Posted by Eugene Volokh:
Lies, Damn Lies, and Grape Nuts:
http://volokh.com/archives/archive_2009_05_31-2009_06_06.shtml#1244218570


   Ann Althouse, guest-blogging at [1]InstaPundit posts about a [2]failed
   consumer fraud lawsuit about "crunchberries": Turns out there are no
   actual berries called "crunchberries" in Cap'n Crunch, but that's not
   a problem, the judge ruled. (Who knew?)

   But she also asks, "AND: Did anyone ever sue Grape-Nuts?," which is a
   great excuse to mention [3]Nashville Syrup Co. v. Coca Cola Co., 215
   F. 527 (6th Cir. 1914):

     Since [1892], [the Coca Cola Co.] has continuously manufactured and
     sold a syrup under the name, �Coca Cola�; and, used as a basis for
     carbonated drinks, the syrup, under this name, has had a large sale
     in all parts of the country.... Plaintiff enjoyed the exclusive use
     of the name from 1892 until 1910. In that year, J. D. Fletcher, now
     the active manager of the Nashville Syrup Company (herein called
     defendant), became interested with others in the manufacture of a
     somewhat similar syrup being sold under the name �Murfe's Cola.�
     Later in that year they changed the name of their product to
     �Murfe's Coca Kola,� and shortly afterwards, Mr. Fletcher became
     sole owner of the business, and the product was named �Fletcher's
     Coca Cola,� and has been sold by him and his successor, the
     Nashville Syrup Company, under that name. [Coca Cola Co. sued.]

     There remains the question whether the mark is deceptive.... [W]e
     assume that if the registered words clearly carried deception, and
     if their use really represented to the purchasers that the article
     was something essentially different from the thing which they
     actually received, the courts would not enforce any exclusive
     rights under such registration, both because plaintiff would come
     into court with unclean hands, and because such words could not be
     within the fair contemplation of the act, when it refers to �any
     mark * * * which was in actual and exclusive use as a trade-mark,�
     etc....

     The argument is that the use of the name, �Coca Cola,� implies to
     the public that the syrup is composed mainly or in essential part
     of the coca leaves and the cola nut; and that this is not true. The
     fact is that one of the elements in the composition of the syrup is
     itself a compound made from coca leaves and cola nuts. This element
     becomes a flavor for the complete syrup, and is said to impart to
     it aroma and taste characteristic of both. This flavoring element
     is not in large quantity (less than 2 per cent.), but it is
     impossible to say that it does not have appreciable effect upon the
     compound. The question then is whether the use of the words is a
     representation to the public that the syrup contains any more of
     coca or of cola than it really does contain....

     Plaintiff's counsel say, and so far as we see accurately say:

     �The use of a compound name does not necessarily * * * indicate
     that the article to which the name is applied contains the
     substances whose names make up the compound. Thus, soda water
     contains no soda; the butternut contains no butter; cream of tartar
     contains no cream; nor milk of lime any milk. Grape fruit is not
     the fruit of the grape; nor is bread fruit the fruit of bread; the
     pineapple is foreign to both the pine and the apple; and the
     manufactured food known as Grape Nuts contains neither grapes nor
     nuts.� ...

     We conclude that the name Coca Cola as applied to plaintiff's
     product, while undoubtedly suggestive, is not so substantially and
     really deceptive as to invalidate the registered mark.

References

   1. http://pajamasmedia.com/instapundit/79589/
   2. http://www.boingboing.net/2009/06/04/heartbroken-cereal-l.html
   3. 
http://www.archive.org/stream/cocacolaopinions00cocauoft/cocacolaopinions00cocauoft_djvu.txt

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