North & Judd Mfg. Co. v. Krischer's Mfg. Co.

11 F. Supp. 739, 1935 U.S. Dist. LEXIS 1455
CourtDistrict Court, D. Connecticut
DecidedAugust 13, 1935
DocketNo. 2364
StatusPublished

This text of 11 F. Supp. 739 (North & Judd Mfg. Co. v. Krischer's Mfg. Co.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North & Judd Mfg. Co. v. Krischer's Mfg. Co., 11 F. Supp. 739, 1935 U.S. Dist. LEXIS 1455 (D. Conn. 1935).

Opinion

. THOMAS, District Judge.

On June 18, 1934, plaintiff brought suit against the two Krischer companies for infringement of copyright and unfair competition. Nine days later, by amendment to the bill, it charged trade-mark and patent infringement against the same two defendants. Five days after that it summoned O. B. North & Co., Incorporated, Abraham Molstein, and Maurice H. Bailey as additional parties defendants. At the conclusion of the trial, on proper motion, the bill was dismissed as to the three defendants just named because the plaintiff had failed to sustain the burden of proof respecting the allegations contained in the last amendment which charged that -those three defendants had committed the infringing acts in collusion with the other defendants and that they broke their covenants of sale.

A technical infringement of copyright has been admitted by both the Krischer companies. This leaves three issues: First, infringement of. a design patent; second, infringement of trade-mark; and, third, unfair competition.

The difficulties between the parties find their source in the purchase by the plaintiff in June, 1930, of cei-tain assets of the O. B. North Company, and the purchase by the Krischer companies, in 1933, of the factory formerly occupied by the O. B. North Company.

The evidence shows that on June 25, 1930, the plaintiff purchased from the O. B. North Company practically all its assets, except the land, buildings, accounts and bills receivable, cash, securities, bank balances, books of account, and any and all records other than production records. The contract of sale provided that the O. B. North Company should not engage for a period of five years in the business of manufacturing or selling hardware of the kind then manufactured by it nor allow its name to be used in connection therewith, except by the plaintiff.

The O. B. North Company was to continue for all purposes and have the powers and privileges it always possessed, except those taken from it by the contract. Among the assets purchased by the plaintiff were the trade-marks and the trade-names of O. B. North & Col, Incorporated, and particularly the arrow trade-mark involved in this suit. At the same time, Molstein and Bailey, who had been associated with O. B. North & Co., Incorporated, agreed not to engage or become interested in like business for the same five-year period.

In 1931 the Krischer companies leased the plant formerly occupied by O. B. North & Co., Incorporated, and in 1933 purchased it, and after putting the factory in condition began the manufacture of saddlery hardware. Thereafter occurred the events of which the plaintiff complains.

From the contract and the evidence it appears that the plaintiff intended to suppress and destroy, as much as possible, the value of the good will of O. B. North & Co., Incorporated, within five years because O. B. North & Co., under the terms of the contract, was restrained from engaging in that business for five years and was privileged to resume the same and use its old name at the expiration of that period of time.

[741]*741When tlic plaintiff published its very comprehensive. Catalogue No. 89, Plaintiff’s Exhibit No. 1, in 1933, it made no reference to the O. B. North & Co.’s lines of hardware or to the arrow brand of merchandise formerly manufactured by O. B. North & Co., Incorporated. This was the situation when the labels printed by the plaintiff are examined and all reference to O. B. North & Co., Incorporated, is eliminated and only the arrow is preserved. See Plaintiff’s Exhibit 11. The good will attached to the arrow was not nourished or nurtured much more than the good will attached to the name O. B. North & Co., Incorporated, nor much more than it had to be by the plaintiff. The evidence establishes the fact that North & Judd only infrequently received orders specifying the O. B. North & Co., Incorporated, or arrow line of hardware in the two years pri- or to suit. The plaintiff, it would seem, would not have been so sensitive to the acts complained of, nor would it have put the unfavorable construction which it did on the acts complained of with reference to Molstein and Bailey, if it had not sought to destroy, rather than .to preserve, the good will attached to the name and the mark which it apparently hoped the public would forget within the five-year period specified in the contract. The attitude of the plaintiff toward the good will attached to the name of 0. B. North & Co., Incorporated, or to the arrow line of hardware, both of which were old and well known among the trade, may have arisen when Krischer came along and became a very aggressive competitor. Their aggressiveness was watched very carefully by the plaintiff, and doubtless the acts and statements of certain other persons were immediately charged against the Krischers. The evidence is not sufficient to establish actual or implied authority for such statements with which to charge the defendants. In fact, the record discloses that whenever statements were made by persons which might mislead people into thinking that Krischer succeeded to the patterns or good will of O. B. North & Co., Incorporated, Krischers took steps to correct such impressions directly they were brought to their attention. The statements made by Smith, Mixer, and Hagelin were true— to the effect that Krischer had bought the O. B. North & Company plant—but'the statement was made at least three years after tlie plaintiff the North & Judd Company had purchased the hardware business of O. B. North & Co., Incorporated, and had for a period of five years restricted that company from using its name, not in general, but in the hardware business, and notice had been sent to the trade advising the trade all over the country of the deal between O. B. North & Co., Incorporated, of New Haven, and North & Judd of New Britain.

Neither by themselves, nor coupled with the other acts committed by the Krischer companies, of which complaint is made by the plaintiff, is there any evidence which sustains the plaintiffs burden of proving the unfair competition charged in the bill.

As already noted, in addition to the question of unfair competition, this case, involves issues of infringement of a trademark registered under the Trade Mark Act of 1905, as amended, 15 USCA § 81 et seq. —copyright infringement as well as infringement of a design patent.

The trade-mark registration which is the predicate for this suit is No. 206,438 of December 1, 1925, issued in the name of O. B. North & Co., Incorporated. The mark is the representation of an arrow and is used for various articles of saddlery hardware. The arrow is a long, slender arrow inclined at an angle of 45° from horizontal and points to the upper right-hand corner. The mark as used by O. B. North & Co., Incorporated, almost always had either the letters O. B. N. & Co. superimposed, or else the name of O. B. North & Co. superimposed or running along the shaft of the arrow, or subsequently, when acquired by the plaintiff, it had the name North & Judd along the shaft of the arrow.

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Bluebook (online)
11 F. Supp. 739, 1935 U.S. Dist. LEXIS 1455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-judd-mfg-co-v-krischers-mfg-co-ctd-1935.