Opinion ID: 612451
Heading Depth: 1
Heading Rank: 14

Heading: Refusal to Enjoin Appellees From Using PATSY'S Outside of Manhattan

Text: Appellants argue that the district court should have enjoined appellees from using the mark PATSY'S outside of the current Manhattan locations. In so arguing, they rely on the jury's findings that: (i) the Staten Island and Syosset appellees engaged in trademark infringement, unfair competition, and injury to business reputation; (ii) the Syosset appellees' trademark infringement was willful; and (iii) the Staten Island and Syosset appellees' use of the PATSY'S and/or PATSY'S PIZZERIA marks exceeded the scope of their license with I.O.B. Realty. However, there was no abuse of discretion by the district court. Because the district court validly cancelled appellants' registrations, appellants are no longer entitled to the presumptive right to use the marks nationwide that a federal registration provides. See 15 U.S.C. § 1115(a). Nor did this litigation address the parties' rights beyond Manhattan, Staten Island, and Syosset. Indeed, none of the jury findings that appellants rely upon involves misconduct by the intervening appellees, in contrast to the Staten Island and Syosset appellees. We, therefore, turn to the district court's failure to enjoin the Staten Island appellees and the Syosset appellees from using the mark PATSY'S. After this action was brought, the Staten Island location closed, and appellants do not claim that it will be reopened. As a result, it was not an abuse of discretion to refuse to enjoin the Staten Island appellees. As for the Syosset location, the district court did grant some injunctive relief to appellants, although not as broad as they would have liked. Rather than enjoining the Syosset defendants from using the mark PATSY'S in any manner, the district court entered an injunction that prohibits the Syosset defendants from using the term Trattoria Impazzire and also requires them to place a sign in their front window disclaiming any association with Patsy's Italian Restaurant for at least three years from the date of judgment. Patsy's Italian Rest. IV, 575 F.Supp.2d at 469. See supra note 2. Appellants argue that these injunctions are insufficient because the term PATSY'S is more than three times the size of the word PIZZERIA in the signs of both the Syosset and Staten Island locations. Appellants' Br. at 40. Appellants also argue that the disclaimer sign is insufficient because it is not visible to the public, particularly to those driving by the Syosset location and those visiting the Syosset location's website. Finally, appellants argue that the removal of the Trattoria Impazzire sign is insufficient because it does not alter the nature of the Syosset location's menu. A district court has a `wide range of discretion in framing an injunction in terms it deems reasonable to prevent wrongful conduct.' Soltex Polymer Corp. v. Fortex Indus., Inc., 832 F.2d 1325, 1329 (2d Cir.1987) (quoting Springs Mills, Inc. v. Ultracashmere House, Ltd., 724 F.2d 352, 355 (2d Cir.1983)). Given the district court's great flexibility in fashioning relief, see Soltex, 832 F.2d at 1329, we have frequently recognized that the use of a disclaimer sign can, in the right circumstances, be appropriate relief. See Jim Beam Brands Co. v. Beamish & Crawford Ltd., 937 F.2d 729, 737 (2d Cir.1991); Soltex, 832 F.2d at 1329-30; Springs Mills, 724 F.2d at 355. Whether such a disclaimer is appropriate depends on the circumstances of the relevant business and its consumers. Home Box Office, Inc. v. Showtime/The Movie Channel Inc., 832 F.2d 1311, 1315 (2d Cir.1987). Here, the removal of the Trattoria Impazzire sign, combined with the disclaimer, is a permissible balancing of the equities. The fact that the term PATSY'S may be larger than the term PIZZERIA in the sign does not alter this conclusion. Nor are we persuaded by appellants' argument that the menu remains the same. The district court did not abuse its discretion by declining to delve into the minute details of permissible menu items (unseen until passing the disclaimer sign) for the Syosset restaurant. As for appellants' allegations regarding the disclaimer sign, many of these allegations suggest that the Syosset appellees are not complying with the injunction. This is a matter properly brought up with the district court. Springs Mills, 724 F.2d at 356. Nor do the remaining allegations convince us that the injunction was not proper relief.