Miller v. Barnes

1963 OK 71, 380 P.2d 965, 137 U.S.P.Q. (BNA) 263, 1963 Okla. LEXIS 357
CourtSupreme Court of Oklahoma
DecidedMarch 26, 1963
Docket39952
StatusPublished
Cited by3 cases

This text of 1963 OK 71 (Miller v. Barnes) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Barnes, 1963 OK 71, 380 P.2d 965, 137 U.S.P.Q. (BNA) 263, 1963 Okla. LEXIS 357 (Okla. 1963).

Opinion

BERRY, Justice.

The parties will be referred to herein as they appeared in the trial court which is in reverse order to their appearance here.

The basic issue presented by this appeal is whether the trial court erred in finding that defendant was not privileged to use the name “Dairy Queen” in connection with a retail iced milk or soft ice cream business which defendant operated in Ardmore, Carter County, Oklahoma.

The undisputed relevant facts bearing upon the mentioned issue can be summarized thusly:

In the 1930’s Harry M. Oltz applied for and was granted a patent on an appliance that was designed for use in manufacturing frozen milk or soft ice cream. Thereafter in 1939 J. F. and H. A. McCullough entered into an agreement with Oltz. Under the terms of the agreement, the McCulloughs obtained the right to manufacture and use the machines for an agreed royalty in Oklahoma and a number of other western states during the effective date of the patent. The patent expired in 1954.

In 1946 the McCulloughs entered into a contract in writing with L. E. Copelin. It was stated in the contract that the Mc-Culloughs possessed “a certain formula together with the production methods and machinery requirements for the preparation, sale and distribution of a certain product known as DAIRY QUEEN and has agreed to grant to the party of the second part an exclusive franchise for the manufacture, preparation, sale and distribution of DAIRY QUEEN, within the territory and upon the terms” therein set forth; that for a stated consideration the McCul-loughs granted to Copelin “the sole and exclusive right and franchise for the manufacture, preparation, sale and distribution of DAIRY QUEEN within the State of Oklahoma, subject to” certain conditions; that the “Dairy Queen product is a registered trade name and (was) registered in” Oklahoma; that Copelin would purchase a stated number of machines.

The record shows that McCulloughs caused the trade-mark “Dairy Queen” to be registered in Oklahoma on April 18, 1946, and had theretofore registered same in the State of Illinois.

Prior to May 20, 1948, several Dairy Queen businesses had been established in Oklahoma but none had theretofore been established in Carter County. On the mentioned date, Copelin and E. H. Parry entered into a contract in writing. It was therein stated that Copelin owned an “exclusive franchise for the preparation, sale and distribution of a certain product known as Dairy Queen”, and agreed to grant to Parry the right to prepare, sell and distribute said product in Carter County, Oklahoma. Copelin further agreed to furnish Parry with the formula used in preparing Dairy Queen, to assist Parry in obtaining ingredients mentioned in the formula and supply two machines used in manufacturing the product. Copelin retained title to the machines. The consideration passing to Copelin was a stated amount for Parry’s use of the machines and a stated royalty based upon each gallon of “mix” used in the machines.

Parry, as contemplated by the last mentioned agreement, promptly caused a Dairy Queen business to be established in Ard-more. In 1952, Parry sold to defendant a one-half interest in the business and the rights that Parry had acquired under his franchise agreement with Copelin. In 1958 Parry sold his remaining interest to defendant. Prior to defendant’s acquiring all of Parry’s interest, the business was operated as “Dairy Queen”. Thereafter defendant operated the business under the name “Miller’s Dairy Queen”.

On January 9, 1959, Copelin and plaintiff entered into an agreement in writing. *968 By the terms of this agreement Copelin sold and assigned to Barnes all of Cope-lin’s “right, title and interest in and to the exclusive franchise covering the territory of Atoka, Bryon, Murray, Garvin, and Carter Counties in the State of Oklahoma, as herein above set out with the exclusive right to use the. name Dairy Queen within the said territory” which rights as to the mentioned counties were those acquired under Copelin’s agreement with the McCul-loughs.

In September, 1959, defendant failed to pay the royalties provided in the Parry agreement with Copelin. Following demand for payment and defendant’s refusal to pay, plaintiff called at defendant’s place of business and took possession of the machines that Copelin had delivered to Parry. The machines had at all times been used in manufacturing Dairy Queen.

< It appears that the McCulloughs obtained machines from two manufacturiñg concerns. Following removal of the machines used by defendant, defendant undertook to purchase- machines from said concerns. Following their refusal to • sell, defendant acquired machines from a different concern ■and thereafter used same in manufacturing iced milk and selling same as Dairy Queen.

In establishing’ the - product “Dairy Queen” in this and other states, a considerable sum was expended in advertising. No portion of the cost was directly borne by defendant.

As to repairing the machines furnished defendant, the parties appear to agree that defendant w-’as-obligated'to make minor repairs and Copelin or plaintiff the major repairs. Defendant testified that prior to 1959- machines' used in his business were “worn-out”; that he so advised Copelin and plaintiff; that he requested that major necessary repairs be made or that he be furnished or permitted to buy new machines ; that the request was denied. There was evidence that the machines were not worn out and would never wear out; that while certain parts thereof would become worn they could be replaced. We add, that defendant does not, as we ■ read his brief, contend that because of Copelin’s and plaintiff’s alleged breach of the contract with Parry, defendant was justified in acquiring new machines and continuing to operate his confection business as a Dairy Queen business. To the contrary his contention is premised on other contentions which are discussed herein.

For other facts bearing upon establishment and conducting of the Dairy Queen business, see Medd et al. v. Boyd Wagner, Inc., et al. (D.C.), 132 F.Supp. 399; Ar-Tik Systems v. H. A. McCullough et al. (D.C.), 133 F.Supp. 807; and Ar-Tik Systems v. Dairy Queen, Inc., (3rd Cir.) 302 F.2d 496.

In support of his petition in error, defendant advances these contentions: “1. The words ‘Dairy Queen’ standing alone are not the subject of exclusive appropriation as a ‘tradename’ for an ice milk product” ; “2. The defendant has the exclusive right to the use of the name ‘Dairy Queen- — ■ The Cone With the Curl on Top’ not only because of the fact that it was trademarked by his association, but -because he and his assignor, E. H. Parry, were the first to appropriate it -and to use it in Carter County, Oklahoma”; “3. The patent on the Harry M. Oltz freezer expired on the 18th day of May, 1954, and with the expiration of that patent all of Copelin’s rights ceased and terminated, save and except his right to collect royalties on the product which Miller ran through his machines after that date”; “4. Even if Copelin or Barnes ever had the right to use the name ‘Dairy Queen— The Cone With the Curl on Top’, they lost it by abandonment”. We will consider these contentions in the order that they are above stated.

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Cite This Page — Counsel Stack

Bluebook (online)
1963 OK 71, 380 P.2d 965, 137 U.S.P.Q. (BNA) 263, 1963 Okla. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-barnes-okla-1963.