German-American Button Co. v. A. Heymsfeld, Inc.

170 A.D. 416, 156 N.Y.S. 223, 170 A.D. 410, 1915 N.Y. App. Div. LEXIS 9705
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 10, 1915
StatusPublished
Cited by5 cases

This text of 170 A.D. 416 (German-American Button Co. v. A. Heymsfeld, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
German-American Button Co. v. A. Heymsfeld, Inc., 170 A.D. 416, 156 N.Y.S. 223, 170 A.D. 410, 1915 N.Y. App. Div. LEXIS 9705 (N.Y. Ct. App. 1915).

Opinion

Scott, J.:

This action is for an injunction to restrain the defendants from using the trade name of “German-American Hand Crochet Button Works” upon the ground that such use constitutes unfair competition.

Plaintiff, the German-American Button Company, is a [418]*418domestic corporation having its principal place of business at Rochester, in this State, and also maintaining offices and salesrooms in the city of New York. It employs a number of salesmen and carries on an extensive business both in the United States and Canada. It began business under its present name in the year 1893 and has continued to do business under that name ever since. Originally plaintiff manufactured but few types of buttons, but by degrees its output has expanded so that it now manufactures and sells ivory, celluloid, bone, glass and pearl buttons, as well as buttons covered with knitted silk or other material. It appears that plaintiff’s product has become known to the trade as " German-American ” buttons.

In the year 1912 Nicholas A. Heymsfeld and two others organized the corporation of A. Heymsfeld, Inc., with a capital of $1,000, for the purpose of doing a general merchandise business, including specifically the buying, selling, manufacturing and selling as agent or factor buttons, button material and raw products for the manufacture of buttons of any and all kinds and descriptions. An important, if not the. principal business of this corporation, has thus far been selling buttons manufactured by Hedwig Heymsfeld, wife of Adolph Heymsfeld, who, on November 1, 1912, filed with the county clerk a certificate that she had adopted the trade name of ‘‘ German-American Hand Crochet Button Works.” The corporation of A. Heymsfeld, Inc., advertises itself as “Manufacturers and importers of covered and crochet buttons ” and as “sole selling agents for The German-American Hand Crochet Button Works.”

The plaintiff’s claim is that by long-continued use it had established a prior and superior right to the use of the name “ German-American ” as used with reference to the manufacture and sale of buttons, and that the adoption of those words as part of the trade name of a concern engaged in a like business was calculated to produce confusion and consequent-loss to plaintiff.

While it is true that two precisely similar unfair competition cases are seldom to be found, there are certain well-established general principles that are applicable to all. The trade name [419]*419used by defendants and the use of which plaintiff seeks to enjoin is a purely arbitrary one selected by defendants themselves. If it had been attempted to create a corporation under that name, it is very doubtful if it could have been legally done, for it is provided in the General Corporation Law (Consol. Laws, chap. 23 [Laws of 1909, chap. 28], § 6, as amd. by Laws of 1911, chap. 638; Laws of 1912, chap. 2, and Laws of 1913, chap. 24) that “No certificate of incorporation of a proposed corporation having the same name as a corporation authorized to do business under the laws of this State, or a name so nearly resembling it as to be calculated to deceive, shall be filed or recorded in any office for the purpose of effecting its incorporation, or of authorizing it to do business in this State.”

The prohibition thus enacted by statute as to corporations is equally applicable under general and well-recognized principles to the adoption of a trade name by an individual or copartnership. As was said by the Court of Appeals in Higgins Company v. Higgins Soap Company (144 N. Y. 462): “It is well settled that an exclusive right may be acquired in the name in which a business has been carried on, whether the name of a partnership or of an individuals and it will be protected against infringement by another who assumes it for the purposes of deception, or even when innocently used without right to the detriment of another. * * * In respect to corporate names, the same rule applies as to the names of firms or individuals, and an injunction lies to restrain the simulation and use by one corporation of the name of a prior corporation which tends to create confusion and to enable the later corporation to obtain, by reason of the similarity of names, the business of the prior one.”

And in Celluloid Mfg. Co. v. Cellonite Mfg. Co. (32 Fed. Rep. 94, 97) it was said: “ The defendant’s name was of its own choosing, and, if an unlawful imitation of the complainant’s, is subject to the same rules of law as if it were the name of an unincorporated firm or company. It is not identical with the complainant’s name. That would be too gross an invasion of the complainant’s right. Similarity, not identity, is the usual recourse when one party seeks to benefit himself by the good name of another. * * * We may say, generally, that a [420]*420similarity which would be likely to deceive or mislead an ordinary unsuspecting customer is obnoxious to the law.”

The fact that the distinctive and similar features of both plaintiff’s and defendants’ names consist of a combination of geographical names does not deprive the plaintiff of the right to protection. This feature was present in Kayser & Co. v. Italian Silk Underwear Co. (160 App. Div. 607) and in Fuller, v. Huff (104 Fed. Rep. 141, 143). In the latter case the United States Circuit Court of Appeals for the Southern District of New York said: “The subject of the unlawful use by competitors of the name under which a rival has previously presented himself to the public and has gained a business reputation, although the name is not strictly a trade-mark, and is either geographical or descriptive of quality, has been frequently of late before the courts, which have demanded a high order of commercial integrity, and have frowned upon all filching attempts to obtain the reputation of another.”

So also it was said in British-American Tobacco Co. v. British-American Cigar Stores Co. (211 Fed. Rep. 933, 935): “The words ' British-American ’ may be geographical or political, but in this controversy they have acquired, a secondary meaning; they have been irrevocably associated with a large tobacco corporation for a decade, and any other tobacco company with the same name is sure to be associated in the public mind with the elder company, and is sure to reap such benefits as accrue from such association.

“If there were any valid reason for adopting the name, or if the business were other than tobacco, there might be some reason for the defendant’s action, but no honest reason can be suggested for appropriating the name of the old and long-established company. In the absence of any plausible explanation we have a right to assume that the reason was to secure the advantages which would result from a supposed connection with the well known company.”

We think that there can be no doubt that the similarity of the name arbitrarily selected by defendants to that long used by plaintiff is calculated to produce confusion in the trade, and to make it possible, at least, that defendants’ goods may be sold to persons who believe that they are buying goods from plaintiff.

[421]*421It seems probable that defendants’ name was intentionally adopted with this end in view, but plaintiff’s right to an injunction does not depend upon the intent with which defendants’ name was adopted. It was so held in T. A. Vulcan v. Myers (139 N. Y.

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Bluebook (online)
170 A.D. 416, 156 N.Y.S. 223, 170 A.D. 410, 1915 N.Y. App. Div. LEXIS 9705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/german-american-button-co-v-a-heymsfeld-inc-nyappdiv-1915.