Pilot Corp. of America v. Fisher-Price, Inc.

501 F. Supp. 2d 292, 83 U.S.P.Q. 2d (BNA) 1784, 2007 U.S. Dist. LEXIS 53825, 2007 WL 2156385
CourtDistrict Court, D. Connecticut
DecidedJuly 24, 2007
DocketCivil Action 3:04cv977 (SRU)
StatusPublished
Cited by2 cases

This text of 501 F. Supp. 2d 292 (Pilot Corp. of America v. Fisher-Price, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pilot Corp. of America v. Fisher-Price, Inc., 501 F. Supp. 2d 292, 83 U.S.P.Q. 2d (BNA) 1784, 2007 U.S. Dist. LEXIS 53825, 2007 WL 2156385 (D. Conn. 2007).

Opinion

RULING and ORDER

UNDERHILL, District Judge.

In June 2004, the Pilot Corporation of America (“PCA”) commenced this action, which principally involves claims of trademark and trade dress infringement, but also involves several related claims. On *294 June 16, 2004, PCA filed a motion for preliminary injunction, seeking to enjoin Fisher-Price, Inc. and Mattel, Inc. (collectively “Fisher-Price”) from selling a product that PCA believed infringed its federally registered trademark and its common-law trade dress rights. Because PCA did not show it was likely to succeed on the merits of its claim, I denied its motion for preliminary injunction on November 9, 2004.

Following completion of discovery, Fisher-Price filed a motion for summary judgment, seeking to wholly dismiss PCA’s trademark and trade dress infringement and unfair competition claims, and in part, the Connecticut Unfair Trade Practices Act (“CUTPA”) claim and breach of contract claim. 1 For the reasons that follow, the motion for summary judgment is granted.

I. Factual Background

Although the factual background of this dispute was set forth in my ruling on PCA’s motion for preliminary injunction, Pilot Corp. of America v. Fisher-Price, Inc., 344 F.Supp.2d 349 (D.Conn.2004), I describe below the facts pertinent to the summary judgment motion.

A. The Magna Doodle

The Magna Doodle is a children’s drawing toy that consists primarily of a drawing screen made up of a lattice of small hexagons, each hexagon containing iron filings in suspension. The fluid in which the filings are suspended is opaque, and is viscous enough to hold the filings in place against gravitational force, but not viscous enough to hold them in place against magnetic force. When the Magna Doodle’s “stylus” — a plastic rod tipped with a magnet — is drawn across the reticulated screen, the nearby filings are pulled to the top of the opaque suspension and become visible on the screen. The screen’s lattice structure ensures an even distribution of filings. The Magna Doodle also has an “eraser bar,” which sweeps a magnetic rod across the back of the screen, bringing all filings to the bottom of the suspended fluid, effectively “cleaning” the board.

B. The Agreement

PCA owns U.S. Patent No. 4,143,472 (“the '472 patent”), entitled “Displaying Magnetic Panel and its Display Device,” which covers the drawing screen used in the Magna Doodle. PCA also owns the federally registered trademark “Magna Doodle.”

Since 1978, Magna Doodle products have been available on the market, though the mark was not always owned by PCA, and the product itself has not always been manufactured by Fisher-Price. Details of those earlier licensing arrangements are not relevant.

On January 1, 1992, PCA entered into a licensing agreement (“the Agreement”) with Tyco, giving Tyco the exclusive right to use the “Magna Doodle” trademark in connection with the manufacture and sale of drawing toys covered by the '472 patent. In return, Tyco agreed to purchase from PCA 100% of its annual requirement of panels for incorporation into its drawing toys bearing the “Magna Doodle” mark. The Agreement required the parties to agree by October 15 of each year on the number and price of panels to be supplied. Failure to do so would result in the Agreement terminating at the end of the calendar year. If the Agreement terminated, Tyco was permitted to continue to sell its existing inventory of licensed products for 180 days after the termination date. The Agreement also provided that Tyco could *295 use the “Magna Doodle” mark only in a manner approved by PCA.

In 1994 the parties amended the Agreement. The pertinent terms of the Agreement and the Amendment are discussed below.

C. Introduction of the Doodle Pro

In 1997, Mattel merged with Tyco. Thereafter, Mattel’s subsidiary, Fisher-Price, assumed the rights and obligations of the Agreement as amended. Soon after the merger, Fisher-Price complained to PCA about the price of the panels used in the Magna Doodle. As a result, in 2000 and 2002, PCA lowered the price of the panels it sold to Fisher-Price. Those price reductions did not satisfy Fisher-Price, and, in 2003 Fisher-Price informed PCA that, if it did not lower its prices again, Fisher-Price would terminate the Agreement. PCA did not lower its prices, and Fisher-Price did not place an order for panels before October 15, 2003. Accordingly, the Agreement terminated on December 31, 2003.

Under the terms of the Agreement, Fisher-Price was allowed to sell off its existing supply of Magna Doodle toys for 180 days beginning January 1, 2004, which it did. At the same time, however, Fisher-Price began to develop and market a replacement product, using panels purchased from an alternative vendor. The new product is called the Doodle Pro. 2 The new product and its packaging is nearly identical to the last version of the Magna Doodle sold by Fisher-Price. The most significant difference between the two products is their logos. The Magna Doodle product, as sold by Fisher-Price bore the label “Magna Doodle” in stylized purple script. The words “The Original” appeared in a red oval above the name, and below the name was the slogan, “The world’s favorite way to doodle!” Additionally, the Magna Doodle packaging had a red banner bearing the word “Classic” running along the bottom of the package’s face. The Doodle Pro product bears the label “Doodle Pro,” also in stylized purple script, though not in the same font. None of the other markings just described appear on the Doodle Pro package.

On May 5, 2004, PCA licensed its “Mag-na Doodle” trademark to The Ohio Art Company (“Ohio Art”). The prototype packages for the Ohio Art product bear the same logo as the last Fisher-Price Magna Doodle, including the words “The Original” and the slogan, “The world’s favorite way to doodle!” The Ohio Art package’s other elements differ from Fisher-Price’s.

II. Standard of Review

Summary judgment is appropriate when the evidence demonstrates that “there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.CivP. 56(c); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (party must present affirmative evidence in order to defeat a properly supported motion for summary judgment).

When ruling on a summary judgment motion, the court must construe the facts in the light most favorable to the nonmov-ing party and must resolve all ambiguities and draw all reasonable inferences against the moving party. Anderson, 477 U.S. at 255, 106 S.Ct. 2505; Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Adickes v.

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501 F. Supp. 2d 292, 83 U.S.P.Q. 2d (BNA) 1784, 2007 U.S. Dist. LEXIS 53825, 2007 WL 2156385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pilot-corp-of-america-v-fisher-price-inc-ctd-2007.