Geigtech E. Bay LLC v. Lutron Elecs. Co.
Geigtech E. Bay LLC v. Lutron Elecs. Co.
Opinion of the Court
Plaintiff GeigTech East Bay LLC ("GeigTech") brings this action for trade *273dress infringement in violation of
Defendant's motion to dismiss is granted in part and denied in part. Count II, which alleges trade dress infringement, is well-pleaded and survives the motion. Count III, which alleges unjust enrichment, is legally insufficient and, therefore, dismissed.
BACKGROUND
Plaintiff GeigTech, is a company founded by James Geiger. (Compl. ¶ 7.) Geiger claims to be a pioneer in the field of "home integration." (Id. ) He first installed window shades as an integrator in 1999. (Id. ¶ 8.) He started his own audio visual integration company called HeAVi LLC in 2003, selling and installing home theatres, lighting, and audio systems and motorized window shades. (Id. ¶ 7.)
In or about 2011, Geiger conceived and developed a concept for roller shades that Plaintiff describes as a "new solution for the [ ] traditional methods of concealing screws, wires, and other hardware." (Id. ¶ 10.) Plaintiff alleges that, generally, any screws, wires, and mounting hardware used to install roller shades are concealed by a ceiling pocket, valance, or fascia. (Id. ¶ 8.) Rather than concealing the mounting hardware, Geiger's concept "involved exposed roller shades without any visible screws, wires, or unsightly hardware." (Id. ¶ 10.) This concept was ultimately developed and sold as the "J Geiger Shading System." (Id. ¶¶ 10, 16.)
Plaintiff purports to have a protectable trade dress on the ornamental design of J Geiger's jamb bracket, center bracket, and end bracket, and has inserted pictures of each within the Complaint. (Id. ¶¶ 44, 45.) It describes its jamb bracket as "pretty," "simple," and "Simply. Modern." (Id. ¶ 45.) The Complaint states that Plaintiff's "pioneering signature look" is represented by two types of brackets - a circular bracket and a U-shaped bracket - with "floating" couplers that connect two shades together. (Id. ¶ 14). The pleading describes these brackets as "clean circular element[s] that [are] integral and seamless with both the shade and the wall." (Id. ¶ 45.) It further alleges that, "Mr. Geiger's new hardware was elegant and distinct from traditional methods of window dress," and describes the design of its brackets as "ornamental." (Id. ¶ 11.)
According to Plaintiff, sales of such shades increased year-over-year 286% from 2014-15, and 412% from 2015-16. However, they only increased 50% from 2016-17. (Id. ¶ 16.) Absolute levels of sales are not alleged.
Plaintiff claims that, after it entered into a manufacturing sales agreement with Savant Systems, LLC, Defendant Lutron, a well-known provider of electronic shades, announced its Palladiom Shading System. (Id. ¶ 48.) Defendant's shading system, Plaintiff alleges, incorporates jamb, center, and end brackets that infringe on the J Geiger jamb, center, and end bracket trade dress. (Id. ¶¶ 48, 52, 26.)
*274Plaintiff commenced this lawsuit by filing a complaint, and Defendant has filed a motion to dismiss Counts II and III, pursuant to Fed. R. Civ. P. 12(b)(6).
DISCUSSION
A. Standard of Review for a Motion to Dismiss
Rule 12(b)(6) of the Federal Rules of Civil Procedure provides for dismissal of a complaint that fails to state a claim upon which relief may be granted. Fed. R. Civ. P. 12(b)(6). To survive a motion to dismiss, "a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal ,
While all reasonable inferences should be drawn in favor of the plaintiff, courts are not required to "accept as true a legal conclusion couched as a factual allegation." Bell Atl. Corp. v. Twombly ,
"In considering a motion to dismiss for failure to state a claim, a district court must limit itself to the facts stated in the complaint, documents attached to the complaint as exhibits, and documents incorporated by reference in the complaint." Hayden v. Cty. of Nassau ,
B. The Motion to Dismiss Count II is Denied
A product's unregistered trade dress is protected if it is not functional and if there is a likelihood of confusion between a claimant's product and a competing product.
"[T]rade dress today encompasses a broad concept of how a product presented to the public looks, including its color, design, container, and all the elements that make up its total appearance." Fun-Damental Too, Ltd. v. Gemmy Indus. Corp. ,
First, "A plaintiff must [ ] offer 'a precise expression of the character and scope of the claimed trade dress.' " Urban Grp. Exercise Consultants, Ltd. v. Dick's Sporting Goods, Inc. , No. 12 Civ. 3599,
Next, "the person who asserts trade dress protection has the burden of proving that the matter sought to be protected is not functional." 15 U.S.C § 1125(c)(4). A purported trade dress might be functional in a purely utilitarian sense, or it might be recognized to have some aesthetic functionality. Int'l Leisure Prod., Inc. v. Sunnylife Australia , No. 16-CV-6215 (NSR),
The two final elements are that a plaintiff show its trade dress has acquired secondary meaning, and that the defendant's "allegedly infringing feature ... is likely to cause confusion with the product for which protection is sought." Samara Bros. ,
A product can be either inherently distinctive or acquire distinctiveness by developing a secondary meaning in the marketplace, which occurs when, " 'in the minds of the public, the primary significance of a product feature [ ] is to identify the source of the product rather than the product itself' " Inwood Laboratories, Inc. v. Ives Laboratories, Inc. ,
These are the elements a plaintiff must prove in order to prevail on a trade dress infringement claim at trial. However, this is a motion to dismiss, and a plaintiff need only articulate "sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' " Iqbal ,
The Complaint before this Court is one of the best-pleaded examples of a trade dress infringement claim I have ever reviewed. Whether Plaintiff can prove each of these elements is a question for another day.
1. Plaintiff Has Adequately Articulated Its Purported Trade Dress
Defendant argues that Plaintiff has failed to adequately articulate the specific elements that are distinctive to its trade dress. (Def.'s MTD, at 4-5.) "[A] Plaintiff must articulate the elements of *276their [sic] product design with specificity to be afforded trade dress protection." Urban Grp. ,
"A plaintiff's inability to explain to a court exactly which aspects of its product design[ ] merit[s] protection may indicate that its claim is pitched at an improper level of generality, i.e., the claimant seeks protection for an unprotectable style, theme or idea." Landscape Forms ,
A trade dress infringement claimant must enumerate which features of its purported dress are distinctive and indicate how they are distinctive. Tracey Tooker ,
Although the word "distinctive" does not appear in the statutory text, the Supreme Court explains that it is the linchpin of a trade dress claim:
Nothing in § 43(a) explicitly requires a producer to show that its trade dress is distinctive, but courts have universally imposed that requirement, since without distinctiveness the trade dress would not "cause confusion ... as to the origin, sponsorship, or approval of [the] goods ," as the section requires. Distinctiveness is, moreover, an explicit prerequisite for registration of trade dress under § 2, and "the general principles qualifying a mark for registration under § 2 of the Lanham Act are for the most part applicable in determining whether an unregistered mark is entitled to protection under § 43(a)."
Samara Bros. ,
Where a plaintiff has failed to state the concrete elements of its trade dress, some courts have found this a de facto failure to allege distinctiveness. See Tracey Tooker ("Tooker has failed to specifically identify the elements of her purported trade dress, and for that reason has also failed to adequately plead distinctiveness."). But even where elements of a purported trade dress have been identified, a plaintiff must also plead why those elements are distinctive. See Sara Designs, Inc. v. A Classic Time Watch Co. Inc. ,
Defendant argues that Plaintiff has failed to articulate the elements of its trade dress, and cites at least two cases within the Second Circuit in which courts dismissed a trade dress infringement complaint at the pleading stage for failure to allege the elements of their dress with adequate specificity. Each case is readily distinguishable.
In Tracey Tooker ,
Similarly, in Sara Designs, Inc. v. A Classic Time Watch Co. Inc. ,
Defendant also cites Landscape Forms, Inc. v. Columbia Cascade Co. ,
Here, the Complaint describes the shape and composition of Plaintiff's trade dress, as well as its overall look. See Int'l Leisure ,
The Complaint goes on to describe each individual element in detail, with photographs for illustration. (Id. ¶¶ 45, 49, 52.) The jamb bracket is described as a clean circular element that is integral and seamless with both the shade and the wall." (Id. ¶ 45.) The center bracket is described as "a clean, U-shaped element, where the U-Shaped element fits seamlessly between two shade ends that abut the same, effectively creating a 'shade sandwich' with the U-shaped element in the middle." (Id. ¶ 49.) The end bracket is described as "a clean U-shaped element that stands alone in its ornamental connection of the end of the shade to a wall, where the outward face side of the U-shaped element is unencumbered with any of the normally 'ugly' mechanisms required to attach the element to the wall." (Id. ¶ 53.)
Plaintiff also alleges that the trade dress is distinctive: the Complaint describes the history of roller shade mounting technology, (id. ¶ 8), and states that the J. Geiger shading system is a "radical departure" from existing technology. (Id. ¶ 45.) Plaintiff attached pictures of both the J. Geiger Shading System and previous methods for concealing mounting hardware to illustrate the unique look of its shades. (Id. ¶¶ 8, 11.) It alleges that "Mr. Geiger's new hardware was elegant and distinct from traditional methods of window dress, and also allowed for screws and wires to be concealed from view." (Id. ¶ 11.)
*278At the pleading stage, Plaintiff has adequately described the elements that make up its purported trade dress. The focus of this initial inquiry is limited only to whether Plaintiff has identified a "distinctive combination of ingredients [that] deserves protection." See Landscape Forms ,
Notably, all of the case law cited by Defendants in support of their argument concerns instances in which the plaintiff sought protection for a line of products. See, e.g., Yurman Design ,
In such cases, the Second Circuit has cautioned courts to be even more circumspect in order to further the "strong federal policy in favor of vigorously competitive markets," because, "a claim of trade dress covering an array of items is likely to be broader than one for an individual product's design." Landscape Forms ,
However, in cases dealing with the design of a single product, courts have found that plaintiffs articulate their trade dress with sufficient particularity if they describe the basic elements of the dress with reference to their distinctive features. See, e.g., Schutte Bagclosures Inc. v. Kwik Lok Corp. ,
Accordingly, it is sufficient that Plaintiff has identified the specific elements of its trade dress (J Geiger's jamb, center, and end brackets) and described that the elements are distinctive because they expose the hardware and wires that are traditionally visible in other mounting hardware. (Compl. ¶¶ 8, 45, 49, 52.)
2. Plaintiff Has Sufficiently Alleged Its Trade Dress is Nonfunctional
Under the Lanham Act, "In a civil action for trade dress infringement ... the person who asserts trade dress protection has the burden of proving that the matter sought to be protected is not functional." 15 U.S.C. 1125(a)(3). Because functionality is a question of fact, Kohl's ,
Even before it was codified in the Lanham Act, see
Thus, unregistered trade dress receives trademark protection only if granting exclusive use of that dress does not put competitors at a non-reputational disadvantage.
" 'The test of nonfunctionality in trade dress claims that are based on product design is even more critical than in trade dress claims based on packaging, because a monopoly right in the design of the product itself is more likely to preclude competition.' " DO Denim ,
Trade dress may be functional in a traditional sense ("utilitarian functionality"), or it may be aesthetically functional. Christian Louboutin ,
a. Plaintiff Has Sufficiently Pleaded Traditional Nonfunctionality
Under the traditional Inwood test, a trade dress is functional "if it is essential to the use or purpose of the article or if it affects the cost or quality of the article."
*280Inwood ,
Plaintiff has adequately pled that its trade dress is not essential to the use or purpose of its product. Indeed, it has provided a survey of other methods traditionally used to install roller blinds, and photographs of three alternative mounting techniques. (Compl. ¶¶ 8-11, 47, 51, 55.) The purported trade dress is not essential to the use or purpose of Plaintiff's product. See Cartier, Inc. v. Sardell Jewelry, Inc. ,
A purported trade dress may also be deemed traditionally functional if the feature over which protection is sought reduces the product's manufacturing costs or lowers its consumer retail price. Christian Louboutin ,
The complaint states that Plaintiff's trade dress "does not provide a cost or quality advantage in the market" for the three components of its dress: jamb brackets, center brackets, and end brackets. (Compl. ¶¶ 47, 51, 55.)
Defendant argues that Plaintiff's advertisements "tout the functional benefits of its purported trade dress, including that the design eliminates the need for valances, fascias, or ceiling pockets to hide the hardware, that the design contains no visible wires or screws." (Def.'s MTD, at 12.) A photo of one such advertisement is embedded in Defendant's motion, as well as the Complaint. (See id. at 12; compl. ¶ 18.) The ad undeniably makes these representations. In fact, such descriptions are Plaintiff's very argument that its trade dress is not functional but, rather, is purely ornamental. (See, e.g. , Compl. ¶¶ 45, 53.) Defendant does not explain why or how this description "touts the functional benefits" of Plaintiff's trade dress and proffers no other contrary assertions as to why Plaintiff's dress is essential to the use of the roller blinds, or affects the cost or quality of the blinds.
In addition, "Where the asserted trade dress extends to the 'overall look' of the combination of features comprising a product or product line, the Court must evaluate the distinctiveness and functionality of those features taken together, not in isolation." Maharishi Hardy Blechman Ltd. v. Abercrombie & Fitch Co. ,
Accepting as true, as we must at the 12(b)(6) stage, Plaintiff's allegations that its trade dress is not essential to the use or purpose of its product, and does not affect the cost or quality of the product, Plaintiff has adequately pleaded that its dress is traditionally nonfunctional under Inwood .
b. Plaintiff Has Sufficiently Pleaded Aesthetic Nonfunctionality
"If the trade dress is not functional under the traditional Inwood test, and Plaintiff asserts that the elements of [its] trade dress are ornamental or aesthetic, the aesthetic functionality doctrine requires the additional fact-intensive inquiry recognized in Qualitex [ ] and TrafFix , namely 'if exclusive use of the feature would put competitors at a significant non-reputation-related disadvantage.' " Int'l Leisure ,
Plaintiff pleads that its trade dress consists of the ornamental appearance and design of its jamb, center, and end brackets, and that "competitors' ability to compete is not significantly undermined by protecting J Geiger's ornamental design because other designs, such as those shown in the Background section, exist and are still used throughout the shading industry." (Compl. ¶¶ 45, 47, 51). In response, Defendant argues that "the clean and modern look of [Plaintiff's] products is desirable to consumers," and that "granting [Plaintiff] a monopoly on its vaguely alleged 'clean' and 'minimalist' design would significantly harm competition because [Defendant] and third-party competitors would be barred from introducing their own clean, minimalist window shading designs, thereby harming competition and reducing consumer choice." (Def.'s MTD, at 13).
However, Plaintiff does not seek protection over all minimalist shade designs - it seeks protection over its specific trade dress, which it describes in detail in the Complaint. Defendant and other competitors would be free to design minimalist shading systems as long as those designs did not look too similar to Plaintiff's trade dress, so that customers would be confused about their origin. See Knitwaves ,
Moreover, "A finding of whether a trade dress is functional is 'essentially a fact question.' " Int'l Leisure ,
Plaintiff has adequately pleaded that its trade dress is not aesthetically functional.
3. Plaintiff Has Sufficiently Pleaded Secondary Meaning
"An unregistered product's design trade dress cannot be inherently distinctive, and thus that 'product's design is distinctive, and therefore protectable, only upon a showing of secondary meaning.' " Metrokane ,
While secondary meaning should "not be determined by application of a rigid formula," Landscape Forms Inc. v. Columbia Cascade Co ,
" 'Because the primary element of secondary meaning is 'a mental association in buyer[s'] minds between the alleged mark and a single source of the product,' the determination whether a mark or dress has acquired secondary meaning is primarily an empirical inquiry.' " LVL XIII Brands, Inc. v. Louis Vuitton Malletier S.A. ,
Accordingly, none of these factors is generally amenable to determination on a motion to dismiss. Defendant's arguments regarding the qualitative nature of Plaintiff's advertising, its lack of consumer surveys, and questions regarding prior attempts to plagiarize are all evidentiary in nature and properly reviewed on motion for summary judgment. Plaintiff has adequately plead secondary meaning.
For example, the Complaint states that Plaintiff, "extensively marketed its pioneering shade system, spending approximately 1.2 million dollars during 2015-2017." (Compl. ¶ 17.) Defendant argues that this is insufficient because Plaintiff failed to describe how its advertising money was spent. (Id. at 8.) In support, it cites cases that have no bearing on a motion to dismiss: Mana Prod., Inc. v. Columbia Cosmetics Mfg. , Inc.,
Defendant does cite two cases that were decided at the motion to dismiss stage. The first, Sara Designs ,
Here, Plaintiff has pleaded a specific amount of advertising expenditures.
Nevertheless, Defendant also argues that Plaintiff's advertising is insufficient to show secondary meaning because it promoted, "the 'functional advantages' of [Plaintiff's] product without calling attention to nonfunctional aspects of the design." (Def.'s MTD, at 9.)
"Advertising that promotes the functional advantages of a product and does not call attention to the design alleged to be non-functional provides little if any evidence of secondary meaning." Urban Grp. Exercise Consultants, Ltd. v. Dick's Sporting Goods, Inc., No. 12 Civ. 3599,
Here, Plaintiff has attached dozens of examples of its print and digital advertising to its Complaint. (Compl. Ex. B.) Its ads prominently feature images and descriptions of its trade dress, and were published in magazines, newspapers, and various trade directories, or disseminated via digital platforms (i.e., email campaigns and website banner ads). (See
In addition, Plaintiff pleads facts to support the "Sales Success" factor of secondary meaning. A product's sales success might be indicative of whether consumers associate a product's trade dress with its origin. See, e.g., Harlequin Enterprises Ltd. v. Gulf & W. Corp. ,
The Complaint states that, "J Geiger began selling the J Geiger Shading System in 2014. Since that time, sales grew by 286% in 2015, followed by 412% in 2016, and 50% in 2017." (Compl. ¶ 16.) This sales growth coincides chronologically with the 1.2 million dollars in advertising expenditures that Plaintiff alleges were spent between 2015 and 2017. (Compl. ¶ 17.)
Defendant points out that Plaintiff presents no actual sales figures. However, whether Plaintiff's sales growth can be characterized as "sales success" is not a question to be resolved on a motion to dismiss. For the time being, it is sufficient that Plaintiff pleaded a growth in sales over the relevant period to plead the "Sales Success" prong of the secondary meaning analysis.
Finally, Plaintiff alleges a continuous length of use of its dress. "Secondary meaning has been found when continuous exclusive usage of a trade dress occurred over a five-year period." Bubble Genius LLC v. Smith ,
The Complaint states that the J Geiger Shading System was marketed as early as 2012, but did not begin to sell the Shading System until 2014. (Compl. ¶ 16.) Plaintiff alleges that Defendant introduced its purportedly infringing Palladiom shading system in September, 2017. (Id. ¶ 21, 48 56.) In its opposition papers, Plaintiff also alleges that it had exclusive use of its trade dress until Defendant's shading system entered the market in 2017. (Opp. MTD, at 9.)
In sum, Plaintiff alleges that it spent over a million dollars in advertising its trade dress and that, in conjunction with that advertising, its sales increased dramatically year-over-year for at least two years. It also alleges that it has used its trade dress continuously since at least 2014. The Complaint also states that, "Through [ ] extensive and continuous use, J Geiger's trade dress has become a well-known indicator of the origin and quality of J Geiger's products."
Taken together, Plaintiff's factual allegations adequately plead secondary meaning for the purposes of a Fed. R. Civ. P. 12(b)(6) Motion to Dismiss. Courts have assumed secondary meaning at the motion to dismiss stage on very minimal pleadings, recognizing that determination of many factors going to secondary meaning will require discovery. See Metrokane ,
Plaintiff has sufficiently pleaded secondary meaning.
4. Plaintiff Has Sufficiently Pleaded Likelihood of Confusion
In the Second Circuit, courts apply the nonexclusive factors of the Polaroid test to analyze whether Defendant's trade dress is likely to cause confusion as to the source of its product: "(1) the *285strength of the plaintiff's mark; (2) the similarity of the parties' marks; (3) the proximity of the parties' products in the marketplace; (4) the likelihood that the plaintiff will bridge the gap between the products; (5) actual consumer confusion between the two marks; (6) the defendant's intent or any bad faith in adopting its mark; (7) the quality of the defendant's product; and (8) the sophistication of the relevant consumer group." Cartier ,
Some elements of the Polaroid test clearly do not apply or are plainly not alleged. For example, the fourth factor, "the likelihood that the plaintiff will bridge the gap between the products," is not relevant in this case: in Polaroid , the court was analyzing the likeliness of consumer confusion where two companies had a similar name ("Polaroid" and "Polarad") but produced goods in different industries. Polaroid ,
In addition, it is clear that the Complaint does not allege any actual consumer confusion. Thus, at the pleading stage, the fifth factor does not weigh in favor of Plaintiff.
However, the Complaint states, "Defendant's use of J Geiger's trade dress and/or colorable imitations thereof is likely to cause confusion, mistake, or deception as to the affiliation, connection, and/or association of Defendant with J Geiger and as to the origin, sponsorship, and/or approval of the infringing products." (Compl. ¶ 42.) Plaintiff also alleges, albeit in a somewhat general manner, the sixth factor: "Defendant's bad faith is evidenced at least by the similarity of the infringing products to J Geiger's trade dress and by Defendant's continuing disregard for J Geiger's rights." (Id. ¶ 58.)
As to the similarity of the parties' marks (the second factor), the Complaint illustrates the striking similarity between the J Geiger Shading System and Defendant's Palladiom Shading System with side-by-side photographic comparisons of the jamb, center, and end brackets from each producer. (Id. ¶¶ 48, 52, 56.)
It is also clear from the Complaint that the proximity of the products is sufficiently close to create a likelihood of confusion. "The proximity factor 'focuses on whether the two products compete with each other[,] ... serve the same purpose, fall within the same general class, or are used together.' " Cartier ,
The remaining factors require a fact-intensive inquiry not suitable for a motion to dismiss. See Eliya ,
*286Plaintiff has made sufficient allegations regarding likelihood of confusion to survive this motion.
C. The Motion to Dismiss Count III is Granted
Plaintiff's state law claim for unjust enrichment based on trade dress infringement, however, must be dismissed. Under New York state law, "The theory of unjust enrichment lies as a quasi-contract claim and contemplates an obligation imposed by equity to prevent injustice, in the absence of an actual agreement between the parties." Georgia Malone & Co. v. Rieder ,
In order to state a claim for unjust enrichment, a plaintiff must allege that "(1) the other party was enriched, (2) at [plaintiff's] expense, and (3) that it is against equity and good conscience to permit the other party to retain what is sought to be recovered." Franklin v. X Gear 101, LLC , 17 Civ. 6452 (GBD) (GWG),
In addition, a plaintiff must allege that "they performed services for the defendant, which caused the defendant's unjust enrichment." Int'l Diamond Imps., Inc. v. Med Art, Inc. , No. 15-CV-4045 (KMW),
Instead, the Complaint states that Defendant operated with an "undue advantage" and "wrongfully obtained benefits at J Geiger's expense" because it profited from the use of Plaintiff's trade dress without "the expenses incurred by J Geiger." (Compl. ¶ 26.) Plaintiff argues that "Defendant has wrongfully obtained and is wrongfully obtaining a benefit at J Geiger's expense by taking undue advantage and free-riding on J Geiger's efforts and investments and enjoying the benefits of J Geiger's hard-earned goodwill and reputation." (Id. ¶ 27.) Plaintiff does not allege it performed any services for Defendant.
Plaintiff fails to allege a relationship or connection between itself and Defendant. The Complaint alleges only that the parties are competitors. This connection is far too attenuated to state a claim in quasi contract. See Mandarin Trading ,
CONCLUSION
For the foregoing reasons, Defendant's motion to dismiss Plaintiff's complaint is DENIED as to Count II and GRANTED as to Count III. The Clerk of the Court is directed to remove the motions at Dkt. No. 46 from the Court's list of pending motions.
Pursuant to Fed. R. Civ. P. 41(a)(A)(i), Plaintiff voluntarily dismissed Count I-a patent infringement claim-from its Complaint. (Pl's Notice of Voluntary Dismissal, Dkt. No. 64.) Only Counts II and III remain.
"Prior to the codification of the functionality element by the Trademark Amendments Act of 1999, 5 Pub. L. 106-13 (August 5, 1999), [the non-functionality] element was an affirmative defense in the Second Circuit." Malaco Leaf, AB v. Promotion In Motion, Inc. ,
Reference
- Full Case Name
- GEIGTECH EAST BAY LLC v. LUTRON ELECTRONICS CO., INC.
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- 31 cases
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- Published