BellSouth Corp. v. White Directory Publishers, Inc.

42 F. Supp. 2d 598, 49 U.S.P.Q. 2d (BNA) 1801, 1999 U.S. Dist. LEXIS 2526, 1999 WL 190903
CourtDistrict Court, M.D. North Carolina
DecidedJanuary 20, 1999
DocketCiv. 1:97CV00897
StatusPublished
Cited by18 cases

This text of 42 F. Supp. 2d 598 (BellSouth Corp. v. White Directory Publishers, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BellSouth Corp. v. White Directory Publishers, Inc., 42 F. Supp. 2d 598, 49 U.S.P.Q. 2d (BNA) 1801, 1999 U.S. Dist. LEXIS 2526, 1999 WL 190903 (M.D.N.C. 1999).

Opinion

MEMORANDUM OPINION

BULLOCK, Chief Judge.

INTRODUCTION

This matter is before the court on a motion for summary judgment filed by. Defendants White Directory Publishers, Inc., and White Directory of Carolina, Inc. (collectively “White Directory”). This action arises out of Plaintiff BellSouth Corporation’s (“BellSouth”) claim that White Directory has infringed upon the “walking fingers” logo in .areas where BellSouth provides local telephone service. 1 Bell-South asserts its claim of infringement under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), which affords protection to unregistered marks under certain circumstances, asserts a claim of dilution under Section 43(c) of the Lanham Act, and asserts claims under North Carolina statutory and common law. After completion of discovery, White Directory moved for summary judgment on the grounds that the history of AT & T’s development and implementation of the symbol reveals that it is not a valid and protectible trademark. White Directory also argues that the equitable doctrines of laches, judicial estoppel, and res judicata bar BellSouth’s action. For the following reasons, the court will grant White Directory’s motion for summary judgment.

FACTS

The following facts are established . in the pleadings, affidavits, deposition testimony, and exhibits offered by the parties. Where there are disputes, each party’s position is given.

•The nature of White Directory’s summary judgment argument requires the court to examine in some detail the history of the development of the mark at issue here, the famous “walking fingers” logo. BellSouth contends in its complaint that it and its predecessors have used the three-fingered logo on their telephone directories since 1962 to signify to the public the source of these directories. Although neither AT & T nor BellSouth and its predecessors registered the mark, BellSouth maintains that its continuous use of the mark and the public’s association of it with BellSouth warrant affording the mark protection under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). BellSouth has submitted to the court several surveys which it contends suggest that the public views the “walking fingers” logo as the brand identifier, as well as other evidence which it contends indicates that White Directory’s use of the “walking fingers” creates confusion among advertisers and the general public as to the source of White Directory’s product.

White Directory’s basic defense to these allegations is that AT & T, after developing the “walking fingers” logo, announced it did not consider the logo to be a protec-tible interest, thereby disclaiming any proprietary rights it might have had in the logo and placing it in the public domain. White Directory has provided the court with affidavits of Edward Hancharik and Fred E. Smykla, formerly top-level officers of AT & T and the National Yellow *601 Pages Service Association, respectively, to recount the history of the logo’s development and AT & T’s representations regarding the status of the mark. White Directory also has presented evidence that numerous directories not associated with BellSouth have borne the “walking fingers,” dating back to AT & T’s creation of the mark, and that AT & T not only acquiesced in such use of the logo, but expressly approved of it and encouraged it as well. White Directory argues that by these actions AT & T established the logo’s status as a product identifier for the yellow pages generally, rather than as a brand identifier for AT & T or any Bell System company. Such a designation would negate any claim of protection under trademark law asserted by BellSouth and would warrant summary judgment.

The story of the “walking fingers” begins in the 1960’s. Edward Hancharik, who worked in AT & T’s Directory Services Group from 1952 until 1972, when he became director in charge of all telephone directory services at AT & T, has provided in his affidavit a summary of the relevant historical events. The Directory Services Group did not publish telephone directories, a service performed by the various Bell operating companies, but rather coordinated and promoted use of yellow pages telephone directories (both Bell and non-Bell) across the nation. If use of yellow pages increased nationally AT & T-affiliated companies stood to benefit in terms of advertising dollars received by virtue of the large market share they commanded. To this end AT & T launched a television and print advertising campaign using the slogan “Find it Fast in the Yellow Pages”; with this slogan appeared a logo depicting a telephone over an open yellow pages book. According to Hancharik, “[ajdver-tisers were given decals bearing this logo, and were encouraged to and did use the telephone-over-the-open-book logo on store fronts, trucks, and the like.” Hancharik Aff., ¶ 4.

In the 1960’s AT & T, with the help of an advertising firm, developed a new national slogan to promote yellow pages use, “Let Your Fingers Do the Walking in the Yellow Pages.” A new logo appeared as well, which initially featured female fingers walking over a telephone directory. Within a few years the fingers were modified so as not to depict gender. The logo underwent minor modifications again in the 1970’s, and by 1978 appeared in the form still used today. As with the previous symbol and slogan, the new “walking fingers” were used both by the Bell operating companies and by advertisers. AT & T also used the logo itself to advance general use of yellow pages. In the November 10, 1975, issue of Time magazine, for example, an AT & T advertisement appeared promoting yellow pages advertising. Han-charik Aff., Ex. A.

In addition to furthering use of the logo by the Bell operating companies, AT & T also encouraged independent telephone companies (ie., those other than the regional Bells) and independent directory publishers to use the logo on classified directories they produced. These non-Bell companies also used the symbol and slogan as part of their own advertising and promotional efforts, and encouraged their advertisers to display the logo. Thus the logo came to be used not only by advertisers appearing in Bell directories, but also by those appearing in directories of independent telephone companies and independent publishers not affiliated with telephone companies. According to Han-charik, “the walking fingers slogan was used extensively throughout the country as the symbol for the yellow pages.” Hancharik Aff., ¶ 6. This conclusion is supported by a note appearing in a 1975 issue of Southern Bell’s “Views” magazine. The note is headlined “ ‘Walking fingers’ identify Yellow Pages,” and begins “ ‘Let Your Fingers Do the Walking’ has proven to be one of the best-known product identifications of all time.” Perlman Aff., ¶ 69; Perlman Aff., Ex. 29 to Ex. K.

*602 In light of this widespread use of the “walking fingers,” the Bell operating companies inquired of AT & T whether the logo should be registered as a trademark.

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Bluebook (online)
42 F. Supp. 2d 598, 49 U.S.P.Q. 2d (BNA) 1801, 1999 U.S. Dist. LEXIS 2526, 1999 WL 190903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellsouth-corp-v-white-directory-publishers-inc-ncmd-1999.