Warner Lambert Co. v. McCrory's Corp.

718 F. Supp. 389, 1989 WL 83802
CourtDistrict Court, D. New Jersey
DecidedAugust 17, 1989
DocketCiv. A. 89-2437
StatusPublished
Cited by22 cases

This text of 718 F. Supp. 389 (Warner Lambert Co. v. McCrory's Corp.) 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
Warner Lambert Co. v. McCrory's Corp., 718 F. Supp. 389, 1989 WL 83802 (D.N.J. 1989).

Opinion

OPINION

WOLIN, District Judge.

Plaintiff Warner-Lambert Company (“Warner-Lambert”) brings the instant motion for a preliminary injunction against defendant McCrory Corporation’s (“McCro-ry”) sale of an unflavored medicinal mouthwash product in a trade dress that allegedly infringes upon the trade dress of plaintiff’s product Listerine Antiseptic (“Listerine”) in violation of § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) and N.J. S.A. 56:4-1. For the reasons set forth below, plaintiff’s request for preliminary in-junctive relief will be denied.

I. BACKGROUND

Plaintiff Warner-Lambert is a Delaware corporation principally based in Morris Plains, New Jersey. Among its many products, Warner-Lambert manufactures, markets and sells an unflavored, amber-colored, antiseptic mouthwash known as Listerine, which was first introduced in 1879, and now is the largest selling mouthwash in the United States today, maintaining approximately a 26.5% market share of the total mouthwash market. During 1988, plaintiff’s factory sales of this product were in excess of $172 million. Listerine faces competition from no other major manufacturer in the unflavored, antiseptic mouthwash category. To promote and advertise Listerine, Warner-Lambert has expended in excess of $385,500,000.00 over the past ten years, including $49 million in 1988 alone.

Since 1976, Listerine has been packaged in a clear, “bar-bell” type waisted bottle 1 with a black cap and a white, rectangular label with black lettering on the waist of the bottle, and the amber liquid prominently displayed. The bar-bell bottle represented a slight modification from the “Boston Round” bottle used prior to 1978. Warner-Lambert claims the modification was *392 done for the sole purpose of creating a more distinctive marketing image for Listerine. Despite this importance Warner-Lambert places on Listerine’s bottle shape, at the point of retail sale Listerine bottles are supposed to be sold in a khaki-colored cardboard overwrap that has a yellow label. Plaintiff contends, however, that the focus of the advertising and promotion of Listerine, and the point of consumer identification with the product, is the unwrapped bottle, which is displayed in all print advertising and for 70% of the time in the product’s T.V. ads.

Although Listerine faces no other single major competitor, similar mouthwash products have been manufactured for sale in the private label market. Private label products are sold by retailers, with the retailer's own name often on the product. Some of the nation’s largest retailers sell private label amber mouthwash. For example, K-Mart Corporation (“K-Mart”) has been selling its private label amber mouthwash for four years. Noble Affidavit, ¶ 2. Reveo U.S., Inc. (“Reveo”) has been selling its private label brand amber mouthwash for six years. Biarsky Affidavit, 1! 2. Both the Reveo and K-Mart amber mouthwashes are packaged in 32 ounce bar-bell shaped bottles with black caps. Also packaged in bar-bell shaped bottles and before the Court as exhibits are the private label amber mouthwash brands of CVS Stores, Treasury Stores, People’s, Rite Aid, Good Health, as well as defendant McCrory. Examples of private label amber mouthwash packaged in other than bar-bell shaped bottles are Parklane, “Amber” Mouthwash (sold in Publix stores) Rite Aid (16 ounce bottle), Pathmark and Woolworth. Of these, only the Publix brand is in a 32 ounce size. 2

Retailers purchase their private label brands from specialized manufacturers. Two of the largest suppliers of private label mouthwash products are L. Perrigo Company and Cumberland-Swan, Inc., from which McCrory purchases the amber mouthwash in dispute here. Officers from the two companies have averred that their companies have manufactured amber mouthwash in bar-bell shaped bottles for six and three years, respectively, without receiving any warning from Warner-Lambert until recently. Olesnavage Affidavit, H 3-9; Jones Affidavit, ¶ 3.

In early 1988, defendant McCrory apparently decided to develop a private label amber mouthwash product. McCrory presently operates approximately 1,300 retail stores. McCrory claims to have surveyed the current state of the private label mouthwash market and determined the industry-standard for the trade dress of unflavored mouthwash to be a waisted clear bottle combined with amber liquid. McCro-ry’s private label medicinal, unflavored mouthwash was eventually packaged in such a trade dress, with the name “Antiseptic Mouthwash,” except that McCrory added a yellow wrap-around label with a self-awarded McCrory “prize ribbon” seal of approval. McCrory places its private label amber mouthwash on shelves with Listerine under a “compare and save” sign. That is supposed to alert consumers to the price difference between Listerine, which sells for approximately $4.29, and McCro-ry’s private label brand, which sells for approximately $1.69.

McCrory’s began selling its own label amber mouthwash in June 1988. On January 26, 1989, counsel for Warner-Lambert wrote to McCrory objecting to McCrory’s trade dress for its private label amber mouthwash. Warner-Lambert contends this letter was prompted by the inability of Warner-Lambert’s own counsel to recognize Listerine at a McCrory’s store. Plaintiff states: “This was the first time that Warner-Lambert had knowledge regarding an infringement of the Listerine trade dress by McCrory’s or anyone else.” Plaintiff’s Brief in Support of Preliminary Injunction, p. 6. However, this claim is somewhat contradicted by the deposition testimony of Lynne Millheiser, Warner-Lambert’s Category Director for oral care prod *393 ucts, who, when asked “How long have you been aware of the sale of private label amber mouthwash in bottle shapes with waisted middles?”, responded, “Approximately ten years.” Millheiser Deposition at p. 122.

McCrory responded to Warner-Lambert’s January 26 letter by merely changing the white background on the product’s label to a shade of yellow. On February 26,1989 Warner-Lambert notified McCrory that it considered the change to be insignificant. McCrory rejected Warner-Lambert’s further demands in a letter dated March 16, 1989. Warner-Lambert then commissioned a consumer survey by the Guideline Research Corporation to ascertain the extent of any consumer confusion between Listerine and McCrory’s private label brand amber mouthwash. On June 6, 1989, plaintiff commenced this action and simultaneously moved for a preliminary injunction against McCrory’s sale of its private label amber mouthwash. It is this motion that is now before the Court.

II. DISCUSSION

A. Standard for Preliminary Injunction

Before a district court may issue a preliminary injunction in the Third Circuit, the Court must be satisfied that plaintiff is likely to prevail on the merits, that it will suffer irreparable harm absent such relief, and that the balance of equities and the public interest favor injunctive relief. See American Greetings Corp. v. Dan-Dee Imports, Inc., 807 F.2d 1136, 1140 (3d Cir.1986);

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Bluebook (online)
718 F. Supp. 389, 1989 WL 83802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-lambert-co-v-mccrorys-corp-njd-1989.