Thomas & Betts Corporation and Thomas & Betts Holdings, Inc. v. Panduit Corporation

138 F.3d 277
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 30, 1998
Docket96-3914, 97-2108
StatusPublished
Cited by149 cases

This text of 138 F.3d 277 (Thomas & Betts Corporation and Thomas & Betts Holdings, Inc. v. Panduit Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas & Betts Corporation and Thomas & Betts Holdings, Inc. v. Panduit Corporation, 138 F.3d 277 (7th Cir. 1998).

Opinion

BAUER, Circuit Judge.

In this case, plaintiffs Thomas & Betts Corporation and Thomas & Betts Holdings, Inc. appeal from the district court’s grant of summary judgment to the defendant. The plaintiffs advance two primary theories with respect to Count I of their complaint, which alleged unfair competition on the part of defendant Panduit Corporation: 1) the district court erred in finding that a product configuration disclosed in a utility patent is not entitled to trademark protection; and 2) questions of fact exist which preclude the district court’s grant of summary judgment. With respect to Count II of the complaint, which sought cancellation of one of the defendant’s trademarks, the plaintiffs allege that the district court erroneously found that no questions of fact exist. Because we find that Thomas & Betts’ contentions are meritorious, *282 we reverse the judgment of the district court and remand this case for trial.

BACKGROUND

This case is presently bn its third sbjoum to the court of appeals. On its first sally, we denied the defendant’s motion to stay a preliminary injunction pending an appeal on the merits. Thomas and Betts Corp. v. Panduit Corp., 34 U.S.P.Q.2d 1607 (7th Cir.1994). During the next visit, we reached the merits of the defendant’s appeal from the grant of a preliminary injunction to the plaintiffs, reversing the district court’s decision because we found that the plaintiffs had not demonstrated a reasonable likelihood of success on the merits. Thomas & Betts Corp. v. Panduit Corp., 65 F.3d 654, 664 (7th Cir.1995), cert. denied, 516 U.S. 1159, 116 S.Ct. 1044, 134 L.Ed.2d 191 (1996) (hereinafter “T & B /”). In our present rendezvous, the plaintiffs appeal from the district court’s grant of summary judgment to the defendant on all counts of their complaint. While we assume familiarity with our previous opinions, we will borrow from them in the following brief summary of pertinent facts.

The parties in this case are the nation’s largest suppliers of cable ties, which, as then-name implies; are small nylon belts used to bundle wires. Cable ties consist of a strap terminating at one end in a tapered tail and at the other in a head which incorporates a horizontal slit and locking mechanism. The strap is looped around the group of wires to be secured and the tail is inserted through the slit in the head and pulled tight, triggering the locking mechanism and prohibiting reverse movement of the tail. The result is a tight bundle of wires with only the thickness of the head (which is made as small as possible to avoid snagging) protruding above the strap and bundled wires.

Cable ties feature either a one-piece or a two-piece locking mechanism. While we need not wade too heavily into the technical aspects of these mechanisms (a detailed explanation is provided in T & B I, 65 F.3d at 656), a brief description will further the understanding of this case. In a onepiece system, a nylon pawl is molded into the head of the cable tie, protruding into the slit in the head through which the strap of the tie passes. The pawl acts as a one-way ratchet, catching on ridges molded into the strap and preventing the strap from slipping out of the slit once the strap is tightened around the bundle of wires. At issue in this ease is the two-piece tie, in which the nylon pawl is replaced by a metal barb inserted into the head of the tie. The metal barb sits in a slot transverse to the slit for the strap,- and when the strap is pulled taut through the slit, the tension on the strap causes the barb to flex, bite into the nylon strap, and hold tight.

Plaintiff Thomas & Betts Corporation (“T & B”) obtained a patent on the two-piece cáble tie in 1965 (referred to throughout this opinion as. the “Schwester patent”), which remained in effect until its expiration in 1982. The Schwester patent disclosed a two-piece cable tie with an oval head, metal barb, and transverse slot. While the slot, barb, and head portions of the cable tie were part of the claims of the Schwester patent, the oval shape was not; it was illustrated in a drawing of the cable tie and mentioned in the patent’s specifications. At present, T & B markets a two-piece cable tie under the trademark “TY-RAP” which is essentially identical to that disclosed in the Schwester patent. In about 1994, defendant Panduit Corporation (“Panduit”) began to produce a cable tie similar to that of T & B, sold under the trademark “BARB-TY.” Panduit’s product is substantially similar in appearance to that produced by T & B.

In response, T & B filed suit in the Northern District of Illinois on April 29, 1994, seeking a permanent injunction against Pan-duit’s manufacture of the BARB-TY product and asserting the following claims: 1) trade dress infringement pursuant to 15 U.S.C. § 1125(a); 2) unfair competition under 15 U.S.C. § 1125(a) and withdrawal of Panduit’s “BARB-TY” trademark registration under 15 U.S.C. § 1064(3); 3) common law unfair competition; 4) violations of the Illinois Consumer Fraud and Deceptive Business Practices Act and the Uniform Deceptive Trade Practices Act; and 5) violation of the Illinois Anti-Dilution Act. T & B also sought a preliminary injunction against Panduit. The parties consented to proceed before a magis-' *283 trate, and Magistrate Judge Ronald Guzman held an evidentiary hearing on T & B’s motion for a preliminary injunction on July 19, 20, and 21, 1994. On December 19, 1994, Judge Guzman found in favor of T & B and entered a preliminary injunction against Pan-duit’s copying of T & B’s cable tie. Thomas and Betts Corp. v. Panduit Corp., 1994 WL 714619 (N.D.Ill.1994). Panduit appealed, and this court reversed. T & B I, 65 F.3d 654.

The case was subsequently transferred to Magistrate Judge Morton Denlow, and Pan-duit filed a motion for summary judgment on March 26, 1996. T & B filed its response on April 23, 1996, and oral argument was held on July 11. On August 15, 1996, Judge Denlow granted Panduit’s motion with respect to Counts I, III, IV, and V of T & B’s complaint. Thomas & Betts Corp. v. Panduit Corp., 935 F.Supp. 1399 (N.D.Ill.1996). After further briefing, the district court granted Panduit’s motion with respect to Count II on October 17, 1996. Thomas & Betts Corp. v. Panduit Corp., 940 F.Supp. 1337 (N.D.Ill.1996). Final judgment was entered in favor of Panduit on the same day. On November 14, .1996, T & B filed a timely notice of appeal, and the ease is now properly before this court.

DISCUSSION

As a preliminary matter, we note that while the district court granted summary judgment to Panduit on all five counts of T & B’s complaint, T & B is only appealing the district court’s judgment on Counts I and II, the federal law claims brought by T & B.

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