Scholastic, Inc. v. MacMillan, Inc.

650 F. Supp. 866, 2 U.S.P.Q. 2d (BNA) 1191, 1987 U.S. Dist. LEXIS 2
CourtDistrict Court, S.D. New York
DecidedJanuary 5, 1987
Docket86 Civ. 4007 (JEL)
StatusPublished
Cited by18 cases

This text of 650 F. Supp. 866 (Scholastic, Inc. v. MacMillan, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scholastic, Inc. v. MacMillan, Inc., 650 F. Supp. 866, 2 U.S.P.Q. 2d (BNA) 1191, 1987 U.S. Dist. LEXIS 2 (S.D.N.Y. 1987).

Opinion

OPINION

LUMBARD, Circuit Judge: *

Plaintiff Scholastic, Inc., initiated this action against defendants Macmillan, Inc., and Macmillan Book Clubs, Inc., alleging trademark infringement under the Lanham Act, 15 U.S.C. §§ 1051 et seq., false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), unfair competition, and illegal dilution under Section 368-d of the New York General Business Law. Scholastic seeks principally to enjoin defendant Macmillan, Inc.’s use of the name “Creative Classroom” for its magazine, on the ground that such use conflicts with Scholastic’s rights to the name “Classroom.” Macmillan counterclaims, seeking cancellation of Scholastic’s registration of “Classroom.” Both parties waived their rights to a jury trial.

The parties raise a variety of claims relating to the validity of Scholastic’s trademark on “Classroom” and the nature, if any, of Macmillan’s infringement. Two questions, however, are central to the Court’s determination of this case: (1) whether the term “classroom” is merely descriptive and thus available for use by other than the trademark holder; and (2) whether Scholastic made sufficient use of the name/ “Classroom” to create and maintain its trademark rights.

I.

Plaintiff Scholastic and defendant Macmillan are both, among other things, publishers of magazines for teachers. This suit concerns their dispute over the right to publish a magazine in the United States bearing a title which includes the word “Classroom.” The facts, as they emerged over the course of two days of testimony, were largely undisputed. The testimony primarily recounted Scholastic and Macmillan’s respective efforts to develop new magazines to be sold to teachers. Because these endeavors occurred largely independently of and simultaneously to one another, each will be set forth separately.

1. Scholastic, Inc. — Scholastic, Inc., (“Scholastic USA”) is a New York corporation which includes the wholly owned subsi *868 diaries of Scholastic-TAB Publications, Ltd., (“Scholastic Canada”) and Ashton Scholastic Pty. Ltd. (“Scholastic Australia”). In 1981, Scholastic Australia began publishing a magazine in Australia called “Classroom.” The magazine was marketed exclusively to teachers and included a substantial number of “hands on” products for students — that is, assignments which teachers could photocopy and distribute to their classes. In the spring of 1983, Sharon Brain, an editor for Scholastic Canada, met with Lione Sweeney, the editor of the Australian “Classroom,” to discuss the possibility of launching a similar magazine in Canada.

Brain obtained approval for the new magazine from her superiors in Canada and the United States and the charter issue of “Classroom: The Scholastic Magazine for Canadian Teachers” was published and dated May-June 1984. The magazine, which circulates to about 10,000 of the 100,-000 teachers in Canada, is geared exclusively to the Canadian market. Neither the American parent nor the Canadian subsidiary have made any efforts to obtain American subscribers to “Classroom;” distribution of the magazine in the United States has been limited to a small number of prospective advertisers.

In addition to publishing magazines, Scholastic USA also operates book clubs, including one for teachers called the See Saw Book Club. The regular circular of the See Saw Book Club, which was distributed from February 28, 1985 until March 27, 1985, included a small advertisement for a special American edition of “Classroom.” Scholastic Canada had prepared this special edition geared to the American market as a special, one-time offer to the 5,000 See Saw members. The promotion was not successful, however, as only 243 copies were ordered by American teachers from April 10 until June 1, 1985. To date, this has been Scholastic USA’s only effort to publish a magazine named “Classroom” in the United States.

Just as Scholastic USA was beginning its test of an American version of “Classroom” — in February or March of 1985 — the company learned of Macmillan’s plans to launch a “hands on” magazine for teachers called “Creative Classroom.” Scholastic promptly filed an application on March 13, 1985 in the United States Patent and Trademark Office to register “Classroom” as a trademark. The application claimed first use of the trademark in 1981 — with the publication of the Australian “Classroom” —and first use in commerce between Canada and the United States on July 10, 1984 —with the first distribution of Canadian “Classroom” to prospective American advertisers. Meanwhile, on May 22, 1985, Scholastic USA’s attorneys requested Macmillan to refrain from using the word “Classroom” as the title of its new magazine for teachers. Macmillan’s attorneys promptly acknowledged receipt of the Scholastic letter and rejected its request. On September 10, 1985, Scholastic USA received Registration No. 1,359,195 of the mark “Classroom” for an “educationally oriented magazine, periodically published and addressed to teachers.”

Thus, from late 1985 to the present, Scholastic USA has had a trademark but no magazine. Following the failed promotion to members of the See Saw Book Club, Scholastic USA went back to the drawing board for a “hands on” magazine for teachers. In October 1985, Scholastic USA’s chief executive, Richard Robinson, assigned a staff member, Mary Dalheim, to offer a new proposal for a magazine for primary school teachers. He also assigned a Scholastic executive, Shirrel Rhoades, to supervise the project. Dalheim submitted a formal proposal to Robinson on February 18, 1986. Even though Scholastic USA had registered a trademark for the name “Classroom,” only one of Dalheim's six suggested titles for the new magazine included the word “Classroom.” Scholastic’s plans have not progressed since the Dalheim memorandum. Its only actions have been another protest letter to Macmillan, on April 4, 1986, about the use of the name “Classroom” and, following Macmillan’s rejection of that protest, the filing of this lawsuit, on May 20, 1986.

*869 2. Macmillan, Inc. — Macmillan, Inc, a Delaware corporation headquartered in New York, is engaged in a wide variety of publishing enterprises. Macmillan Book Clubs, Inc., is a wholly owned subsidiary of Macmillan, Inc., whose products include book clubs, subscription programs and continuity programs. Continuity programs, like many book clubs, circulate monthly bulletins to their members which allow them the option to accept or reject a program-wide “selection” of the month. One of Macmillan’s continuity programs consisted of “hands on” materials which teachers could give to their students.

Peter Quant, executive Vice President and Chief Operating Officer of Macmillan Book Clubs, testified that he first considered publication of a “hands on” magazine for teachers in late 1982 or early 1983. Knowing that Macmillan already had several other teacher publications with approximately 350,000 subscribers, Quant thought he could draw on these names and the material in the “hands on” continuity program to support the proposed magazine.

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650 F. Supp. 866, 2 U.S.P.Q. 2d (BNA) 1191, 1987 U.S. Dist. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scholastic-inc-v-macmillan-inc-nysd-1987.