Rose Art Industries, Inc. v. Swanson

235 F.3d 165, 2000 WL 1824510
CourtCourt of Appeals for the Third Circuit
DecidedDecember 13, 2000
Docket98-6489
StatusUnknown
Cited by2 cases

This text of 235 F.3d 165 (Rose Art Industries, Inc. v. Swanson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose Art Industries, Inc. v. Swanson, 235 F.3d 165, 2000 WL 1824510 (3d Cir. 2000).

Opinion

OPINION OF THE COURT

ROTH, Circuit Judge:

The issue in this appeal is colorful. The appellant, Rose Art Industries, Inc. (Rose Art), claims that the appellee, Raymond Geddes and Company (Geddes), engaged in unfair competition in violation of section 43(a) of the Lanham Act. Specifically, Rose Art, a distributor of crayons, markers, and colored pencils, seeks to enjoin Geddes from distributing various stationery products (markers, crayons, and colored pencils) in packaging that Rose Art alleges infringes its trade dress.

The District Court held that Rose Art’s packaging did not have a “consistent overall look” and thus did not constitute recognizable trade dress. The District Court denied Rose Art’s motion for a preliminary injunction because it found that Rose Art bility of success on the merits.

We conclude that the District Court misapplied the legal standard in determining whether the characteristics of three types of Rose Art’s packaging constituted recognizable trade dress. We will reverse the District Court’s denial of Rose Art’s motion for a preliminary injunction and remand this case for further proceedings consistent with this opinion.

I. Facts

Rose Art Industries, Inc., a New Jersey corporation, has been manufacturing and selling stationery products, including crayons, colored pencils, and markers, for over sixty years. Rose Art is currently the second-largest seller in the United States of children’s crayons, markers, and chalks.

Raymond Geddes and Company, a Maryland corporation, was founded in 1923 and originally sold novelty items. Geddes subsequently expanded its operations in order to sell office supplies and stationery products to elementary school bookstores. Initially, Geddes did not have its own line of crayons. It purchased crayons from third parties, such as Crayola or Sargent, for resale to schools. In 1994, however, Geddes developed its own line of crayons called Spectrum, which it marketed and sold to elementary school bookstores in packaging designed by an independent designer. 2

In 1996, hoping to expand its sale of stationery products into national mass merchandise retail outlets, Geddes hired Chris Blackmon as its national sales manager to develop mass market distribution channels for Geddes’s products. Under Blackmon’s direction, Geddes’s Creative Director, Aleksandra Guian, developed a product line under the name KidStuf 1. *168 KidStuf 1 included markers and colored pencils, but not crayons.

In 1997, Geddes decided to further expand its mass market offerings by designing an art supply line, including a full range of markers, colored pencils, and crayons. Geddes targeted older children, ages 10-12, for its new line and named it “ARTieulates’’ suggesting a more sophisticated arts and crafts product. Because Geddes felt that the KidStuf 1 package design was not suitable for a mass market line, it decided to create a new package design for ARTieulates. Before creating the new design, Guian and Blackmon obtained samples and catalogs of other manufacturers’ retail stationery products, including Rose Art’s.

Guian completed the design of the ARTiculates packaging in September 1997, in time for Geddes to show the new line at the industry trade show in November. The ARTieulates packaging was characterized by a yellow background with a contrasting bold, bright color illustration of the product on the box and the product type written in white letters on a black oval-shaped band. The ARTieulates package also featured the legend “since 1923” and the statement: “We invite your comments about our product. Please write to: Raymond Geddes & Company, Consumer Affairs, P .0. Box 24829, Baltimore, MD 21220.” Both of these legends were new additions to the Geddes product design.

In July 1997, Dollar General Corporation (Dollar General) 3 conducted its standard annual bid process. During the bid process, also known as a line review, Dollar General accepted bids from different manufacturers seeking to supply Dollar General with stationery products for 1998. Rose Art instructed its manufacturer representative, Carl Swanson, to submit bids to Dollar General for Rose Art’s products. Unbeknownst to Rose Art, Swanson was also Geddes’s manufacturer representative. Rose Art alleges that Swanson failed to submit bids for a number of Rose Art’s products but that he did submit bids to Dollar General on behalf of Geddes for its stationery products. 4

In August 1997, Chris Blackmon and Swanson met with Gail Moore, the buyer for Dollar General’s stationery department. At this meeting, Blackmon showed Moore the KidStuf 1 line of products. In a second meeting on October 2, 1997, Blackmon showed Moore some crayon and marker samples in the ARTieulates packaging. Moore expressed interest in Ged-des’s ARTieulates line but did not like the ARTieulates packaging because it was too wordy, busy, and dull. She told Blackmon that she was looking for a package that was more basic, simple, and colorful with a design that would appeal to younger children. Moore instructed Blackmon to create a package that looked more like Crayola’s package. 5 Blackmon agreed to provide Moore with a revised package design.

Based on Moore’s directions, Blackmon instructed Guian to redesign the ARTieu-lates packaging using the KidStuf name and modifying the package to make it brighter and simpler. The new design, which the parties refer to as KidStuf 2, consists of the following characteristics: a bright yellow background on the top half of the package with a bright contrasting color on the bottom, the product type in white letters on a black band in the middle of the package, a rainbow backdrop (re *169 ferred to by the District Court as a “swish”) on which the KidStuf mark is superimposed, the statement that the product is “Certified Non-Toxic,” the legend “since 1923”, and the statement “We invite your comments about our product. Please write to: Raymond Geddes & Company, Consumer Affairs, P.O. Box 24829, Baltimore, MD 21220.”

On October 6, 1997, Geddes sent artwork, depicting the KidStuf 2 package design, to Dollar General. On October 10, Geddes sent forty-eight mock-up packages. The mock-ups comprised other manufacturers’ crayon packages, including Rose Art’s, with Geddes’s KidStuf 2 package design wrapped around the other manufacturers’ packages. The forty-eight Geddes mock-up packages were used by Dollar General in its planogram room (where the company displayed products as if they were on a shelf in a store) for review by Dollar General’s executives in their selection of new vendors. In December 1997, after completing its standard annual bid process, Dollar General selected Geddes as its primary supplier of stationery products for 1998.

II. Procedural History

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235 F.3d 165, 2000 WL 1824510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-art-industries-inc-v-swanson-ca3-2000.