Snuggle takes on Care Bears in brawl over logos

WILMINGTON, Delaware (Reuters) - Care Bears fabric softener should be pulled from stores because of its similarity to Snuggle bear, a long-standing "freshness messenger" for a rival product, according to a lawsuit filed on Wednesday.

The Care Bears brand confuses consumers who have come to associate plush bear toys and distinctive packaging with the "famous" Snuggle brand, according to the lawsuit, filed by Sun Products Corp of Wilton, Connecticut.

Sun asked the Delaware district court to stop U.S. Nonwovens Corp of Brentwood, New York, from selling its Care Bears brand because it infringes the trade dress of the Snuggle brand.

Trade dress is protected under trademark law and refers to a product's distinctive design or packaging.

Sun also asked that its rival turn over any profits from selling the infringing brands that make use of a bear logo, which includes Breezy and Sunny Soft Suavizante.

"The use of teddy-bear-like-animal designs on the shrink-wrap labels of its Breezy and Sunny Soft Suavizante fabric softeners so resembles Sun's Snuggle-Bear-design trade dress that it has caused confusion and/or is likely to cause confusion in the marketplace," said the complaint.

Sun, which has annual sales of $2 billion from household products, acquired the Snuggle brand from a unit of Unilever in 2008.

Included in the complaint are exhibits showing Snuggle labels with a cuddly bear trailing tree blossoms. A Care Bears label shows a two sleepy bears in a night caps surrounded by stars.

The complaint also names as defendants American Greeting Corp of Cleveland and its subsidiary Those Characters of Cleveland Inc. Sun said the two companies licensed the characters.

The complaint further cites infringement of other products by U.S. Nonwovens.

U.S. Nonwovens did not immediately return a call for a comment. American Greeting declined to comment.

Shares of American Greeting were up 3.2 percent at $23.22 in mid-day trading on the New York Stock Exchange.

The case is Sun Products Corp v U.S. Nonwovens Corp, American Greetings Corp and Those Characters From Cleveland Inc, U.S. District Court, District of Delaware.

(Editing by Steve Orlofsky)