52 Mo. App. 10 | Mo. Ct. App. | 1892
Lead Opinion
The plaintiff, a tobacco manufacturer in the city of St. Louis, brought this action against the defendant, a tobacco manufacturer of Louisiana, Missouri, for the purpose of restraining the latter from using on plug tobacco manufactured by it any colorable imitation of a horseshoe, which is the plaintiff’s trademark on that class of tobacco.
The petition states that, continuously since 1876, the plaintiff and its assignors used the mark of a horseshoe as a trademark for distinguishing certain plug chewing tobacco manufactured by them; that at first this mark was affixed to each one pound plug by way of a paper tag, but since the year 1879 it was affixed by way of a tin tag in the following form:
Which mark the plaintiff caused to be recorded in the United States Patent Office and in the county recorder’s office of St. Louis. The petition further states that the
The petition then states that the defendant, well knowing the premises, thereafter commenced to manufacture and to sell on the same market where plaintiff was selling its said horseshoe tobacco a brand of tobacco, affixing thereto a tin tag (hereinafter designated as tag A) in the following form:
That said mark resembled a horseshoe, and that its use by the defendant was fraudulent and deceptive and designed to mislead the trade and public, and cause on their part the purchase of defendant’s tobacco as and for the horseshoe tobacco of plaintiff; that, in 1889, the plaintiff complained to the defendant of said colorable imitation, and the defendant agreed to change its tags so as to avoid all probability of deception, and thereupon did change its tags to the following form (hereinafter designated as tag B):
That the plaintiff still complained of said tag B as an infringement of its trademark, and the parties sub
The petition further states, as indicating a fraudulent intent on part of the defendant, that the defendant also imitated the outward appearance of the boxes in which the plaintiff shipped its said horseshoe tobacco; that plaintiff once branded the horseshoe on the outside of its boxes in red, whereupon the defendant began to affix its simulated mark on the outside of its boxes in red; that the plaintiff then changed its brands to blue, whereupon the defendant immediately changed its brands from red to blue; and that the defendant in other respects is fraudulently using a label on boxes containing its tobacco in fraudulent imitation of the plaintiff’s labels.
The plaintiff prays for a decree restraining the defendant from offering for sale any tobacco with the tag “B,” or any other colorable imitation of plaintiff’s horseshoe trademark attached thereto, and also for an account of the profits made by the fraudulent use of plaintiff’s trademark. The damages are laid at $2,000.
The defendant’s answer generally denies all the allegations of the petition, and specifically denies any fraudulent design on part of defendant to imitate the plaintiff’s trademark. It avers that it didin good faith
The trial court upon a full hearing dismissed the plaintiff’s bill.
For our convenience, all the original exhibits which have been used in the court below have been reproduced in the argument before us. We have carefully examined them, as well as the voluminous record of the testimony given at the trial, and find the facts to be as follows: The plaintiff’s title to the use of the horseshoe trademark is not questioned. Its manufacture and trade in that particular brand of plug tobacco is very extensive, its out-put in 1889 being five million, seven hundred and seventy-eight thousand pounds; in
*20 “To whom it may concern: The plug chewing •tobacco exhibited to us this day by M. Q-. Smith, attorney of the Drummond Tobacco Company, with the similitude of a horseshoe was made by us under the following circumstances: Thirty boxes only were made, when, discovering the similitude to the hoiseshoe, we have ceased making same, and will make no more in future. Our trademark is a little “c” which we claim is our own.”
The defendant’s evidence, however, furnishes no explanation why, if its trademark was a little “c,” it attached to its plugs a capital “G,” the similitude of which to the horseshoe, plaintiff’s well-known trademark, the defendant at once conceded.
We further find that, upon plaintiff’s complaint of the tag “A,” a member of the firm of McCune, Palmer & Knight, who, however, is not now a member of the defendant corporation, called upon the plaintiff’s then president, and some conversation was had in regard to avoiding deception by placing the defendant’s tags differently on the plug than the plaintiff placed its tags, but that no definite arrangement for the settlement of the matter was arrived at. The defendant’s boxes at that time were marked on the outside by a dark plug hat, represented as standing on the flat side of the plug of tobacco, a white spur being prominently displayed in the center of the hat. In the year 1889 the plaintiff’s then president, while traveling on the Pacific coast, found in the trade there boxes of the defendant’s spur tobacco, labeled on the outside in a manner resembling those of the plaintiff’s horseshoe tobacco boxes, and containing in the inside the defendant’s plug tobacco marked with tag “A.” He at once made complaint by letter* to the secretary of the Trade-Mark Association above referred to, and the secretary in
“Gentlemen: — Tbe Drummond Tobacco Company complain that the ‘spur’ tag used by you is so like their ‘horseshoe’ tag, that it is sold for ‘horseshoe’ to consumers. Please send us a plug with the ‘spur’ upon it, such as you sell, for comparison. Also what you have to say about their complaint. An early reply will oblige.
To this letter the defendant replied in the following manner: “As requested in yours of ninth instant, we send you by express to-day a plug of our ‘spur’ tobacco just as it goes to the trade. On comparing same with ‘horseshoe’ plug, we think your committee will agree with us that there is no reasonable ground for claiming that it is mistaken for that brand. There is a marked difference in spacing and manner of placing tags on the lump, which, with the wide difference between ‘spur’ and ‘horseshoe’ tags, makes it next to impossible to mistake one for the other. We have sold these goods quite largely throughout the South and West since ’81, and not a single instance has come to our notice of this having been done. We will be . glad to have you advise us of any decision your committee will arrive at in this matter.”
The secretary at once sent the plugs of the plaintiff and the defendant to each of the members of the committee of arbitration, all of whom seriatim, and without any consultation as far as appears, gave it as their opinion that the defendant’s so-called spur tag was likely to deceive the ordinary consumer of plug tobacco into the belief that it was the plaintiff’s horseshoe tobacco he was buying. This award of the committee was at once communicated to the defendant.
We find that the Trade-Mark Association of Plug Tobacco Manufacturers is a voluntary association of
When the defendant was notified of the award of the committee, two. of its officers called upon the plaintiff to adjust matters. We find that the discus
“We do not believe that any unprejudiced man will say that the spur tag we now use is in any manner an infringement of the Drummond Tobacco Company’s horseshoe, or calculated to deceive, and we are perfectly willing to have your executive committee pass on same.”
The matter was again laid before the committee of arbitrators, who this time convened and sat as a body. The defendant was represented at that hearing by a person of its own selection. The committee again unanimously decided, each member giving his opinion seriatim, that tag “B” was an infringement of plaintiff’s horseshoe tag trademark, and liable to deceive the consumer.
The defendant was at once notified of this decision,. and refused to state whether it would abide by it.
“New York.
“Theo. E. Allen, Secretary.
“Dear Sir: — Referring to your favor sixth inst., advising us of the decision of the executive committee in a matter of complaint of the Drummond Tobacco Company of our ‘spur’ tag, and asking if we will abide by said decision, will say one of our company has called on the Drummond Company with a view of making such change in the tag as will be mutually satisfactory, and the matter is now under consideration.”
We find that thereupon an officer of the defendant company called upon the plaintiff’s president and submitted to him a tag, cut out by hand, of zinc, of which the following is a fac simile (the same being hereinafter designated as tag “C”) :
The plaintiff’s president told the officer exhibiting the device to cut it out of tin, put it on the plugs in a box of tobacco, and send him the box of tobacco, as the defendant intended to put it upon the trade. This was never done, and the defendant continued to sell on the markets its tobacco, the same as theretofore, with the tag “B” attached thereto.
Two questions arise for decision upon this record: First. Is the defendant’s tag “B,” as now used and complained of, a sufficiently colorable imitation of plaintiff’s horseshoe tag, likely to deceive the ordinary
It is not claimed, either in the bill or in the evidence, that the similitude between the two tags is likely to deceive either the jobber or retailer. These persons buy the article in larger quantities; it is billed to them as an article of a certain kind; they have ample opportunity of close examination; and, hence, their deception by any simulated trademark, short of a downright forgery, is out of the question. The consumer of the particular article is to be considered almost exclusively in determining the question of infringement, because, in the case of an attempted deception, he is substantially the only party likely to be deceived. Sykes v. Sykes, 3 B. & Cr. 541; Farina v. Silverlock, 1 K. & J. 509; Rose v. Loftus, 47 L. J. Ch. 576; Singer Mfg. Co. v. Loog, 18 Ch. D. 395, 412.
It is a notorious fact, amply supported by the evidence in this case, that consumers of plug tobacco consist in the main of persons engaged in manual labor, who purchase the article without close scrutiny, and mostly in small quantities, known as ten-eent cuts, and that it is for this reason that the little tin tag is attached to the plugs in short intervals so as to show
It is not essential to the right of relief to show that anyone was actually deceived. Filley v. Fassett, 44 Mo. 168. The evidence in this case however shows, and we so find, that some purchasers were actually thus deceived, the retailer handingthem defendant’s spur tobacco when they called for the plaintiff’s horseshoe, and that the similitude in the external appearance of the boxes and the general appearance of the tag was such that, in two-instances, even the plaintiff’s salesmen were deceived by looking at the boxes from some distance. There is ample and credible testimony, offered by the plaintiff by way of expert opinion on the part of salesmen and others, of a likelihood of deception, and such testimony finds corroboration in the award of the executive committee of the Trade-Mark Association, whose competency to-pass upon the question as experts is conceded in the defendant’s letter of February 20, 1891.
The defendant’s counsel urge with zeal and learning that the question of similitude is after all a question of mere inspection, and, as all the exhibits used upon the trial are before us, we have the same facilities for determining the question as the witnesses examined and the committee of arbitration had, and that we-should pass our judgment upon the evidence of inspection. That the main test of the alleged resemblance is inspection, has been frequently decided (Abbott’s Trial Evidence, 752), but it has also been decided with equal uniformity that the resemblance need not be such as. would deceive persons seeing the two marks side by side. Seixo v. Provezende, 1 Ch. App. Cas. 191, 195;
This brings us to the second and not less important part of the inquiry, whether the adoption of the spur tag by the defendant as a trademark was a mere matter of accident, unaccompanied by any design of illegal encroachment on the plaintiff’s trade. We go into the inquiry, owing to the voluminous evidence adduced by defendant tending to show that the similitude between the two tags is not such as to deceive any person using ordinary caidion, and hence no serious injury has resulted or can result to plaintiff’s proprietary rights by the alleged interference. We state at the outset that, while fraud on defendant’s part is in no way essential to protect plaintiff’s proprietary rights in the trademark from interference when the interference is made out by the unequivocalproof, yetless cogentproof of the probability of deception will ¡suffice where an intention to deceive
As bearing upon this question, we find the facts to he as follows: All the different firms and corporations, which by succession now form the defendant company, were all along familiar with the plaintiff’s horseshoe trademark, and knew that the tobacco marked with the horseshoe tag, and known as horseshoe tobacco, had •an extensive reputation. With full knowledge of that
It is also shown by the evidence of disinterested witnesses (and, although this evidence is contradicted by the defendant, we find the occurrences probable) that the defendant’s traveling salesmen, in pushing the spur tobacco in the market, designated it as the new horseshoe or spur, they being offered special inducements for pushing this particular brand. We also find that, in isolated instances, such salesmen suggested to the retailers that, on cutting the plug into five-cent pieces and thereby severing the spur tag, there would be left a horseshoe on one piece and on the other a star, and that some retailers availed themselves of the suggestion. The star brand of tobacco, on which the star is somewhat similar to the rowel on the spur tag, was and is a favorite brand in the western market. It is the same trademark, the infringement of which by a fraudulent and spurious imitation, called the “buzz saw,” was perpetually enjoined by the supreme court of this state in Liggett & Myers Tobacco Co. v. Sam Reid Tobacco Co., 104 Mo. 53. That the Sam Reid above named, as is shown by the evidence, is a former bookkeeper of the Tinsley Tobacco Company, a son-in-law of Addison Tinsley, and is the party who was selected to represent, and who did represent, the defendant in the arbitration had before the Trade-Mark Association in the case at bar, is also an unfortunate coincidence.
We recite these minor facts, not because we consider they would be entitled to consideration if standing alone, but, because, in the aggregate, they are entitled to some weight in connection with the other facts in determining the defendant’s good faith in the premises.
It results from the foregoing that the judgment of the trial court, dismissing the bill, must be reversed. The only remaining inquiry is, what judgment we
The plaintiff’s bill contains a prayer for general relief. It also contains a prayer for specific relief as follows:
“That said defendant, its agents, servants and employes may be perpetually enjoined and restrained from manufacturing, selling (or offering for sale), directly or indirectly, any plug tobacco having affixed thereto the mark of a ‘horseshoe,’ not the genuine mark of plaintiff, or the mark used by defendant and heretofore last described, or any other colorable imitation of plaintiff’s ‘horseshoe’ -tobacco trademark as hereinbefore stated, which has made plaintiff’s tobacco known by the name of ‘horseshoe’ tobacco.
“That defendant may be compelled to render before this court a full, true and perfect account of all profits of every description which it has made by use of the simulated mark aforesaid, and that the said defendant may be decreed to pay over to plaintiff all .such profits.”
We shall grant no relief to plaintiff under its prayer for an account in this proceeding. The facts that for many years the defendant has used the spur tag in various shapes and forms, and for part of the time without any active objection on part of the plaintiff, and that different changes were introduced in its shape and general appearance, in the various attempts to settle the matter amicably, raise propositions which make it difficult to determine the exact data which form the elements of such an account, even if plaintiff were entitled to it. Hence, without prejudice to plaintiff’s rights, we shall make no order on that part of the plaintiff’s bill, leaving it at liberty, if so advised, to proceed at law for damages. We, however, decree that
Rehearing
ON MOTION POR REHEARING.
— The motion for rehearing which, has been filed in this case is not authorized by any existing rule of the court. It merely proceeds on the ground that the court, in weighing the evidence, has decided the cause erroneously, and upon that assumption it asks-for a rehearing. This court has, however, always been ready to waive its rule and to grant a rehearing in any case where it has become satisfied that it has committed a mistake, and it has always been glad when counsel would point out its mistakes. The conclusion of the-oral argument in this cause left me with the distinct-impression, that the device of the spur, as adopted and usod by the defendant corporation and its predecessors-as a trademark, was adopted, devised and used with the purpose of pirating the trademark of the plaintiff; but. I had serious doubts whether the defendant’strademark, in the modified form in which it was used at the-commencement of this action, had sufficient resem
We are further asked to transfer this cause to the supreme court, on the ground that there is an amount in controversy in excess of the pecuniary limit of our jurisdiction. We could not stultify ourselves by making such an order now, after hearing and deciding the cause on its merits, unless plainly convinced by some new suggestions that we were wrong in taking jurisdiction in the‘first instance. The only suggestion supporting this contention is that there is evidence in the record on the part of the defendant that it and its predecessors have expended far more than $2,500, the pecuniary limit of the jurisdiction of this court, in advertising its brand of tobacco, known as the spur tobacco. One member of the defendant corporation testified that, if he had the money that had been expended., he would be willing to retire from the tobacco business, and another testified to the belief that the amount so expended was more than $10,000; but neither of them could give even an approximate amount. Assuming that it was more than $10,000, yet that fact does not furnish any ground for.ousting the jurisdiction of this court. Our decree does not prohibit the defendant from advertising its brand known as the
The motion for rehearing, and the motion to transfer the cause to the supreme court for want of jurisdiction, are both overruled.