Checker Food Products Company, a Corporation v. Ralston Purina Company a Corporation

232 F.2d 477
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 25, 1956
Docket15345
StatusPublished
Cited by7 cases

This text of 232 F.2d 477 (Checker Food Products Company, a Corporation v. Ralston Purina Company a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Checker Food Products Company, a Corporation v. Ralston Purina Company a Corporation, 232 F.2d 477 (8th Cir. 1956).

Opinion

SANBORN, Circuit Judge.

This is an appeal by the plaintiff (appellant) from a judgment dismissing its action brought in December, 1951, under the Trade-Mark Act, 15 U.S.C.A., §§ 1116, 1117, 1121, upon the claim that the defendant (appellee) had infringed the plaintiff’s trade-mark rights in the name “Checker,” and had engaged in unfair competition.

Each of the parties is a Missouri corporation with its principal place of business in St. Louis, Missouri.

The plaintiff in its complaint alleged that since about March 15, 1936, it has been engaged in the sale at wholesale of breakfast foods made from grains and particularly from rice and wheat; that since the inception of its business it has engaged in nationwide advertising of its trade-marks “Checker Rice Puffs” and “Checker Wheat Puffs,” which has resulted in the association of those names with the plaintiff’s products in the minds of the buying public; that in 1951 the defendant advertised the manufacture and sale by it of breakfast foods and cereals known as “Rice Chex” and “Wheat Chex”; that the use of these names was a “direct infringement on the good will and trade-mark built up by plaintiff,” and was done for the purpose of misleading and deceiving the buying public into believing that the products of the defendant are in some way associated with the favorably known business of the plaintiff in the sale of “Checker Rice Puffs” and “Checker Wheat Puffs”; that the defendant’s conduct in this regard is likely to cause confusion in the minds of buyers as to the source of the defendant’s products, and constitutes unfair competition; and that the defendant, after being notified by the plaintiff of its demand that the defendant stop using the names “Rice Chex” and “Wheat Chex,” has refused to do so.

The defendant in its answer admitted that the plaintiff had sold some puffed rice and puffed wheat in packages, and stated that the defendant in 1951 had sold, under the trade-mark “Chex”, a shredded rice biscuit breakfast food and a shredded wheat biscuit cereal. The defendant denied that this constituted .an infringement of the plaintiff’s trademarks or unfair competition. The defendant alleged that it has been engaged in the milling business for more than 50 years; that its principal products throughout this period have been breakfast cereals and animal feeds; that its total sales have amounted to billions of dollars and its sales of breakfast cereals to over one hundred million dollars; that for more than 50 years a marking of contrasting colored squares, known as the “checkerboard” marking and registered in the United States Patent Office as the defendant’s trade-mark for the various products sold by the defendant, has been used continuously by it and has come to be known by the public as the generic trade-mark for the defendant’s products, and that it appears upon every unit of the products, of which the plaintiff complains. The defendant further alleged that it had used the mark “Checker” since 1922 on animal feeds and had registered that mark in the Patent Office; that the defendant had also used the registered trade-mark “Checkr-” on breakfast cereals since 1927; and that, “should the average purchaser of breakfast cereals associate the mark ‘Chex’ with the term ‘check’ or combining forms thereof, * * * the average purchaser of breakfast cereals will necessarily associate the mark ‘Chex’ with defendant rather than with plaintiff."

The issues raised by the pleadings were tried to the court. There was little dispute as to the evidentiary facts, and many of them were stipulated. The controlling issue in the case was, as it usually is and has been in all such cases, see McLean v. Fleming, 96 U.S. 245, 252-256, 24 L.Ed. 828; Kann v. Diamond *479 Steel Co., 8 Cir., 89 F. 706, 707, whether there was any confusing or deceptive similarity between the marks used by the defendant upon its shredded rice and shredded wheat breakfast foods, namely “Rice Chex” and “Wheat Chex”, on cartons with a checkerboard design, and the marks used by the plaintiff — in the sale of its puffed rice and puffed wheat products — upon its cellophane packages and cartons, namely “Checker Rice Puffs” and “Checker Wheat Puffs.”

The original corporate name of the plaintiff was Gandolfo-Ghio Manufacturing Company. It was incorporated in 1896. The name was changed to Checker Food Products Company, which name has been used since 1927. Its president purchased some of its capital stock in 1934, and eventually acquired all of such stock. After 1934 the plaintiff was selling spaghetti, macaroni, egg noodles, cream meal, pancake flour, soup mixes, puffed wheat, and puffed rice. Most of these items were sold under the Checker label. The name “Checker” has been used on products of the plaintiff since about 1920. The plaintiff (then Gandolfo-Ghio Manufacturing Company) on September 20, 1920, applied for registration of the trade-mark “Checker” for spaghetti, macaroni, vermicelli, and noodles, and it was registered in the United States Patent Office on December 13, 1921, as No. 149,384. The registration was renewed December 13, 1941, to Checker Food Products Company. Puffed wheat and puffed rice are the major products now being sold by the plaintiff. They are not manufactured by the plaintiff, but by a corporation the capital stock of which is also owned by the plaintiff’s president. The plaintiff’s fiscal year ends August 31st. The largest amount the plaintiff derived from its sales of puffed wheat and puffed rice in any year from 1944 to 1951 was $153,-097.76 in 1945. There was a sharp falling off in the sales of these products of the plaintiff after the war. In 1950 sales amounted to $75,072.64, and in 1951 to $94,748.64.

The plaintiff sells puffed wheat and puffed rice in 46 states and in the District of Columbia. Outside of the metropolitan area of St. Louis, sales are made through food brokers. The plaintiff advertises by giving premiums and sales incentives to dealers, and in newspapers, and may have done some radio advertising. It runs some advertisements in cooperation with customers. It packages its products in cellophane bags or in small cartons wrapped with waxed paper.

Since 1938 the plaintiff has had no dispute or litigation with the defendant. From 1937 or 1938 until the spring of 1950, the defendant made no claim against the plaintiff for the use of any name and the plaintiff made no such claim against the defendant. There had been some prior litigation. See Ralston Purina Co. v. Checker Food Products Co., Mo.App.1935, 80 S.W.2d 717, in which the Ralston Purina Company charged the Checker Food Products Company with unfair competition, and in which it was held that there was no reasonable probability of confusion between the then style of dress and designation adopted by the parties for their respective products, at page 720 of 80 S.W.2d.

In the early part of April, 1950, the defendant offered to purchase the plaintiff’s rights in the name “Checker” for $20,000. The offer was refused by the plaintiff’s president.

The use by the defendant of the name “Rice Chex” came to the plaintiff’s attention about December, 1950, or January, 1951, and the use of the name “"Wheat Chex” was first noticed about August, 1951. Demand was made upon the defendant to cease using those names.

Prior to using the names “Checker Rice Puffs” and “Checker Wheat Puffs,” the plaintiff had sold these same products in 1937 and 1938 under the names “Checker Rice Pops” and “Checker Wheat Pops”.

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Bluebook (online)
232 F.2d 477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/checker-food-products-company-a-corporation-v-ralston-purina-company-a-ca8-1956.