Cengage Advantage Books: Business Law Today, The Essentials 10th Edition by Roger LeRoy Miller

تمرين 16

Coca-Cola Co. v. Koke Co. of America
COMPANY PROFILE John Pemberton, an Atlanta pharmacist, invented a caramel-colored, carbonated soft drink in 1886. His bookkeeper, Frank Robinson, named the beverage Coca- Cola after two of the ingredients, coca leaves and kola nuts. Asa Candler bought the Coca-Cola Company in 1891 and, within seven years, had made the soft drink available throughout the United States and in parts of Canada and Mexico as well. Candler continued to sell Coke aggressively and to open up new markets, reaching Europe before 1910. In doing so, however, he attracted numerous competitors, some of whom tried to capitalize directly on the Coke name.
FACTS The Coca-Cola Company brought an action in a federal district court to enjoin (prevent) other beverage companies from using the words Koke and Dope for their products. The defendants contended that the Coca-Cola trademark was a fraudulent representation and that Coca-Cola was therefore not entitled to any help from the courts. By using the Coca-Cola name, the defendants alleged, the Coca-Cola Company represented that the beverage contained cocaine (from coca leaves). The district court granted the injunction, but the federal appellate court reversed. The Coca-Cola Company appealed to the United States Supreme Court.
ISSUE Did the marketing of products called Koke and Dope by the Koke Company of America and other firms constitute an infringement on Coca-Cola's trademark?
DECISION Yes for Koke, but no for Dope. The United States Supreme Court enjoined the competing beverage companies from calling their products Koke but did not prevent them from calling their products Dope.
REASON The Court noted that before 1900 the Coca-Cola beverage had contained a small amount of cocaine. This ingredient had been deleted from the formula by 1906 at the latest, however, and the Coca-Cola Company had advertised to the public that no cocaine was present in its drink. Coca-Cola was a widely popular drink "to be had at almost any soda fountain." Because of the public's widespread familiarity with Coca-Cola, the retention of the name (referring to coca leaves and kola nuts) was not misleading: "Coca-Cola probably means to most persons the plaintiff's familiar product to be had everywhere rather than a compound of particular substances." The name Coke was found to be so common a term for the trademarked product Coca-Cola that the defendants' use of the similar- sounding Koke as a name for their beverages was disallowed. The Court could find no reason to restrain the defendants from using the name Dope, however.
WHAT IF THE FACTS WERE DIFFERENT? Suppose that Coca- Cola had been trying to make the public believe that its product contained cocaine. Would the result in the case likely have been different ? Explain your answer.
IMPACT OF THIS CASE ON TODAY'S LAW In this early case, the United States Supreme Court made it clear that trademarks and trade names (and nicknames for those marks and names, such as "Coke" for "Coca-Cola") that are in common use receive protection under the common law. This holding is significant historically because it is the predecessor to the federal statute later passed to protect trademark rights (the Lanham Act of 1946, discussed below).