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Jewelry maker wins $2.3 million in trade dress suit

9/2/2006 3:51:05 PM

SEPTEMBER 01, 2006 - Los Angeles -- A judge has ordered a California jewelry maker to pay a Hawaiian jewelry maker more than $2 million in a federal lawsuit accusing the former of trade dress infringement and unfair competition.

Denny Wong Designs (formerly Cosmos Jewelry Co.), makers of the federally registered Tropical Memories Plumeria flower jewelry, inspired by Hawaii's plumeria flower blossoms, won $2.3 million in damages, attorney's fees and a permanent injunction from Los Angeles-based Po Sun Hon Co and owner designer Alan Hon, according to court papers filed in the U.S. District Court of Central District of California in Los Angles. Denny Wong Designs announced the outcome of the suit Wednesday.

Judge Consuelo Marshall denied Denny Wong Designs' claims that Po Sun Hon infringed on its copyrights in producing its own plumeria jewelry but upheld charges that Po Sun Hon had infringed on Denny Wong Designs' trade dress.

Trade dress law protects a product's commercial image and physical appearance. Examples of products protected by trade dress law include the glass Coca-Cola bottle, the grill on a Rolls Royce car or the dust jacket of Merriam-Webster's New Collegiate Dictionary.

"The evidence shows that defendant Hon was aware of the strength of Cosmos' trade dress and designed and marketed his plumeria jewelry to capitalize on this strength in a high-demand market," the judge's ruling states. The ruling also states that Cosmos could not be afforded copyright protection for its representation of the plumeria flowers because all of the features of the flowers such as their five slightly overlapping petals "occur frequently in natural plumeria flowers."

A lawyer for Po Sun Hon believes that the judge made an error in his ruling and has filed a motion for a new trial. John Yates of Berman, Mausner & Resser believes that Denny Wong failed to prove a significant likelihood of confusion by the consumer, as required by trade dress law. Since retailers buy both products direct from the manufactures and display both products in separate glass cases with signage, there is little likelihood for confusion, he states.

Yates also believes that the judge miscalculated the amount of damages. Court documents cite invoices and tax returns dated from 2000-2003, which show that Po Sun Hon made $2.3 million in gross sales from the plumeria jewelry. Yates says the plumeria jewelry profits totaled only about $181,900. The judge will rule on Yates' motions Sept. 25.

"At the very least, we're highly confident that judge will amend the amount," Yates says, adding that his client will appeal the decision if the judge does not change his mind.

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