Expoconsul International, Inc. v. A/E Systems, Inc.

755 F. Supp. 1237, 21 U.S.P.Q. 2d (BNA) 1601, 1991 U.S. Dist. LEXIS 1200, 1991 WL 15118
CourtDistrict Court, S.D. New York
DecidedFebruary 1, 1991
Docket88 Civ. 0877 (PNL)
StatusPublished
Cited by6 cases

This text of 755 F. Supp. 1237 (Expoconsul International, Inc. v. A/E Systems, Inc.) 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
Expoconsul International, Inc. v. A/E Systems, Inc., 755 F. Supp. 1237, 21 U.S.P.Q. 2d (BNA) 1601, 1991 U.S. Dist. LEXIS 1200, 1991 WL 15118 (S.D.N.Y. 1991).

Opinion

OPINION AND ORDER

LEVAL, District Judge.

This is a trademark dispute over the use of the symbol AEC. The defendant, A/E Systems, Inc. (hereinafter “Systems”), the promoter of a trade show exhibiting design systems for construction, employs the registered trademark A/E/C Systems as the name of its show. Plaintiff, Expoconsul International, Inc. (hereinafter “Expocon-sul”), subsequently promoted a similar trade show which it named AEC Expo. Plaintiff seeks declaratory relief that its use of AEC Expo does not infringe trademark rights of defendant. The complaint also seeks various other types of relief under federal trademark law, antitrust law and New York common law, including cancellation of plaintiffs registration, and damages. Defendant counterclaims alleging infringement of its trademark.

Expoconsul does not deny the similarity between the two names, but contends that Systems is seeking to enforce trademark rights in a generic designator which under law is inherently unprotectible. Expocon-sul moves for partial summary judgment establishing that its use of the name AEC Expo for its trade show does not infringe rights of the defendant.

It is fundamental to the trademark law that not all names are susceptible to protection. Because it serves the public interest *1239 to enable consumers to distinguish between the goods and services of competing suppliers, the trademark law establishes a legally protected monopoly on the use of a name or mark in trade. Exclusive use of a name by one provider in trade enables the consumer public to choose the goods or services of providers who have been satisfactory in the past (or of whom they have heard good reports) while avoiding those who have proved unsatisfactory. The public interest would be disserved, however, if a single competitor were empowered to prevent all others from using the word that designates the good or service being offered. If, for example, only a single electrician were permitted to use the designation “electrician,” the ability of the public to distinguish between the reputations of competing electricians would be impaired. “In [such a] case,” as Judge Friendly explained, “any claim to an exclusive right must be denied since this in effect would confer a monopoly not only of the mark but of the product by rendering a competitor unable effectively to name what it was endeavoring to sell.” Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 10 (2d Cir.1976); see CES Publishing Corp. v. St. Regis Publications, Inc., 531 F.2d 11 (2d Cir.1975); see also King-Seeley Thermos Co. v. Aladdin Indus., Inc., 321 F.2d 577 (2d Cir.1963); DuPont Cellophane Co. v. Waxed Prods. Co., 85 F.2d 75 (2d Cir.), cert. denied, 299 U.S. 601, 57 5.Ct. 194, 81 L.Ed. 443 (1936); Bayer Co. v. United Drug Co., 272 F. 505 (S.D.N.Y.1921).

The trademark law thus denies protection and allows universal access to names that designate the goods or services offered. The law divides trade names into four categories. See Abercrombie & Fitch, 537 F.2d at 9-11. The more distinctive the name, the more protection it receives. On the other hand, the closer the name comes to defining or describing the type or class of the goods, services, or business involved, the less protection it receives. (i) Names which are generic — those which designate the category of goods, services or business — are incapable of protection. All competitors may use them. No one may exclude others from using such designators. See Abercrombie & Fitch, 537 F.2d at 9; CES Publishing, 531 F.2d at 13-15. (ii) For similar reasons, descriptive marks are disfavored. Presumptively, the law disallows the grant of exclusive rights in descriptive marks; but, in order to avoid confusion and unfairness to users who over time have established a reputation in a descriptive mark, the law compromises, recognizing rights in descriptive marks if the user shows that his use of the mark over time has given it a “secondary mean ing” — i.e., the public has come to associate the mark with the user. Abercrombie & Fitch, 537 F.2d at 10. (iii) Marks which are merely suggestive, rather than descriptive of what is offered, are accorded protection, but not the strongest protection, (iv) The strongest protection is reserved for marks which are arbitrary or fanciful — i.e., those which have no logical connection with the goods or services they cover, serving only as the name of the supplier. See Abercrombie & Fitch, 537 F.2d at 9-11.

The only similarity between the names used by Expoconsul and Systems lies in the fact that both use the letters AEC. Thus there can be no liability of plaintiff to defendant unless based on plaintiffs use of the letters AEC. Expo-consul has conclusively established that the letters AEC are a term commonly used in the industry to designate the fields of architecture, engineering and construction (or contracting). 1 It has shown that the defendant’s use of A/E/C in its name A/E/C Systems designates systems for use in architecture, engineering and construction. This is a generic designation identifying the subject of defendant’s trade show. Plaintiff Expoconsul is using the term AEC for the same purpose. The defendant Systems cannot acquire exclusive rights under the trademark laws to exclude plaintiff and *1240 others from using such a designator in its generic sense.

General Statement of Fact and Conclusions of Law

The facts are largely undisputed. In 1979, the corporate predecessor of the defendant Systems (then called MRH Associates, Inc.) organized a trade show under the name Systems. This trade show was designed for architects and engineers and focussed on computer systems for use in architecture and engineering. The defendant chose the name Systems to convey the fact that its show was a show of systems.

In 1982, the defendant began publishing a related newsletter entitled A/E Systems Report and changed the name of its show to A/E Systems. The newsletter was directed to architects and engineers, concentrating, like the trade show, on systems for use in those professions. The defendant chose to use the name A/E for the trade show and for the newsletter precisely because that symbol designates architects and engineers, who were the nucleus of the clientele of the newsletter and the trade fair. The name A/E Systems was chosen to convey the fact that the show offered systems for architecture and engineering.

In 1985, the defendant changed the name of the trade fair to A/E/C Systems. The term AEC had been in common use for many years in the industry as designating the fields of architecture, engineering and construction (or contracting).

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Bluebook (online)
755 F. Supp. 1237, 21 U.S.P.Q. 2d (BNA) 1601, 1991 U.S. Dist. LEXIS 1200, 1991 WL 15118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/expoconsul-international-inc-v-ae-systems-inc-nysd-1991.