Travelers Insurance Machine v. Travelers Insurance

Court of Appeals of Kentucky

Travelers Insurance Machine v. Travelers Insurance

134 S.W. 877, 142 Ky. 523, 1911 Ky. LEXIS 224

CourtCourt of Appeals of Kentucky

DecidedFebruary 14, 1911

StatusPublished

Cited by2 cases

This text of 134 S.W. 877 (Travelers Insurance Machine v. Travelers Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Travelers Insurance Machine v. Travelers Insurance, 134 S.W. 877, 142 Ky. 523, 1911 Ky. LEXIS 224 (Ky. Ct. App. 1911).

Pincite

Opinion

Opinion of the Court by

Judge Lassing.

Reversing.

Tbe Travelers Insurance Machine Company was organized to manufacture automatic machines for the sale and delivery of policies of accident insurance. It is proposed by this company to rent its machines upon a royalty to an accident insurance company which its promoters have in process of organization. The accident insurance company is to be known as “The Daily Accident Insurance Company.” The Travelers Insurance Machine Company had been for some time advertising its business and the business of The Daily Accident Insurance Company, when ‘ ‘ The Travelers Insurance Company of Hartford, Connecticut,” sought to enjoin the Travelers Insurance Machine Company from using the name “Travelers Insurance” or the word “Travelers” ’ in connection with the word “Insurance” as a part of its name, or as a part of the name of any company con[524]*524neeted with it. The machine company defended upon the ground that the name “Travelers Insurance’’represented a distinct branch of insurance, and that the term “Travelers Insurance” is a descriptive or generic term, and that no one can acquire an exclusive use of the words as a trade name. The plaintiff proceeded upon the theory that the term “Travelers Insurance” was not a generic term, but a trade name which it had adopted as early as 1863, and that by reason of its long use it had become its exclusive property.

The chancellor, upon the pleadings and proof offered, was of opinion that the plaintiff was entitled to the relief sought, and granted the injunction. The machine company appeals.

It is not contended by appellee that its right to the use of the name “Travelers Insurance” is protected as a trade-name or trade-mark, as these terms are usually understood, but that the use of the term “Travelers Insurance” in connection with and as a part of its name by appellant is calculated to injure it in its business by bringing it into unfair competition with appellant. That by long use it has built up a great, if not the greatest, accident insurance business in the world, and that, from the similarity in names, the casual observer would at once conclude that the business of appellant was in some way connected with, or the outgrowth of the business of appellee.

If the similarity in names is in fact such as to produce this result, then, by the weight of authority, appellee’s contention is sound. For, as stated in A. & E. Encyclopedia of Law, 2d Ed., page 350:

“The tendency of the decisions now is to make every case turn upon the question whether or not the effect of what was done is to pass off the goods of one person for those of another, regardless of the existence of any technical trade-mark. In other words, the existence of a property right in the reputation and good will of one’s business is recognized and protected against invasion regardless of the particular means of invasion employed. ’ ’

Appellee does not dispute the correctness of this position, but insists that the facts in this case do not bring it within the purview of such a rule. Appellee is engaged in selling accident insurance, appellant in the manufacture of automatic machines to sell insurance; so that their business is as dissimilar as it could possibly be.

[525]*525But appellee insists that, from the similarity in the name of the machine company with its name, the public will be deceived into believing that the insurance company operating these machines is in some way connected with The Travelers Insurance Company, and in this lies the mischief. No mark or name suggestive of appellee company or its business appears upon the machine, and the tickets calling for the insurance show that it is “ The Daily Accident Insurance Company” that is issuing them and assuming the risk. Hence, neither the machines nor the tickets that are sold and distributed automatically by it can in the slightest degree tend to produce the impression which appellee seeks to guard against. •

This being so, the only chance possible for the public to be deceived or misled is through the medium of the advertising matter circulated by appellant. It is pointed out by appellee as significant, that in its advertisements, laudatory of its business and the enormous profits to be realized out of the accident insurance business by its stockholders, the appellant company cited many accident companies whose stocks were worth many times their par value, but failed to make any mention at all óf appellee. It is questionable whether its failure to mention appellee in its advertising matter is for or. against appellee’s contention. If it had cited appellee’s company as an evidence of the value of accident insurance company stock as an investment, appellee might have complained that this was calling attention to it in connection with the appellant company, and made it another basis of its ground of complaint. We attach no importance, however, to this fact.

Four different samples of booklets or pamphlets advertising appellant’s business are filed with the pleadings. The first may properly be styled a prospectus, in which the names of the directors, officers and agents of the appellant company are given, together with a general outline of the business which it proposes to do and the manner in which it is to be done. The second and third explain more in detail appellant’s business and that of the insurance company which it is proposing to organize. They also contain pictures of the policies that will be issued and the machines that will be manufactured and used. The following are sample pictures of the machine and policy taken from one of the exhibits:

[526]

Free access — add to your briefcase to read the full text and ask questions with AI