Beak Lithia Springs Co. v. Great Bear Spring Co.

71 N.J. Eq. 595
CourtNew Jersey Court of Chancery
DecidedMay 22, 1906
StatusPublished
Cited by1 cases

This text of 71 N.J. Eq. 595 (Beak Lithia Springs Co. v. Great Bear Spring Co.) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beak Lithia Springs Co. v. Great Bear Spring Co., 71 N.J. Eq. 595 (N.J. Ct. App. 1906).

Opinion

Bergen, V. C.

The issue presented in this cause is the alleged infringement by the defendant of complainant’s trade name and symbol. The complainant advertises its potable water under the name “Bear Lithia Water,” and a symbol which is the representation of a black bear with the words “Bear Lithia Water” printed across its body. It appears that recently some of the advertising matter of the ccftnplainant contains figures or representations of various kinds of bears, including one of a polar bear, but such use was made for the purpose of illustrating the printed matter, and not with the intention of adopting them as a trade symbol. The symbol used by the complainant upon all of its labels, and which it relies upon as its adopted trade mark, is a black bear standing upon four feet, with the words above mentioned printed across its body. The defendant advertises its potable water and offers it to the public under the name of “Great Bear Spring Water,” and is using as a trade symbol the figure of a polar bear standing on a cake of ice in some cases, and in others partly on a cake of ice and partly in the water in which the ice is floating. The complainant claims priority in the use of a bear as a symbol, and of the word “Bear” as descriptive of the origin and ownership of the articles sold, and charges that in using the polar bear as a symbol, and the words “Great Bear Spring” as descriptive, the defendant has created a confusion in the marketing of goods of the respective parties, resulting in unfair competition, besides misleading the unwary purchaser, and prays that the defendant be restrained from using the word “Bear,” or the figure of a bear of any description, in connection with its business. The water sold by the complainant comes from springs at Elkton, Va., located on lands owned by a family named Bear as long ago as 1778, and which, at least since 1860, have been known in the neighborhood of Elkton as “Bear Springs,” a name undoubtedly [597]*597accorded because tbe lauds were owned by tbe Bear family. While the testimony shows that this water was sold prior to 1885, such sales were confined to a very limited area, and were not of sufficient moment to have any weight in settling the merits of this controversy, but in the latter year an analysis of the water was made by Professor Mallet, of the University of Virginia, which disclosed the presence in the water of twelve one thousandths of a grain of lithia per gallon, and from that time the name “Bear Lithia Water” was adopted to describe the water, and a copy of the analysis has since then been printed on the labels used by the complainant on one of its packages. The analysis of the water made by the defendant for the purposes of this suit vary so little from that made in 1885 that I am justified in assuming that the earlier analysis was substantially correct. Prom 1888 the complainant and its predecessors in title have extensively advertised this water as “Bear Lithia Water,” in connection with the figure of the black bear above described as a symbol, until it has become well known in the market under that name. The testimony also shows that the defendant did not put its goods on the market under the name and symbol it now uses until after the complainant had, to some degree, established a name and reputation for its water under the trade name “Bear Lithia Water,” in connection with its trade symbol of a black bear with the name of the water printed across its body.

The defendant’s use of its name and symbol, of which complaint is made, originated as follows: Near Pulton, New York, there existed a spring known for many years in that locality as the “Great Bear Spring.” It was situated in a section of country which for several miles adjacent to the spring contained numerous other springs, some of which were appreciably affected by the drawing of the water from the Great Bear Spring, for a public water-supply. In 1885 a water company was organized to furnish the city of Fulton with a public water-supply, and for that purpose the Great Bear Spring was appropriated by that company and artificially enlarged, so that its capacity was increased at the expense of other smaller springs in the immediate vicinity. In 1890 a partnership was formed by persons at Fulton under the name of the “Pure Water Supply Company,” [598]*598which at first purchased water from the Fulton Water Company, taken from the Great Bear Spring, and sold it in Syracuse, New York, as a table water. This business so increased that in 1894 the partnership established a branch in Jersey City, and began supplying potable water to purchasers in New York City, as well as in other cities adjacent. The water distributed from Jersey City does not come from the original Great Bear Spring, but from other springs located in the same district or water-shed some distance from it. The defendant undertook to show that the spring from which the water they are selling is taken was known in the neighborhood as one of the Great Bear Springs, but in my opinion the preponderance of the evidence does not favor that claim, and my conclusion is that the water which they are thus selling does not come from the Great Bear Spring, nor is it one of a group sufficiently near the Great Bear Spring to be classed as a feeder to that spring, because it has an outlet of its own and has no subterraneous connection with the Great Bear Spring, since it has not been depleted or affected by the demands made upon the greater spring.

On the 18th day of April, 1899, the defendant was incorporated under the laws of this state, assuming the name of “Great Bear Spring Company,” which corporation succeeded to the property and rights of the Pure Water Supply Company, and has since conducted its business under the new name. The complainant corporation was also incorporated under the laws of this state, in August, 1899, as “Bear Lithia Springs Company,” succeeding to the corporate rights of the Bear Lithia Water Company, á corporation organized under the laws of Virginia. While the water sold by the defendant was always advertised, since 1890, as “Great Bear Spring Water,” the use of the polar bear as a trade emblem does not appear much earlier than 1894, at least not to an -extent sufficient to indicate any intention to appropriate it for such a purpose. The complainant by its bill of complaint prays for an injunction restraining the defendant from using the word “Bear” as a part of its corporate name; from applying the word “Bear” to the water sold by it, and from using the figure of a bear of any description in advertising or selling its table water. The defendant insists that because it [599]*599was chartered by this state to use its present corporate name, this court cannot restrain such use. This proposition has not the sanction of the best authority. A corporation may adopt a corporate name if not in conflict with our Corporation act, but such adoption gives it no greater right to use it to the injury of another than if an individual should so act. A corporation cannot appropriate the name or trade marks of another, and thus obtain its business by any simulation or deceit. C. S. Higgins Co. v. Higgins Soap Co., 144 N. Y. 462.

The first question presented is, Has the defendant, by the adoption and use of a corporate name, including the word “Bear,” and by advertising its goods as “Great Bear Spring Water,” unlawfully infringed the rights of the complainant, resulting in unfair competition and probable confusion of business? There is ho pretence that the defendant has simulated the labels or packages of the complainant, other than in the use of the figure of a polar bear.

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Cite This Page — Counsel Stack

Bluebook (online)
71 N.J. Eq. 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beak-lithia-springs-co-v-great-bear-spring-co-njch-1906.