Melrose-Drover Ltd v. Heddle [1901] ScotLR 39_529 (20 November 1901)

Melrose-Drover Ltd v. Heddle [1901] ScotLR 39_529 (20 November 1901)

A bankrupt former owner whose business and goodwill have been sold by the trustee cannot use any trade-marks, labels, or devices previously associated with that business, whether or not they contain the firm name, as this would mislead the public and infringe the purchaser's rights. The interdict must extend to all such marks and devices to prevent passing off.

Citation
[1901] ScotLR 39_529
Parties
Complainer/respondent: Melrose-Drover Limited; Respondent/reclaimer: James Heddle; Respondent/reclaimer: James Heddle & Company
Jurisdiction
Scotland
Judgment Date
20 November 1901
Procedural Posture
Suspension and Interdict / Inner House Appeal (reclaiming Note)
Outcome
Interdict granted as prayed; interlocutor of Lord Ordinary recalled; reclaiming-notes refused.
Legal Topics
Sale of Business, Goodwill, Trade Marks, Passing Off, Use of Firm Name After Bankruptcy
Bankruptcy Intellectual Property Commercial Law Sale of Business Goodwill Trade Marks Passing Off Use of Firm Name After Bankruptcy

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Parties

Melrose-Drover Limited

Complainer/respondent

James Heddle

Respondent/reclaimer

James Heddle & Company

Respondent/reclaimer

Procedural Posture

Suspension and Interdict / Inner House Appeal (reclaiming Note)

Legal Issues

  1. 1 Whether a bankrupt former owner may use trade-marks and labels of a business sold by trustee
  2. 2 Whether use of similar trade-marks or firm name constitutes misrepresentation or passing off

Ratio Decidendi

A bankrupt former owner whose business and goodwill have been sold by the trustee cannot use any trade-marks, labels, or devices previously associated with that business, whether or not they contain the firm name, as this would mislead the public and infringe the purchaser's rights. The interdict must extend to all such marks and devices to prevent passing off.

Court Disposition

Interdict granted as prayed; interlocutor of Lord Ordinary recalled; reclaiming-notes refused.

Orders

  • Interdict, prohibit, and discharge respondents from carrying on business under the name of James Heddle & Company and from using trade marks, trade names, brands, and labels previously used in connection with that business, whether or not containing the firm name.
  • Find complainers entitled to expenses.