Arthur Murray, Inc. v. Horst
| Decision Date | 03 March 1953 |
| Docket Number | Civ. A. 52-195. |
| Citation | 110 F. Supp. 678 |
| Parties | ARTHUR MURRAY, Inc. v. HORST. |
| Court | U.S. District Court — District of Massachusetts |
Simons, Schur & Straus, New York City, N. Y. and Joseph B. Abrams, Boston, Mass., for plaintiff.
Stewart C. Woodworth, William A. Ryan, Lyne, Woodworth & Evarts, Edwin
A. Cheney, and Herman Snyder, Boston, Mass., for defendant.
The plaintiff in its amended complaint asks for a judgment declaring a 1946 license agreement, marked "C" in the complaint, between Arthur and Kathryn Murray, co-partners, and the defendant be declared null and void. The agreement was assigned to plaintiff corporation December 16, 1946. Plaintiff also prays for an injunction restraining defendant from using the trade-mark "Arthur Murray" in his dancing enterprises. The background leading up to the filing by defendant of his motion to dismiss is set forth in defendant's brief, pp. 2 and 3.
In the amended complaint the plaintiff contends that the amended agreement (Exhibit "C" of the complaint) of November 25, 1946 is invalid because of "absence aforesaid of the right of control, * * * as well as due to the absence aforesaid of the actual exercise of control by plaintiff and its predecessors, * * * thereby failing to comply with the requirements of `control' prescribed for the validity of a trade-mark license by the common law of trade-mark licensing, by the Massachusetts law of trade-mark licensing * * *."
The agreement provides in paragraph 23 that the contract involved (Ex. "C") shall be interpreted in accordance with Massachusetts law.
There is no dispute that a naked license without either transfer of good-will, the communication of a trade secret, or provisions for supervisory control of the product or services is invalid because of the public deception likely to follow.
For the purposes of the present motion to dismiss only plaintiff's contention of absence of "control" will be discussed. The question to answer in this connection is: Does the amended agreement (Ex. "C") contain provisions for supervision?
In paragraph 2 of the agreement the licensor agreed to furnish "such data and information which relates to the dancing business, including * * * the text and art work of all advertisements * * * methods of interviewing prospective pupils, methods of teaching dance steps and all sales procedures which Licensors * * * develop or use in connection with the operation of any dance school or dance advisory service * * *."
In paragraph 3 of the licensing agreement the licensee was to have exclusive use of the name "Arthur Murray" within the territorial limits of the contract.
In paragraph 5 the licensee agreed "to use all reasonable efforts to see that the methods of teaching and the steps taught are in accordance with the methods and steps promulgated by the Licensors"; also licensee agreed not to employ dancing instructors other than those who had attended a teachers' training class or course and to see to it that the instructors and supervisors employed would have an adequate knowledge of all the latest dancing steps and the "Arthur Murray Method" of teaching them. Licensee further agreed to maintain the highest possible standard of behavior among his employees.
The defendant, in paragraph 7 of the contract, agreed to honor in his studios unused dancing lessons from other "Arthur Murray" schools.
In the light of the provisions of the agreement as set forth, it appears, as defendant argues, that "precautions were taken to insure that the Arthur Murray name would continue to indicate to the public what it had in the past, namely, a type of instruction conforming to the standards and methods of Arthur Murray". It is plain we...
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Nestle Holdings, Inc. v. Commissioner
...through the license agreement, pays the licensor for all the goodwill associated with the trademark. See Arthur Murray, Inc. v. Horst, 110 F. Supp. 678, 679 (D. Mass. 1953) ("a naked license without *** transfer of good-will *** is invalid because of the public deception likely to Further, ......
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...on his licensee but, indeed, is obligated to do so in order to make the license a valid one. See, e. g., Arthur Murray, Inc. v. Horst, 110 F. Supp. 678 (D.Mass.1953) (license to use name "Arthur Murray" conditioned upon agreement to employ only dancing instructors trained in the "Arthur Mur......
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Susser v. Carvel Corporation
...I. Du Pont De Nemours & Co. v. Celanese Corp. of America, 167 F.2d 484, 35 C.C.P.A. 1061, 3 A.L.R.2d 1213 (1948); Arthur Murray, Inc. v. Horst, 110 F.Supp. 678 (D. Mass.1953); Morse-Starrett Prod. Co. v. Steccone, 86 F.Supp. 796 (N.D.Calif. 1949) — the justification for this control require......
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Mascaro v. Snelling & Snelling of Baltimore, Inc.
...101 N.E.2d 348 (1951). In a case involving a multiple-licensing arrangement similar to the one here involved, Arthur Murray, Inc. v. Horst, 110 F.Supp. 678, 679 (D.Mass.1953), the court 'In the light of the provisions of the agreement as set forth, it appears * * * that 'precautions were ta......