Anheuser-Busch Brewing Ass'n v. Fred Miller Brewing Co.

87 F. 864, 1898 U.S. App. LEXIS 2751
CourtU.S. Circuit Court for the District of Eastern Wisconsin
DecidedJune 13, 1898
StatusPublished
Cited by5 cases

This text of 87 F. 864 (Anheuser-Busch Brewing Ass'n v. Fred Miller Brewing Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anheuser-Busch Brewing Ass'n v. Fred Miller Brewing Co., 87 F. 864, 1898 U.S. App. LEXIS 2751 (circtedwi 1898).

Opinion

SEAMAN, District Judge.

The bill seeks to enjoin the defendant from using the name “Budweiser” as the designation of a brand or brew of beer manufactured by it; and no ground for re[865]*865lief is os1 ablished by the testimony, unless it may be found within the equitable doctrine relating to unfair competition in trade. Although it is undisputed that this designation has been employed by the complainant and its predecessor in business, for about 20 years, as the name of a special manufacture of beer, for which wide reputation and extensive trade has been obtained throughout this country and abroad, the name is distinctively geographical (referring to a place in Bohemia, Austria, called “Budweis”); and it is both conceded and indisputable that this use confers no property right or monopoly in such name, as a trade-mark. On the other hand, the allegations on the part of the complainant, that it lias thus established a business and good will in the sale of Budweiser beer, of great extent and value, are well supported, and not controverted. There is, however, no foundation for the further allega lion that the beer manufactured and sold by the defendant under this name is of an inferior quality, or “an ordinary American beer,” and there is no testimony which even tends to impugn its actual quality as a beverage. 2ior is the name or place of the defendant, as the manufacturer of its Budweiser, in any manner disguised, nor is there simulation of the appearance of complainant’s bottles or labels in those how used by the defendant, to constitute on their face a means to palm off the article upon the public as the actual production of the complainant, except so far as the name “Budweiser” is used, and is identified as exclusively of its production. So that no case is presented which is literally within the well-settled line of authorities in respect of such impositions upon the public, nor is it brought directly within the rule stated in the recent and well-considered opinion of Judge Bunn, speaking for the circuit court of appeals, in Flour-Mills Co. v. Eagle, 86 Fed. 668. relating to false pretense as to the place of manufacture, as neither the complainant nor the defendant 3s located in Budweis, and neither holds forth a pretense of such location, in any respect. The purport of the name, as asserted by each, is to designate Ibis brand of beer as made “according to the Budweiser process,” namely, I hat in the ingredients and brew it conforms to the special produclion of beer at Budweis. Therefore the issue is purely one of a fraudulent appropriation of this name, without foundation in fact, under circumstances which both intend and cause imposition, to the injury of the complainant’s business and good will. With no property right existing in the name “Budweiser,” it is clear that the defendant cannot be precluded from using it to designate its special brew, if necessary for accurate description, or even if such use is “truthful,” as alleged in the answer, and is also honest and ingenuous. But if the manufacture of beer was not of such character as to make this name specially applicable, and it was selected arbitrarily, and for the purpose of taking advantage of the established reputation of the complainant’s Budweiser, and with the effect of disturbing its trade therein, such use constitutes unfair competition, — is “unfairly stealing away another’s business and good will.” — and must be regarded, in equity, as fraudulent. As remarked in Thread Co. v. Armitage, 67 Fed. 900:

[866]*866“This good will is the complainant’s inheritance, and its property. It is as much a part of its assets as its mill or its counting house. No one has a right to destroy it, except by fair and honest competition.”

In Conrad v. Brewing Co. (decided in 1880) 8 Mo. App. 277, there was a strong adjudication in favor of the complainant’s predecessor, respecting a fraudulent use of this particular trade-name. While no other case of the numerous citations by counsel can be said to pass upon the question in the form here presented, I am of opinion that the proposition above stated, as to fraudulent use of a name which would otherwise be open to all users, is clearly within the uniform line of decisions in equity, distinguishing honest competition from that which is unfair and illegitimate, and granting relief against devices and means of the latter class which cause imposition, whatever the form. In this view of the law, the facts, so far as material to the controversy, are well established, by admissions, and by testimony which is practically undisputed, as follows:

1. The predecessor of the complainant, Mr. Conrad, commenced the manufacture of a beer of distinctive character and excellence about the year 1876, through Anheuser & Co., as brewers. This product was originally made of materials, imported for the purpose,, similar to those used in a certain brewery at Budweis, and by the same process which was there employed; and the beer so produced was thereupon named “Budweiser,” constituting the first adoption of such title for any manufacture of beer in this country. If the beer made at the Budweis brewery was ever brought to this country in any quantity, either under the name of “Budweiser,” or other designation, it is not shown by competent evidence; and the only inference which can be drawn from the testimony in that regard is that the name was introduced and became known to the trade in this country solely through this St. Louis production. As to the name by which the original manufacture at Budweis was known, the defendant introduced, without proper identification, and under objection, a label which shows the name “Budweiser Beer” on a purported importation in New York from Budweis; and. a witness who formerly resided at Budweis states that two grades of beer were produced there, one of which was known as “Budweiser Common Beer,” and the other as “Budweiser Lager Beer.” The label was clearly insufficient for any purpose, and the testimony as to local name, if otherwise satisfactory, cannot affect the present inquiry. The main ingredients which were peculiar to this beer, as originally made, were (1) Saazer hops, (2) a fine quality of Bohemian barley, supplemented by (3) Bohemian pitch, and (4) Bohemian yeast; the latter two imparting, as claimed, peculiar flavor and quality. The details of the process are not disclosed, for reasons which are probably justifiable, but it is positively asserted that the brew uniformly conforms to the Budweis process; and sufficient facts appear to show that it is, on the whole, distinctive as a process.

2. The complainant, as successor to the brewers, Anheuser & Co., and by transfer from Conrad, subsequently continued the manufacture on its own account, following strictiy the same process and care, and employing the same material, except that the finest quality [867]*867of American barley, either Canadian or domestic, selected for the purpose, is stated to have taken the place of the imported article after the first year or two, because it was found that equal or superior quality could thus be obtained, while the beer retained its distinclive character, and resemblance to the original Budweis jiroduction, unaffected by such change. This substitution appears to have been recognized on the labels, by stating the use of the "finest barley,” in place of the previous wording, "Bohemian barley.”

3. The beer thus produced was of distinctive character, especially in its light color and its flavor, and it appears that such distinction has been uniformly maintained from the outset.

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Related

Anheuser-Busch, Inc. v. Du Bois Brewing Co.
73 F. Supp. 338 (W.D. Pennsylvania, 1947)
Anheuser-Busch, Inc. v. Power City Brewery, Inc.
28 F. Supp. 740 (W.D. New York, 1939)

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Bluebook (online)
87 F. 864, 1898 U.S. App. LEXIS 2751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anheuser-busch-brewing-assn-v-fred-miller-brewing-co-circtedwi-1898.