Flavor Corporation of America v. Kemin Industries, Inc., and Rolland W. Nelson

503 F.2d 729, 183 U.S.P.Q. (BNA) 401, 1974 U.S. App. LEXIS 6534
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 11, 1974
Docket74-1471
StatusPublished
Cited by16 cases

This text of 503 F.2d 729 (Flavor Corporation of America v. Kemin Industries, Inc., and Rolland W. Nelson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flavor Corporation of America v. Kemin Industries, Inc., and Rolland W. Nelson, 503 F.2d 729, 183 U.S.P.Q. (BNA) 401, 1974 U.S. App. LEXIS 6534 (8th Cir. 1974).

Opinion

WEBSTER, Circuit Judge.

In this appeal, Flavor Corporation of America (FCA) challenges an order of the District Court which FCA contends contravenes a prior judgment and injunction of the same court which, upon appeal, this court approved and affirmed. 1

Briefly summarized, the holding of the District Court in the original action was as follows: (1) the registered trademark “PESTLUR” held by FCA was a descriptive mark and, since not incontestable, was entitled to protection *731 only where it had acquired a secondary meaning; (2) as of the date of the injunction, such secondary meaning had been established only in the states of Georgia and Florida; (3) the common law trademark “LURE” held by Kemin Industries, Inc. (Kemin) had been adopted in good faith and without prior knowledge of FCA’s “PESTLUR” and had acquired superior common law trademark rights in ten other states prior to the registration of “PEST-LUR”; (4) the Lanham Act controlled in the remaining 38 states; 2 and (5) the marks “PESTLUR” and “LURE” were so confusingly similar as to cause a likelihood of confusion. 3 Accordingly, the District Court enjoined Kemin “from competing with plaintiff, Flavor Corporation of America under its ‘LUR’ [sic] trade marks in the states of Georgia and Florida.” Further injunctive relief was denied.

Kemin sought, pursuant to Fed.R.Civ. P. 59, to have the order amended to permit Kemin to continue advertising in national publications. The District Court denied the motion stating its belief that such an amendment would “severely dilute the original judgment.” Kemin raised this issue on its cross-appeal but never sought anything less than an unlimited right to advertise products using the “LURE” mark in national publications, whether or not such publications reached the states of Georgia and Florida. We affirmed the District Court. Flavor Corp. of America v. Kem-in Industries, Inc., 493 F.2d 275 (8th Cir. 1974). In dealing with the issue of national advertising, we said:

The trial court properly considered the advertising factor and its conclusion that ‘Pestlur’ had not acquired a secondary meaning in the 38 states controlled by the Lanham Act is not clearly erroneous. Kemin, on the other hand, must accommodate its own advertising program to the District Court’s injunction, in order to avoid further infringement in Florida and Georgia. Modern marketing techniques permit such accommodation in most instances; in others Kemin must suffer the burden resulting from its infringement.

493 F.2d at 284.

The Present Appeal

Subsequent to the original appeal, Kemin sought leave in the District Court to use its mark in connection with national advertising with a notation that “These flavors available only under the trademark ‘TREET’ in Georgia and Florida.” The District Court refused this request, but entered an order granting Kemin permission to advertise its products in national publications, providing the marks were accompanied by an asterisk and a notation in equal type size that “This product is not available in Georgia and Florida.” It is from this order that FCA now appeals.

FCA contends that the effect of the District Court’s order is either (1) to modify without the consent of this court an injunction in effect sealed by our affirmance or (2) to render an advisory opinion, contrary to law. We reject these contentions and affirm the order of the District Court.

The original order of the District Court enjoined Kemin only from “competing” with FCA under its “LURE” marks in the ' states of Georgia and Florida. Kemin was therefore free to advertise in all of the remaining 48 states, at least until FCA’s marks acquired a secondary meaning in one of the 38 states governed by the Lanham Act. The injunction posed a very practical problem for Kemin in planning its *732 national advertising program. On the one hand, it had been denied permission to have national advertising excluded from the injunction against “competing.” On the other hand, the injunction did not expressly preclude advertising which carried a satisfactory disclaimer as to the two states covered by the injunction. Kemin therefore sought and obtained from the District Court a clarification of its ruling, rather than risking a contempt citation should its own interpretation prove to be erroneous.

We cannot agree that anything in our opinion precluded the relief sought and obtained in the District Court. We held that Kemin must accommodate its advertising program to the injunction and that “[mjodern marketing techniques permit such accommodation in most instances. . . . ” Thus, while we upheld the trial court’s refusal to exclude all national advertising from its injunction, we said nothing to preclude the District Court from considering the intended scope of its own injunction. Reliance upon Rhodes v. Houston, 258 F.Supp. 546 (D.Neb.1966), aff’d, 418 F.2d 1309 (8th Cir. 1969), cert. denied, 397 U.S. 1049, 90 S.Ct. 1382, 25 L.Ed.2d 662 (1970), is therefore misplaced.

It is. well established that injunctions do not give rise to vested rights; they enforce only rights existing under current law and conditions. United States v. Swift & Co., 286 U.S. 106, 52 S.Ct. 460, 76 L.Ed. 999 (1932). While a decree may not normally be changed in the interests of the defendants if the purposes of the litigation as incorporated in the decree have not been fully achieved, unforeseen hardships to the defendants may be considered, especially where there are (1) changes in operative facts, (2) changes in the relevant decisional law, and (3) changes in any applicable statutory law. See 11 C. Wright & A. Miller, Federal Practice and Procedure § 2961, at 604-05 (1973); Developments in the Law — Injunctions, 78 Harv.L.Rev. 994,1080-86 (1965).

We do not think, however, that the action of the District Court was a modification of the decree, as that term is traditionally understood. More accurately, it was a clarification of the intended reach of a briefly worded decree enjoining Kemin “from competing with plaintiff, Flavor Corporation of America under its ‘LUR’ [sic] trade marks in the states of Georgia and Florida.” While the District Court, in its separate order declined to exclude all national advertising from the reach of its injunction, it neither was asked to, nor did it, deal with the type of controlled use of national advertising submitted to it following our affirmance. It is common knowledge that advertisements in national publications are not readily susceptible of modifications to permit variations in format in the respective states.

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503 F.2d 729, 183 U.S.P.Q. (BNA) 401, 1974 U.S. App. LEXIS 6534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flavor-corporation-of-america-v-kemin-industries-inc-and-rolland-w-ca8-1974.