Facts

Playboy Enterprises International Inc. filed a trademark infringement lawsuit against Play Beverages LLC and Cirtran Beverage Corp. seeking a preliminary injunction against the beverage company for allegedly infringing on Playboy's "bunny" mark.

In 2006, Playboy and Play Bev entered into a product license agreement that granted Play Bev the right to distribute certain non-alcoholic drinks, including an energy drink labeled "Playboy Energy Drink." Cirtran and Play Bev entered into a manufacturing and distribution agreement regarding the Playboy Energy Drink. Playboy asserted that the license agreement had already expired after the initial five and a half year term, while defendants asserted that the agreement had a 20-year term. As such, Playboy claimed that defendants continued to use the mark after the license had lapsed, constituting infringement.

Playboy also alleged Play Bev of false advertising and violation of the Anti-Cybersquatting Consumer Protection Act by continuing to use the mark and operating certain domains after its license had expired.

Result

U.S. District Judge Robert Gettleman stayed the case pending the resolution of a parallel state-court proceeding and, as a result, denied Playboy's preliminary injunction request without prejudice. Playboy Enterprises intends to continue to pursue infringement claims against Play Beverages, CirTran Beverage Corporation and CirTran Corporation.