Lead Opinion
Kraft, Inc. (“Kraft”) appeals from a district court decision and order granting to Henri’s Food Products Co., Inc. (“Henri’s”) a declaratory judgment that its trademark Yogowhip used on spoonable salad dressing does not infringe Kraft’s registered trademark Miracle Whip or the word Whip, and denying Kraft’s trademark infringement counterclaim. The district court also denied Kraft’s counterclaim for injunctive relief against the mislabeling by Henri’s of a yogurt product as salad dressing, and refused to declare void and order cancellation of Henri’s trademark application for registration of a yogurt product as salad dressing.
In 1933 Kraft began marketing Miraole Whip Salad Dressing, a spoonable dressing. In the same year, Kraft was granted United States Trademark Registration 308,260 for the trademark Miraole Whip for salad dressing. In that application for registra
Kraft began using “Miracle Whip” in the early 1930’s in connection with a new machine and method for the continuous production of mayonnaise. The machine was referred to as the Miracle Whip Machine, which performed “miracles in mayonnaise blending” (App. 3). In 1933 Kraft introduced Miracle Whip Salad Dressing, created in its Miracle Whip Machine. Advertisements indicated that Miraole Whip Salad Dressing was creamy, silky smooth and fluffy light.
In 1973 and 1974 Henri’s developed a successful line of pourable dressings made with yogurt. In 1976 Henri’s decided to enter the spoonable salad dressing and the mayonnaise markets with two new products made with yogurt: YOGONAISE and YOGO-WHIP. These products are sold primarily in the midwest. Henri’s attempted to sell its Yogowhip and Yogonaise products with the same marketing approach used for its pourable dressings made with yogurt: the yogurt dressings taste good but are lower in fat than the leading competitors in the marketplace. Since 1958 Henri’s has had a registered trademark for the logo, referred to as the “Frenchman,” which has been used or affixed in labeling and advertising for Henri’s Yogowhip product. Since 1968 Henri’s has had a registered trademark for the word “Henri’s” which has also been used or affixed in labeling and advertising for Henri’s Yogowhip product. In July of 1976 Henri’s filed an application to register Yogowhip for salad dressing; that application has been stayed pending resolution of this case. In August 1981, just before trial, Henri’s filed an application to register Yo-gowhip as a reduced calorie dressing for salads.
The central issue in this appeal is whether Henri’s Yogowhip infringes on Kraft’s Miracle Whip trademark. The test for trademark infringement under the Lanham Act, 15 U.S.C. § 1114(1), is “likelihood of confusion, deception or mistake on the part of the consuming public.” James Burrough Ltd. v. Sign of Beefeater, Inc.,
Infringement
In determining whether likelihood of confusion exists, this Circuit considers such factors as distinctiveness of the trademark in issue, similarity of the marks, similarity of the products, similarity in the channels of distribution, identity of advertising media utilized, the intent of the alleged infringer, and evidence of actual confusion. Union Carbide, supra,
A. Similarity of the marks
An examination of MiRacle Whip and Yogowhip for similarity of “sound, sight and meaning,” Plough, Inc. v. Kreis Laboratories,
Looking at the marks as a whole, Spice Islands, Inc. v. Frank Tea and Spice Co.,
contain the same number of syllables; they have the same stress pattern, with primary accent on the first syllable and secondary accent on the third; the last two syllables of Dramamine and Bona-mine are identical. The initial sounds of Dramamine and Bonamine (“d” and “b”) are both what are known as “voiced plosives” and are acoustically similar; the consonants “m” and “n” are nasal sounds and are acoustically similar.
See also id. at 388-389 and cases cited therein. However, the Court also noted that reference to decisions as to other trademarks is not of great help because each case is dependent on its own facts, id. at 389. A comparison of the marks in this ease shows far less similarity than in G.D. Searle, supra. The marks must be so similar that it is likely or probable, not just possible, that consumers, when presented with the marks singly, rather than side-by-side, would confuse Henri’s Yogowhip with the source of Miracle Whip. See James Burrough, supra,
This finding is further supported by the differences in the products’ labels. Despite Kraft’s objection to the district court’s analysis of the labels (Br. 32-34), there is authority for the proposition that a comparison of the labels rather than simply the trademarks is appropriate. See McGregor-Doniger Inc. v. Drizzle Inc.,
Kraft argues that the district court erroneously dissected the marks when comparing them and unjustifiably found the word Miracle to be the dominant portion of the trademark Miracle Whip. However, this Circuit has recognized the rule that if one word or feature of a composite trademark is the salient portion of the mark, it may be given greater weight than the surrounding elements. Union Carbide, supra,
It is not necessary to decide whether the district court was clearly erroneous in its finding of no secondary meaning because this Court has itself re-examined the trademarks de novo to determine the extent of similarity.
B. Evidence of confusion
Kraft presented no evidence of actual confusion. Kraft did, however, rely on surveys taken by Henri’s to show likelihood of confusion. Henri’s through its counsel commissioned Market Facts, Inc. to conduct two confusion surveys and two secondary meaning surveys. The first confusion survey, the Bendikas survey, was conducted for Henri’s attorneys in order to help plan the overall strategy for the case. Mr. Bendikas testified that the preliminary survey was designed to be biased in favor of Kraft (Tr. 1242-1245), and Kraft’s survey expert agreed that the first survey was biased against Henri’s (Tr. 1261). The survey was biased in the following way: respondents were asked inter alia
3. When thinking about food products, what does the word “whip” mean to you? Miracle Whip 13%
4. What kinds of food products do you think of in connection with the word “whip?” Miracle Whip 16%
5. When thinking about mayonnaise-type spoonable salad dressings, what does the word “whip” mean to you? Miracle Whip 38%
Prior to asking the sixth question on the Bendikas survey, respondents were shown a jar with a label identifying Henri’s Yogowhip for about five seconds and asked “who
The second confusion survey, the Hardin survey, was conducted in 1980 by face-to-face interviews with 1,068 female respondents at shopping malls in Milwaukee, Minneapolis and Grand Rapids. These areas were chosen because both Kraft’s Miracle Whip Salad Dressing and Henri’s Yogowhip have been sold in these markets. Respondents were shown a jar of Henri’s Yogow-hip and asked, “Who puts out this product?” 72.4% of the respondents identified Henri’s as the company that puts out the Yogowhip product. 18.3% said they did not know who puts out the product. 7% thought that Kraft, Miracle Whip or Kraft Miracle Whip put out the product. The remaining 2.3% named other brands, including Hellman’s. The 93% of the respondents who did not answer Kraft or Miracle Whip to the first question were then asked, “What other products, if any, are put out by the company that puts out this product?” An additional .6% of the respondents named Miracle Whip as such a product. Thus 7.6% of the respondents believed that Henri’s Yo-gowhip was produced by Kraft or the same company that produced Miracle Whip Salad Dressing.
Henri’s introduced the Hardin survey to show that there was no likelihood of confusion; Kraft introduced the Bendikas survey to show that there was likelihood of confusion. Kraft also caused its own survey to be done, but did not introduce it into evidence. The district court did not mention the Bendikas survey, evidently giving it no weight, but concluded that the Hardin survey supported a finding that the trademark Yogowhip does not cause confusion in consumers’ minds.
After reviewing the survey evidence, we conclude that the district court was correct in discrediting the Bendikas survey. The undisputed testimony indicates that the preliminary survey was biased against Henri’s and in favor of Kraft on the question of likelihood of confusion. On the other hand, we do not think the district court erred in giving some weight to the Hardin survey, as corroborating the finding of no confusion. Kraft points to several flaws in the survey which caution against giving it too much weight; we cannot conclude, however, that the survey should be ignored.
Kraft’s expert criticized the survey because the sites selected for interviews contained supermarkets in which Henri’s products were visible to the shopper before the interview. He also criticized as unrealistic the fact that respondents were shown the Henri’s Yogowhip jar for five seconds, testifying that the average person would take less time to purchase a product off the supermarket shelf (Tr. 1261-1263). Kraft argues that the survey should have been conducted using a ,jar bearing 'the word Yogowhip alone, rather than an actual jar reading “Henri’s Yogowhip.” Finally, Kraft claims that the question: “Who puts out this product?” is misleading because respondents who answered “Henri’s” could have been referring to Henri’s as a licensee of Kraft.
These criticisms are certainly not without merit. However, Kraft had the opportunity to conduct and introduce its own survey to remedy the timing and site selection inadequacies, but chose not to do so. With respect to the survey question, this Court in Union Carbide, supra,
In interpreting the survey, the district court correctly discounted the “don’t knows” and found that only 7.6% of those interviewed confused the source of Yogowhip with the source of Miraole Whip. In Union Carbide, supra,
The remaining question is whether the district court was correct in holding that a 7.6% confusion finding weighs against infringement. We hold that it was. Kraft has pointed to no case in which a 7.6% figure constituted likelihood of confusion. See James Burrough, supra,
Despite the survey’s flaws, we conclude that the district court did not err in considering it, and the court correctly found that the 7.6% finding is a factor weighing against infringement.
C. Intent
A finding of fraudulent intent or bad faith is not essential to prove infringement where likelihood of confusion already exists. Tisch Hotels, Inc. v. Americana Inn, Inc.,
The district court found that while there was “an intent to compete” on the part of Henri’s, there was no intentional and deliberate copying of the Miracle Whip mark, no intent “to compete by misleading the consuming public” (App. 16). For various characterizations of the intentional copying standard, see McCarthy, Trademarks and Unfair Competition § 23:33 (1973) (“intent to get a free ride”); Tisch Hotels, supra,
On this record we cannot hold the district court clearly erroneous in its finding against Kraft on the issue of intentional copying. Though, as noted above, a finding of wrongful intent is not necessary to an ultimate finding of infringement, our evaluation of the record does mean that wrongful intent should not be counted as a factor in favor of infringement in this case.
Finally, Kraft asks this Court to consider that it has been the exclusive user of the term Whip in the midwest for almost fifty years. In its rejection of secondary meaning, the district court explained the fact of exclusivity by inferring that most users “got scared” when Kraft made moves to stop their use of Whip (App. 12). This record indicates that, for whatever reasons, the word Whip has not been in use, though derivatives of the word do appear. Even taking exclusivity of use into account, however, we think the scales dip against infringement. The marks are not confusingly
This holding does not necessarily conflict with the holdings of other courts that have considered similar challenges. In Kraft-Phenix Cheese Corp. v. Goldfarb,
Mislabeling and Fraud
The district court refused to enjoin Henri’s from making certain representations on the labels of its yogurt products. Among other things, Kraft objects to Henri’s representation that Yogowhip is a salad dressing despite the fact that, according to Kraft, the Federal Standard of Identity for salad dressing does not permit yogurt as an ingredient, 21 C.F.R. §§ 130.8(a), 169.150. Because “the alleged improprieties have stopped,” the district court saw no need to either “evaluate the practices,” or “in the exercise of discretion,” enter an injunction (App. 23). Kraft has not convinced us that this refusal was an abuse of discretion.
In addition, Kraft argues that the district court abused its discretion in refusing to declare void and order cancellation of Henri’s July 7, 1976 trademark application for federal registration of Yogowhip as salad dressing. That application has been stayed pending resolution of this case. In August of 1981 Henri’s filed another application to register Yogowhip as a reduced calorie dressing, for which there is no Standard of Identity, and in which yogurt is therefore a permitted ingredient. Kraft has shown no irreparable injury from Henri’s July 7 filing of the trademark application that would necessitate an injunction; if the application is for some reason granted despite the presence of yogurt in the product, Kraft can object to it at that time.
For the foregoing reasons, the judgment of the district court is affirmed.
Notes
. It is also not necessary to review the district court’s finding that Whip is a descriptive word. Regardless of whether it is generic (as argued by Henri’s), descriptive (as found by the district court), or suggestive (as argued by Kraft), there is insufficient evidence of likelihood of confusion between Yogowhip and Miracle Whip or Whip to constitute infringement, see infra.
. In Union Carbide, supra,
Dissenting Opinion
dissenting in part.
I respectfully dissent from the majority’s opinion because I find it ironic that a company owning a strong trademark after spending millions of dollars promoting the same and having successfully defended it in the courts can now be deprived of this
I. Secondary Meaning
The district court found, without stating adequate legal reasoning, that the word “whip” was “merely descriptive.” “A merely descriptive term specifically describes a characteristic or ingredient of an article. It can, by acquiring a secondary meaning, i.e., becoming distinctive of the applicant’s goods (15 U.S.C. § 1052(f)), becomes a valid trademark.” Miller Brewing Co. v. G. Heileman Brewing Co.,
Several factors are relevant in the determination of whether or not a term has attained a secondary meaning: “The amount and manner of advertising, volume of sales, the length and manner of use, direct consumer testimony and consumer surveys.” Union Carbide Corporation v. Ever-Ready, Inc.,
Obviously the amount of advertising expenditures is not probative of secondary meaning unless those advertising efforts are successful in entrenching the word sought to be protected in the minds of the consuming public. When the consuming public equates the word “whip” with “Miracle Whip” salad dressing as opposed to being descriptive of the product, “whip” has acquired a secondary meaning. Therefore, consumers’ attitudes toward a trademark are the chief inquiry in a secondary meaning case of this type. Union Carbide Corporation v. Ever-Ready, Inc.,
“A party attempting to appropriate the exclusive use of a descriptive term must persuade the court that the consuming public treats the term as a declaration that the item or service bearing the term originates at a single source, and thereby rebut the presumption that the public regards the term as merely describing an attribute of the item or service.”
Walt-West Enterprises, Inc. v. Gannett Company, Inc.,
The record discloses that the two surveys conducted by Henri’s indicate that the consuming public gives primary significance to that meaning of “whip” which, associates “whip” with Kraft’s spoonable salad dressing business — “Miracle Whip.” It is highly significant that in response to questions designed to ascertain the meaning of the word “whip,” consumers in both surveys responded “Miracle Whip” more often than any other response. In the first survey, the Bendikas Survey, 38% of the consumers surveyed responded “Miracle Whip” when asked the following question: “When thinking about mayonnaise-type spoonable salad dressings, what does the word ‘whip’ mean to you?” 36% of the consumers surveyed provided the next most frequent response, answering with various terms (lighter, creamy, smooth, fluffy, etc.) descriptive of the physical properties of the product.
The record establishes that the surveys introduced into evidence convincingly proved that the primary meaning consumers have given the word “whip” is Kraft “Miracle Whip.” This is not surprising considering the vast sums of money Kraft has spent promoting “Miracle Whip,” the fact Kraft has sold over six billion jars of “Miracle Whip” and that Kraft has virtually exclusively used the word “whip” in the context of the spoonable salad dressing market for approximately fifty years. Considering this proof it is more than evident that the district court’s finding that “whip” has no
II. Infringement
The district court correctly ruled that the test for trademark infringement is the likelihood of confusion among consumers and that their interest is the paramount consideration. James Burrough Ltd. v. Sign of the Beefeater, Inc.,
The questions relevant to the infringement issue are: (1) whether or not “Yogow-hip” infringes “Miracle Whip,” and (2) (because I believe that the word “whip” has attained a secondary meaning) whether or not “Yogowhip” infringes Kraft’s use of the word “whip.” The following analysis is germane to both questions.
As the majority points out, several factors must be considered in the determination of whether there is a likelihood of consumer confusion: the type of trademark in issue, the similarity of design, the similarity of products, identity of retail outlets and purchasers, identity of advertising media utilized, defendant’s intent, and actual confusion. Union Carbide Corporation v. Ever-Ready, Inc.,
While the district court found that “Miracle Whip” was an “extremely strong trademark” it failed to give this factor the required weight mandated by caselaw and refused, without logical reasoning, to recognize that
“[a] mark that is strong because of its fame or its uniqueness, is more likely to be remembered and more likely to be associated in the public mind with a greater breadth of products or services, than is a mark that is weak . .. . ”
James Burrough Ltd. v. Sign of the Beefeater, Inc.,
In their analysis of the similarity factor, despite recognizing that a supermarket shopper makes a selection quickly and without careful examination, the majority proceeds to perform its own “examination” of the product labels giving substantial weight to factors such as the number of syllables in “Miracle Whip” and “Yogowhip” and the color and styling differences in the products’ labels. However, caselaw recites that “[a] side-by-side comparison of the marks is not the proper test. The test is the consumer’s state-of-mind when faced with the marks individually.” Union Carbide Corporation v. Ever-Ready, Inc.,
While no evidence of actual consumer “confusion” was presented to the court, “confusion” evidence in the form of a consumer survey was admitted. Such evidence is probative of the likelihood of confusion among consumers. The evidence of confu
Our court in James Burrough Ltd. v. Sign of the Beefeater, Inc. recognized that “the percentage of likely confusion required may vary from case-to-case . . .. ”
The majority adopts and gives great weight to Henri’s argument that Kraft has not presented eases to the court in which a 7.6% level of confusion constituted a likelihood of confusion. However, each case must be decided on its own facts and “the percentage of likely confusion required may vary from case to case, ...” James Burrough Ltd. v. Sign of the Beefeater, Inc.,
“A newcomer to a product field has an infinity of nonconflicting trademarks from which to choose, and he has a legal duty to select a mark which is totally dissimilar to trademarks already being used in the field.”
Finally, the district court somehow, without reason and legal basis recited in the record, found persuasive Henri’s position that it did not intend to infringe upon Kraft’s trademark. The court instead found that Henri’s intended to compete with Kraft but did not intend to compete by misleading the consuming public to believe that “Yogowhip” was distributed by Kraft. The court reached this result because it was convinced Henri’s was “equally concerned with maintaining the distinctiveness of its products.” However, the evidence introduced at trial does not support this conclusion and clearly demonstrates that Henri’s paid no heed whatsoever to its legal duty as a latecomer in the spoonable salad dressing market to avoid all consumer confusion. See Union Carbide Corporation v. Ever-Ready, Inc.,
At trial Leslie O’Rourke, Henri’s executive vice president, testified that when he selected the name “Yogowhip” he was not aware of the “whipping” process used in making spoonable salad dressings. This factor not only negates the district court’s finding that the word “whip” was used by Henri’s in order to describe the process of making “Yogowhip,” but further indicates Henri’s intent to infringe on the “Miracle Whip” trademark as O’Rourke was aware of the leading position “Miracle Whip” held in the spoonable salad dressing market. Furthermore, O’Rourke had previously been informed of the “Miracle Whip” trademark and had been warned that the use of the term “Yogowhip” might in fact infringe upon that mark. O’Rourke also testified that he directed his brokers and salesmen to have “Yogowhip” placed on supermarket shelves immediately next to “Miracle Whip” products for the purposes of inducing “impulse” purchases of “Yogowhip” by individuals who might otherwise purchase “Miracle Whip.” This is a further attempt by Henri’s to seek the benefit of “Miracle Whip’s” reputation for quality. One of Henri’s foodbrokers also testified that it was his opinion that the “whip” in “Yogow-hip” was “undoubtedly conceived to give the impression that it is a similar product to the leader in the market, Miracle Whip.” I also believe that it is more than a mere coincidence that the most distinctive part of the “Yogowhip” label, the word “Yogow-hip,” appears in a lettering style virtually identical to that used by Kraft in the most distinctive portion of the “Miracle Whip” label, the words “Miracle Whip.”
While it is true that a party need not show intent to establish a “likelihood of confusion,” wrongful intent is viewed as presumptive evidence of the likelihood of confusion. See Processed Plastic Co. v. Warner Communications, Inc.,
I would reverse the district court and find that “whip” has developed a secondary meaning when used in the context of a spoonable salad dressing, and that Henri’s use of the word “Yogowhip” infringed upon
. This case is distinguishable because there was nothing in the record suggesting that “the public uses ‘Whip’ or would recognize the word as meaning ‘Miracle Whip.’ ”
. The district court found this survey biased and did not accept it into evidence for the purpose of determining the likelihood of confusion on the issue of infringement. The preceding question asked of the consumers and two other questions purportedly biased the survey in favor of Kraft by suggesting certain answers. However, there is no logical or legally sound reasoning set forth in the court’s ruling why the results of the survey should not be probative as to the secondary meaning issue. In any event the second survey conducted provides a sufficient basis for a finding of secondary meaning.
. Our court’s opinion in James Burrough Ltd. v. Sign of the Beefeater, Inc., should be given substantial deference since we were privileged to have Chief Judge Markey of the U.S. Court of Customs and Patent Appeals (now the U.S. Court of Appeals for the Federal Circuit) sit on the panel and author the opinion, giving our court the considerable benefit of his expertise in trademark law.
