Varsity Sportswear, Inc. v. Princess Fabrics Co.

174 Misc. 298, 19 N.Y.S.2d 723, 45 U.S.P.Q. (BNA) 189, 1940 N.Y. Misc. LEXIS 1719
CourtNew York Supreme Court
DecidedMarch 29, 1940
StatusPublished
Cited by8 cases

This text of 174 Misc. 298 (Varsity Sportswear, Inc. v. Princess Fabrics Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Varsity Sportswear, Inc. v. Princess Fabrics Co., 174 Misc. 298, 19 N.Y.S.2d 723, 45 U.S.P.Q. (BNA) 189, 1940 N.Y. Misc. LEXIS 1719 (N.Y. Super. Ct. 1940).

Opinion

Walter, J.

The three corporations which are parties to this action here seek to enjoin each other and also obtain a declaration of their rights respecting the advertisement and sale of certain specially designed fabrics for women’s dresses, and some other accessories. They are here referred to as Varsity and Rosenthal and Princess, respectively. Princess and Rosenthal may be described, with accuracy sufficient for present purposes, as manufacturers of dress fabrics. Varsity is a manufacturer of dresses from dress fabrics.

At least as early as the beginning of November, 1939, Princess started preparations for the manufacture of dress fabrics, the distinctive design, of which was the printing in of certain marks or symbols or designs commonly used by and associated in the public mind with certain nationally known concerns engaged in the production and sale of various articles and products other than dress fabrics, such as: The girl and stick associated with Dutch Cleanser; the cup and saucer associated with Maxwell House Coffee; the camel or dromedary associated with Camel Cigarettes; the three interlocking rings associated with Ballentine’s Beer; the Indian head associated with Pontiac Motor Cars, and many others.

Princess obtained the consents of the owners and users of such marks or symbols or designs to such use thereof by Princess, and from the terms of consents and the circumstances under which they were obtained and the actions of the parties thereunder, I find that as a part of the agreement evidencing such consent Princess at least impliedly agreed that in connection with its fabrics it [300]*300would advertise the fact that the designs thereof were taken from or were representations of the marks or designs or symbols of the owners and users who gave such consent.

The consideration for such consents, or perhaps, more accurately, the motivating reason therefor, was that thereby the products of the owners and users of such marks, symbols and designs would be advertised. In some instances the consents state that such right to use such marks and symbols and designs upon dress fabrics is given to Princess exclusively. In other instances the word exclusively ” is not used. In my view that makes no difference. A trade-mark cannot be used without the consent of the owner, and when the owner gives consent to one person such consent necessarily is exclusive, unless and until a similar consent is given to another, or unless and until the property in the mark is lost in some manner legally recognized.

Sample dresses made from such fabrics were in the hands of prospective customers in December, 1939, and at least as early as January 9, 1940, Princess began to advertise its fabrics under the general title “ American Symbol Prints,” and it thereafter sold large quantities of them to many retailers throughout a large part of the United States, some of whom likewise advertised them under that title, and with additional descriptive matter identifying the fabrics as containing as their distinctive design the marks or symbols or designs of such nationally known concerns, some of which were mentioned by name. Sometimes, too, the containers or .products to which the trade-marks relate were exhibited along with the dresses and the fabrics.

The manufacture of dress fabrics, having as their distinctive design the marks or symbols or designs of nationally known manufacturers of products other than dress fabrics, was also made the subject of fashion notes, advertising notes, and other news items or “ write-ups,” as distinguished from paid advertisements, in various papers and magazines. One of these appeared in Life magazine in its issue of February 19, 1940, which I think we may assume was on the newsstands at least a few days before that date. Another, fairly typical, exhibits a popular stage and screen singer attired in a dress made of a fabric which has a cup and saucer as its distinctive design, and identifies that design as the mark or symbol commonly associated with Maxwell House Coffee. Many of these advertisements and notes and “ write-ups ” identify Princess by name, and although some do not, I find that the result of all the various work and publicity and actual manufacture and exhibitions to prospective customers is that by January 10, 1940, dress fabrics of such designs, and also the phrase or title American [301]*301Symbol Prints,” had become identified in the mind of the trade with dress fabrics sold by Princess and the fabrics themselves had become identified in the mind of the trade as American Symbol Prints.” By January 26, 1940, such identification had become even more complete, and by February 18, 1940, it had become very widespread in the trade and had extended to ultimate consumers, the buyers of dresses themselves, having been then prominently displayed in the show windows of R. H. Macy & Co.

The wholesale price of dresses made from such fabrics was about eight dollars and seventy-five cents per dress, and the retail price was about fifteen dollars per dress.

I now turn to the facts respecting Varsity and Rosenthal. Witnesses called in their behalf have testified that about January 10, 1940, which is one day after the advertisement of Princess (Defendant’s Exhibit A) appeared in the daily trade journal, Women’s Wear, the stylist of Rosenthal submitted to others of that concern certain sketches which have not been produced but which are described by them as trade-mark prints, and that such sketches were submitted to Varsity about January 15, 1940.

Late in the day of January 26, 1940, after the usual hours, which is the day on which the advertisement of American Symbol Prints ” appeared in Retail Merchandise Service (Defendant’s Exhibit B), Varsity ordered from Rosenthal certain dress fabrics which have as their distinctive design a girl with a stick, three interlocking rings, a camel, and a cup and saucer. The order designates the goods ordered as Ballantine, Maxwell, Old Dutch, Dromedary and Goodrich patterns.

Rosenthal then ordered the printing of such fabrics on January 27, 1940. It also appears that by agreement between Rosenthal and Varsity, Rosenthal was to sell fabrics of such designs to Varsity exclusively.

The fabrics so ordered on January 26, 1940, were delivered to Varsity on February 3, 1940, and Varsity made them into dresses and on February 6, 1940, sold a substantial quantity — said to be way under a thousand — to a retail store in the Bronx, called Alexander’s, for one dollar and twenty-five cents each, net, and Alexander’s advertised them on February 18, 1940. Varsity also made other sales to retailers who likewise advertised them. •

The advertisements of the retailers to whom Varsity sold dresses describe them as trade-mark prints,” and use descriptive language plainly designed and calculated to lead the public to believe that such retailers are selling “ American Symbol Prints ” at a lower price. One published February 23, 1940, in fact actually states that the dresses advertised are copies of the more expensive originals [302]*302advertised in Life magazine. (Defendant’s Exhibit F. See, also, Plaintiff’s Exhibit 8.)

Varsity maintains that when it ordered the dress fabrics from Rosenthal on January 26, 1940, it never had heard of Princess or of its dress fabrics of the distinctive designs I have described. Rosenthal also maintains that it had no knowledge of the

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Bluebook (online)
174 Misc. 298, 19 N.Y.S.2d 723, 45 U.S.P.Q. (BNA) 189, 1940 N.Y. Misc. LEXIS 1719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/varsity-sportswear-inc-v-princess-fabrics-co-nysupct-1940.