Opinion ID: 699661
Heading Depth: 2
Heading Rank: 3

Heading: Dismissal of Gasser's Trade-Dress Claim

Text: 28 In summarily dismissing, on its own motion, Gasser's trade-dress claim as barred by laches and estoppel, the district court stated that the test for these defenses in the context of trademark infringement is substantially the same as the test ... in the context of patent infringement, and that Gasser had known since 1983 that Infanti used its trade dress but unreasonably delayed commencement of this action, to the detriment of Infanti. Mem. and Order at 17. In so ruling, the district court erroneously assumed that the facts pertinent to Gasser's trade-dress claim were necessarily identical to those pertinent to the patent claim. 29 Unlike patent rights, which arise at issuance of the patent, rights in trade dress arise when the overall appearance attains recognition and association among the relevant consumer group. See Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. ----, ----, 112 S.Ct. 2753, 2756, 120 L.Ed.2d 615 (1992); Brandir Int'l, Inc. v. Cascade Pacific Lumber Co., 834 F.2d 1142, 1148 (2d Cir.1987). Thus, the precise time at which trade-dress rights accrue is uncertain, and on summary judgment the district court could not assume that Gasser knew it had trade-dress rights when it contacted Infanti in 1983. Cf. Advanced Cardiovascular, 988 F.2d at 1161, 26 USPQ2d at 1041-42 (delay is determined from the time the plaintiff has a known claim of infringement). 30 Even if Gasser thought he had trade-dress rights as of that time, one cannot be guilty of laches until his right ripens into one entitled to protection. Schieffelin & Co. v. Jack Co. of Boca Inc., 850 F.Supp. 232, 252, 31 USPQ2d 1865, 1880 (S.D.N.Y.1994) (quoting Johanna Farms, Inc. v. Citrus Bowl, Inc., 468 F.Supp. 866, 881, 199 USPQ 16, 28 (E.D.N.Y.1978)). Based on a record relating only to the patent claim, the district court concluded that Gasser has known since 1983 that Infanti used its trademark. Mem. and Order at 17. Yet Infanti submitted no proof that Gasser knew or should have known that it had such rights to assert against Infanti in 1983. Moreover, the reasonableness of Gasser's delay in asserting his trade-dress rights could depend in part on how much damage Gasser believed it was suffering as a result of the trade-dress infringement. See Aukerman, 960 F.2d at 1033, 22 USPQ2d at 1329 (the extent of the infringement is a recognized excuse for delay (citing Tripp v. United States, 406 F.2d 1066, 1071, 157 USPQ 90, 94 (Ct.Cl.1969))). This analysis, in turn, would depend on factors that are not relevant to the claim of patent infringement, such as the likelihood of consumer confusion as to the sources of the two products. See, e.g., Two Pesos, 505 U.S. at ----, 112 S.Ct. at 2756. 31 Trade-dress rights are separate and distinct from patent rights in other ways as well. See In re Mogen David Wine Corp., 328 F.2d 925, 929, 140 USPQ 575, 578-79 (CCPA 1964). For example, the public interest element of trade-dress law, which seeks to prevent consumer confusion over products with similar appearance, may lead a court to grant injunctive relief despite the plaintiff's delay in bringing suit. Cf. Wallpaper Mfrs., Ltd. v. Crown Wallcovering Corp., 680 F.2d 755, 766, 214 USPQ 327, 336 (CCPA 1982) (WPML may have considered that confusion could be avoided if both companies operated as they had.... The courts should not discourage such voluntary accommodations.); Conagra, Inc. v. Singleton, 743 F.2d 1508, 1517, 224 USPQ 552, 558-59 (11th Cir.1984) ([A] court determining whether the doctrine of laches estops the plaintiff from asserting its rights also must consider the public's interest in the trademark as a definite designation of a single source of the goods.). 32 A court may enter summary judgment on a ground different from those mentioned in the motion only if the parties have had an adequate opportunity to argue and present evidence on that point and summary judgment otherwise is appropriate. 10A Charles A. Wright, Arthur R. Miller & Mary K. Kane, Federal Practice and Procedure Sec. 2719, at 15 (2d ed.1983). Here, Gasser did not have that opportunity, and several unresolved issues of material fact made summary judgment inappropriate.