Kellogg Company v. National Biscuit Company

305 U.S. 111 (1938)

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Nature of the Case

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Facts

Shredded wheat is a product composed of whole wheat which has been boiled, partially dried, then drawn or pressed out into thin shreds and baked. The shredded wheat biscuit generally known is pillow-shaped in form. It was introduced in 1893 by Henry D. Perky, and he was connected until his death in 1908 with companies formed to make and market the article. The Natural Food Company built a large factory at Niagara Falls, New York. In 1908, its corporate name was changed to 'The Shredded Wheat Company'; and in 1930 its business and goodwill were acquired by P. D has been in the business of manufacturing breakfast food cereals since its organization in 1905. In 1932, P sued D for alleged unfair competition. In 1935, the District Court dismissed the bill. It found that the name 'Shredded Wheat' is a term describing alike the product of P and D; and that no passing off or deception had been shown. It held that upon the expiration of the Perky patent No. 548,086 issued October 15, 1895, the name of the patented article passed into the public domain. The patent expired in 1912. The Circuit Court of Appeals affirmed that decree. Upon rehearing, it reversed with direction 'to enter a decree enjoining the defendant from the use of the name 'Shredded Wheat' as its trade-name and from advertising or offering for sale its product in the form and shape of P's biscuit in violation of its trademark; and with further directions to order an accounting for damages and profits. D appealed.