Mastercrafters Clock & Radio Co. v. Vacheron & Constantin-Le Coultre Watches, Inc.

119 F. Supp. 209
CourtDistrict Court, S.D. New York
DecidedMarch 11, 1954
DocketCiv. A. 79-383
StatusPublished
Cited by6 cases

This text of 119 F. Supp. 209 (Mastercrafters Clock & Radio Co. v. Vacheron & Constantin-Le Coultre Watches, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mastercrafters Clock & Radio Co. v. Vacheron & Constantin-Le Coultre Watches, Inc., 119 F. Supp. 209 (S.D.N.Y. 1954).

Opinion

McGOHEY, District Judge.

The plaintiff seeks a declaratory judgment that it is not unfairly competing with the defendant; damages allegedly resulting from suits by the defendant against the plaintiff’s distributors; an injunction to restrain the prosecution of such suits.

The defendant, in a counterclaim in which the intervenor joins, charges unfair competition by the plaintiff and asks damages and an injunction.

At trial to the Court alone, the parties stipulated to try only the issue of liability, leaving questions of damages for later determination.

The facts found by the Court and the conclusions of law follow.

Mastercrafters Clock & Radio Co. (hereafter called Masters) is an Illinois corporation. Vacheron-Constantin Le Coultre Watches, Inc. (hereafter called Vacheron) is a New York corporation. Jaeger-Le Coultre, S. A. (hereafter called Jaeger) is a Swiss corporation.

The amount in controversy exceeds $3,000. The Court has jurisdiction of the parties and subject matter.

Since some time prior to 1937 a Swiss corporation, Le Coultre & Cie, S’. A. (hereafter called Le Coultre Co.), not a party to this action, has manufactured a clock unique in the horological world by reason of its source of energy. Although spring driven, it is so contrived that the spring is wound by very slight changes in the temperature of the atmosphere. No manual winding or other external source of energy is required. These features induced the manufacturer at an early date to name the clock “Atmos — the Perpetual Motion Clock.”

Initially it was made in a variety of designs, but by 1937 it was determined *211 tó give so unique a mechanism a distinctive outward appearance. Accordingly, the old designs were withdrawn and repláced by the one still in use which is the subject of this suit. It is a simple, yet elegant open-dial model made of brass, set on a brass base and covered by ■ a detachable case consisting of four crystal sides and a crystal top set in a brass framework.

Neither the mechanism nor the design has been patented. The name Atmos, however, which is always used to describe this atmospherically operated clock, has been registered in the United States Patent Office, as the property of Establissements Ed. Jaeger of France. It was assigned to Jaeger after this suit was commenced,

Le Coultre Co., the manufacturer, has no sales organization. Jaeger, the intervenor herein, is the sole sales outlet for all Le Coultre Co. products, including the Atmos clock. In 1939 Jaeger in a written contract granted Vacheron the right to sell and advertise the Atmos' clock in the United States. This right, however, was not exclusive. The contract reserved to Jacques Cartier, Inc. of New York the right, granted some time in 1937 or before and which it at all times since has exercised, to import and sell Atmos clocks in the United States at retail under the name “Cartier” which appears prominently on the dial of all the Atmos clocks so sold.

Since 1939, all Atmos clocks, other than Cartier’s, sold and displayed in the United States, have been imported by Vacheron and have borne prominently on the dial the name “Le Coultre” which during the life of their contract Jaeger has authorized Vacheron to use. “Le Coultre” is registered in the United States Patent Office as the property of Le Coultre Co., the manufacturer.

Vacheron is a wholly owned and controlled Subsidiary of Longines-Wittnauer Watch Co., Inc. of New York (hereafter called Longines), not a party to this action. All Vacheron’s accounts are carried in the books of Longines which handles all Vacheron’s finances. From 1939 to 1949 Vacheron had no sales-force of its own .and the Atmos clocks it imported during those 10 years were advertised by Longines and sold by the latter’s sales force. Payments were made to and received by Longines.. Since 1949, however, a separate sales staff which is paid by Longines has been assigned to Vacheron. Payment for At-mos clocks sold by this staff is still sometimes made to and received by Longines. Since 1949, both Vacheron and Longines have advertised the Atmos as the “Le Coultre Atmos — The Perpetual Motion Clock.”

From its introduction into the United States in 1937 by Jacques Cartier, Inc. until 1949, the retail price of all the At-mos clocks sold here was $315. Extensive retooling of the Swiss factory in 1949 resulted in increased production at lower cost. The price was then reduced to $165. This was later increased to the present price of $175.

Masters is a manufacturer of electrically operated clocks which it sells only to retail and wholesale jewelers throughout the United States. In January 1952, Masters commenced production of a clock known as its Model 308,. which it introduced to the trade in July of the same year. This is an electrically operated clock and bears the seal of approval of the Electrical Underwriters’ Laboratory, Inc. The Model 308, although in external appearance practically an exact copy of the Atmos, has the following prominent distinguishing features: (1) there is clearly visible, extending from the rear of the base, an electric cord equipped for attachment to an outlet of suitable current; (2) the name “Mastercrafters” is embossed or etched on the dial approximately at the place where either “Cartier” or “Le Coultre” appears on the Atmos; (3) “Made in U. S. A.” is embossed on the dial, whereas the Atmos bears the legend “Made in Switzerland”; (4) there are various adhesive labels affixed to the case and works bearing the name arid trademark of Mastercrafters and advising the purchaser that “This ‘Mastertime’ Elec *212 trie Clock operates only on 110 volt, 60 cycle, A. C. current.”; (5) when in operation the pendulum of the Model 308 rotates whereas that of the Atmos oscillates. '

The Atmos is always advertised under that name as an unique clock operated by changes in atmospheric temperature. The Model 308 has never been described or represented as the Atmos but is always described and advertised as a clock operated by electricity. Both clocks are packed in distinctive cartons plainly marked with the shipper’s name and trade-mark and there is no serious claim that there is any likelihood of confusion arising from the packaging, especially since the clocks are not sold packaged at retail.

In the fall of 1952, shortly after the introduction of the Model 308, Vaeheron, by telegram, notified Masters 1 and some 18 of its customer-distributors to “cease all sale or offer for sale of Mastercrafters Model 308 clock. Model 308 is a flagrant counterfeit of the distinctive appearance and configuration of our long-established Atmos clock. Unless we receive your agreement as above we must necessarily instruct our attorneys to proceed promptly to protect our interests.” Following this notice Vaeheron commenced state court actions against seven of Masters’ distributors for damages and injunction. In verified complaints Vacheron alleged in part that “it and its parent Longines-Wittnauer Watch Co., Inc.

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119 F. Supp. 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mastercrafters-clock-radio-co-v-vacheron-constantin-le-coultre-nysd-1954.