Bostitch, Inc. v. King Fastener Co.

140 A.2d 274, 87 R.I. 274, 1958 R.I. LEXIS 52
CourtSupreme Court of Rhode Island
DecidedApril 18, 1958
DocketEq. No. 2589
StatusPublished
Cited by9 cases

This text of 140 A.2d 274 (Bostitch, Inc. v. King Fastener Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bostitch, Inc. v. King Fastener Co., 140 A.2d 274, 87 R.I. 274, 1958 R.I. LEXIS 52 (R.I. 1958).

Opinion

*276 Paolino, J.

This is a bill in equity charging the respondent with unfair competition in simulating the containers used by the complainants in the marketing of staples manufactured by the respondent for use in stapling machines which the complainants manufacture and sell. The bill seeks an injunction, money damages and other relief. After a hearing before a justice of the superior court on bill, answer and proof, a decree was entered granting certain prayers of the complainants for relief and denying others. From such decree both parties have appealed, the respondent’s appeal being based on the ground that the relief granted was erroneous, and the complainants’ appeal on the ground that the trial justice erred in denying the additional relief prayed for.

*277 It appears from the record that complainants manufacr ture and sell stapling machines and staples, including certain “hump crown staples” which are involved in this case, in about one hundred different sizes and types designated by distinctive code numbers and which were protected by a patent until September 1953. Upon the expiration of such patent respondent and others legitimately began to manufacture and sell similar staples. The complainants do not question the right of respondent to copy the staples themselves after the patent expired.

The issues raised are based entirely upon the methods of packaging used by respondent in the sale of the staples for use in stapling machines manufactured and sold by complainants. Such issues relate only to the form and color of the containers used by respondent in marketing the staples in question. More specifically complainants charge respondent with unfair competition in copying complainants’ wrappings and cartons with respect to their color, design, style of dress, printing and collocation of features, as well as the use of complainants’ code numbers thereon.

It appears from the evidence that prior to 1935 complainants were marketing their staples in light green cartons with two darker green stripes running horizontally across the face and down across the ends — a wider line at the top, a narrower one below — with the Bostitch name and code number on the face. This style and basic design was used until the Second World War when the light green box became unavailable. During that period brownish craft boxes with the same dark green stripes were used. However, in 1948 complainants again began using the light green boxes with the dark green stripes and printing. From 1948 to 1953, 18,772,295 boxes of this type were sold.

The respondent corporation, which was organized in 1947, was engaged in the manufacture of stapling machines and staples. After the hump crown staple patent of complainants had expired in September 1953, respondent and others *278 began to make and sell the hump crown staples. The respondent marketed its hump crown staples, which were designed for use in Bostitch machines, in packages alleged by complainants to be almost identical with the Bostitch packages and bearing no name of any kind upon such packages or their wrappings. The only designation which appeared on respondent’s wrappings was the number of “Cohered Wire Staples” contained therein and the legend “Similar To” after which appeared complainants’ code number describing the staples enclosed.

Samples of the packages of both parties to this action were introduced in evidence. The trial justice noted: “It is crystal clear to the Court that the one is a close copy of the other, designed to simulate the other and certain, to the extent appearance can, to lead the average customer to believe that respondent’s box is that of the complainant and contains the complainant’s product.”

Up to this point we have been discussing the industrial stapling machine and staples to fit the same. However, it also appears from the evidence that complainants made and sold small hump crown staples for desk staplers and marketed these in yellow boxes with certain distinctive markings thereon. In 1953 respondent produced identical staples and packaged them in boxes so similar to complainants’ with respect to color and design that the trial justice noted “that it clearly was intended to simulate the comparable box of the complainant.” However, it appears from the evidence that respondent has discontinued the use of such box and has stated that it has no intention of using the same again. The trial justice further noted that reference to such box was important only as indicating the clear intent of respondent to simulate the box of complainants.

It also appears from the evidence that late in 1953 complainants had begun to use a darker green box with the same horizontal lines; that after receiving a warning letter from complainants in October 1954, respondent began to use a *279 new box, retaining a light green base, changing the arrangement of lines, but still using the same color combination and the Bostitch code numbers but with no designation as to the source or origin of manufacture. With reference to this the trial justice stated: “The respondent still in fact and by intent is in the opinion.of the Court seeking to profit from identifying its staples with those manufactured by the complainant and still remains guilty of unfair competition to an extent deemed by the Court actionable.”

The manner in which complainants sell their products is pertinent to the instant issues. They have ten wholly owned subsidiary sales corporations and five independent franchised distributors in the United States as well as wide distribution in over forty foreign countries. They also have over 360 full-time salesmen in the United States who sell directly to consumers and to retail dealers. Sales are made through more than 25,000 outlets consisting of over 11,000 retail stationery stores and over 14,000 industrial dealers including lumberyards and hardware stores. It also appears from the evidence that they have used extensive magazine advertising and counter and window displays as part of their sales methods.

The respondent’s manufacture of staples designed for use in Bostitch stapling machines amounts to about 20 per cent of its total business. The respondent does not have exclusive sales distributors of its products. Its distributors carry large inventories of many competing lines of staples. The name “Bostitch” does not appear on any of respondent’s packages. However, it does use complainants’ code numbers on such packages, following the legend “Similar To” thereon. Such code numbers are used by it for the purpose of notifying prospective purchasers thereof that the staples contained therein are similar to those of complainants which have a like code number and that they are designed for use in stapling machines made by complainants.

In their bill of complaint complainants allege that their *280

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Bluebook (online)
140 A.2d 274, 87 R.I. 274, 1958 R.I. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bostitch-inc-v-king-fastener-co-ri-1958.