Stay You, LLC v. H&M Hennes & Mauritz LP

CourtDistrict Court, S.D. New York
DecidedJune 15, 2022
Docket1:20-cv-01396
StatusUnknown

This text of Stay You, LLC v. H&M Hennes & Mauritz LP (Stay You, LLC v. H&M Hennes & Mauritz LP) 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
Stay You, LLC v. H&M Hennes & Mauritz LP, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT USDC SDNY DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED -------------------------------------------------------X DOC #: __________________ STAY YOU, LLC, DATE FILED: 6/15/2022

Plaintiff, v. 20-CV-1396 (KMW) OPINION & ORDER

H&M HENNES & MAURITZ, LP,

Defendant. -------------------------------------------------------X

KIMBA M. WOOD, United States District Judge: Stay You, LLC (“Plaintiff”) filed the above-captioned lawsuit against H&M Hennes & Mauritz LP (“Defendant”) for trademark infringement and unfair competition. Currently before the Court is Defendant’s Motion for Summary Judgment. (Mot., ECF No. 45.) For the following reasons, in accordance with the Order at ECF 77, summary judgment is DENIED.

BACKGROUND Plaintiff and Defendant are both companies that sell casual clothing. (Def. Rule 56.1 Statement ¶¶ 2, 3, ECF No. 50.) Plaintiff sells clothing through its Canada-based website and at in-person events with Plaintiff’s owner and principal, Joey Kidney. (Def. Response to Pl.’s Rule 56.1 Counterstatement of Add’l Material Facts (“Def. Response”) ¶¶ 2, 129, ECF No. 67; Def. Rule 56.1 Statement ¶9.) Defendant sells clothing in stores and online in the United States and Canada. (Pl.’s Counterstatement to Def. Rule 56.1 Statement (“Pl.’s Counterstatement”) ¶¶ 3, 43, 125, ECF No. 58.) In June 2019, Defendant began a one-month promotion of a limited amount of clothing that it characterized as supportive of the LGBTQI+ pride movement, which it referred to as its Pride Collection. (Id. ¶¶ 33–36.) Four of the items in Defendant’s Pride Collection bore the four-word phrase “Stay True Stay You.” (Id. ¶ 41.) Plaintiff has sold clothing items bearing the two-word phrase “Stay You.” (Id. ¶ 2.) Plaintiff owns the registered trademark for “Stay You.” (Id. ¶ 167.)

LEGAL STANDARD Summary judgment should be granted if “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party has the initial burden to show the absence of a genuinely disputed issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). If the moving party’s burden is met, then the nonmoving party must provide evidence to show that there is a genuine, material factual dispute. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248– 49 (1986). “A fact is material if it ‘might affect the outcome of the suit under the governing law.’” Spinelli v. City of New York, 579 F.3d 160, 166 (2d Cir. 2009) (quoting Anderson, 477

U.S. at 248). A dispute of fact is genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” McElwee v. County of Orange, 700 F.3d 635, 640 (2d Cir. 2012) (quoting Anderson, 477 U.S. at 248). In determining whether there are genuine disputes of material fact, the Court must “resolve all ambiguities, and credit all factual inferences that could rationally be drawn, in favor of the party opposing summary judgment.” Miner v. Clinton Cnty., 541 F.3d 464, 471 (2d Cir. 2008) (quoting McCarthy v. Dun & Bradstreet Corp., 482 F.3d 184, 202 (2d Cir. 2007)). Summary judgment is improper “if there is any evidence in the record that could reasonably support a jury’s verdict for the non-moving party.” Am. Home Assurance Co. v. Hapag Lloyd Container Linie, GmbH, 446 F.3d 313, 315 (2d Cir. 2006) (quoting Marvel Characters, Inc. v. Simon, 310 F.3d 280, 286 (2d Cir. 2002)).

DISCUSSION

Plaintiff asserts three claims: 1) federal unfair competition pursuant to the Lanham Act, 15 U.S.C. § 1125(a); 2) common law unfair competition; and 3) common law trademark infringement. (Compl., ECF No. 1.) Defendant moves for summary judgment on all three of Plaintiff’s claims. I. Applicable Law Claims of unfair competition pursuant to federal and common law and claims of trademark infringement pursuant to common law are analyzed under a two-prong test. The first prong looks to whether Plaintiff’s mark is entitled to protection. The second looks to whether Defendant’s use of the mark is likely to cause confusion among consumers as to the origin of the product. Guthrie Healthcare Sys. v. ContextMedia, Inc., 826 F.3d 27, 37 (2d Cir. 2016).

Courts use substantially the same standard for claims of unfair competition pursuant to the Lanham Act, unfair competition pursuant to New York common law, and trademark infringement pursuant to New York common law. Lorillard Tobacco Co. v. Jamelis Grocery, Inc., 378 F. Supp. 2d 448, 456 (S.D.N.Y. 2005) (Conner, J.) (“[Pursuant to New York law,] the elements necessary to prevail on causes of action for trademark infringement and unfair competition . . . mirror the Lanham Act claims.” (internal quotation marks omitted)); see Two Hands IP LLC v. Two Hands Am., Inc., No. 21-CV-3855, 2021 WL 4437975, at *6 (S.D.N.Y. Sept. 28, 2021) (Koeltl, J.). The Court thus considers the three claims together. With respect to the first prong of the test for unfair competition and trademark infringement, a certificate of registration with the U.S. Patent and Trademark Office is prima facie evidence that the mark is protectable. Lorillard Tobacco Co., 378 F. Supp. 2d at 454. In this case, the Court need not address the first prong because it is uncontested that Plaintiff’s mark

is registered and entitled to protection. (Def. Response ¶ 137.) The second prong, likelihood of confusion, turns on whether there is “any likelihood that an appreciable number of ordinarily prudent purchasers are likely to be misled, or indeed simply confused, as to the source of the [products] in question.” Savin Corp. v. Savin Grp., 391 F.3d 439, 456 (2d Cir. 2004) (quoting Mushroom Makers, Inc. v. R.G. Barry Corp., 580 F.2d 44, 47 (2d Cir. 1978)). Defendant makes two arguments in support of summary judgment: 1) that there is no likelihood of confusion between Defendant’s mark and Plaintiff’s mark, and 2) that even if there is a likelihood of confusion, Defendant’s use of the mark is fair use, constituting an absolute defense to liability. (Def. Mem. in Supp. of Mot. for Summ. J. (“Def. Mem.”), ECF No. 48.)

The Court addresses each argument in turn. II. Likelihood of Confusion The material, factual dispute here is whether there is a likelihood of confusion. Likelihood of confusion is a factual question. In the Second Circuit, courts consider the “Polaroid factors” to evaluate whether there is a likelihood of confusion. See Polaroid Corp. v. Polarad Elecs. Corp., 287 F.2d 492, 495 (2d Cir. 1961).

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Related

Spinelli v. City of New York
579 F.3d 160 (Second Circuit, 2009)
McCarthy v. Dun & Bradstreet Corp.
482 F.3d 184 (Second Circuit, 2007)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Arrow Fastener Co., Inc. v. The Stanley Works
59 F.3d 384 (Second Circuit, 1995)

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Bluebook (online)
Stay You, LLC v. H&M Hennes & Mauritz LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stay-you-llc-v-hm-hennes-mauritz-lp-nysd-2022.