . shall be liable to a civil action ... by any person who believes that he is or is likely to be damaged by the use of such false description or representation,”

*521 and that AHP’s use of false or misleading advertising claims constitutes unfair competition under the common law.

In particular, McNeil contends that various advertisements for MSA “tend falsely to describe or represent” MSA because 1) consumers perceive them as making a claim that MSA is a “stronger” analgesic than Extra Strength Tylenol, which it is not, 2) the assertion that MSA “contains the maximum strength allowed without prescription” is false, and 3) the use of the phrase “the pain reliever doctors recommend most” is misleading.

The hearing on McNeil’s motion for a preliminary injunction and the trial on the merits were consolidated pursuant to Rule 65(a)(2), Fed.R.Civ.P. At the time, only the first of McNeil’s three claims was before the court, but shortly after the conclusion of the trial McNeil filed a written motion to amend the complaint to conform to the evidence, which, it contends, establishes its right to relief on its third claim, see Fed.R. Civ.P. 15(b), and to add its second claim. Concurrently, McNeil sought summary judgment on its second claim which was not addressed at trial. The court has jurisdiction over McNeil’s statutory claims by virtue of 15 U.S.C. § 1121, and has pendant jurisdiction over McNeil’s parallel common law claims. This opinion constitutes the court’s findings of fact and conclusions of law, as well as its disposition of McNeil’s motion to amend the complaint and for summary judgment.

I.

The two most popular non-prescription pain relieving ingredients are aspirin and acetaminophen. AHP does not here contest McNeil’s assertion that the two ingredients are equally potent pain relievers. See American Home Products Corp. v. Johnson & Johnson, 436 F.Supp. 785 (S.D.N.Y.1977), aff’d, 577 F.2d 160 (2d Cir. 1978). The standard dose for both aspirin and acetaminophen is and has long been two tablets containing 325 milligrams (“mg”) of active ingredient each, but products containing more than 325 mg per tablet are available without prescription. Products containing 325 mg of pain relieving ingredient are considered “regular strength” products; those containing more are termed “extra strength” or “added strength” products.

Of the various brands of over-the-counter (“OTC”) internal analgesics available, the best selling-with a 16% share of dollar sales in the period ending June 30, 1979-is McNeil’s Extra Strength Tylenol, which contains 500 mg acetaminophen per tablet or capsule. AHP’s Anacin, which contains 400 mg of aspirin per tablet, is the second best seller, with 11% of dollar sales in the same period. The other major sellers, regular Tylenol (325 mg acetaminophen), Bayer (325 mg aspirin), Bufferin (325 mg aspirin) and Excedrin (421 mg combined aspirin, acetaminophen, and salicymide), accounted for between 7% and 9% of dollar sales each. Finally, AHP markets a 500 milligram acetaminophen product, Anacin-3, which captured less than one percent of dollar sales in that period.

In April, 1979, AHP introduced its new product, Maximum Strength Anacin, which contains 500 mg of aspirin. Shortly thereafter, AHP began a nationwide advertising campaign to promote MSA, and between late June and late July AHP ran two advertisements on national television that triggered this lawsuit.

The first of these, known as “Laser,” had the following text:

“This is the age of modern medicine. The age of the laser beam, and the age of a new Maximum Strength Pain reliever.
Maximum Strength Anacin. Maximum Strength allowed without prescription.
Maximum Strength Anacin contains more of the pain reliever doctors recommend most. More than regular strength. More than extra strength. Maximum Strength. The Maximum Strength allowed.
Get new Maximum Strength Anacin. Maximum Strength allowed without prescription.” (Plaintiff’s Exhibit 1.)

The second, known as “Report,” stated:

“Announcing new Maximum Strength Anacin.
*522 This report of medical experts establishes the maximum single dosage for a pain reliever. Not everyone needs this maximum strength. But for those who do, New Maximum Strength Anacin is here, in the pain reliever doctors most recommend.
Maximum Strength Anacin goes beyond regular strength. Beyond extra strength to Maximum strength.
Get Maximum Strength Anacin. Maximum strength allowed without prescription.” (Plaintiff’s Exhibit 2.)

AHP subsequently revised the “Report” commercial, in part in response to this litigation, by substituting the phrase “added strength” for the phrase “extra strength.” (Defendant’s Exhibit N.)

A third advertisement, known as “Circles,” was introduced after McNeil instituted this action. It’s text was:

“Different people-different pain. Some only need regular strength tablets. Some may need added strength. But some may need Maximum Strength.
Introducing new Maximum Strength Anacin.
Contains more pain reliever. More than regular strength tablets. Even more than added strength. Maximum Strength-two tablets-a full 1000 milligrams.
Next time, get Maximum Strength Anacin for you who need maximum strength.” (Defendant’s Exhibit 0.)

The visual component of each of these advertisements included a graphic representation of the comparative amount of pain reliever in “regular strength products,” “extra strength products,” and Maximum Strength Anacin.

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501 F. Supp. 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneilab-inc-v-american-home-products-corp-nysd-1980.