Riverbank Laboratories v. Hardwood Products Corp.

165 F. Supp. 747, 118 U.S.P.Q. (BNA) 194, 1958 U.S. Dist. LEXIS 3746
CourtDistrict Court, N.D. Illinois
DecidedJune 13, 1958
Docket54 C 300
StatusPublished
Cited by9 cases

This text of 165 F. Supp. 747 (Riverbank Laboratories v. Hardwood Products Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riverbank Laboratories v. Hardwood Products Corp., 165 F. Supp. 747, 118 U.S.P.Q. (BNA) 194, 1958 U.S. Dist. LEXIS 3746 (N.D. Ill. 1958).

Opinion

JULIUS J. HOFFMAN, District Judge.

This is a common-law action for unfair competition in which the plaintiff seeks to restrain the defendant from using the name “Riverbank” on sound insulating doors manufactured by defendant. Plaintiff also seeks damages for disparagement of its trade name. Federal jurisdiction is properly predicated upon diversity of citizenship, and the amount in controversy, exclusive of interest and costs, exceeds $3,000.

Plaintiff, Riverbank Laboratories, was founded in 1913 by one George Fabyan at Geneva, Illinois, as a not-for-profit sole proprietorship. In 1921, the proprietorship became a not-for-profit Illinois corporation. Initially, various areas of scientific and quasi-scientific endeavor were embraced by plaintiff: acoustics, electronics, genetics, cryptography, and Shakespearian studies involving the Shakespeare-Bacon controversy. However, since 1936, plaintiff has not engaged in genetics, cryptography or literary controversy.

The principal activity of plaintiff has been in the field of acoustical physics with acoustical and engineering divisions. The work of the engineering division has been devoted almost exclusively to tuning-forks and related electronic and electro-mechanical devices, and from June 13, 1954 (four months after the *750 instant action was filed) to June 15, 1956, the engineering division expanded its activity to embrace the development or improvement of sound insulating doors. Such work has been suspended since June 15, 1956.

Beginning in 1927, the engineering division, guided by the late Bert Eisenhour, Sr., contributed substantially to the development of an improved tuning-fork with a variety of acoustical, medical, electronic and electro-mechanical uses. These forks and related devices are manufactured and sold by plaintiff. The forks bear the stamped name “Riverbank Laboratories” with the exception of one type of fork known as “Eisenhour,” and the words “Riverbank Laboratories” appear on the packaging of forks and upon related commercial documents. The forks are unrelated to the building trade, and there is no evidence that any buyer of Riverbank tuning-forks was an architect, or was otherwise engaged in millwork or woodwork construction, building construction, or the manufacture of building materials. With the exception of certain listings, the engineering division does virtually no advertising, and its average yearly gross sales are approximately $250,000.

In addition to the manufacture and sale of tuning-forks and related devices, the engineering division engages in pure research and testing activities, and has set standards for scientific measurement which were unknown prior to the development of the improved tuning-fork at the plaintiff’s laboratories.

The activities of the acoustical division of the plaintiff began in 1918, when Fabyan built an acoustical laboratory for Professor Wallace Sabine, then head of the Physics Department of Harvard University. However, Professor Sabine died before he could assume any duties, and he was replaced by Dr. Paul Sabine who took charge of plaintiff’s acoustical-experimental activities. Plaintiff’s acoustical laboratory was the first laboratory devoted exclusively to acoustics and available for commercial testing of acoustical materials for sound insulation and sound absorption qualities. In 1933, The Acoustical Materials Association, comprising the principal manufacturers of acoustical materials in the United States, selected the plaintiff to perform all its official tests. The acoustical laboratory, at present completely operated by Armour Research Foundation, is now regarded as the best acoustical testing laboratory in the United States.

Certain of Dr. Sabine’s work culminated early in 1934 with the invention of a sound insulating door embodying a floating panel construction. Sabine applied for a patent in May, 1935, and the patent was issued on May 11, 1937. Plaintiff was given a one-half interest in the patent.

In 1934, following the invention of the door, Sabine invited Frederick Ludlow to aid in the commercial exploitation of the door. Ludlow had prior experience in the manufacture of doors. Ludlow and Sabine worked for approximately ten months attempting to fabricate model doors embodying Sabine’s invention. In October, 1934, the door was apparently ready for marketing, and arrangements were made to advertise the door in “Sweet’s Catalogue,” a national trade journal. The advertisement was paid for by plaintiff; advertising negotiations were handled by Sabine and Ludlow, purporting to act for plaintiff; and the door was advertised as:

“Riverbank Laboratories Sound Insulating Doors Geneva, Illinois
Riverbank Sound Insulating Doors A Laboratory Product”

This appears to be the first time that the door was denominated “Riverbank.” Pri- or to November 3, 1934, six doors were sold to Johns-Manville. However, the record is silent as to whether the doors were sold under the name of plaintiff or as a result of plaintiff’s reputation.

As early as November 3, 1934, Sabine and Ludlow contemplated some form of business structure through which the door could be marketed. On April 1, *751 1935, an informal partnership, the “Riverbank Insulating Door Company” (hereafter, “Door Company”), was formed, comprising as partners Sabine, Ludlow and plaintiff. A formal partnership agreement was executed on February 28, 1937, effective January 1, 1937. The record does not disclose the manner in which the partnership acquired the name “Riverbank,” but it may fairly be assumed that plaintiff consented to such use.

In October, 1935, the Door Company advertised the door in “Sweet’s Catalogue” as follows:

“Riverbank Insulating Door Co. Riverbank Laboratories Geneva, Ill.
Riverbank Sound-Insulating Doors”

Thereafter, neither the plaintiff nor the Door Company again advertised the door.

Prior to September 14, 1936, the Door Company (acting through Sabine and Ludlow rather than through plaintiff) marketed, but did not manufacture, the door, although on five occasions all or a part of the correspondence pertaining to sales was addressed to plaintiff. From late 1934 to September 14, 1936, no more than thirteen sales were consummated. During the same period, approximately sixty-three inquiries were received. However, there is no evidence that any sale was made or that any inquiry was received as a result of the reputation of the name “Riverbank.”

From March, 1935, to August, 1935, defendant, then and now a Wisconsin corporation, manufactured wood components and assembled doors for the Door Company. Defendant had manufactured doors since 1910, sound insulating doors since 1930, and was well regarded in the trade. From August, 1935, to September, 1936, defendant acted also as sales agent on a commission basis. During the period March, 1935, to September, 1936, defendant, through its officers and salesmen, materially aided the Door Company in the commercial exploitation of the Riverbank door. Also during this period, Sabine and Ludlow, acting for the Door Company, manifested a desire to turn over to defendant the commercial exploitation of the door. The activities of the Door Company, as noted above, produced, at best,

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165 F. Supp. 747, 118 U.S.P.Q. (BNA) 194, 1958 U.S. Dist. LEXIS 3746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riverbank-laboratories-v-hardwood-products-corp-ilnd-1958.