In re Jaysee Corset Co.

• Decision Date: 09 November 1911
• Citation: 201 F. 779
• Parties: In re JAYSEE CORSET CO.
• Court: U.S. District Court — Southern District of New York

201 F. 779

In re JAYSEE CORSET CO.

United States District Court, S.D. New York.

November 9, 1911

J. J Lesser, of New York City, for the motion.

C. L Greenhall, of New York City, opposed.

HOUGH District Judge.

One Joseph Cohen was in business before the bankrupt corporation was organized. He owned a registered trade-mark, which he placed upon goods apparently manufactured and sold by himself. He turned over his business to the bankrupt corporation, which apparently took his assets and assumed his liabilities. He became the president of the corporation, but he did not formally assign to the corporation the registered trade-mark aforesaid.

The corporation so formed became bankrupt, and a trustee was duly appointed. Such trustee did not obtain possession of the certificate of registration of trade-mark. Shortly before the bankruptcy of the corporation, Cohen transferred to a third person the trade-mark, consisting of the letters 'J.C.,' and 'the good will of the business in which the trade-mark is used. ' That third person in turn conveyed the trade-mark and good will to a new corporation (in which Cohen was interested), which now desires to prevent the trustee from making the sale above referred to.

The trade-mark in question, although standing in Cohen's name, was evidently used, and used only, in the business of the bankrupt corporation. Cohen had no business of his own in which the trade-mark was used.

It may be true (as the trustee contends) that the transfer of Cohen's business to the bankrupt corporation, and the use by that corporation of the trade-mark (obviously with Cohen's consent), worked by operation of law a transfer of the trade-mark itself. However this may be, it is more obviously true that Cohen's conveyance of the trade-mark unaccompanied by any business whatever, gave no title to his assignee, and therefore none in any subsequent grantee. It is to me clear (on the papers submitted) that whatever rights the present petitioner may have in the trade-mark 'J.C.' do not in any way depend upon Cohen's assignment, but only upon the continued use thereof in the petitioner's business. Petitioner may well have established by this time a (so-called) common-law trade-mark, but that is all.

The assignment by Cohen of the paper trade-mark was made in May 1910. In due course of time the trustee sold the goods and chattels of the bankrupt, but made no attempt to sell the good will of...