Opinion ID: 492734
Heading Depth: 4
Heading Rank: 2

Heading: Territorial Expansion

Text: 25 Fuddruckers' second concern with the secondary meaning instructions is that the court required that it show secondary meaning in Phoenix, prior to Doc's opening its restaurant. We agree with Fuddruckers that the instruction was unduly narrow. The source of the geographical and time limitations the court included in its instructions is a line of cases defining rights in unregistered trademarks between geographically remote users who adopted similar marks in good faith and without knowledge of each other's use. See United Drug Co. v. Rectanus Co., 248 U.S. 90, 98, 39 S.Ct. 48, 51, 63 L.Ed. 141 (1918); Hanover Star Milling Co. v. Metcalf, 240 U.S. 403, 416, 36 S.Ct. 357, 361, 60 L.Ed. 713 (1916); Weiner King, Inc. v. Weiner King Corp., 615 F.2d 512, 522 (C.C.P.A.1980); 2 J. McCarthy, supra, Sec. 26:1 at 286-87. The rule that developed in those cases permits junior users to continue to use a mark adopted in good faith in the geographical area of the junior user's actual use. The rule has only limited applicability to services such as hotels or restaurants, because their customers are ambulatory and on the move back and forth across the nation. 2 J. McCarthy, supra, Sec. 26:6 at 296; see Lincoln Restaurant Corp. v. Wolfies Rest. Inc., 291 F.2d 302 (2d Cir.), cert. denied, 368 U.S. 889, 82 S.Ct. 143, 7 L.Ed.2d 88 (1961); cf. Stork Restaurant, Inc. v. Sahati, 166 F.2d 348 (9th Cir.1948) (applying California law). 26 Doc's concedes that it was aware of Fuddruckers's operations, and familiar with its trade dress, so the good faith junior user line of cases does not apply here. Under these circumstances, we see no justification for requiring Fuddruckers to prove that secondary meaning developed in the Phoenix area before Doc's opened its restaurant. Fuddruckers is a national restaurant chain, and restaurant customers travel. Fuddruckers should be permitted to show that its trade dress had acquired secondary meaning among some substantial portion of consumers nationally. See Holiday Inns of America, Inc. v. Mullen's Holiday Inn, Inc., 292 F.Supp. 755 (E.D.Cal.1968).