72 Misc. 2d 847 | N.Y. Sup. Ct. | 1972
This is an action in equity by plaintiff, a not-for-profit organization, formed by B’nai B’rith in 1913, to enjoin the appropriation, imitation and use of “ anti-defamation league ” and the symbol “ADL” by defendant league, a voluntary association, formed January 1,1972. Plaintiff alleges that the phrase and symbol in issue have acquired a secondary meaning and that protection by injunction is required to prevent
I
The adjudication of the substantive aspects of this litigation is made within an evaluation of prior proceedings and procedural context in which this action was presented for trial as an inquest pursuant to CPLR 3215, when it was assigned following a declaration of default against the defendant league for failure to appear for trial by an attorney as required by CPLR 321 (“ voluntary association shall appear by attorney ”), predicated upon the public policy and specific prohibitions of sections 478 and 495 of the Judiciary Law (Trial Term, Part I [Saypol, J.], Trial, Oct. 17, 1972j.
The declaration of default and order directing the trial was proper (Oliner v. Mid-Town Promoters, 2 N Y 2d 63, 64; see, also, Weisberger v. Condon, 6 Misc 2d 176 [trial by inquest of a libel action where defaulting defendants who answered did not appear for trial] ).
n
The procedural posture of this litigation requires a threshold evaluation of the scope and nature of the proof and record upon which a determination will be made whether or not to enter judgment, if so warranted by the law, under CPLR 3215. Evidence is required (Cranston v. Walton-164th St. Corp., 115 N. Y. S. 2d 331 [default in action for declaratory judgment] ; 8 ALR 3d 1070). The record here consists of the pleadings, including the verified complaint which “ qualifies as an affidavit attesting to the claim ” (CPLR 3215, subd. [e]), defendants ’ unverified answers, and the evidence presented by plaintiff, the sufficiency and weight of which will also be the subject of evaluation. In addition, an evaluation will be made under CPLR 5015, of matters which a defendant who would oppose plaintiff’s application with sufficient proof to vacate the judgment after entry, to wit: “jurisdiction” (CPLR 5015, subd. [a], par. 4); “excusable default ” (CPLR 5015, subd. [a], par. 1) — whether the defendant league desired to exercise its opportunity and right to defend on the merits of the controversy (Bouxsein v. Bialo, 35 A D 2d 523 [where default is willful, intentional or deliberate, motion to open default denied]; Bridger v. Donaldson, 34 A D 2d 628; Murphy v. Hall, 24 A D 2d 892) —and, in addition, the validity and merits of defenses already asserted by the individual codefendant pro se in his unverified pleadings, answering affidavits with exhibits in the preliminary injunction proceedings, and in his recent amicus brief which he requested be considered (see Krebs v. Raborg, 30 A D 2d 520).
Ill
Jurisdiction over the defaulting defendant league, a voluntary association, is predicated upon personal service of the summons and complaint made personally on March 16,1972, upon its executive director sued in his representative capacity pursuant to section 13 of the General Associations Law, notwithstanding that his title is not president or treasurer as required (see New York Bd. of Fire Underwriters v. Whipple & Co., 36 App. Div. 49,52; Brown v. Cole, 54 Misc. 278 [injunction to restrain defendant, whose title was “ chairman ”]). The individual codefend
IV
Plaintiff’s corporate title — a coined phrase — restates its “prime” and “immediate object ” directly coinciding with, reflecting and focusing upon contemporary episodes, and with an ‘ ‘ ultimate purpose * * * to secure justice and fair treatment of all citizens alike and to put an end forever to unjust discrimination against any sect or body of citizens.” Plaintiff conducts its affairs through a national office in New York City and 28 regional offices coast to coast, with a professional staff of about 300 men and women and an official lay leadership which makes up its national commission and 43 advisory boards with 4,500 members.
The plaintiff’s budgets and expenditures have multiplied from about $2,000,000 in 1913 to $5,450,000 in 1971. Between 1937 and 1966, for example, it expended about $100,000,000 directly in its own name for its own account and through its chapters and lodges. About 28,425 individuals —more than half from outside the City of New York — contributed to plaintiff in 1971.
In furtherance and implementation of its prime and ultimate purposes, plaintiff publishes and produces, frequently with cosponsors, books and other writings and audio-visual materials which it advertises and distributes. Many relevant publications are cosponsored with major denominations and communications media. Its catalogs compiling the titles and authors of hundreds of its publications and audio-visual materials are made available to subscribers and to the public including schools and other institutions. It publishes the ADL Bulletin with an average circulation of about 106,415.
Plaintiff frequently employs and refers to itself, here and abroad, by its trade name, “ anti-defamation league ”, without the possessory suffix, and by its first letters “ ADL ”. To illustrate : in one publication, the symbol “ ADL ” appears as a reference about 23 times and the trade name about six times, includ-ing an invitation to write for “further information” to the “ Audio-Visual Department Anti-Defamation League * * * or to your nearest ADL regional office ”.
The covers of plaintiff’s programs for annual meetings, testimonial and special award dinners, prominently display “ ADL ” in the center of a circle. Its annual fund raising campaigns are called “ Anti-Defamation League Appeal[s] ”,
The defendant, Arab Anti-Defamation League, is an unincorporated association established on January 1, 1972, simulating part of plaintiff’s title, anti-defamation league, and, adopted as its symbol “ AADL ”. It announced that its “ basic principles ” are to “liberate the human mind from prejudice as the prerequisite for universal peace ” and that “ as the Arab Americans have been subjected to continuous discrimination, smear and character assassination, the League will endeavor to oppose and eliminate the prejudices and discriminatory acts directed against the Arabs ”. It has a national advisory board described as ‘ ‘ multi-racial, multi-religious group of distinguished persons who are university professors, doctors, lawyers, and newspaper editors and publishers ”. Establishment of out-of-State chapters in Philadelphia and plans for a chapter in Colorado have been announced. It solicits contributions.
Significantly, subsequent to its formation, defendant league’s officers have likewise referred to plaintiff by its trade name without the suffix, or, as ADL. Its public relations director stated that “we expect the help and support of ADL ”, A solicitation in the newspaper Action whose executive editor is also the defendant league’s executive director, reads as follows: “ Please Help ‘ AADL vs. ADL,BB ’ ”. In an open letter to plaintiff’s national chairman, the defendant league’s executive director refers to plaintiff interchangeably by its corporate title (six times) and by its trade name (three times). In a letter to the editor of the New York Times in July, 1972, the author makes the following references to plaintiff: Anti-Defamation League and B’nai B’rith “B’nai B’rith and its Anti-Defamation League and as “ Anti-Defamation League ”.
Following the commencement of this action, the defendant league’s executive director wrote in Action, in pertinent part; “ Arab Anti-Defamation League not to be confused or identified with B’nai B’rith Anti-Defamation League ”, and, he further explained that
The defendant association’s executive director makes a side-by-side visual comparison between defendant league’s title with plaintiff’s trade name and between “ AADL ” and “ ADL ” and contends in his “ amicus brief ” that two prerequisites must be met: (1) confusion in the public mind that the new organization is in some capacity identical with the plaintiff; and (2) as a result of the confusion, plaintiff loses financially or otherwise and that plaintiff must also show the exact manner it has suffered damages or loss.
The national and State public policy of freedom of trade traditionally protected by the judiciary at common law, supplemented and regulated by legislation in response to business needs or contemporary economic crises, is predicated upon competition— free and without unreasonable restraints upon the price or supply of goods and services vigorously operating in an open, fair and honest marketplace unencumbered by restrictions and barriers imposed by unfair and fraudulent marketing practices. Trade-marks and trade names were originated and coined in the guilds and by the merchants to identify their products and businesses, respectively, which blended with an association of quality, source or origin and identity, goodwill and reputation of the owner. Imitation or simulation, unless deceptive or confusing, is within the concept of competition. (See Kellogg Co. v. Nat. Biscuit Co., 305 U. S. 111, 122 [“ shredded wheat ” case].)
The rights of action for protection from imitation of technical and nontechnical marks have inherited and derived certain characteristics from the technical distinctions inherent in their respective jurisdictional common-law forums in law and equity. (Pickett & Handler, Trade-Marks and Trade Names — An Analysis and Synthesis, 30 Col. L. Bev. 168, 759; Handler, Unfair Competition, 21 Iowa L. Bev. 175; see Elgin Nat. Watch Co. v. Illinois Watch Co., 179 U. S. 665, 674; [e.g., wrongful or fraudulent intent “presumed” by trade-mark infringement; essence of wrong for relief from unfair competition of trade name with secondary meaning to confine use of word to its primary meaning].) Though these distinctions are still evident, suggested as dicta,
The distinctive identity, principles, programs, activities and reputation of educational, charitable and benevolent associations equally have a right of action against simulation of their names under the general rules of unfair competition. (Benevolent & Protective Order of Elks v. Improved Benevolent & Protective
The owner of the name or its wdrds, generic or descriptive, is entitled to enforceable rights to its exclusive use, or, as some say, he acquires a property interest, supra, when secondary meaning is established by satisfactory proof that in the minds of the public — in the case at bar, the communication media and members of the public who purchase, receive, read, audit, subscribe to the publications and audio-visual materials of plaintiff, or support its purposes by contributions or otherwise — there is an “ association * * * sufficient to create public sanction for exclusive appropriation ” (Avon Periodicals v. Ziff-Davis Pub. Co., 27 Misc 2d 160, 163). It has also been defined as “ special significance ” (Ball v. United Artists Corp., 13 A D 2d 133, 137, supra); and as the “ indicia of origin ” (Upjohn Co. v. William S. Merrell Chem. Co., 269 F. 209, 211, cert. den. 257 U. S. 638). Thus, upon proof that the trade name has acquired secondary meaning, it qualifies and is entitled to the same protection afforded to a technical trade-mark (Carling Brewing Co. v. Philip Morris Inc., 297 F. Supp. 1330, 1336 [trade name “ synonymous ” with product] ; Avon Periodicals v. Ziff-Davis Pub. Co., supra, p. 163 [secondary meaning defined and “ in this sense, the word becomes the trade-mark of the producer ”] ; Eastern Columbia v. Waldman, 30 Cal. 2d 268, 271 [trade names with secondary meaning equated with “ primary meaning ” so that “ there is little if anything left to distinguish them from a trademark ”]).
The phrase in issue and “ ADL ” by repeated use by plaintiff and the communication media, have acquired the required “ association ” and “ special significance ” with the public, and, indeed, are the “ indicia of origin ” of its publications and audiovisual materials and other activities. They are synonymous with B ’nai B ’rith and plaintiff which naturally prompts their inter
' Proof by extrinsic evidence of actual confusion, deception, misrepresentation, or loss of business is unnecessary. (Hill's Supermarkets v. Stony Brook Dairies, 7 A D 2d 756; Matter of Port of New York Auth. [Cort], N. Y. L. J., May 23, 1972, p. 19, cols. 6, 7 [use of “ World Trade Center ” enjoined even if there is no deliberate attempt to exploit ”; “ clear possibility of confusion on the part of the public ”].) Instead it is sufficient if confusion is “ likely ” (Oakite Prods, v. Bo ritz, 161 Misc. 807, 809); or its ‘ ‘ likelihood ’ ’ (Bennett Bros. v. Floyd Bennett Farmers Market Corp., 22 Misc 2d 833, 837); or its “ tendency ” to deceive (Rochester Sav. Bank v. Rochester Sav. & Loan Assn., 170 Misc. 983, 986). This is an action for an injunction, not an action to recover damages
Though likelihood of confusion is technically an issue of fact, it is nevertheless an issue of law for the court based upon its objective analysis, comparison and judgment. (Venetianaire Corp. of Amer. v. A. & P. Import Co., 302 F. Supp. 156.)
The phrase in issue and “ AADL ”, adopted by the defendant league, are’similar. Similarity is the test. Similarity, visual
Moreover, there is extrinsic evidence of likelihood of confusion. The defendant executive director’s disclaimer and caution in his newspaper Action that ‘ ‘ Arab Anti-Defamation League not to be confused or identified with B ’nai B ’rith Anti-Defamation League ” explaining that “ this statement has been made in order to prevent any possible confusion that might arise as the result of some similarity in the names of the two organizations ”, is “ pregnant with admission” (Vaudable v. Montmartre, Inc., 20 Misc 2d 757, 758, supra) and fails as a defense since it manifests that without explanation, confusion or deception might result (Esso v. Standard Oil Co., 98 F. 2d 1, 7 [“ Not to be confused with Standard Oil Company ”, deemed admission]).
The “ survey” to which the defendant executive director refers, a random sampling of opinions from subscribers to his newspaper, is insufficient and without statistical reliability to rebut the intrinsic and extrinsic evidence of likelihood of confusion of source of origin or sponsorship. (King Research v. Shulton, Inc., 324 F. Supp. 631, 636; Lerner Stores Corp. v. Lerner, 162 F. 2d 160,162; see Caughey, The Use of Public Polls, Surveys and Sampling as Evidence in Litigation, and Particularly Trademark and Unfair Competition Cases, 44 Cal. L. Rev. 539.)
The defendant league’s ethnic prefix does not save it. Besides, the prefix is not distinctively evident in “ AADL ”. The addition of the infringer’s name to another’s trade name with a strong secondary meaning, as in the case at bar, may be deemed an ‘ aggravation and not a justification, for it is openly trading in the name of another upon the reputation acquired by the device of the true proprietor ” (Menendez v. Holt, 128 U. S. 514, 521; Gillott v. Esterbrook, 47 Barb. 455, affd. 48 N. Y. 374 [defendant appropriated 303 ” trade-mark, adding its name; enjoined]; Jacobs v. Beecham, 221 U. S. 263, 272 [ the state
The phrase in issue is not descriptive of a generic type or classification of an organization like a “ chamber of commerce ”, as suggested, whose purposes are defined and regulated by statute (e.g., Not-For-Profit Corporation Law, § 1410; “ Boards of trade and chambers of commerce [to foster] interests of those having a common trade ”). Plaintiff is not a trade association with heterogeneous affiliates. It- is unlike Association of Contr. Plumbers of City of N. Y. v. Contracting Plumbers Assn. of Brooklyn & Queens, 302 N. Y. 495, 502), where the phrase “ Contracting Plumbers Association ” was used Nationwide and the national association encouraged its use by all groups affiliated with it so that it did not acquire secondary meaning. Since the phrase in issue and “ ADL ” are synonymous with plaintiff and B’nai B’rith, as evidenced by the frequent reference to B’nai B’rith’s anti-defamation league, supra, and with its purposes, the defendant association’s addition of an ethnic prefix to the trade name is as confusing — likely and actually — to the public, including members and nonmembers of plaintiff, just as it would be if the defendant league or any other homogeneous group added its descriptive prefix to B ’nai B ’rith or if the latter were added to plaintiff’s title.
Besides, the parties are organizations with purposes and objectives with intangible bonds and meanings to their respective memberships and to the public. Thus, in Master v. Machen (35 Pa. D. & C. 657, 664), involving the adoption of a name of a church with “ close similarity ” which raised an “ inference of resulting confusion ”, the court held that “ any project or movement of another religious organization using a name so similar to an established one as to create confusion and thereby interfering with the spiritual and financial progress of that established church and its agencies is inequitable and will be restrained,
An evaluation under the public policy promoting preservation and availability of resources — natural and literary — in the public domain and the public policy of a fair market place for products, services, publications and ideas without unfair practices, which policies are not inconsistent, demonstrates no compelling reason to deny or withhold plaintiff’s right of action to enjoin simulation of its name and symbol which it coined and used exclusively for about six decades. In this sense, there is neither a grant of a monopoly to plaintiff nor any infringement of the constitutional rights of the defendant association’s members. The scope of relief in unfair competition litigation involving trade names commensurate with its jurisdictional origin is targeted to the prohibition of the confusion or deceit on the public. However, the scope of relief here must be extended to the imitation and simulation of the trade name and symbol since any possible qualification such as “ not connected or affiliated with ” is inadequate and indeed may compound the existing confusion. (See Westphal v. Westphal’s World’s Best Corp., 216 App. Div. 53, 67, 71, affd. 243 N. Y. 639; Johnson & Son v. Johnson, 116 F. 2d 427, 430 [such phrase deemed “ severe; it not only advertises the injured party, but directly suggests that the defendant has been found guilty of some unfair practice ”].) This adjudication is predicated upon the paramount public interest to protect the authenticity, reputation and credibility of an
The injunction will provide effective relief against the immediate injury resulting from orthodox confusion. But plaintiff seems to have alleged as a tagalong, the equitable principle of “ dilution of the significance of its corporate name,” because, if it acquiesces to defendant’s use, it “ may well anticipate” that others will follow defendant’s example. It appears to invoke the antidilution statute (General Business Law, § 36&-d; citing 3 Callman, Unfair Competition Trademarks and Monopolies [3d ed.], § 84.2, pp. 954-955), which supports the “ dilution theory ” incorporated in the antidilution statute.
V
Plaintiff who seeks a judgment under CPLR 3215 must present proof at the minimum of a prima facie cause of action. Fifteenth Annual Report of N. Y. Judicial Conference, 1949, p. 302 — proof to the satisfaction that the cause of action is substantial and bona fide (ibid., p. 315.) (See, also, Matter of Sullivan, 65 Misc 2d 461, 465 prima facie showing ”]; Imperial Discount Corp. v. Aiken, 38 Misc 2d 187, 188 [ minimum measure of proof to sustain its cause of action ’ ’ and a recovery to which a plaintiff is justly and fairly entitled ”].) Nevertheless, the nature of the remedy by permanent injunction compels that judgment be made only in aclear and convincing manner ” parallel to the test applicable to the statutory summary proceeding under sections 133 and 135 of the General Business Law. (See Association of Contr. Plumbers of City of N. Y. v. Contracting Plumbers of Brooklyn & Queens, 302 N. Y. 495, 498, supra.) Plaintiff meets this test.
VI
The record discloses a laudable spirit of co-operation between the parties’ counsel in an attempt to reach an amicable resolution and avoid litigation over a name between two organizations engaged in civil rights.”
. The action was commenced by service of the motion by order to show cause for a preliminary injunction with the summons and verified complaint upon the defendant league’s executive director who is also named as a codefendant “individually” (General Associations Law, § 13). The codefendant Keljik allegedly “has no connection” with the defendant league “as he had resigned prior to the action ”, Negotiations for an amicable resolution reached a stalemate when the defendant executive director refused as reported by the defend
. The exercise of discretion declaring a default under CPLR 321 may be deemed reasonable and warranted by the plaintiff’s need for immediate relief and to assure and preserve the finality of any judgment, particularly under the circumstance involving a voluntary association whose defense is no longer advocated by its legal advisor who withdrew, and without any circumstances from which an intention to defend on the merits may reasonably be inferred. The defendant executive director’s appearances and advocacy have been pro se without any indication of any express or implied authority to similarly act on behalf of the officers and members of the defendant league. Severance in multidefendant situations is provided and authorized by subdivision (a) of CPLR 3215 (McKinney’s Cons. Laws of N. Y., Book 7B, CPLR 3215, C.3215:4), particularly in the absence of joint liability. Here the executive director in his pleadings expressly disclaims and “ denies that he acted in his individual capacity.” His joinder and representative designation for procedural convenience of service of process (Martin v. Curran, 303 N. Y. 276, 281; Bobe v. Lloyds, 10 F. 2d 730, cert. den. 270 U. S. 663; see, also, Torres V. Lacey, 5 Misc 2d 11, mod. on other grounds 3 AD 2d 998, mot. for rearg. den. 4 A D 2d 831), and for securing in personam jurisdiction over the defendant league under section 13 of the General Associations Law, does not satisfy or provide compliance with the mandatory requirement of CPLR 321. In reality, the action is against the defendant league (Smith v. Robilotto, 27 A D 2d 684, 685 [“similar to action against a corporation’ ]).
. 30 Harv. L. Rev. 759, 770.
. See n. 7, infra.
. The demand for “compensatory or punitive damages” was withdrawn (Tr., Oet. 24,1972, p. 3).
. The dilution theory originated in a 1924 German ease involving the identical mark “ ODOL ” in steel products and mouth-wash and was introduced into American jurisprudence by Schechter, The Rational Basis of Trademark Protection (40 Harv. L. Rev. 813, 831 [1927]; See Brown, Advertising and the Public Interest: Legal Protection of Trade Symbols, 57 Yale L.J. 1165, 1191, n. 103 [1948]). There is no per se rule that the first user acquires an exclusive property right in a trade name. Though attention appears to be focused upon the word “dilution” (General Business Law, § 368-d), it may be the effect of simulation of a mark or name with “ distinctive quality ” which is the true right of action. Thus, a new category of business identification like celebrated marks may have been recognized where the quality of the mark transcends that of the product in its advertising and demand appeal to the public. However, in Johnson & Son v. Johnson, 116 F. 2d 427 [claim on reputation with customers and possible expansion] court said (p. 429): “ There is always the danger that we may be merely granting a monopoly, based upon the notion that by advertising one can obtain some ‘ property ’ in a name”. Caution and restraint in its application should be exercised except in special situations involving fanciful and unique marks, lest it be deemed by stare decisis effect to establish a per se rule. However, in trade-mark infringement and unfair competition litigation, each case is decided on its own particular fact pattern (Fisher v. Blank, 138 N. Y. 244, 252) even though precedent is not only difficult to ascertain, but, in many instances, “ seem incomr' patible”) (Dell Pub. Co. v. Stanley Pub., 9 N Y 2d 126, 133). Besides, the case-by-case approach provides the necessary periodic review of the present relevance 'and economic conditions in support of legislatively created exclusive rights and immunities which tend to become perpetual.
. Letter from defendant league’s “ legal advisor ” to plaintiff’s counsel dated April 3, 1972: “Please be advised that I have withdrawn from representing any of the .defendants in the above-entitled action under Index No. 5559 after my effort to persuade Dr. T. Mehdi to settle the lawsuit has failed. As you know, and I had stated this in the record on the return date of your order to show cause, I had not appeared in this action and my sole interest is to bring about a mutual agreement as I did not believe that two organizations engaged in civil rights should be in litigation over a name regardless of the merits of either side.”