Paul Frank Industries, Inc. v. Sunich

502 F. Supp. 2d 1094, 2007 U.S. Dist. LEXIS 63180, 2007 WL 2376998
CourtDistrict Court, C.D. California
DecidedAugust 21, 2007
DocketSACV 07-0609 CJC (ANx)
StatusPublished
Cited by4 cases

This text of 502 F. Supp. 2d 1094 (Paul Frank Industries, Inc. v. Sunich) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul Frank Industries, Inc. v. Sunich, 502 F. Supp. 2d 1094, 2007 U.S. Dist. LEXIS 63180, 2007 WL 2376998 (C.D. Cal. 2007).

Opinion

ORDER GRANTING IN PART PAUL FRANK INDUSTRIES, INC.’S MOTION FOR A PRELIMINARY INJUNCTION

CARNEY, District Judge.

I. INTRODUCTION

Paul Frank Industries, Inc. (“PFI”) brings this trademark infringement action against its former namesake designer, Paul Frank Sunich, and his co-defendants, Paul Frank Design, Chaser Merchandising, and Does 1-10 (collectively, “Defendants”). PFI contends that Defendants’ websites (www.paulfranksunich.com, www. chasermerch.com, and www.treestitch design.com) and Defendants’ sale of T-shirts using Mr. Sunich’s full name, “Paul Frank Sunich,” infringe PFI’s proprietary rights in the Paul Frank mark. In this motion, PFI seeks to preliminarily enjoin Defendants from use of the name “Paul Frank” in any commercial context, whether used on its own or in conjunction with other names or words (i.e. Paul Frank Sunich or Paul Frank Design). Mr, Su-nich, on the other hand, argues that he has an absolute right to use his full name in any context, including the sale of T-shirts designed by him. The Court finds that neither party’s position is supported in the law relating to the use of personal names as trademarks.

Under trademark law, there is no absolute right to use one’s own personal name where that use would be confusingly similar to an established use of a famous mark that the public has come to associate with another source. Through the extensive *1096 efforts of both PFI and Mr. Sunieh, the Paul Frank mark has become famous. Mr. Sunieh, therefore, has no absolute right to make use of his name in a manner that would be confusingly similar to PFI’s use of the Paul Frank mark. Accordingly, Mr. Sunieh, along with the other Defendants, must be enjoined from using his full name in the sale of Defendants’ T-shirts. Mr. Sunieh, however, is entitled under trademark law to use his name in other contexts, commercial or otherwise, to identify himself and inform others about his work. PFI has no right to prevent Mr. Sunieh and the other Defendants from using Mr. Sunich’s full name in contexts where such use will not result in any confusion with PFI’s use of the Paul Frank mark.

II. FACTUAL BACKGROUND

In 1995, PFI was eo-founded by Paul Frank Sunieh and his friend, Ryan Heu-ser. Opp’n of Defs. Paul Frank Sunieh and Binder Salem Co., Inc. d/b/a Chaser Merchandising to Pl.’s Mot. for a Prelim. Inj. (“Opposition”) at 2. Mr. Sunieh and Mr. Heuser later teamed up with John Oswald, and in 1997, PFI was incorporated. Id. at 3. Since that time, PFI has used the name “Paul Frank” as well as the characters and designs created by Mr. Su-nieh to achieve enormous success and public recognition in connection with a wide variety of products, including apparel, wallets, purses and other accessories. Id.-, Pl.’s Mot, for a Prelim. Inj. (“PI Motion”) at 3. In fact, PFI’s goods now sell at nearly two-thousand retail stores worldwide. Req. for Judicial Notice in Supp. of Mot. of Defs. to Dismiss Compl., Ex. A at 4, In addition, PFI operates its own retail stores in cities around the world and has co-branded deals with famous companies including Sanrio (the creator of Hello Kitty), Oscar Mayer, Barbie, the Elvis Presley estate, and John Deere. Decl. of Seth Miller in Supp. of Defs.’ Opp. to T.R.O. and Order to Show Cause re Prelim. Inj. at Ex. D, Paul Frank Indus., Inc. v. Paul Frank Sunieh, No. 06-296. 1 In 2005, PFI sold over $40 million in goods bearing the Paul Frank mark. Compl. at ¶ 20; Answer of Def. Paul Frank Sunich to First Am. Compl. at ¶ 11, Paul Frank Indus., Inc. v. Paul Frank Sunich, No. 06-296. To protect its rights in the “Paul Frank” name, PFI has therefore registered various trademarks that incorporate the name into phrases or small designs. PI Motion, Ex. A.

In November 2005, Mr. Sunieh had a falling out with PFI that resulted in him leaving the company. Opposition at 3. Since then, the parties have been before this Court in three separate actions, including this one. Mr. Sunieh filed the first action (Paul Frank Sunich v. Paul Frank Indus., Inc., No. 06-278 (“Paul Frank I ”)) alleging that PFI was infringing Mr. Su-nich’s copyright in Julius the Monkey, a, signature Paul Frank character designed and created by Mr. Sunieh. However, after discovering that he had apparently transferred the copyright in Julius to PFI, Mr. Sunieh voluntarily dismissed the case.

The second action (Paul Frank Indus., Inc. v. Paul Frank Sunich, No. 06-296 (“Paul Frank II”)) was filed by PFI. In that case, PFI sought to enjoin Mr. Sunieh from operating a website under the name “Paul Frank Design” and from meeting with Target and other potential employers to discuss PFI’s copyrighted designs. While Paul Frank II was also voluntarily dismissed, it was dismissed without prejudice to give PFI time to find additional evidence in support of its claims. The dismissal also came after the Court had *1097 issued a temporary restraining order pursuant to which Mr. Sunich took down a “Paul Frank Design” website that had not yet engaged in any commercial activity.

Since Paul Frank II, Mr. Sunich and the other Defendants, have made efforts to start up a business selling T-shirts featuring designs by Mr. Sunich. These T-shirts are being sold under the label name, “Treestitch by paul frank sunich” and can be purchased on Defendants’ website, www.chasermerch.com. PI Motion at 8. This site allows consumers to choose from a list of product categories that includes products sold under the name, “TREES-TITCH by PAUL FRANK SUNICH.” PI Motion, Ex. L. When consumers click on this name, they can see and purchase a variety of brightly colored T-shirts with “whimsical designs” and characters created by Mr. Sunich, many of which, not surprisingly, resemble the designs and characters Mr. Sunich created while at PFI.

Defendants also operate a website, unm. paulfranksunich.com which links directly to the Chaser Merchandising site, and a site, unm.treestitchdesign.com which for now, appears to operate solely for informational and/or marketing purposes. The unm.paulfranksunich.com site opens with a cartoon image of Mr. Sunich addressing viewers saying:

“Hi Friends, Paul Frank here ... as you may know, I left my old company Paul Frank Industries in November of '05. Inside this site is some of the cool stuff I have been working on since then. Please look for my new stuff by my whole name ‘Paul Frank Sunich’ and ‘By Paul.’ Heart, Paul.” PI Motion, Ex. C.

Similarly, the unm.treestitchdesign.com site opens to a Treestitch design logo which leads the viewer to a brief letter from Mr. Sunich that reads:

“Hello Friends! I’ve missed y’all! Thank you for coming to Treestitch Design, my new home. I’m just getting settled in here at ‘the Stitch,’ but I figured I’d open the door and let you in for a little sneak peek at all the unique stuff going on.

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Bluebook (online)
502 F. Supp. 2d 1094, 2007 U.S. Dist. LEXIS 63180, 2007 WL 2376998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-frank-industries-inc-v-sunich-cacd-2007.