Hall v. Bed Bath & Beyond, Inc.

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The Tote Towel is a large towel with binding around all the edges, zippered pockets at both ends, and an angled cloth loop in the middle. Hall applied for a design patent for the Tote Towel in 2008 and began producing the item soon after the filing, with a label marked “patent pending.” While the application was pending, Hall contacted Bed Bath & Beyond to discuss whether BB&B would sell the Tote Towel at retail stores. Hall left samples of packaged Tote Towels with BB&B. The package and the towel were marked “patent pending.” BB&B had copies of the Hall towel manufactured in Pakistan, for retail sale by BB&B. The patent issued, and Hall sued for patent infringement, unfair competition under the Lanham Act, and for misappropriation under New York law. The district court dismissed all claims and counterclaims on the pleadings. The Federal Circuit held that the counts of patent infringement, unfair competition, and misappropriation were not subject to dismissal on the pleadings, but affirmed dismissal of claims against BB&B executives who had been sued in their personal capacities, and affirmed dismissal of the counterclaims. View "Hall v. Bed Bath & Beyond, Inc." on Justia Law