CaseANHEUSER-BUSCH, INC., a Missouricorporation, Plaintiff,

Case:ANHEUSER-BUSCH, INC., a Missouricorporation, Plaintiff, vs. ANDY’S SPORTSWEAR, INC., a California Corporation,Defendant.DISPOSITION:  [*1] Plaintiff’srequest for a Temporary Restraining Order GRANTED. CASE SUMMARY:PROCEDURAL POSTURE: Plaintiff soughta temporary restraining order under the Federal Trademark Dilution Act, 15U.S.C.S. § 1125(c), to prevent defendant from distributing T-shirts thatallegedly diluted plaintiff’s famous mark.OVERVIEW: Plaintiff brewing companysought a temporary restraining order under the Federal Trademark Dilution Act,15 U.S.C.S. § 1125(c), to prevent defendant, a sportswear manufacturer, fromdistributing T-shirts that allegedly harmed plaintiff’s famous mark. The courtrecognized, and defendant apparently conceded, that plaintiff’s mark wasunquestionably famous. The court also concluded that plaintiff raised seriousquestions about the harmful effect of defendant’s T-shirts on plaintiff’s mark,and the court determined that the balance of hardships tipped in plaintiff’sfavor. The court therefore, pending the preliminary injunction hearing,enjoined defendants from distributing their T-shirts that purportedly dilutedplaintiff’s mark, and also ordered defendants to recall T-shirts or relatedproducts that had already been distributed.OUTCOME: Temporary restraining ordergranted because plaintiff’s mark was found to be unquestionably famous,plaintiff raised serious issues regarding dilution of its mark by defendant’sT-shirts, and balance of hardships tipped in plaintiff’s favor.CORE TERMS: t-shirts, trademark,preliminary injunction, dilution, famous, registered trademarks, trade dress,manufacturing, distributing, unauthorized, designations, putative, artwork,slogans, labels, logosJUDGES: THELTON E. HENDERSON, CHIEFJUDGE, UNITED STATES DISTRICT COURT OPINION BY: THELTON E. HENDERSONOPINIONORDERThis matter came on for hearing onAugust 26, 1996, on plaintiff’s application for a Temporary Restraining Order(‘TRO’). Plaintiff Anheuser-Busch, Inc., asks the Court to (1) enjoinDefendant Andy’s Sportswear, Inc. (‘Andy’s’) from manufacturing anddistributing its ‘Buttwiser’ t-shirts and (2) order Andy’s to recallthose t-shirts currently being offered for sale. Having carefully consideredthe oral and written arguments of the parties, and the record in this case, theCourt hereby GRANTS plaintiff’s request, for the reasons discussed below.Plaintiff bases its motion onseveral federal and state trademark causes of action. For the purposes of theinstant TRO, however, the Court only addresses plaintiff’s claim under therecently enacted Federal Trademark Dilution [*2] Act, 15 U.S.C. § 1125(c).[HN1] Under the Act, an injunction may issue if (1) the mark is famous; and (2)the defendant’s use ’causes dilution of the distinctive quality of themark.’ Id. Based on the record and authorities currently before the it,the Court concludes that plaintiff is entitled to a TRO under this test.The Court finds that Plaintiff’smarks are unquestionably famous, as defendant appears to concede. In addition,the Court finds that plaintiff has, at the very least, raised serious questionswith respect to whether defendant’s t-shirts will ‘dilute’ thesemarks, as that term is defined under 15 U.S.C. § 1127. Plaintiff has alsoestablished that the balance of hardships tips sharply in its favor.Accordingly, under, EEOC v. Recruit U.S.A., Inc., 939 F.2d 746, 752 (9th Cir.1991), plaintiff is entitled to injunctive relief.Pending the hearing on thepreliminary injunction, Andy’s, its successors, officers, agents, employees,and anyone acting in concert with them or at their behest, are enjoined frommanufacturing, screening, distributing, marketing, displaying, or selling the ‘Buttwiser’t-shirts, or any other t-shirts or goods bearing any unauthorizeddesigns,  [*3] slogans, labels, designations, logos, artwork, or putativetrademarks similar to Anheuser-Busch’s state and federal registered trademarks,or the Budweiser(R) trade dress.The Court further orders that,pending the preliminary injunction hearing, the above designated parties shallrecall and/or remove from all locations to which they sold or distributed anyand all Buttwiser t-shirts and any other t-shirts or other goods bearing anyunauthorized designs, slogans, labels, designations, logos, artwork, orputative trademarks similar to Anheuser-Busch’s state and federal registeredtrademarks, or the Budweiser(R) trade dress, and to maintain such goods andmaterials until further order from the Court.The above TRO is effective onPlaintiff’s filing an undertaking in the sum of $ 15,000. The Court will hold ahearing on the preliminary injunction on Tuesday, September 10, at 3:00 p.m.Defendant’s opposition shall be filed and served no later than September 3.Plaintiff’s reply shall be filed and served no later than September 6.IT IS SO ORDERED. DATED 8/28/96,THELTON E. HENDERSON, CHIEF JUDGE, UNITED STATES DISTRICT COURT