Cooperativa de Cafeteros v. Colón Colón

91 P.R. 361
CourtSupreme Court of Puerto Rico
DecidedNovember 17, 1964
DocketNo. R-62-92
StatusPublished

This text of 91 P.R. 361 (Cooperativa de Cafeteros v. Colón Colón) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooperativa de Cafeteros v. Colón Colón, 91 P.R. 361 (prsupreme 1964).

Opinion

Mr. Justice Ramírez Bages

delivered the opinion of the Court.

The following are the questions to he considered in this case:

(1) Whether or not the registered trade-mark “Café Rico” is valid and effective.

(2) If it is not, whether or not it acquired a secondary meaning which justifies its protection against infringement by appellee F. Colón, competitor of appellant Cooperativa de Cafeteros de Puerto Rico, in the distribution and sale of roasted and ground coffee in the local market.

(3) If said mark actually acquired such meaning we must decide whether the label used by appellee in his coffee bag is so similar to that used by appellant in his, that it actually causes confusion in the market and to the consumers; or whether there exists the reasonable possibility for such confusion.

(4) In case such confusion has been caused, whether defendant’s action constitutes unfair competition to the detriment of appellant, which justifies its restraint and the awarding of damages that appellant may have suffered.

Appellant requests that appellee and others be enjoined from packing and trading, using the bags or containers they are using, similar to those used by appellant in its coffee business, or from selling coffee in such containers or [364]*364bags because the word “Rico” has been conspicuously displayed using a design and color scheme — red and black— substantially identical to those corresponding to appellant’s trade-mark and trade name, which the latter has been using for years and which have become well known to the public and identified with appellant’s product so that the presentation or exhibition of such containers causes confusion in the market and to the consumers in general due to the obvious resemblance with the bags in which appellant sells its coffee. It alleges that in this manner appellee profits by and unjustly enriches himself with the credit and good will acquired by appellant’s coffee, inducing the public, by means of unfair competition, to buy his product under the mistaken belief that it is plaintiff’s product, as well as disturbing and creating dangerous inconveniences to appellant in the conduct of. its business. Lastly, appellant alleges that for said reasons it has suffered damages amounting to $100,000, which payment it requests.

Appellee specifically denied the material facts of said complaint and as special defenses alleged, in synthesis, that the registration of the trade-mark “Rico” was illegal, since it is descriptive in nature; that the color scheme red and black is not and could not be part of said trade-mark, since it is an element of mere decorative function and it has been used by appellee prior to appellant and then by all the roasted coffee industry; that the words “Puro de Puerto Rico,” which appellant uses and claims as part of its trademark, was not included in its registration and it has used it only since a short time ago, and it cannot appropriate it for its exclusive use; that the use, by appellant, of the trademark “Rico” for its roasted and ground coffee and “Puerto Rico” for its raw coffee, and its advertising campaign in the papers, radio, and television using said marks and design in a context which illegally imparts to the trade-mark “Rico” a geographical meaning, gives the false and mali[365]*365cious impression to the public that the coffee produced and packed by appellant is the only pure Puerto Rican coffee in the market, which is not true; and thus tends to monopolize the use of the word “Rico” and the pure Puerto Rican roasted coffee industry, causing damage to the other producers, and specifically to appellee; that as a result the sales of coffee decreased during the years 1957-1958, which appellee has been realizing for 16 years in containers with the same color scheme, general appearance and coloring of the container of which appellant complains, in addition to the mark “Flor de Borinquen”; that in order to confront said competition in 1958 appellee modified the label on his container for the sole purpose of making more prominent the words “Café de Puerto Rico” and also made more prominent for easy perception that appellee is the producer of said coffee and the name of the place of production of said coffee; that subsequent to the commencement of this litigation appellant has changed the general appearance of its container eliminating a noticeable difference that existed between litigants’ containers, thus increasing any existing possibility of confusion; that in view of the foregoing appellant has not acted in good faith and with clean hands; that appellee’s intention was not to pass off his product as appellant’s and in order to make the difference between the two containers more noticeable the former has ordered that in his new containers the word “Puerto” be used instead of the abbreviation “Pto.” and that his trade-mark “Flor de Borinquen” be printed in larger letters and appellee’s name clearer and more perceptible. By way of counterclaim appel-lee requests that appellant be enjoined from continuing to perform said actions and causing the damages alleged, including those suffered as a result of and while a temporary restraining order requested by appellant against appellee was in effect; that the mark “Rico” be declared null and void, and its registration cancelled; and that appellant be [366]*366ordered to pay the amount of $100,000 which appellee claims for damages. Appellant denied the facts alleged in said counterclaim.

After numerous incidents and a lengthy trial in which the parties introduced extensive documentary and oral evidence, the trial court finally dismissed the complaint in this case and declared appellee’s voluntary dismissal of his counterclaim with prejudice to the injunction and the order of cancellation of the mark and the registration, and without prejudice as to the damages alleged, through a lengthy and painstaking decision in which it made the following essential findings of fact:

(1) That appellant acquired by purchase and was utilizing the trade-mark “Rico” which registration expired in 1944 without it being renewed.

(2) That in 1948 appellant registered the trade-mark “Rico” with a special design of said word, which registration is still in force and that is the trade-mark to which appellant refers.

(3) That the notices to the public for the registration of said trade-mark and its renewal were made in black ink on white paper without any reference to the color or color scheme of the container; but in the petition for registration appellant presented a facsimile of the special design in black ink on red paper, but the words “Puro de Puerto Rico” did not appear in the advertisements or the facsimiles of the label of said registered trade-mark, which expression appel-lee claims as his alleged slogan or trade name; nor was it proved how long appellant has been using the words “Puro de Puerto Rico” on said containers to which it has previously referred; that the words “Café Rico” on a white background on the covers of appellant’s bags and the phrases on the narrow side of said bag are characteristic of the container which [367]*367were not included in the aforesaid petition for registration of the trade-mark or in the aforementioned notices to the public.

(4) That since 1945 appellee has used red containers or bags and the trade-marks “Flor de Borinquen” and “Dilari,” which have not been registered; that since 1946 he has been using the color scheme of which appellant complains, except that the words “Puro de Puerto Rico”

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91 P.R. 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooperativa-de-cafeteros-v-colon-colon-prsupreme-1964.