Rock Spring Distilling Co. v. W. A. Gaines & Co.

246 U.S. 312, 38 S. Ct. 327, 62 L. Ed. 738, 1918 U.S. LEXIS 1550
CourtSupreme Court of the United States
DecidedMarch 18, 1918
Docket58
StatusPublished
Cited by15 cases

This text of 246 U.S. 312 (Rock Spring Distilling Co. v. W. A. Gaines & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rock Spring Distilling Co. v. W. A. Gaines & Co., 246 U.S. 312, 38 S. Ct. 327, 62 L. Ed. 738, 1918 U.S. LEXIS 1550 (1918).

Opinion

Mr. Justice McKenna,

after, stating the case as above, delivered the opinion of the court.

The decree of the Circuit Court for the Eastern District of Missouri, directed by the decision of the .United States Circuit Court of Appeals for the Eighth Circuit, *317 is pleaded in bar, and whether it is such depends upon the issues that were made or passed upon in those courts.

The bill of complaint in the case alleged that in 1835 one James Crow (he is the James Crow of this suit) invented and formulated a novel process for the production of whiskey which he did not patent or seek to patent but kept for his own use until his death in 1855.

During all of the time after 1835 the whiskey so produced was known and styled as “Old Crow” whiskey and the designation was adopted and used as a trademark.

After the death of Crow one'William F. Mitchell, to whom Crow had communicated his secret process, continued the distillation so designated, and in 1867 a partnership, styled Gaines, Berry & Co., obtained possession of the distillery wherein the whiskey distilled by the indicated process continued to be produced by the same process until the partnership was succeeded by W. A. Gaines & Co., and the latter company succeeded also to all of the partnership assets of the other and continued to produce the whiskey until the incorporation of the complainant, when all these assets were acquired by it.

When the nan^e “Old Crow” was applied by Crow, it was a valid trademark, and since its adoption it has always been applied to the whiskey produced by the indicated secret .process, and since that time has indicated to the public whiskey distilled on Glenn’s Creek, in Woodford County, Kentucky, and nowhere else.

Complainant caused the same to be registered in the Patent Office under the provisions of the act of Congress so providing. The value of the trademark is $500,000 and an integral part of the good will of complainant’s business, and the whiskey is of greater value than any other of equal age.

Since January, 1903, the defendants, in violation of complainant’s rights and good will, have made or caused to *318 to be made and sold in the City 'pf St. Louis a certain spirituous or alcoholic fluid not made under complainant’s process and have labeled it with the words “Old Crow” without license from the complainant and against, its consent. Such unlawful use will greatly lessen the value of complainant’s business and good will, and complainant is without adequate remedy at law.

There was the usual prayer for an accounting and an injunction.

There was a supplemental bill to the same effect, but charging that A. M. Heilman & Co. had become the successors of the original defendants and had continued the acts alleged in the original bill.

To the bill the defendants answered, with denials, and alleged the use of the words “Crow,” “Old Crow” and “J. W. Crow” in connection with their own business upon packages of whiskey and in their and their predecessor’s business from .1863 and prior thereto; that the whiskey sold by complainant was an unrefined, harmful and deleterious article and that the whiskey sold by them was a brand largely free from impurities.

The defendants also filed a cross bill which, however, was not insisted upon.

These, then, were the issues, and upon them and the evidence adduced to sustain them the Circuit Court entered a decree establishing complainant’s right to the word “Old Crow” as a trademark, enjoined the use thereof by defendants and found them guilty of unfair competition in business and ordered an accounting. The Circuit Court of Appeals reversed the decree.

The latter court made a careful review of the evidence, denominating it a mass of the'relevant and irrelevant, and felt that it was not necesskry to consider the comparative excellence of the whiskeys, and remarked that the evidence did “not show that Glenn’s Creek in any way entered into the composition of the whiskey” $nd that *319 “there was no secret about the process employed by Crow nor did it differ materially from that employed by every other distiller of the same period.” To the objection that the “designative words” were rarely used by the Heilmans and that their product was of inferior quality, the court replied that the right to use could not be measured by the extent to which the Heilmans employed it, “whether more or less frequently,” nor “by the overshadowing comparative amount of the complainant’s [Gaines & Company’s] sales under the designation of ‘Old Crow’ whiskey, nor by the asserted superiority of its product.”

The court concluded as follows: “(1) That inasmuch as the defendants’ predecessors in business, prior to the use or the adoption of the designative word ‘Crow,’ or the words ‘Old Crow,’ as a trademark, employed those words in descriptive terms in connection with their business as dealers in whiskey in St. Louis, Mo., and said predecessors and the defendants so continued to use the same, to a limited extent, up to the time of the institution of this suit, in good faith, they are not guilty of infringing the complainant’s claimed trademark; and (2) that the defendants are not guilty of having engaged in unfair" competition with the complainant in the prosecution of their business.”

It will be observed that the issues in that case were the same as those in the present case as to the right to the use of the word “Crow” with any of its qualifications. But in this case there is another ground of recovery alleged, that is, the application for and the receipt of the certificate of registration for the word as a trademark for straight rye and straight bourbon whiskey. The District Court, however, adjudged thát the decree of the Circuit Court in Missouri directed by the Circuit Court of Appeals constituted a bar to this suit To the. judgment of the Circuit Court of Appeals of the *320 Sixth Circuit, reversing the action of the District Court, this certiorari is directed.

.The Circuit Court of. Appeals, however, did not yield to air of the views of the Gaines Company. .It refused, to decide, as urged to do, that the defendants in this suit were not in privity with the defendants in the other, and it rejected the contention that the use of the trademark established in the Heilman Company for a blended whiskey was not an adjudication of the right to use it upon a straight whiskey. In the rulings on both contentions we concur. The first needs no comment; we adopt that of the court on the second. The court said that “whatever the extended classifications and subclassifications of the Patent Office practice may contemplate, neither the common law nor the registration statute can intend such confusion as must result from recognizing the same trademark as belonging to different people for different kinds of the same article.

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Bluebook (online)
246 U.S. 312, 38 S. Ct. 327, 62 L. Ed. 738, 1918 U.S. LEXIS 1550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rock-spring-distilling-co-v-w-a-gaines-co-scotus-1918.