Hegeman & Co. v. Hegeman

8 Daly 1
New York Court of Common Pleas·Decided February 14, 1880·Published·Cited by 14 cases

Opinion

Charles P. Daly, Chief Justice.

These cases, which are cross-actions relating to the same thing or right, involve an examination of several questions as to the right of property in a name, in a trade-mark, in a name and trade-mark so united, that they, together, form the trade-mark, and in the good will of an established business, indicated by a general name, or the name of the proprietor, or of a former proprietor or founder.

It will be necessary, first, to state the law, so far as it has [4]*4been settled in respect to property in a name, in a trademark, and in the good will of an established business, and what is incident to it, before applying the law to the facts in this case.

When, however, the whole pecuniary value of a name in its connection with an article of merchandise, or a manufaeture, or a business, is derived solely from the personal qualities of the one to whom the name belongs, such as his skill, special knowledge and experience, or from the fact that the article is produced under his personal supervision, which imparts to it a special value, then the right to the name is not transmissible.

A trade-mark may consist in a name, or in a symbol or device used to indicate the nature, quality or identity of an article of commerce, whether it consists of an article that any one is at liberty to fabricate, compound or vend, or which originated with, or the exclusive right to manufacture or vend which is under the protection of a patent, or otherwise in the person or proprietor by whom the trade-mark was devised. It may exist where the name of the article and of the proprietor are so blended together that the right to the use of the name is indispensable to the use of the trade-mark, or may consist of the name alone of the manufacturer or proprietor, or may exist where the article fabricated is so made or shaped that the peculiar form of it is designed to, and does, serve as a trade-mark ; as in the case of a sewing-machine, the iron framework of which was so constructed as to represent and form the two initial letters of the proprietor’s name.

A person may acquire the right known as the good will in a business from its being established in a particular place, from which he has derived, or may derive, profit, and where there is attached to the business a name indicating to the public where, or in what manner, it is carried on ; and this is a right which will be protected in a court of equity, even where he removes the business to another place. (The G. & H. Mnfg. Co. v. Hall, 61 N. Y. 282; Harper v. Pearson, 3 Law Times, [N. S.] 547 ; Howard v. Henriques, 3 Sandf. [5]*5725; Christy v. Murphy, 12 How. Pr. 77.) The proprietary interest which a person has in his "name, so far as any pecuniary value arises from the use of it, which a court of equity would protect, or which may be transmissible by assignment, is necessarily connected with some business, trade-mark, or other interest, through which a pecuniary value has become attached to it. •

The proprietary right which a man has acquired in a trade-mark, or in the use of his name, or in any name, general or otherwise, which designates a particular business established and carried on by him, involving what has been previously described as the good will of the business, is, being in the nature of propert)r, transmissible by assignment or bequest (The G. & H. Mnfg. Co. v. Hall, 61 N. Y. 227, 230, 231 ; The Leather Cloth Co. v. American Leather C. Co., 4 De Gex, J. & Sp. 142 ; id. H. of L. Rep. 522; 11 Jurist, [N. S.] 513 ; Sargent v. Romen, Annales de la Prop., t. 13, p. 21; Congress, &c., Co. v. High Rock, &c., 57 Barb. 526 ; id. 45 N. Y. 291 ; Dixon Crucible Co. v. Guggenheim, 3 Am. Law Times R. [St.] 288; Lockwood v. Bostwick, 2 Daly, 521; Hitchcock v. Cohen, 6 Ad. & Ell. 438, 449; Howe v. Searing, 6 Bosw. 354 ; Clinton v. Douglas, 1 H. R. V., Johnson, 176 ; Ainsworth v. Walmesley, 44 L. J. R. 242; Durreya v. Plato, 29 Cal. 292; Hall v. Barrows, 10 Jur. [N. S.] 55 ; 4 De Gex, J. & S. 156, 157, 158 ; Croft v. Day, 7 Beav. 84 ; Bradbury v. Dickens, 27 id. 53 ; McLean v. Fleming, 6 Otto, 249, 250 ; Browne on Trade-marks, §§ 359, 360), and will pass with the sale of the business to which the name or trade-mark is attached; or under a general assignment for the benefit of the creditors, which, by its terms, transfers all the insolvent’s property for the payment of his debts, although it may not be specified in the schedule annexed to the assignment, or which, under our statute, is subsequently made out and filed. (Hall v. Barrows, supra ; Burns v. Bedford, 33 Law J. [N. S.] 465 ; Edilsten v. Vick, 11 Hare, 78; Hudson v. Osborne, 39 L. J. Ch. [N. S.] 79 ; Couch v. Delaplaine, 2 N. Y. 397 ; Platt v. Lott, 17 id. 478 ; Cram v. Union Bank, 1 Abb. Ct. of App. Dec. 461 ; Miller v. Halsey, 4 [6]*6Abb. Pr. [N. S] 33.) When, however, the whole pecuniary value of the name, in its connection with an article of merchandise, or a manufacture, or a business, is derived solely from the personal qualities of the one to whom the name belongs, such as his skill, special knowledge and experience, or from the fact that the article is produced under his personal supervision, which imparts to it an especial value; then the right to the name is not transmissible. It is then purely personal; and this is equally so with a trade-mark used and recognised, as denoting that the article or product is made by a particular person, whose skill, experience, or other personal quality, or whose personal experience in the fabricating, preparation or production of it, gives to it a peculiar value, which is distinguishable from a trade-mark used as a brand of quality, or of texture, fineness, or other characteristics ; or to indicate that it is made in a particular establishment or manufactory; or where a name simply denotes an established business, with whatever advantages may accrue from its long establishment, the fact that it is generally or widely known, and the confidence it inspires from its duration. (Hall v. Barrows, supra ; Bury v. Bedford, supra ; Carmichael v. Lattimer, 11 R. I. 395.)

The defendant, while conceding that a party can dispose of the right to use his name in a certain business, insists that it will not pass under a general assignment for the benefit of creditors, but only by a clearly expressed intention on bis part to do so, in the form of a positive agreement; and in support of this refers to many cases, three only of which I deem it necessary to notice and distinguish, as the residue have no bearing whatever upon the point raised.

In Bradley v. Norton (33 Conn. 157), where the adopter of the trade-mark, which contained his own name as part of the title of a new compound prepared and sold by him as a fertilizer, made an assignment for the benefit of creditors, but the trade-mark was not inventoried by the trustee or by the appraiser, and was never claimed by the trustee or by the creditors, nor in any manner disposed of under the assignment; and where the adopter, upon getting again into [7]

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