Vista India v. RAAGA, LLC

501 F. Supp. 2d 605, 2007 U.S. Dist. LEXIS 57398, 2007 WL 2257665
CourtDistrict Court, D. New Jersey
DecidedAugust 7, 2007
DocketCivil Action 07-1262 (HAA)
StatusPublished
Cited by5 cases

This text of 501 F. Supp. 2d 605 (Vista India v. RAAGA, LLC) 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
Vista India v. RAAGA, LLC, 501 F. Supp. 2d 605, 2007 U.S. Dist. LEXIS 57398, 2007 WL 2257665 (D.N.J. 2007).

Opinion

OPINION AND ORDER

ACKERMAN, Senior District Judge.

This matter comes before the Court on Plaintiff Vista India’s (“Vista”) motion (Docket No. 3) for a preliminary injunction to enjoin Defendant Raaga, LLC (“Raa-ga”) from utilizing the RAAGA mark, particularly in connection with Defendant’s website raaga.com. On July 12, 2007, this Court held a hearing on the instant motion and reserved decision. For the following reasons, Plaintiffs motion is DENIED.

A. Background

Plaintiff Vista is the owner of “Raaga Entertainment Superstores,” which is purportedly the “largest retailer of Indian and other South Asian music within the United States.” 1 (Compl. at ¶ 10.) Vista is also an “authorized distributor for Sony Music India, Tips, RPG, and Yashraj, major Indi *609 an music distributors.” (Id. at ¶ 11.) The Complaint states that, “[a]t its height” there were “six locations throughout the United States-New Jersey, New York, Pennsylvania, Missouri and California.” 2 (Id. at ¶ 15.)

Defendant Raaga owns and operates the Internet site “raaga.com” (hereinafter the “website”), through which it is engaged in the business of providing Indian music via downloads and “streaming” technology. 3 Raaga has been operating the website-accessed by customers and subscribers in the United States and worldwide-since 1998. 4 Raaga is licensed to stream music by “Broadcast Music, Inc., the South India Music Companies Association (with 40 plus member labels), Vel Records, Aditya Music, TriStar Music, and others.” 5 (Raaga Br. at 3.) Raaga’s founder, Senthil Venka-taramani, asserts that he first became aware of Vista’s stores “in or around 2000, while living in California. At that time, Mr. Venkataramani had been using the RAAGA mark for approximately 3 years or more.” (Id. at 4.) At the hearing, however, he testified that the first time he became aware of a Vista store was in 2002. (Hearing Tr. 134:10-17.)

On January 11, 2005, Raaga filed two trademark applications with the United States Patent & Trademark Office (“USP-TO”), one for the word mark RAAGA and one for the word mark RAAGA with stylized letters. Both applications sought protection of the mark in International Class 38, for “streaming of audio, music material on the Internet” and in International Class 41, for “entertainment services, namely providing prerecorded music, information in the field of music, videos and movies and commentary and articles about music, video, and movies all on-line via a global computer network.” 6 The examining at *610 torney at the USPTO has refused registration of the RAAGA mark on the grounds that the mark is “ ‘merely descriptive’ of the music-related services.” (Raaga Br. at 5 (citing Venkataramani Decl. at ¶ 12, Exs. C, H).)

On July 14, 2006, more than 18 months after Raaga filed its trademark applications, Vista filed an application with the USPTO to register the RAAGA mark under International Class 41 for “entertainment in the nature of visual and audio performances, and musical, variety, news, and comedy shows, entertainment services namely providing pre-recorded music and movies for retail.” (Venkataramani Deck, ¶ 16, Ex. L.) Vista’s application has been suspended pending the applications filed by Raaga. (Id.) In November and December 2005, Vista contacted Raaga to discuss the possibility of Vista acquiring Raaga, with Vista allegedly offering $100,000, which Raaga refused. As Suri Gopalan, the owner and President of Vista, testified at the hearing, “we needed to go on the internet. The only way [Vista’s] stores could exist was on the internet. People were downloading or streaming] on the internet. So selling CDs was becoming harder.” (Hearing Tr. 69:24 to 70:2.) After these discussions in late 2005, Raaga had no communication with Vista until the commencement of this action. However, Raaga asserts that Vista has “threatened litigation against several of the entities with which Raaga has licenses ... and provided them copies of the complaint in this case.” (Raaga Br. at 7.) Notably, Vista does not own any copyrights over the works on Raaga’s website. (See Hearing Tr. 81:7-12.) 7 Nevertheless, Raaga declares that Vista’s threats have apparently had some effect because two companies “with whom Raaga has been negotiating for a license, have indicated that they will not issue a license to Raaga as a result of the statements and threats from Vista.” (Id.)

On March 16, 2007, Vista filed a five-count Complaint alleging common-law trademark infringement and unfair competition, as well as federal unfair competition against Raaga. 8 On April 12, 2007, Vista filed a motion for a preliminary injunction seeking to enjoin Raaga from using the “Raaga” mark, particularly in connection with Raaga’s Internet site “raaga.com.” On April 24, 2007, this Court issued an Order to Show Cause directing Raaga to respond to Vista’s motion for a preliminary injunction and scheduling a hearing on the matter for May 23, 2007. That hearing was postponed until July 12, 2007. On May 10, 2007, Raaga filed its Answer along with five counterclaims. 9

*611 B. Analysis

Four factors must be satisfied for a preliminary injunction to issue:

[1] the likelihood that the applicant will prevail on the merits at final hearing; [2] the extent to which the plaintiffs are being irreparably harmed by the conduct complained of; [3] the extent to which the defendants will suffer irreparable harm if the preliminary injunction is issued; [4] and the public interest.

Opticians Assoc. of Am. v. Indep. Opticians of Am., 920 F.2d 187, 191-92 (3d Cir.199) (citation omitted). “All four factors should favor preliminary relief before the injunction will issue.” S & R Corp. v. Jiffy Lube Int’l., Inc., 968 F.2d 371, 374 (3d Cir.1992). It has often been stated that a court considering a motion for a preliminary injunction must adhere faithfully to the aphorism that “to doubt is to deny.” Madison Square Garden Corp. v. Braddock, 90 F.2d 924, 927 (3rd Cir.1937); see also Campbell v. City of New Kensington, No. 05-0467, 2006 WL 3308362, at *1 (W.D.Pa. Oct 16, 2006); Bernstein v. Goldsmith, No. 05-4702, 2006 WL 1644849, at *4 (D.N.J. Jun 05, 2006).

1. Vista Does Not Have a Reasonable Probability of Success on the Merits for Its Lanham Act and Common Law Trademark Infringement and Unfair Competition Claims Because the RAAGA Mark Is Not Valid or Legally Protecta-ble

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501 F. Supp. 2d 605, 2007 U.S. Dist. LEXIS 57398, 2007 WL 2257665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vista-india-v-raaga-llc-njd-2007.