Perlberg v. Smith

62 A. 442, 70 N.J. Eq. 638, 1905 N.J. Ch. LEXIS 13
CourtNew Jersey Court of Chancery
DecidedDecember 4, 1905
StatusPublished
Cited by7 cases

This text of 62 A. 442 (Perlberg v. Smith) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perlberg v. Smith, 62 A. 442, 70 N.J. Eq. 638, 1905 N.J. Ch. LEXIS 13 (N.J. Ct. App. 1905).

Opinion

Garrison, V. 0.

The proofs, so far as they are pertinent to the decision, show that Edward Perlberg, in the year 1898, opened a shoe store at No. 2 Newark avenue, in Jersey City. He had not been in the shoe business prior to that time. His name did not appear upon any sign, and the sign that he adopted had upon it the words “The Eagle Shoe Store.” Upon.the windows of his store he had painted the representation of an eagle with outstretched wings, bearing in its claw a shoe. This picture, with the addition of a streamer proceeding from the beak of the eagle, upon which were the words “Eagle Shoes,” constituted the label adopted by the complainant and subsequently filed by him in the patent office.

[640]*640The proofs are indefinite as to whether he ever placed this ' complete label upon any of the goods sold by him, but if he did, its use was early discontinued, and no part of his present claim rests upon the use by him of this label.

He advertised very extensively in the local newspapers and by handbills, always referring to his store as “The Eagle Shoe Store,” and always calling attention to the shoes that he sold under the name of “Eagle Shoes.”

There is abundant proof that shoe stores in many other places had adopted the name “Eagle Shoe Store” long prior to the time that the same was adopted by the complainant for his store. The proofs are also perfectly clear that the word “eagle,” in connection with shoes, has been at various times and in various places, by manufacturers and local dealers, used to designate shoes sold by them, and that it was so used long prior to the time that Perlberg went into the shoe business. In some instances the words “Eagle Shoes” were placed upon the shoe when made by the manufacturer, and in others they were placed thereon by the local dealer himself. Those that'were marked by the manufacturer were sold either directly to the retailers or were sold to jobbers and by them sold to retailers, or were sold at auction to whomsoever would buy.

The defendant, Smith, for at least eighteen years has been in the shoe business in Jersey City, his store now being at No. 90 Newark avenue, in said city. This is near where Perlberg opened his store. Just prior to the filing of the bill in this cause it is proven that Smith placed placards upon the outside of his store announcing a sale of “Eagle Shoes,” with the prices stated. The shoos thus advertised were made by Taylor, a manufacturer, who had marked them “Eagle Shoes,” and were sold to Smith through a jobber named Young. They had upon the sole a representation of an eagle and the name “Eagle Shoes,” together with the price. They also had upon the back strap the name “Eagle Shoes,” with the price.

The complainant alleges that Smith’s reason for advertising the sale of “Eagle Shoes” was to revenge himself upon Perlberg because of a real or fancied grievance that he had against Perl-berg with respect to the agency for the sale of shoes named [641]*641“Queen Quality Shoes.” ■ I believe Smith displayed the placards announcing the sale of the Eagle shoes he had to catch some of the custom attracted by Perlberg’s advertising. Smith testifies, and it is not disputed, that for more than eleven years, on and off, he had sold different shoes from different sources of manufacture which, in one way or another, were designated as “Eagle Shoes”—that is to sa3r, either on the carton in which the shoes-were contained, or on the back strap of the shoes, or on the sole thereof, they were marked or designated as “Eagle Shoes.”

The bill was evidently framed upon the theory that the complainant had a technical trade mark or label, and that this right was infringed by the defendant.

The trade mark or label claimed in the bill by the complainant was that which he filed in the patent office, and which has been heretofore described. The undisputed proofs show that the complainant, if he ever placed this trade mark upon shoes sold by him, long since abandoned the use of the same, and contented himself with placing the words “Eagle Shoes” upon the back strap of each of the shoes sold by him.

There was not the slightest attempt on the part of the complainant to prove that he was the “sole and exclusive agent for the sale of said ‘Eagle Shoes,’ ” as he pleaded in his bill that he was, or that, as a fact, there was any proprietary shoe called “Eagle Shoe” sold by him as agent.

There is no pretence in the proofs of showing that the defendant in any way simulated the label claimed by the complainant. There is ample proof that other dealers in shoes, prior to the adoption by the complainant of the aforesaid label, had adopted similar .labels for shoes, using almost the same design and the same words.

The complainant obtained no rights which he may enforce in this suit by virtue of filing his label in the patent office. It has been settled by the supreme court of the United States that there is no power in the congress to legislate with respect to trademarks, so far, at least, as concerns commerce within the boundaries of a state. United States v. Steffens, 100 U. S. 82; 25 L. Ed. 550.

[642]*642The complainant, at the argument, very properly abandoned the issue based upon the claim of any exclusive right, and did not claim that he had a technical trade mark which had been infringed. He shifted his ground to a charge of unfair competition. There is a very grave question whether the complainant, by abandoning so much, has not abandoned all. Whatever his rights might be as the owner of a technical trade mark, or as the user of a mark adopted by him which another would not, to his damage, be permitted to simulate, there is a very serious question as to whether he may proceed against another who is not charged with simulating the design or mark of the complainant, but is merely charged with using words which appeared in the complainant’s trade mark, but which were equally open to use by the complainant and the defendant. Corbin v. Gould, 133 U. S. 308; 33 L. Ed. 611.

But I do not desire to rest my determination upon this sole point, and I therefore pass to the consideration of the charge of unfair competition.

Stripped of extraneous matter, the complainant’s contention urged upon the court was that for seven years he had called .all the shoes sold in his store “Eagle Shoes,” and had marked upon the back straps of each of such shoes the words “Eagle Shoes;” that he had spent large sums of money in advertising the shoes sold by him, referring to such shoes in his advertisements as “Eagle Shoes;” that his place of business was close to that of the defendant, and that the defendant displayed placards announcing the sale of “Eagle Shoes,” and that this was unfair competition as against the complainant.

Care must be taken in these cases not to extend the meaning of the word “unfair” to cover that which may be unethical but is not illegal. It may be unethical for one trader to take advantage of the advertising of his neighbor, but his so doing would in many instances be entirely legal. If one dealer advertises extensively and'at great expense the sale of a staple article, •or of any article which he has not the exclusive right to vend, his neighbor may undoubtedly endeavor to cause the customers attracted to the neighborhood by the advertising to purchase the [643]

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Cite This Page — Counsel Stack

Bluebook (online)
62 A. 442, 70 N.J. Eq. 638, 1905 N.J. Ch. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perlberg-v-smith-njch-1905.