Consumers Union of United States, Inc. v. Hobart Manufacturing Co.

189 F. Supp. 275, 125 U.S.P.Q. (BNA) 296, 1960 U.S. Dist. LEXIS 4870
CourtDistrict Court, S.D. New York
DecidedApril 20, 1960
StatusPublished
Cited by11 cases

This text of 189 F. Supp. 275 (Consumers Union of United States, Inc. v. Hobart Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consumers Union of United States, Inc. v. Hobart Manufacturing Co., 189 F. Supp. 275, 125 U.S.P.Q. (BNA) 296, 1960 U.S. Dist. LEXIS 4870 (S.D.N.Y. 1960).

Opinion

DIMOCK, District Judge.

This is a motion for a preliminary injunction against continuation of alleged *277 copyright infringement and unfair competition.

The conduct complained of is the defendants’ circulation among distributors and dealers of a Sales Bulletin which is alleged to have contained copies of material published in plaintiff’s copyrighted magazine “Consumer Reports”. Plaintiff accepts as correct Judge Murphy’s description of its business in Consumers Union of United States, Inc. v. Lectra Sales Corp., D.C.S.D.N.Y., 179 F.Supp. 161, 162: “Plaintiff, a membership corporation, is a testing company which publishes a magazine called Consumer Reports wherein it provides information and advice relating to consumer goods but in which it does not promote commercially any product tested and reported upon.”

The magazine, plaintiff alleges, sells monthly 650,000 copies to subscribers and 150,000 copies on newsstands at sixty cents a copy. Defendant, Hobart Manufacturing Company, hereinafter Hobart, manufactures automatic dishwashers under the name KitchenAid. Defendant Speed Queen Atlantic Company, Inc., hereinafter Speed Queen, is one of its distributors.

The December 1959 number of plaintiff’s magazine “Consumer Reports” contained a Report entitled “Automatic Dishwashers”. It rated the various makes on the market under the heads “Acceptable-Excellent”, “Acceptable-Fair to Good” and “Acceptable-Fair”. Besides these classifications the various makes were described with favorable or unfavorable comments on various features. Out of eighteen makes, defendants’ was rated second and placed in the “Acceptable-Fair to Good” class.

Defendant Hobart, when the Report came to its attention, got out about eighty copies of its Sales Bulletin No. 176 and sent them to its distributors. Defendant Speed Queen made copies which it sent to dealers. The Sales Bulletin was entitled “Well, What About That December Magazine Report?” The burden of the Sales Bulletin was an effort to counteract the rating of a competitor’s product as number one. The first line encourages the distributors by saying “You know you are distributing the finest dishwasher made- — -KitchenAid! We’ll keep it that way for you, your dealers and the user.” The authors of the Bulletin continue by saying that, since a number of Hobart’s distributors have asked for their thoughts, they are attaching a comparison of KitchenAid and the top ranked device which will provide the distributors with more information. The Bulletin continues, “To actually see the difference, however, we suggest you buy or borrow one of these units for comparison at your next sales meeting.” The authors then voice the complaint that, since the Report states that the top ranked device does not dry so well as some other machines, they wonder why the top rating. Then the Report is criticized for ignoring seven specified factors and the authors of the Bulletin go on for a page to describe the virtues of Kitchen-Aid. In the course of that they say “Do you remember another magazine report in 1958 that rated KitchenAid so highly ? Even this latest report said: ‘KitchenAid judged above average in overall convenience of use; drying ability satisfactory; and relatively quiet.’ We don’t believe KitchenAid received the real rating it deserves but we do appreciate their ac-knowledgement, in part, of KitchenAid superiority.” The Bulletin next says, “Of course, we don’t want to be super-critical, but when a report is so inaccurate about a matter as simple as dishwasher finishes (they reported Kitchen-Aid ‘available in white but choice of colors and front panel materials on special order at extra cost’), we just wonder how they ever manage the much more complicated procedure of dishwasher testing! ” This part of the B ulletin ends with the exhortation, “The REAL ‘Report on KitchenAid’ comes from the world’s most critical and experienced dishwasher ex perts — hundreds of thousands of users— who say, without qualification, Kitchen-Aid is ‘The Finest Made’! So, go out and SELL it!”

*278 There is then the statement that the top ranker has two types of machine, one of which is the impeller type and is not highly rated in the Report, and the other pays tribute to the KitchenAid by using a revolving spray.

In what I have quoted there are five instances of “copying” from the Report: 1. The fact that the competitor was rated number one. 2. The statement that the top ranked device did not dry so well as some other machines. 3. The statement that KitchenAid was judged above average in overall convenience of use; drying ability satisfactory; and relatively quiet. 4. The statement that KitchenAid is available in white but choice of color and front panel materials on special orders at extra cost. 5. The statement that, of the top ranker’s two types of dishwasher, the impeller type is not highly rated in the Report.

The Bulletin goes on for three and a half pages of parallel columns comparing KitchenAid favorably with the top ranked product and then returns to plaintiff’s Report. The authors say “we have dug up some rather pertinent comparative excerpts from the report on other competitive dishwashers which you can use to advantage after you check”. Then follow fourteen unfavorable items about five classes of products, winding up with the statement, “There are others, too, you will find in the December report.”

In no instance did material which was copied into the Bulletin have any original literary form which would entitle it to copyright protection. Each item was a bald statement of fact which could hardly have been stated in any different fashion. I am faced with an attempt to clothe with copyright protection a compilation of facts. It cannot be gainsaid that that is one of the functions of the copyright system. A man who has tramped the streets and compiled a directory can, by copyrighting the product, obtain protection against a competitor who merely copies his work. He could not, however, obtain protection against someone who published an article upon the distribution of residents in relation to national origin and who used a compilation from the directory for locating the concentrations of persons bearing names characteristic of the various national origins. The directory cases are exceptions to the rule that facts are not a proper subject of' copyright. That exception does not go so fax*, however, as to prohibit non-competitive use of facts set forth in a copyrighted collection. See Kane v. Pennsylvania Broadcasting Co., D.C.D. Pa., 73 F.Supp. 307.

The items copied here are of three-kinds: 1. Facts used in criticism of the Report. 2. Facts favorable to defendants. 3. Facts unfavorable to competitors which are to be checked for use in selling defendants’ product.

Taking up the first of these, it must be admitted that one cannot, by copyrighting his unfavorable remarks about another, prevent that other from quoting those remarks and refuting them. Certainly defendants were entitled to say that plaintiff had given top rank to a competitor and to attack that conclusion by quoting other parts of plaintiff's statement that weakened it.

There is perhaps more doubt about the-second and third types, statements favorable to defendants and unfavorable to-competitors.

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189 F. Supp. 275, 125 U.S.P.Q. (BNA) 296, 1960 U.S. Dist. LEXIS 4870, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumers-union-of-united-states-inc-v-hobart-manufacturing-co-nysd-1960.