Fruit Growers Co-op. v. M. W. Miller & Co.

73 F. Supp. 90, 1947 U.S. Dist. LEXIS 2257
CourtDistrict Court, E.D. Wisconsin
DecidedAugust 21, 1947
DocketCivil Action No. 3325
StatusPublished
Cited by1 cases

This text of 73 F. Supp. 90 (Fruit Growers Co-op. v. M. W. Miller & Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fruit Growers Co-op. v. M. W. Miller & Co., 73 F. Supp. 90, 1947 U.S. Dist. LEXIS 2257 (E.D. Wis. 1947).

Opinion

DUFFY, District Judge.

This is an action for infringement of the trade-mark “Sturgeon Bay” registered under the Act of March 19, 1920, 15 U.S.C.A. § 121 et seq., and for unfair competition. Plaintiff is a cooperative association engaged principally in the business of packing, canning, and handling red sour cherries, and does business in various areas throughout the United States. Defendant M. W. Miller is the president, manager, principal stockholder, and guiding spirit of the two corporate defendants. The plaintiff and all defendants have their places of business at Sturgeon Bay, Door County, Wisconsin. Sturgeon Bay is the county seat and principal city in Door County.

Reynolds Preserving Company of Sturgeon Bay canned cherries in the year 1917, and sold same under a “Sturgeon Bay” label. Late in 1917 Reynolds sold its canning properties, including its rights to the name “Sturgeon Bay,” to a predecessor of plaintiff. In 1918-1925, Reynolds delivered its cherries to plaintiff’s predecessor. In, 1925, Reynolds again went into the cherry canning business and thereafter used the name “Sturgeon Bay” and “Sturgeon Bay Cherries” on its labels, but the name “Sturgeon Bay” was always in a subordinate position and was not used as “Sturgeon Bay Brand.”

From 1918 to 1925, plaintiff was the only packer using the name “Sturgeon Bay” on cherries. By 1923, in several areas, it had established a reputation for a quality product. From 1918 to 1930, plaintiff also used the name “Sturgeon Bay” on the highest quality crated fresh cherries. Throughout the years plaintiff has used, and still uses, the mark “Sturgeon Bay Brand” on from 65% to 85% of its canned and frozen cherries. During the past ten years, plaintiff’s sales of canned cherries alone, under the “Sturgeon Bay Brand,” has exceeded $4,450,000. In 1933, plaintiff took qver the assets of Door County Fruit Growers Union, as well as Fruit Growers Canning Company, and among other assets was the trade-mark registration mentioned.

Defendant (meaning M. W. Miller) started selling fresh crated cherries in 1932, and in 1933 he acted as sales agent for Wisconsin Cherry Growers, of which plaintiff was a member. While defendant sold these cherries as “Sturgeon Bay” cherries, they were sold under “Wisconsin” and “Buck Shot” brand labels. In the contract between Miller and Wisconsin Cherry Growers, the phrase “Sturgeon Bay Cherries” was not used, but the phrase “Door County Area” was used. From 1934 to 1941 defendant sold fresh cherries and advertised them as “Sturgeon Bay” cherries. From 1935 to 1940 defendant purchased cherries from plaintiff in No. 10 cans and, to some of these, labels were applied bearing the words “Sturgeon Bay” in large letters, and at the bottom of the label, “Packed for M. W. Miller.”

In 1941, defendant started selling pitted sugared cherries and although he advertised some of same as “Sturgeon Bay” cherries, such fact did not come to the attention of the plaintiff. In 1942, plaintiff first became aware of the use by defendant of the name “Sturgeon Bay Brand” on some canned black raspberries. Plaintiff promptly informed defendant that “Sturgeon Bay Brand” was plaintiff’s trade-mark and asked assurance that the defendant would not again use the name on food products.

From the testimony it appears that in the minds of most of the consuming public who purchase canned or fresh cherries, “Sturgeon Bay” means an area in Wisconsin where a fine grade of cherry is grown. Others refer to this same area as “Door County.” To some buyers of fruit in large quantities, the name “Sturgeon Bay” connected with cherries means the product of the plaintiff, but the average housewife and [93]*93consumer does not know the names of any of the processors of cherries in the Sturgeon Bay or Door County area: Many consumers do have in mind that cherries from that area have an excellent reputation.

Defendants raise the question of jurisdiction and claim that there is no showing that the individual defendant Miller was engaged in interstate commerce. There is no dispute but that the plaintiff and the defendant Sturgeon Bay Distributing Company were engaged in interstate commerce. Furthermore, defendant Miller so completely dominated the corporate defendants that it is impossible to segregate his acts as an individual from the acts of the two corporate defendants which he owned, managed and directed. Therefore, there is a sufficient showing that the defendants were engaged in interstate commerce. The registration of the trademark under the 1920 Act gives jurisdiction of the action regardless of diversity of citizenship or amount in controversy, both as to infringement and unfair competition. Armstrong Paint & Varnish Works v. NuEnamel Corp., 305 U.S. 315, 59 S.Ct. 191, 83 L.Ed. 195.

Considering now the question of infringement of trade-mark, it is fundamental that no additional rights to the trade-mark are acquired by registration under the 1920 Act. Therefore we must consider whether plaintiff may adopt a geographical name which is descriptive of the place where the cherries are produced and thereby have a monopoly on the use of that name in connection with the sale of cherries. Although cherries are not pruduced within the city limits of Sturgeon Bay, yet in the minds of the general public Sturgeon Bay encompasses the surrounding area where the cherry orchards are located.

In Elgin National Watch Co. v. Illinois Watch Case Co., 179 U.S. 665, 673, 21 S.Ct. 270, 273, 45 L.Ed. 365, the court said: “And the general rule is thoroughly established, that words that do not in and of themselves indicate anything in the nature of origin, manufacture, or ownership, but are merely descriptive of the place where an article is manufactured or produced, cannot be monopolized as a trademark. * * * Obviously, to hold that appellant had obtained tile exclusive right to use the name ‘Elgin’ would be to disregard the doctrine characterized by Mr. Justice Strong in Delaware & H. Canal Co. v. Clark [13 Wall. 311, 20 L.Ed. 581], as sound doctrine, ‘that no one can apply the name of a district of country to a well-known article of commerce, and obtain thereby such an exclusive right to the application as to prevent others inhabiting the district or dealing in similar articles coming from the district from truthfully using the same designation.’ ”

In Candee v. Deere, 54 Ill. 439, 5 Am. Rep. 125, the court held that there could be no trade-mark in the words “Moline plows” as Moline was the name of a city in which the plows were made. In the early Wisconsin case of Dunbar v. Glenn, 42 Wis. 118, at page 137, 24 Am.Rep. 395, the court said,: “Where the trade-mark, in its original signification or by association, distinctively points to the origin or ownership of the article to which it is applied, it will be protected. But where it is a generic or geographical name, designating a city or district of country, or is merely descriptive of the article manufactured, and can be employed with truth by other manufacturers, it is not entitled to legal protection as a trade-mark.”

Of course, geographical names may acquire a secondary signification indicative not only of the place of production but the name of the producer and the excellence of the thing produced. French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427, 24 S.Ct. 145, 48 L.Ed. 247.

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Bluebook (online)
73 F. Supp. 90, 1947 U.S. Dist. LEXIS 2257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fruit-growers-co-op-v-m-w-miller-co-wied-1947.