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Ty Inc. v. Perryman

United States Court of Appeals for the Seventh Circuit
306 F.3d 509 (2002)

Facts

Ty Inc. (plaintiff) manufactured popular plush toys under the well-known trademark “Beanie Babies.” To maintain strong demand, Ty did not manufacture as many Beanie Babies as the market would bear. Ruth Perryman (defendant) sold Beanie Babies and other plush toys secondhand on the Internet. Perryman used the domain name bargainbeanies.com. On her website, Perryman included a link labeled “Other Beanies,” through which she sold plush toys not manufactured by Ty. Ty sued Perryman for trademark infringement under the federal anti-dilution statute. The district court granted Ty summary judgment, enjoining Perryman from using the terms Beanie or Beanies for any business name or domain name, or for describing any product not manufactured by Ty. Perryman appealed.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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