Opinion ID: 2974026
Heading Depth: 4
Heading Rank: 1

Heading: Point-of-Sale Confusion

Text: Likelihood of confusion at the point of sale involves a purchaser’s confusion as to a product’s origin or sponsorship occurring at the time of purchase. 3 McCarthy, supra, at § 23:5. The points of sale for most of Tong Yang’s grilles are collision repair shops, but some are sold No. 05-1712 General Motors Corp. v. Keystone Page 4 Automotive Industries, et al. directly to individuals over the internet. We need not exhaustively apply the eight-factor test to reach the rather obvious conclusion that there is no likelihood of confusion at the point of sale because buyers are expressly informed that they are not purchasing GM grilles. There can be no likelihood of confusion at the point of sale where a defendant conspicuously and unequivocally informs buyers that the defendant, and not the plaintiff, is the source of the product. In Ferrari S.P.A. Esercizio, this Court noted that there was no likelihood of point-of-sale confusion where a manufacturer of “knockoff” Ferraris informed his purchasers that his significantly cheaper cars were not genuine Ferraris. 144 F.2d at 1244-45. Similarly, customers knowing they are purchasing a knockoff designer purse or Rolex watch simply do not confuse the counterfeit with the original. See Hermes Int’l v. Lederer de Paris Fifth Ave., Inc., 219 F.3d 104, 107-08 (2d Cir. 2000); Rolex Watch U.S.A., Inc. v. Canner, 645 F. Supp. 484, 487-88 (S.D. Fla. 1986). Likewise, in the instant case, no purchaser has reason to be confused as to the origin of the replacement grilles. Collision repair shops ordering Tong Yang parts do so intentionally and generally at the bidding of insurance companies because non-original equipment is less expensive and reduces the cost of repairing a vehicle. Moreover, GM grilles are made by Siegel-Robert, Inc., and carry the molded letters “SRI” to identify their origin, whereas Tong Yang grilles are marked “OTN” and “Made in Taiwan.” In addition, Tong Yang grilles are shipped in boxes and packaging markedly different from those containing GM grilles with conspicuous logos of Tong Yang and/or Keystone. The invoice accompanying Tong Yang parts conspicuously carries the following disclaimer: THESE REPLACEMENT PARTS ARE NOT MANUFACTURED BY THE ORIGINAL MANUFACTURER. THESE PARTS ARE REPLACEMENT FOR THE OEM PARTS, AND MANUFACTURED IN TAIWAN FOR NORTH AMERICA MARKET. (J.A. at 0373, 0382.) An automobile owner would have to possess complete ignorance of this disclaimer, her insurance contract, and ordinary automobile repair practices to be confused as to the origin of a Tong Yang grille when getting her vehicle repaired. Individuals purchasing grilles directly from Keystone over the internet receive the same source information as collision repair shops and likewise could scarcely be confused. In short, the transparent and conspicuous indications that Tong Yang manufactured its grilles make confusion at the point of sale all but impossible.