International Breweries, Inc. v. Anheuser-Busch, Incorporated

364 F.2d 261
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 5, 1966
Docket21966
StatusPublished
Cited by1 cases

This text of 364 F.2d 261 (International Breweries, Inc. v. Anheuser-Busch, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Breweries, Inc. v. Anheuser-Busch, Incorporated, 364 F.2d 261 (5th Cir. 1966).

Opinion

COX, District Judge.

This was a suit for injunctive relief throughout states now served by appellant and for damages, which were denied, for the alleged infringement of a statutory trademark owned by appellant, consisting of the word “Bavarian’s” and bearing No. 609692 on the principal register in the United States Patent Office. The registration was granted for beer of a legal alcoholic content in Class 48. 1

The parties own and operate competing breweries in Florida and compete in Florida, Alabama, Georgia, South Carolina and Texas in the south in marketing a popular price beer. Appellant labels its product “Bavarian’s Select Beer.” The appellee’s product is labeled “Busch Bavarian Beer — Product of U.S.A.” 2 The appellant complains in this suit of appellee’s use of “Bavarian” on its label and contends that such practice infringes its trademark “Bavarian’s.”

The disposition of this controversy was foreshadowed by prior litigation between the Bavarian Brewing Company, Inc., (former owner of the trademark “Bavarian’s”) in 1955 in the United States District Court in Ohio 3 resulting in an injunction in that case against appellee restraining its use of the word “Bavarian” or “Bavarian's” on its beer sold in Northern Kentucky, Southeastern Indiana and Southern Ohio (designated as the Cincinnati area) by reason of the long established significance of those words to the beer trade in that area as designating the popular priced beer of Bavarian Brewing Company, Inc. That decision of the Federal District Court was affirmed by the United States Court of Appeals for the Sixth Circuit in 1959. 4 On April 30, 1959, appellant acquired all of the assets of the Bavarian Brewing Company, Inc., by purchase after the Ohio litigation and with full knowledge thereof. Appellant is fully recognized as a privy to that litigation. There is much dispute before this Court as to just what was ultimately said and done by the Court in that Ohio case. Many cases are cited and many contentions emerge from both sides concerning the result of that Ohio litigation and its asserted effect on this suit. The trial court in a carefully prepared finding of facts and conclusions of law denied all relief to both parties in this case. 5 It denied relief to appellant because the questions presented had been litigated and decided adversely to appellant’s predecessor as then owner of such trademark; and because appellant did not show that its trademark had any secondary meaning to the trade outside Northern Kentucky, Southeastern Indiana and Southern Ohio and within its subject trade area in said five southern *263 states. The appellee filed a counter claim and sought cancellation of appellant’s trademark as having been fraudulently procured and to enjoin further litigation with it over the word “Bavarian.” There was no appeal from a dismissal of such counter claim.

Among other things, the trial court in this ease found: “International Breweries, Inc., has made no claim, nor has it submitted any evidence, that the terms ‘Bavarian’ or ‘Bavarian’s’ or ‘Bavarian’s Select’ have acquired a secondary meaning identifying International Breweries, Inc., with these words in any of the areas in which it seeks an injunction in this case.” It concluded, among other things, by holding: “ ‘Busch Bavarian,’ as used by Anheuser-Busch in areas outside of Southeastern Indiana, Southern Ohio and Northeastern (sic) Kentucky, does not infringe ‘Bavarian’s’ or ‘Bavarian’s Select’ as used by International.” The trial court held that the Ohio litigation foreshadowed this controversy and in the main barred it, applying the doctrine of res judicata thereto. It must be borne in mind that we are not concerned and cannot be concerned with the type of judgment which might have been entered by this Court if the Ohio case had arisen in this Circuit initially. This Court is called upon now to determine the rights of these parties in the light of what the Ohio District Court and the Sixth Circuit acted upon, said and did and declined to do in that Ohio case, as presented. We cannot be concerned with how appellant would have presented its claim in the Ohio case had it, and not its predecessor, then been a party to that suit. The record shows, as the trial court in this case found, that Bavarian Brewing Company, Inc., sought and continued to press for injunctive relief against appellee’s use of the Busch Bavarian beer mark in every state in the American Union and that such relief was denied, except as limited to Northern Kentucky, Southeastern Indiana and Southern Ohio. It was expressly adjudicated in that case that the word “Bavarian” did not belong to the Bavarian Brewing Company, Inc., but that it was a word in common use with only a territorial significance. It is significant in the connection that many foreign and domestic concerns manufacture and sell beer under a label containing the word “Bavarian.” Florida issued a trademark to appellant registering the word “Bavarian’s” in June 1960 and asserted its first use in the state on March 18, 1959. But the label here is not just “Bavarian,” the appellee markets its products as Busch Bavarian beer. The word “Busch” is a registered trademark of the appellee as it appears on the principal register in the United States Patent Office. The record in this case is quite large. It would avail nothing to extend this opinion with excerpts from the Ohio case. It suffices to say that the United States District Court in Ohio in that case instituted there in 1955 and finally concluded in 1959, did have before it and did refuse or decline a request then from Bavarian Brewing Company, Inc., to enjoin the appellee here from using the word “Bavarian” on its beer labels anywhere in the United States; and that request was refused or denied with finality, excepting only in the Cincinnati area where a secondary meaning was shown to exist as indicating Bavarian Brewing Company, Inc., as the manufacturer of all beer bearing such a label. The plaintiff in that Ohio case contended that it owned a common law trademark on the word “Bavarian” and that it had a Lanham Act registered trademark in the word “Bavarian’s” which it was entitled to have protected at that time, nation wide. The Ohio Court did not make such adjudication on the ground of prematurity of action, but made it as an adjudication on the merits and with no reservation or exception for future claim or litigation. It was thus effectively a declaratory judgment which afforded Bavarian Brewing Company, Inc., absolute protection against appellee’s use of its identifying mark (Busch Bavarian) in the Cincinnati area, but denied it such protection everywhere outside that area, unless it were shown that the trademark *264 “Bavarian’s” had acquired a secondary significance in a trade area so that the use of such mark would likely confuse the buying public as to the source of beer being marketed in such area as “Bavarian’s Select” beer. It is no answer to the situation now to say that the owner of a statutory trademark cannot have it protected in an area in which it does not operate. Nor may it be said that appellant as the present owner of that trademark (“Bavarian’s”) may litigate those questions anew with appellee and have applied to its claim now the test which would be applied thereto as an initial case.

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364 F.2d 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-breweries-inc-v-anheuser-busch-incorporated-ca5-1966.