Opinion ID: 586833
Heading Depth: 2
Heading Rank: 3

Heading: basch's cross-appeal

Text: A. The District Court's Injunction 53 The district court's injunction restrained Blue Coral from using the present EVER BRITE trade dress in the United States, but authorized the defendant 54 to manufacture, sell and distribute metal polishing cleaners in the same shape and size containers as previously used in the infringing trade dress if the color of the can is either silver or red ... with leave granted to plaintiff for additional relief based upon a showing of actual confusion. 55 The court's order also permitted Blue Coral to continue using its present trade dress outside of the United States, and to sell off its remaining inventory of infringing cans. 56 In its cross-appeal, Basch argues that this relief was insufficient. Specifically, Basch contends that: (1) the substantive breadth of the injunction is too narrow--i.e., a can by any other color is likely to confuse; (2) Blue Coral's authorization to use the trade dress outside the United States was based upon the court's erroneous legal conclusion that it lacked extraterritorial jurisdiction; and (3) the court erred in allowing Blue Coral to sell off its remaining inventory without ordering the defendant to account for the profits obtained from those sales. We find no merit in any of these arguments. 57 It is axiomatic that the contours of an injunction are shaped by the sound discretion of the trial judge and, barring an abuse of that discretion, they will not be altered on appeal. Springs Mills, Inc., 724 F.2d at 355. Moreover, a finding of likelihood of confusion in an infringement action does not automatically compel the issuance of an injunction.... Jim Beam Brands Co. v. Beamish & Crawford Ltd., 937 F.2d 729, 737 (2d Cir.1991), cert. denied, --- U.S. ----, 112 S.Ct. 1169, 117 L.Ed.2d 415 (1992); see also Soltex Polymer Corp. v. Fortex Industries, Inc., 832 F.2d 1325, 1329-30 (2d Cir.1987). If the trial judge ultimately determines that injunctive relief is warranted, the relief granted should be no broader than necessary to cure the effects of the harm caused. Soltex Polymer Corp., 832 F.2d at 1329. 58 The instant injunction is consistent with these principles. First, given the fact that the EVER BRITE trade dress is, at best, only moderately similar to the overall appearance of the NEVR-DULL can, we agree with the district court that there was no need for Blue Coral to make major aesthetic changes. Basch was unable to produce any evidence of actual consumer confusion between NEVR-DULL and EVER BRITE during the approximately three years that EVER BRITE used the infringing trade dress. This suggests to us that the likelihood of confusion created by Blue Coral was minimal, see Plus Products v. Plus Discount Foods, Inc., 722 F.2d 999, 1006 (2d Cir.1983), thereby requiring only minimal correction. The district court's assessment that a change of can color would supply the needed distinction between products seems reasonable. In any event, the district court granted Basch leave to apply for additional relief upon a future showing of actual confusion. 59 Second, there is absolutely no merit to Basch's argument that the district court refused to enjoin Blue Coral's use of the infringing trade dress in Canada because the court erroneously concluded that it lacked extraterritorial jurisdiction to do so. The district judge explicitly stated that unless the plaintiff can show that it is somehow damaged by the sales of the Evr-Brite [sic] product in the cans ... I will not enjoin the sale of Evr-Brite [sic] in Canada. Thus, the court's decision was based upon the plaintiff's lack of injury--not its own lack of power. Cf. Playboy Enterprises v. Chuckleberry Pub., Inc., 511 F.Supp. 486, 495-96 (S.D.N.Y.1981), aff'd, 687 F.2d 563 (2d Cir.1982) (declining to enjoin foreign use of infringing mark where [p]laintiff ha[d] not submitted evidence to determine whether consumers in other nations would also be confused). 60 Finally, we cannot fault the district court for allowing Blue Coral to liquidate its remaining inventory of infringing cans without requiring the defendant to account for the profits on those sales. Our approval stems largely from the fact that Basch never moved for a preliminary injunction to restrain Blue Coral's use of the trade dress in question. Actions speak louder than words, and motions speak loudest of all. Since Basch itself apparently concluded that the economic loss it was suffering, if any, did not warrant a remedy from the outset of this action, we cannot say that the district court abused its discretion in allowing Blue Coral to sell off its remaining cans and retain the profits. Cf. E.I. Du Pont de Nemours & Co. v. Yoshida Int'l, Inc., 393 F.Supp. 502, 528 (E.D.N.Y.1975) (in minimizing injury to good faith infringer, injunction may provide for a grace period before use of infringing mark is permanently restrained); Carling Brewing Co. v. L. Fatato, Inc., 305 F.Supp. 1070, 1071 (E.D.N.Y.1969) (use grace period incorporated into permanent injunction). B. Attorney Fees 61 The Lanham Act provides that [t]he court in exceptional cases may award reasonable attorney fees to the prevailing party. 15 U.S.C. § 1117(a). The decision whether or not to award such fees also rests within the broad discretion of the district judge. Getty Petroleum Corp. v. Bartco Petroleum Corp., 858 F.2d 103, 114 (2d Cir.1988), cert. denied, 490 U.S. 1006, 109 S.Ct. 1642, 104 L.Ed.2d 158 (1989). Basch argues that the district judge abused his discretion in denying its application for reasonable attorney fees. We disagree. In view of the fact that there was no finding of bad faith infringement in this case, indeed the jury specifically found that Blue Coral's actions in fashioning its EVER BRITE trade dress were not egregious, we find no abuse of discretion here. Orient Express Trading Co., Ltd. v. Federated Dep't Stores, Inc., 842 F.2d 650, 655 (2d Cir.1988).