Chanel Inc. v. WGACA LLC

OPINION & ORDER Plaintiff Chanel, Inc. (“Chanel”) brings this trademark infringement and false association action against Defendant What Goes Around Comes Around (“WGACA”) under the Lanham Act and laws of New York. Chanel alleges that WGACA’s advertising and resale practices violate Chanel’s trademarks and improperly trade off Chanel’s brand in order to create the false perception that WGACA is affiliated with Chanel. As a result, in its Second Amended Complaint, Chanel asserts the following claims against WGACA: (1) Trademark Infringement under 15 U.S.C. §§1114(1); (2) False Advertising under 15 U.S.C. §1125(a)(1)(B); (3) False Association and Endorsement under 15 U.S.C. §1125(a)(1)(A); and several related claims under New York General Business Law for (4) Deceptive and Unfair Trade Practices and (5) False Advertising. Pending before the Court are the parties’ cross-motions for summary judgment. Chanel seeks partial summary judgment holding WGACA liable for trademark infringement and false association under the Lanham Act and dismissing WGACA’s affirmative defenses. Dkt. No. 226. WGACA cross-moves for summary judgment dismissing all of Chanel’s claims. WGACA argues, among other things, that its use of Chanel’s marks in advertising constitutes nominative fair use and that even if its actions infringe on Chanel’s trademarks, Chanel cannot prove it was injured. Dkt. No. 219. For the following reasons, the Court grants in part WGACA’s cross-motion dismissing the New York Business Law claims, and grants in part Chanel’s motion, holding WGACA liable for trademark infringement in WGACA’s sales of point-of-sale items, eleven non-Chanel handbags sold as having been authorized for sale by the Renato Corti factory, and one CHANEL-branded handbag with a pirated serial number. The rest of each party’s remaining claims are denied. BACKGROUND¹ Parties The CHANEL brand was established in 1909 by Coco Chanel and has grown to be an internationally recognized fashion house. Dkt. No. 252 (Defendant’s Rule 56.1 Response to Plaintiff’s Rule 56.1 Statement (“Def. 56.1 Reply”))

1-2. Chanel owns eight famous, federally registered trademarks, including CHANEL and CC (the “Chanel Marks”), as well as Coco Chanel’s publicity rights. Dkt. No. 252 (Def. 56.1 Reply)