Safeway Stores, Inc. v. Chickasha Cotton Oil Co.

180 F. Supp. 534, 125 U.S.P.Q. (BNA) 67, 1959 U.S. Dist. LEXIS 2304
CourtDistrict Court, W.D. Oklahoma
DecidedJuly 30, 1959
DocketCiv. No. 8038
StatusPublished
Cited by3 cases

This text of 180 F. Supp. 534 (Safeway Stores, Inc. v. Chickasha Cotton Oil Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Safeway Stores, Inc. v. Chickasha Cotton Oil Co., 180 F. Supp. 534, 125 U.S.P.Q. (BNA) 67, 1959 U.S. Dist. LEXIS 2304 (W.D. Okla. 1959).

Opinion

CHANDLER, Chief Judge.

Plaintiff, Safeway Stores, Incorporated, a Maryland corporation, brought this action against the defendant, Chickasha Cotton Oil Company, a Delaware corporation, seeking to enjoin the defendant from registering “Save Way” and the design utilizing such name in the U. S. Patent Office as a trade-mark for poultry and livestock feeds and to permanently restrain and enjoin the defendant, its officers, agents, and employees from using the name “Save Way,” or any similar name or designation similar to the word “Safeway,” in the conduct of defendant’s business. The jurisdiction of this court is invoked pursuant to Section 1121 of Title 15 U.S.C.A., and Section 1338(b) of Title 28 U.S.Code, and the amount in controversy, exclusive of interest and costs, exceeds $10,000.

Plaintiff, its predecessors and subsidiaries have since 1925 used the designation “Safeway” in commerce on a national basis as a trade name and trade-mark in its retail grocery business and in manufacturing and other related businesses. Since January 1, 1943, when plaintiff succeeded to all of the operations of its subsidiaries, it has operated its retail food stores under the trade name “Safeway.” Its operations involve the purchase, manufacture, storage, warehousing, retail distribution of food and household products, including produce, meats, fish, poultry, frozen foods, dairy products, and other articles of general use in the household. It also retails canned and packaged pet foods, animal block salt, and at its store in Ardmore, Oklahoma, has sold animal feed since May 19, 1958.

As of December 31, 1958, plaintiff was operating 1,936 retail stores in twenty-six states of the United States and the District of Columbia, all under the name “Safeway.” It has operated retail stores in Oklahoma and Texas since 1928 and 1929, respectively, and as of December 31,1958, had seventy-nine stores in Oklahoma, and 156 stores in Texas.

Plaintiff’s stock is listed on the national stock exchanges, and quotations are carried in newspapers throughout the nation under the name “Safeway.”

Plaintiff is the owner of the trademark “Safeway” for meats and poultry under U. S. Patent Office Registration No. 645211 issued May 7, 1957, and owns [536]*536five other federal registrations of the mark “Safeway,” all of which are valid. It also owns valid registrations of said mark in forty-two states.

The name “Safeway” is the distinguishing and dominant part of plaintiff's corporate name, and has always been prominently displayed in and about its stores and in its advertising. Plaintiff has spent large sums in advertising the name “Safeway” in newspapers, radio broadcasts, television broadcasts, and magazines, and through other media. Its net sales in Oklahoma and Texas alone for the past ten years have exceeded $1,-700,000,000, and in 1958 amounted to $266,847,926.

The name “Safeway” has become generally known to refer to plaintiff and its stores and related activities and is well and favorably known to the public. The fair and reasonable value of the good will of plaintiff and its business and the name “Safeway” was fixed by the evidence at between $5,000,000 and $7,750,-000 in Oklahoma and Texas alone.

Defendant was organized in 1919 and was for many years primarily engaged in the operation of cotton oil mills and a feed mill at Chickasha, Oklahoma, known as the Chic-O-Line Feed Mill, where it produced poultry and livestock feeds under the name “Chic-O-Line.” In February, 1957, defendant changed the name of the Chic-O-Line Feed Mill at Chickasha, Oklahoma, to the name “Save Way” Feed Mill and began selling its feed products under the trade name “Save Way.” At approximately the same time it initiated proceedings in the U. S. Patent Office to register the name “Save Way” as its trade-mark for poultry and livestock feeds. At the time defendant adopted this new trade name and initiated registration proceedings in the U. S. Patent Office, its principal officers and employees were well acquainted with the name “Safeway” and knew that it had been for many years widely advertised as plaintiff’s trade name and was associated generally by the public with plaintiff and its business. Defendant’s officers denied, however, any consideration or' thought was given to the name “Safeway” when it adopted the name “Save Way.” The principal reason advanced by defendant for adopting the new name was that it would better exemplify what defendant wanted to accomplish and what its feed would do.

On October 1, 1957, notice of defendant’s application in the U. S. Patent Office was officially published, and plaintiff immediately filed notice of opposition. On October 22, 1957, plaintiff wrote defendant and demanded that it immediately discontinue using the designation “Save Way,” or any other name confusingly similar to “Safeway,” and that it. withdraw its application for registration in the U. S. Patent Office. Plaintiff' instituted this action on May 20, 1958.

To advertise the change of name from Chie-O-Line to “Save Way,” defendant spent about one thousand dollars for two> ads in a trade journal, wherein it stated it was introducing a great new feed, so-new and so different that it would be sold in a brand new bag with a brand1 new name-—-“Save Way.” Actually there was very little difference in the feed sold under the name “Chic-O-Line” and that subsequently sold under the name “Save Way,” except that it did have a new name and was moré expensive. Up until receipt of plaintiff’s letter, wherein it was requested to refrain from further use of' the name “Save Way,” defendant spent approximately fourteen thousand dollars, for other forms of advertising, but thereafter its advertising expenses were very small. As of the date of trial, defendant was still using the trade name “Save Way” as well as its old trade name “Chic-O-Line” and an additional trade name-“Anchor Brand.” The volume of its sales was about the same as it had been immediately prior to the adoption of the new trade name “Save Way,” although, defendant’s sales force had been substantially decreased. The evidence showed that while defendant was formerly operating its feed business at a loss, at the time of trial it was realizing a profit* [537]*537■and this was attributable at least in part to the adoption of this specific new name.

The law governing trade-marks and trade-mark infringement is but a part of the broader field of law governing unfair competition in the use of trade-marks and trade names. Both involve questions which look to similar principles for decision. The problem of course arises when a newcomer copies or simulates the trade name or mark of another. In determining whether the action of the newcomer is unlawful and therefore subject to be enjoined, the test adopted by practically all courts is whether or not the names are so similar as to probably or likely cause confusion in the minds of ordinary purchasers, and actual confusion need not be shown. Spice Islands Co. v. Spice Lands Products, Inc., D.C.N.Y., 165 F.Supp. 92; 2 Cir., 262 F.2d 356; Abramson v. Coro, Inc., 5 Cir., 240 F.2d 854; Keller Products, Inc. v. Rubber Linings Corporation, 7 Cir., 213 F.2d 382

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180 F. Supp. 534, 125 U.S.P.Q. (BNA) 67, 1959 U.S. Dist. LEXIS 2304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safeway-stores-inc-v-chickasha-cotton-oil-co-okwd-1959.