De Long v. De Long Hook & Eye Co.

35 N.Y.S. 509, 89 Hun 399, 96 N.Y. Sup. Ct. 399, 70 N.Y. St. Rep. 161
CourtNew York Supreme Court
DecidedOctober 18, 1895
StatusPublished
Cited by10 cases

This text of 35 N.Y.S. 509 (De Long v. De Long Hook & Eye Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Long v. De Long Hook & Eye Co., 35 N.Y.S. 509, 89 Hun 399, 96 N.Y. Sup. Ct. 399, 70 N.Y. St. Rep. 161 (N.Y. Super. Ct. 1895).

Opinion

PARKER, J.

The learned judge at special term decided that the defendant corporation should be restrained from using, in selling or placing upon the market, in connection with its goods, the name “De Long Hook & Eye Company,” upon the ground that the selection of such name was made with intent to identify the defendant with the plaintiffs’ business, to the injury of the latter, and its use is calculated to induce deception and confusion in the public mind as to the identity of the goods sold by the plaintiffs and defendant, respectively. An attentive examination of the evidence satisfies us that the determination of fact made at the special term as a basis for its decision is right. Undoubtedly, the phenomenal growth of plaintiffs’ business, and the large profits derived therefrom, suggested to one of the promoters of defendant corporation the feasibility of deriving a substantial benefit from the reputation of plaintiffs’ goods, known as “De Long’s Hooks and Eyes,” because of the fact that his name happened to be De Long. 'The facts which support this conclusion were so fully discussed in the opinion of the learned judge at special term that it is unnecessary for us to do more than present an outline of the more important features: The plaintiffs put upon the market, in the year 1889, a hook and eye which they called the “De Long Hook & Eye.” They were sewed upon cards upon the top of which was printed, “The De Long Hook & Eye.” With much advertising skill, and at considerable expense, the plaintiffs rapidly built up a large business. The sales, which were about $12,000 in 1890, reached nearly $450,000 in 1893. In the summer of 1892, Oscar A. Dé Long—a buyer for one of the departments of a large mercantile house, and who had, from time to time, purchased the plaintiffs’ [511]*511hooks and eyes, to be sold at retail by his employers—conceived the idea of making a change in the hook, which he calls an improvement, and in the latter part of that year he sought capital necessary to enable him to engage in the hook and eye business. He found persons willing to enter into the enterprise with him, and as a result a corporation was formed with the corporate name of “The De Long Hook & Eye Company.” Immediately thereafter the company commenced the manufacture and sale of hooks and eyes sewed upon cardboard in the same manner as the plaintiffs’, each of which bore the words, “De Long Hook & Eye Company, Makers, Hew York.” Later, he pasted over those words the words “Oscar A. De Long’s Improved,” pasting the words thus covered up on the back of the card, on a label. The effect intended and accomplished by the use of the words “De Long,” in connection with the style of tibe card on which the hooks and eyes were placed, was to secure some part, at least, of the benefit resulting from the extensive advertising which the plaintiffs had given to the name “De Long” in connection with their hook and eye business. It is not conceivable that it could have been otherwise, but we are not left to conjecture; for the plaintiffs, in support of their contention that the method adopted by the defendant was intended to, and did, deceive the public, produced witnesses who testified, in effect, that in response to requests for De Long hooks and eyes, made to dealers, they were given defendant’s hook and eye, when they desired the plaintiffs’.

Starting, then, with the determination of fact of the special term— which we approve—that the defendant deliberately attempted to make such use of the name of one of its incorporators as to enable it to secure a portion of the business which plaintiffs had built up, we have no difficulty in arriving at the legal conclusion reached by that court. That there were slight differences in the name, variations of coloring and size of cards and shape of hooks, and some difference in printed matter on the cards, must be conceded. “But similarity, not identity, is the usual recourse, where one party seeks to benefit himself by the good name of another.” Bradley, J., in Celluloid Manuf’g Co. v. Cellonite Manuf’g Co., 32 Fed. 94. The real test in such cases is whether the thing offered for sale is so arranged and exhibited that when it strikes the eye of an intending purchaser, possessed with ordinary intelligence and judgment, a false impression is likely to be produced,—that the goods of another are being offered for sale. And when that inquiry must be answered in the affirmative, as it has been in this case, “it is the province of equity to interfere for the protection of the purchasing public, as well as of the plaintiff, and for the suppression of unfair and dishonest competition.” Fischer v. Blank, 138 N. Y. 251, 33 N. E. 1040. This equity will do where the business practices complained of may not be of such a nature as to enable the party aggrieved to obtain redress under the restrictive rules of law, if, nevertheless, they are of such a character as to offend that law of fairness which should govern the acts of men, of which equity may take cognizance. This doctrine has frequently been asserted in other jurisdictions besides our own. In Coats v. Thread Co., 149 U. S., at page 566, 13 Sup. Ct., at page 966, the court said:

[512]*512“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 inclosing packages, in the extent of their advertising, and in the employment of agents, but they have no right to imitative devices to beguile the public into buying their wares under the impression they are buying those of their rivals.”

And in Lawrence Manuf’g Co. v. Tennessee Manuf’g Co., 138 U. S. 537, 11 Sup. Ct. 396, the court said:

“Undoubtedly, an unfair and fraudulent competition against the business of the plaintiff, conducted with the intent on the part of the defendant to avail itself of the reputation of the plaintiff to palm off its goods as plaintiff’s, would, in a proper ease, constitute ground for relief.”

It is the appellant’s contention that, notwithstanding the determination of the court that defendant’s conduct in the use of the words “De Long” was intended to deceive the public, and enable it to sell its goods as if they were plaintiffs’ goods, and therefore fraudulent, still it cannot be visited with the consequences which ordinarily flow from such action, because of the fact that one of its incorporators and stockholders bore the name of De Long. A man may use his own name, because he cannot truthfully do business under any other; and the law protects that right, ordinarily, even when such use is injurious to another, who has established a prior business of the same kind, and gained a reputation which goes with the name. . Even then the courts require that the name shall be honestly used, and will permit no deceit calculated to mislead the public into purchasing his goods under the belief that they are the manufacture of another. But that is not this case, for the promoters of this corporation could have given to it the name of either of the other incorporators, or any other name they liked, provided the designation was honestly made, and without injury to others. But the circumstances surrounding the creation of the defendant, and the name of it, satisfies us, as it did the trial court, that the selection of the name was not an honest one, but a part of the original scheme of Oscar A.

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Cite This Page — Counsel Stack

Bluebook (online)
35 N.Y.S. 509, 89 Hun 399, 96 N.Y. Sup. Ct. 399, 70 N.Y. St. Rep. 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-long-v-de-long-hook-eye-co-nysupct-1895.