Spangler Candy Co. v. Tootsie Roll Indus., LLC
This text of 372 F. Supp. 3d 588 (Spangler Candy Co. v. Tootsie Roll Indus., LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Jeffrey J. Helmick, United States District Judge
I. INTRODUCTION
Plaintiff Spangler Candy Company moved for a preliminary injunction against Defendant Tootsie Roll Industries, LLC. (Doc. No. 17). In response, Tootsie opposed the injunction, (Doc. Nos. 25 (sealed) & 26 (redacted) ), and moved to exclude expert testimony and reports introduced by Spangler in its motion for preliminary injunction. (Doc. No. 24). Spangler then filed a memorandum in opposition to expert exclusion, (Doc. Nos. 39 (sealed) & 40 (redacted) ), and a reply in support of injunctive relief sought. (Doc. Nos. 37 (sealed) & 38 (redacted) ). Following this briefing and at the request of the parties, I held oral argument on these matters.
*594II. BACKGROUND
This litigation is centered upon the two lollipop bags pictured above.1 The bag on the left is manufactured by Spangler, the one on the right by Tootsie. The undisputed facts are as follows.
In 2011, after spending 20 months and more than $220,000 in an effort to "refresh its DUM DUMS packaging," Spangler began using the packaging shown above. (Doc. No. 17-2 at 3-4). Since that time, DUM DUMS have been continuously sold in this packaging. (Id. at 4).
In 2016, CHARMS MINI POPS , which then appeared in the packaging above, held only 0.04% of the lollipop market. (Doc. No. 25-1 at 2). Because Spangler had been gaining market share and was approaching that of Tootsie's, Tootsie developed a strategy in which CHARMS MINI POPS would compete with DUM DUMS. (Doc. No. 36-8, Doc. No. 36-13). Although the price and value competition strategy was introduced in January 2017, the idea of changing the packaging was not considered until May 2017.2
*595(Doc. No. 36-8; Doc. No. 36-12 at 23). By July 2017, the red packaging first appeared in Tootsie materials, and by September 2017, the design had been approved for use. (Doc. No. 36-3 at 4, Doc. No. 36-5, Doc. No. 36-6). Although Tootsie enlisted the services of a third-party consultant, Cassata & Associates, to develop initial designs, none of Cassata's proposed designs were used.3 (Doc. No. 36-1; Doc. No. 36-12 at 17-18). Instead, with knowledge of DUM DUMS trade dress and using no market research, Tootsie completely redesigned the package in only five months. (Doc. No. 36-4; Doc. No. 36-12 at 31-32; Doc. No. 36-13 at 39, 41, 45-46).
Spangler learned of the new CHARMS MINI POPS packaging in March 2018 and sent a cease-and-desist letter on April 3, 2018. (Doc. No. 25-2 at 20; Doc. No. 37-2 at 2-3). Tootsie promptly rejected Spangler's demand on April 12, 2018. (Doc. No. 37-2 at 4-6). After concluding Tootsie intended wide distribution, Spangler filed suit in May 2018. (Doc. No. 1; Doc. No. 37 at 18).
III. EXPERT TESTIMONY
As the trial judge, it is my duty to act as the "gatekeeper" and determine the admissibility of expert testimony. See Kumho Tire Co., Ltd. v. Carmichael ,
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:
(a) the expert's scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied the principles and methods to the facts of the case.
Fed. R. Evid. 702. Ultimately, an expert's testimony will be admissible if it "both rests on a reliable foundation and is relevant to the task at hand." Daubert ,
A. STEVE ULINE
Tootsie moves to exclude the report of Steve Uline on grounds that it will not help the trier of fact, alleging the report states only conclusory opinions "based on no relevant data or reliable methodology." (Doc. No. 24-1 at 15). In part, I agree. But because Uline has the expertise necessary to testify to the product development process through his background and experience in marketing and branding, this section of the report is admitted. (Doc. No. 17-3 at 7-15; Doc. No. 24-6 at 12-13). Conversely, the remainder of his report must be excluded. (Id. at 5-6, 16-24).
The sections to be excluded are based upon unverified methodology and questionable sources rather than " 'a reliable basis in the knowledge and experience of [the relevant] discipline.' " Kumho ,
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Jeffrey J. Helmick, United States District Judge
I. INTRODUCTION
Plaintiff Spangler Candy Company moved for a preliminary injunction against Defendant Tootsie Roll Industries, LLC. (Doc. No. 17). In response, Tootsie opposed the injunction, (Doc. Nos. 25 (sealed) & 26 (redacted) ), and moved to exclude expert testimony and reports introduced by Spangler in its motion for preliminary injunction. (Doc. No. 24). Spangler then filed a memorandum in opposition to expert exclusion, (Doc. Nos. 39 (sealed) & 40 (redacted) ), and a reply in support of injunctive relief sought. (Doc. Nos. 37 (sealed) & 38 (redacted) ). Following this briefing and at the request of the parties, I held oral argument on these matters.
*594II. BACKGROUND
This litigation is centered upon the two lollipop bags pictured above.1 The bag on the left is manufactured by Spangler, the one on the right by Tootsie. The undisputed facts are as follows.
In 2011, after spending 20 months and more than $220,000 in an effort to "refresh its DUM DUMS packaging," Spangler began using the packaging shown above. (Doc. No. 17-2 at 3-4). Since that time, DUM DUMS have been continuously sold in this packaging. (Id. at 4).
In 2016, CHARMS MINI POPS , which then appeared in the packaging above, held only 0.04% of the lollipop market. (Doc. No. 25-1 at 2). Because Spangler had been gaining market share and was approaching that of Tootsie's, Tootsie developed a strategy in which CHARMS MINI POPS would compete with DUM DUMS. (Doc. No. 36-8, Doc. No. 36-13). Although the price and value competition strategy was introduced in January 2017, the idea of changing the packaging was not considered until May 2017.2
*595(Doc. No. 36-8; Doc. No. 36-12 at 23). By July 2017, the red packaging first appeared in Tootsie materials, and by September 2017, the design had been approved for use. (Doc. No. 36-3 at 4, Doc. No. 36-5, Doc. No. 36-6). Although Tootsie enlisted the services of a third-party consultant, Cassata & Associates, to develop initial designs, none of Cassata's proposed designs were used.3 (Doc. No. 36-1; Doc. No. 36-12 at 17-18). Instead, with knowledge of DUM DUMS trade dress and using no market research, Tootsie completely redesigned the package in only five months. (Doc. No. 36-4; Doc. No. 36-12 at 31-32; Doc. No. 36-13 at 39, 41, 45-46).
Spangler learned of the new CHARMS MINI POPS packaging in March 2018 and sent a cease-and-desist letter on April 3, 2018. (Doc. No. 25-2 at 20; Doc. No. 37-2 at 2-3). Tootsie promptly rejected Spangler's demand on April 12, 2018. (Doc. No. 37-2 at 4-6). After concluding Tootsie intended wide distribution, Spangler filed suit in May 2018. (Doc. No. 1; Doc. No. 37 at 18).
III. EXPERT TESTIMONY
As the trial judge, it is my duty to act as the "gatekeeper" and determine the admissibility of expert testimony. See Kumho Tire Co., Ltd. v. Carmichael ,
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:
(a) the expert's scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied the principles and methods to the facts of the case.
Fed. R. Evid. 702. Ultimately, an expert's testimony will be admissible if it "both rests on a reliable foundation and is relevant to the task at hand." Daubert ,
A. STEVE ULINE
Tootsie moves to exclude the report of Steve Uline on grounds that it will not help the trier of fact, alleging the report states only conclusory opinions "based on no relevant data or reliable methodology." (Doc. No. 24-1 at 15). In part, I agree. But because Uline has the expertise necessary to testify to the product development process through his background and experience in marketing and branding, this section of the report is admitted. (Doc. No. 17-3 at 7-15; Doc. No. 24-6 at 12-13). Conversely, the remainder of his report must be excluded. (Id. at 5-6, 16-24).
The sections to be excluded are based upon unverified methodology and questionable sources rather than " 'a reliable basis in the knowledge and experience of [the relevant] discipline.' " Kumho ,
B. MARK KEEGAN
Like expert testimony, the admissibility of surveys is governed by the Daubert standard. See Leelanau Wine Cellars, Ltd. v. Black & Red, Inc. ,
Keegan's survey, conducted through online interviewing, began with several screener questions to identify the survey population. Tootsie challenges neither these questions nor the survey population.
After performing screener questions and receiving general instructions, respondents were shown the DUM DUMS package and instructed, "Imagine that you are shopping for candy in a store or online. Please consider this product as you would if you encountered it while shopping for candy and are deciding whether to purchase it." (Doc. No. 18 at 47). Although Keegan testified he was "satisfied" respondents viewed the product for a sufficient amount of time to consider the product as instructed, (Doc. No. 24-2 at 9), no evidence was produced to indicate how long respondents viewed this screen before clicking "Next" to continue. This was the only time respondents were able to view the DUM DUMS product during the survey. (Doc. No. 18 at 16).
Before proceeding to the likelihood-of-confusion measurement questions, respondents were directed to a screen that possessed no question but only the instruction, "Again, imagine that you are shopping for candy in a store or online. You will now be shown several additional candy products and asked your opinions about them." (Id. at 48).
After clicking "Next" again, respondents performed two likelihood-of-confusion measurement questions. Both began with an instruction to "think of the first candy product you saw earlier in this survey." (Id. at 17,19, 49, 51) (emphasis in original). The first question asked, "For each candy product shown below, please drag and drop each product into the boxes on the right to indicate whether you believe that the product is put out by the same company that puts out the first product you saw, a different company from the company that puts out the first product you saw, or you don't know ." (Id. at 17, 49) (emphasis in original).
Respondents then proceeded to the second screen and were asked, "For each candy product shown below, please drag and drop each product into the boxes on *597the right to indicate whether you believe that the product is put out by a company that is affiliated, connected, or associated with the company that puts out the first product you saw; a company that is not affiliated, connected, or associated with the company that puts out the first product you saw; or you don't know ." (Id. at 19, 51) (emphasis in original).
The controls pictured above were arranged vertically below each question, along with the experimental stimulus - the red CHARMS MINI POPS bag. (Id. at 18, 20, 49-52). Next to the column of products was the column of three boxes, which were headed with the boldfaced language of the three options for each respective question. (Id. ). For each question, respondents were able to "click on each product to view a larger image." (Id. at 17,19, 49, 51). Additionally, "[t]he presentation order of the products was randomized across all respondents in each question to minimize the potential for order bias." (Id. at 20).
Following these two close-ended questions, the survey "concluded with several standard demographic questions regarding household income and education level, as well as a final attention filter question." (Id. at 21).
1. Controls
In support of exclusion, Tootsie first makes a two-part challenge to the controls used in the survey. Tootsie first claims Keegan should have used a "control group" rather than multiple "control products" in a sample group. But while the use of proper controls is necessary, a control group is not mandated.5 In fact, the Reference Guide on Survey Research , cited by Tootsie, states, "Control groups and, as a second choice, control questions are the most reliable means for assessing response levels against the baseline level of error associated with a particular question." See Shari Seidman Diamond, Reference Guide on Survey Research , in Federal Judicial Center, Reference Manual on Scientific Evidence 359, 401 (3d ed. 2011) (attached as Doc. No. 24-3 at 47). Therefore, Keegan's choice to use controls products rather *598than a control group is not grounds for exclusion.
Turning to Tootsie second control-related challenge, Tootsie argues the control products chosen produced unreliable results since they resembled neither DUM DUMS nor CHARMS MINI POPS . In response, Spangler relies on Keegan's compliance with the Reference Guide on Survey Research , which states,
In designing a survey-experiment, the expert should select a stimulus for the control group that shares as many characteristics with the experimental stimulus as possible, with the key exception of the characteristic whose influence is being assessed....Nor should the control stimulus share with the experimental stimulus the feature whose impact is being assessed.
Diamond, supra , at 399-400 (cited by Doc. No. 39 at 7). This instruction makes the task of selecting control stimuli especially difficult when many characteristics of the experimental stimulus are being assessed. See Jacoby, 92 Trademark Rep. at 928-29 (acknowledging the complexity of the issue of "how to design a 'fair' and proper control when deleting one allegedly confusing (or diluting) element would leave many others intact").
There is a fine line between finding a control which is similar enough to provide accurate results as to likelihood of confusion but not too similar so as to cause confusion itself. Id. at 931. "Strong" controls have more common features with the product at issue but are more likely to cause confusion themselves, resulting in a "conservative estimate of 'net confusion.' " Id. at 935-37. "Weak" controls with fewer common features have the opposite result and are "likely to yield inflated estimates of 'net' confusion." Id. at 932-33. Ultimately, "[p]roper controls will approximate 'background noise,' the amount of confusion existing due to reasons unrelated to similarities in trade dresses. Those controls must sufficiently account for factors legally irrelevant to the requisite confusion, so that confusion 'caused by' similarities in the trade dresses can be isolated." Cumberland , 32 F.Supp.2d at 574-75.
Due in part to the complexity and arbitrariness of control choice, courts have been reluctant to exclude a survey based on inadequate controls alone. See, e.g. , Innovation Ventures, LLC v. N2G Distrib., Inc. , No. 08-cv-10983,
2. Survey Format
Tootsie next challenges the format of the survey. Specifically, Tootsie alleges use of closed-ended questions induced guessing and did not evaluate the likelihood that respondents were influenced by factors other than trade dress.6 Close-ended questions "can be leading and suggestive," but the suggestive "effect can be mitigated through the use of a control question." Procter & Gamble Pharm., Inc. v. Hoffmann-LaRoche Inc. , No. 06 Civ. 0034,
Because Keegan offered a "Don't Know/No Opinion" option for each closed-ended question, I conclude the questions were not unduly suggestive or guess-inducing. (Doc. No. 18 at 17,19, 49, 51). But since Keegan collected no information as to the respondents' rationale, which could have been assessed in an open-ended question, whether respondents were influenced by factors other than trade-dress similarity remains unknown.
Due to the use of weak controls and failure to meaningfully assess background noise, I conclude Keegan's survey must be afforded little to no weight. Because the flaws are not so great as to warrant exclusion, Tootsie's motion to exclude Keegan's survey and report is denied.
IV. PRELIMINARY INJUNCTION
A preliminary injunction is "an extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled to such relief." Winter v. Natural Res. Def. Council, Inc. ,
*600A. LIKELIHOOD OF SUCCESS ON THE MERITS
To prove the first factor, Spangler must demonstrate it has "a strong likelihood of success on the merits." Certified Restoration Dry Cleaning Network, L.L.C. v. Tenke Corp. ,
In this case, Spangler asserts a claim of infringement of unregistered trade dress under section 43(a) of the Lanham Act. See
"Trade dress refers to the image and overall appearance of a product. It embodies that arrangement of identifying characteristics or decorations connected with a product, whether by packaging or otherwise, that makes the source of the product distinguishable from another and promotes its sale."
1. Distinctiveness
The first element of distinctiveness is satisfied if the trade dress "either (1) is inherently distinctive or (2) has acquired distinctiveness through secondary meaning." Two Pesos ,
i. Inherently Distinctive
"A mark or dress can be inherently distinctive if its 'intrinsic nature serves to identify a particular source.' " Abercrombie ,
Applying this holding, I conclude the Dum Dum trade dress elements at issue are not inherently distinctive. While this case is distinguishable from Forney since Spangler details the specific elements at issue, the elements cited are not distinctive to the DUM DUMS packaging. Many candies on the market are packaged in a red bag with white brand lettering, a display window, and a violator indicating the product count that is sometimes yellow, blue, or oval-shaped.8 (Doc. No. 26-1). As such, the DUM DUMS trade dress is not inherently distinctive.
ii. Secondary Meaning
"A non-inherently distinctive mark or dress can have acquired distinctiveness through attachment of secondary meaning, which occurs when, 'in the minds of the public, the primary significance of a [mark or dress] is to identify the source of the product rather than the product itself.' " Abercrombie ,
(1) direct consumer testimony, (2) consumer surveys, (3) exclusivity, length, and manner of use, (4) amount and manner of advertising, (5) amount of sales and number of customers, (6) established place in the market, and (7) proof of intentional copying.
Gen. Motors Corp. v. Lanard Toys, Inc. ,
Spangler concedes there is no consumer testimony or survey evidence available at this time in support of secondary meaning. (Doc. No. 37 at 7). Further, with respect to advertising, Spangler asserts that, while it "lacks the scale necessary for television and mass media advertising," the trade dress in itself should be considered the *602principle vehicle for advertising in support of this factor. (Id. at 9; Doc. No. 25-2 at 21). Because Spangler does not advertise in any way other than by placing its product on a shelf, this factor need not be considered, either. Therefore, four factors remain.
The amount-of-sales and established-place-in-the-market factors weigh in Spangler's favor, since DUM DUMS is "the best-selling lollipop brand in the United States, with significant sales" and strong brand loyalty. (Doc. No. 37 at 9; Doc. No. 25-3 at 2; Doc. No. 25-4 at 12).
Regarding the exclusivity, length, and manner of use, Spangler concedes that it has been using this specific packaging only since 2011 but asserts it "has used red packaging and many of the same graphic elements to market and sell DUM DUMS ® for over 23 years." (Doc. No. 17-1 at 13). Tootsie does not dispute this but contends Spangler has not had exclusive use of this trade dress since that time, pointing to the numerous candies packaged in red bags with windows and violators.9 (Doc. No. 26-1). To rebut Tootsie's argument and prove this factor, Spangler states that while other candy bags possess some of the same elements, the combination of these elements is exclusive to the DUM DUMS trade dress. This is true. But due to the similarities between the DUM DUMS bag and others on the market, I find that though this factor weighs in favor of Spangler due to its length of use10 and possible exclusivity, it must be given little weight.
Finally, to prove intentional copying, Spangler points to the obvious resemblance between the new CHARMS MINI POPS bag and the DUM DUMS bag. (Doc. No. 17-1 at 15). Tootsie offers little in the way of rebuttal, other than to conflate intent to copy with intent to deceive. (Doc. No. 25 at 22). But, as Spangler correctly notes, the intent to copy is distinguishable from the intent to deceive ; secondary meaning requires intent to copy alone. (Doc. No. 37 at 10 (citing Groeneveld Transp. Efficiency, Inc. v. Lubecore Int'l, Inc. ,
Here, Tootsie's Charms Division Director of Marketing testified Tootsie's intent in the redesign was to develop a bag that was better than its primary competitor - DUM DUMS - and ultimately obtain *603market share at the expense of DUM DUMS . (Doc. No. 36-12 at 21, 28-30; see also Doc. Nos. 36-2, 36-3, 36-4, Doc. No. 36-13 at 20, 22-23). Without market research and with full knowledge of the appearance of the DUM DUMS bag, Tootsie chose a package with elements that were nearly identical to that of the DUM DUMS bag. (Doc. No. 36-4; Doc. No. 36-12 at 31-32; Doc. No. 36-13 at 39, 41, 45-46). Tootsie specifically recognized the similarity between the violators' color scheme, had multiple other options, and chose to proceed with the similar design anyway. (Doc. No. 25-1 at 5; Doc. No. 36-13 at 46-47, 61-62). Because Tootsie performed no market research to advise the rebranding strategy and recognized the similarity between the two packages when targeting DUM DUMS ' market share, I conclude there is sufficient circumstantial evidence to find Tootsie acted with the intent to copy.
Balancing the factors, I conclude the amount-of-sales and established-place-in-the-market weigh strongly in Spangler's favor. Further, Tootsie intended, at least in part, to copy Spangler's long-used DUM DUMS trade dress. Therefore, I conclude there is sufficient evidence to support a finding of secondary meaning.
2. Functionality
In civil actions for infringement of unregistered trade dress, "the person who asserts trade dress protection has the burden of proving that the matter sought to be protected is not functional."
But with respect to aesthetic functionality, as is the case here, the burden is "not substantial," Leapers ,
The design features at issue here are: (1) a red bag with the brand in white lettering; (2) a display window in the bag showing suckers within; and (3) a blue and yellow violator indicating the number of lollipops within the bag. None of these three things are essential to packaging or selling lollipops. While the color red may serve a purpose, it is not the only color which may be used to communicate that the package contains lollipops. The same applies to the violator, which could accurately communicate the number of lollipops within the bag in any color. Finally, the window in the bag might serve the purpose of communicating what is contained therein. But the same purpose can be accomplished through other means such as labeling the bag, as evident by the numerous candy bags that do not possess the window. Therefore, because none of these design elements are essential to the packaging or sale of lollipops, I conclude the trade dress is not functional.
3. Likelihood of Confusion
The final element asks whether there is "a likelihood of confusion as to *604the source or origin of the plaintiff's and defendant's products." Abercrombie ,
1) strength of the plaintiff's mark, 2) relatedness of the goods, 3) similarity of the marks, 4) evidence of actual confusion, 5) marketing channels used, 6) likely degree of purchaser care, 7) defendant's intent in selecting the mark, and 8) likelihood of expansion of the product lines.
Abercrombie ,
Three of these factors are not in dispute. Tootsie concedes the following factors weigh in Spangler's favor: "relatedness of the goods" and "marketing channels used." (Doc. No. 25 at 23). Further, both parties agree that the "likelihood of expansion of the product lines" is not relevant here. As such, five factors remain.
i. Strength
"The strength of [trade dress] is a determination of the [trade dress]'s distinctiveness and degree of recognition in the marketplace." Gray v. Meijer, Inc. ,
Considering the numerous other red bags with similar features in the marketplace of candy,11 the DUM DUMS trade dress is not "unique." (Doc. No. 26-1). Further, as discussed above, while DUM DUMS leads the lollipop marketplace, Spangler does not advertise or otherwise promote the product, an act which would "infuse" the trade dress with meaning. See Gray ,
ii. Similarity
"In assessing similarity, 'courts must determine whether a given mark would confuse the public when viewed alone , in order to account for the possibility *605that sufficiently similar marks may confuse consumers who do not have both marks before them but who may have a general, vague, or even hazy, impression or recollection of the other party's mark.' " Maker's Mark Distillery, Inc. v. Diageo N. Am., Inc. ,
Like the defendant in Maker's Mark , Tootsie relies substantially on the argument that the two are distinguishable because of the prominence of the brand name, regardless of the resemblance. More specifically, the " CHARMS " house mark13 occupies a third of the CHARMS MINI POPS bag.
"[T]he presence of a house mark can decrease the likelihood of confusion" and is "a factor to be considered in the evaluation of similarity." Maker's Mark ,
While the appearance of the two bags are undoubtedly similar when viewed side-by-side, that is not the question here. See Progressive ,
iii. Evidence of Actual Confusion
There is no dispute that there have yet to be any actual complaints of confusion. (Doc. No. 25-2 at 8). Instead, to prove actual confusion, Spangler submits as evidence the Squirt survey conducted by Keegan. But as discussed above, this survey is afforded little weight due to the methodological errors. See Leelanau Wine Cellars, Ltd. v. Black & Red, Inc. ,
*606iv. Likely Degree of Purchaser Care
As acknowledged by Tootsie, there is a "general proposition that the average customer is likely not to exercise a high degree of care in purchasing relatively inexpensive and fungible products, such as snack food." Gray ,
v. Tootsie Roll's Intent
Unlike secondary meaning, the "intent to copy" "standing alone has no bearing on the likelihood-of-confusion issue" in a trade dress action. Groeneveld ,
Tootsie does not dispute the fact that it knew of DUM DUMS trade dress when designing the new CHARMS MINI POPS packaging. But "knowledge of a trademark, alone, will not support a finding of intent to confuse if other circumstances show that the defendant believed there was no infringement." Progressive ,
Unlike the junior users in Progressive and AutoZone , whose appearances were different than the senior user,15 Tootsie not only recognized the similarity in the violators' color scheme and proceeded to use the design anyway, but also acted with the intent that the two bags sit side-by-side in the market place. (Doc. No. 25-1 at 5-6; Doc. No. 36-13 at 46-47, 49-50, 61-62). While Tootsie Roll alleges the "Shop & Compare" violator along with the CHARMS name evinces an intent to compete rather than deceive,16 I do not agree. Tootsie *607admits its consumers spend merely seconds picking out the package, basing the decision on recognition, possibly without even reading the package. (Doc. No. 36-13 at 48-49). Further, Tootsie made no attempt to introduce the same competitive pricing scheme with the old yellow package before investing nearly $1 million in the packaging redesign and the new product launch. (Doc. No. 25-1 at 6; Doc. No. 36-13 at 55, 59, 62). Finally, the product redesign process used by Tootsie did not consist of market research and was complete in a quarter of the time Spangler used to redesign the DUM DUMS trade dress years prior. (Doc. No. 17-2 at 3-4; Doc. No. 36-4; Doc. No. 36-12 at 31-32; Doc. No. 36-13 at 39, 41, 45-46).
Considering all of these facts, I conclude the circumstantial evidence suggests Tootsie emulated the DUM DUMS trade dress with the intent of diverting business from DUM DUMS through the similar design. See Daddy's ,
vi. Balancing Factors
The DUM DUMS trade dress is not strong and there is no evidence of actual confusion. But the two companies used the same marketing channels to sell the same product. While the CHARMS MINI POPS trade dress is distinguishable when seen alone, Tootsie intends the product to be sold side-by-side on the shelf with DUM DUMS , which would increase the likelihood of confusion due to the low degree of purchaser care. This intent along with other evidence also supports a conclusion that Tootsie acted with the intent to deceive. Therefore, considering all the factors, I find the evidence suggests the red CHARMS MINI POPS packaging is confusingly similar to the DUM DUMS trade dress.
4. Conclusion
Because a jury could reasonably conclude that Spangler has proven all elements of this claim with the limited evidence available at this early stage in the litigation, "the merits present a sufficiently serious question to justify further investigation." In re DeLorean ,
B. IRREPARABLE HARM
The second factor of the preliminary injunction standard requires the plaintiff show irreparable harm is not merely possible , but likely in the absence of preliminary injunction. Winter ,
Generally, "in the context of an infringement action, a finding of irreparable injury ordinarily follows when a likelihood of confusion or possible risk to reputation *608appears [because] irreparable injury flows both from the potential difficulty of proof of plaintiff's damages, and also from the impairment of intangible values." Wynn Oil Co. v. Am. Way Serv. Corp. ,
Since Spangler identified a method of calculating the monetary value of the damages sought, it is arguable that the policy interests secured by the presumption are not at stake here. But Spangler is correct in stating the loss of control of its reputation by allowing Tootsie to sell the same product in the confusingly similar bag would cause irreparable harm since "loss of control over one's reputation is neither calculable nor precisely compensable." CFE Racing Prods., Inc. v. BMF Wheels, Inc. ,
C. BALANCE OF EQUITIES
When considering the third factor, "courts 'must balance the competing claims of injury and must consider the effect on each party of the granting or withholding of the requested relief.' " Winter ,
In this case, Tootsie alleges a preliminary injunction would cause it substantial harm. (Doc. No. 25-1 at 6-7). First, Tootsie has already invested $1 million in the product redesign and launch and would have to invest more money and time into a second redesign. Second, Tootsie claims a second redesign so soon after the first could damage the company's image as a whole. Spangler challenges the legitimacy of these claims, stating that since CHARMS MINI POPS are already sold in a different package at Wal-Mart, the cost would not be as great as Tootsie alleges. (Doc. No. 37 at 21). I agree.
Tootsie has already designed and is using an alternative bag for one of its three nationwide distributors. (Doc. No. 36-12 at 40, 50-51; Doc. No. 36-13 at 34-35, 59-60).
*609Therefore, while Tootsie may experience some hardship in repackaging the existing inventory into the white Wal-Mart bags, it would not be burdened with a complete redesign. Because Tootsie's burden in transferring inventory to an existing package is substantially less than Spangler's loss of goodwill and reputation, this factor weighs in Spangler's favor.
D. PUBLIC INTEREST
The final factor reviews the public interest at stake in granting the injunction. Spangler alleges a preliminary injunction will halt customer confusion in the marketplace. Tootsie claims the injunction would have a chilling effect on competition. After considering both arguments, I agree with Spangler. As stated above, I do not find merit in Tootsie procompetitive argument in this case of aesthetic packaging trade dress infringement. Competition is not threatened if Tootsie continues to offer CHARMS MINI POPS at the same competitive pricing in the already-existing alternative packaging. Therefore, this final factor weighs in Spangler's favor.
V. CONCLUSION
Because all factors discussed above weigh in Spangler's favor, Spangler's motion for preliminary injunctive relief is granted. Additionally, for the reasons stated above, Tootsie's motion to exclude expert testimony is granted in part and denied in part.
So Ordered.
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