Spieker v. Lash

36 P. 362, 102 Cal. 38
California Supreme Court·Decided March 28, 1894·No. No. 18195·Published·Cited by 14 cases

Opinion

Vancliff, C.

Suit in equity to enjoin the infringement of a trademark and the diversion of the trade or custom of the plaintiff to whom had been transferred the goodwill of the business in which the trademark had been acquired and used.

The complaint contains two counts, the first alleging an infringement of plaintiff’s trademark and proprietary name, “Lash’s Kidney and Liver Bitters”; and the second, a cause of action for breach of warranty implied in a sale of the goodwill of the business, which included the manufacture and sale of said bitters.

In the year 1884 the plaintiff and defendant formed a partnership at Sacramento under the firm name of T. M. Lash & Co., in the purchase and sale of drugs and medicines, and the manufacture and sale of medicinal preparations.

In 1886 they made up a formula for a medicinal preparation of bitters principally intended to benefit the kidneys and liver, and gave it the name “Lash’s Kidney and Liver Bitters”; and thereafter the partnership of T. M. Lash & Co. built up a large and profitable [42] business in the manufacture and sale of that preparation. The preparation was not patented, but the firm registered a trademark thereof in the office of the secretary of state. In carrying on the business of the firm, Spieker remained at the store and attended to the business of manufacturing and filling orders for the bitters, while Lash traveled over the country advertising the bitters and securing orders therefor.

On November 9, 1889, the firm of T. M. Lash & Co. was dissolved by consent of the partners, and all the interest of Lash in the property of the firm was transferred by him to Spieker. It is alleged in the complaint, and admitted by the answer, and found as a fact by the court, that this transfer included the goodwill of the business. On October 31, 1889, T. M. Lash and his wife, Jennie Lash, transferred to Spieker the trademark of Lash’s Kidney and Liver Bitters,” together with the right to use the same, and covenanted to warrant and defend the same.

In July, 1890, T. M. Lash commenced, at Sacramento, to manufacture a preparation similar to Lash’s Kidney and Liver Bitters,” which he called “Dr. Web’s Liver and Kidney Bitters,” and soon afterwards formed a partnership with his wife under the name “ T. M. Lash & Co.” for the purpose of manufacturing and selling the same. On the back label of this preparation he thereafter described himself as “ T. M. Lash, manufacturer of Dr. Web’s, the only genuine, Liver and Kidney Bitters,” and notified the public to address all orders, “ T. M. Lash & Co., Proprietors, 923 K street, Sacramento, Cal.”

The court found, substantially, that the defendant began the manufacture and sale of the Web’s bitters with intent to injure the plaintiff’s business, and to detract from the reputation of Lash’s Kidney and Liver Bitters; that the preparations are very similar and composed mainly of the same ingredients, and that Web’s bitters, sold in the name of T. M. Lash & Go., were put up in bottles closely resembling the bottles in which [43] plaintiff was accustomed to put up “Lash’s Kidney and Liver Bitters,” and that defendant placed upon the bottles containing Web’s bitters labels which, in size and general appearance, very nearly resemble the labels placed by plaintiff on the bottles containing said Lash’s Bitters; that by these acts the defendants intentionally deceived the general public into the belief that the manufacture of the original Lash’s Kidney and Liver Bitters had been superseded by the same preparation under the name of “ Web’s, the only genuine, Liver and Kidney Bitters,” manufactured by “ T. M. Lash” and sold by “T. M. Lash & Co.”; that defendants, with intent to injure the goodwill of plaintiff’s business and to prevent the sale of “ Lash’s Kidney and Liver Bitters,” as manufactured and sold by plaintiff, and to induce the customers of plaintiff and of the former firm of T. M. Lash & Co. to patronize them under the same firm name, formed a pretended partnership under that name, and sought to supplant the Lash bitters manufactured by plaintiff with the Web’s bitters manufactured by T. M. Lash, and sold in the firm name of T. M. Lash & Co. to the patrons and customers of plaintiff, and sought to exchange Web’s bitters for Lash’s bitters, and to induce the public to believe that the Web’s bitters was the only genuine kidney and liver bitters, and have thereby intentionally drawn off from plaintiff to themselves a large number of plaintiff’s patrons and customers.

The judgment of the court was in favor of plaintiff, enjoining the defendants as prayed for in the complaint; and defendants have appealed from the judgment, and from an order denying their motion for a new trial.

While it is true that the words, “ kidney and liver bitters,” are merely descriptive of the thing manufactured, and therefore not the proper subject of .a trademark, yet the name of the maker, and every device in the form and contents of a label or wrapper affixed to denote that goods are manufactured, produced, compounded or sold by him, other than a name, word, or [44] expression denoting that the goods are of some particular class or description, are proper subjects of a trademark; and any person may secure the exclusive right to the use of such trademark or name, by filing with the secretary of state his claim to the same, and otherwise complying with section 3197 of the Political Code; and when the claimant has thus secured a trademark, or name, he may transfer the same and the right to the exclusive use thereof to another, and the property right so transferred will be protected from infringement by injunction. (Pol. Code, sec. 3199.)

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Spieker v. Lash, 36 P. 362, 102 Cal. 38 (Cal. 1894).

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