Schneider v. Williams

44 N.J. Eq. 391
CourtNew Jersey Court of Chancery
DecidedMay 15, 1888
StatusPublished
Cited by1 cases

This text of 44 N.J. Eq. 391 (Schneider v. Williams) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schneider v. Williams, 44 N.J. Eq. 391 (N.J. Ct. App. 1888).

Opinion

Van Fleet, V. C.

This action is brought by three persons as members of a voluntary association called the Cigarmakers’ International Union of America.

The complainants sue on behalf of their fellow members, as well as themselves, alleging that the association consists of over ten thousand members, many of whom are unknown to them, but that if they knew the names of all, their number is so great that it would be impracticable to join them all as parties corm plainant. The action is brought to protect a right, which, it is alleged, is held in common by all the members of the association.

[392]*392The substance of the case made by the bill may be stated as follows: The Cigarmakers’ International Union is a voluntary association, composed of practical cigarmakers. It was formed for purposes of mutual protection, advantage and benefit. The bill says it was formed “ for the purpose of elevating the material, moral and intellectual welfare of the craft.” Its membership now embraces a large majority of all the skilled cigarmakers of the United States. It requires of each of its members faithful service to his employer, and, in consequence of the superiority of the workmanship of its members, they are employed uy a great many persons, engaged in the manufacture of cigars, at wages largely in excess of the wages paid to other cigarmakers, who are not members of the association. In order to compensate employers for the high rate of wages they were required to pay members of the association, and for the purpose of further inducing employers to employ its members, and also for the purpose of increasing the sales of cigars made by its members, the association, in September, 1880, adopted a trade-mark, consisting of a label, which any manufacturer of cigars, employing members of the association, is authorized to place on a box containing cigars made by a member of the association, and which label certifies on its face, that the cigars contained in the box to which it is affixed, were “made by a first-class workman, a member of the Cigarmakers’ International Union of America, an organization opposed to inferior rat-shop, coolie, prison or filthy tenement-house workmanship.” This label, at the time of its adoption, had not been previously used in this country or elsewhere, and since its adoption it has been the exclusive property of the association. As the label is a guarantee that the cigars contained in the box to which it is attached, have been manufactured by a skillful workman, and are not coolie, prison or tenement-house work, the sale of cigars thus marked, has, since the adoption of the label, largely increased, and they now command a higher price in the market than cigar's not thus distinguished, and so the exclusive right to use the label is now a very valuable right. The label has been counterfeited. The defendant, who is a manufacturer of cigars, and a wholesale and retail dealer therein, [393]*393but not a member of the association, nor an employee of its members, has obtained possession of a number of the counterfeit labels, and is now engaged in placing cigars, not made by members of the association, but marked with the counterfeit label, on the market, in violation of the rights of the complainants, and to the great injury of the public. The complainants ask for a decree restraining the defendant from using their trade-mark, or any imitation of it.

The defendant demurs. He denies that the facts above set forth show any cause of action. Taking the averments made in the bill to be true, it is manifest that nothing can be said in defence or even extenuation of the defendant’s conduct, in its moral aspects, for, whether the complainants have the legal right they claim or not, the facts stated in the bill show beyond dispute, that the deifendant is conducting his business, in such manner, as to deceive and cheat all who deal with him, by representing that to be true which he knows to be false. He is seeking to get gain by the use of a counterfeit token. But this court has no power to correct moral delinquencies, or redress mere moral wrongs. The complainants can have no relief at the hands of this court, unless their bill shows both a clear property right and an invasion of that right by the defendant. Unless their bill shows that they have property in the label or mark, which they say is the exclusive property of their association, they have no case. “ Imposition on the public,” in the words of Lord West-bury, “ occasioned by one man selling his goods as the goods of another, cannot be the ground of private action or suit. In the language of Lord Thurlow, in Webster v. Webster, 3 Swanst. 490, note, ‘ The fraud upon the public is no ground for the plaintiff’s coming into court.’ It is, indeed, true, that, unless the mark used by the defendant be applied by him to the same kind of goods as the goods of the plaintiff, and be in itself such that it may be and is mistaken in the market for the trade-mark of the plaintiff, the court cannot interfere, because there is no invasion of the plaintiff’s right; and thus the mistake of the buyers in the market, under which they, in fact, take the defendant’s goods as the goods of the plaintiff, that is to say, imposition on the public, [394]*394becomes the test of the property in the trade-mark having been invaded, and not the ground on which the court rests its jurisdiction.” Leather Cloth Co. v. American Leather Cloth Co., 4 DeG., J. & S. 137, 141. The rule, as thus stated, I understand to be the established doctrine now in force on this subject both in this country and in England.

The question to be considered is, Hoes the bill show a property right in the complainants and their fellow-members in the trade-mark in question ? This is, however, preceded by another, which is, How may property in a trade-mark, or a right to a trade-mark, be acquired? It would seem to be settled beyond question, that there can be no such thing as a trade-mark distinct from and unconnected with a vendible commodity. As the words themselves import, to make the thing selected or adopted answer the purposes of a trade-mark, it must be so used as to mark or distinguish something which is the subject of traffic — something which is bought and sold. It can have no existence as property or a thing distinct from and wholly unconnected with an article of traffic, for in that condition, while it might be the subject of traffic itself, it would be simply as a mark or name, and not as the distinguishing mark of some other article of traffic. It is only when it is affixed to or associated with some vendible commodity, so as to distinguish that particular commodity from others of the same class or kind, that it is possible for it to possess the essential quality of a trade-mark. The right in question-was defined by Lord Westbury, in Hall v. Barrows, 4 DeG., J. & S. 150, 158, to be “ the exclusive right to the use of some name or symbol as applied to a particular manufacture or vendible commodity.” And Mr. Justice Clifford, in a dissenting opinion, in Manufacturing Co. v. Trainer, 101 U. S. 51, 57, said : “Property in a trade-mark is acquired by the original application to some-species of merchandise or manufacture of a symbol or device-not in actual use to designate articles of the same kind or c|ass,. * * * the rule being, that he who first adopts such a trademark acquires the right to its exclusive use in connection with the particular class of merchandise to which its use has been applied by himself or his agents.” And Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
44 N.J. Eq. 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schneider-v-williams-njch-1888.