Invicta Gets a 55mm-sized Lawsuit

Invicta evokes a polarizing response from “watch geeks.”  Some appreciate the value-priced quality while others sniff that Invicta is merely a “TV brand” due to its ubiquitous presence on ShopNBC.  Still others delight in the (fictional) misfortunes of its CEO from disgruntled purchasers.  More recently, Invicta has been blazing a trail in the oversized watch market.  (For reference, the typical Rolex “Submariner” style dive watch case is about 40 millimeters.  Invicta is now regularly producing watches with cases over 50 millimeters in size and 20 millimeters thick.)

Video capture from 4/11/2010

Me – I’ve grown tired of the typical home shopping TV doublespeak.  “One time only” prices that magically get lower the next month; “limited editions” that are offered again and again with slight deviations in design; a “Reserve” line that was supposed to be, uh, reserved, for extra-premium timepieces that now cost less than the non-Reserve line.  I could go on.  And on.

The Invicta shows on ShopNBC do make for an entertaining evening at home.  Whether it’s the host’s thinly-veiled, juvenile jokes about “brown eye” dials and “slapping a beaver” on your wrist, or the feigned astonishment and gasps that precede “that price must be a mistake,” you can’t beat live home-shopping TV.

So I might be biased as I write about this new lawsuit against Invicta.  I take it personally.  Invicta’s CEO, Eyal Lalo, seems to be a pretty ethical guy.  Back when the host of ShopNBC’s watch shows was known as “OompaLupah” on a watch forum that I frequented, Eyal personally responded to customer questions and even sent a bunch of us a fancy Invicta watch box.  (I’ll sell mine to anyone interested if the price is right…)

Eyal also constantly remarks about how he is the named inventor on multiple patents covering the designs of Invicta watches.  He recognizes the importance of patents, and he should.  The Invicta Lupah design is widely copied by other manufacturers.

So, that’s why reading this Complaint is so tough.  Despite my love/hate relationship with Invicta and its marketing channels, I tend to support the brand overall.

A few months ago they started selling a new watch design with several interchangeable straps and bracelets.  The whole thing was packaged in a “submarine case.”  If my memory is correct, they also use a little animation that looked like a CAD drawing of the case opening up to reveal the watch and straps.  They also offer the case by itself, and I believe that several other Invicta models are shipped out in this style case now.

Imagine my surprise, then, when I saw:

Plasticase, Inc. v. Invicta Watch Company of America

(Complaint HERE, Exhibits HERE)

Damn.  The case was filed April 6, 2010 in the United States District Court for the Southern District of Florida.

The allegations are straightforward.  Eyal calls company to see about having some plastic storage cases customized for use with watches.  Company sends sample cases to Eyal.  Eyal never responds with an order or “no thanks.”  Company sees its patented case design on national TV.  Company calls Eyal to see if he intends to order any cases based on the samples.  Eyal says he is “passing on the opportunity.”  Oops.

If true, the allegations paint a very disappointing picture of this watch company and its charismatic CEO.  Plasticase is basically saying that Eyal ordered some sample cases then, rather than order from the company that designed the cases, he shipped them off to China to have them made cheaper.

As you already know from reading this blog, fairly recent changes have occurred in the infringement analysis for design patents.  In a “knockoff” case like this, the patentee-friendly Egyptian Goddess standard might not even matter.  If the case doesn’t settle soon, Plasticase should get everything it needs for a slam dunk via discovery requests.  Invoices from China and Eyal’s own conduct in ordering the samples is 80% of this case.  Add in plaintiff’s design patents and proper marking of the cases, and this should be over.

Of course, Invicta hasn’t answered yet, and the Complaint is obviously slanted to one side.  Invicta is innocent until proven guilty.  This is definitely one case that I’ll be following with interest.

I’ll even make this deal – if the case goes in Plasticase’s favor on summary judgment or via a jury verdict, via multiple choice, I’ll let my readers choose the fate of one of my Invicta watches, and I’ll post a video of the destruction.

Florida IP Trends Cracks the Crocs Case

One of the very first cases featured on Florida IP Trends was International Seaway v. Walgreens, in which Walgreens was sued for some allegedly infringing Crocs-like shoes (original post HERE).

The case involved design patent infringement and was one of the first cases in Florida to handle the Federal Circuit’s Egyptian Goddess opinion.

This is text from my original post.  I thought the Southern District misapplied the Contessa precedent:

In addition to that technicality(?), I think the court missed the overall point of Contessa.  The court used Contessa to justify excluding the insoles of the sandals from the comparison of the designs.  The reasoning was that “when a shoe is in use, it’s[sic] insole is, obviously, hidden by the user’s foot…[a]s such, this Court will not consider any aspects of the insoles of the shoes, but will consider the sole of the shoes as those are visible during use.”  Uh, except when someone happens to be WALKING ON THE SOLES!

The Court also stated that “the law requires a court to consider only those portions of the product that are visible during normal use, regardless of whether those portions are visible during the point of sale.”  While this might be true, in the case of Crocs-like shoes, I believe that the sole and insole are both visible during normal use – INCLUDING at the point of sale.  All of the Crocs and Crocs-like shoes I’ve seen for sale are hanging on a rack without boxes, thus, all sides and features are visible.  Because a feature that is more visible at the point of sale might be less visible later does not mean that the feature should be excluded.  Contessa said that the analysis should include “all ornamental features visible at any time during the normal use of the product.”  (emphasis added).  To me, this would include when the owner has the sandals sitting next to him or her on the beach, in which case the insole would be visible.

So, imagine my delight when I found out that on December 17, 2009, the United States Court of Appeals for the Federal Circuit agreed! (Fed. Cir. opinion HERE.)  Note that appeals of patent cases go directly to the Federal Circuit – that’s why we’re not discussing the 11th Circuit here.  (I also have to apologize for letting this slip through the cracks for so long.  I honestly missed the appeal.  I found out about it at the Florida Bar 1st Annual IP Symposium last week in Tampa.)

From the Federal Circuit’s opinion:

The district court here misconstrued Contessa as requiring that the normal use of a clog be limited to the time when it is worn. Contessa did not exclude the point of sale from the normal use of a product. Rather, it emphasized that normal use should not be limited to only one phase or portion of the normal use lifetime of an accused product. Id. at 1380 (citing KeyStone Retaining Wall Sys., Inc. v. Westrock, Inc., 997 F.2d 1444, 1450 (Fed. Cir. 1993)). The sale of a clog occurs after it has been manufactured and before it is ultimately destroyed. Thus, the point of sale for a clog clearly occurs during its normal use lifetime. At the point of sale, the insole is visible to potential purchasers when the clog is displayed on a shelf or rack and when the clog is picked up for examination. Similarly, removing a clog from a wearer’s foot also occurs after manufacture and before destruction of the clog, so it also falls squarely within the clog’s normal use lifetime. The wearer may remove the clog temporarily to stretch out his or her toes, leave the clogs on the beach to go for a swim, or engage in countless other activities that would leave the insole exposed.

Ok, who thinks the appellate court reads Florida IP Trends?  Me neither, but it’s still great to see the same analysis show up in the appellate opinion!

Lawlessness Among the Outlaws

Many people think of Florida as a tropical paradise with palm trees, convertibles, and theme parks lining every street.  While that may be true for some parts, Florida also has a rich deep-fried-and-countrified history filled with the cliches most people associate with Georgia, Alabama, and South Carolina.  (TruckNutz?  You can thank Florida.)

Lynyrd Skynyrd, Molly Hatchet and 38 Special?  Jacksonville, Florida.  Tom Petty and the Heartbreakers? Gainesville, Florida.  Outlaws?  Tampa, Florida.  (Source)  (It’s the last band, Outlaws, that brings us to the current lawsuit)

Band lawsuits are nothing new.  They are typically filled with allegations of broken contracts, trademark and copyright infringement, and perhaps most importantly, hurt feelings.  Band agreements are the prenup agreements for polygamous relationships that must survive the hardships of touring, recording, and basic human maturation and evolution.  No band is immune.  Some take it out on each other physically (hello, Gallagher Brothers), and some spend their hard-earned royalties to hire attorneys.  The Beach Boys, Violent FemmesDead Kennedys (I know, not very Dead Kennedy-y of them), Wilco – all have had some dispute over the band’s intellectual property.

Notwithstanding the obvious irony, the corporate machine behind the Outlaws is now seeking some legal intervention over disputes with former members.

The lawsuit was filed in the United States District Court for the Middle District of Florida, Tampa Division, on January 6, 2010.

The first thing to note is that the complaint was signed and filed by an Illinois attorney who is apparently not admitted to the Florida Bar.  Also, there is no local counsel designated, so I would expect an application for a special appearance to be filed soon, or else the complaint might be kicked out.

Also, and this is even worse – if you’re a badass Southern Rock band, make sure your attorney spells “Lynyrd Skynyrd” correctly.  It’s spelled “Lynard Skynard” in the complaint, and that’s pretty much sacrilege around these parts.

Notwithstanding the Skynyrd faux pas, the complaint is a doozy.  It even has a table of contents.  There are many allegations (trademark infringement, conversion, cybersquatting, the works…), and the prayer for relief is especially brutal – calling for the destruction of CD’s.  I encourage you to read it yourself and observe a band’s internal self-destruction.

One thing to remember – no matter who the public thinks is the “soul” or “leader” of a band, it’s generally the paperwork that ultimately matters.   (See page 44.)

Complaint and Exhibits HERE.

Floridians Perking Up As Cold Spell Retreats

I’ve been waiting for the right time to present this case, and I think the recent freezing temperatures in Florida provide the perfect backdrop for this trademark, copyright, and patent infringement lawsuit.

Nipple Shields

Superbowl XXXVII introduced the general public to the “nipple shield.”  Janet Jackson’s “wardrobe malfunction” created a huge controversy based on nine-sixteenths of a second’s worth of partially obscured nipple.

Despite this apparent trashing of our culture, the public was intrigued.  In fact, as this Google Trends graph shows, “nipple shield” searches spiked in the days following the February 1, 2004 game.

However, the nipple shield was old news to one Claudia Croft of St. Petersburg, Florida (and her company, Sheer Delight).  In June of 2003, Ms. Croft applied for a U.S. trademark registration for NIPPLE HUGGERS as applied to “jewelry – namely, wire jewelry for adorning the breast nipples of a wearer.”  She claimed a first use in commerce date of 8/21/2002.

Surprisingly, the trademark application sailed through the USPTO, and Croft simply had to disclaim “nipple.”  I would not have been surprised to see a rejection based on mere descriptiveness, but I do see how the mark is suggestive. (A trademark is merely descriptive of the goods if it “conveys an immediate idea of an ingredient, quality, characteristic, feature, function, purpose or use of the goods.” See In re Gyulay, 820 F.2d 1216 (Fed. Cir. 1987)).  While the jewelry does “hug” the wearer’s nipple, I suppose it takes some imagination to reach a conclusion as to the nature of the goods (which is one way we IP geeks try to argue around 2(e) refusals).  Regardless, there is a valid U.S. trademark registration for NIPPLE HUGGERS.

Figure from Croft's patent

But that’s not all!  Ms. Croft is apparently a wise businesswoman, and not only is she armed with a federal trademark registration, but she also owns the patent rights for her nipple hugging jewelry Nipple Huggers®.  Even better, the patent isn’t a simple design patent – it’s an actual utility patent!  This means that Croft isn’t claiming the mere design or shape of the jewelry, rather, she is claiming specific functional features.  From the patent (I believe “pedal” should be “petal”):

1. A nipple hugger jewelry system for adorning a breast of a user in a non-piercing manner comprising, in combination:

a wire fabricated of a silver based alloy having a diameter of about 0.030 inches plus or minus 10 percent whereby the wire may be readily bent by a user applying a deforming force by hand and whereby the bent wire will retain its shape after the removal of the deforming force;

a plurality of primary pedal sections, preferably five pedal sections, formed from the wire with a nipple reception circle located between the pedal sections and with the circle having a center, each pedal section extending radially outwardly from the center of the circle and formed with an essentially semi-circular exterior with a radius of curvature of about 0.250 inches, each pedal section formed with an essentially semi-circular interior with a radius of curvature of about 0.094 inches, the exterior of each pedal being located about 1.5 inches from the center of the circle and the interior of each pedal section being located about 0.250 inch from the center of the circle;

a pair of end sections formed from the wire, each end section being in a spiral shape; and

two essentially straight stem sections, each stem section extending radially from the circle with an interior point about 0.250 inches from the center of the circle formed as extensions of adjacent pedal sections and with an exterior point about 0.500 inch from the center of the circle formed as extensions of the end sections, the pedal sections and the end sections and the stem sections lying oriented in a common plane prior to use but movable to an orientation with the end sections overlapped into a locking relationship when the circle encompasses the nipple of a user with the interiors of the pedal sections in holding contact at five spaced points around the nipple of the user.

How about them apples!

Croft's NIPPLE HUGGERS

Woe unto defendants Be Wild, Inc. and Brian Cohen who are allegedly selling knockoff Nipple Hugger jewelry.  On May 8, 2009, Croft filed a complaint in the Tampa Division of the United States District Court for the Middle District of Florida.

Complaint HERE.  Exhibits HERE.

In addition to patent and trademark infringement, the complaint alleges copyright infringement (based on Croft’s copyright registration for the packaging and instructions, as well as trade dress infringement based on the packaging (this claim seems a little iffy to me).

The defendants are represented by counsel and have answered the complaint with standard denials and defenses.  The case appears to be in the discovery phase, and I haven’t seen any new substantive motions.  If there’s activity, I’ll be sure to report back.

Until then, let’s hope the ice thaws in Florida, because it has been as cold as a witch’s tit in a brass bra.  (Couldn’t resist.)

The above case seems to be a “knockoff/counterfeit” type of case – if the Defendant really did copy Plaintiff’s jewelry, packaging, instruction manual, etc., then it’s probably an open and shut case.

Ms. Croft has more recently pursued a simple trademark infringement claim against a new defendant.  This defendant, PHS International, doesn’t seem to be creating jewelry that infringes Croft’s patent or copyrights.  Instead, there is only one claim in the complaint, and that’s for trademark infringement.

Complaint and Exhibits HERE.

This case is a little bit more interesting because it looks to me as if the Defendant is using the phrase “nipple hugger” in a descriptive manner to describe its nipple-hugging jewelry and not as a trademark.  Based on that, there are several ways this case could go – including attempting to cancel the NIPPLE HUGGERS trademark based on mere descriptiveness and/or asserting a fair use defense.  I look forward to seeing the pleadings and motions as they are filed.

Featured Case: Rudolph and Me, Inc. v. Timmy Woods Beverly Hills, Ltd. et al

It’s time for another Featured Case on Florida IP Trends.  This case was filed in the Middle District on April 28, 2009.  This is admittedly a little early to be a featured case (no Answer has been filed), but the facts are fun, and I spotted an interesting side issue that I would like to explore.

Rudolph and Me, Inc. v. Timmy Woods Beverly Hills, Ltd. et al, Case No.8:2009-cv-00796 (M.D. FL)

Complaint | Exhibit A | Exhibit B

The main issue in Rudolph and Me is copyright infringement.  I have recruited my colleague, Amber Neilson, to write an article about the copyright issues, and her post is forthcoming.

The basic facts are that the Plaintiff, Rudolph and Me, Inc., designs and sells Christmas ornaments.  While attending a trade show earlier this year they spotted Defendant Timmy Woods selling a purse that looks remarkably similar to one of Plaintiff’s ornaments.

The copyright analysis will be posted shortly, but while I was exploring the Timmy Woods website, I noticed that Ms. Woods also designed an “Obama Bag” using the ubiquitous “Obama ‘O’ Logo.”  For more on that, check out this post.

Something smells shrimpy in the Southern District

If you remember the very first post on Florida IP Trends, you’ll know that one of the things I’m interested in tracking is how Florida courts will be handling the Egyptian Goddess decision.

It looks like we have our first contender:

INTERNATIONAL SEAWAY TRADING CORPORATION, Plaintiff,

v.

WALGREENS CORPORATION and TOUCHSPORT FOOTWEAR USA, INC., Defendants.

This is a recent Southern District case that granted a defendant’s motion for summary judgment concerning the validity of several design patents.  A more thorough analysis of the case is forthcoming, but the basic facts are that the Defendant, Walgreens Corporation, was sued for design patent infringement by the owner of several design patents relating to sandals similar to those squishy ones that Chef Mario Batali wears.  Love ’em or hate ’em, we’re talking about Crocs.  And it’s actually Crocs that bit the Plaintiff as prior art which invalidated its patents, thus Defendant’s Crocs knockoffs couldn’t infringe Plaintiff’s Crocs knockoffs.

But – the reason for this post is different.  In its analysis of which features of the designs should be compared, the court used the widely-cited case of Contessa Food Products v. Conagra, IncContessa is often cited for the proposition that when comparing a patented design to an accused design for purposes of similarity, only those features that are visible during normal use should be considered.  Features that are concealed during use should not be considered.

Now, as the name of the case hints, “Contessa Foods” had something to do with food.  In fact, the design at issue was a shrimp platter.  We’ve all seen them at the grocery store – the round plastic  container with a domed lid with scores of shrimp lined up and waiting for some cocktail sauce.

Contessa is a well-known case – cited 101 times in other cases, and 140 times in law journals, motions, and other papers.  So it came as a pretty big surprise when the Southern District wrote:

Contessa Food involved a patent for cabinet doors. That court held that the interior hinge of the door was visible during the use of the product because, even though not always visible, the interior door hinges were visible when the cabinet doors were open.
Int’l Seaway Trading Corp. v. Walgreens Corp., 2009 U.S. Dist. LEXIS 6240 (S.D. Fla. Jan. 22, 2009)

Um, no it didn’t.  Contessa did cite to a different case that dealt with cabinet door hinges (Keystone), but Contessa Food most certainly did not “involve[] a patent for cabinet doors.”  I might just be being picky over a little mistake, but that seems like a pretty big “oops” to me.

sandal1In addition to that technicality(?), I think the court missed the overall point of Contessa.  The court used Contessa to justify excluding the insoles of the sandals from the comparison of the designs.  The reasoning was that “when a shoe is in use, it’s[sic] insole is, obviously, hidden by the user’s foot…[a]s such, this Court will not consider any aspects of the insoles of the shoes, but will consider the sole of the shoes as those are visible during use.”  Uh, except when someone happens to be WALKING ON THE SOLES!

The Court also stated that “the law requires a court to consider only those portions of the product that are visible during normal use, regardless of whether those portions are visible during the point of sale.”  While this might be true, in the case of Crocs-like shoes, I believe that the sole and insole are both visible during normal use – INCLUDING at the point of sale.  All of the Crocs and Crocs-like shoes I’ve seen for sale are hanging on a rack without boxes, thus, all sides and features are visible.  Because a feature that is more visible at the point of sale might be less visible later does not mean that the feature should be excluded.  Contessa said that the analysis should include “all ornamental features visible at any time during the normal use of the product.”  (emphasis added).  To me, this would include when the owner has the sandals sitting next to him or her on the beach, in which case the insole would be visible.

Like I said earlier, a more thorough discussion of how this case used Egyptian Goddess for anticipation purposes is forthcoming, but I had to post about the Contessa issues early because they were bothering me.

By the way – Plaintiff has appealed, so we should have some more fun with this one later.

Featured Case – Great Neck Saw Manufacturers

One of the main features of the Florida IP Trends blog is a focused look at Florida intellectual property cases. I plan to provide a weekly list of IP cases filed in the Northern, Middle, and Southern District Courts in Florida. From those cases, I’ll pick one or two per month as the Featured Case.

I’ll also provide documents and commentary related to these cases as a service to fellow attorneys and the public. The Featured Cases will contain interesting legal claims, procedural issues, or other “standout” topics that will be of interest to those tracking IP cases in Florida.

With that, here is Florida IP Trend’s first Featured Case:

Great Neck Saw Manufacturers, Inc. v. Iron Bridge Tools, Inc., et. al., Case No. 1:08-cv-23266

[Download a copy of the Complaint HERE]

Plaintiff Great Neck Saw Manufacturers (“Great Neck”) is a New York corporation and the assignee of U.S. Patent Nos. 7,040,022 (the ‘022 patent), D495,039 (the ‘039 patent), D501,782 (the ‘782 patent), D510,250 (the ‘250 patent), D526,877 (the ‘877 patent), D528,895 (the ‘895 patent), and D543,822 (the ‘822 patent) – all which are allegedly infringed by the Defendants’ knives. Great Neck also alleged trade dress infringement, false designation of origin, unfair competition, unprivileged imitation, and passing off.

Defendants Iron Bridge and Black Pearl are Florida corporations while Defendant Everpower is a Chinese corporation. Defendants allegedly infringed Great Neck’s utility and design patents for folding utility knives, including knives sold under the HUSKY brand name.

I’m tracking this case in part due to the design patent claims. There are very few reported design patent infringement cases post-Egyptian Goddess, which set out the new “familiar ordinary observer” standard. At least one of the cases interpreting the new test seems to have used the “three-way test” (in which the prior art, accused design, and patented design are simply compared against one another) despite stating that its analysis was based on the familiar ordinary observer test. See Arc’Teryx Equip., Inc. v. Westcomb Outerwear, Inc., 2008 U.S. Dist. LEXIS 90228 (D. Utah Nov. 3, 2008).

Another interesting aspect to this case is the trade dress infringement claim. In order for trade dress to be protectable, the asserted features must not be functional, rather, they must be ornamental in nature. In reciting the trade dress in the utility knives, Great Neck stated in its Complaint:

Great Neck’s trade dress consists of the non-functional features and appearance of its utility knives comprising the shapes, size and appearance of the various parts of the utility knives.

At least one court in Florida has dismissed a trade dress claim for such an ambiguous description of a product’s trade dress. In Knights Armament v. Optical Sys. Tech., the Middle District chastised the Plaintiff with:

[Plaintiff] alleges that its trade dress is not functional and is distinctive, with respect to finish, shape, and exterior design, but does not explain why it is distinctive and nonfunctional, nor what actually comprises the trade dress or how the Knights Defendants infringe on it … These sparse facts and conclusory allegations constitute a mere recitation of the elements of the cause of action for trade dress infringement, which is insufficient to survive a motion to dismiss. Twombly, 127 S. Ct. at 1965. Thus, the Court holds that OSTI’s claim of trade dress infringement is dismissed without prejudice.
– Knights Armament Co. v. Optical Sys. Tech.
, 568 F. Supp. 2d 1369, 1376-1377 (M.D. Fla. 2008)

I’ll update this post as new developments occur, and I look forward to seeing how Florida courts begin to interpret the recent Egyptian Goddess decision.

Posted by: Kevin Wimberly