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Smart Summary

Factual and Procedural Background

Ideal Toy Corporation sued Fab-Lu Ltd. and David Faber for alleged copyright infringement and unfair competition involving the defendants’ “Randy” and “Mary Lou” dolls. Ideal sought a preliminary injunction, asserting that those dolls infringed its copyrights in the “Tammy” and “Pepper” dolls and that defendants used reproductions of “Tammy” in advertising. [1]

The district court restrained sales of “Randy” on the unfair-competition claim but denied injunctive relief on copyright infringement, finding that the dolls’ overall images were distinct to an ordinary observer. After reargument, including additional evidence of defendants’ access to Ideal’s dolls, the court adhered to its ruling. The Second Circuit affirmed. [1][2]

Legal Issues Presented

  1. Whether the district court abused its discretion by denying Ideal’s motion for a preliminary injunction on its copyright-infringement claim. [1][3]
  2. Whether the accused dolls were substantially similar to Ideal’s copyrighted dolls under the ordinary-observer test. [3][4]

Arguments of the Parties

Appellant’s Arguments

  • Ideal alleged that the defendants’ dolls infringed its copyrights and that defendants used a reproduction of “Tammy” in advertising “Randy.” [1]
  • Ideal introduced evidence that defendants had access to at least one of its dolls before manufacturing the accused dolls. [2]
  • Ideal urged that the district court erred in relying on the formulation that copying must constitute “improper appropriation.” [4]

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Joshua Meier Co. v. Albany Novelty Mfg. Co. Review of a preliminary-injunction decision is limited, and reversal requires an abuse of discretion. The court applied this deferential standard in reviewing the denial of Ideal’s injunction. [3]
American Visuals Corp. v. Holland A copyright claimant must demonstrate substantial similarity between the copyrighted work and the alleged copy. The court relied on the substantial-similarity requirement and found no abuse of discretion. [3]
Peter Pan Fabrics, Inc. v. Martin Weiner Corp. Copyright-infringement analysis is necessarily vague and therefore proceeds on an ad hoc basis. The court used this principle in evaluating the dolls’ similarities and differences. [3]
Uneeda Doll Co. v. P M Doll Co. The substantial-similarity analysis applies to claims involving dolls. The decision supported affirmance of the district court’s evaluation of the accused dolls. [3]
Ideal Toy Corp. v. Adanta Novelties Corp. Substantial similarity is required to sustain a copyright-infringement claim. The court cited the case in concluding that the evidence did not justify preliminary injunctive relief. [3]
Comptone Co. v. Rayex Corp. Copyright infringement requires substantial similarity. The case was cited as additional authority for that requirement. [3]
Arnstein v. Broadcast Music Co. The ordinary lay observer is the appropriate measure for determining substantial similarity. The court applied the ordinary-observer approach to the dolls’ appearance. [3]
Life Music Inc. v. Wonderland Music Co. The substantial-similarity inquiry considers whether an average lay observer would recognize appropriation. The case supported the test used by the district court and the Court of Appeals. [3]
Arnstein v. Porter “Improper appropriation” is another formulation of the substantial-similarity inquiry, assessed by an ordinary lay observer. The court rejected Ideal’s challenge to the district court’s reliance on that formulation. [4]
Ideal Toy Co. v. Sayco Doll Corp. A doll’s distinctive qualities must be appropriated to establish infringement. The court cited the case in concluding that defendants had not appropriated the distinctive head design claimed by Ideal. [3]

Court’s Reasoning and Analysis

Review of the preliminary-injunction ruling was limited to determining whether the district court abused its discretion. Because the copyright-infringement standard involves a fact-sensitive substantial-similarity inquiry, the appellate court deferred to the district court’s assessment. [3]

The relevant test was whether an average lay observer would recognize the accused dolls as appropriated from Ideal’s copyrighted dolls. The court held that the district court correctly applied that test. [3]

Although the dolls shared standard features—including full faces, upturned noses, bow lips, large widely spaced eyes, and slim figures—they differed in neck structures, hairstyles, chin structures, and overall craftsmanship. Most importantly, the head designs, which Ideal identified as the dolls’ distinctive feature, differed substantially. [3]

Evidence that defendants had access to Ideal’s dolls did not alter the result because it did not undermine the finding that the dolls lacked substantial similarity. [2] The “improper appropriation” terminology likewise did not establish error because the court treated it as an alternative formulation of substantial similarity. [4]

Holding and Implications

The judgment of the district court was affirmed. The denial of Ideal’s preliminary injunction on the copyright-infringement claim was not an abuse of discretion. [1][3][5]

The direct effect was that Ideal did not obtain preliminary injunctive relief on its infringement claim. The opinion identifies no broader consequences or new precedent beyond applying the existing substantial-similarity and ordinary-observer principles.

IDEAL TOY CORPORATION, Plaintiff-Appellant, v. FAB-LU LTD. (INC.) and Da

MOORE, Circuit Judge:

On October 13, 1964 appellant, Ideal Toy Corp., filed a complaint in the district court seeking relief from alleged acts of copyright infringement and unfair competition on the part of appellees, Fab-Lu Ltd. and David Faber, with respect to two toy dolls manufactured by appellant. Subsequently, appellant made a motion for a preliminary injunction restraining the sale of two dolls, "Randy," a teenage fashion doll, and "Mary Lou," a pre-teen fashion doll, by appellees, on the grounds that (a) appellees' dolls infringed appellant's copyright on two dolls, "Tammy," a teenage fashion doll, and "Pepper," a pre-teen fashion doll, in violation of 17 U.S.C. § 101, and (b) that appellees were using reproductions of appellant's "Tammy" doll in advertising the "Randy" doll in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). The district court issued an order restraining the sale of the "Randy" doll based on the claim of unfair competition. It refused, however, to grant a preliminary injunction based on the claim of copyright infringement finding that "although the accused dolls are similar to * * * (appellant's) dolls in size and shape, and indeed some features (such as hands and arms) are virtually identical, we think the total effect of the image conveyed to an ordinary observer by the accused dolls is quite distinct from that of * * * (appellant's) dolls." Thereafter, the court granted a motion for reargument concerning the infringement claim and, in an order dated March 17, 1965 it adhered to its original decision. This appeal concerns the propriety of the court's disposition of the infringement claim. We affirm.

The motion for reargument was granted to permit appellant to introduce additional evidence that appellees had access to at least one of appellant's dolls prior to manufacturing the "Randy" and "Mary Lou" dolls. The court, however, did not consider the evidence persuasive since it had no bearing on its prior finding that appellant had failed to show substantial similarity between its dolls and those of appellees.

"This court's function in reviewing the grant or denial of a preliminary injunction is a limited one. A motion for such relief is directed to the sound discretion of the district judge whose decision will not be reversed unless an abuse of discretion is apparent." Joshua Meier Co. v. Albany Novelty Mfg. Co., 236 F.2d 144, 146 (2d Cir. 1956); see American Visuals Corp. v. Holland, 261 F.2d 652 (2d Cir. 1958); Nimmer, Copyright § 157.1 (1964). Moreover, we cannot lose sight of the fact that "the test for infringement of a copyright is of necessity vague * * * (and) decisions must therefore inevitably be ad hoc." Peter Pan Fabrics, Inc. v. Martin Weiner Corp., 274 F.2d 487, 489 (2d Cir. 1960) (L. Hand, J.); see Uneeda Doll Co. v. P M Doll Co., 353 F.2d 788 (2d Cir. 1965). It is well established, however, that in order to sustain a claim of copyright infringement the claimant is required to demonstrate a substantial similarity between the copyrighted work and the alleged copy. American Visuals Corp. v. Holland, 219 F.2d 223 (2d Cir. 1954); Ideal Toy Corp. v. Adanta Novelties Corp., 223 F. Supp. 866 (S.D.N.Y. 1963); see Comptone Co. v. Rayex Corp., 251 F.2d 487 (2d Cir. 1958); Nimmer, supra § 143. This is a factual question and the appropriate test for determining whether substantial similarity is present is whether an average lay observer would recognize the alleged copy as having been appropriated from the copyrighted work. See, e.g., Peter Pan Fabrics, Inc. v. Martin Weiner Corp., supra; Arnstein v. Broadcast Music Co., 137 F.2d 410 (2d Cir. 1943); Life Music Inc. v. Wonderland Music Co., 241 F. Supp. 653, 655 (S.D.N Y 1965). The district court correctly employed the ordinary observer test and, on the basis of the evidence before it, we cannot say that the denial of appellant's motion for a preliminary injunction as to the infringement claim constituted an abuse of discretion. See Uneeda Doll Co. v. P M Doll Co., supra; Ideal Toy Corp. v. Adanta Novelties Corp., supra. An examination of the dolls reveals that, while similarities exist as to standard doll features such as the full faces; pert, upturned noses; bow lips; large, widely spaced eyes; and slim figures, distinct differences exist with respect to the neck structures and hair styles, and to a lesser extent with respect to the chin structures and the over-all craftsmanship of the dolls. Moreover, it is interesting to note that the gravamen of appellant's infringement claim, as it appears in the complaint, is that the "Tammy" and "Pepper" dolls are unique in that they are "particularly characterized by an original and distinctive doll head" and that appellees improperly copied that design. The most apparent differences between the dolls, however, relate to the head design which indicates that "whatever unique quality * * * (appellant's) doll may have * *, (appellees have) not appropriated it." Ideal Toy Co. v. Sayco Doll Corp., 302 F.2d 623, 627 (2d Cir. 1962) (Clark, J., dissenting).

Contrary to appellant's urging, the district court did not err in relying in part on this court's statement in Arnstein v. Porter, 154 F.2d 464 (2d Cir. 1946) that to sustain an infringement claim it must be shown that "copying (assuming it to be proved) went so far as to constitute improper appropriation." Id. at 468. The above-quoted statement in Arnstein was merely an alternative way of formulating the issue of substantial similarity. This is evident from the court's further comment that "on that issue * * * (i.e., improper appropriation) the test is the response of the ordinary lay hearer * * *," ibid., although the use of the term "improper appropriation" somewhat obscures the issue. See Nimmer, Copyright § 143.53 (1964).

The judgment of the district court is affirmed.

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IDEAL TOY CORPORATION v. FAB-LU LTD. (INC.)
(May 23, 1966)