STX, Inc. v. Trik Stik, Inc.

708 F. Supp. 1551, 1988 U.S. Dist. LEXIS 15983, 1988 WL 151296
CourtDistrict Court, N.D. California
DecidedOctober 12, 1988
DocketC 88-1765 FMS
StatusPublished
Cited by28 cases

This text of 708 F. Supp. 1551 (STX, Inc. v. Trik Stik, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STX, Inc. v. Trik Stik, Inc., 708 F. Supp. 1551, 1988 U.S. Dist. LEXIS 15983, 1988 WL 151296 (N.D. Cal. 1988).

Opinion

ORDER

PECKHAM, Chief Judge.

I. INTRODUCTION

Three motions are formally before this court. First, defendant moves to transfer the venue of this action to the Southern District of Florida. The remaining two concern the substantive merits of plaintiffs claims: plaintiffs motion for a preliminary injunction and defendant’s motion for dismissal due to failure to state a claim. 1

II. BACKGROUND

This action concerns kneepads used by skateboarders. 2 The plaintiff contends that defendant appropriated the appearance of its product. It seeks injunctive relief and damages for defendant’s alleged violation of § 43(a) of the Lanham Act, unfair competition, and trademark dilution.

A. The Parties

The plaintiff, STX, Inc. (“STX”), is a California corporation with its principle place of business in Santa Rosa, California. For the past nine years, it has manufactured the leading skateboard kneepad, the “Protector.” The “Protector” has been promoted and sold under the trademark Rector, the most prominent line of skateboard products. A separate entity not party to this action has granted plaintiff exclusive license to use the trademark Rector on STX’s kneepads.

The defendant, Trix Stik, Inc. (“Trik Stik”), is a Florida corporation with its principle place of business in Pampano Beach, Florida. The president of Trik Stik, Mr. Norman Levine, formed the corporation to market a stick-like sports device whose patent is still pending. Declaration of Norman Levine, paragraph 3, dated August 23, 1988. Prior to the formation of Trik Stik, Mr. Levine had distributed the “Protector” kneepad for another Florida-based business. Declaration of Pat McGirr, paragraph 8. The defendant began producing its own skateboard kneepad, “Dr. Bone-Saver,” sometime in early 1988.

Plaintiff now seeks to join as a defendant a third party, NDL Products, Inc. (“NDL”). NDL is the parent corporation and sole stockholder of defendant, Trik Stik. Both are represented by the same attorney, Mr. Eugene Malin. Apparently, NDL now manufactures and sells the “Dr. Bone-Saver” kneepad. See, Second Declaration of Norman Levine, paragraph 4. Mr. Levine currently asserts that defendant Trik Stik transferred the marketing and sale of “Dr. Bone-Savers” to NDL on or before April 1, 1988. Second Levine Declaration, paragraph 7. In a signed declaration dated *1554 June 21, 1988, however, Mr. Levine stated: “Trik Stik, Inc. does its business by selling knee and elbow pads to its dealers by telephone.” First Levine affidavit, paragraph 4. Defendant has not provided any reason for the original mistake. In addition, Plaintiff challenges defendant’s claim that it no longer sells “Dr. Bone-Savers.” Plaintiff’s vice-president and general manager states that he witnessed a Trik Stik booth displaying “Dr. Bone-Savers” for sale at a major sports trade show on September 10, 1988— four months after defendant contends sales ceased. Supplementary Declaration of Am-non Rodan, paragraph 5.

B. The Claim

In this action, plaintiff seeks trademark protection for the “unique appearance” of the “Protector” kneepad. The “Protector’s” product configuration is not the subject of a patent or trademark registration. Plaintiff asserts, however, that defendant has deceitfully replicated the shape, style, and appearance of its kneepad and thus violated § 43(a) of the Lanham Act.

This appearance consists of the particular combination of eight individual features:

(1) the white knee cap on the pad, (2) six brass rivets attaching the cap to the cloth kneepad, (3) bright red fabric, (4) stitching pattern, (5) two blue elastic belts, (6) yellow strap connector connecting the elastic belt to the fabric at the front of the pad, (7) trademark area on top of pad, and (8) rear elastic backing with three-eighths inch horizontal line pattern. 3

Defendant’s Motion to Dismiss, page 2. Defendant’s product, “Dr. Bone-Saver,” contains all eight features. In contrast, at least seven other skateboard kneepads submitted to this court do not contain this particular combination of features. The parties agree that defendant has placed the label “Dr. Bone-Savers” in a prominent place on its product.

The Protector pads are characterized by a unique appearance that includes a distinctively designed white cap that is attached with six brass rivets on the sides of the cap, to a bright red Cordura, or similar material fabric, with a unique stitching pattern. Each pad is attached to the skateboarder with the use of two blue elastic belts which adjust with a hook and loop (Velcro) material. The upper blue elastic strap is attached to the front of the pad with a bright yellow hook and loop (Velcro) strap that extends across the front of the pad in a unique and distinctive manner. Each white cap has a distinctive area in the upper portion of the cap, where the trademark is placed. The rear of the pads contain a stretchable, almost transparent, elastic backing, which has a pattern of horizontal lines, approximately three-eights of an inch apart. Plaintiffs Complaint, Paragraph 5.

The “Protector” is the leading skateboard kneepad, generating over $1,000,000 in annual sales. Plaintiff began marketing the “Protector” nine years ago and considers it the “flagship” of its business. As part of the well-known RECTOR line of products, the “Protector” knee-pads are distributed through a national network of wholesale distributors. Skateboard magazines have used hundreds of photographs of the Protector kneepad, both in paid advertisements and in feature articles. Rodan Declaration, paragraphs 15. Clothing manufacturers have used RECTOR knee-pads in advertisements to further their product’s attractiveness to consumers. Rodan Declaration, paragraph 16.

The defendant introduced “Dr. Bone-Savers” early in 1988 and the product has generated approximately $60,000 in sales. Plaintiff has identified twenty-one stores in California that carry defendant’s product. One distributor of the “Protector” can-celled his sales contract with plaintiff when it began carrying “Dr. Bone-Savers.” The “Protector” sells for $35.95; “Dr. Bone-Saver” sells for approximately half that amount.

To support its contention that the “Protector” is nationally recognized, plaintiff has submitted an extensive market study (the “Ford” study) of consumer associations with skateboard kneepads. Following the interviews with 712 teenage skateboarders, the plaintiff’s study concludes that 65% of the youngsters interviewed associated the plaintiff’s kneepad with its *1555 trademark name on the basis of appearance alone. The survey further concludes that 37% of the interviewees shown the defendant’s product in its original packaging believed it was manufactured by plaintiff.

C. The Proceedings

On May 12, 1988, plaintiff STX filed its complaint against the defendant Trik Stik in the Northern District of California (the “California action”).

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Bluebook (online)
708 F. Supp. 1551, 1988 U.S. Dist. LEXIS 15983, 1988 WL 151296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stx-inc-v-trik-stik-inc-cand-1988.