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Union Carbide Corp. v. Ever-Ready Inc., 531 F.2d 366, 188 U.S.P.Q. 623, 1976-1 Trade Cases P 60,790

Facts

Union Carbide Corporation, the holder of the registered trademark 'EVEREADY', brought an infringement action against Ever-Ready Incorporated, which was using the trademark 'Ever-Ready' on certain types of lamps and light bulbs. The dispute arose from the claim that the use of 'Ever-Ready' was likely to cause confusion with Carbide's established trademark. The district court ruled in favor of Ever-Ready, declaring Carbide's trademark invalid, which led to Carbide's appeal. The case involved issues of trademark validity, likelihood of confusion, and the effects of trademark registration.

In 1898 plaintiff's predecessor, American Electrical Novelty & Manufacturing Company, adopted the term EVER READY to distinguish its products. In 1901 the mark was changed to EVEREADY.

Issue

Whether the district court erred in declaring Carbide's trademark, EVEREADY, invalid and in finding that defendants' use of Ever-Ready on electrical products was not likely to cause confusion.

Whether the district court erred in declaring Carbide's trademark, EVEREADY, invalid; whether the district court erred in finding that defendants' use of Ever-Ready on electrical products was not likely to cause confusion; and whether the district court erred in holding that defendants' use of Ever-Ready does not constitute unfair competition or dilution under Illinois statutes.

Rule

Analysis

The court analyzed the evidence presented regarding the trademark 'EVEREADY' and its use by both parties. It considered the stipulation that the trademark registration was in force, but noted that this did not preclude a finding of invalidity if the mark had become generic. The court also evaluated survey evidence indicating consumer confusion and the extent of advertising by both parties. The conclusion drawn was that the district court had erred in its findings regarding the likelihood of confusion and the validity of the trademark.

Having carefully considered these factors, we conclude that we must face the issue of invalidity. Plaintiff may or may not have been prejudiced before the district court if counsel did not adequately brief or argue the validity of the trademark because he did not view it as in issue; nevertheless, counsel has not shown this court that it was prejudiced because evidence was not introduced which would have been had counsel believed validity was in issue.

Conclusion

The Court of Appeals reversed the district court's decision, holding that the validity of the 'EVEREADY' trademark was indeed in issue and that there was a likelihood of confusion between the two marks.

Reversed and remanded.

Who won?

The Court of Appeals ruled in favor of Union Carbide Corporation, reinstating the validity of its trademark 'EVEREADY'. The court found that the district court had improperly declared the trademark invalid and failed to adequately consider the likelihood of confusion between the two marks. The appellate court emphasized the importance of the trademark's incontestable status and the evidence of consumer confusion, which supported Carbide's claim of exclusive rights to the 'EVEREADY' mark.

The Court of Appeals ruled in favor of Union Carbide Corporation, emphasizing that the validity of the 'EVEREADY' trademark was in issue and that the district court had erred in its findings regarding the likelihood of confusion and the trademark's validity.

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