226 F. 531 | 6th Cir. | 1915
Lead Opinion
(after stating the facts as above).
We do not find it necessary to consider or to attempt to decide the question so presented. For the purposes of this case, and without intimating any opinion, we give the first appropriator the benefit of the doubt and assume that his title is prima facie country-wide and exclusive against all others, and that as against all who have no special and superior equity he is entitled to carry his' trade into- the new territory and there to enforce his exclusive right. However, the existence of this general or prima facie exclusive right is not inconsistent with an inability to enforce it against' some persons and under some circumstances. Instances may arise where the affirmative conduct or the laches of the first appropriator, and with reference to what he was at first entitled to call am infringement, has been such that on the principles of estoppel a court of equity cannot tolerate that he should enforce against the later user the right which might have been originally perfect. This subject is more fully discussed and the reasons which lead us to this conclusion pointed out, with some reference to the decided cases, in our opinion in the Rectanus Case, 226 Fed. 545, - C. C. A. -, this day decided. Under these considerations, and upon
5. Is the Eighth Circuit decree a judgment that the trade-mark, in its general, prima facie, affirmative aspect, belonged to the Heilmans by prior appropriation? This-is the interpretation claimed by defendants. The language in the body of the Circuit Court of Appeals opinion is consistent with that interpretation, but the last paragraph indicates that the two judges (only two sitting) did not unite in putting the decision on this ground. When we turn to the record for further light, we find, first, that the defendants’ cross-bill claiming the trademark ownership was dismissed, and that the dismissal became final. I f, it had been even seriously contended by defendants that their early use of the words was effective to vest a trade-mark right therein, surely there would not have been acquiescence in the dismissal of the cross-bill. It was apparent, then as now, that affirmative title to the trademark would have been of great value to defendants, if they could maintain that position. We find, second, that there was in the record practically nothing indicating that the Heilmans ever pretended to adopt or claim these words as their trade-mark. They stamped some barrels with the words “P. Crow” or “J. W. Crow”; but no person of this surname had ever been connected with the Heilmans. The Crow, or ()ld Crow, which, in 1863, had been manufactured in Kentucky for 20 years or more, was at least considerably known on the market No reason has ever been suggested in this litigation, and we can think of none, why they should put this name on their barrels, unless they intended to indicate that the whisky was that made by Crow of Kentucky. Unless the selection of this name meant that it meant nothing. Witnesses for the defense frankly stated that in those years it was nothing unusual for jobbers or blenders of whisky to use well-known brands belongingto others, and that, if the initial of a proper name was changed, this was thought sufficient in morals to remove any objection to the appropriation. .This may be the genesis of the otherwise unexplained use of “P.” and “J. W.”
In considering whether their use was of a trade-mark character, the peculiar nature of their business and their markings must not be overlooked. The brands or marks on whisky are usually those of the original manufacturer. The dealer or jobber may handle many well-known brands, and may mark his own name upon the packages or upon the advertisements; but this does not indicate that he claims the brands as his, or that he is acquiring a' trade-mark right therein. While the stencils on the barrel and the glass signs carried the name “Hellman & Co.,” they did not say “manufactured by,” or that Hellman & Co. were manufacturers or distillers, nor were they in any way inconsistent with mere sale by Heilman as jobber of a well-known brand made by some one else. The thus described nature and character of the Hellman early use might not always be thought sufficient to initiate and support even a defensive right; but they were so regarded in the former decree, and it is immaterial whether we would independently reach that conclusion. It did there appear that the Heilman use thus began and continued for seven years before 1870, or four years before 1867, the earliest date to which, under the pleadings, plaintiff could then resort, and that after 1870 it continued, increasing somewhat, although remaining comparatively small, and continuing without challenge from plaintiff until 1904. It may well be that, even if plaintiff did not know of this use and acquiesce, it was legally chargeable with such knowledge and acquiescence for many years, and that in 1904 the use would have matured into a possession of which a court of equity would not deprive defendant. At any rate, we think that is the theory upon which the former decree should be considered to stand; and, accordingly, it adjudicates 'such defensive right and nothing more. As interpreted by Judge Tacombe in the Baltimore Club Case (Carroll v. Mcllvaine [C. C. A. 2] 183 Bed. 22, at page 28, 105 C. C. A. 314), this right does not go beyond what has actually been “reduced to possession” by defendant, and does not extend to any whisky not mixed or blended, so as to be of the same general type as that which defendants had been making, or to trade or territory which they were not selling when that bill was filed. Such difficulties as there may be in; drawing the exact line of its effect are not here involved, because the infringement here sought to be enjoined is in another locality and of another character. This limitation — to blended whisky as distinguished from straight — thus imposed on defendants, is not inconsistent with our earlier holding that a trade-mark cannot be so divided. This limitation is not of the trade-mark right itself, but of .the fraction thereof which has been lost.
'I'he first objection is that because the trade-mark “Old Crow” belonged to the Heilmans for use upon blended whisky, and because this is an article of the same descriptive qualities as plaintiff’s straight whis-ky, the registration was forbidden. This objection must fall, when it is found, as we have held, that upon the basis of the former decree the adjudication does not establish the ownership of. the trade-mark by the Heilmans, but only a defensive right sufficient to protect them against the remedy then sought, and that, if we go behind the adjudication and into the facts, the Heilman right is not enlarged.
The decree below is reversed, with costs, and the case is remanded for the entry of a new decree consistent with this opinion.
Coffee and cocoa, Baker v. Harrison (Ct. App. D. C.) 338 Off. Gaz. 770; toilet brushes and tooth brushes, Florence Co. v. Dowd (C. C. A. 2) 178 Fed. 73, 101 C. C. A. (565; soda and baking powder, Layton Co. v. Church (C. C. A. 8) 182 Fed. 35, 104 C. C. A. 475, 32 L. R. A. (N. S.) 274; axes and shovels, Collins v. Ames Co. (C. C.) 18 Fed. 561 (Mr. Justice Blatchford); tobacco and cigarettes, American Co. v. Polacsek (C. C.) 170 Fed. 117 (Coxe, Circuit Judge).
One of the stencils was “J. Crow-Bourhon-Paris, Ky.” — a plain declaration that “Crow” was a maker’s name, and not a Heilman trade-mark; and as there never was any “Crow” in “Paris, Ky.,” the intent seems clear enough.
Assuming that, at that date, “Bourbon” fairly meant a corn whisky from somewhere in Kentucky, even if not from Bourbon county.
Kohler v. Beeshore, 59 Fed. 572, 8 C. C. A. 215, Richter v. Reynolds, 59 Fed. 577, 8 C. C. A. 220, and Pittsburgh Co. v. Diamond Co. (C. C.) 85 Fed. 637, pertain to the word itself, not to its use.
Rehearing
On Petition for Rehearing.
An application for rehearing points out certain supposed errors in the opinion, and their existence and effect should be considered:
(a) We assumed that the distinctions between straight whisky and blended whisky and their attendant market conditions had existed, substantially as at present, from the commencement of the period under consideration. Undoubtedly, this assumption somewhat colors the discussion in the opinion. This assumption is now said to be wrong, aud our attention is directed to the decision of President Taft in the controversy arising under the Pure Food Law, and to its recital of facts in the trade history. This recital shows that prior to the Civil War, the greater part of all whisky sold in the usual retail methods had been, in different ways, purified and refined after leaving the original distiller, and had also been artificially colored and flavored • — -all by the methods then or later known as rectifying and blending. Only at about the time of the Civil War was it discovered that whisky, by aging in charred barrels, could be satisfactorily refined and colored, and, in a sense, flavored, without any secondary treatment. Thus and then what is now called “straight” whisky first came into existence.
Upon a review of the opinion, we cannot see that its conclusions are seriously affected by this correction of our misapprehension. The sales of “Old Crow” whisky made before 1865 by the predecessors of Gaines & Co. would have been more largely to rectifiers and less to the consumer than we had assumed would be natural, and so much reputation as the name had would be more among rectifiers and less among the users; but this is only a matter of degree. It comes to saying that the standing and reputation which grew up with the name were more local and less widespread than would have resulted under present day conditions; and correcting this matter of degree according to the fact will bring no different result. Even if up to a given date, say 1867, rectifiers had been the sole purchasers of the distillery product, and had been the only class to whom the product was known as “Crow” or “Old Crow,” this would not subject,the growth and development of the trade-mark right to any different principles.
This correction, and its resulting inferences, do not help the Hellman case. If it is improbable that such a name as “Crow” was adopted by one rectifier merely by chance, it is rather incredible that each of three rectifiers, in communities where Kentucky whiskies, came to market, fortuitously hit on the same unusual trade-mark; and to find that in 1865 three dealers were using a name which had become at least somewhat known in a near-by center of original production many years before confirms the conviction that the name must have acquired reputation enough to make it worth taking, or else that it had become at that time indicative of a class or type of product.
(c) It is said we were in error in assuming that “Old Crow” had anything to do with the age. of the whisky; but that, in fact, this word refers only to the age of the man, Crow. This may be so; but the same mistake would have been natural in the 60’s to those who heard the name, but did not know of the man; and as to its effect on the trade-mark development discussed in the opinion, it would not be important whether the natural inference that “Old Crow” implied age in the whisky was the right or the wrong, inference.
The petition assures us that there was no “implication of age in applying ‘Old Crow’ to the Heilmans’ blended whisky,” and that it was used as “Old Hickory” might have been. If so, the reference was to an individual; and as no man of, this name or so-called appears ever to have been known, except the Glenn’s creek James Crow, it would follow that the Heilman use must have been fraudulent.
The other criticisms which the petition makes on the opinion we have considered, and we think they are either based upon misapprehension or else are sufficiently covered by the opinion itself.
The application for rehearing is denied.
The latter seems to be the interpretation expressly adopted by the Eighth Circuit opinion in saying that the Heilmans at this period “employed these words as descriptive terms.” Kahn v. W. A. Gaines & Co., 161 Fed. at page 502, 88 C. C. A. at page 437.