UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
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COMPLAINT FOR TRADEMARK INFRINGEMENT, FALSE DESIGNATION OF ORIGIN, AND DILUTION
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Plaintiff Meridian Consumer Brands LLC ("MCB" or "Meridian"), by and through its attorneys, Calderwood & Harkness LLP, for its Complaint against Defendant Brindoval Home Goods Inc. ("Brindoval" or "CHG"), alleges as follows:
I. INTRODUCTION
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 high-quality household cleaning products.
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 Register on October 18, 2016; and
(c) U.S. Registration No. 5,589,320 for the mark MERIDIAN (stylized logo incorporating a distinctive wave device), registered on the Principal Register on July 10, 2018.
Certified copies of these registrations are attached hereto as Exhibits A, B, and C, respectively.
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-device logo. The MERIDIAN FRESH products compete directly with MCB's products in the same product categories — all-purpose cleaners, glass cleaners, disinfecting products, and related household cleaning preparations.
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 and proper.
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 MERIDIAN-branded cleaning product line.
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 consumers in the State of New York and in this District.
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 sales of MERIDIAN FRESH products to consumers in this District.
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, Brindoval has solicited and made sales to consumers in this District through its e-commerce platform, and Brindoval's infringing activities have caused injury to MCB's commercial interests within this District.
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 result, MCB's MERIDIAN-branded products reach consumers in all 50 states and the District of Columbia.
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, coupon programs, influencer partnerships, and trade marketing.
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 cleaning products sold under those marks.
B. MCB's Federal Trademark Registrations
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, and floor cleaners) — registered August 14, 2012. A certified copy is attached hereto as Exhibit A. This registration has become incontestable under Section 15 of the Lanham Act, 15 U.S.C. § 1065, MCB having filed a declaration of incontestability with the USPTO, the mark having been in continuous use in commerce for a period of at least five consecutive years following the date of registration, and there being no pending proceedings in the USPTO or courts involving the rights of MCB in the mark.
(b) U.S. Registration No. 5,034,771 — MERIDIAN CLEAN (standard character mark) — for goods in International Class 3 (cleaning preparations, namely, all-purpose cleaners, glass cleaners, disinfecting sprays, and floor cleaners) — registered October 18, 2016. A certified copy is attached hereto as Exhibit B.
(c) U.S. Registration No. 5,589,320 — MERIDIAN (stylized logo incorporating a distinctive wave device) — for goods in International Class 3 (cleaning preparations, namely, all-purpose cleaners, glass cleaners, disinfecting sprays, and floor cleaners) — registered July 10, 2018. A certified copy is attached hereto as Exhibit C.
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 household cleaning products.
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 due diligence process. The MERIDIAN marks and associated goodwill constituted a material component of the overall enterprise value attributed to MCB in the transaction.
D. Brindoval's Adoption and Use of "MERIDIAN FRESH"
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, cleaning preparations).
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 www.crestviewhomegoods.com, making the infringing products accessible to consumers nationwide, including consumers in this District.
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 significance of Brindoval's infringing activities and the magnitude of the harm being inflicted upon MCB.
E. Confusingly Similar Trade Dress
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-by-side packaging comparison is attached hereto as Exhibit G.
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, the degree of similarity indicates that Brindoval intentionally adopted a design calculated to evoke MCB's established branding.
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 sponsored by, are licensed by, or are otherwise affiliated with MCB. The overall look and feel of Brindoval's packaging is designed to capitalize on the consumer recognition and goodwill that MCB has built in its MERIDIAN marks and trade dress over more than a decade.
F. Evidence of Consumer Confusion
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. These consumer inquiries include, among others, questions regarding the quality of the MERIDIAN FRESH products, complaints about MERIDIAN FRESH products directed to MCB, and requests for coupons or promotions for MERIDIAN FRESH products sent to MCB under the mistaken belief that MCB is the source of those products.
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 experience conducting consumer confusion surveys in trademark litigation.
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 confusion rate of 31.4%.
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 Corp., 818 F.2d 254, 260 (2d Cir. 1987).
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 products have been distributed nationwide through major retail and e-commerce channels, generating approximately $94.5 million in annual revenue in FY 2022 alone.
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 rights but chose to proceed with the adoption of the MERIDIAN FRESH mark in reckless disregard of those rights.
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 inference that Brindoval intended to trade on the goodwill and consumer recognition that MCB has developed in its MERIDIAN marks.
H. Harm to MCB
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 sales that would otherwise have been made by MCB, thereby eroding MCB's market share in the household cleaning product category.
(b) Consumer confusion. Brindoval's use of the MERIDIAN FRESH mark and confusingly similar trade dress has caused and continues to cause confusion among consumers as to the source, sponsorship, affiliation, and origin of Brindoval's MERIDIAN FRESH products, as demonstrated by the 31.4% net confusion rate found in Dr. Furman's survey and by consumer inquiries directed to MCB regarding MERIDIAN FRESH products.
(c) Dilution of distinctiveness. Brindoval's use of the MERIDIAN FRESH mark dilutes the distinctive quality of MCB's MERIDIAN and MERIDIAN CLEAN marks by eroding the unique association that consumers have between those marks and MCB's products.
(d) Damage to goodwill and brand reputation. Brindoval's use of the MERIDIAN FRESH mark and confusingly similar trade dress threatens to damage MCB's carefully cultivated goodwill and brand reputation. If consumers associate MCB with Brindoval's MERIDIAN FRESH products — products over which MCB exercises no quality control — any dissatisfaction with Brindoval's products may be wrongly attributed to MCB, causing damage to MCB's reputation for quality.
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 application Serial No. 97/412,558 for the mark MERIDIAN FRESH; (c) recall and destroy all packaging, labels, advertising, and promotional materials bearing the MERIDIAN FRESH mark; and (d) provide an accounting of all sales of MERIDIAN FRESH products. A copy of the cease-and-desist letter is attached hereto as Exhibit H.
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 pending trademark application. A copy of Brindoval's response is attached hereto as Exhibit I.
56. On October 14, 2022, MCB filed a Notice of Opposition before the Trademark Trial and Appeal Board ("TTAB") of the United States Patent and Trademark Office, bearing Opposition No. 91/278,415, opposing Brindoval's pending trademark application Serial No. 97/412,558 for MERIDIAN FRESH. That opposition proceeding remains pending.
57. Despite MCB's demands and the filing of the TTAB opposition, Brindoval has continued to sell MERIDIAN FRESH products in all 148 of its retail stores and on its e-commerce platform without any modification to the MERIDIAN FRESH mark or the associated trade dress. Brindoval's continued and unabated infringing conduct necessitates this action.
V. CAUSES OF ACTION
COUNT I: TRADEMARK INFRINGEMENT UNDER 15 U.S.C. § 1114(1)
58. MCB realleges and incorporates by reference each and every allegation set forth in Paragraphs 1 through 57 above as though fully set forth herein.
59. MCB is the owner of valid and subsisting federal trademark registrations for the marks MERIDIAN (U.S. Registration No. 4,218,506), MERIDIAN CLEAN (U.S. Registration No. 5,034,771), and the MERIDIAN stylized logo with wave device (U.S. Registration No. 5,589,320), all registered in International Class 3 for cleaning preparations. U.S. Registration No. 4,218,506 is incontestable under 15 U.S.C. § 1065.
60. Without the consent, authorization, or approval of MCB, Brindoval has used in commerce — and continues to use in commerce — the mark MERIDIAN FRESH and trade dress confusingly similar to MCB's registered marks, in connection with the sale, offering for sale, distribution, and advertising of household cleaning products in International Class 3.
61. Brindoval's use of the MERIDIAN FRESH mark and associated trade dress is likely to cause confusion, or to cause mistake, or to deceive consumers as to the source, sponsorship, or affiliation of Brindoval's MERIDIAN FRESH products with MCB and MCB's MERIDIAN and MERIDIAN CLEAN products.
62. Application of the eight-factor likelihood-of-confusion test set forth in Polaroid Corp. v. Polarad Electronics Corp., 287 F.2d 492 (2d Cir. 1961), demonstrates a strong likelihood of confusion:
(a) Strength of MCB's marks. MCB's MERIDIAN and MERIDIAN CLEAN marks are strong marks, both inherently (as arbitrary marks for cleaning products) and commercially (through continuous use since 2011, $94.5 million in annual revenue, and $47.2 million in cumulative advertising expenditures). U.S. Registration No. 4,218,506 is incontestable, which is conclusive evidence of the mark's validity and MCB's exclusive right to use the mark.
(b) Degree of similarity between the marks. The marks MERIDIAN, MERIDIAN CLEAN, and MERIDIAN FRESH are highly similar. Brindoval's MERIDIAN FRESH mark incorporates MCB's registered MERIDIAN mark in its entirety, adding only the generic and descriptive word "FRESH." The dominant element of all three marks is the word "MERIDIAN." In addition, Brindoval's wave device and teal-and-white color scheme closely mimic MCB's trade dress, further increasing the similarity of the overall commercial impression.
(c) Proximity of the products. The products are identical in kind. Both MCB and Brindoval sell household cleaning products — including all-purpose cleaners, glass cleaners, and disinfecting products — in International Class 3. The proximity of the products is as close as possible.
(d) Likelihood that MCB will bridge the gap. MCB and Brindoval already compete directly in the same product category, and there is no "gap" to bridge. To the extent any product sub-categories differ, MCB has the likelihood and intent to extend its MERIDIAN brand into adjacent cleaning product categories.
(e) Evidence of actual confusion. Dr. Furman's consumer confusion survey demonstrated a net confusion rate of 31.4%, which is well above the threshold recognized by courts as probative of likelihood of confusion. In addition, MCB's customer service department has received consumer inquiries reflecting actual confusion.
(f) Brindoval's bad faith in adopting the mark. Brindoval adopted the MERIDIAN FRESH mark and confusingly similar trade dress with knowledge of, or reckless disregard for, MCB's prior rights. The degree of similarity between the marks and trade dress, combined with the direct competitive overlap, supports a strong inference of intentional copying.
(g) Quality of Brindoval's products. MCB exercises no quality control over Brindoval's MERIDIAN FRESH products. Any deficiency in the quality of Brindoval's products may be wrongly attributed to MCB by confused consumers, causing damage to MCB's reputation and goodwill.
(h) Sophistication of consumers. Household cleaning products are low-cost, frequently purchased consumer goods that are typically selected with relatively low attention and deliberation. The low degree of consumer sophistication in this product category increases the likelihood of confusion.
63. Brindoval's actions constitute trademark infringement in violation of Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1).
64. MCB has been damaged and will continue to be irreparably harmed by Brindoval's infringing conduct absent injunctive and other relief from this Court.
COUNT II: FALSE DESIGNATION OF ORIGIN UNDER 15 U.S.C. § 1125(a)
65. MCB realleges and incorporates by reference each and every allegation set forth in Paragraphs 1 through 64 above as though fully set forth herein.
66. Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a)(1)(A), provides that any person who, on or in connection with any goods, uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, which is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods by another person, shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.
67. Brindoval's use of the MERIDIAN FRESH mark and confusingly similar trade dress — including the teal-and-white color scheme and the wave device substantially similar to MCB's registered wave-device logo — in connection with the advertising, marketing, promotion, distribution, sale, and offering for sale of household cleaning products, constitutes a false designation of origin that is likely to cause confusion, mistake, or deception among consumers as to the source, sponsorship, affiliation, connection, or approval of Brindoval's MERIDIAN FRESH products.
68. Brindoval's conduct creates the false and misleading impression that Brindoval's MERIDIAN FRESH products originate from, are sponsored by, are licensed by, or are otherwise associated with MCB. This false impression diverts consumer attention, goodwill, and sales from MCB to Brindoval and undermines MCB's ability to control the quality and reputation of the products associated with its MERIDIAN marks.
69. Brindoval's actions constitute false designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a).
70. MCB has been damaged and will continue to be irreparably harmed by Brindoval's conduct absent injunctive and other relief from this Court.
COUNT III: TRADEMARK DILUTION UNDER NEW YORK GENERAL BUSINESS LAW § 360-l
71. MCB realleges and incorporates by reference each and every allegation set forth in Paragraphs 1 through 70 above as though fully set forth herein.
72. MCB's MERIDIAN and MERIDIAN CLEAN marks are distinctive marks that have acquired strong consumer recognition through more than a decade of continuous and substantially exclusive use in commerce since approximately 2011, cumulative advertising and promotional expenditures of approximately $47.2 million, and nationwide distribution generating approximately $94.5 million in annual cleaning-line revenue in FY 2022. The MERIDIAN and MERIDIAN CLEAN marks possess a distinctive quality that is uniquely associated with MCB and MCB's household cleaning products.
73. New York General Business Law § 360-l provides that the "likelihood of injury to business reputation or of dilution of the distinctive quality of a mark or trade name shall be a ground for injunctive relief in cases of infringement of a mark registered or not registered or in cases of unfair competition, notwithstanding the absence of competition between the parties or the absence of confusion as to the source of goods or services."
74. Unlike the federal trademark dilution statute, 15 U.S.C. § 1125(c), New York General Business Law § 360-l does not require a showing that the senior mark is "famous" but requires only that the mark possess a "distinctive quality." MCB's MERIDIAN and MERIDIAN CLEAN marks amply satisfy this standard of distinctiveness.
75. Brindoval's use of the MERIDIAN FRESH mark is likely to dilute the distinctive quality of MCB's MERIDIAN and MERIDIAN CLEAN marks in at least two respects:
(a) Dilution by blurring. Brindoval's use of the MERIDIAN FRESH mark is likely to blur the unique association between the MERIDIAN and MERIDIAN CLEAN marks and MCB's products by creating in the minds of consumers an additional, unauthorized association between the word "MERIDIAN" and a different source of cleaning products — namely, Brindoval. This additional association weakens and dilutes the singular identification of the MERIDIAN marks with MCB.
(b) Dilution by tarnishment. Brindoval's use of the MERIDIAN FRESH mark is likely to tarnish MCB's marks if consumers form negative associations with the MERIDIAN brand based on their experience with Brindoval's products, over which MCB exercises no quality control. Any deficiency in the quality, safety, or performance of Brindoval's MERIDIAN FRESH products could harm the reputation and distinctive quality of MCB's marks.
76. Brindoval's actions violate New York General Business Law § 360-l.
77. MCB has been damaged and will continue to be irreparably harmed by Brindoval's diluting conduct absent injunctive and other relief from this Court.
VI. PRAYER FOR RELIEF
WHEREFORE, Plaintiff Meridian Consumer Brands LLC respectfully requests that this Court enter judgment in its favor and against Defendant Brindoval Home Goods Inc. and grant the following relief:
1. Injunctive Relief. A permanent injunction pursuant to 15 U.S.C. § 1116 and the Court's inherent equity powers, enjoining Brindoval Home Goods Inc., its officers, agents, servants, employees, attorneys, successors, assigns, and all persons in active concert or participation with any of the foregoing, from:
(a) Using the mark MERIDIAN FRESH, or any other mark confusingly similar to MCB's MERIDIAN, MERIDIAN CLEAN, or MERIDIAN stylized logo marks, in connection with the advertising, marketing, promotion, distribution, sale, or offering for sale of any goods or services;
(b) Using any trade dress, packaging, labeling, or design elements — including, but not limited to, the teal-and-white color scheme and wave device — that are confusingly similar to MCB's trade dress, in connection with the advertising, marketing, promotion, distribution, sale, or offering for sale of any goods or services;
(c) Using any mark, name, word, symbol, device, trade dress, or combination thereof that is likely to cause confusion, deception, or mistake as to the source, origin, sponsorship, affiliation, or connection of any of Brindoval's products with MCB; and
(d) Assisting, aiding, or abetting any other person or entity in engaging in any of the foregoing activities.
2. Damages. An award of MCB's actual damages, including but not limited to lost profits and lost goodwill, caused by Brindoval's infringement, false designation of origin, and dilution, pursuant to 15 U.S.C. § 1117(a).
3. Disgorgement of Profits. An award of Brindoval's profits attributable to Brindoval's infringement and false designation of origin, pursuant to 15 U.S.C. § 1117(a), including but not limited to Brindoval's MERIDIAN FRESH gross revenue of at least $6.8 million generated from approximately July 2022 through November 2022, and any additional profits earned after the filing of this Complaint.
4. Treble Damages. An order increasing MCB's damages up to three times the amount found or assessed, pursuant to 15 U.S.C. § 1117(a), in the event the Court finds that Brindoval's infringement was willful.
5. Attorneys' Fees and Costs. An award of MCB's reasonable attorneys' fees, costs, and disbursements incurred in this action, pursuant to 15 U.S.C. § 1117(a), in the event the Court finds that this is an "exceptional case" warranting such an award.
6. Destruction and Recall. An order pursuant to 15 U.S.C. § 1118 requiring Brindoval to deliver up for destruction all labels, signs, packaging, advertisements, promotional materials, and any other materials in Brindoval's possession, custody, or control bearing the MERIDIAN FRESH mark or confusingly similar trade dress, and to recall from its retail locations and distribution channels all such materials and products bearing the infringing mark and trade dress.
7. Withdrawal of Trademark Application. An order directing Brindoval to withdraw, abandon, or otherwise relinquish its pending trademark application Serial No. 97/412,558 for the mark MERIDIAN FRESH, and to take all steps necessary to effectuate such withdrawal with the United States Patent and Trademark Office.
8. State Law Relief. Such relief as is available under New York General Business Law § 360-l, including injunctive relief against the dilution of the distinctive quality of MCB's MERIDIAN and MERIDIAN CLEAN marks.
9. Pre-Judgment and Post-Judgment Interest. An award of pre-judgment and post-judgment interest at the maximum rate permitted by law.
10. Further Relief. Such other and further relief as this Court may deem just, equitable, and proper.
VII. DEMAND FOR JURY TRIAL
Plaintiff Meridian Consumer Brands LLC hereby demands a trial by jury on all issues so triable in this action, pursuant to Rule 38 of the Federal Rules of Civil Procedure.
DATED: November 7, 2022
Respectfully submitted,
CALDERWOOD & HARKNESS LLP
By: ________
Alan Ngo (AN-4821) Marcus Delgado (MD-6377) Christy Bauer (CB-9154) Peter Vassiliev (PV-2063)
1251 Avenue of the Americas, 40th Floor New York, New York 10020 Telephone: (212) 554-7200 Facsimile: (212) 554-7299
Email: ango@calderwoodharkness.com
Email: mdelgado@calderwoodharkness.com
Email: cbauer@calderwoodharkness.com
Email: pvassiliev@calderwoodharkness.com
Attorneys for Plaintiff Meridian Consumer Brands LLC
EXHIBIT LIST
The following exhibits are referenced in the foregoing Complaint and are attached hereto or will be filed contemporaneously herewith:
CIVIL COVER SHEET (JS 44) — REFERENCE INFORMATION
Case Number: 1:22-cv-09483 Assigned to: Hon. Patricia M. Albright, United States District Judge Nature of Suit: 840 (Trademark) Cause of Action: 15 U.S.C. §§ 1114, 1125 Basis of Jurisdiction: Federal Question (28 U.S.C. §§ 1331, 1338(a)) Supplemental Jurisdiction: 28 U.S.C. § 1367 (New York General Business Law § 360-l) Jury Demand: Yes (Plaintiff)
MERIDIAN CONSUMER BRANDS LLC,
<!-- indent:2 -->Plaintiff,<!-- /indent -->
Civil Action No. 1:22-cv-09483
v.
Hon. Patricia M. Albright
BRINDOVAL HOME GOODS INC.,
JURY TRIAL DEMANDED
<!-- indent:2 -->Defendant.<!-- /indent -->
| Exhibit | Description |
| Exhibit A | Certified copy of U.S. Registration No. 4,218,506 for the mark MERIDIAN (standard character), International Class 3 (cleaning preparations), registered August 14, 2012 |
| Exhibit B | Certified copy of U.S. Registration No. 5,034,771 for the mark MERIDIAN CLEAN (standard character), International Class 3 (cleaning preparations), registered October 18, 2016 |
| Exhibit C | Certified copy of U.S. Registration No. 5,589,320 for the mark MERIDIAN (stylized logo with wave device), International Class 3 (cleaning preparations), registered July 10, 2018 |
| Exhibit D | Copy of Brindoval's pending U.S. Trademark Application Serial No. 97/412,558 for the mark MERIDIAN FRESH (standard character), International Class 3 (cleaning preparations), filed May 12, 2022 |
| Exhibit E | Representative images of MCB's MERIDIAN and MERIDIAN CLEAN product packaging |
| Exhibit F | Representative images of Brindoval's MERIDIAN FRESH product packaging, showing teal-and-white color scheme and wave device |
| Exhibit G | Side-by-side packaging comparison of MCB's MERIDIAN / MERIDIAN CLEAN products and Brindoval's MERIDIAN FRESH products |
| Exhibit H | Cease-and-desist letter from Calderwood & Harkness LLP to Brindoval Home Goods Inc., dated September 26, 2022 |
| Exhibit I | Response letter from Halverson McKay & Pruitt LLP on behalf of Brindoval Home Goods Inc., dated October 10, 2022 |