The opinion of the court was delivered by: GLASSER
GLASSER, United States District Judge:
This action was originally commenced on May 29, 1981; the amended complaint ("the complaint") was served on July 14, 1981. The complaint asserts five causes of action on behalf of plaintiffs Sapienza, a doctor of dentistry, and Comprehensive Dental Services ("CDS"), a professional corporation organized for the practice of dentistry in which Sapienza is the principal and majority stockholder. The defendants named are Stuart S. Osleeb, a doctor of dentistry, and Selden Medical Arts Corporation ("Selden"), a corporation in which Osleeb is the President and principal shareholder. The complaint recites the following relevant factual allegations.
On or about August 6, 1974, defendant Selden entered into a lease agreement with Doctors Leipsic and Berkowitz as lessees, for a portion of the first floor of the Selden Medical Center, a building owned by Selden. The lease commenced on September 1, 1974, and was to expire on August 31, 1989. One of the provisions of the lease provided as follows:
. . . THE LESSEE SHALL HAVE THE RIGHT TO ASSIGN THIS LEASE TO ONE OR more general dentists, duly licensed to practice dentistry by the state of New York with the written consent of the landlord . . .
It is further agreed that neither the original tenant nor any assignee shall permit the premises to be used by other than general dentists and/or periodontists, and that no oral surgeon or orthodontist shall engage in practice on the demised premises, unless and until the lessee or the assignee (as the case may be) shall have first contacted by registered mail return receipt requested any orthodontist or oral surgeon then practising at the medical center and offered to have the lessee's (or assignee's, as the case may be) patients treated by such specialists, at the lessee's then prevailing fee arrangement and practices at other locations, and the specialists shall have rejected such offer.
On or about February 7, 1975, Leispsic and Berkowitz entered into an agreement assigning their interests and rights as lessees to plaintiff Sapienza. One of the provisions of the assignment agreement provided as follows:
Frank P. Sapienza, D.D.S. shall carry on a general dentistry practice in accordance with the practice restrictions set forth in the lease.
Frank P. Sapienza, D.D.S. will not engage, now or hereafter, in the practice of orthodontics at the demised premises nor shall any future partner, associate, employee, engage at any time in the practice of Orthodontia at the above mentioned premises.
Sapienza entered into possession of the premises and began to practice dentistry at that location.
In or about October 1977, Sapienza began to advertise CDS, a clinic providing dental services. At about the same time, defendant Osleeb solicited and obtained information from Sapienza concerning the nature of CDS's dental practice, and the methods and procedures by which it was organized and administered.
In or about March 1978, Osleeb, using the information obtained from Sapienza, opened a dental clinic in a building adjacent to the leased premises where CDS was operating. Osleeb's clinic was officially known as "Complete and Affordable Dental Services," but was referred to informally as "Complete Dental Services." The dental services offered were similar to those available at CDS.
On the basis of these essential facts, the complaint asserts five separate causes of action. The first cause of action is for trademark and tradename infringement. The complaint states that plaintiffs CDS and Sapienza had used the name "Comprehensive Dental Services," and the identifying mark "CDS," since at least October 1977, and that these designations had become associated by the public with the dental services offered by CDS. The complaint alleges that the intent and effect of defendant Osleeb's use of the name "Complete Dental Services" was to appropriate the good will and reputation of plaintiff CDS, and to ...