Summary
The blog discusses the legal dispute between Lionsgate and Ameritrade regarding the use of a memorable dialogue from the film Dirty Dancing in an Ameritrade advertisement. Lionsgate, the rights holder, claimed trademark infringement and sought damages, arguing that the ad intentionally referenced the film’s iconic line and dance lift. Ameritrade, in response, filed a pre-emptive suit denying infringement and asserting that the usage was parodic and not misleading. The dispute also highlighted that Lionsgate’s trademark applications for the dialogue did not cover financial services. The case raises important questions regarding the intersection of parody, trademark rights, and advertising law.
Background
TD Ameritrade, through its advertising agency Havas, ran an advertisement featuring a man lifting a piggy bank above his head over the tagline “Nobody puts your old 401(k) in the corner”. The tagline was a clear allusion to the famous line from the 1987 film Dirty Dancing. The ad campaign ran from October 2014 to April 2015.
Lionsgate’s Demand and Ameritrade’s Pre-emptive Suit
Lionsgate, the studio holding the rights to Dirty Dancing, demanded a licence fee from Ameritrade after the conclusion of the campaign, alleging unauthorised use of its trademark. Ameritrade and Havas responded by filing a pre-emptive suit against Lionsgate in the U.S. District Court of New York. They maintained that the advertisement had not used the verbatim film line “Nobody puts Baby in a corner”, nor had it used any clips, music, stills, or other material from the film, and that there was accordingly no infringement. They also pointed out that Lionsgate did not hold a federal trademark registration for the line at the time of the campaign, having filed applications for three marks only in September 2014 — a month before the campaign commenced. The applications were stated to cover goods related to the film, including clothing and paper-based merchandise, and expressly indicated no intent to use the marks in connection with financial services.
Lionsgate’s Infringement Suit
On July 2, 2015, Lionsgate filed a counterclaim for infringement against Ameritrade in Los Angeles. In the suit, Lionsgate argued that the line spoken by the character Johnny (played by Patrick Swayze) in the final sequence of the film, leading into the climactic dance and the song “(I’ve Had) The Time of My Life”, constitutes a historically iconic and commercially valuable asset. Lionsgate contended that both the tagline and the lift depicted in the advertisement were intentionally copied by Ameritrade to capitalise on the film’s popularity, and that such use was likely to cause confusion as to whether Lionsgate was associated with or had authorised the campaign.
Parody Defence
In the New York proceedings, Ameritrade refuted Lionsgate’s position by arguing that the advertisement made parodic use of the line. Ameritrade also noted that the campaign had concluded in April 2015 with no plans for revival, which it argued meant there could be no continuing confusion of the kind Lionsgate alleged.
In addition to the infringement claim, Lionsgate sought a sizeable sum in damages for what it characterised as intentional violation of its rights.
Disclaimer
This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.