Playboy Enterprises, Inc. v. Terri Welles, Inc.

78 F. Supp. 2d 1066, 1999 U.S. Dist. LEXIS 21047, 1999 WL 1296101
CourtDistrict Court, S.D. California
DecidedDecember 1, 1999
Docket3:98-cr-00413
StatusPublished
Cited by13 cases

This text of 78 F. Supp. 2d 1066 (Playboy Enterprises, Inc. v. Terri Welles, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Playboy Enterprises, Inc. v. Terri Welles, Inc., 78 F. Supp. 2d 1066, 1999 U.S. Dist. LEXIS 21047, 1999 WL 1296101 (S.D. Cal. 1999).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT, OR IN THE ALTERNATIVE, FOR SUMMARY ADJUDICATION

KEEP, District Judge.

On February 27, 1998, Plaintiff Playboy Enterprises, Inc. (PEI) filed a Complaint against Defendant Terri Welles. 1 The Complaint consists of five causes of action: 1) Count I, trademark infringement pursuant to 15 U.S.C. § 1114(1); 2) Count II, false designation of origin and unfair competition under 15 U.S.C. § 1125(a); 3) Count III, dilution of trademarks pursuant to 15 U.S.C. § 1125(c); 4) Count IV, trademark infringement and unfair competition under California common law; and 5) Count V, unfair competition in violation of Cal. Bus. & Prof.Code § 17200, et seq. On December 21, 1998, Plaintiff filed a first amended complaint adding Defendants Terri Welles, Inc., the current business corporation owned and operated by Ms. Welles, whose internet on-line service comprises Ms. Welles’ business, and Stephen Huntington, the former webmaster of Ms. Welles’ website who was responsible for developing and maintaining Ms. Welles’ website prior to Defendant Mihalko’s succession to the job as webmaster. On April 1, 1999, Plaintiff filed a Second Amended Complaint, supplementing the Complaint with three additional causes of action: 1) Count VI, a claim of trademark counterfeiting pursuant to 15 U.S.C. § 1114(1); 2) Count VII, a claim of dilution of trademark in violation of Cal. Bus. & Prof.Code § 14335; 3) Count VIII, a claim of breach of contract based on a document involving business relations between PEI, Pippi, Inc., and Terri Welles. In its Second Amended Complaint, Plaintiff also added two defendants: 1) Pippi, Inc., a defunct California corporation which allegedly contracted with PEI and Terri Welles; and 2) *1071 Michael Mihalko, the current webmaster of Ms. Welles’ website.

On October 18, 1999, Defendant Terri Welles, Terri Welles, Inc., and Pippi, Inc. (hereafter, “Defendant Welles” or “Welles”) filed a motion for summary judgment or, in the alternative, for summary adjudication, of all eight of Plaintiffs claims against Defendants. Also on October 18, 1999, Defendant Michael Mihalko filed a motion for partial summary judgment, arguing that the “innocent infringer” defense under 15 U.S.C. § 1114(2) barred all Plaintiffs claims against him. Defendant Mihalko also filed a joinder in Defendant Welles’ summary judgment motion. On October 18, 1999, Defendant Stephen Huntington filed a joinder in both Defendant Welles’ and Defendant Mihalko’s motions. On November 1, 1999, Plaintiff filed an opposition to Welles’ motion for summary judgment or, in the alternative, for summary adjudication. In addition, Plaintiff filed an opposition to Defendant Mihal-ko’s motion for partial summary judgment, objections to Defendant Mihalko’s and Defendant Huntington’s joinders, and eviden-tiary objections. On November 8, 1999, Defendant Welles filed a reply, and Defendant Mihalko filed a separate reply. Defendant Huntington did not file a reply.

I. BACKGROUND

The following background facts are taken in large part from the court’s April 22, 1998 order denying Plaintiffs motion for preliminary injunction:

Plaintiff Playboy Enterprises, Inc. (PEI) is an international publishing and entertainment company. Since 1953, PEI has published Playboy magazine, a widely popular magazine with approximately ten (10) million readers each month. PEI also publishes numerous specialty magazines such as Playboy’s Playmate Review, Playboy’s Playmates of the Year, and Playboy’s Calendar Playmates among other publications. In addition to its publishing ventures, PEI produces television programming for cable and direct-to-home satellite transmission and sells and licenses various goods and services including videos.

PEI has established two websites. According to Plaintiff, its free website, http://www.playboy.com, has become one of the most popular sites on the Web and is used to promote its magazine, goods, and services. Its other website, called the “Playboy Cyber Club,” http://www.cy-ber.playboy.com, is devoted to promoting current and former PEI models.

PEI owns federally registered trademarks for the terms Playboy, Playmate, Playmate of the Month, and Playmate of the Year. The term Playmate of the Year is sometimes abbreviated “PMOY.” PEI does not have a federally registered trademark in the abbreviation “PMOY,” although PEI argues that “PMOY” is worthy of trademark protection because it is a well-known abbreviation for the trademark Playmate of the Year.

Defendant Terri Welles is a self-employed model and spokesperson, who began her modeling career with Playboy magazine in 1980. In May of 1980, Ms. Welles appeared on the cover of Playboy magazine and was subsequently featured as the “Playmate of the Month” in the December 1980 issue. Ms. Welles received the “Playmate of the Year” award in June of 1981. Since 1980, Ms. Welles has appeared in no less than thirteen (13) issues of Playboy magazine and eighteen (18) newsstand specials published by PEI. Ms. Welles claims that since 1980 she has always referred to herself as a “Playmate” or “Playmate of the Year” with the knowledge of PEI.

On June 29, 1997, Ms. Welles opened a website, http://www.terriwelles.com, which includes photographs of herself and others (both nude and clothed), a fan club posting board, an autobiography section, and a listing of current events and personal appearances. The domain name for Defendant Welles’ site is “terriwelles,” the heading for the website is “Terri Welles— Playmate of the Year 1981,” and the title of the link page is “Terri Welles — Playboy Playmate of the Year 1981.” Each of the pages uses “PMOY ’81” as a repeating *1072 watermark in the background. According to Defendant, eleven (11) of the fifteen (15) free web pages include a disclaimer at the bottom of the pages, in varying font sizes depending on the page, which indicates that the website is not endorsed by PEI; the disclaimer reads as follows: “This site is neither endorsed, nor sponsored by, nor affiliated with Playboy Enterprises, Inc. PLAYBOY, PLAYMATE OF THE YEAR and PLAYMATE OF THE MONTH are registered trademarks of Playboy Enterprises, Inc.” Defendant Welles uses the terms Playboy and Playmate along with other terms within the keywords section of the meta tags, which constitutes the internal index of the website used by some search engines. The site contains link pages to other erotic, adult-oriented websites. It also contains advertising “banners” for some of those websites.

Since May of 1997, Ms. Welles has been in contact with Plaintiff about the design and creation of her website.

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Bluebook (online)
78 F. Supp. 2d 1066, 1999 U.S. Dist. LEXIS 21047, 1999 WL 1296101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/playboy-enterprises-inc-v-terri-welles-inc-casd-1999.