Beer Nuts, Inc., Cross-Appellee v. Clover Club Foods Company, Cross-Appellant

711 F.2d 934, 221 U.S.P.Q. (BNA) 209, 1983 U.S. App. LEXIS 26535
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 22, 1983
Docket81-1545, 81-1600
StatusPublished
Cited by131 cases

This text of 711 F.2d 934 (Beer Nuts, Inc., Cross-Appellee v. Clover Club Foods Company, Cross-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beer Nuts, Inc., Cross-Appellee v. Clover Club Foods Company, Cross-Appellant, 711 F.2d 934, 221 U.S.P.Q. (BNA) 209, 1983 U.S. App. LEXIS 26535 (10th Cir. 1983).

Opinion

SEYMOUR,

Circuit Judge.

Beer Nuts, Inc. (Beer Nuts) sued Clover Club Foods (Clover Club) alleging trademark infringement under 15 U.S.C. § 1114 (1976), unfair competition under 15 U.S.C. § 1125 (1976), 1 and a pendent claim of state law trademark infringement. These claims arose from Clover Club’s use of the words “Brew Nuts” with a picture of an overflowing stein on packages containing a sweetened, salted peanut product virtually identical to. a product sold by Beer Nuts. Clover Club counterclaimed, seeking a declaration that Beer Nuts’ registered trademark is void. After a bench trial, the district court denied relief to both parties and both parties have appealed. We reverse and remand for further proceedings. 520 F.Supp. 395.

*937 I.

TRADEMARK USE

The term “Beer Nuts” was registered as a trademark in 1955 and has become incontestable under section 1065. 2 Beer Nuts claims that its right to the exclusive use of its trademark has been infringed because Clover Club’s use of the term “Brew Nuts” together with an overflowing stein constitutes a trademark likely to cause confusion. The district court stated in its memorandum opinion, however, that “Clover Club’s use of the words ‘Brew Nuts’ is a description of its product rather than a trademark.” Rec., vol. I, at 51.

The defenses to the claimed infringement of an incontestable trademark are codified in section 1115 3 The “fair use” defense permits the use of a name or term, other than as a trademark, that is descriptive and is used fairly and in good faith only to describe the goods. § 1115(b)(4). This defense is not available if the alleged descriptive use is in fact a trademark use. Soweco, Inc. v. Shell Oil Co., 617 F.2d 1178, 1187 (5th Cir.1980), cert. denied, 450 U.S. 981, 101 S.Ct. 1516, 67 L.Ed.2d 816 (1981); Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 12-13 (2d Cir.1976).

We do not believe the district court’s statement that “Brew Nuts” is used as a description rather than as a trademark was intended as a holding that Clover Club established a “fair use” defense under section 1115(b)(4). In the first place, Clover Club did not plead the “fair use” defense in its answer to the complaint, nor did it assert the defense as an issue in the pretrial order. Moreover, the district court made no findings that the descriptive use was accomplished “fairly and in good faith.” See § 1115(b)(4); cf. M.B.H. Enterprises v. *938 WOKY, Inc., 633 F.2d 50, 53-54 (7th Cir. 1980) (findings adequate).

In any event, the record clearly establishes that Clover Club used the words “Brew Nuts” in conjunction with an overflowing stein as a trademark. A term or symbol is used as a trademark when the producer uses it to identify the source of his goods to the public and to distinguish those goods from others. See M.B.H. Enterprises, 633 F.2d at 53-54. A trademark is a symbol that attracts public attention, is the most prominent element on the package, and dominates the package as a whole. See Venetianaire Corp. v. A. & P. Import Co., 302 F.Supp. 156, 158-59 (S.D.N.Y.1969), aff’d, 429 F.2d 1079 (2d Cir.1970).

In this case, the words “Brew Nuts” are much larger than the other lettering on the package and in a different type style. The words are set off in a distinctive red-brown oval, outlined in dark brown and topped by a conspicuous white circle containing a picture of an overflowing beer stein. Below or above the oval, depending on the particular package, is the phrase actually used to describe the product: “sweetened salted peanuts.” Furthermore, the president of Clover Club, Robert Sanders, testified repeatedly that Clover Club uses secondary trademarks on some of its products in addition to the company name, and that “Brew Nuts” is such a trademark. 4

Based on our examination of the Clover Club package, the testimony of Mr. Sanders as to the trademark nature of the “Brew Nuts” logo, and the fact that Clover Club did not contend below that the “Brew Nuts” logo is not a trademark, we conclude as a matter of law that Clover Club has deliberately used “Brew Nuts” as a trademark.

II.

INFRINGEMENT

The district court held that the “Beer Nuts” trademark was not infringed. Based solely on a side-by-side comparison of the Beer Nuts and Brew Nuts packages, the court determined that “the product packaging and wording are sufficiently unique so as to preclude any likelihood of confusion as to the origin of the competing products.” Rec., vol. I, at 47 (emphasis in original). Beer Nuts argues that the trial court applied incorrect and incomplete legal standards in making this determination. A survey of the law applicable to the issue of infringement is necessary to provide a *939 framework for our disposition of this contention.

“A trademark is a distinctive mark, symbol, or emblem used by a producer or manufacturer to identify and distinguish his goods from those of others.” Educational Development Corp. v. Economy Co., 562 F.2d 26, 28 (10th Cir.1977). “The strength or distinctiveness of a mark determines both the ease with which it may be established as a valid trademark and the degree of protection it will be accorded.” McGregor-Doniger Inc. v. Drizzle, Inc., 599 F.2d 1126, 1131 (2d Cir.1979). Trademark strength is measured by “its tendency to identify the goods sold under the mark as emanating from a particular, although possibly anonymous, source.” Id. The use of terms or marks falls into four broad categories for purposes of legal recognition: (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or fanciful. Soweco, 617 F.2d at 1183. Only the first two categories are relevant to the issues on appeal. 5

A generic mark has been described as referring to “ ‘a particular genus or class of which an individual article or service is but a member.’ ” Soweco, 617 F.2d at 1183 (quoting Vision Center v. Opticks Inc.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Navajo Nation v. Urban Outfitters, Inc.
212 F. Supp. 3d 1098 (D. New Mexico, 2016)
2
Second Circuit, 2016
MPC Franchise, LLC v. Tarntino
Second Circuit, 2016
Savant Homes, Inc. v. Collins
809 F.3d 1133 (Tenth Circuit, 2016)
Predator International, Inc. v. Gamo Outdoor USA, Inc.
669 F. Supp. 2d 1235 (D. Colorado, 2009)
University of Kansas v. Sinks
565 F. Supp. 2d 1216 (D. Kansas, 2008)
Hodgdon Powder Co., Inc. v. ALLIANT TECHSYSTEMS
497 F. Supp. 2d 1221 (D. Kansas, 2007)
John Allan Co. v. Craig Allen Co. LLC
505 F. Supp. 2d 986 (D. Kansas, 2007)
Harris Research, Inc. v. Lydon
505 F. Supp. 2d 1161 (D. Utah, 2007)
Medi-Flex, Inc. v. Nice-Pak Products, Inc.
422 F. Supp. 2d 1242 (D. Kansas, 2006)
Bliss Clearing Niagara, Inc. v. Midwest Brake Bond Co.
339 F. Supp. 2d 944 (W.D. Michigan, 2004)
Victoria's Secret Stores v. Artco Equipment Co.
194 F. Supp. 2d 704 (S.D. Ohio, 2002)
Ford Motor Co. v. Lloyd Design Corp.
184 F. Supp. 2d 665 (E.D. Michigan, 2002)
Alderman v. Iditarod Properties, Inc.
32 P.3d 373 (Alaska Supreme Court, 2001)
Vasquez v. Ybarra
150 F. Supp. 2d 1157 (D. Kansas, 2001)
Rainforest Café, Inc. v. Amazon, Inc.
86 F. Supp. 2d 886 (D. Minnesota, 1999)
Primedia Intertec Corp. v. Technology Marketing Corp.
35 F. Supp. 2d 809 (D. Kansas, 1998)
LURZER GMBH v. American Showcase, Inc.
73 F. Supp. 2d 327 (S.D. New York, 1998)
Buca, Inc. v. Gambucci's, Inc.
18 F. Supp. 2d 1193 (D. Kansas, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
711 F.2d 934, 221 U.S.P.Q. (BNA) 209, 1983 U.S. App. LEXIS 26535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beer-nuts-inc-cross-appellee-v-clover-club-foods-company-ca10-1983.