Quaker State Oil Refining Co. v. Steinberg

25 Pa. D. & C. 400, 1936 Pa. Dist. & Cnty. Dec. LEXIS 19
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJanuary 29, 1936
Docketno. 2667
StatusPublished

This text of 25 Pa. D. & C. 400 (Quaker State Oil Refining Co. v. Steinberg) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quaker State Oil Refining Co. v. Steinberg, 25 Pa. D. & C. 400, 1936 Pa. Dist. & Cnty. Dec. LEXIS 19 (Pa. Super. Ct. 1936).

Opinion

Parry, J.,

We have before us an adjudication in equity restraining the defendants from continuing the use of the trade name Quaker City for a motor oil on the ground that the plaintiff corporation, marketing oil named Quaker State, has acquired a superior if not exclusive right to the word Quaker as applied to motor oil and hence the defendants’ use of it constitutes unfair trade competition.

Upon careful consideration of the record and the law we are of the opinion that certain of the chancellor’s findings of fact are unwarranted by the evidence, that his conclusions of law cannot be sustained and that the decree must be reversed.

We think the word Quaker is a descriptive term not capable of exclusive appropriation by anyone and that it may be used by the world at large in an honestly descriptive and nondeceptive way. The use of truthfully descriptive terms may not in any case be absolutely prohibited, the first trader being entitled as against another only to such protection as will prevent such other from using the term to pass off his goods as those of the original appropriator: 63 C. J. 425.

Now the general rule appears to be that use of a descriptive word or term will not be enjoined where it has not acquired a secondary meaning and the dress of the defendant’s product is so unlike that of the plaintiff that the two will not be confused. The term Quaker City is everywhere taken as synonomous with Philadelphia -and appears to be honestly descriptive of a business established there. Neither is there any pretense that the [402]*402containers used by the defendants resemble those of the plaintiff. It was incumbent therefore upon the latter to show that the word Quaker had acquired the secondary meaning of Quaker State so that the confusion or deception of the public would result from the use by the defendants of the word Quaker in the term Quaker City.

The learned chancellor appears to have been misled by testimony showing the vast quantity of oil sold by the plaintiff, its numerous service stations, the immense sums it spends for advertising in publications of extensive circulation, the indefatigable efforts that it has made to extend its business and suppress competition and the magnitude of its operations as compared with the defendants. There is plenty of evidence in support of his findings in this regard but it is really beside the question in dispute.

It appears to us that the somewhat voluminous testimony relied on to support the plaintiff’s contentions is singularly inconclusive and does not afford a sufficient ground for the broad and positive findings of fact in the adjudication, upon which are based conclusions of law with which we are not altogether in accord. To discuss the findings at length would be unduly to extend this opinion and we shall state as briefly as we can our understanding of the facts and the applicable law and why we think the plaintiff’s proof does not entitle it to a decree.

It is undisputed that in 1914 the plaintiff or, rather its predecessors, placed upon the market a high-grade motor oil bearing the trade name Quaker State Medium Oil, particularly recommended to owners of Franklin air-cooled automobiles but also sold generally throughout the United States with a consistent increase in the volume of sales until today. As the plaintiff’s succession was admitted it is impossible to speak with strict accuracy as to the date, but it may be inferred from certain exhibits in the record that about 1919 the plaintiff sub[403]*403stituted on its containers and signs the name Quaker State Motor Oil, which it has used ever since.

It is likewise undisputed that the defendants in the year 1919 began the sale on a small scale of a high-grade motor oil to which they applied the name Quaker City. At first they dealt directly with automobile owners operating fleets of trucks, but in 1920 they started to sell their product through service stations and garages and have continued to do so in increasing volume, although their annual business of 140,000 gallons is still small as compared to the plaintiff’s 10,000,000 gallons.

The complaint concerns only the use of the word Quaker. There is no contention that the defendants’ product is not as good as the plaintiff’s or that they have simulated the plaintiff’s containers, labels or display signs, which are different in color and design. The suit is not for the infringement of any trade mark but is brought on the broad ground of unfair trade competition. In such cases equity intervenes not only in aid of the plaintiff whose business is or may be injured by unfair and fraudulent competition but also for the benefit of the public, who are entitled to reasonable protection from persons attempting to pass off their goods for another’s, whether of inferior quality or not: B. V. D. Co. v. Kaufmann & Baer Co., 272 Pa. 240; Scranton Stove Works v. Clark et al., 255 Pa. 23; Croft v. Day, 7 Beav. 84, 49 Eng. Repr. 994.

It is because of this policy of protecting the public interest that courts in other jurisdictions have, in cases of unfair competition as distinguished from trade-mark cases, restrained the use of a certain word although the plaintiff can claim no exclusive right to it. This view of the matter is explained by Bradford, J., in Dennison Mfg. Co. v. Thomas Mfg. Co., 94 Fed. 651, 659:

“The word may be purely generic or descriptive, and the mark or symbol indicative only of style, size, shape, or quality, and as such open to public use ‘like the adjectives of the language,’ yet there may be unfair com[404]*404petition in trade by an improper use of such word, mark or symbol. Two rivals in business competing with each other in the same line of goods may have an equal right to use the same words, marks or symbols on similar articles produced or sold by them respectively, yet if such words, marks, or symbols were used by one of them before the other and by association have come to indicate to the public that the goods to which they are applied are of the production of the former, the latter will not be permitted, with intent to mislead the public, to use such words, marks, or symbols in such a manner, by trade dress or otherwise, as to deceive or be capable of deceiving the public as to the origin, manufacture or ownership of the articles to which they are applied”.

If for the moment this be taken as an accurate statement of the law, the plaintiff must assume the burden of proving the existence of certain conditions with regard to the word Quaker: (1) prior use, (2) association by the public with the plaintiff’s product, (3) intent by the defendants to mislead the public by using the word, and (4) probability of such deception.

The first and third of these need not detain us, for a prior use is conceded and it has been held in Pennsylvania that intent to mislead need not be shown: Pennsylvania Central Brewing Co. v. Anthracite Beer Co., 258 Pa. 45, and cases therein cited.

The second has come to be referred to in the cases and textbooks as the doctrine of “secondary meaning”, and upon this the fourth condition appears to depend, for if the public has not associated a secondary meaning to the word its use can cause no deception.

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Related

Klepser v. Furry
137 A. 175 (Supreme Court of Pennsylvania, 1927)
Scranton Stove Works v. Clark
99 A. 170 (Supreme Court of Pennsylvania, 1916)
Pennsylvania Central Brewing Co. v. Anthracite Beer Co.
101 A. 925 (Supreme Court of Pennsylvania, 1917)
B. V. D. Co. v. Kaufmann & Baer Co.
116 A. 508 (Supreme Court of Pennsylvania, 1922)
Upjohn Co. v. Wm. S. Merrell Chemical Co.
269 F. 209 (Sixth Circuit, 1920)
Trimble v. Woodstock Mfg. Co.
297 F. 524 (W.D. New York, 1923)
Dennison Mfg. Co. v. Thomas Mfg. Co.
94 F. 651 (Circuit Court of Delaware, 1899)

Cite This Page — Counsel Stack

Bluebook (online)
25 Pa. D. & C. 400, 1936 Pa. Dist. & Cnty. Dec. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quaker-state-oil-refining-co-v-steinberg-pactcomplphilad-1936.