Prime Media, Inc. v. Primedia, Inc.

33 F. Supp. 2d 932, 1998 U.S. Dist. LEXIS 19298, 1998 WL 853016
CourtDistrict Court, D. Kansas
DecidedNovember 30, 1998
DocketCiv.A. 98-2349-GTV
StatusPublished
Cited by2 cases

This text of 33 F. Supp. 2d 932 (Prime Media, Inc. v. Primedia, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prime Media, Inc. v. Primedia, Inc., 33 F. Supp. 2d 932, 1998 U.S. Dist. LEXIS 19298, 1998 WL 853016 (D. Kan. 1998).

Opinion

MEMORANDUM AND ORDER

VANBEBBER, Chief Judge.

Plaintiff brings this trademark infringement, unfair competition, and trademark dilution action alleging that defendants’ use of *934 the name “Primedia” infringes upon plaintiffs federal registration and common law rights. The case is before the court on plaintiffs motion for a preliminary injunction (Doc. 7). The parties presented evidence at a hearing on plaintiffs motion on September 28, 29, and October 6,1998. For the reasons set forth below, the motion is denied.

I.FINDINGS OF FACT

Pursuant to Fed.R.Civ.P. 52(a), the court makes the following findings of fact and conclusions of law.

1. Plaintiff PRIME MEDIA, Inc., a Kansas Corporation, publishes newsletters, trade magazines, annual reports, and brochures. Plaintiff also offers custom publishing, public relations consulting, advertising campaign development, book jacket designing, and direct mailing services.

2. Plaintiff writes and publishes the magazine It’s Time to. Feel Good for Saint Luke’s-Shawnee Mission Health System. More than half of plaintiffs annual gross revenue comes from services provided for Saint Luke’s-Shawnee Mission Health System.

3. Defendants PRIMEDIA, Inc. and PRIMEDIA Intertec publish magazines, educational programs, reference materials, and rental materials. The PRIMEDIA name appears on the masthead as the publisher. Defendants own their publications outright.

4. Fifty percent of defendants’ business is publishing well-known magazines, including Seventeen, New York, Chicago, and Modem Bride.

5. Defendant PRIMEDIA Intertee, a Kansas subsidiary of defendant PRIMEDIA, does a limited amount of custom publishing. Less than one percent of defendant PRIME-DIA Intertec’s annual revenue comes from custom publishing.

6. Defendant PRIMEDIA recently acquired a company in Malibu, California that provides custom publishing services for Medicare. Defendant PRIMEDIA Intertec will not be involved with the Medicare custom publishing.

7. Defendants do not provide the following services which are provided by plaintiff: web site design, brochures, public relations, graphics/logo design, or direct mail.

8. Plaintiff began using the name PRIME MEDIA at the inception of the corporation in 1991.

9. Plaintiffs founders, Frederic and Janine Hron, searched library sources, including industry and telephone directories, prior to using the name PRIME MEDIA. The Hrons chose the name PRIME MEDIA because “Prime” denotes quality and “Media” is an umbrella term.

10. Plaintiff has promoted its name through direct mail, sponsored events, and advertisements in trade publications. Plaintiff has spent approximately $40,000 on promotional materials and activities in 1998. Over the course of its existence, plaintiff has spent tens of thousands of dollars promoting the company and its name.

11. On May 28, 1997, plaintiff filed a service mark application with the Federal Patent and Trademark Office for the PRIME MEDIA name and logo design.

12. On April 21, 1998, plaintiffs application was published in the Official Gazette of the Federal Patent and Trademark Office for opposition. No opposition was filed against plaintiffs application, and plaintiff received its federal registration effective July 14, 1998.

13. While plaintiffs federal trademark application was pending, defendant PRIME-DIA changed its name from K-III Communications to PRIMEDIA on November 18, 1997.

14. Prior to changing its name, defendant PRIMEDIA hired international communications firm Siegel & Gale, headquartered in New York, to provide name-changing and corporate-identity advice.

15. Defendant PRIMEDIA’s legal department conducted searches regarding the availability of various proposed names.

16. Defendant PRIMEDIA’s outside counsel performed a full trademark search, including common law usages, for the proposed name PRIMEDIA. The trademark *935 search revealed several companies using PRIMEDIA or a similar name.

17. No trademark search on behalf of defendant PRIMEDIA was performed after April 10, 1997. Because plaintiff filed its trademark application on May 28, 1997, plaintiffs use of the PRIME MEDIA name was reported only in the common law section of the search.

18. When defendant PRIMEDIA determined that PRIMEDIA was the preferred name, it engaged the services of a trademark investigator to provide in-depth information regarding companies using Primedia or a similar name.

19. Upon receiving the trademark investigator’s findings, defendant PRIMEDIA purchased the rights and usage of the Primedia name from certain companies. Defendant PRIMEDIA paid $25,000 to a magazine publishing company named Primedia Group Inc. in exchange for the discontinued use of the Primedia name. Defendant PRIMEDIA purchased the Primedia corporate name from Delaware corporation Primedia Inc. for $15,-000. Defendant PRIMEDIA also purchased the Internet domain name primediainc.com from Indiana corporation Primedia Inc. for $10,000.

20. On July 2, 1997, defendant PRIME-DIA filed a trademark/service mark application with the Federal Patent and Trademark Office. The Federal Patent and Trademark Office refused registration because defendant PRIMEDIA’s mark, in connection with its goods and services, resembled a Florida company’s registration. The Federal Patent and Trademark Office determined that defendant PRIMEDIA’s mark was likely to cause confusion, mistake, or to deceive.

21. On November 14,1997, plaintiff wrote defendant PRIMEDIA a letter informing it that plaintiff had a pending service mark application for the PRIME MEDIA name and logo design. Defendant PRIMEDIA responded that it intended to continue using the PRIMEDIA name despite plaintiffs objections.

22. Defendant PRIMEDIA changed its name from K-III Communications on November 18, 1997. It substantially promoted the new name, spending $4,283,899 on various promotions, advertisements, and other direct expenses associated with changing its name.

23. Defendants’ gross revenue for 1997 was $1.5 Billion, with $250 Million net before taxes.

24. After defendant PRIMEDIA changed its name, it began changing its subsidiaries’ names. In June 1998, it changed Kansas subsidiary Intertec Publishing Corporation to PRIMEDIA Intertec.

25. Plaintiff filed this action on August 7, 1998, upon receiving its federal registration effective July 14,1998.

26. Plaintiffs office manager has documented approximately eleven phone calls from- persons trying to reach defendant PRIMEDIA Intertec. Plaintiff has not received any mail intended for defendants.

27. There are other companies using plaintiffs same or similar name. Prime Media, Inc. in Hartford, Connecticut is an advertising agency offering advertising, marketing, and public relations services. PriMedia, Inc.

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33 F. Supp. 2d 932, 1998 U.S. Dist. LEXIS 19298, 1998 WL 853016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prime-media-inc-v-primedia-inc-ksd-1998.