ness that another person of the same' or a similar name engaging in the same business will not be allowed tó use even his own name, without affirmatively distinguishing his goods or business.
“The secondary meaning of a name, however, has no legal significance, unless the two persons make or deal in the same kind of goods. Clearly the appellants here could make gloves, or plows, or cutlery under the name ‘Borden’ without infringing upon any property right of the old company. If that is true, they can make anything under the name ‘Borden’ which the appellee has not already made and offered to the public.”
Recent, well considered cases upon the law of unfair competition have expanded the narrow rule announced in the Borden Case to an extent that leads us to conclude that the Borden Case is out of harmony with the modern law of unfair competition. See cases cited note 1, infra.
A corporate name is in the nature of a property right. American Steel Foundries v. Robertson, 260 U. S. 372, 380, 381, 46 S. Ct. 160, 70 L. Ed. 317; Standard Oil Co. of N. Y. v. Standard Oil Co. of Me.
(D. C. Me.) 38 F.(2d) 677, 679; Iowa Auto Market v. Auto Market & Exchange, 197 Iowa, 420, 197 N. W. 321; Newby v. Oregon Cent. R. Co., F. Cas. No. 10,144;
Daughters of Isabella No. 1 v. National Order, Daughters of Isabella, 83 Conn. 679; 78 A. 333, 335, Ann. Cas. 1912A, 822; Fletcher Cyc. Corporations, (Per. Ed.) vol. 6, § 2415.
By the prior lawful entry into a field under a legally adopted name, and by prior appropriation and use thereof, a corporation acquires a right to such name which the law will recognize and protect. American Steel Foundries v. Robertson, 269 U. S. 372, 381, 46 S. Ct. 160, 70 L. Ed. 317; National Circle, Daughters of Isabella v. National Order of Daughters of Isabella (C. C. A. 2) 270 F. 723, 732; American Waltham Watch Co. v. United States Watch Co., 173 Mass. 85, 53 N. E. 141, 43 L. R. A. 826, 73 Am. St. Rep. 263; Wheeler Syndicate v. Wheeler, 99 Misc. Rep. 289, 163 N. Y. S. 817; Henry Mfg. Co. v. Henry Screen Mfg. Co., 204 App. Div. 27, 197 N. Y. S. 444; Rosenburg v. Fremont Undertaking Co., 63 Wash. 52, 114 P. 886; Federal Securities Co. v. Federal Securities Corp., 320 Or. 375, 276 P. 1100, 1102, 66 A. L. R. 934.
There is an important distinction between a corporate name and an individual name in respect to the manner of their acquisition. A corporation acquires its name by choice and need not select a name identical with or similar to one already appropriated by a senior corporation, while an individual’s name is thrust upon him.
Generally speaking, a trade-mark is applicable to the vendible commodity to which it is affixed, and a trade name to a business and its good-will. American Steel Foundries v. Robertson, supra.
The general purpose of the law of unfair competition is to prevent one person from passing off his goods or his business as the goods or business of another. American Steel Foundries v. Robertson, supra.
A business institution by handling only goods of high quality, by fair dealing, by judicious and honest advertising, by skillful management, and by prompt payment of its financial obligations over a period of years will establish a business reputation or goodwill which, though intangible, is of great value and is entitled to protection the same as any other property right.
A corporation may establish its corporate name as a trade name; it may build up a fine reputation for the high quality of its products, for financial responsibility, and for business integrity and fair dealing in the field within which it transacts its business. When another corporation enters that field for the purpose of engaging in a similar business and appropriates the same name or one so similar as to cause confusion in the minds of the public, its ability to injure the senior corporation is not limited solely to competition in the sale of its products. Any act committed by the junior corporation which would cause damage to the credit, or reputation f or integrity and fair dealing of the senior corporation, if committed by the latter, would injure it if the public, because of the similarity of the names, should attribute such act to the senior corporation.
Likewise, from the standpoint of the public, a third person might be induced to sell to, extend credit to, or otherwise deal with the junior corporation believing he was dealing with the senior.
In Newby v. Oregon Cent. R. Co., supra, the court said: :
, “Under the law, the corporate name is a necessary element of the corporation’s existence. * Any act which produces confusion or uncertainty concerning this name is well calculated to injuriously affect the identity and business of a corporation. And as a matter of fact, in some degree at least, the natural and necessary consequence