Gucci America, Inc. v. Guess?, Inc. et al
Filing
196
OPINION AND ORDER re: 188 MOTION for Summary Judgment filed by Marc Fisher Footwear LLC, 182 MOTION for Summary Judgment filed by Signal Products, Inc., Guess?, Inc., The Max Leather Group/Cipriani Accessories, Inc., Swank, Inc., K&M Associates L.P., Sequel AG, Viva Optique, Inc. For the reasons discussed, Guess is entitled to summary judgment on Gucci's dilution claims relating to the Square G and Quattro G designs. With respect to all other claims, the motions are denied. The Clerk of the Court is directed to close these motions (Docket Nos. 182 and 188). A final pre-trial conference is scheduled for March 13,2012 at 5:30 p.m. (Signed by Judge Shira A. Scheindlin on 2/14/2012) (mro) Modified on 2/14/2012 (mro).
. USDCSDNY
.. DO(,'tJ~~"
B'I..8CJ.1\ONICAll..Y FUJID·
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
._--------------------------------------------------
)(
DOC iI:
..
GUCCI AMERICA, INC.,
i{~t /J.
---~-.-,-
DATE FlLBD:
;;L
Plaintiff,
- againstOPINION AND ORDER
GUESS? , INC., MARC FISHER
FOOTWEAR LLC, THE MAX
LEATHER GROUP/CIPRIANI
ACCESSORIES, INC., SEQUEL AG,
J&M ASSOCIATES L.P., VIVA
OPTIQUE, INC., SIGNAL PRODUCTS,
INC., and SWANK, INC.,
09 Civ. 4373 (SAS)
Defendants .
_--------------------------------------------------
.
)(
SHIRA A. SCHEINDLIN, U.S.D.J.:
L
INTRODUCTION
Gucci America, Inc. ("Gucci") brings this action against Guess?, Inc.,
Marc Fisher Footwear LLC ("NIFF"), the Max Leather Group/Cipriani
Accessories, Inc., Sequel AG, K&M Associates L.P., Viva Optique, Inc., Signal
Products, Inc, and Swank, Inc. (collectively, "Guess"), alleging various violations
-1
of the Lanham Act and New York state law.1 Guess now moves for summary
judgment. MFF has filed a similar motion with respect to Gucci’s claims against
it. For the reasons stated below, the motions are denied in part and granted in part.
II.
BACKGROUND2
This dispute began in 2009, when Gucci sued Guess, stating that it
engaged in “a sophisticated and elaborate scheme . . . to target Gucci, to create
products that are similar in appearance to the most popular and best-known Gucci
products, and trade upon the goodwill and reputation associated with Gucci and its
high-quality, distinctive product lines.” Proceeding under both federal and state
law, Gucci seeks a permanent injunction preventing Guess from using the allegedly
infringing marks, monetary relief (including actual damages, statutory damages,
and an accounting of profits) and destruction of all allegedly infringing products on
the basis of the following claims: 1) a trademark counterfeiting claim based on
Guess’s use of Gucci’s Green-Red-Green Stripe (“GRG Stripe”) design; 2) a
trademark infringement claim based on Guess’s use of the GRG Stripe, Script
1
See Second Amended Complaint at ¶¶ 64-119. As noted below in
more detail, the federal claims include trademark counterfeiting, infringement,
dilution, and false designation of origin. The state law claims are based on
common law trademark infringement and unfair competition, as well as statutory
trademark dilution.
2
Unless otherwise noted, the material in this section is drawn from the
Second Amended Complaint.
-2-
Guess, and Square G designs, as well as a related trade dress infringement claim
based on Guess’s use of the Quattro G design;3 and 4) claims for dilution, false
designation of origin, and unfair competition based on Guess’s use of all four
designs. Gucci also seeks cancellation of Guess’s “4G Square Repeating Logo”
trademark on the basis of abandonment.4 Guess timely denied all of Gucci’s
claims, and approximately six months after the Complaint was filed, suggested that
this dispute was amenable to summary disposition.5 Nonetheless, the parties
conducted full-scale discovery and engaged in settlement negotiations.
At a hearing on June 6, 2011, Guess persisted in its view that it was
entitled to summary judgment. Nonetheless, I directed the parties to separate the
Daubert expert-exclusion process from the summary judgment process, hoping
that the decision on these motions would eliminate the need for summary judgment
motions, or at least significantly reduce the scope of such motions.6 Thereafter,
3
Pictures of each design, along with examples of their use by both
Gucci and Guess, are found in Exhibits A through D, annexed to this opinion.
4
Although Gucci originally alleged point-of-sale confusion as well as
post-sale confusion, it now proceeds solely on the latter theory. See Gucci
America, Inc. v. Guess?, Inc., 09 Civ. 4373, 2011 WL 5825206, at *8 (S.D.N.Y.
Nov. 16, 2011)(“Gucci I”).
5
See Letter of Robert J. Welsh to the Court, Ex. H to Declaration of
Louis S. Ederer (“Ederer Decl.”), Counsel for Gucci, at H1-H4.
6
See 6/6/11 Conference Transcript, Ex. A to Ederer Decl., at 28:9-12.
-3-
this Court excluded all of Guess’s confusion surveys as irrelevant to the issue of
post-sale confusion. One of these – the Scott Survey – was nonetheless admitted
on the issue of laches.7 Gucci’s confusion survey was ultimately admitted for
certain limited purposes,8 while its dilution survey was admitted in its entirety.9
Although Guess previously stated that its summary judgment motion
would “rely largely on [the confusion] surveys,”10 it was not deterred by their
exclusion or by this Court’s frequent warnings that many of the issues in this case
were inherently fact intensive and not amenable to summary judgment.
Accordingly, Guess’s counsel has now brought the motion that it could not waive
“in good conscience.”11 A careful consideration of the voluminous submissions
with which the parties have inundated this Court confirms that large portions of
these motions were – as predicted – not amenable to summary disposition.12 With
7
See Gucci I, 2011 WL 5825206, at *16.
8
Gucci America, Inc. v. Guess?, Inc., 09 Civ. 4373, 2011 WL 6326032,
at *2 (S.D.N.Y. Dec. 16, 2011) (“Gucci II”).
9
See Gucci I, 2011 WL 5825206, at *16.
10
6/6/11 Conference Transcript, Ex. A to Ederer Decl., at 17:19-21.
11
8/4/11 Conference Transcript, Ex. A to Ederer Decl., at 7:15-19.
12
This Court’s individual rules limit parties to fifteen exhibits of fifteen
pages each – an implicit limit of two-hundred twenty-five pages – on any motion,
unless permission to exceed is given in advance. The parties have completely
disregarded the spirit of these rules. The Welsh Declaration, while within the
-4-
few exceptions, the motions are denied.
III.
APPLICABLE LAW
A.
Summary Judgment
1.
General Standards
Summary judgment is appropriate “if the pleadings, the discovery and
disclosure materials on file, and any affidavits show that there is no genuine issue
as to any material fact and that the movant is entitled to judgment as a matter of
law.”13 “‘An issue of fact is genuine if the evidence is such that a reasonable jury
could return a verdict for the nonmoving party. A fact is material if it might affect
the outcome of the suit under the governing law.’”14 “[T]he burden of
demonstrating that no material fact exists lies with the moving party . . . .”15
“When the burden of proof at trial would fall on the nonmoving party, it ordinarily
is sufficient for the movant to point to a lack of evidence to go to the trier of fact
implicit page limit, includes portions of forty different documents. The Ederer
Declaration contains excerpts of more than one hundred documents and contains
over fourteen hundred pages. All other page limits were properly observed.
13
Fed. R. Civ. P. 56(c).
14
SCR Joint Venture L.P. v. Warshawsky, 559 F.3d 133, 137 (2d Cir.
2009) (citation omitted).
15
Miner v. Clinton County, N.Y., 541 F.3d 464, 471 (2d Cir. 2008)
(citation omitted).
-5-
on an essential element of the non[-]movant’s claim.”16
To defeat a motion for summary judgment, the non-moving party
must raise a genuine issue of material fact.17 The non-moving party must do more
than show that there is “‘some metaphysical doubt as to the material facts,’”18 and
it “‘may not rely on conclusory allegations or unsubstantiated speculation.’”19
However, “‘all that is required [from a non-moving party] is that sufficient
evidence supporting the claimed factual dispute be shown to require a jury or judge
to resolve the parties’ differing versions of the truth at trial.’”20
In determining whether a genuine issue of material fact exists, the
court must “constru[e] the evidence in the light most favorable to the non-moving
party and draw all reasonable inferences” in that party’s favor.21 However, “‘only
admissible evidence need be considered by the trial court in ruling on a motion for
16
Jaramillo v. Weyerhaeuser Co., 536 F.3d 140, 145 (2d Cir. 2008).
17
See id.
18
Higazy v. Templeton, 505 F.3d 161, 169 (2d Cir. 2007) (citation
omitted).
19
Jeffreys v. City of New York, 426 F.3d 549, 554 (2d Cir. 2005)
(citation omitted).
20
Kessler v. Westchester County Dep’t of Soc. Servs., 461 F.3d 199, 206
(2d Cir. 2006) (citation omitted).
21
Sledge v. Kooi, 564 F.3d 105, 108 (2d Cir. 2009) (citation omitted).
-6-
summary judgment.’”22 “‘Credibility assessments, choices between conflicting
versions of the events, and the weighing of evidence are matters for the jury, not
for the court on a motion for summary judgment.’”23 Summary judgment is
therefore “appropriate only if there is no genuine issue of material fact and the
moving party is entitled to judgment as a matter of law.”24
2.
Expert Reports
“Entirely conclusory” expert reports are not sufficient to ward off
summary judgment.25 Indeed, even a non-conclusory expert report may not be “a
talisman against summary judgment.”26 It does not follow, however, that an expert
report is never sufficient to defeat summary judgment. Instead, deciding whether
an expert report raises a genuine issue of material fact is a task left to the sound
22
Presbyterian Church of Sudan v. Talisman Energy, Inc., 582 F.3d
244, 264 (2d Cir. 2009) (quoting Raskin v. Wyatt Co., 125 F.3d 55, 65 (2d Cir.
1997)).
23
McClellan v. Smith, 439 F.3d 137, 144 (2d Cir. 2006) (citation
omitted).
24
Pyke v. Cuomo, 567 F.3d 74, 76 (2d Cir. 2009).
25
Major League Baseball Props. v. Salvino, Inc., 542 F.3d 290, 311 (2d
Cir. 2008).
26
Raskin, 125 F.3d at 66 (citations omitted).
-7-
discretion of the court.27 In cases where credible expert reports conflict the case for
summary judgment on the disputed issue is very weak.28
B.
Post-Sale Confusion29
The Second Circuit has recognized a claim for post-sale confusion for
more than fifty years.30 This type of confusion harms the owner of a trademark in
that a potential purchaser, knowing that the public is likely to be confused or
deceived by the allegedly infringing product, will choose to purchase that product
27
See, e.g., Brown v. County of Nassau, 736 F. Supp. 2d 602, 620
(E.D.N.Y. 2010) (quoting Webster v. Offshore Food Serv., Inc., 434 F.2d 1191,
1193 (5th Cir. 1970)).
28
See In re Omnicom Group, Inc. Sec. Litig., 597 F.3d 501, 512 (2d Cir.
2010) (citation omitted).
29
Regardless of the name given to the infringement claim – false
designation of origin, unfair competition, or simply “infringement” – the question
under the Lanham Act and state law infringement claims is the same: is there a
likelihood of confusion? See Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763,
780 (1992). However, trademark infringement claims are distinct from trademark
dilution claims, which may exist even if there is no confusion at all. See DanFoam A/S v. Brand Named Beds, LLC, 500 F. Supp. 2d 296, 309-10 (S.D.N.Y
2007).
30
See Mastercrafters Clock & Radio Co. v. Vacheron & Constantin-le
Coultre Watches, Inc., 221 F.2d 464, 466 (2d Cir. 1955). There is no doubt that
the theory remains viable to this day. See Malletier v. Burlington Coat Factory
Warehouse Corp., 426 F.3d 532, 537 n.2 (2d Cir. 2005) (“Burlington Coat
Factory”).
-8-
instead of a genuine one in order to gain the same prestige at a lower price.31
While courts have long recognized that the Lanham Act only protects
against confusion that affects purchasing decisions,32 the Second Circuit has never
required a trademark owner proceeding under a post-sale theory of confusion to
show that sales were actually lost to the allegedly infringing user, as such evidence
is not easily obtained. Instead, the Second Circuit has held that post-sale confusion
is actionable when members of the public are confused as to the origin of the
products,33 as the existence of such confusion is precisely what would lead a
potential purchaser to choose the cheaper infringing product over the more
expensive genuine article.
Accordingly, instead of focusing on whether any sales were actually
diverted, courts in the Second Circuit look at all of the traditional Polaroid factors
in analyzing claims of post-sale confusion.34 Such factors include (1) the strength
31
See Hermes Intern. v. Lederer de Paris Fifth Ave., Inc., 219 F.3d 104,
108 (2d Cir. 2000).
32
See, e.g., Lang v. Retirement Living Pub. Co., Inc., 949 F.2d 576, 583
(2d Cir. 1991).
33
See Hermes, 219 F.3d at 108.
34
See Polaroid Corp. v. Polarad Elecs. Corp., 287 F.2d 492, 495 (2d
Cir. 1961). See also Burlington Coat Factory, 426 F.3d at 537 n.2; Estee Lauder
Inc. v. The Gap, Inc., 108 F.3d 1503, 1508 (2d Cir. 1997) (reversing the district
court’s weighing of the Polaroid factors in assessing a claim of post-sale confusion
-9-
of plaintiff’s mark; (2) the similarity of plaintiff’s and defendant’s marks; (3) the
proximity of the products; (4) the likelihood that plaintiff will “bridge the gap”; (5)
actual confusion between products; (6) defendant’s good or bad faith in adopting
the mark; (7) the quality of defendant’s product; and (8) the sophistication of the
buyers.35 “No single factor is dispositive, nor is a court limited to consideration of
only these factors.”36 “Further, ‘each factor must be evaluated in the context of
how it bears on the ultimate question of likelihood of confusion as to the source of
the product.’”37
C.
Monetary Relief
In order to obtain monetary relief for damages stemming from
trademark infringement, the owner of a trademark normally must prove “actual
consumer confusion or deception resulting from the violation [of the Lanham
on the basis of incorrect balancing); Lois Sportswear, U.S.A., Inc. v. Levi Strauss &
Co., 799 F.2d 867, 876 (2d Cir. 1986).
35
See Polaroid Corp., 287 F.2d at 495.
36
Brennan’s, Inc. v. Brennan’s Restaurant, LLC., 360 F.3d 125, 130 (2d
Cir. 2004) (citing Polaroid, 287 F.2d at 495).
37
Id. (quoting Lois Sportswear, 799 F.2d at 872).
-10-
Act].”38 Damages may include lost sales,39 a reasonable royalty40, and harm to
brand value.41 In the absence of such a showing, the owner may nonetheless obtain
monetary relief by proving that the alleged infringer acted with an intent to
deceive, because such an intent gives rise to a rebuttable presumption of actual
confusion.42 While an intent to copy is distinct from an intent to deceive, it
nonetheless creates a presumption of an intent to deceive, unless there is evidence
to the contrary.43
Monetary relief may also be granted in the form of an accounting of a
defendant’s profits arising from the sale of allegedly infringing products.44 To
38
Malletier v. Dooney & Bourke, Inc., 525 F. Supp. 2d 558, 646
(S.D.N.Y. 2007) (“Malletier II”).
39
See George Basch Co., Inc. v. Blue Coral, Inc., 968 F.2d 1532, 1540
(2d Cir. 1992).
40
See 5 McCarthy on Trademarks § 30:85.
41
See id. at § 30:72.
42
See George Basch Co., Inc., 968 F.2d at 1537.
43
See Starbucks Corp. v. Wolfe’s Borough Coffee, Inc., 588 F.3d 97,
118 (2d Cir. 2009).
44
For an accounting of profits, a plaintiff need only prove defendant’s
infringing sales. Thereafter, the defendant is entitled to a reduction of that amount
based on costs and expenses associated with the infringing sales, but only if it can
prove that there is “a sufficient nexus” between the two that warrants such a
reduction. Manhattan Indus., Inc. v. Sweater Bee by Banff, Ltd., 885 F.2d 1, 8 (2d
Cir. 1989). Furthermore, it is important to note that a defendant’s profits are
-11-
obtain an accounting, the plaintiff must show that the infringer acted with “willful
deceptiveness.” Nonetheless, because an accounting of profits is an equitable
remedy, willful deceptiveness, while a necessary factor, must be considered along
with many others, including “‘(1) the degree of certainty that the defendant
benefited [sic] from the unlawful conduct, (2) [the] availability and adequacy of
other remedies, (3) the role of a particular defendant in effectuating the
infringement, (4) plaintiff’s laches; and (5) plaintiff’s unclean hands.’”45 If a court
does order an accounting, it should be limited to those profits attributable to the use
of the allegedly infringing marks.46
D.
Laches
Because the Lanham Act expressly incorporates the principles of
equity, the equitable defense of laches is available in a trademark infringement
action brought under the Lanham Act.47 As an equitable defense, however, it is
conceptually distinct from profits lost by the seller due to allegedly infringing
sales, which are considered actual damages. See George Basch Co., Inc., 968 F.2d
at 1540.
45
Malletier v. Dooney & Bourke, Inc., 500 F. Supp. 2d 276, 279
(S.D.N.Y. 2007) (“Malletier I”) (quoting George Basch Co., Inc., 968 F.2d at
1540).
46
See Gucci America, Inc. v. Daffy’s Inc., 354 F.3d 228, 242 (3d Cir.
2003); Malletier II, 525 F. Supp. 2d at 657.
47
See 6 McCarthy on Trademarks § 31:1.
-12-
also highly fact intensive and not typically amenable to summary judgment.48
In the context of a suit brought under the Lanham Act, the Second
Circuit has stated that the likelihood that the defense of laches will apply increases
as the plaintiff tolerates “the [defendant’s] competition in the same market with a
name similar to that of the [plaintiff]” over an extended period of time.49 Generally
speaking, the court considers three factors in a laches analysis: (1) whether the
senior user knew that the junior user was using its mark; (2) whether the senior
user inexcusably delayed taking action; and (3) whether the junior user is harmed
as a result.50
E.
Standards of Proof For Trademark Dilution Claims
The standard by which a claim for trademark dilution is assessed
depends on when the allegedly diluting mark was first used in commerce. Where
such use occurs before October 6, 2006, the dilution claim is governed by the
Federal Trademark Dilution Act of 1995, under which the plaintiff must prove
48
See, e.g., U.S. Bank N.A. v. Ables & Hall Builders, 528 F. Supp. 2d
605, 611 (S.D.N.Y. 2008).
49
Patsy’s Brand, Inc. v. I.O.B. Realty, Inc., 317 F.3d 209, 217 (2d Cir.
2003) (emphasis in original).
50
See Black Diamond Sportswear, Inc. v. Black Diamond Equip., Ltd.,
No. 06-3508-cv, 2007 WL 2914452, at *1 (2d Cir. Oct. 5, 2007).
-13-
actual dilution.51 If, however, the alleged diluting mark is first used in commerce
after October 6, 2006, the Trademark Dilution Revision Act of 2005 applies, which
allows the plaintiff to succeed upon a lesser showing of a “likelihood of dilution.”52
IV.
DISCUSSION
A.
Gucci’s Post-Sale Infringement Claims Do Not Fail as a Matter of
Law
Guess argues that Gucci’s post-sale trademark and trade dress
infringement claims fail as a matter of law unless Gucci can produce evidence that
a potential purchaser actually bought an allegedly-infringing Guess product instead
of an authentic Gucci product in order to take advantage of confusion in the postsale environment.53 As Guess points out, when discussing the “actual confusion”
Polaroid factor in Lang v. Retirement Living, the Second Circuit noted that “there
51
See Moseley v. V Secret Catalogue, Inc., 537 U.S. 418, 433 (2003).
52
See Malletier I, 500 F. Supp. 2d at 279.
53
See Memorandum of Law in Support of Defendants’ Motion For
Summary Judgment (“Guess Mem.”) at 5.
Guess argues that Gucci could have developed evidence that the
confusion at issue here would impact purchasing decisions by asking the
respondents in its confusion survey precisely that question. See Reply
Memorandum of Law in Support of Defendants’ Motion for Summary Judgment
(“Guess Rep. Mem.”) at 3. However, as noted above, post-sale confusion is not
concerned with the purchasing behavior of confused individuals. Instead, it is
concerned with the purchasing behavior of unconfused individuals seeking to take
advantage of confusion in the post-sale environment. See Part III.B, supra (citing
Hermes, 219 F.3d at 108).
-14-
[was] no reason to believe that confusion represented by the phone calls could
inflict commercial injury in the form of either a diversion of sales, damage to
goodwill, or loss of control over reputation.”54
Based on Lang, Guess posits a three-step approach to analyzing actual
confusion. First, it argues that the absence of diverted sales is sufficient to
establish no actual confusion in the post-sale context. Second, it argues that this
absence of evidence regarding actual confusion is sufficient to establish that there
is no likelihood of confusion in the post-sale context. Third, if there is no
likelihood of confusion in the post-sale context, a defendant is entitled to judgment
as a matter of law on a plaintiff’s trademark infringement claims.55
A careful reading of Lang and subsequent cases makes clear that the
Second Circuit never adopted the second step delineated above. Instead, even in
post-sale confusion cases, the Second Circuit requires a court to weigh all of the
relevant Polaroid factors in determining if there is a likelihood of confusion
sufficient to support a cause of action under the Lanham Act. Indeed, if the
absence of evidence of actual post-sale confusion were sufficient to establish the
absence of a likelihood of post-sale confusion, then the converse should also be
54
Lang, 949 F.2d at 582-83.
55
See Guess Rep. Mem. at 2-3.
-15-
true – that a positive finding of a likelihood of post-sale confusion could establish
actual post-sale confusion. This would eliminate the Polaroid inquiry and make
actual confusion the sine qua non of the likelihood of confusion analysis instead of
one of many factors that must be weighed. That is simply not the rule enunciated
in MasterCrafters, Hermes, Lois Sportswear, or any other post-sale confusion case
of which this Court is aware. Instead, Gucci need only show that post-sale
observers are likely to confuse the allegedly infringing Guess products with Gucci
products in order to avoid summary judgment on its infringement claims.
Guess also argues that because Gucci admits that there is no evidence
of lost sales or “passing off,” Gucci must show that consumers are likely to believe
that Gucci and Guess are “related entities.” Guess cites Lois Sportswear in support
of the claim that Gucci cannot make such a showing because it “concedes ‘Guess’s
prominence in the fashion industry.’”56 In Lois Sportswear, as in Lang, the Second
Circuit conducted a full review of the district court’s weighing of the Polaroid
factors and found it to be correct.57 Moreover, while Gucci acknowledges that
Guess is a famous brand, it strongly denies that Guess is a “fashion” brand.58
56
Id. at 4.
57
See Lois Sportswear, 799 F.2d at 871-76.
58
See Gucci’s Rule 56.1 Statement (“Gucci 56.1”) ¶ 129.
-16-
In sum, Guess’s argument that the absence of evidence of actual
confusion is necessarily dispositive on post-sale confusion claims is incorrect.
Instead, a likelihood of confusion analysis in the post-sale context requires the
court to balance all relevant Polaroid factors. Except for Gucci’s failure to
demonstrate “actual confusion,” Guess makes no argument that any of the other
Polaroid factors weigh in its favor. Furthermore, the facts that Guess raises in
support of its argument for summary judgment on Gucci’s post-sale infringement
claims are either irrelevant to post-sale confusion or disputed. Accordingly,
Guess’s motion for summary judgment on Gucci’s post-sale infringement claims is
denied.
B.
Guess Is Not Entitled to Summary Judgment on Gucci’s Claims
for Monetary Relief Based on Trademark Infringement
Gucci seeks two forms of monetary relief related to its trademark
infringement claims: damages and an accounting of profits stemming from the sale
of allegedly infringing products. On this record, Gucci asserts that it is entitled to
damages of approximately twenty-six million dollars. This amount represents a
“reasonable royalty” as calculated by Gucci’s damages expert, Basil A. Imburgia.59
Gucci also asserts that it is entitled to an accounting of profits from all of the
defendants, which Imburgia calculated to be in excess of ninety-eight million
59
See Gucci 56.1 ¶ 145.
-17-
dollars.60 For the reasons given below, summary judgment on both forms of
monetary relief is denied.
1.
The Quattro G Design61
Gucci has evidence of actual confusion stemming from Guess’s use of
the Quattro G design on bags in the form of the Mantis Survey. Although
originally excluded, that survey was admitted for two limited purposes on
reconsideration: first, as evidence of the confusion associated with the actual
Mantis Test Bag, and second, as evidence of the confusion in those post-sale
situations where permanent Guess-identifying hardware is not visible.62 While
Guess challenges the weight that should be given to this survey on various
grounds,63 that argument simply raises a genuine dispute of material fact, rather
than dispelling one. Accordingly, Guess is not entitled to summary judgment on
60
See Gucci America, Inc.’s Memorandum in Opposition to Defendants’
Motions for Summary Judgment (“Gucci Mem.”) at 16. Both of these amounts
represent monetary relief sought for the alleged infringement of all four designs at
issue.
61
See Ex. A, annexed to this Opinion, for a sample of the Gucci
Diamond Motif trade dress, as well as exemplars of genuine and allegedly
infringing products.
62
See Gucci II, 2011 WL 6326032, at *3. As I noted in the Exclusion
Opinion, surveys are indirect evidence of the existence of actual confusion. See
Gucci I, 2011 WL 5825206, at *7 n.79.
63
See Guess Rep. Mem. at 13-14.
-18-
Gucci’s claims for damages stemming from Guess’s use of this design.
Gucci has also produced substantial evidence from which a reasonable
inference could be drawn that Guess acted in bad faith by meticulously copying
Gucci’s Diamond Motif trade dress in developing the Quattro G design, despite
recognizing that consumers might confuse the two patterns.64 Guess attempts to
rebut this evidence in two ways. First, it points out that it places permanent Guess
identifiers on its Quattro G products. Second, it points out that the channels
through which Quattro G products are sold clearly identify the products as coming
from Guess, not Gucci.65
64
See Gucci 56.1 ¶¶ 196-198, 236-241. For example, Guess’s licensees
repeatedly instructed their manufacturers to copy the color and appearance of the
Quattro G fabrics with Gucci’s Diamond Motif fabrics, and even sent samples of
the latter to ensure the match. Additionally, one licensee stated that the Quattro G
and the Diamond Motif would seem similar to the layperson, while another
admitted that whole products looked or were intended to look like Gucci ones.
This gives rise to an issue of fact about whether Guess used the Quattro G trade
dress with an intent to deceive, or at least with knowledge that some post-sale
observers might be deceived. Accordingly, the presumption that an intent to
deceive arises from the intent to copy need not be applied with respect to this
design.
65
See Guess Mem. at 28. Guess also argues that the presumption of
actual confusion is “rebutted by the uncontroverted evidence showing [that] there
have been no reports of confusion concerning the Quattro G during the past seven
years.” Guess Rep. Mem. at 14. Because the presumption shifts the burden to
Guess to show no actual confusion, merely pointing to this sort of “peaceful coexistence” between marks is not sufficient to warrant summary judgment.
Guess states that if the presumption of actual confusion is not rebutted
in this way, “the ‘rebuttable’ presumption would “really be ‘irrebuttable.’” Guess
-19-
These arguments are plainly relevant to the issue of Guess’s intent to
confuse at the point of sale. However, as I noted in the Exclusion Opinion, in
those post-sale situations where a Guess identifier will not be seen, the use of that
identifier will not dispel post-sale confusion, and therefore says nothing one way or
the other about Guess’s bad faith vis-a-vis post-sale confusion.66 The fact that
Guess retail channels identify Quattro G products as coming from Guess is
Mem. at 27. If, however, Guess could demonstrate that there is no likelihood of
confusion, the presumption would be rebutted. While the cases that Guess cites
clearly establish that the absence of actual confusion is relevant to the likelihood of
confusion analysis – see, e.g., Nabisco, Inc. v. PF Brands, Inc., 191 F.3d 208, 228
(2d Cir. 1999) (noting that peaceful co-existence is a “powerful indicator that the
junior trademark does not cause a meaningful likelihood of confusion”) (emphasis
added) – they do not establish that such an absence is dispositive. Instead, as
discussed above, determining that there is no likelihood of confusion requires a
weighing of all the relevant Polaroid factors. Because Guess does not provide
sufficient facts from which this Court could conduct such an analysis on summary
judgment, the presumption of actual confusion remains unrebutted.
66
See Gucci I, 2011 WL 5825206, at *13. Guess’s own citation
supports this point. As the court noted in Skechers U.S.A., Inc. v. Vans, Inc., No.
07 Civ. 1703, 2007 WL 4181677, at *8 (C.D. Cal. Nov. 20, 2007), it was precisely
because the Skechers brand markings were visible in the typical post-sale setting
that such marks dispelled post-sale confusion. Gucci argues – on the basis of one
of Guess’s own experts – that at least in one-third of post-sale situations, Guess
identifiers are not visible. See Gucci Mem. at 17.
Guess also submits the expert reports of Gabriele Goldpaper and Gary
D. Krugman in support of the notion that it did not use the Quattro G pattern in bad
faith. See Guess Mem. at 28-30. At best – as in the case of the Pham Report
discussed below – expert reports may ward off summary judgment. As I have
explicitly warned Guess in the past, however, they seldom support summary
judgment. See 6/6/11 Conference Transcript at 4:6-14. Accordingly, these expert
opinions do not warrant summary judgment on the issue of bad faith.
-20-
likewise plainly irrelevant to the issue whether Guess acted with an intent to cause
post-sale confusion.67
In the face of a clear issue of fact as to whether it acted with a bad
faith intent to cause post-sale confusion, Guess argues that it is still entitled to
summary judgment with respect to an accounting of profits because none of the
three rationales for such an award – to remedy unjust enrichment, to serve as a
“rough proxy” for damages, and to deter further willful infringement68 – apply in
this case. Guess is only partially correct.
Because there is no evidence that Gucci has actually lost any sales,
Guess is correct that the unjust enrichment rationale does not apply.69 As discussed
above, however, Gucci has evidence of actual post-sale confusion with respect to
the Quattro G design, thereby raising a genuine issue as to whether it is entitled to
67
If anything, the fact that Guess and Gucci products are sold through
different channels may increase the likelihood of post-sale confusion, as “physical
or temporal separation of exposures to the two sets of products obviously decreases
consumers’ ability to detect subtle differences between the two and therefore
contributes to their perceived similarity.” Expert Report of (Michel) Tuan Pham,
Ph.D. (“Pham Report”), Ex. C to Ederer Decl., at 31.
68
Guess Rep. Mem. at 15 (citing George Basch Co., Inc., 968 F.2d at
1538-39).
69
See George Basch Co., Inc., 968 F.2d at 1538 (noting that on the
unjust enrichment rationale, “a defendant becomes accountable for its profits when
the plaintiff can show that, were it not for defendant’s infringement, the
defendant’s sales would otherwise have gone to the plaintiff.”).
-21-
damages. Because the damages Gucci claims on this record – compensation for a
reasonable royalty – are inherently speculative, using Guess’s profits as a “rough
proxy” for Gucci’s damages may be appropriate.70
Finally, there is a question as to whether the deterrence rationale
applies in this case. In George Basch Co, Inc., the Second Circuit held that this
rationale, even standing alone, is sufficient to merit an accounting of profits. The
point of such an accounting is to “protect the public [by deterring] fraud regarding
the source and quality of consumer goods and services.”71 The concern that casual
observers will attribute an infringing product’s low quality to the owner of the
mark is reduced in post-sale confusion cases, as such persons are not in a position
to examine a product’s construction and materials. However, the concern that
casual observers will be confused as to the source of the infringing products is at
the heart of post-sale confusion. As noted above, the likelihood that casual
observers will be confused cannot be resolved on summary judgment.
Accordingly, the deterrence rationale remains viable. For these reasons, summary
judgment with respect to an accounting of profits stemming from Guess’s allegedly
70
Gucci may not recover this “reasonable royalty” twice. That is, if
Gucci is compensated for this amount via an accounting of profits, it is not entitled
to a separate award of actual damages. This is necessary to avoid an improper
double recovery. See 5 McCarthy on Trademarks § 30:73.
71
968 F.2d at 1539.
-22-
infringing use of the Quattro G design is denied.72
2.
Marks as to Which There Is No Evidence of Actual
Confusion
Guess argues that it is entitled to summary judgment on monetary
relief – both damages and an accounting of profits – with respect to its allegedly
infringing use of the Square G, Script Guess, and GRG Stripe designs because
“Gucci has no evidence of actual confusion or bad faith.”73 Because Gucci had
registered all three marks, Guess is charged with constructive knowledge of each
mark as of the date of registration and may not rely on lack of actual knowledge as
a defense.74 Although Gucci admits that it has no evidence of actual confusion
stemming from Guess’s use of these three marks, it strenuously argues that there
are genuine issues of material fact that preclude summary judgment on monetary
relief.
72
Guess makes one final attempt to argue that it is entitled to judgment
on this issue as a matter of law, despite the clear dispute as to its bad faith intent to
confuse. On the basis of the report of Dr. Alan Goedde, it argues that there is no
dispute that Guess was not unjustly enriched by its use of the Quattro G design.
See Guess Mem. at 5-6. Gucci, however, offers the rebuttal report of Basil A.
Imburgia in response to Dr. Goedde. In a such a “dueling experts” situation,
summary judgment is inappropriate.
73
Id. at 22.
74
See Dawn Donut Co. v. Hart’s Food Stores, Inc., 267 F.2d 358, 362
(2d Cir. 1959) (holding that the Lanham Act eliminated lack of knowledge as a
defense to trademark infringement based on a registered mark).
-23-
a.
The Square G Design75
Guess states “[t]here is no record evidence that . . . Gucci’s Stylized G
mark enjoyed an extensive reputation or goodwill that Guess could have sought to
capitalize on when it introduced its own Square G Mark.”76 The evidence shows,
however, that Gucci’s Stylized G was featured in an advertising campaign in 1995,
well before Guess’s first use of the Square G in 1996.77 The evidence also shows
that Gucci has used the Stylized G mark on watches and clocks since 1966.78
Guess also notes it places permanent Guess identifiers “prominently
or in close proximity to its Square G mark.”79 As discussed above, the use of such
identifiers is not relevant in many post-sale confusion cases. Even if it were,
however, Gucci provides more than a half dozen examples where Guess failed to
do so, including a product that was sold as recently as January 5, 2012.80
Finally, Guess asserts that the report of Dr. Carol Scott shows that
75
See Ex. B, annexed to this Opinion, for the registered Gucci Stylized
G design, as well as an exemplar of an allegedly infringing Guess product.
76
Guess’s Rule 56.1 Statement (“Guess 56.1”) ¶ 116.
77
See Gucci 56.1 ¶ 116.
78
See Second Amended Complaint at ¶ 29.
79
Guess 56.1 ¶ 117.
80
See Gucci 56.1 ¶ 37.
-24-
consumers are more likely to believe that Square G belts are produced by Guess,
rather than Gucci.81 Beyond the fact that an expert opinion is almost never
sufficient to justify granting summary judgment, Gucci presents its own expert in
rebuttal to Dr. Scott, putting her conclusions directly in dispute.82
Based on the evidence discussed above, it is reasonable to infer that
Guess knew about Gucci’s Square G mark before introducing its own. Because the
marks are nearly identical in their overall appearance, it is also a reasonable
inference that Guess had a bad faith intent to deceive consumers by using the mark.
Because bad faith is a critical element in the determination of whether an
accounting of profits is merited, Guess is not entitled to summary judgment as to
damages from Guess’s use of the Square G design.
Bad faith also gives rise to a rebuttable presumption of actual
confusion, which is necessary to obtain damages. As noted above, this presumption
is rebutted by showing that there is no likelihood of confusion based on the
relevant Polaroid factors. Such a showing cannot be made on this record.
Accordingly, summary judgment with respect to damages stemming from the use
81
See Guess 56.1 ¶ 118.
82
See Gucci 56.1 ¶ 118.
-25-
of the Square G design is denied.83
b.
The Script Guess Design84
The undisputed evidence shows that the Script Gucci mark was first
used in 1967; it also shows that Guess has been using the word “Guess” rendered
in a cursive font as a logo since the 1980s. Furthermore, there is no dispute that, in
2006, Paul Marciano, the head of Guess, purchased a book entitled “Gucci by
Gucci,” which prominently featured the Script Gucci logo on its cover.85 As noted
above, Gucci asserts that the Script Guess design of which it complains was first
used two years later – in 2008. Additionally, one of the licensees to whom Guess
provided the complained-of Script Guess design explained to a footwear buyer at
Guess that it was “the same logo font which is being used by Gucci, who is having
83
As noted in the Exclusion Opinion, surveys are typically considered
evidence of the presence or absence of actual confusion. See Gucci I, 2011 WL
5825206, at *7 n.79. The Scott Survey, which tested for point-of-sale confusion,
was excluded on the issue of post-sale confusion, but admitted on the issue of
laches. Had it been designed to test for post-sale confusion, and had it reported a
very low level thereof, it would have weighed heavily in the Polaroid balance, and
made the rebuttal of the presumption of actual confusion more likely.
84
See Ex. C, annexed to this Opinion, for the registered Script Gucci
mark, as well as exemplars of allegedly infringing and admittedly non-infringing
Guess products.
85
See Amazon.com Purchase Receipt for Paul Marciano, Ex. E to
Ederer Decl. at 32.
-26-
great success with it.”86
Based on the forgoing, and other materials in the record, there are two
competing inferences that could be drawn. First, one could reasonably infer that
Paul Marciano was reminded of the distinctiveness and sales potential of the Script
Gucci mark after seeing it on the cover of the “Gucci by Gucci” book, and
therefore directed the creative team at Guess and its licensees to copy it – thereby
acting in bad faith. Second, one might reach the equally reasonable inference that
the nearly thirty-year gap between Guess’s founding and its first use of the
complained-of Script Guess mark implies that it acted in good faith; that is, if
Guess had any ill intent in adopting the complained-of Script Guess mark, it would
have done so far earlier. A motion for summary judgment, however, cannot
resolve competing reasonable inferences.87 Accordingly, because there is a triable
issue of fact as to whether Guess used the Script Guess design in bad faith,
summary judgment with respect to an accounting of profits stemming from
Guess’s use of that design is denied.
As noted above, pointing to the absence of evidence on the issue of
actual confusion does not rebut the presumption of actual confusion that arises
86
Gucci 56.1 at ¶ 18.
87
See In re MTBE Prod. Liab. Litig., 676 F. Supp. 2d 139, 153
(S.D.N.Y. 2009).
-27-
from a finding of bad faith. Instead, a party seeking to rebut the presumption must
show that there is no likelihood of confusion, based on all the relevant Polaroid
factors. Guess makes no argument on the Polaroid factors beyond noting the
absence of actual confusion. For all these reasons, summary judgment with respect
to damages stemming from Guess’s use of the Script Guess design is denied.
c.
The GRG Stripe Design88
Guess argues that it was not involved in the selection of the GRG
Stripe design for use on its licensed footwear, and that it did not discover such use
until November 2008. Once it made that discovery, Guess directed its footwear
buyer to cancel future orders and recall current stock for all products bearing the
design, and directed its footwear licensee, MFF, not to use the design in the
future.89
Gucci disputes the evidentiary basis of all these claims. Although Paul
Vando, a footwear designer at MFF, testified in his deposition that Guess was not
involved in the decision to use the GRG Stripe design, MFF stated that three high
ranking officials at Guess – the Chief Executive Officer, the Senior Licensing
88
See Ex. D, annexed to this Opinion, for the registered GRG Stripe
design, as well as exemplars of products bearing that design from both Gucci and
Guess.
89
See Guess 56.1 ¶¶ 124-128.
-28-
Design Manager, and the Product Licensing Manager – approved the products
bearing it.90 Gucci has also produced overwhelming evidence to support the
inference that MFF intended to copy Gucci shoes, including at least one bearing
the GRG Stripe design.91 Furthermore, the evidence shows that products bearing
the GRG Stripe design remained on Guess’s e–commerce website for more than
six months after the recall was ordered.92 This is more than sufficient to raise a
disputed issue of material fact as to whether Guess used the GRG Stripe design
with a bad faith intent to deceive. Accordingly, Guess’s motion for summary
judgment with respect to an accounting of profits stemming from the allegedly
infringing use of this design is denied.93
C.
Guess Is Not Entitled to Summary Judgment on Gucci’s Square G
Claims Based on Laches
Guess asserts that it is entitled to summary judgment on Gucci’s
90
See Gucci 56.1 ¶ 127.
91
See id. ¶¶ 253-275. For example, a footwear designer at MFF
described the Guess Macario shoe as “a copy of a GUCCI sneaker.” Indeed, the
“spec sheet” sent by the factory to MFF describing the Macario had a picture of the
underlying Gucci shoe on it, rather than a Guess prototype. Moreover, footwear
designers at MFF instructed their manufacturer to “match” the GRG Stripe design,
with explicit reference to Gucci shoes and boots.
92
See id. ¶ 125.
93
Summary judgment on the issue of damages is denied for the same
reasons noted in the discussion of the Square G and Script Guess designs above.
-29-
claims relating to the Square G mark on the grounds of laches because “[t]here is
no genuine issue of material fact that senior Gucci attorneys with direct oversight
of and involvement in Gucci America’s trademark enforcement matters in the U.S.
had actual knowledge of Guess’s Square G mark over seven years before Gucci
commenced this lawsuit.”94 The record, however, supports the inference that the
attorneys to whom Guess refers – Alan Tuttle, Lorenza Bencini, and Iolanda Tursi
– were in fact employees of Gucci’s European affiliates that were not involved
with trademark enforcement matters for Gucci in America.95 While Milton
Springut, Gucci’s outside counsel for trademark enforcement in America from
1984 to 2007, stated that Tuttle was his main contact at Gucci, he also stated that
he never provided Gucci with “any representation or advice” relating to Guess’s
allegedly infringing activities.96 Furthermore, Karen Lombardo, Gucci America’s
legal co-ordinator during the relevant period, testified that she never spoke with
Tuttle about trademark matters, and that Tuttle had nothing to do with Gucci’s
94
Guess Mem. at 15 (emphasis in original).
95
See Gucci Mem. at 26. While Tuttle was listed as an employee of
Gucci America, Gucci asserts that this was for tax purposes only. See id.
96
Gucci 56.1 ¶ 79.
-30-
American operations.97
Drawing all reasonable inferences in Gucci’s favor, I conclude that
there is a genuine issue of material fact as to when Gucci itself was or reasonably
should have been aware of Guess’s allegedly infringing use of the Square G
mark.98 As the laches inquiry is critically dependent on the issue of what the senior
user knew of the junior user’s allegedly infringing activity, and when it gained
such knowledge, summary judgment based on laches is denied.
D.
Guess Is Entitled to Summary Judgment on Gucci’s Dilution
Claims with Respect to the Square G and Quattro G Designs, But
Not with Respect to the Script Guess Logo and the GRG Stripe
1.
Dr. Pham’s Expert Report
The core of Guess’s argument for summary judgment on Gucci’s
claims of trademark dilution is its repeated assertion that there is “no evidence”
that its use of the marks at issue – the Square G design, the Quattro G pattern, the
97
See 2/14/11 Deposition of Karen Lombardo, Ex. B to Ederer Decl., at
at 152:16-21 and 173:12-175:8.
98
Largely on the basis of the report of its expert Michael Kessler, Guess
also concludes that the facts show that Gucci had constructive knowledge of the
allegedly infringing use of the Square G design, independent of the knowledge of
the above-mentioned attorneys. See Guess Rep. Mem. at 7. While Gucci does not
dispute the facts on which Kessler and Guess base this conclusion, it strongly
argues that the inference of constructive knowledge is not appropriate in this case.
See Gucci 56.1 ¶¶ 89-96. This Court will not resolve a dispute over which
inferences are more reasonable on summary judgment.
-31-
Script Guess design, and the GRG Stripe design – tarnished or impaired the
distinctiveness of the relevant Gucci marks.99 Gucci argues that the report of Dr.
Michel Tuan Pham provides precisely such evidence, under either the actual
dilution standard or the likelihood of dilution standard.100 According to Gucci, Dr.
Pham – who has a Ph.D. in marketing and has taught at Columbia University’s
business school since 1994 – concluded that Guess’s use of the allegedly infringing
marks negatively impacted consumer perceptions of the quality of Gucci products
bearing the relevant Gucci marks, as well as the ability of the Gucci marks to
uniquely identify Gucci products.101
While Dr. Pham’s report is highly relevant, Gucci overstates the
degree to which it supports its dilution claims. This is because Dr. Pham
consistently couches his conclusions in conditional terms. For example, he writes
that “[a] perceived ubiquity of Gucci-like designs . . . is clearly likely to reduce the
perceived value of the original Gucci designs,” that there is a “significant risk than
[sic] some of consumers’ existing associations to the Guess brand [may] also
become linked to the Gucci brand [in such a way that] would weaken the latter’s
99
Guess Mem. at 1, 7, and 8 (emphasis in original).
100
See Gucci Mem. at 32-33.
101
See id. at 32.
-32-
brand identity,” and finally, that “among consumers who are fully aware that the
accused products are from Guess rather than from Gucci, the availability of Guccilike Guess imitations is likely to create negative consumer responses toward the
Gucci brand.”102 Although Dr. Pham also reaches more concrete conclusions,103 he
does not show that any of these risks have materialized. Accordingly, while Dr.
Pham’s report is sufficient to raise a genuine issue of material fact as to the
existence of a likelihood of dilution, it does not do so on the issue of actual
dilution.104
2.
The Applicable Standard of Dilution
102
Pham Report at 42-44.
103
See id. at 46.
104
Citing Major League Baseball Props., 542 F.3d at 311, Guess
complains that Dr. Pham’s report is precisely the kind of “entirely conclusory”
expert opinion that cannot defeat summary judgment. Guess Rep. Mem. at 9 n.16.
Guess also argues that Dr. Pham’s report “does not raise any triable issues as to
consumer associations between Gucci and [Guess’s use of the designs at issue in
this case].” Id.
While Dr. Pham’s opinions are not based on survey evidence or
anecdotal reports of consumer confusion, it does not follow that his opinions are
“entirely conclusory.” Instead, Dr. Pham applied his expertise regarding, among
other things, “brand-related associative network[s]” and “a well-known model of
perceived similarity” to his own analysis of the allegedly infringing and genuine
marks to reach the conclusion that “exposure to the [Guess designs] in the
marketplace is likely to bring to mind the Gucci brand” and that the Gucci brand
would be blurred and diluted. Pham Report at 36-38, 57. Accordingly, Dr. Pham’s
report is not the kind of “entirely conclusory” opinion that is insufficient to raise an
issue of fact as to the likelihood of dilution.
-33-
Because there is no dispute that the Square G and Quattro G designs
were first used in commerce before October 6, 2006,105 the actual dilution standard
applies to Gucci’s claims regarding those marks. Gucci has provided no credible
evidence sufficient to raise a genuine issue of material fact that any actual dilution
has occurred. Accordingly, because Gucci bears the burden of proof at trial on this
issue, summary judgment on its claims for dilution regarding these marks is
granted.
There is also no dispute that Guess first used the GRG Stripe design in
commerce after October 6, 2006. Accordingly, the “likelihood of dilution”
standard applies to Gucci’s claim for dilution with respect to this design. Because
Dr. Pham’s report raises a genuine issue of material fact as to whether Guess’s use
of this design is likely to dilute Gucci’s mark, Guess’s motion for summary
judgment on Gucci’s dilution claim with respect to this mark is denied.
The parties disagree about the date on which the Script Guess design
was first used in commerce. Guess asserts that is has used “a stylized script-font
‘Guess’ design on apparel and accessories dating back to the mid-1980s.”106 While
the examples attached to Guess’s Rule 56.1 statement show that Guess has indeed
105
See Gucci Mem. at 31; Guess Mem. at 10-11.
106
Guess 56.1 ¶ 18.
-34-
used the word “Guess” rendered in cursive font as a logo for decades, none of
those examples depict the specific configuration of which Gucci complains.
Indeed, the only evidence that Guess presents in support of its claim that it used the
complained-of configuration before October 6, 2006 is the deposition of its inhouse intellectual property counsel Theresa McManus.107 Nonetheless, several of
Guess’s licensees reported being unaware of the complained-of configuration until
2007 or 2008.108
Drawing all reasonable inferences in Gucci’s favor, I find that there is
a genuine dispute as to when Guess first used the complained-of cursive font
“Guess” logo in commerce. Accordingly, I cannot conclude at this point that
actual dilution is the appropriate standard to apply. Because the Pham Report
raised a material dispute of fact regarding the likelihood of dilution, Guess’s
motion for summary judgment with respect to this mark is denied.
E.
MFF’s Claims
1.
MFF Is Not Entitled to Summary Judgment on the Issue of
Monetary Damages Generally
MFF argues that Gucci’s evidence establishes “only that MFF takes
inspiration from and emulates features of designer fashion footwear, including
107
See id.
108
See Gucci 56.1 ¶ 18.
-35-
Gucci . . . .”109 While this inference may be reasonable, Gucci’s opposing
inference – that MFF had a bad faith intent to deceive – is equally supported by the
evidence. In a situation where the evidence supports competing inferences,
summary judgment is not appropriate.110
MFF also argues that the use of Guess logos demonstrates that it did
not act with an intent to deceive.111 However, the substantial overall similarity of
the shoes that Gucci complains of,112 together with the fact that shoes are seen from
a distance in the post-sale environment, defeats the argument that the use of Guess
logos demonstrates that MFF acted without a post-sale intent to deceive.113
109
Marc Fisher LLC’s Supplemental Memorandum of Law in Support of
Motion for Summary Judgment (“MFF Mem.”) at 3. MFF reiterates this point in
its reply brief. See Supplemental Reply Memorandum of Law in Further Support
of Defendants’ Motion for Summary Judgment (“MFF Rep. Mem.”) at 2-3.
110
See In re MTBE Prod. Liab. Litig., 676 F. Supp. 2d at 153.
Accordingly, it is irrelevant that an intent to copy is not the same as an intent to
deceive or willful deception. The evidence is substantial enough to support a
finding of bad faith.
111
See MFF Mem. at 4.
112
See Gucci 56.1 ¶ 265, attached as Ex. E at the end of this Opinion.
113
Because there is sufficient evidence to raise a genuine issue of fact as
to MFF’s intent to deceive, this also gives rise to a rebuttable presumption of actual
confusion. This presumption has not been rebutted on the summary judgment
record. Accordingly, this Court need not consider MFF’s argument that there is no
evidence of actual confusion stemming from its use of the Quattro G pattern on
footwear. See MFF Rep. Mem. at 1-2.
-36-
A bad faith intent to deceive gives rise to a presumption of actual
confusion. It is also a critical factor in determining whether an accounting of
profits is warranted. Accordingly, because there is a disputed issue of fact
regarding the existence of bad faith, MFF is not entitled to summary judgment
with respect to monetary relief, whether in the form of damages or an accounting
of profits.
2.
MFF Is Not Entitled to Summary Judgment on the Issue of
Monetary Relief for Shoes Bearing the GRG Stripe Design
MFF argues that its good faith in using the GRG Stripe design is
demonstrated by the fact that it ceased producing shoes with that design months
before Gucci filed this suit.114 After it ceased production, however, the undisputed
evidence shows that MFF distributed shoes bearing the design that it had
previously manufactured.115 Accordingly, it would be reasonable to infer that MFF
acted in bad faith by trying to maximize its profits from the design that it realized it
could not continue to manufacture. Summary judgment as to monetary relief
stemming from MFF’s use of the GRG Stripe design is therefore denied, as
competing inferences can only be resolved by the trier of fact on a full evidentiary
114
See MFF Mem. at 5.
115
See Gucci 56.1 ¶ 148.
-37-
record. 116
v.
CONCLUSION
For the reasons discussed, Guess is entitled to summary judgment on
Gucci's dilution claims relating to the Square G and Quattro G designs. With
respect to all other claims, the motions are denied. The Clerk of the Court is
directed to close these motions (Docket Nos. 182 and 188). A final pre-trial
conference is scheduled for March 13,2012 at 5:30 p.m.
SO ORDERED:
New York, New York
February 14,2012
Dated:
MFF also argues that, regardless of dispute as to its bad faith and/or
intent to deceive, Gucci is not entitled to monetary relief because the allegedly
infringing shoes that MFF produces for Guess are "quality products marketed and
sold under a famous brand name that enjoys its own distinct reputation and vast
goodwill." MFF Mem. at 6. This amounts to nothing more than a statement of
displeasure regarding the doctrine of post-sale confusion. It is not a reason to grant
summary judgment.
116
-38
-Exhibit A: The Diamond Motif Trade DressThe Unregistered Gucci Trade Dress
Gucci Exemplar
-39-
The Allegedly Infringing Guess “Quattro G” Trade Dress
Guess Exemplar
-40-
-Exhibit B: The Stylized G DesignGucci’s Registered Mark
(Trademark Reg. Nos. 3,307,082l; 2,234,272; and 2,042,805)
Exemplar: Guess Product Bearing the “Square G”
-41-
-Exhibit C: The Script Gucci DesignGucci’s Registered Mark
(Trademark Reg. No. 3,061,918)
Gucci Exemplar
Admittedly Non-Infringing Guess Exemplar
-42-
Allegedly Infringing Guess Exemplar
-43-
-Exhibit D: The GRG Stripe DesignGucci’s Registered Mark
(Trademark Reg Nos. 1,483,526 and 1,112,780)
Gucci Exemplar
-44-
Guess Exemplar
-45-
-Exhibit E: Select Accused MFF Products-
-46-
-AppearancesFor Gucci America:
Louis S. Ederer, Esq.
John Maltbie, Esq.
Matthew T. Salzmann, Esq.
Arnold & Porter LLP
399 Park Avenue
New York, New York 10022
(212) 715-1000
For Guess?, Inc., Marc Fisher Footwear LLC, The Max Leather
Group/Cipriani Accessories, Inc., Sequel AG, K&M Associates L.P., Viva
Optique, Inc., Signal Products, Inc., Swank, Inc.,:
Robert C. Welsh, Esq.
O’Melveny & Myers LLP
1999 Avenue of the Stars, Suite 700
Los Angeles, California 90067
(310) 553-6700
For Guess?, Inc.:
Andrew J. Frackman, Esq.
O’Melveny & Myers LLP
7 Times Square
New York, New York 10036
(212) 326-2000
Daniel M. Petrocelli, Esq.
O’Melveny & Myers LLP
1999 Avenue of the Stars, Suite 700
Los Angeles, California 90067
(310) 553-6700
For Marc Fisher Footwear LLC:
-47-
Darren W. Saunders, Esq.
Hiscock & Barclay, LLP
7 Time Square
New York, New York 10036
(212) 784-5800
Alpa V. Patel, Esq.
Hiscock & Barclay, LLP
2000 HSBC Plaza, 20th Floor
Rochester, New York 14604
(585) 295-4438
For The Max Leather Group/Cipriani Accessories, Inc. and Signal Products,
Inc.:
John T. Williams, Esq.
Hinkhouse Williams Walsh LLP
180 North Stetson Street, Suite 3400
Chicago, Illinois 60601
(312) 268-5767
For Signal Products, Inc.:
Kristin Marie Darr, Esq.
Steptoe & Johnson, LLP
750 Seventh Avenue, Suite 1900
New York, New York 10019
(212) 506-3900
Michael R. Heimbold, Esq.
Steptoe & Johnson, LLP
2121 Avenue of the Stars, Suite 2800
Los Angeles, California 90067
(310) 734-3200
For Swank, Inc.:
Abigail Anne Rubinstein, Esq.
-48-
Steptoe & Johnson, LLP
1330 Connecticut Avenue, N.W.
Washington, District of Columbia 20036
(202) 429-3068
Paul Fields, Esq.
Karin Fromson Segall, Esq.
Leason Ellis LLP
81 Main Street, Suite 503
White Plains, New York 10601
(914) 288-0022
Atul R. Singh, Esq.
Darby & Darby, P.C.
7 World Trade Center
250 Greenwich Street
New York, New York 10007
(212) 527-7700
-49-
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?