Herring-Hall-Marvin Safe Co. v. Hall's Safe Co.

Background

The dispute arose after an Ohio company that originally made "Hall" safes sold its business, including its good will and trade rights, to a purchaser. The buyer (the petitioner) claims the sale gave it the grantable rights to the Hall name. The respondents are sons of the original founder who formed a new Ohio company after leaving the purchaser’s service and began using the Hall name and advertising safes as Hall’s Safes.

Reasoning

The Court examined what rights passed with the sale and concluded the buyer succeeded to the company’s good will and the advantage of long prior use of the Hall name. The Court held that the sons’ company, by using the Hall name without clear explanation, would likely lead the public to think their safes were the established product of the original company. Rather than ban the family name outright, the Court affirmed an injunction that forbids using "Hall" alone or with "Hall’s Safes" in corporate names, on safes, or in ads unless accompanied by information that the defendants are not the original company or that their goods are not products of the original company or its successors.

Real world impact

The decree protects the buyer’s purchased goodwill and prevents confusing or deceptive use of an established trade name. The defendants may still state truthful facts, such as being the founder’s sons or trained by him, but must avoid impressions that their business continues the original company unless they give clear notice. The cross bill against the plaintiff was dismissed.