American Distilling Co. v. Bellows & Co.

226 P.2d 751, 102 Cal. App. 2d 8, 88 U.S.P.Q. (BNA) 254, 1951 Cal. App. LEXIS 1261
CourtCalifornia Court of Appeal
DecidedJanuary 26, 1951
DocketCiv. 14539
StatusPublished
Cited by15 cases

This text of 226 P.2d 751 (American Distilling Co. v. Bellows & Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Distilling Co. v. Bellows & Co., 226 P.2d 751, 102 Cal. App. 2d 8, 88 U.S.P.Q. (BNA) 254, 1951 Cal. App. LEXIS 1261 (Cal. Ct. App. 1951).

Opinion

SCHOTTKY, J. pro tem.

This is an appeal from a judgment in favor of defendent and cross-complainant and against plaintiff and cross-defendant denying appellant’s complaint for declaratory relief and granting respondent an injunction against appellant.

Plaintiff and appellant, The American Distilling Company, and defendant and cross-complainant Bellows and Company, Inc., were both Maryland corporations doing business in California. The American Distilling Company filed a complaint for declaratory relief against Bellows and Compahy, Inc., seeking an adjudication to the effect that a trade-mark chosen by said company for a new blend of whiskey did not constitute an infringement of respondent’s trade-mark or unfair competition against said respondent.

The complaint attached as exhibits photostats of labels used by appellant on its new brand of whiskey and that used by respondent on one of its brands. Bottles of the products bearing these labels were also introduced in evidence by plaintiff, while respondent introduced as exhibits bottles of seven different additional brands produced by it, all of which bore the trade-mark Bellows. ’ ’

The complaint alleged that defendant claimed and asserted ownership of a trade-mark consisting of the word “Bellows,” and that after plaintiff began distribution of its new brand “Fellows,” defendant claimed and asserted that plaintiff’s brand and label was an infringement of defendant’s brand and label and of its alleged trade-mark and threatened plaintiff with action by reason of the alleged infringement of trademark and unfair competition.

Defendant and respondent answered and filed a cross-complaint setting forth that the trade-mark “Bellows” is registered in the United States Patent Office as Registration No. 365,723, issued March 14, 1939, for use on whiskey, and that defendant and cross-complainant is the owner of said trademark and said registration; that the sale, distribution and advertising of whiskey and other alcoholic beverages bearing the trade-mark “Bellows” and the corporate name of Bellows and Company, Inc. have been very extensive throughout the United States and in California amounting to the sum of *11 $108,000,000 from January 1, 1942, to September 30, 1948, and that during that period more than $1,980,000 was spent on advertising liquor bearing said trade-mark; that due to the long and extensive use of said trade-mark and corporate name, whiskey and other alcoholic beverages have come to be widely and favorably lmown as defendant and cross-complainant’s products and are identified by the public by said trade-mark and corporate name to defendant and cross-complainant’s great benefit and profit. It alleged also that the word “Bellows” had acquired a secondary meaning in that to the trade and purchasing public whiskey and alcoholic beverages bearing the trade-mark “Bellows” had come to mean and still mean defendant and cross-complainant’s products only. It further alleged that each and both of the designations “Fellows” and “A. J. Fellows” are colorable imitations of defendant and cross-complainant’s trade-mark Bellows and the corporate name “Bellows & Company, Inc.” with intent to deceive the trade and the public into purchasing plaintiff’s whiskey bearing such designations in the belief that said whiskey is the product of defendant and cross-complainant; that the use by plaintiff of such designations infringes defendant and cross-complainant’s trade-mark “Bellows” and corporate name “Bellows & Company, Inc.” and constitutes unfair competition with defendant and cross-complainant. It was alleged that defendant and cross-complainant had notified plaintiff and cross-defendant that its use of the aforesaid designations infringed defendant’s trade-mark and constituted unfair competition and demanded discontinuance of its use, whereupon plaintiff and cross-defendant notified cross-complainant that it had discontinued use of said designations, but threatened to resume their use if it is not judicially determined that it is violating defendant and cross-complainant’s rights in using said designation. Cross-complainant asked that plaintiff’s use of the designations “Fellows” and “A. J. Fellows” be adjudged infringement of cross-complainant’s trade-mark “Bellows” and the name “Bellows & Company, Inc.” and unfair competition; that plaintiff and cross-defendant be perpetually enjoined from using the aforesaid designations; that plaintiff account to defendant for all profits from the sale of whiskey bearing such designations.

The testimony at the trial showed that the name Bellows had been used in the business of respondent and its predecessors since 1847 and is well known in connection with alcoholic beverages throughout the United States. It was found by the *12 trial judge, (and these findings are not questioned by appellant) that from January 1, 1943, to December 31, 1948, Bellows and Company, Inc., and its predecessors sold more than $115,000,000 worth of whiskey and other alcoholic beverages, bearing the trade-mark “Bellows” and the corporate name of “Bellows & Company, Inc.,” and that from January 1, 1944, to December 31, 1948, said company and its predecessors in title sold to customers located in California about $14,300,000 worth of whiskey and other alcoholic beverages bearing the Bellows trade-mark and corporate name; also that from January 1, 1942, to December 31, 1948, said company and its predecessors in title spent $2,262,000 upon advertising its products, said trade-mark “Bellows” and said corporate name, of which $172,000 was spent in California from January 1, 1945, to December 31, 1948.

The trial court found, and appellant does not dispute the finding, that the trade-mark “Bellows” was registered in the United States Patent Office under No. 365,723, issued March 14, 1939, for Scotch whiskey, of which trade-mark and registration Bellows and Company, Inc. is the owner; that the word “Bellows,” the surname of the founder of the business now operated by defendant, as used in the trade is an abbreviation of the corporate name Bellows and Company, Inc.

The record shows that appellant herein developed a new blend of straight whiskies in July, 1948, which it wished to place on the market under a new brand name. Mr. Buck, Mr. Greenwood and Miss Bajuk, appellant’s vice-president, assistant treasurer and sales manager, and assistant secretary, respectively, jointly chose the name “Fellows” because of its advertising potential. Miss Bajuk suggested the name Fellows, they stated, because it was thé name of her sister, Mrs. Ann June Fellows. Mrs. Fellows was a widow, employed as a land bank clerk and had no connection with the liquor business. Bo.th Mr. Buck and Mr. Greenwood had been familiar with respondent and its trade-mark for many years prior to the adoption by them of the name “Fellows.” Since under the Business and Professions Code the name of a person cannot be registered as a trade-mark with the Secretary of State of California unless the name is written in some particular script or distinguishing manner (Bus. & Prof. Code, § 14242(d)) the facsimile signature “A. J. Fellows’’.was registered as a trademark for use .in connection with, straight whiskey. A label was designed and an adyertlsing .campaign . developed, ¡Shqrtíy after appellant’s, new .product reached the. market appellant *13 was advised by respondent that the name “Fellows” infringed its trade-mark “Bellows.”

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226 P.2d 751, 102 Cal. App. 2d 8, 88 U.S.P.Q. (BNA) 254, 1951 Cal. App. LEXIS 1261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-distilling-co-v-bellows-co-calctapp-1951.