Durable Toy & Novelty Corp. v. J. Chein & Co.

47 F. Supp. 167, 54 U.S.P.Q. (BNA) 363, 1942 U.S. Dist. LEXIS 2245
CourtDistrict Court, S.D. New York
DecidedMay 27, 1942
StatusPublished
Cited by1 cases

This text of 47 F. Supp. 167 (Durable Toy & Novelty Corp. v. J. Chein & 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
Durable Toy & Novelty Corp. v. J. Chein & Co., 47 F. Supp. 167, 54 U.S.P.Q. (BNA) 363, 1942 U.S. Dist. LEXIS 2245 (S.D.N.Y. 1942).

Opinion

CONGER, District Judge.

This is a suit for infringement of registered trade-marks. The plaintiff and the defendants are corporations of the State of New York and jurisdiction is asserted under the provisions of the trade-mark statute, 28 U.S.C.A. § 41(7).

The predecessor of the plaintiff, on May 18, 1909, registered in the United States Patent Office, the trade-mark “Uncle Sam’s”, No. 73,778, as a trade-mark for toy banks. This trade-mark registration was effective for twenty years from the date of issue.

In 1927 an application for a trade-mark was made by the predecessor of plaintiff comprising a black panel upon which appeared, in silhouette, the picture of a cash register with an operator standing in front of it and with the words “Uncle Sam’s” in the upper part of the panel. This application matured into Registration No. 256,-533 as of May 21, 1929. In this registration as issued it is stated: “Applicant is now the sole owner of the trade-mark ‘Uncle Sam’ registered May 10, 1909, No. 73,778.”

Plaintiff was organized in 1936 and took over the business including all assets, traldemarks and good will appertaining to such trade-marks as well as the registration thereof.

On June 24, 1941, plaintiff obtained a third registration, No. 388,453, on the words “Uncle Sam’s” on a black panel with the picture of Uncle Sam thereon. This registration stated in part: “The trademark consisting of the words ‘Uncle Sam’s’, has been continuously used in the business of applicant and of applicant’s predecessor, the Durable Toy & Novelty Company, since 1907, and the. trade-mark has been used in the form shown in the accompanying drawing since April, 1940.” The first registration has of course expired, but the latter two are still in effect.

A large part, if not the major part of plaintiff’s business is the manufacture and sale of toy banks. Plaintiff’s banks sell at retail from $.59 to $2.50 and carry a lifetime guarantee.

Defendant, J. Chein & Co., is a large manufacturer of toys; toys of the grade which are commonly sold in the five and ten cent stores. Sometime during the year 1941, defendant Chein & Co. commenced the manufacture and sale of a tin bank shaped as a hat and colored in red, white and blue. The hat was shaped as the one we attribute to Uncle Sam. On the top of the bank there appeared in prominent letters “Uncle Sam Bank”. This tin bank was made to sell at retail for ten cents.

Defendant F. W. Woolworth Co. on or about July 7, 1941, and at other times did sell in its stores the bank so manufactured by defendant Chein & Co.

It is the plaintiff’s contention that the manufacture and sale of this bank by the defendants constitutes an infringement of their trade-marks.

The jurisdiction of this court is made out under Section 41(7) Title 28, U.S.C.A. for there are two valid trademarks owned by the plaintiff on the words “Uncle Sam” as applied to toy banks.

[169]*169On the trial it was proved to my satisfaction that banks carrying the words “Uncle Sam’s” as used in connection with toy banks had come to mean the bank of this plaintiff. That commencing in 1907 plaintiff and its predecessor had been selling to the trade these banks and had been using in connection therewith as part of the trade-mark the above words “Uncle Sam” or “Uncle Sam’s”. This has been continuous from 1907 down to the present.

By constant and continuous usage plaintiff’s trade-marks have acquired a secondary meaning; the name “Uncle Sam” or “Uncle Sam’s”, as applied to coin banks means the coin bank made by the plaintiff.

There was abundant proof that the defendant Chein & Co. used the words “Uncle Sam Bank” on its toy banks. The fact that defendant Chein & Co. has not used every aspect of the trade-mark of the plaintiff, the silhouette or figure of Uncle Sam, does not mean that there is not an infringement. On the contrary it is well settled that the whole trade-mark need not be taken. The defendant Chein & Co. has taken all of the words contained in plaintiff’s trade-marks.

The testimony of experts in the toy business produced by the plaintiff shows that the name “Uncle Sam” on toy banks had become synonymous with the plaintiff in the toy industry and that of their own knowledge they knew that the public in purchasing toy banks often asked for the bank of the plaintiff as an “Uncle Sam bank”.

The plaintiff has the right to be free from the' competitive use of this name. The plaintiff has extensively advertised its banks as “Uncle Sam” banks. A total of some three million of these Uncle Sam banks have been sold by Durable and its predecessor since the business was organized in 1907.

When defendant Chein & Co. adopted their trade-mark they knew of plaintiff’s trade-mark. Samuel Hoffman, Secretary and Treasurer of the defendant Chein & Co., admitted knowledge of the plaintiff’s use of the mark and that he was familiar with the banks of the plaintiff as the toy industry in general appeared to be. Hoffman testified as follows:

“A. Well, I knew the trade-mark probably like anyone else did.
“Q. In fact, you had known of the trade-mark for about 20 years, hadn’t you? A. I believe I did.
“Q. And you knew that the plaintiff was applying this trade-mark to coin banks? A. Yes.”

That the bank of the defendant with the words “Uncle Sam” prominently displayed thereon would deceive the public is evident; the marks used are identical; the goods of the plaintiff and of the defendant Chein & Co., upon which the mark is used, are coin banks.

An infringer cannot avoid the charge of infringement by taking a portion of a trademark, providing the infringer takes enough to deceive the public. Saxlehner v. Eisner & Mendelson Company, 179 U.S. 19, 21 S. Ct. 7, 45 L.Ed. 60. In the present case the wording “Uncle Sam” constitutes all the wording in both of plaintiff’s latter registrations.

The bank of the defendant Chein & Co. is a cheap toy. The bank of the plaintiff carried a lifetime guarantee and there was evidence that they made good on this guarantee where a bank was found to be defective. Plaintiff’s trade-mark on its banks marked them as plaintiff’s product; a sign to the public of the origin of the banks to which it was attached and an assurance that they were the genuine articles of the original producer. It was of great value to plaintiff to prevent the substitution and sale of an inferior and different article for its product. See Manufacturing Co. v. Trainer, 101 U.S. 51, 25 L.Ed. 993.

It was contended at the trial that the words “Uncle Sam” cannot be the subject of trade-mark. The basis for this is the assertion that the words are commonly recognized to be the insignia of the Government and people of the United States. No proof was offered that it was the official insignia of the United States. The plaintiff offered in evidence copies- of letters over the signature of Secretary of State Cordell Hull to prove that it was not. These were objected to but were taken subject to later ruling. I find that these letters are not admissible. They are not official documents or copies of official documents.

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Bluebook (online)
47 F. Supp. 167, 54 U.S.P.Q. (BNA) 363, 1942 U.S. Dist. LEXIS 2245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durable-toy-novelty-corp-v-j-chein-co-nysd-1942.