Denbicare U.S.A. Inc., and Ernest McCoy v. Toys "R" Us, Inc.
Opinion
Opinion
Leavy, J.
Denbicare U.S.A Inc. (“Denbicare”) and Ernest H. McCoy appeal from a partial final judgment entered under Ride 54(b) after grants of summary judgment against them on their claims of copyright infringement, trademark infringement, unfair competition, and tortious denial of contract against Toys “R” Us (“Toys”). We have jurisdiction under 28 U.S.C. § 1291 and affirm.
FACTUAL BACKGROUND
Denbi Products, Inc. (“DPI”), a California company founded in 1981, sold reusable diapers made according to a design patented by its president, Debra Shaw. In 1983, DPI ordered a large quantity of diapers from its Hong Kong manufacturer. Approximately 450,000 diapers (the “Hong Kong diapers”) were shipped by the manufacturer to the United States and held in the foreign trade zone in San Francisco awaiting DPI’s payment of import duties. The parties dispute whether these diapers were defective, but Denbicare does not dispute that DPI did not formally reject the diapers as defective.
DPI filed for bankruptcy in the Northern District of California in 1984. At a trustee’s sale in September 1985, McCoy purchased DPI’s United States and Canadian patents on the diapers, its copyrights in the packaging,…