Coats v. Merrick Thread Co.

149 U.S. 562, 13 S. Ct. 966, 37 L. Ed. 847, 1893 U.S. LEXIS 2325
Supreme Court of the United States·Decided May 10, 1893·No. 261·Published·Cited by 131 cases

Opinion

*565 Me. Justice Beown,

aifter stating -the case, delivered the opinion of the court.

The gravamen' of the plaintiffs’ bill is contained in the allegation that the defendants have been guilty of an unlawful and unfair competition in business, in that they have be^n infringing the rights of plaintiffs in and to certain marks, symbols and labels, by selling in competition with the plaintiffs a spool thread of “ six cords ” put up on spools of 200 yards’ length, which thread is not manufactured by these plaintiffs, but is put upon the market and' sold among retailers and.customers, as well in the city of New. York as in other and distant-parts of the United States, as and for the thread of the plaintiffs, by reason of the labels, marks, and devices upon the spools whereon the said thread is wound.

It will be observed in this connection that no complaint is made of the conduct of the defendants with respect to any other thread than that of six cords put up in spools of 200 yards in length, notwithstanding that both plaintiffs and defendants have been long engaged in the manufacture of thread of several different sizes and lengths. Nor is it alleged that defendants have used any other means of imposing their thread upon the public as that of the plaintiffs, except by the imitation of their device upon -one end of the spool. The dissimilarity between the labels on the other end of the spool is so great that it is not and could not be claimed that any intent to imitate existed.

It is admitted, however, that six-cord spool cotton is the thread most largely used for domestic consumption, and, put up on spools of 200 yards’ length, in numbers from 8 to 100, best’known and purchased by the great mass of consumers; and that it is as manufacturers of this description of thread that the plaintiffs are and have for a long .-time been known throughout the country.

The controversy between the two parties then is reduced to the single question whether, comparing the two designs upon the main or upper end of the spool, there is such resemblance as to indicate an intent on the part of defendants to put 6ff *566 their thread upon the public as that of the plaintiffs, and thus to trade upon their reputation. There can be no question of the soundness of the plaintiffs’ proposition that, irrespective-of- the technical question of trade-mark,- the defendants have no right to.dress their goods up in such manner as to deceive aii intending purchaser, and induce him to believe he is buying those of the plaintiffs. Rival manufacturers may lawfully compete for the patronage of the public in the quality and price of their goods, in the beauty and tastefulness of their enclosing packages, in the extent of their advertising, and in the employment of agents, but they have no right, by imitative devices, to beguile the public into buying their wares under the impression they are buying those of their rivals. Perry v. Truefitt, 6 Beav. 66; Croft v. Day, 7 Beav. 84; Lee v. Haley, L. R. 5 Ch. 155; Wotherspoon v. Currie, L. R. 5 H. L. 508; Johnston v. Ewing, 7 App. Cas. 219; Thompson v. Montgomery, 41 Ch. D. 35; Taylor v. Carpenter, 2 Sand. Ch. 603; Amoskeag Mfg. Co. v. Spear, 2 Sand. N. Y. 599; McLean v. Fleming, 96 U. S. 245; Boardman v. Meriden Britannia Co., 35 Connecticut, 402; Gilman v. Hunnewell, 122 Mass. 139.

For the' better understanding of the question in this case, the respective devices of the plaintiffs and defendants are here given in juxtaposition : •

It will be seen that in both devices there is a paper label, circular in form, much smaller than the head of the spool, containing, in black letters upon a gilt ground, the name of the. manufacturer, the number of the thread, and the words “Best Six Cord,” arranged in circular form to correspond with the shape of the label. Around this label in each case is *567 a peripheral border of natural wood, having the number of the thread embossed upon such periphery. The differences are less conspicuous than the general resemblance between the two. At the same time they are such as could not fail to impress themselves upon a person who examined them with a view to ascertain who was the real manufacturer of the thread. Plaintiffs’ label contains the words “ J. & P. Coats, Best Six Cord ” in a gilt band around the border, and in the centre the symbol “200 Tds.” and the number of the thread. Defendants’ label contains the words “ Merrick Thread. Co.,” and the number of their thread in the gilt band upon the border, and in the centre the words “ Best Six Cord,” enclosing a star. The periphery of defendants’ spool is also embossed with four stars, instead of the loops of the plaintiffs, as well as 'the number of the thread.

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Coats v. Merrick Thread Co., 149 U.S. 562, 13 S. Ct. 966, 37 L. Ed. 847, 1893 U.S. LEXIS 2325 (1893).

149 U.S. 562 (Coats v. Merrick Thread Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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