Spex, Inc. v. Joy of Spex, Inc.

847 F. Supp. 567, 31 U.S.P.Q. 2d (BNA) 1019, 1994 WL 110053, 1994 U.S. Dist. LEXIS 1912
CourtDistrict Court, N.D. Illinois
DecidedFebruary 17, 1994
Docket93 C 3762
StatusPublished
Cited by31 cases

This text of 847 F. Supp. 567 (Spex, Inc. v. Joy of Spex, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spex, Inc. v. Joy of Spex, Inc., 847 F. Supp. 567, 31 U.S.P.Q. 2d (BNA) 1019, 1994 WL 110053, 1994 U.S. Dist. LEXIS 1912 (N.D. Ill. 1994).

Opinion

MEMORANDUM OPINION

BRIAN BARNETT DUFF, District Judge.

On May 21, 1993, Spex, Inc. (“Plaintiff’) filed a complaint against The Joy of Spex, Inc., and Craig Scott individually and d/b/a Craig Scott Optician, Inc. (“Defendants”) in the Circuit Court of Cook County, Illinois, that was removed to this court on June 23, 1993 (“Complaint”). The six-count Complaint seeks injunctive and other relief from the Defendant for violations of (1) section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (2) the Deceptive Trade Practices Act, 815 ILCS 510/2; (3) The Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2; (4) the Anti-Dilution Act, 765 ILCS 1035/15; and for (5) Theft of Business; and (6) Common Law Fraud.

On July 1, 1993, the Plaintiff moved for a Preliminary Injunction prohibiting the Defendants from using the word, “Spex” or any misspelling or homonym thereof in connection with their business. Subsequently, the Defendant moved to consolidate the Preliminary Injunction hearing with a final hearing on the merits for injunctive relief only. 1 This Court granted that motion and, accordingly, conducted a bench trial on July 14, 1993 through July 19,1993. On July 14,1993, the Court decided that the issues warranted further consideration and took the ease under advisement, declining to issue any injunction against the Defendant. Since that time, this Court has considered the evidence and the credibility of the witnesses, the testimony, exhibits, memoranda of law, arguments of counsel, and each party’s proposed findings of fact and conclusions of law. Now fully advised in the matter, the full trial on injunctive relief having been concluded, this Court reports the following findings.

FINDINGS OF FACT

1. Plaintiff, Spex, Inc., has been incorporated under Illinois law since 1979. Its principal place of business is in Chicago, Illinois.

2. Defendant, The Joy of Spex, Inc., has been incorporated under Illinois law since December 1991, with its principal place of business also in Chicago, Illinois. The Joy of Spex, Inc. has had one store located at 3341 North Broadway in Chicago since its incorporation.

3. Defendant, Craig Scott, is the President and 50% owner of the Joy of Spex, Inc. Scott is also the President of Craig Scott Optician, Inc., an eyewear and eye care establishment in Illinois. Michael Sauer, the other 50% owner of The Joy of Spex, Inc., has managed that corporation’s 3341 North Broadway store since January, 1992.

4. Both the Plaintiff and the Defendant sell lenses and “high end” fashion quality eyewear frames. “High end” fashion eyewear does not mean, “expensive,” but connotes exclusive, quality eyewear. Although their inventories are not identical, the Plaintiff and the Defendant carry many of the same brands of “high end” eyewear.

5. Allan Weiner is the owner of Spex, Inc. Spex, Inc. has four stores located at Skokie, Illinois, 680 North Lake Shore Drive, 1800 North Clybourn Street and 700 North Michigan Avenue. The downtown Skokie store opened in 1980, the North Lake Shore Drive store opened in 1983, the 1800 North Clybourn Street store in 1987, and the North Michigan Store in 1991. Each store has operated under the name, “Spex, Inc.” since its opening. Beginning in 1983, Spex, Inc. *572 started to concentrate on exclusive, quality fashion eyewear.

6. Weiner chose his company’s trade name after overhearing a group of young men talking about their “specs” and seeing a picture of a store in Boston, Massachusetts, called “Spex.” He incorporated his business under the name Spex, Inc. after determining that this trade name was not being used in Illinois.

7. Defendant Scott chose the name, “The Joy of Spex, Inc.” because it is a parody of a title of a book called “The Joy of Sex.” Scott thought of this name sometime between 1983 and 1985.

8. The Joy of Spex, Inc. opened at North Broadway in March 1992. At the time The Joy of Spex was incorporated, Scott was aware of the presence of Spex, Inc. in Chicago. It was the parody, however, and not the name, “Spex Inc.” which prompted him to choose the name, “The Joy of Spex, Inc.” Before incorporating, Scott called the State of Illinois which informed him that he was free to use “The Joy of Spex” as a business name.

9. The “Joy of Spex, Inc.” logo, which was personally selected by Scott, consists of the words, “The Joy of’ separated by a pair of eyeglasses from the words, “Spex, Inc.,” that appear immediately below the eyeglasses.

10. The word “spex,” which cannot be found in the dictionary, is a homonym for “specs,” which does appear in standard American dictionaries. The definition of “specs” includes “specifications”; when that word is used with respect to eyeglasses, however, it means “spectacles.” Another homonym for “spex” is “specks,” which can refer to small particles of dust or other materials.

11. A significant number of distributors and retailers selling optical frames and products available throughout the Chicago area and nationally use the word “Specs” and “Spex” in their names for eyewear. Telephone book listings from throughout the nation list several optical businesses that use the words “specs” or (less frequently) “spex.”

12. Spex, Inc. regularly runs adds in the Chicago newspaper, The Reader. The Plaintiff has also advertised in The Chicago Tribune, The Chicago Sun-Times, and in national and regional publications such as Playboy, Elle, and North Shore magazines. Weiner also promotes the “Spex, Inc.” trade name through such means as a toll-free telephone number, “1-800-SpexInc” and by having the last four telephone number digits of his four stores spell the word, “Spex.” Wiener promotes the Spex, Inc. trade name in his role as a consultant to other “high-end” eyewear establishments in a 10-state area.

13. Spex, Inc. targets its advertising to attract affluent customers with discriminating and sophisticated tastes. Nevertheless, 75-80% of Spex, Inc.’s business comes from ophthalmologists who refer business to that company.

14. 3-5% of The Joy of Spex, Inc.’s business comes from physician referrals, and the vast majority of its business comes directly from customers. The Joy of Spex, Inc. attempts to attract business specifically from the homosexual community through advertisements in publications such as Lamda and Windy City Times which are targeted to that community. In March 1992, the Defendants also began advertising in The Reader.

15. About 10% of Spex, Inc.’s sales are interstate. The Joy of Spex, Inc. has significantly fewer out-of-state customers, but occasionally ships products to customers who live in other states and Canada.

16. On approximately four occasions, The Joy of Spex Inc. advertised discounts on frames in The Reader. This was problematic because suppliers for the frames so advertised do not permit retailers to offer discounts.

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847 F. Supp. 567, 31 U.S.P.Q. 2d (BNA) 1019, 1994 WL 110053, 1994 U.S. Dist. LEXIS 1912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spex-inc-v-joy-of-spex-inc-ilnd-1994.