Opinion ID: 1185970
Heading Depth: 2
Heading Rank: 1

Heading: Secondary Meaning

Text: To establish that a trade name has acquired a secondary meaning, the party seeking relief must prove that the customers have associated the trade name with the source of the goods or services, rather than associating the trade name with the goods or services, themselves. Boron Oil Company v. Callanan, 50 Mich. App. 580, 213 N.W.2d 836, 838 (1973). When considering whether a secondary meaning has been established, the trier of fact must take into consideration the length of time that a trade name has been connected with the goods or services and the extent of the advertisement. Wyoming National Bank v. Security Bank & Trust Co., Wyo., 572 P.2d 1120, 1124 (1977). By extent, we mean the amount of money spent on advertisement, the method employed and the amount of advertisement that was done. Wyoming National Bank, supra. Here, Mr. Gerstner testified that during the thirty-some years that he and his partner operated Plains Tire and Battery Company they continually advertised in the newspaper and on the radio. The extent of the advertising varied. Mr. Gerstner estimated that the amount spent ranged from $50 to $300 a month, and the evidence presented at trial showed that in 1974 $4,481.82 was spent on advertising and in 1975 $4,860.00 was spent on advertising. Mr. Gerstner also testified that the name Plains Tire and Battery Company is a valuable asset and that he had spent thirty-one years building up the name. As he stated: It [the name Plains Tire and Battery Company] represented a lot of sweat and blood. I'll tell you, we built that name up from nothing. When we bought the place, it had a bad name, in fact. We didn't know it and it took us quite a few years to build that name up here in Laramie so it did mean quite a bit to me, you bet. Mr. Nicholls, one of the purchasers of Plains Tire and Battery Company, stated that he paid more money for the business than the actual building, equipment and inventory was worth because he was buying the name Plains Tire and Battery Company. As Nicholls stated: ... [W]ith my experience with Michelin in their early days of marketing in the United States, by and large their dealers were the best or the most respected dealers in a given city and the fact that they had been there for thirty some odd years, we felt that even though we could buy land and build a building cheaper and probably get a better location, that because the business had been in business for thirty years, was doing a respectable business and had a good name and Michelin products line which was the same as our product line, that it made sense to pay more money and buy that business rather than try to start our own business up from scratch. While there was no specific price attached to the sale of the trade name, the sales contract does provide that [s]eller hereby transfers and sells to the buyer all advertising leases and the trade name of Plains Tire and Battery exclusively for buyer's use... . After purchasing the business in 1977, Nicholls testified that he continued to use the name Plains Tire and Battery Company and that he significantly increased the amount of advertisement. He still advertised the business in the newspaper and on the radio, and he has spent an estimated $25,000 a year on advertisement. There is substantial evidence to support a finding that the trade-name Plains Tire and Battery Company acquired a secondary meaning in the trade area. Therefore we cannot support the trial court's judgment that necessarily implies that no secondary meaning attached to the name Plains Tire and Battery Company.