Playboy Enterprises, Inc., a Corporation v. Baccarat Clothing Co., Inc., a Corporation, Meier Caspi and Tchia Caspi, Individuals

This is a trademark infringement case concerning the appropriateness of the District Court’s damages award. The appeal arises from a civil action initiated by Playboy Enterprises, Inc. (“PEI”) in the United States District Court for the Central District of California against Baccarat Clothing, Inc. (“Baccarat”) and Meier Caspi and his wife Tchia Caspi (“the Caspis”) for infringement of PEI’s federally registered PLAYBOY and RABBIT HEAD design trademarks ( 15 U.S.C. § 1051 , et seq.). The District Court found for PEI but granted damages of only $12,750. PEI appeals the sufficiency of this award on several grounds.

I. FACTUAL BACKGROUND

Baccarat and the Caspis operate a wholesale and retail jeans business in South Los Angeles and retail jeans businesses from other locations in suburban Los Angeles. Artistic Identification Systems, Inc. (“AIS”) is in the business of manufacturing and selling various types of labels, including woven and embroidered labels, for use on wearing apparel. From 1979 through February 1981, when the District Court action was commenced, AIS delivered to Baccarat and the Caspis approximately 43,000 labels bearing the combination PLAYBOY and RABBIT HEAD design…