NYU Langone Health System v. Northwell Health, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 1, 2024
Docket1:23-cv-05032
StatusUnknown

This text of NYU Langone Health System v. Northwell Health, Inc. (NYU Langone Health System v. Northwell Health, Inc.) 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
NYU Langone Health System v. Northwell Health, Inc., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT D DO AC TE # : F ILED: 3/1/20 24 SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------- X NYU LANGONE HEALTH SYSTEM and : NYU LANGONE HOSPITALS, : : : Plaintiffs, : 23-CV-5032 (VEC) -against- : : OPINION AND ORDER : NORTHWELL HEALTH, INC., : : : Defendant. : -------------------------------------------------------------- X VALERIE CAPRONI, United States District Judge: Plaintiffs NYU Langone Health System and NYU Langone Hospitals (together, “NYU Langone”) sued Northwell Health, Inc. (“Northwell”) for trade dress infringement, unfair competition and false designation of origin, and false advertising under the Lanham Act, as well as related claims under the New York General Business Law (“NYGBL”) and New York common law. In support of these claims, NYU Langone alleges that Northwell copied its advertising to trade off the good will and reputation of NYU Langone. Northwell moved to dismiss the Complaint in full for failure to state a claim. For the reasons discussed below, Defendant’s motion is GRANTED in part with prejudice and in part without. BACKGROUND1 NYU Langone and Northwell are not-for-profit health systems that operate in New York. Compl. ¶¶ 4, 6. They are market competitors providing healthcare services in the New York City metropolitan region, meaning that they advertise to the same market. Id. ¶¶ 10–11. 1 The Court draws the background facts from the Complaint, Dkt. 1, and assumes the truth of all well- pleaded allegations. Although NYU Langone is headquartered in Manhattan and Northwell is headquartered on Long Island, both hospital systems now have locations in New York City and on Long Island. Id. □□ 4, 6, 40. NYU Langone’s presence on Long Island, however, is recent. Id. | 40. Between 2019 and 2023, it substantially increased the number of active physicians it has in Nassau and Suffolk Counties; NYU Langone now operates 175 locations on Long Island with 906 physicians. Id 41. The Allegedly Copied Advertising New York University, including NYU Langone and other subsidiaries, has used the color purple in its signage and branding for over 100 years. Id. §] 14. Given this long history with the color purple, it is no surprise that NYU Langone’s 2017 style guide (the “Style Guide”) includes the “distinct purple” as a preferred color. Id. 23. The Style Guide suggests the distinct shade of purple be “prominently feature[d]” with white font and accent colors like teal and orange. Id. 4] 24. In line with this recommendation, NYU Langone’s digital, print, billboard, and other media advertisements feature purple: Ee sonsinemnee” Ce Lacod a araees wl 3 ral oe Hane eae 11 00] does) Mia le S|) a Id. § 12. The Complaint contains many photos of NYU Langone’s advertising over the last seven years showing predominant use of purple backgrounds. Jd. Ex. A (showing photos of

advertisements from 2017 to 2023). NYU Langone alleges that its Distinctive Advertising is comprised of “the prominent use of a distinctive purple color, the use of particular accent colors (e.g., teal and orange) and photos, . . . [and the] use of purple, white, and accent color combinations in words and phrases in the ad headlines.” Id. 61. Prior to 2019, Northwell advertisements featured a logo with blue letters and multicolored arrows on a white background:

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Id. 42. Beginning in 2021, Northwell’s advertisements changed. /d. §] 43, Ex. A. In the last few years, the logo in some advertisements” used white letters and arrows on a purple background:

2 Northwell’s logo on its website continues to feature blue letters and multicolored arrows on a white background, meaning its updated logo is not uniform across all branding. Compl. § 55.

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Id. Ex. A at 5-6. NYU Langone alleges that these Northwell ads and other examples included in the Complaint are confusingly similar to NYU Langone’s Distinctive Advertising and are intended to trade off the good will and reputation of NYU Langone following its expansion into Long Island. Id. § 43. The Allegedly False Advertising NYU Langone takes particular exception to one specific Northwell advertisement from early 2023; that ad stated that Northwell’s Lenox Hill Hospital “is NYC’s only hospital in the Nation’s Top 50” and “offer[s] the best care in Manhattan.” Id. [9] 49, 52. This advertisement is based on rankings from Healthgrades and includes the Healthgrades logo directly underneath the claim. Id. NYU Langone questions Healthgrades’ rating methodology because it allegedly lacks transparency and relies on inaccurate and incomplete reporting. Id. §]52. NYU Langone further alleges that the claim is false or misleading because U.S. News & World Report ranked NYU Langone “#1 in New York State and in the New York City Metro area” in its “Best Hospitals Honor Roll.” Jd. Not surprising, NYU Langone views U.S. News’ ranking system for hospitals to be superior to that of Healthgrades. Id. Procedural History In June 2023, NYU Langone sued, alleging that Northwell copied its advertising and marketing campaigns. Compl., Dkt. 1. NYU Langone further alleged that Northwell engaged in

unfair competition, false advertising, and deceptive practices under both federal and state law. Id. Northwell moved to dismiss the Complaint for failure to state a claim, Mot., Dkts. 26–27; NYU Langone responded to the motion to dismiss rather than amending its Complaint. See Dkt. 30. DISCUSSION

I. Motion to Dismiss Standard To survive a motion to dismiss for failure to state a claim upon which relief can be granted, “a complaint must allege sufficient facts, taken as true, to state a plausible claim for relief.” Johnson v. Priceline.com, Inc., 711 F.3d 271, 275 (2d Cir. 2013) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555–56 (2007)). “[T]o survive a motion under Rule 12(b)(6), a complaint does not need to contain detailed or elaborate factual allegations, but only allegations sufficient to raise an entitlement to relief above the speculative level.” Keiler v. Harlequin Enters. Ltd., 751 F.3d 64, 70 (2d Cir. 2014) (citation omitted). When considering a Rule 12(b)(6) motion to dismiss, the Court accepts all factual allegations in the complaint as true and draws all reasonable inferences in the light most favorable to the plaintiff. See Gibbons v.

Malone, 703 F.3d 595, 599 (2d Cir. 2013) (citation omitted). The Court is not required, however, “to accept as true a legal conclusion couched as a factual allegation.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 555). II. The Complaint Does Not Adequately Allege Trade Dress Infringement NYU Langone brings a claim for trade dress infringement in violation of the Lanham Act (Count I). The relevant section of the Lanham Act, 15 U.S.C. § 1125(a)(1)(A), provides a cause of action against [a]ny person who, on or in connection with any goods or services . . . uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any . . . false or misleading description of fact, or false or misleading representation of fact, which . . .

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NYU Langone Health System v. Northwell Health, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/nyu-langone-health-system-v-northwell-health-inc-nysd-2024.