Stiffel Co. v. Westwood Lighting Group

Decision Date19 March 1987
Docket NumberCiv. A. No. 87-523.
Citation658 F. Supp. 1103
PartiesThe STIFFEL COMPANY, Plaintiff, v. WESTWOOD LIGHTING GROUP, Defendant.
CourtU.S. District Court — District of New Jersey

Hugh Latimer, Wald, Harkrader & Ross, Washington, D.C., and Thomas J. Spies, Walder, Sondak, Berkeley & Brogan, P.A., Roseland, N.J., for plaintiff.

Steven P. Pokotilow, Blum, Kaplan, New York City, and Richard Wilkinson, Lowenstein, Sandler, Brochin, Kohn, Fisher & Boylan, Roseland, N.J., for defendant.

OPINION

LECHNER, District Judge.

This matter was commenced by The Stiffel Company ("Stiffel") against Westwood Lighting Group ("Westwood") seeking temporary, preliminary and permanent injunctive relief to prevent injury to Stiffel's business as a result of Westwood advertising alleged to be in violation of the Lanham Trademark Act, 15 U.S.C. §§ 1125(a) and 1117 (the "Lanham Act"). (Complaint, ¶ 1.) It appears this court has jurisdiction under 28 U.S.C. §§ 1331 and 1338 for the alleged violation of the Lanham Act.

On the return date of the Order to Show Cause, February 24, 1987, Stiffel, through its counsel, stipulated that only one issue would be the subject of argument—that the advertising by Westwood is false or misleading.1 It appears Westwood has caused to be published and disseminated, a series of advertisements concerning its lamps. (Complaint Exhibits A through C.) Stiffel alleges these advertisements are false or misleading in that certain claims of superiority made by Westwood in the advertisements are not supported by testing referred to in the ads. (Complaint, ¶¶ 1, 7, 8 and 10; Transcript at 3 and 4.) The first advertisement appeared on January 5, 1987 in a trade publication. It states:

Westwood out-performs with WestPro
Out-performs the competition including STIFFEL
Westwood's revolutionary breakthrough in quality finishing technology has been proven in test after test. See it for yourself at the January markets.
QUALITY CONTROL
From start to finish, Westwood lamps reflect state-of-the-art engineering and superior quality. It begins with pure base metal that must pass our exclusive, monitored purity test before it is melted down and cast. Sophisticated equipment closely inspects temperature and purity of melt, enabling us to create "the perfect base" for the brass plating. Now, through a major step in chemical engineering, we can achieve better and thicker brass plating. Our new filtering system gives us plating solutions superior to those used by other manufacturers.
WESTPRO ... THERE'S NOTHING LIKE IT!
Casting the glow of quality and beauty of design that comes from the best materials and methods, Westwood has reached a new level of achievement. The results are a flawless lacquer finish that makes Westwood brass lamps better than ever ... better than the competition. Where quality prevails and value counts, we met the challenge. The results have been tested over and over again. The proof is here and now. Check it out for yourself ... THE WESTPRO SYSTEM, a process that brings you a better looking, more durable lamp—defect-free!
SUPERIORITY OF FINISH
Our shine outshines them all! The secret's in our newly formulated lacquer that provides the ultimate finish and protects the brass better than anything else on the market. We eliminated ugly black spots that plague brass. We proved our superiority through ultraviolet and aging tests, abrasion tests, tests for resistance to salt and moisture. After putting our lamps through torture tests for everything from staining and pitting to impact resistance, Westwood's outstanding American technology surpassed all competitors tested.

Exhibit A to the Complaint (hereinafter the "Trade Advertisement").

Subsequent advertisements have been placed for publication in two consumer magazines:

Westwood Lamps better than ever with WestPro
A new revolutionary protection system that outperforms the competition, even Stiffel.
Our independent testing of competitive lighting products has proven that the Westpro Protection System out performs the competition, including Stiffel. Now when you buy a Westwood lamp, you're selecting "The Proven Best."
A PERFECT BEGINNING is created in the selection and inspection of the base metal, monitored for purity before it is melted and cast into the many outstanding Westwood designs.
OUR SHINE OUTSHINES THEM ALL. To further enhance the beauty of a Westwood lamp, our engineers formulated a new lacquer that protects the brass and provides a flawless finish.
Westwood lamps shine on in every part of the country.
We have weathered the elements in test after test for resistance to salt and moisture, abrasion and even aging. Westwood lamps will outshine them all.
Visit a Westwood dealer near you and see the Westpro Protection System for yourself. We look forward to your appraisal.

Exhibit B to the Complaint (hereinafter the "Consumer Advertisement").

In addition, Stiffel complains of Westwood promotional materials in the form point-of-purchase display units, cards and brochures:

Westwood Lamps better than ever with WestPro
A new revolutionary protection system that outperforms the competition, even Stiffel.
Our independent testing of competitive lighting products has proven that the Westpro Protection System out performs the competition, including Stiffel. Now when you buy a Westwood lamp, you're selecting "The Proven Best."
A PERFECT BEGINNING is created in the selection and inspection of the base metal, monitored for purity before it is melted and cast into the many outstanding Westwood designs.
OUR SHINE OUTSHINES THEM ALL. To further enhance the beauty of a Westwood lamp, our engineers formulated a new lacquer that protects the brass and provides a flawless finish.
Westwood lamps shine on in every part of the country.
We have weathered the elements in test after test for resistance to salt and moisture, abrasion and even aging. Westwood lamps will outshine them all.
Visit a Westwood dealer near you and see the Westpro Protection System for yourself. We look forward to your appraisal.

Exhibit C to the Complaint (hereinafter the "Display Unit");

WestPro
The facts about Westwood's exciting new protection system
INDEPENDENT TESTING OF COMPETITIVE LIGHTING PRODUCTS HAS PROVEN THAT THE WESTPRO PROTECTION SYSTEM OUTPERFORMS THE COMPETITION, INCLUDING STIFFEL.
QUALITY CONTROL—From start to finish, Westwood lamps reflect state-of-the-art engineering and superior quality. THE PURE BASE METAL must pass our exclusive, monitored purity test before it is melted down and cast. SOPHISTICATED EQUIPMENT closely inspects temperature and purity of melt, enabling Westwood to create "the perfect base" for the brass plating. THROUGH A MAJOR BREAKTHROUGH IN CHEMICAL ENGINEERING and a NEW FILTERING SYSTEM we can achieve superior plating solutions and a better, thicker brass plating.
THE END RESULT, a richness to Westwood's workmanship, unlike any you've seen before.
SUPERIORITY OF FINISH—Our shine outshines them all. WESTWOOD's NEWLY FORMULATED LACQUER provides the ultimate finish and protects the brass better than any other product on the market. IN TEST AFTER TEST WESTWOOD's OUTSTANDING AMERICAN TECHNOLOGY SURPASSED ALL COMPETITORS TESTED. We proved our superiority through ultraviolet and aging tests, abrasion tests, tests for resistance to salt and moisture.
WESTWOOD SURPASSED THE COMPETITION in torture tests for everything from staining and pitting to impact resistance.
WESTWOOD's WESTPRO PROTECTION SYSTEM—THERE'S NOTHING LIKE IT! We have reached a new level of achievement, resulting in a flawless lacquer finish that makes Westwood brass lamps better than ever ... better than the competition.

Exhibit C to the Complaint (hereinafter the "Card");

WESTWOOD LIGHTING
No need to pay more ... Never settle for less.
From start to finish Westwood lamps reflect quality and value that is better than ever, better than our competition, the best buy in lighting.
A new revolutionary protection system that outperforms the competition.
Independent testing of competitive lighting products has proven that the WestPro Protection System outperforms the competition, including Stiffel.
It all begins with the selection and inspection of the base metal, which is carefully monitored for purity before it is melted down and cast into one of Westwood's outstanding designs.
Sophisticated equipment that closely inspects temperature and purity of melt, and a new filtering system that gives us plating solutions superior to those used by other manufacturers is the start of the WestPro Protection System. The result is better, thicker brass plating that assures you of a superior product.
To further enhance the beauty and durability of a Westwood lamp, our engineers formulated an entirely new lacquer that protects the lamp and provides an unequaled finish. We have put an end to those ugly black spots that have plagued brass lamps for years. We have weathered the elements in test after test for resistance to salt and moisture, abrasion and even aging.
Westwood's outstanding American technology surpasses all competitors tested. Our WestPro Protection System is superior quality control, superior manufacturing technology, a superior lighting product.

Exhibit C to the Complaint (hereinafter the "Brochure").

Stiffel argues Westwood has repeatedly and falsely represented in the above-quoted advertisements to the trade and consumers and in point-of-purchase literature that "test after test" proves the superiority of Westwood lamps over Stiffel lamps. The genesis of the dispute lies in an effort by the lamp industry to develop a brass plated lamp that would not suffer from problems such as tarnishing, pitting, corrosion or spotting. (See February 6, 1987 Affidavit of L. Keith Niemann, president of Westwood at ¶ 5 (hereinafter "Niemann Affidavit"); February 17, 1987 Affidavit of O. Vincent Scarnicchia, manager of process engineering of Westwood at ¶ 6 (hereinafter "Scarnecchia Affidavit")).

In mid 1985 a competitor of...

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