Rosenberg Bros. v. Elliott

3 F.2d 682, 1925 U.S. Dist. LEXIS 889
CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 24, 1925
DocketNo. 3117
StatusPublished

This text of 3 F.2d 682 (Rosenberg Bros. v. Elliott) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rosenberg Bros. v. Elliott, 3 F.2d 682, 1925 U.S. Dist. LEXIS 889 (E.D. Pa. 1925).

Opinion

DICKINSON, District Judge.

The cause of action here, if there is one, is based upon the averment of a trespass upon the trade-mark rights of the plaintiff. The real question presented is one of some interest in itself, and is one the answer to which doubtless affects quite a number of the users of trade-marks.

The plaintiff is a manufacturer of what is known as “ready-made clothing.” The descriptive features of this name or phrase are always understood to include (and this is in accord with the fact here) only what is sometimes called “outer” clothing, and to be exclusive of hats, collars, cuffs, shirts, underwear, socks, and the like. The trade of the plaintiff is further strictly a wholesale trade.

The defendant, on the other hand, is a dealer selling only at retail and (so 'far at least as affects the averred cause of action) does not sell the line of “goods” which the plaintiff manufactures. The real point on which the controversy pivots may be best presented by the following fact statement:

The plaintiff owns and uses a trade-mark, which is also registered in the following forms:

“Fashion Park Clothes.”
“Fashion Park.”
“Tailored at Fashion Park.”

The only use which the plaintiff made of the trade-mark, and the only use which plaintiff had for it, was to mark or identify as its make overcoats, coats, vests, trousers, and the like kind of clothing manufactured by it. It was never used to mark or identify hats, nor did the plaintiff make hats.

The defendant, on the other hand, sold hats, and sold them with the name of “Fashion Park” on the lining, and advertised them by cards as “Fashion Park Hats.” He did not sell the line of clothing which plaintiff manufactured. The manufacturer of the hats which he did sell made application to register a trade-mark like that of plaintiff. The ultimate Patent Office finding was a refusal of the right to a registered trademark. An appeal has been taken or is impending to have this ruling reviewed as provided by law.

The real question is the extent or scope of the property right in a trademark. Does the exclusive right which the trade-mark owner has extend to any use of it, or is it limited to the same kind of use which he makes of it? Directed to the fact situation here presented, the specific question is (assuming the use of the trade-mark’ on clothing would be a trespass upon plaintiff’s trade-mark rights) whether marking hats in the same way would be a like trespass? We have mentioned the fact of a pending effort to have a trade-mark registered by the hat manufacturer.

The question thus presented is a quite different question from that here presented. The industry of counsel has brought to light a number of instances of the use of like trade-marks to identify manufactured products of a different kind or class. An analogous instance is that of the Stetson hat and Stetson clothes or shoes. It can be readily understood that one who has by merit or wide publicity made a good name for himself, or for that in which he deals, would resent the use of that name by another merely because it has advertising value. The feeling is not merely one of wounded vanity, but is that the second user has appropriated to his own selfish purposes that which has eost the first user good money, and to which the second has no claim of right. The real question is, however, whether there is in this any legal injury. If the first user has a property right in the name itself, the legal injury is clear. If, however,his sole right is one of protection to his trade in that in which ho deals, and there is no injury to that trade, it is difficult to grasp the thought of a legal injury.

The purchasing public may have confidence in a particular dealer, or think the things in which he deals to excel in quality, and yet not have the knowledge to enable them to tell upon mere inspection what are the “goods” of that dealer. It is helpful, in eon sequence,. to put upon them a sign manual. There is in the trade-mark law a policy of the law to protect the public as-well as to recognize a right of property in-1 the dealer. A trade-mark is thus a mark or symbol of origin, or of the source of supply of things in which one has a trade. It serves to identify and make known that which-he has for sale, and which may bo in demand because it emanates from him. It is a protection or guard against unfair competition. To such protection the owner of [684]*684the tradé-mark has a claim of right. Beyond this, however, the legal right does not extend. He has no exclusive right to engage in trade in any particular line of goods, nor by his trade-mark alone does he have the exclusive right to trade in any particular kind or style of goods. He has likewise no ownership in or exclusive right to use any mark or symbol, unless its use by others "may cause their goods to be mistaken for his. The line which marks the end of the danger of such a substitution marks the limits of his right.

Whenever one, at great expense to himself, creates a value f®r a name or a mark, he resents, as we have said, its appropriation and use by another. If any one has a property right in such mark, it is the one who was the creator of the value. The real question is whether any one has such property right. Assuming the manufacturer of an automobile to have a valid registered trade-mark in the mark or label “Packard Six,” if any unauthorized person sold another make.of automobile under that name, there would be no hesitation in making the finding of a violation of the trade-mark right. If, however, the sale wag not of an .automobile, but of a toy car, would this be a trespass upon the rights of the .owner of the trade-mark? Doubtless the maker of the automobile would think the toy ear to be a fairly good advertisement of his automobile, and not complain nor think any damage done to his trade. We are speaking, however, of the legal injury, not of the quantum of the damage. Would there be any legal injury? The maker of a watch, which was sold under the trade-name of the X watch, and who had given a high reputation to his watches sold under that name, might resent it as an encroachment if a manufacturer put out an automobile under the same name of X, and adopted as a trade slogan that his automobile was “built like a watch,” or, more, especially, “like an X watch.” If the autombbile was mechanically well built, the watch manufacturer might feel that his watch had been complimented. If the automobile was a poor job, its maker might be guilty of what was in a sense a. trade slander upon the watch.

In what 'view, however, could the use of the name X for an automobile be considered an infringement of a watch trade-mark? Wherein would be the danger of any purchaser mistaking an automobile for a watch ? By the same token, who would mistake a hat for an overcoat? The true view would seem .to be that one dealer" has as much right to the use of X as a trade-mark as another. Whether it is good policy to permit one person to register a trade-mark used by another, although to mark a different line of “goods,” is a wholly different question from that before us. The first user, however, cannot appropriate it, so as to confer upon himself the right to its sole or exclusive use. He has the right of appropriation, but it is sub modo only, and is limited and restricted to his use of it as a “mark” to designate that in which he deals, so that nothing else can be palmed off as his upon those who would otherwise buy that in which he dealt.

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Cite This Page — Counsel Stack

Bluebook (online)
3 F.2d 682, 1925 U.S. Dist. LEXIS 889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenberg-bros-v-elliott-paed-1925.