Retailer’s Good Faith Purchase of Seasonal Products No Basis to Avoid Preliminary Injunction For Remaining Inventory

The court granted plaintiffs' motion for a preliminary injunction and denied a retailer defendant's request to sell its remaining inventory of the accused product. "⁠Defendants have launched a new product at the beginning of each summer season for the last three years. Defendants have continued selling their product throughout the entire summer season before being enjoined by this Court. Then, each year, following issuance of the injunction, Defendants have released a slightly altered product at the beginning of the next summer season. . . . [T]he Court sees no reason to grant [the retailer's] request [to sell off its remaining inventory]. Defendants summarily repeat their invalidity and non-infringement arguments and argue that [the defendant] purchased its current inventory in 'good faith,' stating that '⁠[t]he fact that the [C]ourt has found that the PVC cap . . . is an elastic fastener is, at a minimum, heavily debatable.' The Court is unaware of -- and Defendants fail to cite to -- any authority that permits an exception to a preliminary injunction on a showing of 'good faith.'"

Tinnus Enterprises, LLC et al v. Telebrands Corporation et al, 6-17-cv-00170 (TXED July 16, 2018, Order) (Schroeder, USDJ)