Hallmark Suit Claims Rival Didn’t Care Enough To Send The Very Best

Hallmark Cards, Inc. was founded in Kansas City, Missouri in 1910.  It is the oldest and largest manufacturer of greeting cards in the United States.  Dickens Inc. is a rival greeting card company founded in 1982 which credits itself with the invention of "Musical Cards", the introduction of "LED Lighted Cards" and "Sound Effect Cards."  In 2017, Hallmark sued Dickens for trademark infringement alleging that it gathered and sold 8 million or so unsalable Hallmark cards intended for the scrap heap. According to Hallmark, it sent its less than best greeting cards to recycling company Northstar to be converted to paper pulp.  Instead, Northstar sold the cards to an intermediary who later sold them to Dickens.  Dickens thereupon sold the ersatz Hallmark cards to the public.

The story of the now three year old lawsuit is not likely ever to be dramatized on the Hallmark Channel, which is known for its non-violent mysteries and cloying romance pieces. Hallmark attorneys have accused Dickens President James Chou of calling them "dogs" and hurling profanity laced insults at them during a deposition.  Chou counters that Hallmark’s attorneys demanded to see his green card and threatened him with deportation (Chou has been a U.S. citizen for thirty years).  Despite the out of court drama, the suit moved one step closer to a conclusion when U.S. District Judge Sandra J. Feuerstein ruled on summary judgment that Dickens cannot avail itself of the first sale doctrine, codified at 17 U.S.C. § 109, which provides that an individual who knowingly purchases a copy of a copyrighted work from the copyright holder receives the right to sell, display or otherwise dispose of that particular copy, notwithstanding the interests of the copyright owner.  Judge Feuerstein determined that because Hallmark sent the cards to recycling company Northstar with the expectation that the cards would be recycled, Dickens cannot shield itself from liability by invoking a first sale doctrine as a defense.  

Despite the court’s ruling against Dickens, Chou has found a silver lining to this saga.  As a result of Chou’s experiences in the lawsuit, Dickens is promoting a new “GREEN CARD” on its website with the stated goal to “help people find a better way to respond if they are met with questions just because of their color.”  The company states that “net proceeds generated from “GREEN CARD” will go to the support of the equality of legalized immigrants and US citizens.”  For its part, Hallmark also sells a card congratulating the newly naturalized with the greeting “America is lucky to have a new citizen like you.” Unlike Dickens, however, Hallmark does not share the profits from sales of its $3.99 card.