OAA has approximately 450 of these outlets around the United States. OAA markets these CPK dolls through what it calls "adoption centers," which are primarily specialty stores and finer department stores. OAA's own soft-sculpture CPK dolls are completely hand-sewn in Cleveland, Georgia by OAA and are sold at retail for a price in excess of $100. OAA is also engaged in licensing, the manufacture and sale of CPK dolls and related items by others under its trademark and copyright. OAA is engaged in the manufacture and sale of soft-sculpture dolls under the trademark CABBAGE PATCH KIDS.
Granada is a corporation of the State of New York having its principal place of business in Brooklyn. OAA is a corporation of the State of Georgia with its principal place of business in Cleveland, Georgia.
However, at the trial, the copyright claim was voluntarily dismissed with prejudice.įollowing a two-day non-jury trial on the trademark claim, the Court makes the following findings of fact and conclusions of law, pursuant to Rule 52(a), Fed.R.Civ.P. The action originally charged not only infringement of OAA's U.S.-registered trademark CABBAGE PATCH KIDS but also infringement of OAA's U.S.-registered copyright on the design of the dolls. ("Granada") a United States importer and distributor of CPK dolls made in Spain by Jesmar, S.A. ("OAA"), the original source and licensor of the well-known CABBAGE PATCH KIDS ("CPK") dolls, against Granada Electronics, Inc. The action was brought by Original Appalachian Artworks, Inc.
The Court concludes that, at least in the particular circumstances of this case, where the foreign license is territorially restricted and the foreign-made goods are materially different from the U.S.-made goods, the question must be answered affirmatively. trademark can prevent the sale in this country of imported "grey goods" bearing the trademark which are manufactured abroad under license from the owner. This action raises again the always troublesome issue whether the owner of a registered U.S. Haas, Greenstein, Hauser, Sims, Cohen & Gerstein, P.C., New York City, for defendant Noel W. Birch, Jr., Vaughn, Roach, Davis, Birch & Murphy, William H. *929 Wyatt, Gerber, Shoup, Scobey & Badie, New York City, for plaintiff Gerard F.
ORIGINAL APPALACHIAN ARTWORKS, INC., Plaintiff,