Document: 344 U.S. 280 73 S.Ct. 252 97 L.Ed. 319 STEELE et al.v.BULOVA WATCH CO., Inc. No. 38. Argued Nov. 10, 1952. Decided Dec. 22, Mr. Wilbur L. Matthews, San Antonio, Tex., for petitioners. Marx Leva, Washington, D.C. (Alexander B. Hawes, A. Lloyd Symington, D.C., Sanford H. Cohen, George New York City, Isidor Ostroff, and Maury Maverick, on the brief), respondent. Justice CLARK delivered opinion of Court. 1 The issue is whether a United States District Court has jurisdiction to award relief an American corporation against acts trade-mark infringement unfair competition consummated in foreign country by citizen resident States. Bulova Watch Company, Inc., corporation, sued Steele,1 petitioner here, Western Texas. gist its complaint charged that 'Bulova,' properly registered under laws States, had long designated watches produced nationally advertised sold Company; petitioner, residing Texas, conducted watch business Mexico City where, without Bulova's authorization with purpose deceiving buying public, he stamped name 'Bulova' there assembled sold. Basing prayer these asserted violations States,2 requested injunctive monetary relief. Personally served process answered challenging court's over subject matter suit interposing several defenses, including his due registration mark pendency Mexican legal proceedings thereon, merits claim. trial judge, having initially reserved disposition jurisdictional until hearing merits, interrupted presentation evidence dismissed 'with prejudice,' ground court lacked cause. This decision rested findings committed no illegal within States.3 With one judge dissenting, Appeals reversed; it held pleadings disclosed cause action reach Lanham Trade-Mark Act 1946, 15 U.S.C. 1051 seq., U.S.C.A. § seq.4 dissenting thought 'since conduct complained substantially related solely done trade carried full authority law, were confined affected only Nation's internal commerce, (the Court) was enjoin such conduct.'5 We granted certiorari, 343 962, 72 1060. 2 Petitioner concedes, as must, Congress prescribing standards citizens may project impact beyond territorial boundaries Cf. Foley Bros., v. Filardo, 1949, 336 281, 284 285, 69 575, 577, 93 680; Blackmer 1932, 421, 436—437, 52 252, 254, 76 375; Branch Federal Trade Commission, 7 Cir., 1944, 141 F.2d 31. Resolution this case therefore depends construction exercised congressional power, not limitations upon power itself. And since we do pass claim, need now explore every facet complex6 controversial7 Act. 3 Act, which posited claims relief, confers broad powers courts statute's expressed intent 'to regulate commerce control making actionable deceptive misleading use marks commerce; protect used comme(r)ce from interference State, or legislation; persons engaged competition; prevent fraud deception reproductions, copies, counterfeits, colorable imitations marks; provide rights remedies stipulated treaties conventions respecting trade-marks, names, entered into between nations.' 45, 1127, 1127. To end, 32(1) holds liable civil registrant '(a)ny person who shall, commerce,' infringe manner detailed.8 'Commerce' defined 'all lawfully be regulated Congress.' district are all actions 'arising under' 39, 1121, can include injunctions,9 'according principles equity,' violation any registrant's rights. 34, 1116, 1116. 4 record reveals following significant facts purposes dismissal must taken true: largest manufacturers world, distributed countries. Since 1929, aural visual advertising, Spanish English, penetrated Mexico. Petitioner, first 1922, 1926 learned 'Bulova.' He subsequently transferred and, discovering been Mexico, 1933 procured mark. Assembling Swiss movements dials cases imported them such. As result distribution spurious 'Bulovas,' Company's Texas sales representative received numerous complaints retail jewelers border area whose customers brought repair defective 'Bulovas' inspection often turned out products company. Moreover, subsequent our grant certiorari prolonged litigation come end. On October 6, 1952, Supreme rendered judgment upholding administrative ruling nullified petitioner's 'Bulova.'10 5 agree activities, when viewed whole, fall scope stated legislation will extend unless contrary legislative appears. E.g., 437, 680. question thus 'whether intended make law applicable' case. Ibid. For 'the debarred rule international governing own high seas even countries other nations their nationals infringed. respect exercise but purport municipal establishes duty relation government.' Skiriotes State Florida, 1941, 313 69, 73, 61 924, 927, 85 1193.11 Minton, then sitting Appeals, applied principle involving methods competition: 'Congress practices although some outside limits States.' 31, 35. Nor tracing statutes differentiated enforcement policy Government itself private litigants proceeding statutory right. Thomsen Cayser, 1917, 243 66. 37 353, 597; Mandeville Island Farms Crystal Sugar Co., 1948, 334 219, 68 996, 92 1328; cf. Vermilya-Brown Co. Connell, 335 377, 140, 76; supra. public subserved same each In light deem encompass activities here. His operations effects nation. bought component parts wares filtered through country; competing goods could well reflect adversely reputation markets cultivated advertising here abroad. Under similar factual circumstances, have awarded trademark owners, prior advent broadened provisions Act.12 W. Luft Zande Cosmetic 142 536; Hecker H-O Holland Food Corp., 36 767; Vacuum Oil Eagle C.C.1907, 154 F. 867, affirmed, C.C.1908, 162 671. Morris Altstedter, Misc. 329, 156 N.Y.S. 1103, 1916, 173 App.Div. 932, 158 1123. Even most jealously read, Act's sweeping Congress' does constrict deprive previously exercised. material affixed rather than here,13 purchases isolation violate laws. They essential steps course abroad; themselves lose character they become part unlawful scheme. Bausch & Lomb Optical 321 707, 720, 64 805, 812, 88 1024; Univis Lens 1942, 316 241, 62 1088, 1095, 86 1408. '(I)n source forbidden * arises phase another program.' 237, 1006, 1328. Frankfort Distilleries, 1945, 324 293, 297 298, 65 661, 663—664, 89 951. sum, think so simple device evade thrust privileged sanctuary borders. 6 Banana Fruit 1909, 213 347, 29 511, 53 826, compels nothing contrary. upheld Appeals' affirmance damage predicated alleged Sherman §§ 1—7, note.14 complaint, substance, Company monopolization banana import Central America instigation Costa Rican governmental authorities seize plaintiff's plantation produce Panama. reasoned plaintiff shown monopoly found liability seizure, sovereign act nation.15 agreed grounded nation's acts. Viewed context, holding meant confer blanket immunity radiate consequences merely because initiated Unlawful country, absent posture before us, decisive; much 66, 597, Sisal Sales 1927, 274 268, 47 592, 71 1042.16 Sisal, crux 'not something government at parties'; 'own deliberate acts, elsewhere, about results page 276, 594, 1042. And, unlike case, whatever once conferred decided take away. doubt Court's appropriate if warranted after trial. 1121. Mexico's 'Bulova'; conflict might afford pretext would impugn law. question, therefore, valid affect either propriety us. Where, sovereignty nation, exercising equity command cease perform jurisdiction. Jersey York, 1931, 283 473, 51 519, 75 1176; Massie Watts, 1810, Cranch 148, 181; Salton Sea Cases, 9 172 792; National Lead 1947, 332 319, 351—352, 363, 67 1634, 1649, 1655, 91 2077.17 8 Affirmed. BLACK took 10 REED, whom DOUGLAS joins, dissenting. 11 trade-marks. further makes holder 'any trade-mark. 32(1), 1114(1), 1114(1). being 12 bases instant occurred stamping sale watches. There assembly Purchasers petitioners Assuming throughout presented construction: Whether apply exposed. 13 'The canon teaches Congress, appears, (421), (252), 375, approach whereby unexpressed ascertained.' Utilizing approach, appear Act? If does, appears general terms, i.e., *.' Language nonexplicit considered construing 357, 513, 826. 'Words universal scope, 'every contract restraint trade,' shall monopolize,' etc., taken, course, mean everyone legislation, legislator able catch.' 'operation effect law-maker legitimate power.' true parties corporate federal courts. 14 generally phrased compared language Fair Labor Standards 201 construed 76. explicitly stating covered 'possessions' 'possession' those areas are, statement specific deemed necessary. Where involves criminal statute 'enacted right defend obstruction, citizens,' necessary 'shall countries'. Bowman, 260 94, 98, 43 41, 149. also require response nonresident citizen. 375. A situation met where sovereign. See 1193; Old Dominion S. Gilmore, 207 398, 28 133, 264. 16 none exceptional considerations play. Petitioner's unfinished commercial act. said engaging finished bearing purchased purchasers, collusion purchaser. trade-mark, 'within It should utilized basis petitioner. like While condone piratic neither believe irrespective place occurred. Such extensions bring nations, fully capable punishing infractions laws, words sovereignties. Joined defendant Steele y Cia., S.A., succeeded, Steele's wife Sofia possessed community interest shows relied diversity citizenship amount averred. concerned suit, stop consider significance, any, averments. Pecheur Lozenge Candy 315 666, 853, passage note infra. unreported fact conclusions amended, R. 246—248. 232, 237. 194 567. Id., 573. discussions Erie Tompkins, 1938, 304 64, 58 817, 82 1188, see Dad's Root Beer Doc's Beverages, 1951, 193 77; C. Johnson Son Johnson, 175 176; Campbell Soup Armour 795; Stauffer Exley, 1950, 184 962. Product Dwinell-Wright D.C.1942, F.Supp. 499. Zlinkoff, Tompkins: Relation Law Trade-Marks Unfair Competition, 42 Col.L.Rev. 955 (1942); Bunn, Harv.L.Rev. 987 (1949). See, e.g., Timberg, Trade-Marks, Monopoly, Restraints Contemp. Probs. 323 (1949); Brown, Advertising Public Interest: Legal Protection Symbols, 57 Yale L.J. 1165 (1948). Compare, Pattishall, Monopoly Phobia, 50 Mich.L.Rev. 967 (1952); Rogers, Social Function 'Any (a) use, consent registrant, reproduction, counterfeit, copy, imitation connection sale, offering services likely confusion mistake deceive purchasers origin services; (b) reproduce, colorably imitate labels, signs, prints, packages, wrappers, receptacles, advertisements services, hereinafter provided chapter, 35, 1117, 1117 (profits, damages costs); 36, 1118, 1118 (destruction infringing articles); 38, 1120, 1120 (damages fraudulent registration). Sidney Secretary Economy, Second That reprinted, translated, Appendix III respondent's brief. Oppenheim, International (6th ed., Lauterpacht, 1947) 145, p. 297. 96, 124, requiring 'in among nation'. Printing Lithograph Griggs, Cooper 279 156, 49 267, 650; Pure Puritan 127 6. 867. 1908, 166 261, affirming, C.C., 160 184. pages 264, 266. Aluminum America, 148 416, 443—444. Ford 273 593, 620—621, 531, 570, 793; Lamar 240 60, 65—66, 255, 256—257, 60 526; Strassheim Daily, 1911, 221 280, 284—285, 31 558, 560, 55 735. 17 Cole Cunnigham, 1890, 133 107, 117—119, 269, 272—273, 33 538; Phelps McDonald, 1878, 99 307—308, 25 473; Securities Exchange Commission Minas de Artemisa, 150 215; Restatement, Conflict Laws, 96. British Nylon Spinners, Ltd. Imperial Chemical Industries, Ltd., (1952) All Eng. 780, 782 (C.A.).

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