Philadelphia Storage Battery Co. v. Mindlin

163 Misc. 52, 296 N.Y.S. 176, 1937 N.Y. Misc. LEXIS 1270
CourtNew York Supreme Court
DecidedMay 10, 1937
StatusPublished
Cited by32 cases

This text of 163 Misc. 52 (Philadelphia Storage Battery Co. v. Mindlin) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Storage Battery Co. v. Mindlin, 163 Misc. 52, 296 N.Y.S. 176, 1937 N.Y. Misc. LEXIS 1270 (N.Y. Super. Ct. 1937).

Opinion

Shientag, J.

Plaintiff, a manufacturer of radio sets, storage batteries and associated products, seeks an injunction pendente lite restraining defendant from using its nationally celebrated brand Philco ” in connection with the sale of razor blades. Plaintiff has never manufactured or sold razor blades, and so far as appears from the papers, has no present intention of entering that field of endeavor. Defendant offers no explanation for its adoption of a mark which has been so widely and successfully exploited in other fields by plaintiff. The motion thus presents for determination the interesting question as to whether the use of a famous brand on a non-competing product constitutes an actionable infringement of a common-law trade-mark. Despite the registration of the mark in the United States Patent Office, this court has jurisdiction over the suit. (U. S. Code, tit. 15, § 103; Kayser & Co. v. Italian Silk Underwear Co., 160 App. Div. 607.)

The tendency of the courts, at an earlier time, was to confine the protection of a trade-mark to the product on which, and the territory in which, it had been used. This court recently reviewed the precedents relating to the territorial scope of trade-mark protection, and in passing touched upon the cognate problem which is now presented. (Maison Prunier v. Prunier’s Restaurant & Cafe, Inc., 159 Misc. 551.) It pointed out that “ courts generally have come to recognize that actual competition in a product is not essential to relief under the doctrine of unfair competition. Whatever may have been the ancient rule, it is now clearly established that the two products need not be competitive.” To paraphrase the much-quoted and classic dictum of Denison, J., the word “ unfair ” rather than “ competition ” should be underscored in any judicial definition of unfair competition. (Vogue Co. v. Thompson-Hudson Co., 300 Fed. 509, 512. See, also, Wayne County Produce Co., v. Gordon-O’ Neill Co., Inc., 249 App. Div. 743.)

But is every commercial use of a mark previously adopted by another necessarily unfair? There is no difficulty in so stigmatizing a use which results in a diversion of the plaintiff's custom and the deception of the public. “ The whole Law" and the Prophets on the subject,” says Learned Hand, J., is that one merchant shall not divert customers from another by representing what he sells as emanating from the second.” (Yale Electric Corp. v. [54]*54Robertson, 26 F. [2d] 972, 973.) But diversion of trade is not the only injury which may be caused by the second use. The normal potential expansion of the plaintiff’s business may be forestalled. (Long’s Hat Stores Corp. v. Long’s Clothes, Inc., 224 App. Div. 497; Forsythe Co., Inc., v. Forsythe Shoe Corp., 234 id. 355; modfd., 259 N. Y. 248.) His reputation may be tarnished by the use of his mark upon an inferior product. (Cf. Ford Motor Co. v. Cady Co., Inc., 124 Misc. 678, 681; modfd., 216 App. Div. 5 786; Eno v. Dunn, L. R., 15 A. C. 252, 258.) A false impression of a trade connection between the parties may be created, possibly subjecting the plaintiff to liability or to the embarrassments of litigation, or causing injury to his credit and financial standing. (Cf. Peninsular Chemical Co. v. Levinson, 247 Fed. 658; Akron-Overland Tire Co. v. Willys-Overland Co., 273 id. 674; Walter v. Ashton, L. R. [1902] 2 Ch. 282; Phillips v. Governor & Co., 79 F. [2d] 971; Buckspan v. Hudson’s Bay Co., 22 id. 721.)

The second use may generate confusion of source or of identities, without, however, engendering any immediate pecuniary loss to plaintiff. To postpone the granting of relief until actual injury could be proved would be to deprive the equitable remedy of its most valuable trait — the dispensation of preventive justice. Similarly, to condition relief on a demonstration of inferiority of product would be to convert the court into a laboratory for the testing of rival products and claims. (Cf. White v. Mellin, L. R. [1895] A. C. 154.) The second user is hardly a fit guardian of the good will symbolized' by the plaintiff’s mark. The court may properly presume that the confusion of source will be injurious and, therefore, wield its injunctive powers with despatch to prevent the infliction of harm. A merchant’s mark is bis authentic seal; by it he vouches for the goods which bear it; it carries his name for good or ill. If another uses it, he borrows the owner’s reputation, whose quality no longer lies within his own control. This is an injury, even though the borrower does not tarnish it, or divert any sales by its use; for a reputation, like a face, is a symbol of its possessor and creator, and another can use it only as a mask.” (Learned Hand, J., in Yale Electric Corp. v. Robertson, supra, at p. 974.) Where confusion of source is probable, an injunction should be forthcoming, whether the infringing use is jr upon a competing or non-competing product. A mark, it has been ; pointed out, is more than a symbol of existing good will or a mere commercial signature; it has a creative function; it serves as a i “ silent salesman ” to attract custom. The dilution of its selling : powers and “ the whittling away of its uniqueness ” by use on non-competing products constitutes a real injury for which there [55]*55should be redress. (Schechter, Rational Basis of Trademark Protection, 40 Harv. L. Rev. 813; Fog and Fiction in Trademark Protection, 36 Col. L. Rev. 60.) It was largely on this theory that Dore, J., in Tiffany & Co. v. Tiffany Productions, Inc. (147 Misc. 679; affd. by a divided court in 237 App. Div. 801; affd., 262 N. Y. 482) restrained the use of the name Tiffany, at the suit of the well-known jewelers, in connection with the defendant’s motion pictures. There was specific evidence of public confusion, but the court, in part at least, rested its decision on the broader ground.

The element of the possibility of confusion at source has been stressed in various decisions. The ambit of protection is constantly being widened. The adoption of “ Kodak ” for cameras precludes its use on bicycles (Eastman Photographic Materials Co. v. Griffiths Cycle Corp., 15 R. P. C. 105); “ Rolls-Royce,” the name of an automobile, may not be appropriated for radio tubes (Wall v. Rolls-Royce of America, 4 F. [2d] 333); “Times” as a brand for bicycles may be restrained by the proprietor of a newspaper bearing that name (Walton v. Ashton, L. R. [1902] 2 Ch. 282); “ Waterman ” as a mark for razor blades may be interdicted at the suit of the fountain pen company (Waterman Co. v. Gordon, 72 F. [2d] 272); the use of “ Dunhill,” the famous brand for smokers’ supplies, on shirts constitutes an infringement (Alfred Dunhill of London, Inc., v. Dunhill Shirt Shop, 3 F. Supp. 487); the same mark may not be used on liniment and soap (Omega Oil Co. v. Weschler, 35 Misc. 441; affd., 68 App. Div. 638), automobiles and tires (Hudson Motor Car Co. v. Hudson Tire Co., 21 F. [2d] 453), food products and oleomargarine (Del Monte Special Food Co. v. California Packing Corp., 34 F. [2d] 774); upon electrical appliances and spark plugs (Duro Co. v. Duro Co., 27 F. [2d] 339); upon cooking utensils and wash boilers (Aluminum Cooking Utensil Co. v. Sargoy Bros. & Co., 276 Fed.

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Bluebook (online)
163 Misc. 52, 296 N.Y.S. 176, 1937 N.Y. Misc. LEXIS 1270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-storage-battery-co-v-mindlin-nysupct-1937.