Midwest Research Institute v. S & B Promotions, Inc.

677 F. Supp. 1007, 6 U.S.P.Q. 2d (BNA) 1269, 1988 U.S. Dist. LEXIS 567, 1988 WL 3972
CourtDistrict Court, W.D. Missouri
DecidedJanuary 22, 1988
Docket87-0853-CV-W-8
StatusPublished
Cited by8 cases

This text of 677 F. Supp. 1007 (Midwest Research Institute v. S & B Promotions, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midwest Research Institute v. S & B Promotions, Inc., 677 F. Supp. 1007, 6 U.S.P.Q. 2d (BNA) 1269, 1988 U.S. Dist. LEXIS 567, 1988 WL 3972 (W.D. Mo. 1988).

Opinion

MEMORANDUM OPINION AND ORDER

STEVENS, District Judge.

Plaintiff in the above-styled case brought this six-count complaint alleging violations of the Lanham Act, 15 U.S.C. §§ 1114 and 1125(a), common law unfair competition and trademark infringement and violation of the Missouri Anti-Dilution Statute, Mo. Ann. Stat. § 417.061 (Vernon 1986). The court heard evidence on plaintiffs claims in a hearing on November 18, 1987. Defendants presented their evidence to the court on November 24, 1987. The parties agreed that, pursuant to Fed. R. Civ. P. 65(a)(2), the preliminary injunction hearing would be consolidated with the trial on the merits. As a result, the case is currently before the court on plaintiff’s motion for a permanent injunction and, on defendant S & B Promotions, Inc.’s counterclaim for cancellation of trademark. 1

Midwest Research Institute (“MRI”) is an independent, not-for-profit Missouri corporation with its principal place of business in Kansas City, Missouri. Since its founding in 1944 the corporation has operated under and used the names “Midwest Research Institute,” “Midwest Research” and “MRI.” MRI maintains its headquarters in Kansas City, Missouri and the evidence establishes that it has become well and commonly known by those names or marks. Other offices are located in Raleigh, North Carolina; Osceola, Iowa; Jefferson, Arkansas; Washington, D.C. and Riyadh, Saudi Arabia. In addition to these offices, MRI manages and operates the National Solar Energy Research Institute in Golden, Colorado. 2 MRI employees in each of these offices perform scientific research and development on a national basis in fields such as the physical sciences, biological sciences, biobehavioral sciences, mathematics, engineering sciences and economic and management sciences. The research is performed for business, industry and government. John Dinwiddie, senior vice president of MRI, testified at the preliminary injunction hearing that approximately seventy-five percent of MRI’s research in Kansas City is for the federal government clients. He also stated that less than one percent of the Institute’s work was for walk-in clients.

During cross-examination Dinwiddie admitted that the name Midwest Research Institute was somewhat descriptive of the Institute’s work. He added that originally the primary focus of the Institute was to encourage economic and social growth in the midwest through the application of science and technology. MRI’s initial research concentrated on projects affecting Missouri and the six surrounding states. Today, the Institute’s work is more national in scope, but Dinwiddie said that research focusing on the midwest section of the country was still a fundamental and primary purpose of the corporation’s existence.

The Institute obtained the service mark “MRI,” reg. no. 920,883, on September 21, 1971. On January 13, 1987 the United States Patent and Trademark Office registered the service mark “Midwest Research Institute” as reg. no. 1,425,251. When plaintiff requested the second trademark it acknowledged that it claimed no rights to the words “research institute” and that the word “midwest” was the non-descriptive part of the mark. MRI’s Application for Trademark Registration, Defendants’ Exhibit No. 3.

Defendant S & B Promotions, Inc. 3 is a Michigan corporation, with headquarters in *1010 Walled Lake, Michigan. S & B is involved in the production and sale of subliminal self-help tapes, marketed under the trademark “SCWL,” which was registered on July 13, 1982 as reg. no. 1,200,890. SCWL stands for “subconscious to conscious way of learning.”

Owen Stitz, president of S & B Promotions, testified that S & B assumed the name Midwest Research, Inc. soon after the company was founded. Stitz stated that the name Midwest Research, Inc. seemed more appropriate since the company was located in the midwest and performed subliminal research. The name change was also partially motivated by the fact that Stitz and his partner did not like the connotation carried by the word “promotions.” Thus, from 1979 to May or June of 1987, S & B operated under the name “Midwest Research.” In May or June of 1987 the Company incorporated under the name Midwest Research of Michigan, Inc., although the company apparently still calls itself “Midwest Research.”

Plaintiff introduced several examples of S & B’s use of the name “Midwest Research.” For example, plaintiff introduced an envelope sent by United Parcel Service on October 21, 1987, after the corporate name was officially changed to Midwest Research of Michigan, Inc. The mailing label on the envelope says “Midwest Research, Inc.” Plaintiff’s Exhibit No. 22. Similarly, Mr. Stitz testified in his deposition that a “personal improvement technology report,” printed by his company, often referred to the corporation as “Midwest Research” or “Midwest Research, Inc.” Plaintiff’s Admissions of Defendant S & B Promotions at 2. Finally, Stitz stated that the sign identifying his building in Michigan reads “Midwest Research.” Id. at 9.

Perhaps most important to the court’s resolution of the present case, however, is S & B’s use of the words “Midwest Research” on the tapes it sells across the country through advertisements and a distributorship network. At trial, plaintiff introduced examples of four of the audio tapes manufactured by S & B. Each is identified on the cassette by the words “Midwest Research” or “Midwest Research, Inc.” The size of this identification varies by tape. 4 In addition, the audio portion of each tape begins with a voice announcing the title of the tape, the tape number and the fact that the tape is “by Midwest Research.”

Defendant The Joe Land Company (“Joe Land”) was one of S & B Promotions’ distributors. Joe Land had an agreement with S & B giving Joe Land the exclusive marketing rights to the S & B tapes. Both Joe Land and S & B agree that the exclusivity portion of this agreement ended in July 1987. Indeed, Joe Land is no longer affiliated with S & B in any way. The company, however, does maintain some of S & B’s tapes for replacement purposes. These tapes are identified with the words “Midwest Research.” Other than these inventory tapes, Joe Land sells only its own tapes which do not mention any affiliation with Midwest Research. Defendant Dr. Robin Tyre was Joe Land’s distributor in the Western Missouri area. 5 Dr. Tyre testified that he has not received any tapes with “Midwest Research” on them since July 1987. Plaintiff alleges that defendants Joe Land and Dr. Tyre infringed on its trademark by distributing copies of the S & B tapes which mentioned “Midwest Research” or “Midwest Research, Inc.”

I. Plaintiffs Statutory and Common Law Trademark Infringement Claims

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677 F. Supp. 1007, 6 U.S.P.Q. 2d (BNA) 1269, 1988 U.S. Dist. LEXIS 567, 1988 WL 3972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwest-research-institute-v-s-b-promotions-inc-mowd-1988.