Gotham Silk Hosiery Co. v. Reingold

223 A.D. 260, 228 N.Y.S. 9, 1928 N.Y. App. Div. LEXIS 6187
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 30, 1928
StatusPublished
Cited by8 cases

This text of 223 A.D. 260 (Gotham Silk Hosiery Co. v. Reingold) 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
Gotham Silk Hosiery Co. v. Reingold, 223 A.D. 260, 228 N.Y.S. 9, 1928 N.Y. App. Div. LEXIS 6187 (N.Y. Ct. App. 1928).

Opinion

O’Malley, J.

The action is in equity to enjoin unfair competition in the use by defendants of (1) a hosiery box in imitation of plaintiff’s box; and (2) the words “ Gold Mark ” as a simulation of plaintiff’s trade-mark Gold Stripe.”

On appeal from the order denying plaintiff’s motion for an injunction pendente lite, we reversed and granted partial relief by prohibiting the use by the defendants of the box against which complaint was made or of any box simulating those used by the plaintiff, in conjunction with the words “ Gold Mark.” (213 App. Div. 237.) The opinion in part reads: The conclusion that defendants intended and now intend unfairly to compete [261]*261with the plaintiff is irresistible in view of the box adopted by them the first of this year. Descriptively this box is essentially the same as the one that has been used by the plaintiff for the past four years. It is true that one can take these two boxes and point out differences in detail, but it is only in detail that the differences lie. The very differences, however, are earmarked with intent to deceive, as for example: the vertical stripe of defendants’ box is of the same color, blend and width, and in the exact position as the diagonal stripe on plaintiff’s box; the gold field of the cover of the plaintiff’s box is relieved by a black oblong with gold letters above, and white ovals with black letters below; defendants’ box, correspondingly, has a black circle with gold letters above and a white oblong with black letters below. * * * As to the right to enjoin defendants’ use of the name 1 Gold Mark,’ disassociated from the boxes which defendants have recently adopted, we are unwilling to decide upon the papers now before us. That question may well wait until the trial of the action. As to the boxes, however, we entertain no doubt at all. They are an obvious, palpable imitation of plaintiff’s boxes, unquestionably adopted with a view to deceiving purchasers and appropriating plaintiff’s trade.” 1

The record of the trial before us tends to confirm, rather than to alter this view. The evidence is substantially as it was on the preliminary motion. Much of it presents no conflict. The trademark acquired by the plaintiff from its predecessor in title, Gotham Silk Manufacturing Company, was first used in 1911, and finally registered in 1913. Continuously from that time and until it was acquired by the plaintiff in 1925, it had been employed by plaintiff’s predecessor in title. For the purposes of this appeal the plaintiff and its predecessor will be referred to as the plaintiff.

The term “ Gold Stripe ” had its origin in the adoption by the plaintiff of the process of putting a gold thread in the fabric of the stocking at a point where the lower end of the welt joins the top of the stocking. Between 1913 and 1925, when this action was begun, the silk hosiery manufactured by the plaintiff had become well known as Gold Stripe ” or Gotham Gold Stripe ” hosiery, and purchasers usually asked for the product by these or similar identifying descriptions. Besides operating many factories the plaintiff maintained retail stores and in addition sold at wholesale direct to other retail dealers. It stressed or featured sales in boxes containing three pair of stockings and since about the year 1921 it used an attractive box in colors of black and gold, more particularly described in the opinion on the previous appeal. In addition, it featured this box in window displays in its own stores

[262]*262and advocated similar displays by other retail dealers. It distributed about 500 large replica or dummy boxes for show window and counter display advertising purposes. There appeared on this box the words, “ Buy by the Box.” The plaintiff also furnished glass signs, cards and counter signs to its customers for a like purpose. It also stressed the importance of displaying its merchandise in the original boxes, not only in show window displays, but also on the shelves of retail stores. It advertised extensively and at great expense, both its trade-mark and its box in connection therewith.

The extent of its business thus built up and established is readily apparent from the figures submitted upon the trial. From these it appears that from 1921 to 1924 it used and distributed to its wholesale and retail customers, 13,729,200 pairs of silk stockings, packed in 4,433,000 boxes, and from 1925 to 1926, when the box, Exhibit 9, was in use, it sold 16,019,000 pairs in 5,339,000 boxes. The last box referred to was substantially the same as any one of the three or four different boxes used by the plaintiff after 1921, except that the wrapper thereon was in embossed, rather than in plain paper, and there was a slight but immaterial rearrangement in coloring and lettering. Defendants upon the trial claimed at one time that this slight alteration in Exhibit 9, made after the commencement of this action, was for the purpose of mailing more, striking the similarity between the plaintiff’s boxes and those used by the defendants. This contention failed of merit, however, and was not pressed upon the argument. Plaintiff’s box in use at the time of the trial was substantially identical with the box in use at the commencement of the suit.

The defendants, who are jobbers and not manufacturers, began the use of their trade-mark in 1917. It is explained as a combina-, tion of the last four letters of the names of the two defendants, Reingold and Newmark. It was duly registered and used by the defendants without complaint from the plaintiff until combined with the box simulating in appearance that of the plaintiff. This was in January, 1925. Prior to that time the defendants had used red and gray boxes, practically plain in color, except for the use of their trade-mark in gold lettering on the red box, and gold lettering on a purple label on the gray box. These were stock boxes furnished to the defendants by the hosiery mills without charge.

Suddenly, and for reasons hereinafter referred to, the defendants changed from these stock boxes which were furnished gratis, to gold and black boxes, the wrappers of which cost ten dollars a thousand. The defendants claimed and gave evidence tending [263]*263to show that the change was made without reference to plaintiff’s boxes and solely upon the suggestion of a representative of the firm which had been furnishing the defendants with labels and hosiery bands. It is asserted that the matter of getting up a design for the new wrapper was left entirely to a designer in the employ of this firm and that the resulting idea in black and gold stripes was entirely his. However this may be, the evidence shows that the firm which engaged the designer had manufactured labels for the plaintiff and was familiar with the design of plaintiff’s wrapper. While the designer himself, who testified on behalf of the defendants, disclaimed previous familiarity with the plaintiff’s wrapper, such fact, if true, would not relieve the defendants, if the plaintiff’s wrapper in fact was simulated.

The only reason for this change advanced by the defendants was an increase in their business and their desire to have a more attractive box. They attached no importance whatever to the box as an inducement or cause for sale to the ultimate purchaser and took the position throughout the trial that customers would purchase without reference to or regard to the box and only upon an examination of the merchandise itself.

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Bluebook (online)
223 A.D. 260, 228 N.Y.S. 9, 1928 N.Y. App. Div. LEXIS 6187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gotham-silk-hosiery-co-v-reingold-nyappdiv-1928.