Sinko v. Snow-Craggs Corporation

105 F.2d 450, 42 U.S.P.Q. (BNA) 298, 1939 U.S. App. LEXIS 3346
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 7, 1939
Docket6832
StatusPublished
Cited by38 cases

This text of 105 F.2d 450 (Sinko v. Snow-Craggs Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinko v. Snow-Craggs Corporation, 105 F.2d 450, 42 U.S.P.Q. (BNA) 298, 1939 U.S. App. LEXIS 3346 (7th Cir. 1939).

Opinion

KERNER, Circuit Judge.

John Sinko and the Sinko Tool and Manufacturing Co. (hereafter called the “plaintiff” or “Sinko”) brought this suit charging the Snow-Craggs Corporation (hereafter called the “defendant” or “Cragg”) with the infringement of a design patent and unfair competition. Having acquired jurisdiction of these issues (which were based on substantially the same facts), and properly so, the District Court decreed the patent invalid as an anticipation of the prior art, and determined the unfair competition issue in favor of the plaintiff. See Hurn v. Oursler, 289 U.S. 238, 240, 246, 53 S.Ct. 586, 77 L.Ed. 1148; Armstrong Paint and Varnish Works v. Nu-Enamel Corp., 305 U.S. 315, 324, 59 S.Ct. 191, 83 L.Ed. 195. From the decree enjoining the defendant from placing knobs (for steering wheel spinners) on the market which were substantially the same as those of the plaintiff, the defendant prosecutes this appeal.

•The complaint charged that Sinko had been marketing the knobs with distinctive markings and color combinations, and that Cragg had copied these markings and color combinations, so as to deceive the public and Sinko customers into believing that they were the knobs of Sinko. There was no other charge of misleading or fraudulent trade practice.

Among other things Sinko and Cragg were organized for the purpose of engaging in the manufacture and sale of auto accessories. The particular accessories in question are knobs, plain and ornamental, which are used either as handles for gear shift levers or as spinner attachments for steering wheels. A spinner enables the driver of an automobile to grasp the knob and to rotate the steering wheel without gripping the rim of the wheel.

Long prior to 1936, and so the record shows, plain knobs, round or fluted, were on the market and in general use. These knobs, used as parts of auto accessories, were identical in shape and size to the knobs in question. It was Sinko’s practice to purchase knobs in rough form from the American Catalin Corporation and other molders of Catalin balls, and then to convert the rough balls into finished products by boring, threading, and polishing.

In 1936 Sinko and Cragg were selling plain knobs, round and fluted, to retail dealers of the trade. During 1936 Sinko came out with the jeweled knob, round and fluted, which added to the previous plain knob a colored button or jewel embedded therein and a tiny metal collar or bezel surrounding the jewel. The District Court found, and the evidence is not inconsistent, that the jewel served no utilitarian or structural function except to enhance the beauty of the knob. The record does point out, however, that jewels and bezels were known to the art long prior to 1936 and had been used previously by the trade in connection with automobile cigar lighters and dash-light guards. In this regard, it was Sinko’s practice to order the button or jewel from the Automatic Paper Button Company and to make the bezel itself.

Sinko’s ornamental knob, attractive and neat, soon pleased the public and created a great demand. Aware of this public demand for jeweled knobs, Cragg in the fall of 1936 decided to satisfy part of the demand. Going first to Sinko, Cragg requested it to supply the jeweled knobs. Disagreeing as to terms and arrangement, Cragg began to make and sell jeweled knobs itself. In the meantime Sinko had taken out a design patent on the jeweled knob, the patent decreed invalid below and not appealed from. Early in 1937 Sinko notified Cragg that its present business conduct infringed the Sinko patent. Thereafter, Cragg omitted the use of the bezel in its manufacture and sale of the ornamental knobs.

Only a casual inspection of the exhibits in the instant case is needed to disclose the fact that Cragg went very far in imitating Sinko’s product. Cragg put on the market knobs so resembling Sinko’s in details of structure, coloring and ornamentation as to make the two competing articles almost indistinguishable. With several exceptions, the simulation of Sinko’s whole article in non-essential as well as essential features was practically complete. This similarity accounted for the two instances where retail dealers in the trade became confused as to the origin of manufacture.

In other words, we have here a case where the second comer imitates the article substantially, in effect producing a facsimile of the first comer’s whole article. The reproduction is not a Chinese example, *452 because the bezel was omitted, the spring beneath the jewel was not inserted, Cragg’s corporate name, origin of manufacture and trademark was imprinted on the spinner bracket attachment, and the brackets were dissimilar.

Nor did Cragg make an effort to imitate the packages (in which the knobs were enclosed), Cragg’s knobs being enclosed in boxes bearing the notation “Cragg Steering Wheel Spinner and- Control.” Moreover, Cragg did not use the name “Sinko” in any way in advertising or selling. That is to say, this is a case where nothing is involved except the copying of the article itself. This is a case where there are lacking other features unfair in character, such as the simulation of the design on labels, the copying of the form and shape of the container, and the similarity of the appearance, position, and spelling of the trade-marks.

The law of unfair competition stresses business integrity, encourages legitimate trading, and protects good will against spoliation. However, it is not true that all acts done in the trade, which the average • person would describe as unfair, are actionable. “As a manufacturer, one has a perfect right to make any article of commerce not covered by a patent monopoly * * *. As .a distributor, however, he must respect those methods of honest and upright dealing which forbid one competitor from adapting practices which are now well understood to be unfair or fraudulent.” William H. Keller Inc. v. Chicago Pneumatic Tool Co., 7 Cir., 298 F. 52, 57, certiorari denied, 265 U.S. 593, 44 S.Ct. 637, 68 L.Ed. 1196. The existence of a right of action depends upon the peculiar facts of each case, turning on whether what is done by one person to get the business of another is done unfairly, i. e., by means that involve fraud or deceit.

In other words, equity will protect the honest, and restrain the dishonest, trader. The general rule in these cases has been admirably stated in Enterprise Mfg. Co. v. Landers, 2 Cir., 131 F. 240, 241, in this way:

“ * * * a court of equity will not allow a man to palm off his goods as those of another, whether his misrepresentations are made by word of mouth, or, more subtly, by simulating the collocation of details of appearance by which the consuming public has come to recognize the product of his competitor.”

That is to say, the doctrine underlying unfair competition cases is to restrain deceitful and fraudulent competition in whatever garb of misrepresented identity it assumes.

In the instant case Sinko, by adding a “nonfunctional” jewel, has produced a knob which is particularly desirable in the eyes of the purchasing public. Since Sinko’s design patent on this article has been

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Bluebook (online)
105 F.2d 450, 42 U.S.P.Q. (BNA) 298, 1939 U.S. App. LEXIS 3346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinko-v-snow-craggs-corporation-ca7-1939.