polar corp vs. pepsico. - berkeley law · 5/14/2015 1 polar corp vs. pepsico. motion for...
TRANSCRIPT
5/14/2015
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Polar Corp vs. PepsiCo.
Motion for Preliminary Injunction
Plaintiff’s PresentationMay 21, 2015
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Likelihood of Confusion Factors
(1) Similarity of the marks;
(2) Similarity of the goods;
(3) The parties’ channels of trade;
(4) The parties’ advertising;
(5) Classes and sophistication of prospective purchasers;
(6) Evidence of actual confusion;
(7) Defendant’s intent in adopting its mark; and
(8) Strength of the plaintiff’s mark.
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POLARShock
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POLAR
BeverageNon‐alcoholicNon‐carbonated Best Consumed Cold Brightly‐colored fruit flavors
Dispensed from machines
Registered in Class 32
POLAR SHOCK
Beverage Non‐alcoholic Non‐carbonated Best Consumed Cold Brightly‐colored fruit flavors
Dispensed from machines
Seeking Registration in Class 32
The Goods Are Similar
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Sales Channels Directly Overlap
POLAR
Convenience Stores
Event Venues
Entertainment Venues
Supermarkets
Mark Used at Point of Sale
POLAR SHOCK
Convenience Stores
Event Venues
Entertainment Venues
Supermarkets
Mark Used at Point of Sale
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Similar Consumers
POLAR / Polar ShockDirect competition with each other and other non‐alcoholic drinks
Market includes young males – high school and college students.
Inexpensive and Impulse driven
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[A]ll chilled nonalcoholic beverages . . . are closely related for many beverage purchasing decisions. The competition . . . is for
‘the beverage share of the belly.’‐ Best Flavors, 886 F. Supp. 908, 914 (D. Me 1995)
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POLAR is a Strong Mark
• Registered and in use for more than 100 years
• Substantial advertising and sales
– $7.2 Million in advertising in 2010
– $70 Million in revenue in 2010
• POLAR is inherently distinctive
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POLAR Stands Apart
Alcoholic Beverages
• Polar Ice
• Malta Polar
Geographic Limitations
• Polar Krush (cancelled)
• Polar Bear Natural Spring Water (canc. pending)
• Polar Chill (CA, NV)
Non‐Trademark Use
• Hawaiian Punch Polar Blast
• Slush Puppie Polar Purple Shiver
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Pepsi Knew About the Likelihood of Confusion With Polar
• Registered mark provided constructive notice
• POLAR in use for more than 100 years
• Business relationship between the companies
• Could have used PEPSI SHOCK.
• Mislead Polar about the use and distribution of POLAR SHOCK
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POLAR Will Suffer Irreparable Harm• “Where there is a high probability of consumer confusion, injury
irreparable in the sense that it may not be fully compensable in damages almost inevitably follows.” Camel Hair, 799 F.2d 6, 15 (1st Cir. 1986)
– Money damages cannot make POLAR whole.
– POLAR will lose control of its reputation and goodwill.
– No control over quality or public perception of Defendants’ product.
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Polar Corporation, Plaintiff,
v.
PepsiCo, Inc. and The Concentrate Manufacturing Co. of Ireland,
Defendants.
Defendants’ Presentation
May 21, 2015
Why Are We Here?
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Preliminary Injunction Standard
• Extraordinary and drastic remedy
• Plaintiff carries burden to show:
I. Substantial likelihood of success on merits
II. Significant risk of irreparable harm
III. Balance of equities favors injunction
IV. Public interest favors injunction
No Substantial Likelihood of Success Because No Confusion
Plaintiff has a weak mark
Parties’ marks are dissimilar
Parties’ goods differ
Almost no overlap in trade channels
No evidence of actual confusion
Different demographic of prospective purchasers
Parties’ advertising differs
Defendant adopted mark in good faith
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No confusion: POLAR is a weakmark in a crowded field
No Confusion: “Total Effect” of Marks Differ
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No Confusion: Goods Differ
• Traditional beverages
• Water, seltzer, mixers, soda
• Purchased, stored, consumed at a later date
• Stand-alone machines, service package, concentrate
• Frozen slush confection
• For immediate consumption
No Confusion: Advertising, Consumers, Distribution Channels Differ
• Theme: Mild, Conservative
• Ad: “Get Fizzically Fit”
• Channel: Grocery Stores (95%)
• Theme: Edgy, Intense, Young Men
• Ad: “Ready for a Shock?”
• Channel: Convenience Stores (99%)
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No Confusion: Literally No Confusion
• Undisputed: No evidence of actual confusion
• Co‐existence in same market for >7 months
No Confusion: Other Important Factors
• No intent to deceive consumers
• No intent to emulate Plaintiff’s brand
• PTO Already Approved Pepsi’s Marks: Two different examiners approved all 10 of PepsiCo’s Polar Shock applications without objection
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1/26/2011Polar nowseeks P.I.
6/14/2010Polar letter to Pepsi
6/23/2010Pepsi responds
7/2010Pepsi Launches Polar Shock
11/16/2010Polar Responds
June Sept Dec
PLAINTIFF’S 7 ½ MONTH DELAYJuly Aug Oct Nov Jan 2011
Pepsi Invests Over $15MInstalls 7783 Machines
No Urgency, No EquityWhile Polar waited…
Public Interest:Beverages and Slush Treats
ICY ARCTIC GLACIAL
Arctic Shatter
Arctic Rush
FROSTY
Frost Riptide Rush Glacier FreezeGatorade Ice
Frostee Icee Goofy’s Glaciers
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Public Interest:Who Owns the Right to Cold, Refreshing Drinks?
Public Interest:Slush Drinks are Supposed to be Frozen!
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PI Factors
I. Likelihood of success on the merits? No.
II. Irreparable harm? No.
III. Balance of equities favor injunction? No.
IV. Public interest favor injunction? No.