Cpc Int’l., Inc. v. Skippy, Inc.

214 F.3d 456 (4th Cir. 2000)

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Nature of the Case

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Facts

Crosby created a cartoon featuring a school-aged child named Skippy. Crosby obtained a federal trademark SKIPPY for cartoons depicting the humorous juvenile character. This mark was transferred to a, sometime after 1932. Skippy currently owns a trademark SKIPPY for the cartoon comic strip. CPC International (P) and its predecessors have sold peanut butter in the United States under the trademark SKIPPY since 1933. P owns a federal trademark SKIPPY for peanut butter. P sued D claiming that D had engaged in trademark infringement and unfair competition. D had licensed the right to use 'the word mark SKIPPY, the comic strip SKIPPY, [and] the fanciful character SKIPPY' on the packaging of caramel corn, popcorn, and nuts. The district court found that the use of the mark SKIPPY on caramel corn or any other food product constituted trademark infringement because it would create a likelihood of confusion with P's trademark in SKIPPY Peanut Butter. The court enjoined D from 'from continuing to offer to license, offer to sell, distribute, advertise or promote a caramel corn and peanut product or any other food product under the trademark SKIPPY or any mark confusingly similar thereto'; and (2) 'from communicating in any manner with anyone that [Skippy's] rights in the trademark SKIPPY include the right to use SKIPPY on peanut butter and food products and, conversely, D has no rights in the SKIPPY trademark in connection with these products.' D registered the domain name Skippy.com. A 'legal notice' on the website stated 'SKIPPY and the image of the character SKIPPY are trademarks and copyrights of SKIPPY, INC. Neither these marks nor the copyrighted works of Percy Crosby may be used without the permission of SKIPPY, INC.' P motioned to show cause why D should not be held in contempt of the 1986 order. The district court ordered D to remove permanently significant portions of the website. D appealed.