N. K. Fairbank Co. v. R. W. Bell Manuf'g Co.

77 F. 869, 1896 U.S. App. LEXIS 2286
CourtCourt of Appeals for the Second Circuit
DecidedDecember 8, 1896
StatusPublished
Cited by69 cases

This text of 77 F. 869 (N. K. Fairbank Co. v. R. W. Bell Manuf'g Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N. K. Fairbank Co. v. R. W. Bell Manuf'g Co., 77 F. 869, 1896 U.S. App. LEXIS 2286 (2d Cir. 1896).

Opinion

LACOMBE, Circuit Judge.

As is quite common in cases of this Kind, the questions presented in the record are almost wholly questions of fact. The law governing the subject of unfair competition is abundantly settled by authority. It may be epitomized in the following citations:

In Nail Co. v. Bennett, 48 Fed. 800, it was alleged that defendants nad imitated plaintiff’s method of bronzing horseshoe nails, with the intention of deceiving the public into buying their goods instead of the plaintiff’s. The case coming up on demurrer, Mr. Justice Bradley said:

' “Whether this [the bronzing of the nails] is a good trade-mark or not, it is a style of goods adopted by the complainant, which the defendants have imitated for the purpose of deceiving, and have deceived the public thereby, and induced them to buy their goods as the goods of the complainant. This is fraud; * * * a substantial charge, which the defendant should be required to answer.”

This decision is cited with approval in Lawrence Manuf’g Co. v. Tennessee Manuf’g Co., 138 U. S. 549, 11 Sup. Ct. 396, where the supreme court recognizes the existence of cases, not strictly of trademarks, but “analogous to trade-marks; that is to say, on the ground of fraud on the public and on the plaintiff, perpetrated by defendant by intentionally and fraudulently selling its goods as those of the plaintiff. Undoubtedly an unían and fraudulent competition against the business of the plaintiff, conducted with the intent, on the part of the defendant, to palm off i1s goods as plaintiff’s, would, in a proper case, constitute ground for relief.”

And in a more recent case the same court says:

‘‘There can be no question of the soundness of the * * * proposition that, irrespective of the technical question of trade-mark, the defendants have no right to dress their goods up in such manner as to deceive an intending purchaser, and induce him to believe he is buying those of the plaintiffs. Rival manufacturers may lawfully compete for the patronage of the public in the quality and price of their goods, in the beauty and tastefulness of their inclosing packages, in the extent of their advertising, and in the employment of agents; but they have no right, by imitative devices, to beguile the public into buying their wares under the impression they are buying those of their rivals.” Coats v. Thread Co., 149 U. S. 566, 13 Sup. Ct. 966.

Inasmuch as the issue raised in such cases is one of fraud,— of deceitful representation, or perfidious dealing, — it 'is evident that tbe intent of the defendant, when that is clearly made out, is often illuminative of the question to be decided. Scheuer v. Muller, 20 C. C. A. 161, 74 Fed. 225. And such intent may be, and often is, made out, not from direct testimony, but as a clear inference from all the circumstances, even where defendant protests that his intention was innocent. What degree of similarity must exist to warrant the intervention of a court cannot, in the nature of things, be specifically defined in advance. The general rule is best stated by the supreme court in the following excerpt:

“Much must depend in every case upon the appearance and special characteristics of the entire device; but it is safe to declare, as a general rule, that exact [871]*871sIssilHiide is not required to constitute an infringement, or to enlitlo the complain” ing party to protection. If the form, marks, contents, words, or the special arrangement of the same, or the general appearance of the alleged infringer’s device, is such as would be likely to mislead one in the ordinary course of purchasing the goods, and induce him to suppose he was purchasing the genuine article, then the similitude is such as entitles the injured party to equitable protection. * * * Difficulty frequently arises in determining the question of infringement; but it is clear that exact similiarity is not required, as that requirement would always enable the wrongdoer to evade responsibility for his wrongful acts. Colorable imitation, which requires careful inspection to distinguish the spurious trade-mark from the genuine, is sufficient to maintain the issue; but a court of equity will not interfere when ordinary attention by the purchaser of the article would ('liable him at once to discriminate the one from the other. Where the similarity is sufficient to convey a false impression to the public mind, and is of a character to mislead and deceive the ordinary purchaser, in the exercise of ordinary care and caution in such matters, it is sufficient to give the injured party a right to redress.”

Precisely what was the similarity in the case quoted from it is not easy to make out. Written descriptions of labels and wrappings are nearly always most unsatisfactory. Certainly it was not the use of the name either of the maker or of the pills, for continued use of such names vras enjoined only when used with particular varieties of label or wrapper. Apparently it was the color of the letters used, white on a black background, and the shading of the background by diagonal lines crossing each other, which produced the resemblance. Of these labels or wrappers the court says:

“Wi1.nu.sses in great numbers wore called by the complainant, who testified that Exhibits L and K of the respondent were calculated to deceive purchasers, and the reasons given by them in support of tbe conclusion are both persuasive and convincing. Differences between (.hose exhibits and Exhibits F and H of the complainant undoubtedly exist; and still it is manifest that the general appearance of the package in the respects mentioned, and others which might be suggested, is well calculated to mislead and deceive the unwary and all others who purchase the article without opening the box and examining the label.” McLean v. Fleming, 86 U. S. 254, 256.

Necessarily, in applying the test suggested, viz. the likelihood of deception of an “ordinary purchaser exercising oridnary care,” regard must be had to the class of persons who purchase the particular article for consumption, and to the circumstances ordinarily attending their purchase.

The facts disclosed by the records in this case are as follows:

The article in question is a soap powder. Such powders have been on the market for many years. Prior to 1887 they were uniformly white in color. They were compounded of animal fats, or cotton-seed oil and soda ash. In the manufacture of cotton-seed oil there is a residuum, known as “foots,” and in the spring of 1887 complainant tried it as a constituent of soap powder, with satisfactory results. The powder thus produced was yellow, — a circumstance which suggested the name “Gold Dust,” under which it was put upon the market. Being about to introduce it to the public, complainant set to work to devise an attractive and distinctive form of package. All soap powders at that time were sold in comparatively small packages, generally rectangular, and holding six ounces, eight ounces, or one pound. It is impossible, within the limits of this opinion, or, indeed, by any written description, to set forth the condition of the business as it existed [872]*872in 1887, and as it has been proved without contradiction, by exhibits of every form of soap-powder package at that time on the market. Suffice it to say that plaintiff’s new form of package for its “Gold Dust” was a radical and unmistakable departure from every variety of soap-powder package then existing.

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Bluebook (online)
77 F. 869, 1896 U.S. App. LEXIS 2286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/n-k-fairbank-co-v-r-w-bell-manufg-co-ca2-1896.