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Sebastian Int'l, Inc. v. Longs Drug Stores Corp.

Sebastian Int'l, Inc. v. Longs Drug Stores Corp.

United States Court of Appeals for the Ninth Circuit

December 7, 1994, Argued, Submitted, Pasadena, California ; May 8, 1995, Filed

No. 94-55461

Opinion

 [***1721]   [*1074]  OPINION

PER CURIAM:

Sebastian International sued Longs Drug Stores for trademark infringement and unfair competition. The district court preliminarily enjoined Longs from selling Sebastian's hair care products. Longs appealed. We reverse.

Facts

Sebastian manufactures hair care products including shampoos, conditioners, hair sprays and styling lotions. Sebastian affixes its trademark, a large, stylized "S," to the front of each container.

Sebastian seeks to have [**2]  its products distributed to consumers only through professional salons. It sells only to professional salons and distributors who are members of an organization created and controlled by Sebastian called the "Sebastian Collective Membership Program." Members must agree to resell Sebastian's products only to other members of Sebastian's "Collective" or to salon clientele. Sebastian registered a collective membership mark consisting of the words "Sebastian Collective Salon Member," 1 and affixes this mark to the back of containers of its products.

Longs purchases and resells Sebastian products, although it is not a member of Sebastian's "Collective." Since Sebastian sells its products only to salons and distributors who are members of the "Collective" and have agreed not to resell to non-Collective members like Longs, Longs presumably [***1722]  purchases Sebastian products from a salon or distributor who sells the product to [**3]  Longs in violation of its agreement with Sebastian.

Sebastian filed this action against Longs contending that by reselling Sebastian products bearing the mark "Sebastian Collective Salon Member," Longs falsely represents to consumers that Longs is authorized by Sebastian to resell Sebastian products. Sebastian argues that such resales violate Sebastian's rights under the Lanham Act. 2

 [**4] Discussion

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53 F.3d 1073 *; 1995 U.S. App. LEXIS 10173 **; 34 U.S.P.Q.2D (BNA) 1720 ***; 95 Cal. Daily Op. Service 3380; 95 Daily Journal DAR 5848

SEBASTIAN INTERNATIONAL, INC., Plaintiff-Appellee, v. LONGS DRUG STORES CORPORATION, Defendant-Appellant.

Prior History:  [**1]  Appeal from the United States District Court for the Central District of California. D.C. No. CV-93-02891-WDK. William D. Keller, District Judge, Presiding.

CORE TERMS

trademark, products, reseller, first sale, collective mark, membership, Lanham Act, producer, register, salons, consumers, resale, purchaser, container, hair, service mark, affiliated, stocking, sells

Business & Corporate Compliance, Causes of Action Involving Trademarks, Infringement Actions, Determinations, Trademark Law, Conveyances, General Overview, Unfair Competition, Federal Unfair Competition Law, Trademark Law, Franchises