California Prune & Apricot Growers' Ass'n v. H. R. Nicholson Co.

158 P.2d 764, 69 Cal. App. 2d 207, 65 U.S.P.Q. (BNA) 533, 1945 Cal. App. LEXIS 650
CourtCalifornia Court of Appeal
DecidedMay 17, 1945
DocketCiv. 12804
StatusPublished
Cited by12 cases

This text of 158 P.2d 764 (California Prune & Apricot Growers' Ass'n v. H. R. Nicholson Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Prune & Apricot Growers' Ass'n v. H. R. Nicholson Co., 158 P.2d 764, 69 Cal. App. 2d 207, 65 U.S.P.Q. (BNA) 533, 1945 Cal. App. LEXIS 650 (Cal. Ct. App. 1945).

Opinion

STURTEVANT, J.

The plaintiff alleged two separate counts against the defendant. It pleaded a charge that the defendant was guilty of infringing on the plaintiff’s trademark and that the defendant was guilty of unlawful and unfair acts of competition. The defendant denied said allegations, and on those pleadings, among others, issue was joined and a trial was had. Later the trial court made findings in favor of the plaintiff on each material issue.

This defendant now contends that the record does not show it was guilty of infringing on plaintiff’s trademark or that it was guilty of doing any unlawful or wrongful acts of competition. A complete answer is the findings are to the contrary and the record contains an abundance of evidence supporting the findings. In its brief the plaintiff sets forth separately a set of facts which it asserts shows its rights and a set of facts which it claims shows the defendant’s rights. In its closing brief the defendant does not challenge the accuracy of either statement. Those two statements follow, with certain modifications.

Plaintiff’s History.

The respondent, California Prune and Apricot Growers Association, is a nonprofit, cooperative organization, formed by grower-members in the year 1922, as the outgrowth of an earlier organization, California Prune and Apricot Growers, *210 Inc., wherein the growers held shares of stock in proportion to the acres that they signed up.

Respondent’s said predecessor was organized in 1917 and immediately adopted and commenced using the word “Sun-sweet” as the principal trademark or brand to identify the goods canned, bottled, packed and processed by it. In that first year the commodities of the predecessor company were packed largely in what are called bulk 25- and 50-pound boxes, from which the retail trade served the customer with anything from one pound up that they might be seeking to purchase.

Use of the “Sunsweet” mark by respondent’s predecessor in 1917 is further evidenced by a Christmas package of “Sunsweet” prunes, as an early carton pack. Further commercial use of the trademark was evidenced by a photographic reproduction of a display of “Sunsweet” prunes in a Sacramento hotel. Respondent’s predecessor during its existence commenced the use of a five-pound prune carton bearing the trademark “Sunsweet.”

From the inception of the business of respondent’s predecessor the use of the trademark “Sunsweet” was expanded to other commodities in addition to dried prunes and apricots, and there are in evidence facsimiles of labels employed in marking such new items, including a photostatic copy of the history of respondent’s predecessor’s application for registration of the mark in the Patent Office, and including reproductions of labels applied to “Ready to Serve” canned prunes; fruit butter made from prunes and apricots, and a jam product which was “simply a blend of apricots with some citrus fruit ingredient.” This application was filed' April 28, 1921.

Cognizant from substantially the inception of its business that its products had direct relation to the preparation of beverages, the respondent, as early as 1921-22, urged and taught the ultimate consumer how to readily and simply convert “Sunsweet” prunes into a prune juice beverage, including final preparation with plain or carbonated water.

From the outset the “Sunsweet” trademark was what respondent calls its “top brand,” namely, the brand under which “the highest type and quality” of its dried fruits was offered and sold to the public. The “Sunsweet” brand of goods was widely and nationally advertised even in the early years of the business as evidenced by the advertising supple *211 ment to the “Sunsweet Standard,” bearing date December, 1921, reporting on the past and future advertising programs and media and containing reproductions of snch advertising material. Respondent’s witness, Dunlap, identified the contents of said supplement as typical of the kind of advertising employed.

Expansion of respondent’s “Sunsweet” business to prune juice, in its commercially bottled form, as distinguished from the early recommendation for consumer manufacture of a beverage from “Sunsweet” prunes, occurred in 1932 and might have had its inception prior to that time. It came about as a result of respondent’s desire to fully utilize its available raw materials, i. e., the fruit grown by its members. One of respondent’s exhibits ivas identified as a replica of the “Sun-sweet” prune juice package employed in 1932.

At the present time the respondent itself sells “Sunsweet” prune juice in the. territory west of the Transcontinental Divide. East of the dividing line “Sunsweet” prune juice is sold by a firm named Duffy-Mott by an arrangement with respondent. The arrangement contemplates the shipment of prune concentrate in 50-gallon barrels to Duffy-Mott, which processes and distributes prune juice as a finished beverage. Under the arrangement with Duffy-Mott the respondent reserves the right of supervision of the preparation of the prune juice sold under the trademark “Sunsweet”; it checks the quality; it picks up samples and they are tested in San Jose by a chemist.

As early as April 29, 1933, respondent was advertising “Sunsweet” prune juice, which it was offering for sale as a finished beverage, as shown by an advertisement in “Pacific Rural Press.” Typical newspaper advertising is evidenced by one of plaintiff’s exhibits covering the period October 20, 1933 to March, 1934, and another exhibit shows a full page four-color advertisement in the Saturday Evening Post, the estimated cost of which was $11,000 for a single issue. Plaintiff’s Exhibit 16 is a collection of typical advertisements in various media, during the period July, 1941-June, 1943, covering various “Sunsweet” products including specific mention of “Sunsweet” prune juice.

The history and broad pattern of respondent’s advertising of its “Sunsweet” products is shown in the recapitulation of *212 expenditures in evidence. It was explained by the witness Hendrixson, respondent’s statistician, that the years 1917 and 1918 were not included in the recapitulation because of his inability to locate the exact ledgers, and his understanding that the advertising conducted by respondent’s predecessor in the initial two-year period was primarily promotional in character.

In the fiscal year 1933-1934 the sum of $34,646.52 was allocated to the advertisement of “Sunsweet” prune juice; in the next succeeding fiscal year the amount was $102,139.17; the next year $129,210.86. Additionally, in 1932-1933 the sum of $13,188.28 was allocated for the allowance of 5 per cent special discounts for advertising and the next year (1933-1934) the sum was increased to $58,061.60.

Exhibits in evidence reflect the growth of respondent’s business in the sale of “Sunsweet” products, namely, carton prunes, carton apricots, carton seedless raisins, carton peaches, whipped prunes and prune juice, and were based upon a study of respondent’s records.

The fact of federal registration of respondent’s trademark for its various commodities was proved by the introduction of printed copies (by stipulation, in lieu of certified copies). Additionally, three other registrations were proved by file histories.

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158 P.2d 764, 69 Cal. App. 2d 207, 65 U.S.P.Q. (BNA) 533, 1945 Cal. App. LEXIS 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-prune-apricot-growers-assn-v-h-r-nicholson-co-calctapp-1945.