Yurman Design, Inc. v. Paj, Inc.

93 F. Supp. 2d 449, 2000 U.S. Dist. LEXIS 4734, 2000 WL 377836
CourtDistrict Court, S.D. New York
DecidedApril 11, 2000
Docket98 CIV. 8697 RWS
StatusPublished
Cited by13 cases

This text of 93 F. Supp. 2d 449 (Yurman Design, Inc. v. Paj, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yurman Design, Inc. v. Paj, Inc., 93 F. Supp. 2d 449, 2000 U.S. Dist. LEXIS 4734, 2000 WL 377836 (S.D.N.Y. 2000).

Opinion

OPINION

SWEET, District Judge.

On November 1, 1999, a jury found defendant PAJ, Inc. (“PAJ”) liable for copyright infringement, trade dress infringement under the Lanham Act, and common law unfair competition. In separate motions, PAJ has moved (1) to set aside the jury’s verdict concerning damages or, alternatively, for a new trial or remittitur of damages; and (2) for judgment as a matter of law on certain of plaintiff Yurman Design, Inc.’s (“Yurman Design”) claims, or alternatively for a new trial. In its post-trial submissions, Yurman Design has also pressed, inter alia, for the issuance of a permanent injunction, the levying of prejudgment interest, and the imposition of attorney’s fees and enhanced damages. Yurman Design has also asserted its entitlement to an accounting of PAJ’s profits in connection with its Lanham Act claim.

Also before the Court is Yurman Design’s motion, submitted prior to trial, for sanctions in connection with PAJ’s deposition of Sybil Yurman.

For the reasons set forth below, these motions are granted in part and denied in part.

Facts and Prior Proceedings

On December 8, 1998, Yurman Design filed its complaint in this action. A designer and manufacturer of fine jewelry, well known within design and retail circles for its signature “cable” creations, Yurman Design contended that PAJ had intentionally copied certain of its copyrighted jewelry pieces, and that other PAJ designs improperly infringed upon Yurman’s distinctive “trade dress.” The artistic force behind Yurman Design, David Yurman, is a well regarded designer of creative American jewelry.

After several bouts of contentious motion practice, Yurman’s case was tried to a jury. Submitted to the jury were Yur-man’s claims of copyright infringement, trade dress infringement, and unfair competition under New York law.

On November 1, 1999, after seven days of trial, the jury rendered its verdict in this case, finding for Yurman on all counts. More specifically, the jury by special verdict annexed hereto as appendix A found that, with respect to Yurman’s copyright claims: (1) Yurman was the owner of valid copyrights concerning the following jewelry designs: B4973 (Copyright Registration No. VA 643-194); B4977 (Copyright Registration No. VA 785-335); E4973 (Copyright Registration No. VA 785-334); E4395 (Copyright Registration No. VA 785-336); and B4809 (Copyright Registration No. VAu 254-365); (2) the following PAJ jewelry designs infringed upon Yur-man’s copyrighted designs: 65-0676-9700 (infringing upon B4973 and B4977); 68-4106-98 (infringing upon B4973 and B4977); 66-3584-9700 (infringing upon E4973); and 65-0679-1300 (infringing upon B4809), and that as to all of these infringing jewelry PAJ’s infringement was willful. 1

With respect to Yurman’s Lanham Act claims, the jury found (1) that Yurman’s jewelry designs were “inherently distinctive”; (2) that Yurman Design had established that its trade dress had become distinctive through evidence of secondary meaning; (3) that PAJ had used Yurman Design’s trade dress, and that such use *453 was likely to cause confusion as to source; and (4) that Yurman had not abandoned its trade dress. More specifically, the jury found that the following PAJ jewelry designs infringed upon Yurman’s trade dress: 65-0676-9700; 65-0679-1300; 66-3584-9700; 66-3520-9800; 68-4106-98; 65-0730-3500; 65-0729-1400; 65-0725-9800; 65-0678-2700; 65-0677-4500; 68-4107-13; 68-4108-98; 68-4596-19; 68-4491-16; 68-4492-15; 68-4493-14; 65-0689-9700; 66-3639-1300; 66-3638-1600; and 66-3521-1300. 2 As to all of these infringing jewelry pieces, the jury found that PAJ’s infringement was willful, and that PAJ had not rebutted any presumption of customer confusion raised by that willful infringement.

Finally, because the jury’s findings with respect to PAJ’s willful infringement of Yurman Design’s trade dress could also give rise to liability under New York’s common law of unfair competition, the jury found PAJ liable for unfair competition.

• With respect to damages, the jury awarded Yurman Design (1) statutory damages in the amount of $275,000 for PAJ’s copyright infringement, and (2) $800,000 in punitive damages on Yurman Design’s unfair competition claim. As to Yurman’s Lanham Act claim, the jury awarded Yurman Design no damages.

After allowing ample opportunity for the parties to exchange briefing salvos, oral argument was heard on January 19, 2000, at which time the motions were deemed fully submitted.

Also considered in the present opinion is a request by Yurman for costs in connection with the deposition of Sybil Yurman. Submitted in letter form, and treated by the court as a motion, final resolution of this motion was delayed until after trial.

Discussion

The parties’ lengthy briefing in this case provides some indication of the vigorous manner in which this action has been litigated.

In its post-trial motions, PAJ contends that it is entitled to judgnent as a matter of law because (a) the works registered in Copyright Registration No. VAu 254-365 are not sufficiently related to qualify for single registration; (b)' Yurman’s copyrights were not infringed as a matter of law, given Yurman Design’s failure to show “substantial similarity” between PAJ jewelry designs and the protectable elements of Yurman Design’s pieces; (c) the “merger” doctrine precludes Yurman Design’s recovery for copyright infringement, as allowing such recovery would impermis-sibly monopolize basic designs that are already in the public domain; (d) Yurman Design failed to articulate the trade dress for which it sought protection; and (e) Yurman Design’s claimed trade dress cannot act as a source identifier. PAJ claims that, notwithstanding its entitlement to judgment as a matter of law, it is entitled to a new trial because (a) Yurman Design’s copyrights are invalid for want of originality; (b) Yurman Design’s trade dress is neither inherently distinctive nor has it acquired secondary meaning; (c) Yurman’s use of side-by-side comparisons in presenting its trade dress claims to the jury was improper; and (d) the Court improperly admitted testimony from third party lay witnesses. PAJ also asserts its entitlement to a new trial because the jury’s finding of willful infringement was against the weight of the evidence, and presses that Yurman Design’s claim for unfair competition fails because PAJ failed to demonstrate actual confusion on the part of consumers.

With respect to damages, PAJ presses that (1) the jury’s award of statutory damages on Yurman Design’s copyright claims was improper, as such damages were not reasonably related to the harm visited upon Yurman Design; (2) the jury’s award *454 of punitive damages was inappropriate, given that the jury was not aware of any actual damages in this ease; (3) that the jury’s award of punitive damages must be reversed or reduced under the doctrine of preemption; and (4) that even if the punitive damages award is allowed to stand, it should be reduced given its excessive nature.

In addition to seeking a permanent injunction, Yurman Design has pressed its entitlement to (1) costs and attorney’s fees under the Copyright Act, 17 U.S.C.

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93 F. Supp. 2d 449, 2000 U.S. Dist. LEXIS 4734, 2000 WL 377836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yurman-design-inc-v-paj-inc-nysd-2000.