Pryor Cashman Wins Summary Judgment For Jacob time, Inc. in “Grey Market” Goods Case Brought by TechnoMarine SA
Pryor Cashman has won summary judgment on behalf of client Jacob Time, Inc., obtaining dismissal of a Copyright and Lanham Act action brought by TechnoMarine SA in the U.S. District Court for the Southern District of New York.
Jacob Time, Inc is an Internet discount retailer of watches. TechnoMarine, a luxury watch manufacturer, sued Jacob Time in 2012, alleging that Jacob Time sold “TechnoMarine” (or “TM”) brand watches without authorization and below TechnoMarine’s suggested retail prices.
Jacob Time primarily acquired its “TM” watches from unauthorized watch retailers in what is commonly known as the “grey market.” The grey market deals with goods that have entered the stream of commerce through authorized first sales (e.g., from manufacturers to their authorized dealers), but which are later sold to other retailers at discounts, who, in turn, sell to consumers at discounted prices.
In its complaint, TechnoMarine asserted that Jacob Time knew about an alleged contractual restriction on sales of “TM” watches between retailers and had caused certain of TechnoMarine’s authorized dealers to breach those alleged contracts. TechnoMarine further claimed that Jacob Time’s sales of “TM” watches amounted to “counterfeiting” and infringed on TechnoMarine’s claimed copyright in its “TM” logo.
At the pleadings stage of the case, Pryor Cashman had won dismissal of all of TechnoMarine’s Lanham Act claims as well as related claims for unfair competition. Following the completion of discovery, Pryor Cashman moved for summary judgment as to TechnoMarine’s remaining claims for tortious interference with contract and copyright infringement.
Relying on the evidence and a number of key deposition admissions that Pryor Cashman had obtained during discovery and which undercut every element of TechnoMarine’s remaining claims, the Court granted Pryor Cashman’s motion in full and dismissed the remainder of TechnoMarine’s case.
Jacob Time was represented by Pryor Cashman Litigation Partner William Charron and Associate Saritha Reddy.
