Papanicolaou

This is the latest round in a protracted trademark dispute between Jerry’s Famous Deli (“Jerry’s Deli”) and Constantino Papanicolaou, the proprietor of Roxy’s Famous Deli (“Roxy’s Deli”). Both “Famous Delis” are Los Angeles-area restaurants featuring a New York/Broadway theme that includes an extensive menu of deli-style fare, Broadway show posters, celebrity photos, and stage lighting fixtures.

In this appeal, we affirm the district court’s finding of civil contempt against Papanicolaou for violation of a stipulated injunction governing trademark use. We vacate and remand the disgorgement of profits sanction because the record does not provide a rationale for rejecting Pa-panicolaou’s challenges to the auditor’s calculations.

BACKGROUND

Jerry’s Deli opened in 1978 under the name “Jerry’s Famous Deli,” thirteen years before Roxy’s Famous Deli began operations in the Thousand Oaks area. Jerry’s Deli staked out a distinct trade dress featuring New York delicatessen-style fare and decor. Jerry’s Deli now boasts several Los Angeles area locations, all of which share a red and white color scheme with green accents, Broadway playbills displayed as the predominant interior decoration,…