Crystaltone Radio Corporation,And Samuel; Glick, Individually, and trading as Pontiac; Radio Company

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IN THE MA'ITER OF CRYSTALTONE RADIO CORPORATION LAND SAMUEL GLICK, INDIVIDUALLY, AND TRADING AS PONTIAC RADIO COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD 'fO THE ALLEGED VIOLATION OF SEC. I! OF AN ACT OF CO~GRESS .APPROVED SEPT. 26, ljl4 Docl•et 2225. Complaint, Aug. 18, 1934-Decision, June 30, 1937 Where the names and symbols "Edison," "Victor," and "Brunswick," as names and designations of well-lmown, famous, or long-established individuals or companies and corporations, had long been extensively advertised and featured by the various owners thereof and had come to be standard brands and r;:symbols when u~ed as company, corporate, and trade names and us well-Jmown mark.~ and bl'lln<ls on radio sets, radio parts, nud Jil•e products which, thus marked, had a fixed and stable value in the trade and Industry genrrnlly tlu·oughont the Unitru States and foreign countries, and were relied upon by purchasing public, whm usrd on radio sets and lilw JJrodn<:ts, and In said lmlnstJ fell IH! lnrlirntlng l1igh },;landaru, reliable, and gpnulne products, ami usc thereof lnfiurnred purchase of such products nnd inrrrnsrd F;ale~. Yalur of whirh were> lncrE>fls('(I hy nmnbPr of deniers in F;aid proclnets, and F;nid names, letters, and ,;;symbols, attncheu to ~:;aid products, bad value- to till' thonsauds of dealers engngt>u In the ~Sale uno distribution of st:ch stanrlaru brand prouucts and were valuable to tbe owuers thereof In their use and employment ln commerce; and thereafter, n corporation nnd an individual, ofllrer, and director thereof, engaged Jn the manufacture, sale>, and dlstribntlon of radio sets, upon which they plnced, and caused to be plnccd, escutcheons and name plates with names, Jrtters, marks, brands, and symbols etched or stamped thereon, to designate the mnkers or brand names of said sets; In furtherance of n scheme to deceive the puulic and compete unfairly with other manufacturers of and dl'alers in such products- Adopted and made ure of names, marks, brands, and symbols of corporations and Individuals well-known and long-established In the radio and like in· dustries, without the authority of the legal owners lllld users thereof, and Included among such names, marks, brands, and symbols, thus adopted and used by It, "Edison," "Victor," and "llrunswlck," und such colorable lmita· Uons and simulations thereof as "Eulson" with representation of a bell. "Victor International," and "llr·onswlck," and made, sold, and shipped in Interstate commrrce their sa ld srt~, upon whlrh wrre plaeeu escutcheons· and name plates bearing such namrs, marks, hrnncls, awl s.rmhols; With result that public was lt-11 to uellere that prochwts thus ~;old, mnrkP<l nnd ldentitl!'d wrre tho:--e of the wt-11-known compnnlrR or lnh•rests referrrd toand iuentltleu, there was an llPlll'OJII'iution uy them vt the goorl will of, and an unfair diversion of bushwss from, such competitor compunles and in· terests and from othf'r competitors who clo not resort to such practices. their snld goods were glnm a salability which they would not otherwise have, and thry, themselves, hnd an advantage over thpir competitors wbo -CRYSTALTONE RADIO CORP., ET All 347 340 Complaint do not similarly lnisrepresent true origin of their goods and conceal the same under a reputable, but false, origin, and with effect of deceiving public purchasing said {lroducts into tlle false belief that they originated with well-known and reputable concerns, and of placing in the hand~ of others by whom their snd products were sold, means whereby injury might be nmJ wns dvJJe tv evmpet1tvrs denling in geuuine prmlucts boiJestly marked; to the injury of the lawful owners and users of said marks and symbols of said competitor companies and interests, and of competitors, ani) ot manufacturers of and dealers in the legitimate products, and of substantial competition in commerce, and to the prejudice and injury of the public: lleld, That such acts and practices were to the prejudice of the public aud competitors and constituted unfair methods of competition. Mr. Oarrel F. Rhodes for the Commission.

Complaint Pursuant to the provisions of an Act of Congress, approved September 26, 19l4, entitled "An Act to create a Federal Trade Comlnission, to define its powers and duties, and for other purposes," the l•'ederal Trade Commission, having reason to believe that Crystaltone Uadio Corporation and Samuel Glick, individually and trading as ~>ontiac Uadio Company and as Crystaltone Radio Corporation, here· Illafter referred to as respondents, have been or are using unfair meth~ ods of competition in commerce, as "commerce" is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be h1 the public interest, hereby issues its complaint, ~;tating its charges ih that respect as follows: P AUAcnArii 1~ (a) Rt>spoiH.lent, Crystaltone Radio Corporation, is a corporation organized and existing under and by virtue of the law~ of the State of New York in November 1933, with its principal ofl~ce and place of business located at Gll Droadway in ,the city of New ¥ ork, State of New York. The officers of respondept corporation are Samuel Glick, president and treasurer, and Edith Marcus, secretary. Since its incorporation, said respondent has been engaged in the bus.illess of manufnctur·ing or assembling, and selling and distributing radio sets to the retail trade. Respondent sells its said radio sets to retail dealers locate~d in various States of the United States other than in the State of New York, and when so sold respondent causes said radio s!.'ts to be transported from the city of New York, State of :N'ew York, thro11gh mHl into other Stutes of the United States, to the Purchasers thereof at their respective locations. In the course amJ <:conduct of its said business the respondent is in competition "·ith Var~ous other persons, partnerships, and corporations engu~ed. in ~he busmess of ma.nufa~turing or assembling and selling and d1stnbutmg radio sets to retail (lealers and the public in interstate commerce. 348 FEDERAL TRADE COl\Il\IISSION DECISIONS Complaint 25 F. T. C. (b) Respondent, Samuel Glick, is an individual and from June 1933 to November 1933 was engaged in business under the trade name an<l style of Pontiac Radio Company, with his principal office and place of business located at 44 Bond Street in the city of New York, State of. New York.. Said trade name Pontiac Radio Company is owned by said respondent Glick, and is registered as n trade name in the County Clerk's Office of the County of Nev York, State of New York. During the time that he was engaged in business under the trade name Pontiac Radio Company, rel'pondent Glick manu· factured or assembled radio sets and Rohl them to the retail trade. Respondent Glick sold the radio sets manufactured or assembled by him to retail dealers locatl.'d in various States of the United States other than in the Shtte of New York, and when so sold respondent caused said radio s<.'ts to he transported from the city of New York, State of New York, through anrl into other States of the United States to the purchasers thereof at their rcsp('ctive locations. In the course and conduct of his said. business respondent Glick wus in competition with vnriow:; othpr persons, partnerships, and corporations engaged in the Lusin('SS of manufacturing or assem· bling radio sets, and selling them to retail d('a]ers in interstate colllmerce. Respondent Glick still oWJlS the name ''Pontiac Radio COillpany," which is registered as a trade Home, as lwretofore F<'t forti .. Immediately upon the incorporation of rpspondent, Crystnltone Radio Corporation, said respondent succeeded to the business tlwreto· fore conducted by the respondent Glick, und<>r tlw llHm(' anrl style of Pontiac Uadio Company aiel said Lusin('SS Is HOW being coll<luctell by respondent corporation. RPspondent Samuel Glick at all times since the organization of the respomlent Crystaltonc Ra1lio Corpora· tion has been president the>reof, has owned and. controlled substantially all of its issued and outstanding capital stock, and hns con· trolled and dominated sai<l Crystaltone Radio Corporation. Said respondent Crystaltone Radio Corporation, although a. corporation, is a. means by which said respondent Samuel Glick as an individual carries on tlle business hereinbefore described of saill Crystaltone Radio Corporation.

PAn. 2. Respondent, Crystaltone Radio Corporatitm, and respondent Samuel Glick, in the course and conduct of their res})('ctive busi· nesses have adopted and followed the scheme or method of appropriating the names of well-known manufacturers and applying theJll to the radio sets manufactured or assembled and sold by them, there· by appropriating to themselv£>s their goodwill by the sale of their radio sets to the purchasing public as sets made by such manufacturers.

CRYSTALTONE RADIO CORP., ET AL. 34~ 846 Complaint PAn. 3. For more than thirty years prior to his death on October 18, 1931, Thomas A. Edison had been known and recognized throughout the various States of the United States and foreign countries as the i11ventor, patentee, owner, and manufacturer of numerous electrical devices of various kinds ru1d descriptions, and of machi.nes for the reproduction of the human voice, which have acquired a wide and favorable reputation, and are in great demand by the trade and purchasi11g public who desire Edison products. Among the machines for the rPprodnction of the human voice manufactured by companies Which the said Thomas A. Edison organized and controlled. are phonographs, dictaphone and transcribing machines, radios, combination radios and phonographs, and many other articles of various kinds and character such as storage batteries, spark plugs, ignition coils,. and household electrical appliances. Many of the machines and articles above referred to bear the name "Edison" as part of their brand names, and said name "Edison" has acquired. a valuable good will as identifying the manufacturer of such machines or articles. Among the companies organized. anJ controlled by the said Thomas A. Edison before his death is Thomas A. Edison, Inc., which said company is still engaged. in the manufacture of many of the machines anJ articles invented. and developed by Thomas A. Edison. Thomas A. Edison, Inc., during the years 1928 to 1930, inclusive, manufactured and sold rudio sets valued at many millions of dollars, allll ?uring the said period spent several millions of dollars in advertising Its said radio products. All of the radio sets manufactured and sold by Thomas A. Edison, Inc., featured the name "Edison" as part of their brand name.

PAR. 4. Hespondents, Crystaltone Ra(lio Corporation and Samuel Glick, imli,·idually and trading as Pontiac Radio Company and as Crystaltone Hadio Corpomtion, in the course and coJHluct of their busi11ess have purchased what is known as escutcheon plates, which esentcheon plates hear various names, mHl which are attached in a Prominent place to radio sets. Respowlents have purchased and attach£><! to radio sets manufacturPtl or assembled, und sold by them, eReutdteon plates h£>aring the name "Edison" togethl:'r with the rep- ~es£>ntation of n llell. HespoiHlents have no authority or license frmn I'homas A. Edison, Inc., to use the name "Edison" on the radio 8Ns manufactured or assembled, and sold by them, and their sa:i<l 11R£> of that name in the manner 1lescribed hns a ca·pacity ancl tendency !0 and does mislead and deceive the trade and purchasing public 11lto the erroneous belief that the radio sets manufactured, or assembll'd and sold, hy respondent:. are radio sets which have been manu· 350 FEDERAL TRADE COMMISSION. DECISIONS Complaint 25 I<'. T. C. fttctured by Thomas A. Edison, Inc., and to cause the trade and purchasing public to buy said radio sets in that belief. PAR. 5. For many years last past the Victor Talking Machine Com· pany, Camden, N. J., has been manufacturing and selling phono· graphs and phonograph records, which phonographs have acquired a wide and favorable reputation, and have been in great demand by tll(' trade and purchasing public. During all this period the phonographs, phonograph records, and other articles manufactured and sold by said company have featured the name ''Victor'' as part of their brand names, which said name has been attached in a prominent place to said machines. In 1029 the Radio Corporation of America obtained control of said Victor Talking Machine Company, and or· ganized a company under the corporate name RCA Victor Company, which company is engaged in the manufacture and sale of radio sets, combination radio and phonograph sets, and other articles. All of said machines bear the name "Victor," either alone or in combination 'with other letters or words, in a prominent place on said machines. Said radio sets and combination radio and phonograph sets are sold to the purchasing public by retail dealers throughout the United States. During the past 25 years, the Victor Talking Machine Com· pany and its successor corporation, RCA Victor Company, have spent approximately $70,000,000 advertising their products, and the word "Victor" has always prominently appeared in said advertising-. At the present time the UCA Victor Company is advertising its radio sets in n. number of magazines having a large national circulation, an<l in other publications and newspapers. r AR. 6. Respondents, Crystaltone Uadio Corporation and Samuel Glick, individually and trading as Pontiac Radio Company and ns Crystaltone Radio Corporation, in the course and conduct of their business, have purchased radio sets with escutcheon plates attached thereto bearing the wortls "Victor," anll "Victor International," which sets they sell to the retail trade. On the escutcheon plates Rttached to said radio sets the name "Victor" is in large and promi· nent letters, and the word "International" is in small letters which are not readily seen by a prospective purcliaser. Respondents have no authority or license from the RCA Victor Company to use the name "Victor" on the radio sets sold by them, and their said use of thlt name, in the manner described, has the capacity and tendency to and does mislead and deceive the trade and purchasing public into the erroneous belief that the radio sets sold by respondents are radio sets which have been manufactured by the RCA Victor Corn· pany, and to cause the trade and purchasing public to buy said radio !-Jets in that belief.

CRYSTALTONE RADIO CORP., ET AL. 351 346 Complaint _ PAR. 7. During many years last past the Drunswick-Dalke-Collender Company has been a large manufacturer of billiard and pocket hilliard tables, bowling alleys, and various other articles, and its Products have acquired a wide and favomble reputation, and have been in great demand by the trade and purchasing public. During aU this period the products manufactured and sold by said company have featured the. name "Tirnnswirk" as part of their brand names, Which said name has been attached in a prominent place to said Products. In 1915 the Drunswick-Dalke-Collender Company began the manufacture and sale of phonographs and phonograph records and sometime later began the manufacture and sale of radio sets and combination radio and phonograph sets, on all of which articles the llame "Drunswick" was featured in a prominent place on said ma- <·hines. In Hl30 the radio and phonograph division of the business Was sold. to Warner Dros. Pictures, Inc., which company organized llnder the corporate name of "Tirunswick Radio Corporation" to 0}>erate the business. Said latter company obtained the exclusive light to use the name "Drunswick" in connection with said radio ~ets, phonographs. and accessories thereto. Until January 1, 1933, nrunswick Radio Corporation continued the manufacture and sale of rauio sets and combination radio and phonograph sets, on all of \which sets the name "Drnnswick" \Yas prominently featured. Since January 1, 1933, the manufacture of radio sets has been stopped, but said Brunswick Radio Corporation still owns the manufacturing Nants in which said sets were manufactured, and may resume such n1nnufacture at some time in the future. The radio sets and combiltation radio and. phonograph sets manufactured by Drunswicknalke-Collender Company and Brunswick Radio Corporation "'ere Sold to the purchasing public by retail dealers throughout the United Stutes. During' all of the time that the Drunswick-Balke-Collender Company and the Brunswick llallio Corporation were manufacturing 0nd selling radio sets and combination radio and phonograph sets, said comp:mirs expendCLl large sums of money advertising said sets, and the name "Brunswick" has at all times been prominently dis- Played in said advertising.

PAR. 8. Respondents, Crystaltone Radio Corporation and Samuel Glick, individually and trading as Pontiac Hadio CmY1P:l"" nnll ns Crystaltone Corporation, in the course and conduct of their bw;iness have purchasrd radio sets with escutcheon plates attached thereto bearing tho word "Bronswick," which sets tlwy ref'ell to tlle retail h·aue. The said name "Bronswick" is so nearly like the name "Bruns- \\·ick" in appearance uml sound that it is difficult for a purchaser to l<i8121"' 30-:::5 • Findings 25F. T. C. distinguish the difference, and the use of said name "Dronswick" by respondents in the manner described on radio sets sold by them has the capacity and tendency to and does mislead and deceive the trade and purchasing public into the erroneous belief that the radio sets sold by respondents are radio sets which have been manufactured by the Drunswick Radio Corporation, and to purchase such radio sets in such erroneous belief.

PAn. 9. The use by respondents on the radio sets manufactured, or assembled, ami sold by them of the names "Edison," "Victor,' 1 "Victor International," and "Bronswick," in the manner set forth hereinabove is false, deceptive and misleading to the trade and pur~ chasing public, and tends to and does, divert trade to respondents from their said competitors who do not use such false, deceptive and misleading names for the radio sets manufactured, assembled, and sold by them. Thereby substantial injury has been done and is being clone by all of the said respondents to substantial competition in interstate commerce.

PAn. 10. The ahove alleged acts and things done by respondents are each and all of them to the prejudice of the public and respondents' competitors and constitute unfair methods of competition in interstate commerce within the intent and meaning of Section 5 of an Act of Congress approved September ~·G, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

REPORT, FINDINGs .As TO THE FACTs, AND ORDER Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Corn· mission, to define its powers and duties, and for other purposcst the Federal Trade Commission on the 18th day of August 1934, issued, and served, its complaint in this proceeding upon respondents, Crystal!tone Radio Corporation and Samuel Glick, individually, and trading~ as Pontiac Radio Company, charging them with the use of unfair methods of competition in commerce in violation of the pro· visions of said act. The respondents filed a consolidated answer to the complaint with the Commission dated June 12, 1937, in which tl1c>y admit all the material allegations of the complaint to be true, and waive hearings on t11e charges set forth in the complaint, and consent that without further evidence or other intervening procedure, the Commission may issue and serve upon them findings as to the facts and conclusion drawn therefrom and an order to cease and de~ sist from the violations of law charged in the complaint. · CRYSTALTONE RADIO CORP., ET AL. 353 lii1dings Thereafter the proceeding regularly came on for final hearing before the Commission on said complaint and answer thereto; and the Commission having duly considered the matter and being now fully ad vised in the premises, finds that this proceeding is in the public interest and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS P AR.\GR.\PII 1. The respondent, Crystal tone Radio Corporation, is a corporation existing and doing business under the laws of the State of New York. Respondent, Samuel Glick, is an individual operating tmder the trade name of Pontiac Radio Company, and is also an officer and director of respondent, Crystaltone Radio Corporation. AU of the respondents aforesaid have their principal place of business at 44 'Vest 18th Street, New York City, N. Y., and are now, and for several years last past, have been engaged in the manufacture, sale, n11d uistribution of radio sets, upon which said products they place n.nd cause to be placed escutcheons and nameplates, with names, letters, marks, brands, and symbols etched. or stamped thereon to d<'~ignn.te th<' makers or brand names of said rarlio sets. Respond- P-nts S£'Jl anrl transport said products so marked from their place of 1.' Lusme:,;s. in the State of New York to purchasers thereof at their respective points of location in the States of the United States other than the State of origin of the shipment, and in the District of Columbia.

PAn. 2. For the purpose of selling radio sets and inducing the Public to buy said products, the respondent corporation and respondent individual, individually, and as officer, agent, and representative of said respondent corporation, herein set out :md described in para- ¥raph 1, have been for several years last past, and are now engaged In a scheme to deceive the pnhlic and to compete unfairly with other . tnannfucturers and dealc·rs in radio sets who are in competition with the said rc>spondc>nts in intrrstate and foreign commerce. In furtherance of snitl schc·me, the respnJHknts have alloptrd, made, usrd and sc~ld, and now make, use, s~>ll nnd ship in interstate commerce to <lJstrilmtors, dc>alers nnd others, radio sets upon which are placed escutchrons and numeplatrs bru.ring the names, marks, brands, and "~·mbols of corporations and indivilluals well known and long estabhsherl in the radio and like intlu~tries, which names, marks, brands and symbols were adopted antl used, and are now Leing used, by said respondents and otlwrs without authority or consent of the legal 0''"ners and users of saitl names, marks, Lrands and symbols. 354 FEDERAL TRADE COl\11\IISSION DECISIONS Findings 25 F. T. C. Among the names, marks, brands, and symbols so adopted and used by the respondents are the following: "Edison" and also "Edison" with the representation of a bell, which is found to be a colorable imitation and simulation of said name "Edison";

"Victor" and also "Victor International," which is found to be a colorable imitation and simulation of said name "Victor"; "Brunswick" and also "Bronswick," which is found to be a color· able imitation and simulation of said name "Brunswick." Said rrspondent corporation and said respondent individual, individually, and trading undrr the name Pontiac Radio Company, and as officer, agent, and rl'presentative of said respondent, Crystaltone Radio Corporation, with respect to radio sets and like products marked and branded with the said well known and established names, marks, brands, and symbols hereinabove set out and described, sell and ship said products so marked from their place of business to purchasers thereof located in the District of Columbia and in States other than lhe State or place of origin of said shipments, in interstate commerce without the authority or consent of the }('gal owners of said names, marks, brands, and symbols.

PAn. 3. (a) For more than thirty years prior to his death on October lG, 1D31, Thomas A. Edison had been known anJ recognized throughout the various States of the United States and foreign countries as the inventor, patentee, owner, and manufacturer of numerous electrical devices of various kinds and descriptions and of machines for the reproduction of the human voice, which have acquired a wide and favorable reputation and are in great domand by the trade and purchasing public who desire Edison products. Among the machines for the reproduction of the human voice manufactured by companies which the said Thomas A. Edison organized an<l controlled<l, are phonographs, dictaphones, and transmitting maehines, radios, combination radios and phonographs and many other. articlrs of various kinds and character.such as storage batteries, spark plu~s, ignition coils, and housPlwld electrical appliances. l\lany of the machines and articles above referred to bear the name "Edison" ~l'l part of tlH'it· bran(l, and such name "Edison" has acquired a valuable goodwill as idrntifying the manufachll'l'r of said machinrs or 11rticlrs.

Among the companies organized and controllod by the said Thomas A. Edison before his drath is Thomas A. Edison, Inc., which said company is still engaged in the manufacture of the machines and articles invl'ntl'd and developed by Thomas A. Edison. Thomas A. Edison, Inc., during the years 192G-30, inclusive, manufactured and ORYSTALTONE RADIO CORP., ET AL. 355 346 Findings sold radio sets valued at many millions of dollars, and during the said period spent several millions of dollars in advertising its said radio products. All the radio sets manufactured and sold by Thomas A. Edison, Inc., feature the name "Edison" as part of their brand name.

The name "Edison" refers to Thomas A. Edison, the great inventor in the electrical field and the pioneer in the talking machine and radio industry, the right to the use of which name was vested in Thomas A. Edison, Inc., by Thomas A. Edison and was extensively advertised and has long previously been used and is now used by 'Thomas A. Edison, Inc., on radio sets, phonographs and other electrical devices and appliances, sold and shipped in interstate and foreign commerce. Neither Thomas A. Edison nor the said Thomas A. Edison, Inc., have ever granted to respondents the right to the Use of the name "Edison" in any manner or consented to such use. (b) For many years last past the Victor Talking Machine Com- Pany, Camden, New Jersey, has been manufacturing and selling Phonographs and phonograph records, which have acquired a wide nnd favorable reputation and have been in great demand by the trade and purchasing public. During all this period the phonographs, Phonograph recorus, and other articles manufactured and sold by said company have featured the name "Victor" as part of their trade name, which said name has been attached in a prominent place to said machines, sold and shipped in interstate and foreign commerce. In 1029 the Radio Corporation of America obtained control of said Victor Talking Machine Company and organized a company under the corporate name "RCA-Victor Co.," and also organized a company Unrlrr the name of "The ncA l\fanufacturing Co., Inc., which company is engaged in the manufacture and sale of radio sets and combination radio and phonograph sets. All of said sets bear the name "Victor," either alone or in combination with other letters or ":ords in a prominent place on said sets. Said radio sets and combination radio and phonograph sets are sold to the purchasing public by retail dealers throughout the United States. During the past twenty-five years the Victor Talking :Machine Company has spent approximately $70,000,000 in aJ.rertising, anJ. the word ."Victor" has aways prominently appeared in said adnrtising. At the present hrne RCA-Victor Company is advertising its radio sets and radio tubes in a number of marrnzines havin•r a large national circulationa d. o o n 1n other publications and newspapers.

l' The name "Victor" when used on radio sets and radio tubes and Ike Products is the rightful property of the RCA-Victor Company and the Victor Division of the RCA l\Ianufacturing Company. Finrling-s 25 F.T. C. Neither the sairl Victor Talking ~lachine Company, Radio Corporation of America, The RCA Manufacturing Company, Inc., nor any of their subsidiaries or assigns have ever granted to respondents the right to use the name "Victor" in any manner or consented to such use.

(c) During many years last past the Brunswick-Balke-Collender Company has been a large manufacturer of billiard and pocket bil· hard tables, bowling alleys, and various other articles, and its products have acquired a wide and favorable reputation and have been in great demand by the trade and purchasing public for many years last past. During all this period the products manufactured and sold by said Company have featured the name "Brunswick" as part of their brand name, which said name has been attached in a promi· nent place to said products. In 1915 the Brunswick-Balke-Collender Company began to manufacture and sell phonographs and phono· graph records, and sometime later began the manufacture and sale of radio sets and combination radio and phonograph sets, on all of which articles the name "Brunswick" was featured in a prominent place on said products. In 1930 the radio and phonograph division of said Brunswick-Balke-Collender Company was sold to ·warner Brothers Pictures, Inc., which company organized the corporation under the corporate name Brunswick Radio Corporation to operate the business. Said latter company obtainl'd the exclusive right to use the name "Brunswick" in connection with said radio sets, phono· graphs and combination radio and phonograph sets. Until January 1, 1933, Brunswick Uadio Corporation continued the manufacture and sale of radio sets and combination radio and phono· graph sets, on all of which sets the name "Brunswick" has been prominently featured. Since January 1, 1933, the manufacture of radio sets by Brunswick Radio Corporation has been suspended but said Brunswick Radio Corporation still owns the manufacturing plants in which said sets were manufactured and may resume such manufacture at some time in the future. The radio sets and combi· nation radio and phonograph sets manufactured by Brunswick· Balke-Collender Company and Brunswick Radio Corporation were solll to the. purchasing public by retail dealers throughout the United States and in foreign countries. During all the time the Brunswick-Dalke-Collender Corporation and the Brunswick Radio Corporation were manufacturing and selling radio sets and combi· nation radio and phonograph sets said companies expended large sums of money in advertising said sets, and the name "Brunswick'' has at all times hl'en prominently displayed in said advertising. CRYSTALTONE RA[JIO CORP.,. ET AL. 357 346 Findings . "Bronswick," the name used by respondents, is a colorable imitatjon of the name "Brunswick" which has long been used by the Drunswick-Balke-Collender Company and the Brunswick Radio Corporation on radio sets, phonographs and combination radio and Phonograph sets. Neither Brunswick-Balke-Collender Company, Warner Brothers Pictures, Inc., nor Brunswick Radio Corporation have ever granted. (or consented) to respondents the right to the use ?f the name Brunswick (or Bronswick, a colorable imitation thereof) In any manner.

Said names, letters, and symbols are the names and designations of said well known and long established. individuals, companies, and <!orporations, and. are standard. brands and symbols "·hen used as company, corporate and. trad.e names, and as marks and brands on radio sets, radio parts and like products, and said products so marked have a fixed and stable value in the trade and ind.ustry generally ~throughout the United States and foreign countries. The purchas- Ing public relies upon said. well known brands, marks and. symbols :"hen used. on radio sets and like products, and in said industries as Indicating high standard, reliable and genuine products. The use of such names, letters and symbols influences the purchase of said Products and increases sales. The number of dealers in said products so marked, increase sales value. The said. names, letters, and ,,I -· syn1bols attached to said products have value to the thousands of dealers engaged in the sale and distribution of said standard brand Pt·oducts. The said names, letters and symbols arc valuable to those Persons, partnerships, and corporations o\ming them, and who have llsed and now use and employ them in commerce . .Because of the popularity of tho names "Edison," "Victor," "Bruns- ~\'lck," and the products beariug these names and symbols, manuactured and sold by the lawful owners thereof; the usc by respondents of said names and symbols, an.d simulations thereof, has led a;;d has the capacity and tendency to lead the public to believe that t e Products sold by respondents and so marked or identified are the ~roducts of said well known rcspccth·e companies or interests here- ~nabove referred to and identified and results in the appropriation b~ ~he rcspondcn~s of the ~ood will o~, and an u~fair div:rsion of SJness from said respectn·e competitor compames and mterests, lllld an unfair diversion of business from other competitors who do not resort to such practices, to the injury of the owners of said marks :~d 8Symbols and of said competitors, and to the prejudice and injury ~he public.

b an. 4. The use by respondents of the names, marks, brands, sym- 1 0 s, nnd devices as set out in paragraphs 2 and 3 is wholly unauthor- 358 FEDERAL TRADE COM1IISSION DECISIONS Findings 25F. T.O.

ized by. the owners of said names, marks, brands, symbols and devices and gives to respondents' goods a salability which they would not otherwise have, and gives to said respondents an advantage over their competitors who do not similarly misrepresent the tme origin of their goods and conceal the same under a reputable but false origin as do respondents. The said appropriation and use by said respondents of the reputation and good will of others at the expense of and injury to such others who have created such reputation and good will, has the capacity and tendency to deceive, and deceives the public purchasing said products into believing that respondents' protl· ucts originate with well known and reputable concerns contrary to the fact. Thereby substantial injury is clone by respondents to competitors and substantial competition in interstate and foreign commerce.

The purchasing public buying radio sets and like products, marked or branded with the said well known names n.nd ~symbols are of a common mind or belief, regardless of the selling price or of the source of supply, that said products are manufactured and sold by the lawful owners and users of said names, marks, brands, and sym· bois, and when said names, marks, brands, and symbols are placed upon radio sets, radio parts, and like products, such products are accepted as the products of those who have lawfully used and now use such names as marks, brands, and symbols upon like products as set out in paragraph 3 hereof. The name or brand being depended upon influences the sale of said products. l\Iembers of the purchasing public have purchased radio sets and like products branded and sold to the trade by respondents and others, which products were imitations of or less than the genuine products entered in traue by the lawful owners and users of said standard names, and have been deceived in such purchases. The manufacture, sale and delivery by respondents set out and described in paragraph 1, of radio sets anu like products, marked and branded with the names, anu symbols set out and described herein· above, without authority or consent of the legal owners and lawful US<'rs thereof, places in the hands of others to whom said products are sold, the means whereby injury might be and is done to competi· tors dealing in the genuine products honestly marked. Injury to manufacturers and dealers in the legitimate products is suffered by the sale by respondents of said products falsely marked, sold, and shipped in interstate and foreign commerce. Injury to the lawful owners and users of said standard brands, names, marks, and symbols is sufl'pred because of the manufacture, sale, and competition of said respondents' said products.

CHYSTALTO!\'E UADIO CORP., ET AL. 359 Order CONCLUSION The aforesaid acts and practices of the said respondents, Crystaltone Radio Corporation, and Samuel Glick individually and trading as Pontiac Radio Company, are to the prejudice of the public and ~·respondents' competitors and are unfair methods of competition in Interstate commerce and constitute a violation of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other Pnrposcs."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Comrnission upon the complaint of the Commission and the answer filed herein on the 12th clay of June 19:37 by respondents admitting all the material allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, and the Commission having mad£> its findings as to the facts and its conclusion that said respondents have violated the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,"

. It is ordered, That the rrsponclents, Crystaltone Radio Corporation, its officers, a()'ents, and representatives, and respondent, Samuel Glick, individually;, and trading under the name Pontiac Radio Coml)any or under a;1y other name, and their respective agents and rep- ~·csentatives, in connection with the offering for sale and sale in Interstate commerce and in the District of Columbia of radio sets nnu like products do forthwith cease and desist from representing: Directly or indirectly through the use in any manner of the trade names or marks "Edison," "Victor," or "Brunswick," or through the llse in any manner of any colorable imitations and simulations thereof, such as but without limitation, "Edison" with the represent . ' ahon of a bell, "Victor International," and ''Bronswick," or through the use of any other trade names or marks of which they are not the legal owners without the permission of the lawful owners thereof, or through any other means or device, or in any manner, that the radio sets and like products, devices, or appliances manufactured and sold by any of saiu respondents are manufacturrd, assembled, sold, sponsored, endorsed, approved, or licensed by Thomas A. Edi- ~n, !homas A. Edison, Inc., Radio Corporation of America, Victor ~lkmg Machine Company, Brunswick-Balke-Collender Company,1 \ arner Brothers Pictures, Inc., or the successors or assigns of any of said persons, partnerships, or corporations, or that said products Order 25F. T.C.

are manufactured, assembled, sold, sponsored, endorsed, approved, or licensed by any corporation, association, partnership, or person who, in fact, did not and does not manufacture, assemble, and sell said products.

It u further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a. report in writing, setting forth in detail the manner and form in which they have complied with this order.

HELEN ARDELLE, INC. 361 Syllabus