Contract analysis

1. Meridian Consumer Brands LLC brings this action against Brindoval Home Goods Inc. for trademark infringement in violation of Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1), false designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and trademark dilution in violation of New York General Business Law § 360-l.

2. MCB is a leading consumer packaged goods company that has manufactured, marketed, and sold household cleaning products under the MERIDIAN and MERIDIAN CLEAN marks continuously since approximately 2011. Over the course of more than a decade, MCB has invested tens of millions of dollars in building the MERIDIAN brand, which has become widely recognized by consumers across the United States as a source identifier for

3. MCB is the owner of three valid and subsisting federal trademark registrations covering its core brand identity in International Class 3 (cleaning preparations): (a) U.S. Registration No. 4,218,506 for the mark MERIDIAN (standard character), registered on the Principal Register on August 14, 2012; (b) U.S. Registration No. 5,034,771 for the mark MERIDIAN CLEAN (standard character), registered on the Principal Regi

4. In or around July 2022, without the authorization, consent, or approval of MCB, Brindoval launched a private-label line of household cleaning products under the mark "MERIDIAN FRESH." Brindoval's MERIDIAN FRESH products bear trade dress that is confusingly similar to MCB's established branding, including a teal-and-white color scheme and a stylized wave device strikingly similar to MCB's federally registered wave-

5. Brindoval's conduct constitutes trademark infringement under Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1), false designation of origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and trademark dilution under New York General Business Law § 360-l.

6. MCB seeks injunctive relief to halt Brindoval's ongoing infringement; an award of MCB's actual damages and Brindoval's profits attributable to the infringement; disgorgement of Brindoval's ill-gotten gains; treble damages in the event the Court finds Brindoval's infringement to be willful; an award of reasonable attorneys' fees, costs, and disbursements; and such other and further relief as this Court deems just a

II. THE PARTIES A. Plaintiff Meridian Consumer Brands LLC

7. Plaintiff Meridian Consumer Brands LLC is a limited liability company organized and existing under the laws of the State of Delaware, with its principal place of business at 450 Park Avenue South, 14th Floor, New York, New York 10016.

8. MCB is a consumer packaged goods company that develops, manufactures, markets, and sells products across three primary product lines: household cleaning products, personal care products, and home fragrance products. MCB's products are distributed through major grocery chains, club stores, mass merchandisers, and e-commerce channels in all 50 states.

9. MCB's household cleaning product line, marketed and sold under the MERIDIAN and MERIDIAN CLEAN marks, is the company's flagship brand and a core driver of its commercial success. In its fiscal year ending December 31, 2022 ("FY 2022"), MCB generated total revenue of approximately $387 million, of which approximately $94.5 million — representing approximately 24.4% of MCB's total revenue — was attributable to its M

10. MCB is a portfolio company of Waypoint Capital Partners LLC, a Delaware limited liability company that acquired MCB in 2019. MCB's Chief Executive Officer is Sandra Kwan. MCB's General Counsel is Thomas R. Hennessy. MCB's Vice President of Brand Management is Rachel Dominguez. B. Defendant Brindoval Home Goods Inc.

11. Defendant Brindoval Home Goods Inc. is a corporation organized and existing under the laws of the State of Minnesota, with its principal place of business at 7200 France Avenue South, Suite 300, Edina, Minnesota 55435.

12. Brindoval is a regional big-box home goods retailer that operates 148 retail stores across 12 Midwestern and Mountain West states, including Minnesota, Wisconsin, Iowa, Illinois, Indiana, Michigan, Ohio, Nebraska, South Dakota, North Dakota, Montana, and Colorado. Brindoval also operates a growing e-commerce platform at www.crestviewhomegoods.com through which it sells products to consumers nationwide, including

13. In FY 2022, Brindoval generated total revenue of approximately $2.1 billion. Beginning in approximately 2021, Brindoval commenced a strategy of launching private-label product lines across multiple product categories in order to increase its profit margins and build in-house brand equity.

14. In or around July 2022, as part of this private-label strategy, Brindoval launched the "MERIDIAN FRESH" cleaning product line, which is the subject of this action. Brindoval's Chief Executive Officer is Douglas P. Lindstrom. Brindoval's General Counsel is Karen A. Whitfield. Brindoval's Vice President of Private Label Development is Nathan Cho.

III. JURISDICTION AND VENUE A. Subject Matter Jurisdiction

15. This Court has original subject matter jurisdiction over MCB's claims arising under the Lanham Act, 15 U.S.C. §§ 1114(1) and 1125(a), pursuant to 28 U.S.C. § 1331 (federal question jurisdiction) and 28 U.S.C. § 1338(a) (original jurisdiction over civil actions arising under any Act of Congress relating to patents, plant range protection, copyrights, and trademarks).

16. This Court has supplemental jurisdiction over MCB's state-law claim for trademark dilution under New York General Business Law § 360-l pursuant to 28 U.S.C. § 1367, because that claim is so related to the federal claims that it forms part of the same case or controversy under Article III of the United States Constitution. B. Personal Jurisdiction

17. Brindoval is subject to personal jurisdiction in this District. Brindoval operates an interactive e-commerce platform at www.crestviewhomegoods.com through which it sells and offers for sale the infringing MERIDIAN FRESH products to consumers located in the State of New York, including consumers within the Southern District of New York.

18. Brindoval has purposefully directed the sale and marketing of MERIDIAN FRESH products into this District, deriving revenue from sales to New York consumers. Brindoval's e-commerce platform is fully transactional, permitting consumers in New York and throughout the United States to browse, select, purchase, and receive delivery of MERIDIAN FRESH products. On information and belief, Brindoval has made multiple sale

19. Brindoval has sufficient minimum contacts with this District such that the exercise of personal jurisdiction over Brindoval comports with the requirements of due process under the Fifth and Fourteenth Amendments to the United States Constitution. The exercise of jurisdiction over Brindoval is reasonable and does not offend traditional notions of fair play and substantial justice. C. Venue.

20. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b)(2) because a substantial part of the events or omissions giving rise to the claims occurred in this District. MCB's principal place of business is located at 450 Park Avenue South, New York, New York, which is within this District. The harm to MCB's goodwill and business reputation has been felt most acutely at MCB's headquarters. In addition, Brind

IV. FACTUAL ALLEGATIONS A. MCB's MERIDIAN Marks and Longstanding Use

21. MCB first used the MERIDIAN mark in connection with household cleaning products in approximately 2011. Since that time, MCB has continuously, extensively, and substantially exclusively used the MERIDIAN and MERIDIAN CLEAN marks in interstate commerce in connection with the manufacture, marketing, promotion, distribution, and sale of household cleaning products.

22. MCB's products marketed and sold under the MERIDIAN and MERIDIAN CLEAN marks include, without limitation: all-purpose cleaners, glass cleaners, disinfecting sprays, antibacterial surface cleaners, and floor cleaners — all of which fall within International Class 3 (cleaning preparations).

23. MCB's MERIDIAN-branded cleaning products are distributed through a wide array of trade channels, including major grocery chains (such as Bramwell Partners LLC, Westvale Partners LLC, Sundial & Co., and Penmark Industries), club stores (such as Harborview Enterprises and Sundial Enterprises), mass merchandisers, and e-commerce platforms (including Penmark Holdings and MCB's own direct-to-consumer website). As a re

24. From 2011 through 2022, MCB invested a cumulative total of approximately $47.2 million in advertising, marketing, and promotion of its MERIDIAN-branded cleaning product line, averaging approximately $3.93 million per year over a period of approximately twelve years. These expenditures have included national television advertising, digital and social media campaigns, in-store displays and point-of-sale promotions,

25. As a direct result of MCB's continuous, extensive, and substantially exclusive use, and its significant investment in advertising and promotion, the MERIDIAN and MERIDIAN CLEAN marks have acquired strong consumer recognition and significant goodwill. Consumers throughout the United States associate the MERIDIAN and MERIDIAN CLEAN marks exclusively with MCB as the single source of the high-quality household cleani

26. MCB is the owner of three valid and subsisting federal trademark registrations for its MERIDIAN marks, each of which is registered on the Principal Register of the United States Patent and Trademark Office ("USPTO"): (a) U.S. Registration No. 4,218,506 — MERIDIAN (standard character mark) — for goods in International Class 3 (cleaning preparations, namely, all-purpose cleaners, glass cleaners, disinfecting sprays

27. All three registrations are valid, subsisting, and in full force and effect. MCB has timely filed all required maintenance documents with the USPTO, including declarations of continued use and/or excusable nonuse under Sections 8 and 9 of the Lanham Act, 15 U.S.C. §§ 1058 and 1059, as applicable.

28. Under Section 7(b) of the Lanham Act, 15 U.S.C. § 1057(b), MCB's federal trademark registrations constitute prima facie evidence of the validity of the marks, of MCB's ownership of the marks, and of MCB's exclusive right to use the marks in commerce on or in connection with the goods specified in the registrations.

29. By virtue of its incontestable status, U.S. Registration No. 4,218,506 for the MERIDIAN mark is conclusive evidence of MCB's exclusive right to use the mark in commerce in connection with the goods identified in the registration, subject only to the limited defenses enumerated in Section 33(b) of the Lanham Act, 15 U.S.C. § 1115(b). C. The MERIDIAN Brand's Commercial Strength

30. In FY 2022, MCB's MERIDIAN-branded cleaning product line generated approximately $94.5 million in revenue, constituting approximately 24.4% of MCB's total revenue of approximately $387 million. The MERIDIAN cleaning line is the single largest revenue-generating product line within MCB's portfolio.

31. MCB's cumulative advertising expenditures of approximately $47.2 million over the twelve-year period from 2011 through 2022 have built substantial consumer awareness, brand recognition, and brand equity in the MERIDIAN and MERIDIAN CLEAN marks. MCB's advertising and promotional campaigns have consistently reinforced the association between the MERIDIAN marks and MCB as the source of high-quality, reliable househo

32. The MERIDIAN mark is recognized by consumers as a well-known identifier of MCB's household cleaning products. The mark has acquired strong secondary meaning in the marketplace, and consumers associate the MERIDIAN and MERIDIAN CLEAN marks with a single, consistent source of household cleaning products — namely, MCB.

33. The substantial commercial strength and brand equity embodied in MCB's MERIDIAN marks is further evidenced by the 2019 acquisition of MCB by Waypoint Capital Partners LLC for approximately $625 million. The acquisition price reflected the substantial value of MCB's brand portfolio, including the goodwill associated with the MERIDIAN cleaning line, which was identified as a core brand asset during the acquisition

34. On or about May 12, 2022, Brindoval filed U.S. Trademark Application Serial No. 97/412,558 with the USPTO for the mark MERIDIAN FRESH (standard character) in International Class 3 (cleaning preparations). A copy of Brindoval's application as published is attached hereto as Exhibit D.

35. In early July 2022, Brindoval launched a private-label line of household cleaning products under the mark "MERIDIAN FRESH." Brindoval's MERIDIAN FRESH product line includes, without limitation, all-purpose spray cleaner, glass cleaner, disinfecting wipes, and dish soap — product categories that directly overlap and compete with MCB's MERIDIAN-branded products in the same class of goods (International Class 3, cle

36. Brindoval's MERIDIAN FRESH products have been sold and offered for sale in all 148 of Brindoval's retail store locations across 12 Midwestern and Mountain West states, including Minnesota, Wisconsin, Iowa, Illinois, Indiana, Michigan, Ohio, Nebraska, South Dakota, North Dakota, Montana, and Colorado. In addition, Brindoval has sold and offered for sale MERIDIAN FRESH products on Brindoval's e-commerce platform at

37. On September 6, 2022, Brindoval's MERIDIAN FRESH trademark application (Serial No. 97/412,558) was published for opposition in the Official Gazette of the United States Patent and Trademark Office.

38. In the approximately five months since the MERIDIAN FRESH product launch (from approximately July 2022 through November 2022), Brindoval's MERIDIAN FRESH product line has generated approximately $6.8 million in gross revenue. Based on this trajectory, the annualized revenue projection for Brindoval's MERIDIAN FRESH product line is approximately $16.3 million. These revenue figures underscore both the commercial s

39. Brindoval's MERIDIAN FRESH product packaging employs a teal-and-white color scheme that is strikingly similar to the distinctive color scheme that MCB has consistently used on its MERIDIAN and MERIDIAN CLEAN product packaging since 2011. Representative images of MCB's packaging are attached hereto as Exhibit E. Representative images of Brindoval's MERIDIAN FRESH packaging are attached hereto as Exhibit F. A side-

40. In addition to the confusingly similar color scheme, Brindoval's MERIDIAN FRESH packaging prominently features a stylized wave device that is substantially similar in design, placement, and overall visual impression to the distinctive wave device incorporated in MCB's registered logo mark (U.S. Registration No. 5,589,320). The similarities between the two wave devices are not coincidental or incidental; rather, t

41. The combination of (a) the confusingly similar word mark "MERIDIAN FRESH" (which incorporates MCB's registered MERIDIAN mark in its entirety), (b) the teal-and-white color scheme that mimics MCB's trade dress, and (c) the substantially similar wave device, creates an overall commercial impression that is calculated to mislead consumers into believing that Brindoval's MERIDIAN FRESH products originate from, are sp

42. Upon information and belief, since the launch of Brindoval's MERIDIAN FRESH product line in July 2022, MCB's customer service department has received multiple inquiries from consumers who have confused Brindoval's MERIDIAN FRESH products with MCB's MERIDIAN and MERIDIAN CLEAN products, or who have mistakenly believed that MERIDIAN FRESH products are manufactured by, licensed by, or otherwise affiliated with MCB.

43. In October 2022, at the direction of MCB's counsel, Dr. Elaine Furman, Ph.D., of Lakeshore Brand Consulting LLC, conducted a consumer confusion survey designed to measure the likelihood of confusion between Brindoval's MERIDIAN FRESH product packaging and MCB's MERIDIAN CLEAN product packaging. Dr. Furman is a recognized expert in marketing, consumer psychology, and survey methodology, with over 18 years of exper

44. Dr. Furman's survey employed a Squirt-design modified Eveready protocol, which is a well-accepted and court-approved methodology for measuring consumer confusion in trademark cases. The survey utilized a sample of 612 consumers drawn from the relevant consuming population — namely, adults who purchase household cleaning products.

45. Dr. Furman's survey revealed a raw confusion rate of 38.6% among respondents exposed to Brindoval's MERIDIAN FRESH packaging — that is, 38.6% of respondents incorrectly identified MCB or the maker of MERIDIAN CLEAN products as the source, sponsor, or affiliate of the MERIDIAN FRESH product. The control-group noise rate was 7.2%. Subtracting the control-group noise rate from the raw confusion rate yielded a net co

46. A net confusion rate of 31.4% far exceeds the threshold generally recognized by courts in this Circuit as indicating a likelihood of confusion. Courts in the Second Circuit have found net confusion rates of 15% to 20% or higher to be strong evidence of a likelihood of confusion. See, e.g., Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799 F.2d 867, 875 (2d Cir. 1986); Mobil Oil Corp. v. Pegasus Petroleum C

47. The results of Dr. Furman's survey confirm that a significant proportion of consumers exposed to Brindoval's MERIDIAN FRESH packaging mistakenly believe that the MERIDIAN FRESH product is made by, affiliated with, or sponsored by the maker of MERIDIAN CLEAN products — that is, MCB. G. Brindoval's Knowledge of MCB's Marks

48. Upon information and belief, Brindoval was aware, or in the exercise of reasonable diligence should have been aware, of MCB's MERIDIAN and MERIDIAN CLEAN marks and the goodwill associated therewith prior to adopting and launching the MERIDIAN FRESH mark.

49. MCB's MERIDIAN and MERIDIAN CLEAN marks have been in continuous use in interstate commerce since approximately 2011 — more than eleven years prior to Brindoval's adoption of the MERIDIAN FRESH mark. MCB's marks are the subject of three federal trademark registrations that have been publicly available on the records of the United States Patent and Trademark Office at all relevant times. MCB's MERIDIAN-branded prod

50. A reasonable trademark clearance search, of the type routinely conducted by companies prior to adopting a new brand name, would have revealed MCB's prior rights in the MERIDIAN and MERIDIAN CLEAN marks. Upon information and belief, Brindoval either (a) failed to conduct an adequate trademark clearance search prior to adopting the MERIDIAN FRESH mark, or (b) conducted a clearance search that revealed MCB's prior r

51. Brindoval's adoption of the mark MERIDIAN FRESH — which incorporates MCB's registered MERIDIAN mark in its entirety — for use on directly competing household cleaning products, combined with Brindoval's adoption of a teal-and-white color scheme and wave device that closely mimic MCB's established trade dress, demonstrates, at minimum, a reckless disregard for MCB's rights. Such conduct gives rise to a strong infe

52. Brindoval's unauthorized use of the MERIDIAN FRESH mark and confusingly similar trade dress has caused and, unless restrained by this Court, will continue to cause irreparable harm to MCB, including but not limited to: (a) Diversion of sales and erosion of market share. Brindoval's sale of MERIDIAN FRESH products in direct competition with MCB's MERIDIAN-branded products has diverted and will continue to divert s

53. MCB has no adequate remedy at law because the ongoing confusion, dilution, and damage to MCB's goodwill and brand reputation cannot be fully compensated by an award of monetary damages alone. The harm caused by consumer confusion and brand dilution is inherently difficult to quantify, and MCB will suffer continuing and compounding injury for as long as Brindoval's infringing activities persist.

I. Pre-Litigation Demand and Brindoval's Refusal

54. On September 26, 2022, through its counsel Calderwood & Harkness LLP, MCB sent a detailed cease-and-desist letter to Brindoval Home Goods Inc. demanding that Brindoval: (a) immediately cease all use of the MERIDIAN FRESH mark and all associated trade dress in connection with the advertising, marketing, promotion, distribution, sale, and offering for sale of any products; (b) withdraw its pending trademark applica

55. On October 10, 2022, Halverson McKay & Pruitt LLP, counsel for Brindoval, responded to MCB's cease-and-desist letter. In its response, Brindoval, through counsel, denied that its use of the MERIDIAN FRESH mark constitutes infringement of MCB's MERIDIAN and MERIDIAN CLEAN marks, denied that there is any likelihood of confusion, and categorically refused to cease use of the MERIDIAN FRESH mark or withdraw its pendi