Soweco, Inc. v. Shell Oil Company, Etc. And Shell Chemical Company, Etc.

617 F.2d 1178, 207 U.S.P.Q. (BNA) 278, 1980 U.S. App. LEXIS 17074
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 30, 1980
Docket78-2590
StatusPublished
Cited by206 cases

This text of 617 F.2d 1178 (Soweco, Inc. v. Shell Oil Company, Etc. And Shell Chemical Company, Etc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Soweco, Inc. v. Shell Oil Company, Etc. And Shell Chemical Company, Etc., 617 F.2d 1178, 207 U.S.P.Q. (BNA) 278, 1980 U.S. App. LEXIS 17074 (5th Cir. 1980).

Opinion

GEE, Circuit Judge:

Slugs, larvae, nematodes, and rodents form the supporting cast in this trademark drama; the protagonists are the terms “Larvacide” and “larvicide.” Our etymological investigation of these entomological terms leads us to affirm in main the judgment of the careful trial court in this complex and demanding cause.

The trademark “Larvacide” was originally registered in 1927 by Innis, Speiden & Company (“ISC”) to designate fumigants for exterminating bugs, insects, slugs, and rodents. It is used today on similar products. After the initial term of registration expired, ISC reregistered the mark in 1951. At that time the trademark examiner found that the mark had become “distinctive of applicant’s goods”; in other words, the trademark had become “incontestable” within the meaning of the Lanham Act. See 15 U.S.C. § 1065 (1976).

After an intervening assignment, 1 Nor-Am Agricultural Products, Inc. (“Nor-Am”) acquired all rights in the mark “Larvacide” in 1957. Like its predecessors, Nor-Am sold tear gas composed primarily of chloropicrin under the “Larvacide” label as a grain fumigant for the control of bugs, insects, and rodents in grain elevators and bins. However, on August 13, 1970, Nor-Am notified its distributors that its “Larvacide” line of products had been discontinued and that orders could no longer be accepted. 2 “Lar-vacide” products nevertheless remained for a time on distributors’ shelves and continued to be sold. In its application for renewal of its “Larvacide” registration in April 1971, Nor-Am represented to the Patent and Trademark Office that “Larvacide” was “still in use in interstate commerce or in connection with fumigants intended for use as an exterminator of bugs, insects, slugs and rodents” and that the label submitted at that time “shows the mark as actually used on goods at the present time [April 5, 1971].”

In November 1973, Nor-Am assigned all of its rights in its “Larvacide” trademark to Southwestern Grain Supply Company (“Southwestern”), the predecessor in interest of plaintiff Soweco, Inc. (“Soweco”). 3 Since that time Soweco has marketed grain fumigants, like those sold by Nor-Am, under the label “Larvacide.”

*1182 Shell Chemical Company, a division of Shell Oil Company (“Shell”), manufactures two products alleged to infringe on Sow-eco’s trademark: (1) SHELL Poultry Spray & Larvicide and (2) RABON ® Oral Larvi-cide. Originally developed and marketed as two separate products, 4 SHELL Poultry Spray & Larvicide was first marketed in 1974. A liquid ordinarily used in spray form, this product can either be sprayed directly on birds to control mites and lice or sprayed on poultry droppings to inhibit the growth of larvae and maggots. Shell sells SHELL Poultry Spray & Larvicide to a small number of distributors (ten to twelve) who resell it to poultry farmers. RA-BON ® ! Oral Larvicide! is added to cattle feed to control fly larvae in manure. Developed in the late 1960’s and first sold in 1972, RABON ® Oral Larvicide is chiefly sold to feed companies for incorporation into their own brands of cattle feed. 5

In February 1976, Soweco brought suit against Shell, charging both trademark infringement and unfair competition under the Lanham Act, 15 U.S.C. §§ 1051 et seq. (1976), and unfair competition under state law. The district court granted plaintiff’s motion to bifurcate the issues of liability and damages. 6

Trial on the issue of liability was held in February 1978. After several days of testimony the district court submitted 25 special issues to the jury. 7 After a day of deliberations, the jury was unable to answer all of the questions unanimously. After receiving an Allen 8 charge, the jury returned a unanimous verdict on all issues the following afternoon. At plaintiff’s request, the judge polled the jury. Although several jurors initially indicated that the answers to one or more of the special issues did not reflect their individual judgments, they subsequently explained their actions and affirmed the unanimity of the jury’s answers. 9

Because the judge thought there was an “irreconcilable conflict between the jurors’ answers” to some of the special issues, he granted plaintiff’s motion for a mistrial and ordered a new trial. Subsequently, however, the court issued a memorandum opinion granting judgment for Shell on plaintiff’s Lanham Act claims and ordered cancellation of plaintiff’s trademark “Larva-cide” on the ground that the jury had found the mark to be a common descriptive name. 10 15 U.S.C. § 1064(c). With respect to the state law unfair competition claim, the judge granted a judgment n. o. v. for the defendant. Soweco appeals from the court’s determinations.

Trademark Infringement

Trademark cases often involve line drawing in areas that are inherently “fuzzy.” This problem is exacerbated in the instant case by the jury’s contradictory answers to some inartfully worded special issues and the judge’s subsequent attempts to reconcile those answers. For these reasons, it may be helpful to set out the basic principles of applicable trademark law 11 before turning to the jury’s findings and the judge’s conclusions.

*1183 Terms for which trademark protection is sought are customarily grouped into four categories: 12 (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or fanciful. Although meant as pigeon-holes, these useful labels are instead central tones in a spectrum; they tend to merge at their edges and are frequently difficult to apply. Vision Center v. Optics, Inc., 596 F.2d 111, 115 (5th Cir. 1979), cert. denied, — U.S. —, 100 S.Ct. 668, 62 L.Ed.2d 646 (1980).

A “generic” 13 term refers to “a particular genus or class of which an individual article or service is but a member,” id.; Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 9 (2d Cir. 1976); it suggests the “basic nature of articles or services.” American Heritage Life Insurance Co. v. Heritage Life Insurance Co.,

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Bluebook (online)
617 F.2d 1178, 207 U.S.P.Q. (BNA) 278, 1980 U.S. App. LEXIS 17074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soweco-inc-v-shell-oil-company-etc-and-shell-chemical-company-etc-ca5-1980.