Joseph Schlitz Brewing Co. v. Houston Ice & Brewing Co.
Headline: Beer packaging dispute: Court upheld lower courts in allowing a rival brewer to keep using brown bottles and a different brown label, finding overall differences avoid consumer deception.
Holding:
- Allows competitor to keep using its brown-labeled beer bottles.
- Shortens protection for common packaging like brown bottles or labels alone.
- Requires trademark owners to show labeling, not just bottle color, actually causes confusion.
Summary
Background
A brewer sued a competing brewer in a bill in equity to stop use of a trade-mark. Both companies sold beer in brown bottles with brown labels. The plaintiff claimed the defendant's label infringed or was used in a way meant to deceive and to unfairly interfere with the plaintiff's goodwill. The lower courts found for the defendant, and the Supreme Court limited its review to whether the defendant’s admitted acts could be deemed a legal wrong.
Reasoning
The Court asked whether the defendant’s label, together with the common brown bottle and label, actually caused deception. The opinion notes the plaintiff conceded it could not claim exclusive rights in the brown bottle, the brown label, or the two combined. The Court compared the two labels and found important differences: shape, the style and meaning of the script, and how the labels are attached to the bottle. The plaintiff’s Schlitz label is wrapped in a spiral; the defendant’s is pasted around the bottom in the usual way. These differences made mistake unlikely, so the Court affirmed the judgments for the defendant.
Real world impact
The ruling lets the defendant continue using its current brown bottle and label and affirms that common packaging elements alone are not enough to prove unlawful imitation. Sellers of similarly packaged goods must show that the additional inscription or presentation, not just bottle color or label color, produces consumer confusion. The decree was affirmed, so this decision resolves the case in the defendant’s favor.
Dissents or concurrances
Two Justices, McKenna and Pitney, dissented from the judgment.
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