Frazer v. Frazer Lubricator Co.

18 Ill. App. 450, 1886 Ill. App. LEXIS 12
CourtAppellate Court of Illinois
DecidedMarch 31, 1886
StatusPublished
Cited by2 cases

This text of 18 Ill. App. 450 (Frazer v. Frazer Lubricator Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frazer v. Frazer Lubricator Co., 18 Ill. App. 450, 1886 Ill. App. LEXIS 12 (Ill. Ct. App. 1886).

Opinion

Moran, J.

The main points of dispute between the parties to this suit arise on the construction to be given to the agreement of February 7, 1870, set out in full in the statement of facts. Consideration of the circumstances under which the agreement was made and an analysis of it in the light of these circumstances will aid in arriving at its true construction.

Frazer, at the time of making the agreement, was disposing of his entire interest in the business of manufacturing axle grease, a business in which he and his partners had been engaged for many years under different firm names. The axle-grease had been compounded according to a formula discovered by Frazer, and had been made known to the public under the name of “ Frazer’s Axle Grease,” “ Frazer’s Lubricator ” and “Frazer’s Grease.” Under such designations the product became favorably known, and the business which Frazer sold out was a growing and profitable one. Frazer’s patent did not cover the process of compounding the axle grease but did cover an improvement in the distillation of rosin oils, which oils formed an essential ingredient in the axle grease as manufactured.

The parties of the second part to the agreement were purchasing Frazer’s interest therein with the intention of continuing the manufacture of the grease in the same manner that it had theretofore been made, and selling their product under the name by which it had become known and under which it had gained a reputation for excellence.

Frazer’s patent had, at the time of the sale, four years to run, and if not renewed or extended all persons would have the right to distill rosin oils as therein described at the end of that time.

Looking now at the agreement we find that the parties contract with reference to different subjects, to wit, the letters patent, the use of Frazer’s name by the parties, of the second part, the extension or renewal of the patent, and the engagement of Frazer in the manufacture thereafter of the material secured by said letters patent. Bringing the portions of the agreement having reference to the patent together we find that Frazer sells and assigns his patent to the parties of the second part, and his right and title to any extensions or renewals thereof, and agrees to sign all writings that may be required by said second parties for obtaining renewals or extensions of said patents.

As to the use of Frazer’s name we find Frazer authorizes its use by the second parties and their assigns and successors exclusively so far as may be necessary, either as a trade mark or as indicating the material which had been manufactured under the letters patent and known as “ Frazer’s Axle Grease,” “ Frazer’s Lubricator ” or “ Frazer’s Grease”’ and agrees to confer that authority on no other person or corporation or association, and not to use or authorize the use of his name as a trademark or otherwise for the manufacture of said lubricator, axle grease or grease or any other product made under said letters patent. If it was in the power of Frazer to invest Packard and his associates by contract with the right to use his name in the manufacture and sale of the product or material mentioned and to exclude himself and, his associates from the use of his name in the manufacture or sale of such product or material, it. must be admitted that he has done so by the terms of the agreement. That it is legally competent for a person who lias carried, on a business under a trade name or manufactured and sold a particular article in. such manner as by the use of his name as a trade name or trade mark to cause the business or article to become known and established in favor under such name or trade mark, to sell or assign such trade name or trade mark when he sells the business or manufacture, and by such sale or assignment to conclude himself from the further use thereof, seems to be well established on authority. Kidd v. Johnson, 100 U. S. 617; Grow v. Seligman, 47 Mich. 607; Dixon Crucible Co. v. Guggenheim, 3 Am. L. T. 288.

It is contended by appellants’ counsel, however, that whatever right was given by the contract to Packard and his associates to use the name of Frazer, terminated at the expiration of the patent, which was by the same contract assigned to him. We do not so construe the contract. The right to distill rosin oils by the process covered by the patent would be free to all persons on the expiration of the patent, but the business of compounding axle grease, according to Frazer’s formula, and selling it in the market under the name of “ Frazer’s Axle Grease,” might continue as long as the parties engaged in it saw fit, and the longer it continued, if honestly conducted, the greater would be the reputation of the article and the more valuable the use of the trade name or trade mark'under which it was sold. The phrases “ manufactured under said letters patent,” and “ made under said letters patent,” are not to be read as fixing a time limit to the contract, but rather as identifying the material or particular kind of axle grease which was to be sold under the names “Frazer’s Axle Grease,” “ Frazer’s Lubricator,” and “ Frazer’s Grease.” Nor is there, as appellants contend, any element of concealment or imposition upon or lack of good faith with the public in appellees’ continuing to sell their product under the name of “Frazer’s Axle Grease.” It is shown by the record that the grease is compounded of the same ingredients and in the same manner and in all respects after the same formulas as used by Frazer and his different firms to which appellee is successor. Mo suggestion is made that appellee has attempted to palm off a cheaper or an inferior article, or an article that is any other than the same that was sold by Frazer and his associates under the name of “ Frazer’s Axle Grease.” The name indicates the origin of the article, and identifies it to the public. A name, though originally the name of the first maker, may in time become a mere trade mark or sign of quality and cease to denote or be current as indicating that any particular person is the maker. * * * * * In such cases the name is accepted in the market either as a brand of quality or it becomes the denomination of the commodity itself, and is no longer a representation that the article is the manufacture of any particular person. Hall v. Barrows, 4 De G., J. & S., 150. There is no representation that Frazer’s Axle Grease is now manufactured by Frazer. On the contrary it is truthfully stated on the label used, that it is manufactured by the Frazer Lubricator Company. The doctrine invoked by counsel and applied in Manhattan Med. Co. v. Wood, 108 U. S. 218, has no pertinency to the facts of this case.

The contract giving to appellee the use of Frazer’s name as a trade'mark in the sale of the axle grease, and agreeing not to use or permit others to use said name as a trade mark or otherwise in the manufacture of the article, is in no sense against public policy as being in restraint of trade. The portion of the contract now under consideration, in no way prevents him from engaging in the manufacture of axle grease, or in the manufacture even of the particular kind of axle grease made by appellee.

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Cite This Page — Counsel Stack

Bluebook (online)
18 Ill. App. 450, 1886 Ill. App. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frazer-v-frazer-lubricator-co-illappct-1886.