N. K. Fairbank Co. v. Swift & Co.

64 Ill. App. 477, 1896 Ill. App. LEXIS 946
CourtAppellate Court of Illinois
DecidedJune 1, 1896
StatusPublished
Cited by2 cases

This text of 64 Ill. App. 477 (N. K. Fairbank Co. v. Swift & Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois 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. Swift & Co., 64 Ill. App. 477, 1896 Ill. App. LEXIS 946 (Ill. Ct. App. 1896).

Opinion

Mr. Justice Waterman

delivered the opinion of the Court.

This is an appeal from the decree dismissing a bill filed by the if. K. Fair bank Company, a corporation organized under the laws of the State of Illinois, against Swift & Company? also a corporation organized under the laws of this State. The suit was brought to restrain an alleged infringement of two trade-marlcs, which are the property of appellant, and also to protect the appellant against an alleged unfair competition in business.

It appears from the evidence that the contending parties each manufacture very similar substances ; that the appellant was the first to make practicable for common use in cooking, a preparation made from cotton seed oil, for which preparation it coined the name “ cottolene,” and that to popularize the use of the same, and to make the public acquainted therewith, it has for a number of years expended in advertising very large sums of money—as one witness testified, as much as $100,000 per annum; that the manufacture carried on by the defendant of cotton seed oil for cooking purposes, was by it begun some time after the complainant had engaged in such business, and after complainant had obtained’its trade-marks and introduced its manufacture to the public under the name of “ cottolenethat the defendant coined and has made use of the word “ cotosuet ” to designate its product; that the principal ingredient of each of the preparations is cotton seed oil, a small quantity of beef suet stearine being added thereto.

The complainant charged that the defendant, “for the purpose of creating upon the trade and public the false impression that said defendant’s product is in reality the product of complainant, or that the defendant’s product is the same as that of the complainant and does not differ therefrom as the complex product of one manufacturer commonly differs from a similar product of the same general class made by another manufacturer and for the purpose of deceiving or enabling dealers to deceive and impose upon persons, and especially the careless and uninformed and those ignorant of the English language Avho were accustomed or disposed to buy for trade or consumption the cottolene made by the complainant, by passing off and imposing upon such persons the product of defendant in lieu of that of complainant, and for the purpose of trespassing upon the good will of the public towards complainant, and unlawfully and wrongfully securing to defendant trade which of right belongs to complainant, defendant has made and is now using upon its said goods false and fraudulent marks, signs and tokens,” setting forth a particular description of such alleged false and fraudulent marks, signs and tokens, among which is that the word “cotosuet ” is so used by the defendant.

No person is entitled to represent his wares as being the goods of another man, or articles of his manufacture as having been made by another, and no person is by the law permitted to use any mark, sign, symbol, name, device or other means, whereby he makes a false representation, or deceives as to his own goods, or as to the goods of another, or whereby, without himself making a false representation to a buyer who purchases from him, he enables such buyer to tell a lie or to make an untrue representation to somebody else who is the ultimate customer. Mor is it a defense to an action, the gist of which is a charge of deception, to reply that the words uttered by the defendant were the literal truth, for the truth may be stated in a way likely to, and that does, deceive. What is required is that a party shall not conduct his business so that by what he says or does, he deceives customers to their injury, or to that of a competitor.

A man may not use his own name for the purpose of deception, and such fraudulent use will be enjoined. Fair competition in business is legitimate and promotes the public good, but an unfair appropriation of another’s business by using his name or trade-mark, or an imitation thereof calculated to deceive the public, is not permissible and will be enjoined by a court of equity. Hazleton Boiler Co. v. Hazleton Tripod Boiler Co., 40 Ill. App. 430; Same, 142 Ill. p. 509; Reddaway v. Banhan, House of Lords, opinion filed March 26, 1896; Celluloid Co. v. Cellonite Co., 32 Fed. Rep. 97.

As has frequently been said, it is not often the case' that one intending to palm off his goods as those of another, copies entirely the marks, signs, brands or trade-marks of his rival; what he does is to imitate, more or less closely, in such a way as to deceive the unwary or ordinary observer.

What degree of resemblance is necessary in order to warrant the issuing of an injunction to prevent the fraudulent use of trade-marks, or to prevent the fraudulent use of resemblances to trade-marks, or to stop unfair competition in business, must necessarily always continue to be a question which can not be settled by rules applicable to all cases.

While the court is not bound to interfere where ordinary attention will enable the purchasers to discriminate between the trade-marks used on the goods manufactured by different parties, nevertheless, the character of the article, the use to which it is put, and the kind of people who are likely to ask for it, as well as the manner in which it is probable it will be ordered, must not be lost sight of. Popham v. Cole, 66 N. Y. 69; 23 Am. Rep. 22, and cases there cited; Morgan’s Sons Co. v. Troxell, 89 N. Y. 292; 42 Am. Rep. 294; Manufacturing Co. v. Francis, 101 U. S. 51; Ball v. Siegel, 116 Ill. 137; Reed v. Richardson, 45 L. T. (N. S.) 54; Beard v. Turner, 13 Id. 736; Leidesdorf v. Flint, 7 N. W. Rep. 174; Eggers v. Heink, 63 Cal. 445; Morgan’s Sons Co. v. Troxell, 23 Hun 632; Ewing v. Johnston, L. R. 18, Ch. Div. 612; Apollo naris Co. v. Sherer, 22 Fed. Rep. 22.

Applying these principles to the case at bar, we are, from an examination of the evidence, to determine whether defendant has conducted itself so that its goods are represented or made to appear as the goods of the complainant, and whether the defendant, without making a direct false representation to any of its customers, has so conducted itself as to enable such customers to make a false representation to somebody else who is to be the ultimate customer. Has it been guilty of unfair competition in business?

All practices between rivals in business which tend to engender unfair competition, are odious, and will be suppressed by injunction. Ho man will be permitted to make use of signs or tokens which serve to confuse the identity of his business Avith that of another, or to mislead the public, and thus divert custom from his competitor to himself.

It is urged that the defendant, knowing the great success which had attended the endeavor to sell the complainant’s product under the name “ cottolene,” deliberately chose as a designation for its, the defendant’s, product, the word “cotosuet,” intending thereby to confuse the public as to the identity of the product of the complainant and that of the defendant, and that the use of the word “ cotosuet ” has had such effect.

We do not agree with what has been said in one case, that the use of a sign or token so similar to that of a rival as that there is a possibility that confusion may arise therefrom, is sufficient to call for the interposition of a court of equity.

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Bluebook (online)
64 Ill. App. 477, 1896 Ill. App. LEXIS 946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/n-k-fairbank-co-v-swift-co-illappct-1896.