Court Opinion

ID: 9472794
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:11:06.342149+00
Date Added: 2024-06-11T17:43:09.134117
License: Public Domain

GILES, District Judge,
dissenting.
I am unable to agree with the conclusions reached by the majority on the issues of secondary meaning and passing off. Accordingly, I respectfully dissent. Although the court below articulated the appropriate legal standard for secondary meaning under both New Jersey and federal law, it failed to apply properly that standard to the record evidence. With respect to passing off, I conclude that the majority should have decided what effect, if any, Inwood v. Ives, 456 U.S. 844, 102 S.Ct. 2182, 72 L.Ed.2d 606 (1982), has on the controlling precedent in this Circuit, SK&F Co. v. Premo Pharmaceutical Laboratories, Inc., 625 F.2d 1055 (3d Cir.1980). Resolution of this issue would provide necessary guidance to the lower courts within this Circuit. In addition, I conclude that there was insufficient evidence to support the district court’s finding that Bolar copied the trade dress of APRESAZIDE with the intent to induce illegal substitution. Therefore, I would reverse the decision below and dissolve the permanent injunction.
As the majority points out, because the court below converted the injunction from preliminary to permanent without making any additional findings, we must view the previous determinations of likelihood of success on the merits as ultimate findings of success on the merits. That quantum of evidence which suffices for the grant of a preliminary injunction will not necessarily be sufficient for permanent injunctive relief. Therefore, we are obligated to review the record in this case afresh.
I. SECONDARY MEANING
To prevail on a claim of unprivileged imitation, CIBA must prove both nonfunctionality and secondary meaning. This is true under both the Lanham Act and New Jersey common law. See e.g., SK & F, 625 F.2d at 1062-63, 1065; French American Reeds Mfr. Co., Inc. v. Park Plastics Co., Inc., 20 N.J.Super. 325, 333-34, 90 A.2d 50, 54-55 (1952). I agree with the majority’s analysis and conclusions with respect to functionality. However, I am unable to agree that CIBA has proven that the trade dress of APRESAZIDE has acquired secondary meaning. Although the federal and state law is almost identical on this issue, I will analyze each.
A. Federal Law
To establish secondary meaning, “a manufacturer must show that, in the minds of the public, the primary significance of a product feature or term is to identify the source of the product, rather than the product itself.” Ives, 102 S.Ct. at 2186 n. 11 (citing Kellogg Co. v. National Biscuit Co., 305 U.S. 1, 118, 59 S.Ct. 109, 113, 83 L.Ed. 73 (1938)). See also Freixenet, S.A., et al. v. Admiral Wine & Liquor Co., et al., 731 F.2d 148, at 152 (3d Cir.1984); Ideal Toy Corp. v. Plawner Toy Mfr. Corp., 685 F.2d 78, 82 (3d Cir.1982); Scott Payer Co. v. Scott’s Liquid Gold, Inc., 589 F.2d 1225, 1228 (3d Cir.1978). This court stated in Ideal Toy; “[w]hen the primary significance of the trade dress to a consumer is in designating not the yroduct but its yroducer, the trade dress has acquired secondary meaning.” Ideal Toy, 685 F.2d at 82 (emphasis added). At the very least, it must be proven that the consumer links the trade dress with a single, albeit unnamed, source. See Processed Plastic Co. v. Warner Comm., Inc., 675 F.2d 852, 856 (7th Cir.1982); Scott Payer, 589 F.2d at 1228. Various factors have been held to be probative of secondary meaning, including the extent of sales and advertising, the length of use, buyer associ*857ation and the fact of copying. Ideal Toy, 685 F.2d at 82.
In finding that CIBA had established secondary meaning, the district court relied primarily upon the factors identified in Ideal Toy, including the extensive advertising to promote APRESAZIDE, the continuous use of the trade dress, the drug’s great commercial success and the fact of copying. See CIBA-GEIGY v. Bolar Pharmaceutical Co., Inc., 547 F.Supp. 1095, 1101-102, 1105, 1113-14 (D.N.J.1982). Likewise, the majority relies upon these factors in affirming the district court’s conclusions on this issue. See Majority Opinion at 852-853. However, these factors are merely indicia of secondary meaning. Focus should not be diverted from the main inquiry — whether the trade dress signifies the producer or source of the product in the minds of the public. The district court found that “patients taking APRESAZIDE products have come to associate the trade dress of those capsules with the brand name APRESAZIDE as representing a single source of supply although not with the particular manufacturer.” CIBA, 547 F.Supp. at 1102.1 Thus, the association between the trade dress and the name APRESAZIDE was deemed sufficient to denote a single source. However, there was simply no evidence that patients link the word APRESAZIDE with a single, albeit anonymous source. Nor was there any evidence to suggest that patients recognized that the word APRESAZIDE was a brand name and registered trade-mark.2 Rather than denoting the source or a source, the word APRESAZIDE probably identifies the product and its function, (e.g., “my blood pressure medicine”), which is not sufficient for secondary meaning. See Ives, 102 S.Ct. at 2186 n. 11; Ideal Toy, 685 F.2d at 82.
The promotional techniques necessarily employed by the pharmaceutical industry set it apart from more consumer-oriented fields. All promotional efforts are directed at physicians and pharmacists, leaving the ultimate consumer uneducated as to the source of the prescription drug. On this score, I am persuaded by the observations and reasoning of Judge Nickerson in the district court opinion in Ives. He stated:
No doubt to physicians and pharmacists the word “Cyclospasmol” signifies a source. But there is no reason to suppose this is so as to patients. They have not been the target of the sales campaigns, and they play no role in choosing what drugs to buy. Nothing in this record suggests that they ‘understand by the word anything more than a kind of drug to which for one reason or another they [have] become habituated.’ Bayer Co. v. United Drug Co., 272 Fed. 505, 510 (S.D.N.Y.1921) (L. Hand, J.). Such patients as read their prescriptions do not attribute to Cyclospasmol “any other meaning than as an ingredient in a general compound, to which faith and science might impart therapeutic virtue.” Id.
Thus, one cannot infer from the fact that patients recognize the name Cyclospasmol that they appreciate that the drug they receive comes from a single source. If they do not know that the word designates a single source, it follows that a color they associate with the name does not signify to them a single source and cannot acquire a secondary meaning.
*858Ives Laboratories, Inc. v. Darby Drug Co., Inc., 488 F.Supp. 394, 400 (E.D.N.Y.1980), rev’d on other grounds, 638 F.2d 538 (2d Cir.1981), rev’d sub nom., Inwood v. Ives, 456 U.S. 844, 102 S.Ct. 2182, 72 L.Ed.2d 606 aff’d on remand, 697 F.2d 291 (2d Cir.1982).
In the context of the pharmaceutical industry, the Ideal Toy factors also become somewhat less meaningful. The amount of advertising and promotion, which normally helps to familiarize consumers with a product, is not relevant as it is never seen by the public. Similarly, the volume of sales is not telling where the consumer does not choose the particular drug. The continuous use of the trade dress is unimportant unless the public recognizes that only one manufacturer uses that color, shape and size. The act of copying, standing alone, is not sufficient to prove secondary meaning.
In summary, there is no evidence on this record that the consuming public links the trade dress of APRESAZIDE with a single source, named or unnamed. Accordingly, I would hold that CIBA has failed to prove secondary meaning under federal law.3
B. New Jersey Law
Under New Jersey law secondary meaning has been defined as the “identification of an object ... with a single- source — even though unnamed — and. an interest on the part of the consuming public in buying because of that source.” Squeezit Corp. v. Plastic Dispensers, Inc., 31 N.J.Super. 217, 223, 106 A.2d 322 (1954). Similarly, in French American Reeds Mfr. Co. v. Park Plastics Co., Inc., 20 N.J.Super. 325, 90 A.2d 50 (1952), the Superior Court of New Jersey stated:
[I]t is an absolute condition to any relief whatever that the plaintiff ... show that the appearance of his wares has in fact come to mean that some particular person — the plaintiff may not be individually known — makes them, and that the public cares who does make them ____ The critical question of fact at the outset always is whether the public is moved in any degree to buy the article because of its source and what are the features by which it distinguishes that source.
Kilborn & Bishop Co., 247 Fed. 299, 300-31 (2d Cir.1917). Although the New Jersey test for secondary meaning is virtually the same as the federal standard, New Jersey law adds a second prong to the inquiry— public interest. Therefore, CIBA would have to show not only the link with a single source, but also that the public wants that product because of the source. This would *859seem to entail some recognition that APRESAZIDE is a brand name, rather than a generic drug, and that its status as such makes it more desirable to the public. Although desirability may be inferred, it brings CIBA no closer to proving that the public associates the trade dress of APRE-SAZIDE with a particular or single source.
In French American Reeds, the court listed factors similar to the ones relied upon by the district court, including length of use, sales volume, advertising and “efforts to promote a conscious connection in the minds of the public between the product and its source.”4 20 N.J.Super. at 337, 90 A.2d at 56. However, the court was quick to point out that these are only factors to be considered, not dispositive criteria establishing secondary meaning. The court explained that “[t]he ultimate test of secondary meaning must always remain whether plaintiffs product in its distinctive trade dress has become broadly known to the public as indicating a certain origin.” Id. at 338, 90 A.2d at 57. I have previously concluded that there is no evidence to support a finding that the public associates the appearance of APRESAZIDE with a particular or single source. Therefore, CIBA has also failed to prove secondary meaning under the law of New Jersey.
II. PASSING OFF
In SK&F, this court held that liability could be imposed for passing off under section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (1982), and New Jersey law where it is proven that a drug is placed “in the hands of a pharmacist in a form in which the manufacturer can reasonably anticipate that it may be passed off as another product even if the manufacturer does nothing else to encourage passing off.” SK&F, 625 F.2d at 1062, 1065-66. The SK&F court, like the court below and the majority here, concluded that it was reasonable to anticipate that duplication of a trade dress would facilitate passing off. SK&F, 625 F.2d at 1063; CIBA, 547 F.Supp. at 1116; Majority Opinion at 854. With this conclusion, I have no quarrel. A manufacturer can always reasonably anticipate that the act of copying a trade dress will make illegal substitutions easier. I question the continuing vitality of this “reasonable anticipation” test in light of the United States Supreme Court decision in Ives. Further, I conclude that the district court’s alternate finding of intentional inducement under Ives is not supported by the record evidence. Moreover, it is necessary to consider what effect the demise of the reasonable anticipation standard has on this court’s prediction of how the Supreme Court of New Jersey would decide state law on the subject.
A. Ives and the Lanham Act
Stating that “it is debatable whether Ives altered the standard of proof for passing off under § 43(a)____’’the majority opinion refuses to reach the issue, relying instead upon the district court’s alternate finding of intentional inducement. See Majority Opinion at 854. I share neither the majority’s doubt nor hesitancy on this issue.
Ives was also a “look-alike” drug case. However, it was decided on the narrow ground of the appropriate standard of review.5 Justice White, in a concurring opinion, took the majority to task for not deciding the issue presented in the petitions for certiorari — whether the Second Circuit erred in applying the reasonable anticipation standard to a claim of contributory infringement under the Lanham Act. Ives, 102 S.Ct. at 2190-91 (White, J., concurring). Citing Warner & Co. v. Eli Lilly & Co., 265 U.S. 526, 44 S.Ct. 615, 68 L.Ed. 1161 (1924), Justice White chracterized the reasonable anticipation standard as “watered down.” Id. 102 S.Ct. at 2191. He ex*860plained that “[t]he mere fact that a generic drug company can anticipate that some illegal substitution will occur to some unspecified extent, and by some unknown pharmacists, should not by itself be a predicate for contributory liability.” Id. 102 S.Ct. at 2192.
In response to Justice White’s criticism, the majority stated that if the Second Circuit had relied upon the reasonable anticipation standard, “the court indeed would have applied a ‘watered down’ and incorrect standard.” Ives, 102 S.Ct. at 2188 n. 13.6 Both the majority and concurrence agreed upon the proper legal test. Liability for passing off or contributory infringement must be established by proof that the manufacturer intentionally induced another to pass off or continued to supply the product, knowing, or having reason to know, that the pharmacist was engaging in illegal substitutions. See id. 102 S.Ct. at 2188, 2191-92 (White, J., concurring).
The passing off claim in Ives was brought under section 32 of the Lanham Act, while CIBA prosecutes the same claim in this case under section 43(a). The issue becomes whether the higher standard of intentional inducement should also be applied to section 43(a).
The Ives Court noted that “§ 43(a) prohibits a broader range of practices than does § 32____” 102 S.Ct. at 2190 (emphasis added).7 A brief discussion of these two statutory provisions will illustrate that this simply means that section 43(a) proscribes a greater number of activities than does section 32. See generally SK&F, 625 F.2d at 1065 (discussing various types of behavior actionable under section 43(a)). On its face, section 32 is a very narrow provision, limited to action for infringement of a registered trademark.8 Although duplication of a trade dress is not, in itself, infringement of a trademark, the imitative appearance might induce a pharmacist to place a generic drug in a bottle bearing the brand name. Since the brand name is generally a registered trade-mark, the manufacturer can be held liable for contributory infringement of the inducement of passing off under this section. In contrast, section 43(a) does not require infringement of a mark, prohibiting instead any false designation of origin.9 The mere act of trade *861dress duplication is actionable under this section if it tends to misrepresent a product’s origin. Passing off is also actionable, affording a plaintiff like CIBA a choice of statutory remedies.10 However, the nature of the activity, duplicating a drug’s trade dress, and the potential for wrongdoing by an unscrupulous pharmacist, are the same regardless of which statutory section a plaintiff invokes. Consistency and logic dictate, therefore, that the same legal standard should be applied to the same behavior under both sections 32 and 43(a). To hold that a plaintiff need only prove reasonable anticipation under section 43(a) would render section 32 superfluous and eviscerate the intentional inducement standard of Ives. No plaintiff would voluntarily choose to proceed under section 32, given the higher burden under Ives, when they could invoke section 43(a) and be required to prove only reasonable anticipation. Moreover, the Ives court indicated that the standard for functionality is the same under both statutory sections. See 102 S.Ct. at 2190 n. 20; id. 102 S.Ct. at 2192-93 (White, J., concurring). It follows that the same must be true for “passing off.” Thus, I would hold that Ives signaled the demise of the reasonable anticipation standard, implicitly overruling that portion Of this court’s decision in SK&F.
The district court did address the Ives intentional inducement standard, deciding in the alternative should this court hold that the SK & F reasonable anticipation standard was no longer viable. It found that Bolar copied the trade dress of APRE-SAZIDE with the intent to facilitate illegal substitutions. CIBA, 547 F.Supp. at 1108, 1116. In support of this finding, the'court below explained that there was no legitimate reason for the duplication. Id. at 1108.11 The only other evidence relied upon by the court was the conviction of ninety-three (93) New York pharmacies and pharmacists for illegal substitutions. Id. at 1108 n. 9. This evidence was deemed sufficient by the majority in concluding that the district court’s finding of intent to induce was not clearly erroneous. Majority Opinion at 855. I do not agree.
At the outset, I fail to see the relevance of the New York convictions. There is no evidence that these pharmacies had been passing off products produced by Bolar. Indeed, there was no suggestion that the convictions involved the illegal substitution of a generic for APRESAZIDE. These convictions may prove that illegal substitution is' a problem, at least in New York, but, they prove nothing with respect to Bolar’s actions or intent in duplicating the trade dress of APRESAZIDE..
The district court found that Bolar had the intent to induce illegal substitution. There was no finding of actual inducement. There is no claim that Bolar duplicated the packaging of its drug so that pharmacists might be innocently misled. Nor is there any evidence that Bolar said or did anything that could be reasonably construed as encouraging illegal substitution. According to the language of Ives, the manufacturer must intentionally induce another to pass off or continue to supply goods to one whom it knows or has reason to know is passing off. See 102 S.Ct. at 2188; id. 102 S.Ct. at 2191-92 (White, J., concurring) (emphasis added). This language requires some affirmative action apart from the act of copying. Such affirmative action is absent from this record.
*862Assuming that Ives punishes merely the intent to induce illegal substitution, the result remains unchanged. Proof of something in addition to the act of copying is required. It is beyond question that the Ives standard purports to have substantially more bite than the reasonable anticipation test. Under the latter, the act of copying proves the offense. By imitating the trade dress of a drug, it is virtually impossible to fail to anticipate that “it may be passed off as another product____” SK & F, 625 F.2d at 1062. Thus, to satisfy the higher standard of Ives, it would seem that proof of something more than the act of imitation is required. However, under the district court’s analysis, the same quantum of evidence which would satisfy the reasonable anticipation standard would also suffice to prove intentional inducement. Under either, the act of copying would prove the offense.12 However, the rejection of the reasonable anticipation test by the Ives Court as “ ‘watered down’ and incorrect____”, 102 S.Ct. at 2188 n. 13, mandates that something in addition to the act of imitation is required to satisfy the intentional inducement standard. Since there is insufficient evidence to support the district court’s finding of intent to induce,' I conclude that this finding is clearly erroneous.
B. New Jersey Law
Relying upon SK & F, the majority assumes that the reasonable anticipation standard is the law of New Jersey. See Majority Opinion at 852. However, the court in SK & F sent out conflicting signals, first observing that New Jersey follows sections 711 and 713 of the Restatement (First) of Torts. Section 713 defines passing off, stating, “[o]ne fraudulently markets his goods as those of another if, though making no misrepresentation himself, he intentionally induces his purchasers to so market them.” SK & F, 625 F.2d at 1062 (quoting Restatement (First) of Torts § 713 (1938)) (emphasis added). This language sounds strikingly similar to that employed in Ives. The SK & F court quoted the illustration following section 713, which was derived from Warner & Co. v. Eli Lilly & Co., 265 U.S. 526, 44 S.Ct. 615, 68 L.Ed.2d 1161 (1924). It must be noted that Warner was cited by both the majority and the concurrence in Ives as support for the intentional inducement standard. See Ives, 102 S.Ct. at 2188; id. 102 S.Ct. at 2191 (White, J., concurring). The SK & F court then stated that the reasonable anticipation test “has been held ... actionable ... under New Jersey law____” 625 F.2d at 1062 (citing Merrell-National Labs., Inc. v. Zenith Labs., Inc., 194 U.S.P.Q. 157, 159-60 (D.N.J.1977), aff'd on other grounds, 579 F.2d 786 (3d Cir.1978)). Other than citing cases from other jurisdictions, decided under both state and federal law, the court engaged in no further analysis of the Merrell decision or New Jersey state Law.13 See SK & F, 625 F.2d at 1062.
While Merrell was a look-alike drug case, it differs from this case in that it involved actual passing off by pharmacists, as. well as a claim for contributory infringement on the part of the manufacturers. With respect to the latter, that court found that there was no New Jersey precedent on point. Merrill, 194 U.S.P.Q. at 160. Thus, it had to “predict” how the Supreme Court of New Jersey would rule, if presented with a claim of contributory infringement. Looking at “general tenants” of New Jersey unfair competition law, the court concluded that “fair play has become the watchword____” Id. The Court then discussed some rather dated federal cases which endorsed the reasonable anticipation standard. Based upon these cases and the “general tenants,” the court concluded that *863plaintiff was likely to prevail against the manufacturers on a claim of unfair competition.14 Id.
Nothing in the “general tenants” of New Jersey unfair competition law, as articulated by the Merrell court, tends to prove that New Jersey would adopt the reasonable anticipation standard over the test of intentional inducement. Indeed, the SK & F court’s acknowledgment that New Jersey follows sections 711 and 713 of the Restatement (First) of Torts would indicate the exact opposite. The only insight provided by New Jersey courts is found in dicta in the French American Reeds case. The Superior Court of New Jersey noted that the action did not present questions of passing off or “fraudulent marketing,” citing the Restatement (First) of Torts § 711 (1938). Quoting plaintiff, the court stated that the claim did “not involve any element of actual intent or any attempt on respondents’ part to see their goods as those of appellant.” French American Reeds, 20 N.J.Super. at 329, 90 A.2d at 52. If reasonable anticipation were the standard in New Jersey, the plaintiff in French American Reeds might not have limited the case to claims of unprivileged imitation.
Discounting the so-called “general tenants” of unfair competition, the Merrell decision, upon which the SK & F court relied, is based upon an analogy to federal law. This analogy is no longer justified in the wake of Ives. Assuming the reasonable anticipation standard has been overruled as a matter of federal law, it follows that it cannot be viable under New Jersey law in the absence of any endorsement of that standard by the courts of New Jersey. I would hold that, in accordance with the Restatement (First) of Torts §§ 711, 713 (1938), and Warner & Co. v. Eli Lilly & Co., 265 U.S. 526, 44 S.Ct. 615, 68 L.Ed. 1161 (1924), New Jersey adheres to the traditional intentional inducement standard. For the reasons stated in the previous section, there is insufficient evidence to hold Bolar liable for passing off under this standard. Accordingly, I- would reverse the decision below in its entirety.

. The district court also remarked that "it is no more necessary here for plaintiff to prove that APRESAZIDE patients identify those products with CIBA-GEIGY than it was for plaintiff to prove in SK&F that DYAZIDE patients identified that product with SK&F.” CIBA, 547 F.Supp. at 1113. Although it is not necessary for the public to identify the trade dress with the particular named manufacturer, a link with a single source is required.

. The majority states that the "association between APRESAZIDE’s trade dress and the trade name APRESAZIDE and CIBA is sufficient to prove secondary meaning.” Majority Opinion at 852 (emphasis added). Although APRESA-ZIDE is CIBA's trade-name, that does not indicate that the public associates that name with CIBA. Indeed, the court below specifically found to the contrary. See CIBA, 547 F.Supp. at 1102. The fact that only CIBA is permitted to use the name APRESAZIDE would not be probative of secondary meaning absent public recognition of this exclusivity.

. At first blush, my conclusion may appear contrary to this Circuit’s decision in SK&F. There, the court concluded that the trade dress of SK&F’s diuretic, DYAZIDE, had acquired secondary meaning, SK&F, 625 F.2d at 1064, 1065-66. There was evidence in SK&F that DYAZIDE was the only diuretic on the market which came in capsule form, the only one which was bi-colored and the only use using the color maroon. Id. at 1059. Here, there was evidence that Pfizer makes an antihypertensive, MINIPRESS, at least one strength of which is similar in appearance to APRESAZIDE. See CIBA, 547 F.Supp. at 1107. The district court found this irrelevant, as MINIPRESS and APRE-SAZIDE contain different ingredients and are both brand name drugs, thereby reducing the possibility of illegal substitution. Id. In SK&F, however, DYAZIDE was the only diuretic marketed with that appearance, including diuretics containing different ingredients and those produced by brand name as well as generic manufacturers. Arguably, this makes the case for secondary meaning stronger. Unfortunately, the SK&F court’s analysis on this issue is virtually non-existent. Pointing to the distinctive trade dress and extensive advertising, the court concluded that ”[t]he only value of the trade ' dress was in identifying the goods with their source, and that value suffices in the New Jersey courts to establish secondary meaning." SK&F, 625 F.2d at 1064. The court never addressed whether patients would link the distinctive maroon and white capsules to a single source.
Perhaps the court's rather conclusory treatment of the issue in SK&F arises from its procedural posture. SK&F, like the earlier decision in this case, see CIBA-GEIGY Corp. v. Bolar Pharmaceutical Co., 719 F.2d 56 (3d Cir.1983), was reviewed after the grant of a preliminary injunction. The standard employed is a likelihood of success on the merits. Here, we are reviewing a final record to determine whether CIBA has produced sufficient evidence to prove secondary meaning. SK&F did not alter the traditional test for secondary meaning; it simply applied it in a different procedural context.

. This factor parallels the “buyer association” elements of Ideal Toy, 685 F.2d at 82. As the previous discussion suggests, the marketing techniques of the pharmaceutical industry, vis-avis prescription drugs, render this factor useless.

. The actual holding of Ives is unremarkable — a court of appeals may not set aside findings of the district court without a determination that they were clearly erroneous. See Ives, 102 S.Ct. at 2190.

. The majority opined that the Second Circuit had not abandoned the traditional standard for passing off. The Ives majority stated that the reasonable anticipation language was simply used to buttress their conclusion that the test for contributory infringement had been met. 102 S.Ct. at 2188 n. 13.

. In Ives, the section 43(a) claim was brought for unprivileged imitation and false designation of origin. The Court declined to rule on those claims, as they had not been reviewed by the court of appeals.

. Section 32 provides, in pertinent part:
(1) Any person who shall, without the consent of the registrant—
(a) use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive; or
(b) reproduce, counterfeit, copy, or color-ably imitate a registered mark and apply such reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages, wrappers, receptacles or advertisements intended to be used in commerce upon or in connection with the sale, offering for sale, distribution, or advertising of goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive.
shall be liable in a civil action by the registrant for the remedies hereinafter provided. Under subsection (b) of this section, the registrant shall not be entitled to recover profits or damages unless the acts have been committed with knowledge that such imitation is intended to be used to cause confusion, or to cause mistake, or to deceive.
15 U.S.C. § 1114 (1982).

. Section 43(a) provides:
Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation of origin, or any false description or representation, including words or other symbols tending falsely to describe or represent the same, and shall cause such goods or services to enter into commerce, and any person who shall with knowledge of the falsity of such designation of origin or description or representation cause or procure the same to be transported or used in com*861merce or deliver the same to any carrier to be transported or used, shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region in which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of any such false description or representation.
15 U.S.C. § 1125(a) (1982).

. Interestingly, a claim for contributory infringement or passing off fits more comfortably under section 32. The broader reach of section 43(a) is aimed at preventing, inter alia, confusion in the mind of the public. In light of the Ives decision with respect to section 32, it is not surprising that CIBA chose to proceed under section 43(a).

. Having rejected the functionality of appearance, the court also tacitly rejected the argument that the similarity in trade dress would facilitate legal substitutions. CIBA, 547 F.Supp. at 1108.

. The district court recognized the effect of his ruling that duplication proved the intent to facilitate passing off. He stated "such an indictment could logically extend to any generic drug manufacturer who produced a look-alike drug.” CIBA, 547 F.Supp. at 1108.

. The SK&F court never explained how the courts of New Jersey could adopt both the intentional inducement standard, as articulated in the Restatement, and the reasonable anticipation test.

. Merrell, like SK&F, was decided in the context of preliminary injunctive relief. Although implicit in the holding, the Merrell court never articulated that it was predicting that New Jersey would adopt the reasonable anticipation standard.