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Blue Bell, Inc. v. Farah Manufacturing Co. | 508 F.2d 1260 (1975)
Trademarks prevent consumer confusion and distinguish goods in commerce. When you see a trademark, you know who made a product and what kind of product it is. But what happens when two companies try to use the same mark? The nineteen seventy-five case of Blue Bell, Incorporated versus Farah Manufacturing Company decides this issue.
In May of nineteen seventy-three, Farah Manufacturing Company created a trademark using the phrase Time Out and an hourglass logo for its new stretch menswear and cleared the mark with counsel. Farah didn’t apply for federal trademark registration. On July third, Farah sent slacks with the Time Out mark to its regional sales managers. Shipments to customers began in September.
Unbeknownst to Farah, another company called Blue Bell developed a trademark using the phrase Time Out for a line of men’s sportswear at the same time. Blue Bell’s mark used a logo of a referee’s hands forming a T. Blue Bell cleared the mark with counsel but didn’t apply for federal registration.
Blue Bell already had a line of slacks under the trademark Mr. Hicks. On July fifth, Blue Bell began shipping out Mr. Hicks slacks with both the Mr. Hicks mark and its new Time Out mark on them. Blue Bell continued sending customers Mr. Hicks slacks with the Time Out mark until August, when Blue Bell started producing Time Out products. In September, orders began, and in October, scheduled shipments began.
By late October, each company had received more than one hundred and fifty thousand orders. Then, Blue Bell found out about the similarity of the marks.
Blue Bell sued Farah for trademark infringement and unfair competition, seeking injunctive relief to keep Farah from using its Time Out trademark on its men’s clothing. Farah counter-claimed for similar relief against Blue Bell. Both parties sought summary judgment. The district court granted a permanent injunction in Farah’s favor. Blue Bell appealed to the Fifth Circuit.
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