United States Ozone Co. v. United States Ozone Co. of America

62 F.2d 881, 16 U.S.P.Q. (BNA) 233, 1932 U.S. App. LEXIS 3246
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 20, 1932
Docket4641
StatusPublished
Cited by65 cases

This text of 62 F.2d 881 (United States Ozone Co. v. United States Ozone Co. of America) 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
United States Ozone Co. v. United States Ozone Co. of America, 62 F.2d 881, 16 U.S.P.Q. (BNA) 233, 1932 U.S. App. LEXIS 3246 (7th Cir. 1932).

Opinion

*885 WHAM, District Judge

(after stating the facts as above).

Trade-marks, trade-names, business good will, and unfair competition involve closely related principles of law. Trademarks and trade-names are valuable to their owner because they serve to build up and protect the good will of his business. They are valuable to the buying public, when used as the law contemplates, as a shield against deception. Any use of the trade-mark or the trade-name of another whjch injures the good will of its owner or deceives the public, or both, constitutes unfair competition. Hanover Star Milling Co. v. Metcalf, 240 U. S. 403 at page 412, 36 S. Ct. 357, 60 L. Ed. 713.

Trade-mark rights growing out of prior appropriation and use of a device or symbol to distinguish or identify commodities made or sold' by the owner of the trade-mark have •long been and continue to be recognized by the common law as property, and as such entitled to protection by the courts. Trade-Mark Cases, 100 U. S. 82, 25 L. Ed. 550; Stephano Bros. v. Stamatopoulos (C. C. A.) 238 F. 89, L. R. A. 1917C, 1157. Hanover Star Milling Co. v. Metcalf, supra. While trade-mark rights may be fixed or limited by statute, they are not dependent on statutory enactment, but arise under the common law from prior, exclusive appropriation and use. Trade-mark Cases, supra; Piggly Wiggly Corporation v. Saunders (D. C.) 1 F.(2d) 572; Phillips v. Hudnut, 49 App. D. C. 247, 263 F. 643; Stephano Bros. v. Stamatopoulos, supra.

The Trade-Mark Act of 1905-, as amended (15 USC A §§ 81-133), without changing the substantive law, provides for the registration of marks used in interstate or foreign commerce Which, without statute, would be entitled to legal and equitable protection. Beckwith v. Com’r of Patents, 252 U. S. 538, 40 S. Ct. 414, 64 L. Ed. 705.

Registration of a trade-mark simply constitutes prima facie evidence that the registrant is entitled to the mark, Henderson v. Peter Henderson & Co., 9 F.(2d) 787 (C. C. A. 7); 15 USCA § 96, and in itself gives no property right in the mark, Robertson v. U. S., 52 App. D. C. 368, 287 F. 942; Fulton Waterworks Co. v. Bear Lithia Springs Co., 47 App. D. C. 437; Spiegel v. Zuckerman, 188 F. 63 (C. C. A. 2); Anheuser-Busch, Inc., v. Cohen, 37 F.(2d) 393 (D. C.); United Drug Co. v. Rectanus Co., 248 U. S. 90, 39 S. Ct. 48, 63 L. Ed. 141. Nor is such registration controlling in a suit involving the common-law rights to the j-egistered mark or in a suit for unfair competition involving its use. B. F. Goodrich Co. v. Kenilworth Mfg. Co. (Cust. & Pat. App.) 40 F.(2d) 121; Postum Cereal Co. v. California Fig Nut Co., 272 U. S. 693, 47 S. Ct. 284, 71 L. Ed. 478.

Any person, partnership, corporation, or unincorporated association capable of holding title to personalty may acquire the right to a trade-mark. The owner may be the manufacturer of the article to which the trademark is applied or the seller of goods of a particular manufacture or quality to which the distinguishing mark is applied. McLean v. Fleming, 96 U. S. 245, 24 L. Ed. 828; Nelson v. Winchell, 203 Mass. 75, 89 N. E. 180, 23 L. R. A. (N. S.) 1150; Hughes v. Alfred H. Smith Co. (D. C.) 205 F. 302; Id. (C. C. A.) 209 F. 37; Manitou Springs Mineral Water Co. v. Schueler (C. C. A.) 239 F. 593; Schmalz v. Wooley, 57 N. J. Eq. 303, 41 A. 939, 43 L. R. A. 86, 73 Am. St. Rep. 637; Atlantic Milling Co. v. Robinson (C. C.) 20 F. 217.

A registered trade-mark is assignable in connection with the good will of the business in which the mark is used by a duly acknowledged instrument in writing. 15 USCA § 90.

Trade-mark rights are assignable by the owner with the business or the right to make or sell the commodity which it distinguishes or identifies (Sarrazin v. W. R. Irby Cigar & Tobacco Co., 93 F. 624, 46 L. R. A. 541 [C. C. A. 5] ; Kidd v. Johnson, 100 U. S. 617, 25 L. Ed. 769; though not apart therefrom (The Coca-Cola Bottling Co. v. The Coca-Cola Co. (D. C.) 269 F. 796; Sawilowsky v. Brown (C. C. A.) 288 F. 533; In re Jaysee Corset Co. (D. C.) 201 F. 779; Carroll v. Duluth Superior Milling Co. (C. C. A.) 232 F. 675), and, in the absence of evidence to the contrary, will be assumed to have passed, without formal assignment, with the business when the business with which the trade-mark has been identified is sold or transferred (26 R. C. L. 863; Laughman’s Appeal, 128 Pa. 1, 18 A. 415, 5 L. R. A. 599; Seabrook v. Grimes, 107 Md. 410, 68 A. 883, 16 L. R. A. (N. S.) 483, 126 Am. St. Rep. 400; Fish Bros. Wagon Co. v. La Belle Wagon Works, 82 Wis. 546, 52 N. W. 595, 16 L. R. A. 453, 33 Am. St. Rep. 72; Hoxie v. Chaney, 143 Mass. 592, 10 N. E. 713, 58 Am. Rep. 149; Woodward v. White Satin Mills Corporation (C. C. A.) 42 F.(2d) 987. Reploge v. Air Way Co., 52 App. D. C. 364, 287 F. 765; President Suspender Co. v. Macwilliam (C. C. A.) 238 F. 159).

Trade-marks, trade-names, and business good will, in connection with the business to which they relate, constitute property in, *886 the hands of their owner. When owned by a bankrupt, except when strictly personal in nature, trade-marks and trade-namfes pass with the good will of the bankrupt’s business to the trustee for the benefit of creditors, and, when the business to which they relate is sold intact by the trustee, they pass in connection with the sale of the business to the purchaser without being specifically mentioned. 11 USCA § 110; Woodward v. White Satin Mills Corporation, supra; S. F. Myers Co. v. Tuttle (C. C.) 183 F. 235; Sarrazin v. W. R. Irby Cigar & Tobacco Co., supra; Wilmer v. Thomas, 74 Md. 485, 22 A. 403, 13 L. R. A. 380; Children’s Bootery v. Sutker (1926) 91 Fla. 60, 107 So. 345, 349, 44 A. L. R. 698; Lothrop Pub. Co. v. Lothrop, etc., Co., 191 Mass. 353, 77 N. E. 841, 5 L. R. A. (N. S.) 1077.

Reverting to the facts disclosed by the record as stated above, in the light of the enunciated principles of law, we conclude that the ozone company, even though defectively organized as a corporation, was capable of holding title to the trade-mark in question, and that as a selling agent of equipment of a particular quality and source it could and did acquire the trade-mark. • It is apparent from the facts that the ozone, company and the sterilizer company had common interests, were intended to be and in fact operated as a practical unit. Though the trade-mark was registered by the ozone company, it was used and treated in the operation of the business of the two corporations as the common property of both. The sterilizer company was permitted to and did use the tradp-mark in the manufacture, advertisement, and sale of its manufactured products, and the ozone company, acting as the sales and advertising agent of the manufacturer, used it to promote the sales of the same products.

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62 F.2d 881, 16 U.S.P.Q. (BNA) 233, 1932 U.S. App. LEXIS 3246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ozone-co-v-united-states-ozone-co-of-america-ca7-1932.