United States District Court, D. Minnesota
Andrew S. Hansen, Esq., Dennis E. Hansen, Esq., Samuel R. Hellfeld, Esq., and Elizabeth A. Patton, Esq., Oppenheimer Wolff & Donnelly LLP, counsel for Plaintiff.
Arthur S. Beeman, Esq., Matthew Wright, Esq., and Pamela M. Deese, Esq., Arent Fox LLP; and John W. Ursu, Esq., Robert J. Gilbertson, Esq., and X. Kevin Zhao, Esq., Greene Espel PLLP, counsel for Defendant Tempur Sealy International, Inc., d/b/a Tempur-Pedic.
Brian D. Roche, Esq., Jennifer DePriest, Esq., and Vanessa Marti Heftman, Esq., Reed Smith LP; and David T. Schultz, Esq., and Nadege J. Souvenir, Esq., Maslon Edelman Borman & Brand, LLP, counsel for Defendant Mattress Firm Holding Corp., d/b/a Mattress Firm.
MEMORANDUM OPINION AND ORDER
DONOVAN W. FRANK, United States District Judge.
This matter is before the Court on Defendant Mattress Firm Holding Corp.'s, d/b/a Mattress Firm (" Mattress Firm" or " Defendant" ) Motion to Dismiss Counts Four, Five and Six of Plaintiff Select Comfort Corporation's (" Select Comfort" or " Plaintiff" ) First Amended Complaint (" Amended Complaint" ). (Doc. No. 27.) The Court grants Defendant's Motion to Dismiss for the reasons below.
Select Comfort designs, manufactures, and markets mattresses and bedding products. (Doc. No. 8, Am. Compl. ¶ 9.) Select Comfort sells products under the Sleep Number(r) brand, which is trademarked under uncontested registrations, and includes the Sleep Number bed. ( Id. ¶ ¶ 9-10.) Select Comfort also owns the registered trademark Select Comfort(r). ( Id. ¶ 11.) Select Comfort sells its products nationwide at Select Comfort retail stores, through direct marketing operations, and through the Select Comfort websites at selectcomfort.com and sleepnumber.com. ( Id. ¶ 14.)
Select Comfort alleges that it has an excellent reputation for its unique and superior quality products and services. ( Id. ¶ 13.) Select Comfort also alleges that it undertakes widespread advertising to assist in developing its reputation and goodwill for its products. ( Id. ¶ ¶ 15-18.) Select Comfort alleges that it was ranked the number one bedding retailer in the United States for nine consecutive years. ( Id. ¶ 13.)
Mattress Firm is a retail seller of mattresses in the United States that sells a number of different mattress brands. ( Id. ¶ 3.) Mattress Firm is one of the largest multi-brand mattress specialty retailers in the United States, and operated 857 stores in the United States as of January 2012. ( Id. ) Mattress Firm sells Tempur-Pedic products, and previously sold Select Comfort products. ( See id. ¶ ¶ 34, 48-49.)
Select Comfort alleges that Mattress Firm uses its significant market presence to disseminate false advertisements and misrepresentations about Select Comfort and its products to consumers through its hundreds of stores and employees. ( Id. ¶ ¶ 35-54, 59-64, 66-83.) Select Comfort alleges that Mattress Firm has made at least the following false and disparaging comments: (1) Select Comfort's warranty is shorter than it actually is; (2) Sleep Number beds are defective and Mattress Firm stopped selling them as a result; (3) Select Comfort does not honor its warranty; (4) Sleep Number beds grow mold; (5) Sleep Number beds are made from " cheap," " commodity" foam; (6) Sleep Number beds suffer from " hammocking" ; and (7) a number of class action lawsuits are pending against Select Comfort. ( Id. ¶ ¶ 35-37, 39, 41, 47-49, 50-51, 53.) Select Comfort alleges that these statements are made purposefully so as to prevent customers from purchasing Select Comfort's products. ( Id. ¶ ¶ 34-54.) Select Comfort asserts that these ongoing activities are currently harming its sales, reputation, and goodwill. ( See, e.g., id. ¶ ¶ 91, 102, 107.)
Select Comfort also alleges that Mattress Firm undertakes improper actions with respect to Select Comfort's trademarks in order to deceive consumers. ( Id. ¶ ¶ 35-37, 39, 41, 47-49, 50-1, 53.) For example, Select Comfort asserts that through the use of internet advertising, Mattress Firm ...