SMJ Group, Inc. v. 417 Lafayette Restaurant LLC

439 F. Supp. 2d 281, 2006 U.S. Dist. LEXIS 46064, 2006 WL 1881768
CourtDistrict Court, S.D. New York
DecidedJuly 6, 2006
Docket06 Civ. 1774(GEL)
StatusPublished
Cited by10 cases

This text of 439 F. Supp. 2d 281 (SMJ Group, Inc. v. 417 Lafayette Restaurant LLC) 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
SMJ Group, Inc. v. 417 Lafayette Restaurant LLC, 439 F. Supp. 2d 281, 2006 U.S. Dist. LEXIS 46064, 2006 WL 1881768 (S.D.N.Y. 2006).

Opinion

*285 OPINION AND ORDER

LYNCH, District Judge.

Plaintiffs have moved to preliminarily enjoin defendants from distributing certain leaflets that contain plaintiffs’ trademarks outside of plaintiffs’ restaurants. The Court held a hearing on March 7, 2006, at which time the Court denied plaintiffs’ motion for a temporary restraining order. The parties subsequently briefed the instant motion, and for the reasons below the Court now denies plaintiffs’ request for a preliminary injunction.

BACKGROUND

The relevant facts are not in dispute. 1 Plaintiffs own two restaurants that are at the center of this dispute: Trattoria Dell’Arte at 900 Seventh Avenue, New York, New York, and Brooklyn Diner USA at 212 West 57th Street, New York, New York. Defendant The Restaurant Opportunities Center of New York, Inc. (“ROC”) is a non-profit organization that seeks to improve conditions for New York City’s restaurant workers. 2 - As part of this mission, ROC “works to establish and maintain worker-owned cooperative restaurants.” (Robb Aff. Ex. A ¶ 3.) One such restaurant is Colors Restaurant, which is operated by defendant 417 Lafayette Restaurant LLC (“417 Lafayette”) at 417 Lafayette Street, New York, New'York. ROC owns a 40% interest in 417 Lafayette. 3

Beginning in March 2006, defendants began stationing individuals outside Trat-toria Dell’Arte and the Brooklyn Diner to hand out the leaflets that are the subject of this dispute. Each leaflet is essentially a single sheet of paper folded in half to create a'pamphlet. The front of the leaflet displays the trademarked logo of one of plaintiffs’ restaurants, 4 along with the text “SPECIAL FOR YOU.” On the inside of the leaflet, the left side contains the text “DO YOU REALLY WANT TO EAT HERE?” ■ and the right side contains the text:

Workers from this restaurant company have sued the company' in Federal Court for misappropriated tips and unpaid overtime hours worked. More than 50 ■current and former workers from the . restaurant company approached the , Restaurant Opportunities Center of New York, complaining of misappropriated tips, unpaid overtime wages, racial and gender discrimination, sexual harassment, harsh working conditions in the restaurant, and retaliation for speaking up for their rights.
. SUPPORT THE WORKERS IN THEIR STRUGGLE FOR DECENT WORKING CONDITIONS!
*286 FOR MORE INFORMATION, PLEASE CALL ROC-NY (THE RESTAURANT OPPORTUNITIES CENTER OF NEW YORK) AT 212-343-1771.

The back of the leaflet contains the text:

The Restaurant Opportunities Center of New York (ROC-NY) is a non-profit organization that seeks improved working conditions for restaurant workers citywide. ROC-NY assists restaurant workers seeking legal redress against employers who violate their employment rights. ROC-NY seeks to provide customers and the public with information about the litigation in this restaurant through these handbills, not to picket or interfere with deliveries. ROC-NY is not a labor organization and does not seek to represent the workers or be recognized as a collective bargaining agent of the workers at this restaurant.

DISCUSSION

Plaintiffs’ motion for a preliminary injunction is based on their claims that defendants’ distribution of the above-described leaflets infringes on their trademarks in violation of the Lanham Act, 15 U.S.C. §§ 1114, 1125, and dilutes their trademarks in violation of the Lan-ham Act, 15 U.S.C. § 1125 and N.Y. Gen. Bus. Law § 360-7

To obtain a preliminary injunction, plaintiffs must demonstrate both (1) a likelihood of irreparable harm in the absence of relief and (2) either (a) a likelihood of success on the merits or (b) sufficiently serious questions regarding the merits along with a showing that the balance of hardships favors the injunction. 1-800 Contacts, Inc. v. WhenU.Com, Inc., 414 F.3d 400, 406 (2d Cir.2005).

I. Likelihood of Success of Plaintiffs’ Infringement Claims

Plaintiffs bring their claims of trademark infringement under 15 U.S.C. §§ 1114, 1125(a). Section 1114 prohibits “the [unauthorized] use in commerce [of another’s trademark] in connection with the sale, offering for sale, distribution, or advertising of any goods or services ... [if] such use is likely to cause confusion, or to cause mistake, or to deceive.” Section 1125(a) prohibits the unauthorized use “in commerce” and “in connection with any goods or services” of “any word, term, name, symbol, or device, or any combination thereof ... which ... is likely to cause confusion, or to cause mistake, or to deceive as to the ... origin, sponsorship, or approval of [the unauthorized user’s] goods, services, or commercial activities by another person.”

To succeed on these claims, plaintiffs must prove four elements: (1) that they possess the trademarks at issue, (2) that defendants’ use of the marks is in commerce, (3) that defendants’ use of the marks is in connection with goods or services, and (4) that the defendants’ use of the marks is likely to cause confusion. With respect to the first element, defendants concede that plaintiffs are the trademark holders for the logos displayed on the covers of defendants’ leaflets.

A. Use of the Trademark In Commerce

The second element — -whether defendants’ use of plaintiffs’ marks is in commerce — is a question regarding the extent of Congress’s commerce power, because Congress’s use of the phrase “in commerce” in the Lanham Act “reflects Congress’s intent to legislate to the limits of its authority under the Commerce Clause.” United We Stand Am., Inc. v. United We Stand, Am. N.Y., Inc., 128 F.3d 86, 92 (2d Cir.1997). Given the broad *287 scope of Congress’s commerce power, and given that plaintiff businesses engage in interstate commerce — commerce that is alleged to be adversely affected by defendants’ use of their trademarks — plaintiffs are likely to satisfy this element of their claim. See, e.g., Gonzales v. Raich, 545 U.S. 1, 125 S.Ct. 2195, 2206, 162 L.Ed.2d 1 (2005) (“when ‘a general regulatory statute bears a substantial relation to commerce, the de minimis character of individual instances arising under that statute is of no consequence.’ ” (quoting United States v. Lopez,

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Bluebook (online)
439 F. Supp. 2d 281, 2006 U.S. Dist. LEXIS 46064, 2006 WL 1881768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smj-group-inc-v-417-lafayette-restaurant-llc-nysd-2006.