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Wall v. Rolls-Royce of America, Inc.
4 F.2d 333
3rd Cir.
1925
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BUFFINGTON, Circuit Judge.

The appellant, Howard Wall, doing business under the name Rolls-Royce Tube Company, assigns for error the аction óf the Court below in enjoining him from using the name Rolls-Royce in carrying on his individual business. From the record and statement made at bar it appears Rolls-Royce is a hyphenated combination of the family names of the two founders of the British Corporation, Rolls-Royce, Limited; that said firm manufactured automobiles and aeroplanes and parts thereof; that by reason of the high standard of its product and the vоlume and spread of its trade the name Rolls-Royce has become associated all over the world with the excellence of its product, and is associated in the public mind with high-grade work, and gives its оwners an established, distinctive, and valuable business asset; that the plaintiff, Rolls-Royce of America, Incorporated, is a Delaware corporation, chartered in 1919; for the purpose of aсquiring, extending, and1 increasing in the United States the business of the British Rolls-Royce Company, and has since been engaged in said business "of making automobiles, aeroplanes, and' parts thereof; that the defendant is am individual engaged in the ‍​‌​​​‌​‌​‌​​‌‌​​​​​‌‌​​​​​‌​‌‌​‌​‌​‌‌​​​​‌‌‌​​​​‍business,of selling radio tubes-by mail; that he has no connection with either .of said Rolls-Royсe companies; that he has no one associated with:him in business, and no connection with or pеrmission from any person by the name of Rolls-Royce, nor any license from either, of said companies to use said names of Rolls-Royce; that trading as an • individual, and without ánjr per-; son being .associated. with him, or- without, any incorporation by that name, and without his individual • name being used, he has en-, terod into a mail order business, where he (Joes not come into personal contact with customers, but procures them by advertisements which do not mention him as an individual, but use the name “Rolls-Royce Tube Company.” His advertisements describe his radio tubes by quotation marks as “Rolls-Royce” radio tubes, and that such tubes are, “like their name, signifiсant of quality.” The advertisement directs correspondence be sent to “Dept. A. of the Rolls-Royсe Tube Company,” thus giving the suggestion of a business made np of this and other departments. The tubes so sent out are prominently labeled “Rolls-Royce,” with no indicia of place or origin of manufacture.'

From the pleadings and statements made at the argument, it is clear that the purpose of ‍​‌​​​‌​‌​‌​​‌‌​​​​​‌‌​​​​​‌​‌‌​‌​‌​‌‌​​​​‌‌‌​​​​‍Wall was to take and use the good will, fair name, and ’trade record which the two *334 companies had, through years of business integrity, given to the name “Rolls-Royce,” and thereby create in the minds of the public the impression that his mail order tubes bore some connection with the real Rdlls-Royee companies. Upon no' othеr theory than a purposed appropriation to himself, and an intent to convey to the public a false impression of Some supposed connection with the’ Rolls-Royce industries, can Wall’s аctions and advertisements be explained. Seeing, then, that by putting his individual business under the name “Rolls-Royce,” аnd utilizing its trade reputation and earned good will, Wall could greatly benefit himself, the converse of the proposition follows: That this veiling of his business under the name “Rolls-Royce” might, and indeed almost surely -would, injure the rеal Rolls-Royce industries, and, substantially detract from their good will and fair name. It is true those, companies made automobiles ‍​‌​​​‌​‌​‌​​‌‌​​​​​‌‌​​​​​‌​‌‌​‌​‌​‌‌​​​​‌‌‌​​​​‍and aeroplanes, and Wall sold radio tubes, and no one coulfi think, when he bоught a radio tube, he was buying an automobile or an aeroplane. But that is not the test and gist of this ease. Electricity is one of the vital elements in automobile and aeroplane construction, and, hаving built up a trade-name and fame in two articles of which electrical appliances werе all important factors, what would more naturally come to the mind of a man with a radio tube in his receiving set, on which was the name “Rolls-Royce,” with nothing else to indicate its origin, than for him to suppose that the Rolls-Royce Company had extended its high grade of electric product to the new, electric-using radio art as well- -And if this Rolls-Royce radio tube-proved .unsatisfactory, it would sow in his mind at once an undermining and distrust of the excellence of product,which the words “Rolls-Royce” had hitherto stood for.

In addition tо what has been said, it is quite-possible that the use of such .a name might lead third parties to credit the plаintiff’s business, on account of its name of “Rolls-Royce,” with an unwarranted financial reliability, and if such assumptiоns eventually prove unfounded the name of “Rolls-Royce” would suffer accordingly. Indeed, from the standpoint of commercial integrity, fair business, and trade equity, we feel the court ‍​‌​​​‌​‌​‌​​‌‌​​​​​‌‌​​​​​‌​‌‌​‌​‌​‌‌​​​​‌‌‌​​​​‍below, sitting in equity, was justified in preventing the defendant from veiling his business under the name of “Rolls-Royce,” for he had, and could have had, but one object in view, namely, to commercially use as his own a commercial .asset that belonged to others, the continued use and abstraction of which is so fraught with such possibilities of irremediable injury that the only way to remedy it is to stop it at the start.

The decree below is affirmed.

Case Details

Case Name: Wall v. Rolls-Royce of America, Inc.
Court Name: Court of Appeals for the Third Circuit
Date Published: Mar 5, 1925
Citation: 4 F.2d 333
Docket Number: 3265
Court Abbreviation: 3rd Cir.
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