Tsiolis v. Interscope Records, Inc.

946 F. Supp. 1344, 1996 U.S. Dist. LEXIS 16827, 1996 WL 657830
CourtDistrict Court, N.D. Illinois
DecidedNovember 8, 1996
Docket96 C 6318
StatusPublished
Cited by9 cases

This text of 946 F. Supp. 1344 (Tsiolis v. Interscope Records, 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
Tsiolis v. Interscope Records, Inc., 946 F. Supp. 1344, 1996 U.S. Dist. LEXIS 16827, 1996 WL 657830 (N.D. Ill. 1996).

Opinion

OPINION AND ORDER

NORGLE, District Judge:

May a band named “Aftermath” keep other musicians from using the word “Aftermath” for the name of an album or record label where the bandleader holds a registered trademark to the word “Aftermath”? Not at this early juncture. Plaintiffs motion for preliminary injunction is denied. All parties shall appear for trial on December 10, 1996 at 10:00 a.m.

I.

This is an action for unfair competition, federal and common law trademark infringement, deceptive trade practices and trademark dilution. It arises out of Defendants’ present and threatened use of the name “Aftermath” in connection with their promotion and distribution of popular music works. Plaintiff Kyriakos Tsiolis’ (“Tsiolis”) Complaint includes the following counts and alleged causes of action: Count I, Federal Trademark Infringement in violation of 15 U.S.C. § 1114(1); Count II, Unfair Competition under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); Count III, Common, Law Trademark Infringement; Count IV, Deceptive Trade Practices in violation of the Illinois Consumer Fraud and Deceptive Trade Practices Act, 815 ILCS § 505/1; and Count Y, Antidilution in violation of the Illinois Antidilution Statute, 765 ILCS § 110/1.

A Aftermath: The Band

Tsiolis, also known as “Charlie,” organized a “heavy metal” musical group in 1985. In 1986, the band members agreed upon a name *1346 for the band, “Aftermath” (“the Band”). The Band recorded an initial “demo” cassette tape later in 1986, self-titled “Aftermath,” of which the Band distributed approximately one-hundred copies to local heavy metal concert-goers at no charge. In 1987, the Band recorded and released a second demo tape, named “Killing The Future,” of which the band distributed approximately one-thousand copies. In 1989, the Band recorded and released a third demo tape, titled ‘Words That Echo Fear.” The Band distributed approximately 2,500 copies of the ‘Words That Echo Fear” album. The Band both dispensed free and sold the copies of the latter two demo tapes.

In 1991, Tsiolis applied for, and obtained, an Illinois Trade Name Registration for the name “Aftermath.” In 1992, the United States Patent and Trademark Office (“USP-TO”) issued to Tsiolis Registration Number 1,692,053 for the Service Mark “Aftermath.” The USPTO registered the mark for Tsiolis’ use in connection with musical performances, audio recordings and productions.

At its inception, the Band attempted to market itself as an “underground band,” one which rejects mass appeal and prides itself on having a small, local following. However, with increaséd media exposure of the ‘Words That Echo Fear” demo tape, the Band received offers for recording contracts from several entertainment companies, also known as record labels, which produce and market various musical artists. The Band entered into a contract with Big Chief Records (“Big Chief’) in New York City, which had distribution arrangements through Warner Brothers Records. Big Chief contracted to record, produce, and market an album named “Eyes of Tomorrow,” with an option to similarly produce and market subsequent records. Unfortunately for the Band, Big Chief went bankrupt in 1991, prior to the completion of recording the album. Instead of attempting to sign with another record label, the Band chose to fund the completion of the album. The Band members spent approximately $4,500 of their own funds to buy the master of the recording for “Eyes of Tomorrow,” and Tsiolis and his brother then formed their own record label, Zoid Recordings. Tsiolis then released the “Eyes of Tomorrow” compact disc (“CD”) under the Zoid Recordings name in October 1994. Thereafter, Tsiolis and the Band entered into a distribution deal for the “Eyes of Tomorrow” album with a commercial distributor, Feedback Distribution, through its in-house label, Thermometer Sound Surface (“Feedback/Thermometer”). Feedback/Thermometer reissued “Eyes of Tomorrow” in both CD and cassette tape versions.

A computer printout generated by Sounds-can, Inc. (“Soundsean”) shows that, as of October 13, 1996, retailers in this country sold 164 copies of the “Eyes of the Tomorrow” album, including 143 CDs and 21 cassette tapes. Of the total number of copies sold, 132 (or more than 80%) were sold in Chicago. Soundsean compiles its information based on an electronic reading of computer bar codes as sales are made in retail outlets. However, Tsiolis notes that the sale of albums in outlets not equipped with computer equipment, or not provided with Soundsean computer instruments, does not register on the printout. Tsiolis states that many of the retail stores selling the “Eyes of Tomorrow” CD are not Soundscan-equipped.

In addition to the distribution of records under the name Aftermath, the Band has also given at least 33 live performances since its inception, or an average of three times per year, including three years at the Milwaukee Metal Fest, the largest annual festival featuring “metal” music. However, the Band has yet to perform live in 1996, and performed only three times in 1995. In connection with the promotion and sale of its CDs and cassette tapes, the band directly or through its distributors placed advertisements and prepared promotional items such as t-shirts, bumper stickers and posters on which the name Aftermath is prominently displayed. Through the sale of albums and promotional material, the band generated slightly less than $50,000, or an average of $5,000 per year. The Band’s largest grossing musical performance earned it $600.

Tsiolis and his brother testified that the band and its members spent their own money for the promotion of the band and its work, including $25,000 for musical instru *1347 ments and equipment, a promotional trip to Europe that cost approximately $28,000 in costs and expenses, as well as other expenditures. However, Tsiolis failed to proffer receipts or any other evidence to support his testimony regarding these expenditures.

Though the band has yet to reach mainstream fame, the band has attracted media attention. Its demo tapes were noted or discussed at least over forty times in various magazines directed to music fans (and at least once in the Chicago Tribune) as well as over 120 times in domestic and international “Fanzine” newsletters, which are both published and distributed by fans of the Band. Its “Eyes of Tomorrow” album received critique and review approximately seventy times in music magazines concentrating on the heavy metal music genre, as well as in the Chicago Sun-Times, the Chicago Tribune and the Chicago Reader and foreign publications. At the hearing, counsel for Defendants repeatedly objected on relevance grounds to evidence that Tsiolis is well-known outside of the United States. It is well-settled, however, that the Lanham Act reaches all commerce that Congress can regulate, and that Congress “has the power to prevent unfair trade practices in foreign commerce by citizens of the United States, although some of the acts are done outside the territorial limits.” Scotch Whisky Ass’n v. Barton Distilling Co.,

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Bluebook (online)
946 F. Supp. 1344, 1996 U.S. Dist. LEXIS 16827, 1996 WL 657830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tsiolis-v-interscope-records-inc-ilnd-1996.