Pinaud, Inc. v. Huebschman

27 F.2d 531, 1928 U.S. Dist. LEXIS 1344
CourtDistrict Court, E.D. New York
DecidedJanuary 30, 1928
Docket2966
StatusPublished
Cited by10 cases

This text of 27 F.2d 531 (Pinaud, Inc. v. Huebschman) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinaud, Inc. v. Huebschman, 27 F.2d 531, 1928 U.S. Dist. LEXIS 1344 (E.D.N.Y. 1928).

Opinion

INCH, District Judge.

Plaintiff complains that defendant has unlawfully appropriated and infringed certain trade-marks of plaintiff’s, and also alleges that an unfair competition is being carried on by defendant, to plaintiff’s injury.

Both the plaintiff and the defendant are residents of the same state, to wit, state of New York. This being undisputed, the defendant at the outset, and also at the end, of plaintiff’s case, moved to dismiss the cause of action for unfair competition.

While it has been stated that the “common law of trade-marks is but * * * the broader law of unfair competition” (see Hanover Milling Co. v. Metcalf, 240 U. S. 413, 36 S. Ct. 360, 60 L. Ed. 713), yet the distinction between the statutory law of trade-marks, so far as what may be termed a trade-mark suit and one for unfair competition is concerned, in regard to jurisdiction, is very important. A few of the many cases as to this distinction may be briefly considered.

Luyties v. Hollendeer (C. C.) 30 F. 632. The word “Kaiser” applied to mineral water. Wallace, J. (1878) : “Both parties are citizens of this state, and for that reason this court can entertain jurisdiction only upon the theory that the complainants have a valid trade-mark in the word registered, pursuant to the Act of Congress of March 3,1881, and no relief can be granted because of any unlawful competition in trade by the defendants with the complainants. The question, therefore, is whether the complainants have the exclusive right to appropriate the word ‘Kaiser’ as a trade-mark for natural mineral water.” The bill was dismissed.

“It is probably true that, where a federal question is involved, the court is justified in adjudicating upon all questions growing out of the transaction involved.” Coxe, J., Goldstein v. Whelan (C. C.) 62 F. 124. This was a ease showing an invalid trade-mark, but a clear ease of unfair competition. Jurisdiction was denied.

“Complainant seeks to rely upon other facts than the mere use by defendants of their own firm initials, ‘B. & S.’ He points out similarities in the form, size, and color of the drops, in the arrangement of the package, in the text and style of the directions for use, and other details tending, as he claims, to show an intent to deceive the purchasing public. It is apparent from the opinion of the judge who heard the case in the Circuit Court that it was these similarities which induced him to grant the motion for preliminary injunction. But these matters are immaterial to the question presented in this suit for the determination of a federal court. The complainant and defendants are all citizens of the same state. The federal court can take jurisdiction, therefore, only of the question whether the registered trade-mark declared upon has been infringed, and that trade-mark solely for the two letters ‘S. B.,’ without any designation of style or type, position on the cover, or association with other elements of dress or decoration.” Burt v. Smith, 71 F. 161, page 163 (C. C. A. 2). (Italics mine.)

“Unfair competition is distinguishable from the infringement of a trade-mark in this: That it does not involve necessarily the question of the exclusive right of another to the use of the name, symbol, or device. A word may be purely generic or descriptive, and so not capable of becoming an arbitrary trade-mark, and yet there may be an unfair use of such word or symbol which will constitute unfair competition.” Cole Co. v. American Co., 130 F. 703, page 705 (C. C. A. 7th).

“Unfair trade, we have seen, was referred to, and it was discussed also by the Circuit Court of Appeals, but it put it aside as an element of decision, because the court was, as it said, ‘without jurisdiction to grant relief,’ as the right of the Elgin Watch Company arose under the act of Congress, and was limited by the act to recovery of damages for the wrongful use of a trade-mark, or to a remedy according to the course of equity, ‘to enjoin the wrongful use of said trade *533 mark used in foreign commerce or commerce with the Indian tribes.’ The remedy in equity for fraud, it was said, existed before the statute and was not given by it, and that the federal court would have no jurisdiction of it except between citizens of different states. [Illinois Watch Case Co. v. Elgin Nat. Bank] 94 F. [667], 671.” Standard Paint Co. v. Trinidad Asph. Co., 220 U. S. 446, page 458, 31 S. Ct. 456, 459 (55 L. Ed. 536).

“The question presented by this litigation is therefore this: To what measure of relief is one entitled who owns as a valid trade-mark a word which before registration under the statute he could not protect at law, without invoking the doctrine of Tin-fair competition? It is to be regretted that sharp distinction was ever drawn between that trespass on property rights called trademark infringement, and the exactly similar trespass commonly spoken of as unfair competition, but, since the distinction has not only become well known, but been made a basis for limiting jurisdiction, it is necessary here to find infringement of trade-mark according to strict rules, if complainant is to be entitled to any relief.

“Trade-mark infringement is the use by defendant for trading purposes, and in connection, with goods of the kind as to whiehl complainant’s exclusive right exists, of a mark identical with complainant’s, or color-ably resembling it. The wrongful imitation need not he exact or perfect, hut may he limited or partied. McLean v. Fleming, 96 U. S, 245, 24 L. Ed. 828; Saxlehner v. Eisner, etc., Co., 179 U. S. 19, 21 Sup. Ct. 7, 45 L. Ed. 60.” Thaddeus Davids Co. v. Davids (C. C.) 190 F. 285, pages 286, 287. (Italics mine.)

“Plaintiff argues, however, that there is another reason for retaining the bill. He has in good faith charged infringement. Over that charge this court has jurisdiction, and it should proceed to pass on all the questions involved. If, after hearing all the evidence, it is satisfied that, while the defendant has not infringed the trade-mark, he has. unfairly competed, it should give complete relief hy enjoining the further prosecution of such, unfair competition. This contention rests upon a confusion between the consequences of limitations upon the powers of courts of equity as such, and the restrictions imposed upon the jurisdiction of the federal courts, whether of law or of equity, by the Constitution and Statutes of the United States.

“A court of equity, whose jurisdiction has been invoked to give relief which'only such court is competent to furnish, may sometimes, after it has heard the whole case, be of opinion that justice and right can be best done by confining the relief given to something which might have been obtained from a court of law. Such relief the chancellor may award, although if the bill originally had sought that, and nothing more, he must have declined jurisdiction. But a federal court cannot decide a controversy to which the judicial power of the United States does not extend merely because plaintiff has mistakenly assumed that some federal right of his has been infringed.

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Bluebook (online)
27 F.2d 531, 1928 U.S. Dist. LEXIS 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinaud-inc-v-huebschman-nyed-1928.