Opinion ID: 699542
Heading Depth: 2
Heading Rank: 4

Heading: TOR's Delay and Irreparable Harm

Text: 55 Saban next contends that the district court erred in finding irreparable harm by failing to consider TOR's delay in seeking to enforce its alleged rights. 56 Delay is typically relevant to both irreparable harm and to laches, although the latter doctrine relates only to permanent relief. In the instant case, delay is, as noted, also relevant to likelihood of success on the merits because it might be considered relevant to the intent of the parties in executing the Agreement. 57 A district court should generally consider delay in assessing irreparable harm. See Majorica, S.A. v. R.H. Macy & Co., 762 F.2d 7, 8 (2d Cir.1985) (per curiam); see also Fisher-Price, Inc. v. Well-Made Toy Mfg. Corp., 25 F.3d 119, 124-25 (2d Cir.1994); Citibank, N.A. v. Citytrust, 756 F.2d 273, 277 (2d Cir.1985). Although Judge McKenna did not explicitly mention TOR's delay in connection with irreparable harm, he discussed it in connection with the merits, and his findings are directly relevant to the irreparable harm issue. We need not remand, therefore. 58 Most of the caselaw on this issue involves trademark and copyright disputes, where a presumption of irreparable harm arises once a plaintiff establishes a likelihood of success on a claim. In that context, we have affirmed that a delay in filing suit will not rebut the presumption of irreparable harm if the plaintiff does not know how severe the infringement is. See Clifford Ross Co. v. Nelvana, Ltd., 710 F.Supp. 517, 521 (S.D.N.Y.1989), aff'd without opinion, 883 F.2d 1022 (2d Cir.1989); see also Playboy Enters. v. Chuckleberry Publishing, 486 F.Supp. 414, 434-35 (S.D.N.Y.1980) (noting that parties should not be encouraged to sue before a practical need to do so has been clearly demonstrated). Similarly, a delay caused by a plaintiff's good faith efforts to investigate an infringement does not rebut the presumption of irreparable harm. See King v. Innovation Books, 976 F.2d 824, 831 (2d Cir.1992) (author's eight-month delay in filing claim did not rebut presumption of irreparable harm because he spent that time trying to obtain a copy of the infringing screenplay and movie). In Fisher-Price, the plaintiff heard a rumor that infringing dolls were being sold in toy stores. It notified its sales force to search for the competitor's doll, but the search was fruitless for some five months, and it sought an injunction approximately six months after first hearing the rumor. We held that this did not constitute unreasonable delay and that, accordingly, Fisher-Price deserved the presumption of irreparable harm. 25 F.3d at 125. 59 The cases in which we have found that a delay rebutted the presumption of irreparable harm are trademark and copyright cases in which the fair inference was drawn that the owner of the mark or right had concluded that there was no infringement but later brought an action because of the strength of the commercial competition. See Majorica, 762 F.2d at 8 (plaintiff aware of conduct for several years prior to motion for preliminary injunction and did not seek injunction until seven months after suit was filed); Citibank, 756 F.2d at 276 (plaintiff waited more than ten weeks after learning directly, and nine months after learning through the press, of defendant bank's plans to open a branch in its territory). In these cases, it appeared indisputable that the trademark or copyright owners were well aware of their rights and had concluded that they were not violated. Finally, in these cases, the defendant had taken costly steps during the period of delay that would be at least temporarily undone by injunctive relief. 60 In the instant case, the district court found that approximately four months elapsed from the time Doherty first heard of the Power Rangers in January 1994, to her attempts to contact Saban about publishing books in May. The record reveals that Doherty delayed two or three weeks after learning definitively that another publisher had produced a Power Rangers book. At that point, her calls to Saban were neither accepted nor returned, thus causing further delay. Judge McKenna noted that Doherty was not a lawyer and was not aware of, or did not appreciate, the actual terms of the contract. Given that finding, no inference can be drawn that she actually believed TOR had no right to prevent licensing of the Power Rangers. Moreover, the preliminary relief ordered does not interfere with Saban's existing licensing arrangements. We thus conclude that Judge McKenna properly considered TOR's delay with regard to the irreparable harm issue.