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 Gottlieb, Rackman & Reisman, P.C. (George Gottlieb, of counsel), New York City, for plaintiff.

McAulay, Fields, Fisher, Goldstein & Nissen, (Paul Fields, Roberta S. Bren, of counsel), New York City, for defendant.

SWEET, District Judge.

This is a copyright infringement case about two plush toy lions, one, Roarry, manufactured and sold by plaintiff Gund, Inc. (“Gund”) and the other, unnamed, manufactured and distributed as a promotional item to accompany earrings sold by defendant Swank, Inc. (“Swank”). The hearing on the preliminary injunction sought by Gund was consolidated with the trial on the merits in accordance with Rule 65(a)(2), Fed.R.Civ.P. On the following findings and conclusions, judgment will be entered granting injunctive relief and damages.

Prior Proceedings

This action alleging copyright infringement was commenced on October 2, 1987, and Gund, by order to show cause, sought a temporary restraint and preliminary injunction. Discovery on an expedited basis was directed, and the preliminary injunction, later consolidated with the trial on the merits, was commenced on October 13 and completed on October 19, 1987. An amended complaint was filed on October 15, 1987. Final submissions of proposed findings and conclusions made on October 22, 1987.

Findings

Gund is a family-owned New Jersey corporation with offices at One Runyons Lane, Edison, New Jersey 08817. Since 1898 it has manufactured and sold high quality plush stuffed animal toys, such as lions, teddy bears and rabbits throughout the United States to department stores and specialty stores.

Swank is a Delaware corporation having offices at 90 Park Avenue, New York, New York 10016, which manufactures and sells small leather goods, fragrances, and jewelry under various trademarks including Swank, Pierre Cardin, Royal Copenhagen, Alexander Julian and Anne Klein. Swank advertises and promotes its goods through the written media and the offering of promotional gifts during the Christmas and Chanukah holiday seasons. Such promotional gifts have included key rings, lion logo pins and plush toys.