CirTran Corporation (CIRX)

[MFlores]

More Litigation to come!

An Illinois federal judge Wednesday denied Playboy Enterprises International Inc.'s bid for a preliminary injunction against a beverage company alleged to have infringed Playboy's famous "bunny" mark, and stayed the case pending the resolution of a parallel state-court lawsuit.

U.S. District Judge Robert Gettleman said the complaint between Playboy and Play Beverages LLC was similar to a lawsuit involving the same parties filed last year in Cook County, Illinois. Both lawsuits revolve around the same disputed terms of a licensing agreement that Play Bev said allowed it to use the "bunny" mark, the court said.

Since "substantial overlap" of facts exist in the federal lawsuit and the state court lawsuit, inconsistent rulings potentially could contradict each other, Judge Gettleman said. If both lawsuits proceed at the same time, the dueling courts adjudicating the actions would be pitted in a "destructive race" to see which forum could resolve litigation first," the ruling said.

At the heart of both cases is the status of the license agreement," Judge Gettleman said in the order. "The determination of whether defendants are entitled to continue to use the marks is crucial to the outcome of both actions."

The ruling puts the federal complaint on ice until the state court litigation is resolved.