Bengue v. American Pharmaceutical Co.

155 Misc. 602, 280 N.Y.S. 153, 1935 N.Y. Misc. LEXIS 1206
CourtNew York Supreme Court
DecidedMay 18, 1935
StatusPublished
Cited by5 cases

This text of 155 Misc. 602 (Bengue v. American Pharmaceutical Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bengue v. American Pharmaceutical Co., 155 Misc. 602, 280 N.Y.S. 153, 1935 N.Y. Misc. LEXIS 1206 (N.Y. Super. Ct. 1935).

Opinion

Collins, J.

By this action it is sought to restrain the defendants from competing unfairly with the plaintiffs. The basic plaint is that the defendants are practicing fraud by utilizing the name which, by long and constant use and vast and expensive adver[603]*603rising, had become, and still is, associated by the public as describing and identifying the plaintiffs’ product, and by so dressing the defendants’ article, and so setting it, that the defendants’ product is palmed off for that of the plaintiffs’.

In 1896 the plaintiff, Dr. Jules Bengué, a physician and pharmacist of France, compounded menthol, salicylate of methyl and lanolin into a salve theretofore unused and unknown, to which preparation he gave the designation “ Baume Analgésique Bengué,” French words meaning healing balm.” Two years later Dr, Bengué came to the United States where he launched a branch business and embarked upon the manufacture and sale of “ Baume Analgésique.” Not only was there no pharmaceutical preparation then known in this country by that name, but no emollient containing the elements of menthol, salicylate of methyl and lanolin Was being marketed or even manufactured here.

As was its history in France, the preparation soon won favor here. It prospered.

In 1899 the plaintiff Theodore Seltzer was appointed Dr. Bengué’s agent in this country, and the third plaintiff, Thos. Leeming & Co., became the sole American distributor of the preparation. The product was marketed here in a telescoped brown and white cardboard box, approximately four and one-half inches long, one and three-fourths inches wide and one inch deep. The box was labeled “ Baume Analgésique Bengué,” and the tube, as well as a circular inclosed in the box, bore substantially the same legend.

For a period of about twenty years the advertising of the preparation was confined to hospitals and physicians and medical publications. The extensive public advertising came later.

Up to about 1908 no similar preparation was marketed, but that year Parke, Davis & Co. marketed a like article called “ Analgesic Balm,” whereupon the plaintiff Leeming commenced to warn their (plaintiffs’) customers of imitations.

In 1918 Leeming began to advertise the preparation generally through the medium of newspapers and street car cards, about $2,000,000 having been spent here by the plaintiffs in that connection. In 1918 the inscription “ The Original French Product ” appeared underneath the legend “ Baume Analgésique Bengué,” and from 1922 Baume Analgésique Bengué was altered to “ Baume Bengué (Analgésique),” “(Analgésique)” appearing in smaller type than “ Baume Bengué.” In 1928 the plaintiffs unfurled the slogan: “ Always ask for the genuine in the brown and white box.” Again, in 1933, “ The Original French Product ” was supplanted by “ The Original French Analgésique Baume,” and the phrase “ Ben-Gay ” in red letters, was added.

[604]*604From its inception the preparation was given a French setting; it appeared in a French atmosphere; constantly, and in various ways, the idea that the product was of French origin was propagated and impressed upon the public. And the public came to know and demand the preparation as a French product. They knew it as “ Baume Analgésique.” However they pronounced or mispronounced it, the public became acquainted with the healing balm as a French invention and this familiarity was created by the plaintiffs with their product.

From 1898 to 1929 no other preparation than the plaintiffs’ was marketed in this country under the name “ Baume Analgésique.”

In 1932 — thirty-four years after the entry of the plaintiffs’ product in the United States —■ the defendants marketed a preparation which they labeled “ Baume Analgésique.” The initials “ A. P. C.,” in small type, appeared underneath. This product, too, was and is marketed in a tube contained in a box the precise size and color as that of the plaintiffs’, although the defendants’ house color had been golden-rod and brown. On the defendants’ box in large letters are the words French Formula ” and Genuine.” Patently, the general color scheme adopted by the defendants simulates that of the plaintiffs’. The defendants, who have made virtually no expenditures for advertising, are thus enabled to sell their product to the trade at two dollars and forty cents a dozen, whilst the plaintiffs’ product is sold at six dollars a dozen. In 1931 the plaintiffs sold about 2,500,000 tubes; but the sales have decreased since the defendants’ competition.

I have not essayed to chronologize the facts or to particularize the salient evidence. But it is transparent that the marketing of the two compounds, similarly named and embellished, has occasioned not only confusion but deception.

The answer to the query whether the defendants are competing unfairly with the plaintiffs resides in the facts etched. These facts carry their own conclusion. To state the issue is to resolve it. The juxtaposition of the respective exhibits alone dictates the-judgment.

Let it be emphasized that this case should not be confused with copyright cases. Accordingly, many of the citations advanced by the defendants, involving, as they do, technical questions pertaining to copyright, have no pertinency here. The present concern is with the application of the far-flung principles of equity to the fairness and legitimacy of the competition between these litigants. (Coats v. Merrick Thread Co., 149 U. S. 562.)

The law of unfair competition is of comparatively recent origin. It is the necessary creation of intensive business rivalry which often incites unfair methods. Whilst the books contain a multitude of [605]*605cases bearing on this branch of equity, the principles governing them are simple, as, indeed, are the fundamental rules of honesty and fair dealing. The essence of these principles is that competition between business rivals must be fairly and honestly conducted. The survival of the fittest ’ in trade and commerce must result from contests legitimately launched and ethically directed.

“ Of course, the law does not undertake to regulate every aspect of business. Nor does it interfere in every case of commercial immorality. Too much interference would be as baneful as an inflexible policy of absolute non-interference. Necessarily, there must be limitations and guiding rules, and, necessarily, each case must depend for sustenance upon its own larder.” (American Chain Co., Inc., v. Carr Chain Works, Inc., 141 Misc. 303, 306, 307.)

“The doctrine of unfair trade amounts to no more than this: One person has no right to sell goods as the goods of another, nor to do other business as the business of another, and on proper showing will be restrained from so doing.” (White Studio, Inc., v. Dreyfoos, 221 N. Y. 46.)

When we apply this simple doctrine of honesty to this case, the issue is determined.

The defendants insist that the words “ Baume Analgésique,” meaning “ analgestic balm,” are descriptive, that they accurately and truthfully describe the defendants’ compound as well as the plaintiffs’ and that, therefore, the plaintiffs can acquire no such monopoly in these words as to prevent their adoption by others.

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Bluebook (online)
155 Misc. 602, 280 N.Y.S. 153, 1935 N.Y. Misc. LEXIS 1206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bengue-v-american-pharmaceutical-co-nysupct-1935.