Taj Mahal Enterprises, Ltd. v. Trump

742 F. Supp. 892, 15 U.S.P.Q. 2d (BNA) 1641, 1990 U.S. Dist. LEXIS 14526, 1990 WL 108848
CourtDistrict Court, D. New Jersey
DecidedJune 4, 1990
DocketCiv. A. 90-1503 (JFG)
StatusPublished
Cited by3 cases

This text of 742 F. Supp. 892 (Taj Mahal Enterprises, Ltd. v. Trump) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taj Mahal Enterprises, Ltd. v. Trump, 742 F. Supp. 892, 15 U.S.P.Q. 2d (BNA) 1641, 1990 U.S. Dist. LEXIS 14526, 1990 WL 108848 (D.N.J. 1990).

Opinion

GERRY, Chief Judge.

Plaintiff, Taj Mahal Enterprises, Ltd., brought this action against defendants, Donald J. Trump, Trump Taj Mahal Associates Limited Partnership and Trump Taj Mahal, Inc., for service mark infringement and unfair competition under the Lanham Act, 15 U.S.C. § 1051 et seq. Plaintiff has a registered mark for the name TAJ MA-HAL, and it alleges that defendants have infringed this mark by naming their new casino and hotel in Atlantic City, New Jersey, the TRUMP TAJ MAHAL. Plaintiff has moved for a preliminary injunction to stop defendants’ continued use of the term TAJ MAHAL, and a hearing on that motion was held on May 17, 1990 in this court.

I. Findings of Fact

Plaintiff opened an Indian restaurant in 1965 and named it the TAJ MAHAL. This restaurant has been located at 1327 Connecticut Avenue, N.W., in Washington, D.C., for the past 25 years. It was initially owned and operated by plaintiff, but now plaintiff leases the restaurant to C & M, Inc., which currently operates it. C & M, Inc. has operated the restaurant since May 1, 1984, and C & M, Inc. is now solely responsible for the advertising and promotion of the TAJ MAHAL restaurant, as well as for hiring and managing the employees and purchasing, preparing and serving the food. C & M Inc. pays $4,500 rent plus property taxes to plaintiff each month.

Plaintiff is a corporation owned entirely by Raj Mallick and incorporated under the laws of the District of Columbia. Mr. Mal-lick owns other establishments, including ocher restaurants and hotels, in the District of Columbia, California, Pennsylvania and Virginia. There is no evidence that any of Mr. Mallick’s other properties is or has been named the TAJ MAHAL. In fact, plaintiff has never done business outside of the District of Columbia. Plaintiff’s sole current business is the collection of rent for the TAJ MAHAL restaurant. On June 23, 1981, the United States Patent and Trademark Office granted plaintiff registered service mark number 1,158,610 for the provision of restaurant services under the name TAJ MAHAL.

The TAJ MAHAL restaurant serves exclusively Indian cuisine, and it is located on the second floor of a two story building in a commercial section of Washington. In order to get to the restaurant, a patron must climb a flight of stairs with 25 steps. The restaurant seats approximately 74 people at a given time, and it employs six people. Its gross sales are approximately $300,000 per year or $830 per day. The TAJ MAHAL restaurant advertises by us *894 ing its name on its napkins and menus, handbilling at subway stations in Washington, and purchasing space in the Yellow Pages, as well as by placing advertisements in local Indian-American and Pakistani-Ameriean newspapers and in local hotel patron guides.

At least 24 other restaurants in the United States currently are named TAJ MA-HAL, including two in New Jersey and two in the metropolitan New York area. Two such TAJ MAHAL restaurants, located in Colonia, New Jersey and Seattle, Washington, have used that name for 14 years. Prior to February 1990, plaintiff never tried to stop any other restaurant from using the name TAJ MAHAL. At least 70 businesses in the United States have used the name TAJ MAHAL, and plaintiff never sought to stop any of them from using its name.

Mr. Mallick, plaintiffs owner, admits that he knew about the defendants’ new establishment, the TRUMP TAJ MAHAL CASINO-RESORT, as early as September 1989. Mr. Mallick visited Atlantic City in August-October 1989 and saw the building which is now the TRUMP TAJ MAHAL. He denies seeing the name on the building. In early February 1990, defendants attempted to buy the registered TAJ MA-HAL service mark from plaintiff. On February 22, 1990, plaintiff's attorney wrote defendants and requested that they cease using the name TAJ MAHAL for their new hotel and casino project.

The facility which now bears the name TRUMP TAJ MAHAL was first named the TAJ MAHAL in the Spring of 1986 before it was purchased by defendants. The previous owners, Merv Griffin and Resorts International, spent over $2 million to promote this project, and they sold the facility to defendants sometime in 1987 or 1988. Signs bearing the name TAJ MAHAL were placed on the facility during its construction, at least as early as 1988. The TRUMP TAJ MAHAL cost hundreds of millions of dollars to build, and its estimated operating costs are $1.2 million per day. Defendants opened the hotel and casino on April 2, 1990. They estimate that the property’s daily net income will at least equal the daily operational costs.

The TRUMP TAJ MAHAL is the tallest building in New Jersey at 51 stories, and it contains 4.2 million square feet of space, 1250 guest rooms, a 120,000 square foot casino, and 175,000 square feet of meeting and conference rooms. The most expensive suite, the Alexander the Great Suite, costs $10,000 per night. The TRUMP TAJ MAHAL employs over 7,000 people. Defendants spent $3.2 million advertising the project between November 1988 and April 2, 1990. The signs which currently display the name TRUMP TAJ MAHAL were placed on the building in October 1988, and they cost several thousand dollars per letter. Moreover, the name TAJ MAHAL appears on the four faces of the building, and the name TRUMP TAJ MAHAL appears literally thousands of times throughout the hotel and casino. For instance, this name is found on each of the 3,008 slot machines in the casino. The cost of the signs bearing the names TAJ MAHAL or TRUMP TAJ MAHAL is $11 million.

II. Conclusions of Lavo

We have jurisdiction over this matter under 28 U.S.C. §§ 1331 and 1338(a) as plaintiff alleges causes of action under 15 U.S.C. §§ 1114(1) and 1125(a).

A preliminary injunction may be ordered pursuant to Fed.R.Civ.P. 65. In order to obtain a preliminary injunction, the moving party must demonstrate by sufficient evidence: (1) a reasonable likelihood of success on the merits; (2) immediate and irreparable harm by denial of the requested relief; (3) that granting preliminary relief will not result in a greater harm to the non-moving party; and (4) that granting preliminary relief will be in the public interest. Valentine v. Beyer, 850 F.2d 951, 955 (3d Cir.1988); ECRI v. McGraw-Hill, Inc., 809 F.2d 223, 226 (3d Cir.1987). To satisfy the first criterion for a preliminary injunction, the moving party need not prove his right to a judgment after trial beyond all doubt, but he has the burden to make a prima facie case showing a reasonable likelihood that he will prevail on the merits. *895 Oburn v. Shapp,

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742 F. Supp. 892, 15 U.S.P.Q. 2d (BNA) 1641, 1990 U.S. Dist. LEXIS 14526, 1990 WL 108848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taj-mahal-enterprises-ltd-v-trump-njd-1990.