New Iberia Extract of Tabasco Pepper Co. v. E. McIlhenny's Son

61 So. 131, 132 La. 149, 1912 La. LEXIS 1003
CourtSupreme Court of Louisiana
DecidedOctober 21, 1912
DocketNo. 18,945
StatusPublished
Cited by7 cases

This text of 61 So. 131 (New Iberia Extract of Tabasco Pepper Co. v. E. McIlhenny's Son) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Iberia Extract of Tabasco Pepper Co. v. E. McIlhenny's Son, 61 So. 131, 132 La. 149, 1912 La. LEXIS 1003 (La. 1912).

Opinion

LAND, J.

Plaintiff, a manufacturer of a certain pepper sauce, styled “Extract of Tabasco Pepper,” sued the defendant, the manufacturer of the well-known “Tabasco” sauce, for $30,000 damages for libel upon the business and occupation of the plaintiff. Both parties are corporations domiciled in the parish of Iberia, La.

The charge of libel was based on a circular letter issued by the defendant, in form as follows:

[152]*152“Legal.
“E. M. McIlhenny’s Son v. Infringers.
“New Iberia, La. July 17, 1906.
“Rafferty & Hozier, New York, N. Y.
“Dear Sirs: It has come to our attention that various persons are seeking to secure the benefit of the good will which attaches to the use of the trade-mark ‘Tabasco’ on bottles of pepper sauce.
“This trade-mark was adopted in 1868 by Edmund Mcllhenny to distinguish his mark of pepper sauce from pepper sauce made by other manufacturers. It is registered as trade-mark No. 51035 in the Patent Office of the United States.
“Under this trade-mark a large and profitable business ■ in the manufacture and sale of p'eppen sauce was built up by Edmund Mcllhenny, and that business has grown to such large -proportions under the management of his successors that certain competitors in the manufacture and sale of pepper sauce have been tempted to endeavor to secure some of our trade by the use of our trade-mark. It is our purpose to proceed against any person who in the future may offer for sale, under the trade-mark ‘Tabasco,’ pepper sauce not made by us.
“We do not know whether, not being conversant with the foregoing facts, you have in the past offered for sale any pepper sauce other than ours under the foregoing trade-mark, or whether you are doing so at present; but, if such be the case, we request that you cease such infringement.
“In view of the pleasant business relations which have existed between us in the past, we are especially averse to causing any unreasonable hardship by the enforcement of our rights; therefore, we beg to inform you that, if you have on hand any goods other than ours bearing the trade-mark ‘Tabasco,’ you may have until August 15, 1906, to observe our wishes expressed herein.
“We will institute legal proceedings against any such dealers as may after August 15, 1906, offer for sale under the name ‘Tabasco’ pepper sduee manufactured by any person, firm or corporation other than E. Mcllhenny’s Son.
“Yours very truly
“[Signed] E. Mcllhenny’s Son.”

Plaintiff alleged that 30,000 of these circulars were distributed by defendant through the mails among dealers in pepper sauce throughout the United States, Canada, and foreign countries, and that many persons who received the circulars thus sent had bought or used the pepper sauce manufactured by the plaintiff.

Plaintiff further alleged that defendant also addressed letters to dealers in pepper sauce, and that the substance of said circulars and letters was the false and illegal claim that defendant was by law exclusively vested with the right to use the word “Tabasco” as a designation of its product, and threatening with suits for infringement all persons who might buy, sell, or use the product manufactured by the plaintiff, and that the object and purpose of all such writings and publications was to frighten dealers and users of plaintiff’s product from buying, selling, or using it, and to secure to defendant an unlawful monopoly in the use of the name “Tabasco.”

Plaintiff further alleged that the defendant had no trade-mark that entitled it to the use of the name “Tabasco,” but, on the contrary, its patent right for “Tabasco pepper sauce” expired in the year 1887, and its subsequent illegal registration of “Tabasco” as a trade-mark had been canceled.

Plaintiff further alleged that the illegal and wrongful acts of the defendant in the premises have damaged plaintiff in its trade in the sum of $10,000, in additional expenditures of labor and money to maintain its business standing in the sum of $3,000, in expenses incurred to procure the cancellation of the registration of the said illegal trademark in the sum of $2,317.83, and in punitive damages in the sum of $16,000.

The defendant appeared, and for answer denied all and singular the allegations in the petition contained. This answer was filed in August, 1907. In May, 1910, the defendants filed a supplemental and amended answer, in which they admitted the distribution of the circular letters as alleged in the petition, but averred that said circular was prepared and mailed under the advice of competent counsel, that every statement and allegation therein contained was true, and that defendant corporation at the time said circular was mailed was entitled to the exclusive use of the word “Tabasco” as a [154]*154trade-mark in connection with the manufacture and sale of pepper sauce, and that its successor in title, the Mcllhenny Company, of the state of Maine, is entitled to the use of the same trade-mark.

The answer further averred that since January, 1902, the plaintiff has continually infringed the trade-mark of the defendant. The case was tried, and judgment was rendered in favor of the defendant. The plaintiff has appealed.

Edmund Mcllhenny in the year 1868 began to make a pepper sauce, which he called “Tabasco,” and in 1870 patented a process known In the market as “Tabasco sauce.” The family continued the manufacture of the same sauce, always using the name of “Tabasco” to indicate the product. They merged into the defendant corporation, which continued to manufacture the same sauce under the same name. The patent expired in 1887. Between the years 1890 and 1900 other persons commenced the manufacture and sale of pepper sauce, called “Tabasco.” Among these were C. P. Moss of New Iberia and Christian Shertz of New Orleans, who in 1901 formed a partnership for the manufacture of Tabasco sauce in the town of New Iberia. In 1902 Moss purchased Shertz’s interest in the partnership, and in 1902 organized the plaintiff corporation, which continued the business.

It appears that Shertz in July, 1901, deposited in the United States Patent Office for registration a label bearing the title “Tabasco Pepper (for Extract of Tabasco Pepper),” and that in January, 1902, Shertz transferred to C. P. Moss all his right, title, and interest in said reregistered label, and that Moss, in turn, transferred the label and business to the plaintiff corporation.

In 1905 the defendants applied to the United States Patent Office for registration of the name “Tabasco” as their trade-mark. This application was allowed, but was subsequently canceled on the ground that the name “Tabasco” was geographical, and merely descriptive.

In April, 1906, the defendants succeeded in registering the name “Tabasco” as their trade-mark under the act of Congress approved February 20, 1905 (Act Feb. 20, 1905, c. 592, 33 Stat. 728 [U. S. Comp. St. Supp. 1911, p. 1466]). This registration was based on an affidavit of ownership and actual and exclusive use of the trade-mark for 10 years preceding the date of the passage of the act. In July, 1906, the defendants issued and distributed the circular letters as stated 'supra.

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Bluebook (online)
61 So. 131, 132 La. 149, 1912 La. LEXIS 1003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-iberia-extract-of-tabasco-pepper-co-v-e-mcilhennys-son-la-1912.