Review the case of telebrands corp

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Reference no: EM131473579

Question: Telebrands Corp. produces infomercials for television and distributes the products advertised on the commercials in retail stores. Telebrands became the exclusive licensee of the "SAFETY CAN," a can opener that cuts cans from the side and not from the top, thereby eliminating the sharp, jagged edge. On the packaging of the SAFETY CAN was the statement "AS SEEN ON TV" in bright red lettering. As a result of the $3 million advertising campaign, Telebrands received over 300,000 direct response orders from consumers and over 1.9 million retail orders. Wilton Industries, Inc., then began selling a hand-held can opener that produces no sharp edges, known as the Betty Crocker "Safe TouchTM."

The packaging on the "Safe TouchTM" also contained the "AS SEEN ON TV" logo. According to Wilton, it planned on showing an infomercial on national television, but it never did. The only television advertising that occurred for the "Safe TouchTM" was small infomercials on cable preview channels in Chicago over a one-month time period. Telebrands alleged that the logo "AS SEEN ON TV" constitutes false advertising in violation of the Lanham Act. Telebrands asked the court to issue a preliminary injunction enjoining Wilton from using the logo. Should the court issue the preliminary injunction? Why, or why not?

Reference no: EM131473579

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