Upon the expiration of appellee’s patent for a toggle clamp, a device for clamping parts in industrial production, appellant copied a number of appellee’s clamps and prepared to advertise, manufacture, and sell them to the industry with its own trade-mark affixed in place of appellee’s trade-mark.
To forestall such action, appellee filed a complaint, claiming that, although the patent had expired, appellant, under the Lanham Trade-Mark Act of 1946, 15 U.S. C.A. § 1051 et seq., was guilty of unfair competition in copying and manufacturing such clamps, and asked that appellant be enjoined from advertising, manufacturing and selling toggle clamps, “confusingly similar in appearance” to appellee’s clamps.
Proofs were taken by deposition and by way of answers to interrogatories. From this evidence, it appeared that upon the expiration of appellee’s patent, appellant had exactly copied appellee’s clamps, affixing its trade-mark to the clamps in place of appellee’s trade-mark; and that appellant had advertised its clamps for sale, displaying in its advertisements an exact copy of appellee’s clamps, the likeness of which had been reproduced for such purpose from a photograph of appellee’s clamps.
Upon motions by both parties for summary judgment, the district court held that appellant was guilty of unfair competition for the reason that the evidence showed that appellant had copied not only the functional, but also the nonfunctional parts of appellee’s patented clamp; that the nonfunctional parts gave appellee’s clamp a general appearance identifying and distinguishing it as the particular product made by appellee; that because of such general appearance and shape of the clamp, so identified and distinguished, the patented article had attained a special significance, or secondary meaning, as to which appellee was entitled to protection against copiers; that, having copied several nonfunctional parts of appellee’s clamp which gave essence to the general appearance by which it was identified and distinguished as having been made by appellee, appellant was guilty of unfair competition; that appellant’s trademark affixed to the clamps which it made was not sufficient to avoid a probable
Some time after the filing of the appeal, appellee filed a motion in the district court for an order enforcing the injunction which was, in effect, a petition for an order to show cause why appellant should not be held in contempt of court for violation of the injunction. Upon the hearing of the motion, in a colloquy between the judge and counsel for both parties that extends for one hundred pages of the transcript of the record, appellant attempted to demonstrate to the court that it had made sufficient changes in the appearance of its clamps to avoid disobedience of the court’s injunction; and both parties then pointed out the similarities and differences in their clamps as compared to each other, as well as to clamps manufactured by third parties.
The district court severely reprimanded appellant during the course of this hearing, stating that it was prepared to punish it for contempt of court for violation of its injunction. 'However, appellant pointed out to the court a number of alterations it had made in the clamp subsequent to the issuance of the injunction. When it was stated that appellant, as one instance, had changed the color of its rubber handle from red, which was the color used by the appellee, to white, ap-pellee’s counsel proceeded to inform the court of the similarities still existing between the clamps, and called attention to the fact that appellant, instead of copying appellee’s claw form of stop, could have used a metal pin for a forward stop in the clamp; that a curve in the contour of appellee’s clamp did not have to be imitated; that instead of having two thicknesses of metal for the handle, appellant could have formed a loop metal handle; that in one of the clamps, appellant, instead of a “T” handle, could have used a straight up- and-down handle, or a handle projecting to one side, and a number of other small changes were pointed out to the effect that the patent features could have been availed of by. appellant to make a clamp “that is not confusing to the public.” In reply to all of the foregoing, appellant submitted that substantially everything in the clamp which it copied was functional rather than nonfunctional, and that it was so admitted in the testimony of appellee’s president; and that, further, if appellant adopted the changes in the clamp pointed out by appellee, it would only be copying other forms of appellee’s clamps, or infringing on patented clamps of third parties. The trial court seemed impressed by the evidence that appellant could not make the clamps with the patented features unless it duplicated either the clamps in question or other clamps made by appellee— or infringed upon patented features of clamps made by third parties. Furthermore, in considering the testimony of ap-pellee’s president that everything about appellee’s clamp was “functional to an extent,” the court suggested the possibility of reconsideration of its views on a new trial, stating that it might entertain a motion for a new trial and see what
However, in the end, the district court arrived at the view that if appellee could show how appellant could take advantage of all of the patented features of the clamp and, at the same time, make the changes which appellee’s counsel had outlined, then appellant would be guilty of unfair competition unless such changes were made. The court thereupon filed supplementary findings of fact in which it set forth that the copying by appellant of all of the details of appellee’s clamps (except color of finish) was unnecessary from a functional standpoint; that numerous functionally equivalent, alternative constructions were available for the various clamp elements; that it was unnecessary for appellant to copy the distinctive appearance of appellee’s handle with a plastic handle grip, as well as ap-pellee’s distinctive claw-shaped forward stop or rear stop ears projecting from the base, or the distinctive curved upper contours of the base elements; that instead, appellant could have employed a handle formed as a continuous open loop or a wooden handle grip; that in place of the claw-shaped forward stop, it could have employed a stop pin, or button welded to the handle elements; that it could have used a rear stop pin instead of the rear stop ears; that in place of the concavely curved upper surfaces of appellee’s clamp base, appellant could have employed a convex curve, or any other contour different from appellee; as well as several other small differences. The court further stated that the exact copying of appellee’s clamps in appellant’s advertising constituted unfair competition. Accordingly, the district court found that appellant had violated the injunction and had thereby incurred the penalties of such violation.
On appeal, it is the primary contention of appellant that upon the expiration of appellee’s patent for the clamp in question, there became dedicated to the public the patented article in the identical form in which it had theretofore been produced and marketed by the appellee. Moreover, appellant submits that, by affixing its trade-mark clearly and prominently upon the clamps manufactured by it, and by the prominent display of its name as manufacturer of the clamps in its advertisements, appellant clearly indicated to the public that the clamps were manufactured by it, and were not the product of appellee’s manufacture. Furthermore, it is the claim of appellant that, contrary to the findings of the district court, all of the parts of appellee’s clamp which it copied were functional; that upon the expiration of appellee’s patent, appellant could not have copied the clamp in question other than by making an exact copy, unless it either imitated other forms of the clamp made by ap-pellee or other forms of clamps already protected by patents in the hands of competitors; that it was unreasonable, as a condition of availing itself of appellee’s patent clamp, to require appellant to confine itself to forms of clamps other than those made by appellee, or other than those protected by patents in the hands of third parties; and, finally, appellant declares that it has done everything reasonable to avoid copying appellee’s clamp, even in unimportant and trivial nonfunctional features such as the device of changing the color of the handle and metal used in the clamp, as well as using a different handle in place of the form used by appellee. Appellant submits that if it is forbidden to manufacture the toggle clamps in the form in which they have been manufactured by appellee during the life of its patent, the result will be to continue appellee’s patent monopoly indefinitely beyond the expiration of its patent.
The issues before us for determination, as they appear from a review of the evidence and authorities hereafter to be noted, may be set forth as follows:
(1) Whether, upon the expiration of appellee’s patent, appellant had the right to manufacture exact copies of appellee’s clamps and sell them to the public;
■ , (2) Whether appellee’s clamps had acquired a “secondary meaning” in the
(3) Whether appellant, in affixing its own trade-mark to the clamps which it manufactured and sold, as well as by its methods of advertising, disclosing that it was the maker of the clamps in question, clearly informed the public that the clamps which it made and sold were not clamps made by appellee.
All of the foregoing propositions are variant and particularized statements of the same general question: whether appellant was guilty of palming off 'its goods as the goods of appellee.
It is a fundamental rule applicable to all cases of unfair competition that one man has no right to palm off his goods for sale as the goods of a rival dealer, and that he cannot, therefore, be allowed to use names, letters, or other indicia by which he may induce purchasers to believe that the goods which he is selling are the manufacture of another; and this principle is applicable although no technical trade-mark is used by either. James Heddon’s Sons v. Millsite Steel & Wire Works, Inc., 6 Cir.,
Appellant relies upon the decisions of the Supreme Court in the leading cases of Singer Mfg. Co. v. June Mfg. Co.,
In Singer Mfg. Co. v. June Mfg. Co., supra, the Supreme Court had occasion to pass upon the question of unfair competition, where, upon the expiration of the patent for the Singer sewing machine, a party not only copied the distinctive style of the machine but also copied and used the name of “Singer” in describing the machine which he manufactured. In its opinion, the Supreme Court was reviewing the opinion and decision of the circuit court in Singer Mfg. Co. v. June Mfg. Co.,
On review, the Supreme Court held that the Singer Manufacturing Company had adopted the word, “Singer,” as desig-native of its distinctive style of machines, rather than solely as indicating the origin of manufacture; that the patents which covered the machines had given to the Singer Company a substantial monopoly whereby the name, “Singer,” came to indicate the class and type of machines made by that company; that the name constituted their generic description and conveyed to the public mind the machines made by them; and that on the expiration of the patents, the right to make the patented articles and use this generic name of “Singer” passed to the public with the dedication, resulting from the expiration of the patents. The court declared that, under the above circumstances, when another party availed himself of this public dedication to make the machines and use the generic designation, he could do so in all forms, with the fullest liberty, by affixing the name, “Singer,” to the machines and by referring to it in advertisements and by other means, subject only to the condition that the name must be so used as not to deprive others of their rights or to deceive the public, and, therefore, that the name must be accompanied with such indications that the thing manufactured is the work of the one making it, as will unmistakably inform the public of that fact. Singer Mfg. Co. v. June Mfg. Co.,
It is to be especially noted that the complaint in the lower court had set forth that the June Manufacturing Company, “for the purpose of further availing itself of complainant’s (the Singer Company’s) reputation and trade name, and of inducing the belief that the machines manufactured and sold by it are manufactured in fact by complainant, * * * makes said machine
in the exact form and size, and with the same shape, outline, ornamentation, and general external appearance, of complainant’s machines”.
It seems clear, from the decision of the Supreme Court in the above case, that upon the expiration of a patent, a party may manufacture and copy the article patented in the identical shape, form, and appearance in which it was constructed during the existence of the patent; that the only obligation on the copier is to avoid misleading the public into the belief that'the article is manufactured by the prior patent owner; and that, in carrying out its obligation to avoid so misleading, it inform the public unmistakably that it is the product of the one making such copy.
Kellogg Co. v. National Biscuit Co.,
From the Kellogg case, the conclusion is to be drawn that one who claims that another is guilty of unfair competition in copying his product, must show that the consuming public is primarily concerned in the producer, rather than in the product itself; that upon the expiration of a patent, a copier is as free to share in the good will of the article as the prior patent owner who had built up such good will; and that the only obligation of the copier is to identify its product lest the public be mistaken into believing that it was made by the prior patentee.
Much is said in cases of unfair competition, involving the copying of the goods of a competitor, about the “confusion” of the public. In some instances, references to such confusion would seem to imply that if the article copied is identical to the original article, the public, not being able to tell the difference between the two articles, is confused; and that, since the copier is the cause of such confusion, he is accordingly guilty of unfair competition. That is not the law. The confusion for which the copier is held responsible, under the law of unfair competition, is not confusion resulting from the inability on'the part of the public to distinguish between similar articles, one of which has been copied from the other. It is rather confusion as to origin, not of goods, which controls on the question of unfair competition; and it is only if there is such relationship or analogy between the goods of a complainant and those of a defendant that ordinary retail purchasers are likely to be deceived as to their origin that there is, in law, unfair competition.
The identical imitation of the goods of another does not in itself constitute unfair competition. “The privilege to engage in business and to compete with others implies a privilege to copy or imitate the physical appearance of another’s goods. The public interest in competition ordinarily outweighs the interest in securing to a person the rewards of his ingenuity in making his product attractive to purchasers. But the privilege to imitate may be limited by legislative enactment. Thus, in order to encourage invention or art, a patent or copyright may, for a limited period of time, protect one’s interest in the physical appearance of his goods. The privilege is also qualified by the law of Torts to the extent necessary in order to prevent the sale of one’s goods as those of another and to prevent the procurement of the means of imitation of unfair methods.” Introductory Note to the subject of Confusion of Source, through Imitation of Appearance, Restatement of the Law of Torts, Volume 3, page 622.
The subject of imitation of goods and confusion of source is set forth at considerable length in the Restatement of the Law of Torts: “One who markets goods with an unprivileged imitation of the physical appearance of another’s goods is liable to the other for the relief appropriate under the rules stated [hereafter], except to the extent that the other has by his own conduct disabled himself from claiming such relief.” Section 711(c). “One who markets goods, the physical appearance of which is a copy or imitation of the physical appearance of the goods of which another is the initial distributor, markets them with an unprivileged imitation, under the rule stated in Section 711, if his goods are of the same class as those of the other and are sold in a market in which the other’s interest is protected, and * * * (b) the copied or imitated feature has acquired generally in the market a special significance identifying the other’s goods, and (i) the copy or imitation is likely to cause prospective purchasers to regard his goods as those of the other, and (ii) the copied or imitated feature is nonfunctional, or if it is functional, he does not take reasonable steps to inform prospective purchasers that the goods which he markets are not those of the other.”
“If the imitated feature is non-functional, then the imitation is unprivileged if, in fact, it is likely to deceive purchasers. Only steps which will effectively avoid this likelihood of deception can render the imitation of such a feature privileged.” Restatement of the Law of Torts, supra, pages 627, 628. (Emphasis supplied.)
A feature of goods is functional, under the rule above stated, if it affects their purpose, action, or performance, or the facility or economy of processing, handling or using them; it is non-functional if it does not have any of such effects. Ibid., Section 742.
The leading cases in the federal courts sustain the principles above set forth in the Restatement of the Law.
“Unfair competition is not established by proof of similarity in form, dimensions, or general appearance alone. Where such similarity consists in constructions common to or characteristic of the articles in question, and especially where it appears to result from an effort to comply with the physical requirements essential to commercial success, and not to be designed to misrepresent the origin of such articles, the doctrine of unfair competition cannot be successfully invoked to abridge the freedom of trade competition.” Marvel Co. v. Pearl, 2 Cir.,
“There are a multitude of cases bearing on this branch of equity but the principles governing them are as simple as the fundamental rules of honesty and fair dealing. As was stated in Perlberg v. Smith, 70 N.J.Eq. 638,
In Sinko v. Snow-Craggs Corp., 7 Cir.,
In a case in this circuit, American Fork & Hoe Co. v. Stampit Corp.,
A somewhat similar question was presented in James Heddon’s Sons v. Millsite Steel & Wire Works, Inc., 6 Cir.,
In Gum, Inc., v. Gumakers of America, Inc., 3 Cir.,
Mere similarity in appearance of plaintiff’s electric clock to the handsome external appearance of defendant’s higher-priced foreign produced clock unique in the horological world in that it was atmospherically operated, was held not to constitute unfair competition, especially since plaintiff’s clock was plainly marked as its product. Mastercrafters Clock & Radio Co. v. Vacheron & Constantin-LeCoultre Watches, Inc., D.C.N.Y.,
In Newburgh Moire Co., Inc., v. Superior Moire Co., Inc., D.C.N.J.,
Where a plaintiff had been selling a game under the name of “Parcheesi” and sought an injunction against defendant who was competing with a game called
A new competitor is not held to the obligations of an insurer against all possible confusion. He is not obligated to protect the negligent and inattentive purchaser from confusion resulting from indifference and is not required to make the market “foolproof.” He is only required to mark or designate his product in such manner that purchasers exercising ordinary care to discover whose products they are buying will know the truth and not become confused or mistaken. Life Savers Corp. v. Curtiss Candy Co., 7 Cir.,
From the above authorities are to be drawn the following guides for adjudication of this case: Upon the expiration of appellee’s patent, there became dedicated to the public the patented article in the identical form in which it had theretofore been produced and marketed by appellee; that appellant, on such expiration, was entitled to copy exactly appellant’s clamp in all particulars; that in manufacturing and selling such article, appellant was only obliged to avoid confusing and misleading the public into believing that its clamps were those of appellee; that the only confusion that appellant was obliged to avoid was confusion as to the source of the article sold —or, in other words, confusion as to who the producer was; that, in avoiding such confusion in making and selling the article, appellant was only required to mark his product in such manner that purchasers, interested in who the producer was, and exercising ordinary care to discover what products they were buying, would not be confused as to the source of the products.
The essence of unfair competition is the practice of palming off one’s product as that of another. There is no allegation in the bill of complaint that appellant was guilty of such conduct; and there was no proof to sustain such a charge, if it had been made. Moreover, in its findings and orders in this case, the district court did not find or hold that appellant had been guilty of misrepresenting the source of its products or palming them off as those of appellee.
Appellant copied appellee’s product as it had a right to do. It impressed upon that product its own trade-mark in place of the trade-mark that appeared on ap-pellee’s product. Anyone looking at the clamps could easily see which bore appellant’s trade-mark, and which bore appel-lee’s trade-mark. In fact, the president of appellee company, under examination by his counsel, testified why he thought that there was “opportunity for confusion” as a result of the production and distribution of a clamp identical to ap-pellee’s clamp, which bore appellant’s trade-mark. The reason he gave was that appellee’s distributors had inquired of appellee whether appellant, because of its trade-mark affixed to the clamps it manufactured, was distributing the clamps made by appellee. Because appellant’s trade-mark on its clamp prompted such a question does not indicate that appellant had not sufficiently differentiated its clamp from appellee’s clamp. The fact that such questions were asked shows that doubt was thrown into the minds of appellee’s own agents as to the origin of the clamp because of appellant’s trade
In an earlier case in this circuit, GlobeWernicke Co. v. Fred Macey Co.,
From an examination of the clamps made by appellant and of those made by appellee showing the different trademarks affixed thereto, and upon an inspection of appellant’s advertisements of its clamps clearly disclosing that it was the manufacturer of such clamps, it is clear that no purchaser exercising ordinary care could have been confused as to the source or producer of appellant’s clamps.
Since the trade-marks and advertisements clearly disclosed that appellant was the maker of its clamps, no issue of “secondary meaning” arises in this case so that the question whether
Appellee cites Wesson v. Galef, D.C. N.Y.,
in the past have been better known than the Smith & Wesson, along with the Colt revolver. The mere mention of their names in former times has inflamed the imagination of youths dreaming of deeds of derring-do; and these guns have been known to generations of soldiers, sportsmen, and police officers, as well as to their quarry. The Smith & Wesson revolver had many peculiar features which had made it known to the public as the product of the manufacturer of those guns. The barrel, for instance, was squared at the frame end, which was unnecessary. This was copied, as well as its peculiar profile. A stop on the left to hold the chamber when it was swung out of position was exactly imitated in shape. Other well-known characteristics of the gun were also copied. In view of these circumstances, the court found that the purpose of the imitation was to sell the copy as a Smith & Wesson revolver. In the instant case, there is no evidence to support any such findings.
What has been said disposes of appellee’s chief contention which is addressed to the proposition that where a manufacturer engages in the unnecessary
Notes
. The design patent, before its date of expiration, had been, however, declared invalid.
. “A trade-mark is a trade-mark because it is indicative of the origin of the goods. The original right to its exclusive use was not based upon any statute, but upon principles of equity; and the right is acquired, not by discovery or invention or registration, but by adoption and use. The entire substantive law of trade-marks (excepting statutory provisions and construction) is a branch of the broader law of unfair competition. The ultimate offense always is that defendant has passed off his goods as and for those of the complainant.” G. & C. Merriam Co. v. Saalfield, 6 Cir.,
“A registered trade-mark is infringed when sales by another under its mark are ‘likely to cause confusion or mistake or to deceive purchasers as to the source of origin of such goods’, 15 U.S.C.A. § 1114; * * * and the burden is on the plaintiff to show that such confusion is likely, The similarity must be ‘such as would cause confusion of any appreciable number of ordinarily prudent purchasers as to the source of the goods,’ Miles Shoes, Inc., v. R. H. Macy & Co., 2 Cir.,
. Although the issues of nonfunctional features and “secondary meaning” are not properly issues in this case, it may be observed that, as appellee’s president testified : “All parts [of the clamp] serve as a basic component, or otherwise they would not be there. * * * Everything that is on the clamp is functional to an ‘extent.’ ” Moreover, the handle of the clamp which appellant copied, and which appel-lee insisted was unnecessarily imitated, was the same handle that is disclosed in the drawings of the expired patent, and even if the issue of “secondary meaning” were properly before us, appellee would not be entitled to prevent appellant from copying that feature. “By the force of the patent laws not only is the invention of a patent dedicated to the public upon its expiration, but the public thereby becomes entitled to share in the good will which the patentee has built up in the patented article or product through the enjoyment of his patent monopoly. Hence we have held that the patentee may not exclude the public from participating in that good will or secure, to any extent, a continuation of his monopoly by resorting to the trademark law and registering as a trademark any particular descriptive matter appearing in the specifications, drawings or claims of the expired patent, whether or not such matter describes essential elements of the invention or claims.” Scott Paper Co. v. Marcalus Mfg. Co., Inc.,
Moreover, the range of functionality, under varying circumstances, includes shape, size, and color. See Vaughan Novelty Mfg. Co. v. G. G. Greene Mfg. Corp., 3 Cir.,
. In Enterprise Mfg. Co. v. Landers, Frary & Clark, supra [
“No doubt, with such identity in attractiveness, competition with complainant’s mills would be much more effective; but defendants overlooked the fact that a court of equity will not allow a man to palm off his goods as those of another, whether his misrepresentations are made by word of mouth, or, more subtly, by simulating the collocation of details of appearance by which the consuming public has come to recognize the product of his competitor.” The fact that the mills were marked with complainant’s and defendants’ names seemed of little import to the court.
In Yale & Towne Mfg. Co. v. Alder, supra [
In Rushmore v. Manhattan Screw & Stamping Works, supra [
The foregoing cases seem to emphasize what the court felt was the unfairness of -defendants’ appropriation of plaintiffs’ ideas and features of construction, and the identical copying of them; and this consideration seems to lie at the basis of decision in those cases, rather than any proof that the defendants palmed off their products as those of plaintiffs, or caused the public to believe that their articles came from plaintiffs, which is the criterion now generally adopted. While such an appropriation of another’s ideas and novel devices is not, in law, unfair competition, such conduct often appears to be and is piratical; but in protecting freedom of competition, the legislative branch of the government has not found a way to safeguard the originator of novel ideas and devices except within the framework of the patent and copyright laws. In a case involving such a problem, Judge Learned Hand, in Cheney Bros. v. Doris Silk Corp., 2 Cir.,
