Mr. Day to Mr. Buck.

No. 146.]

Sir: I inclose copy of a letter addressed to me by Mr. Francis Forbes, of New York, representing the New York Condensed Milk Company, which, it is alleged, has suffered for a number of years past through the persistent counterfeiting of its labels in Japan, and which has been unable to obtain a remedy through the registration of its legitimate trade-mark on the ground that it was already in use by others than the applicant.

Mr. Dun’s No. 478 of April 23, 1897, transmitted hither copies of the regulations respecting patents, trade-marks, and designs of Japan, as translated by the British legation in Tokyo. The provision on which the Japanese refusal to register the trade-mark of the New York Condensed Milk Company appears to rest would seem to be found in the second article of the trade-marks regulations, reading thus:

Art. ii. The following can not be registered as trade-marks: * * *

3. Such as are identical with or similar to trade-marks already registered or trademarks used by others before the application for registration was made, and which are intended to be applied to identical goods.

To construe this provision literally with respect to the application of the legitimate proprietors of a well-known trade-mark, designating an article in world-wide use for many years, in such manner as to favor those who have notoriously counterfeited that mark before the real owners made application to secure their rights, would hardly seem to accord with the purpose of the provision quoted. Its object would seem to be to assure to the bona fide possessors and users of a trade-mark already in use, although not registered in Japan, freedom to use the same against the attempt of any subsequent party to appropriate that mark, and so deprive the original owners of their equitable right thereto. Recognition of the moral right of the original inventor and user of the trademark is the essential thing aimed at, not deprivation of his moral rights through the virtual recognition of a subsequent counterfeit.

Even were the particular product now in question an article of Japanese manufacture, yielding a direct profit to the natives of the country, it is hardly to be conjectured that the Japanese Government would regard it as a moral obligation to protect the native spurious production at the expense of the genuine imported article. But when, as in the present instance, the counterfeit is of foreign origin, the cans being, it is alleged, of German make, and the contents the unsalable and inferior production of German and Swiss factories, not only does any consideration of pecuniary profit to Japanese industries become illusory and [Page 465] indefensible, but, on the other hand, considerations of public health may suggest the unwisdom of permitting a virtually privileged trade in an unwholesome food product under the color and reputation of an old and honorably established name.

The matter is commended to you for careful consideration and for conference with the proper Japanese authorities, with a view to ascertaining whether it may not be practicable to construe and apply this article in accordance with its obvious intent, and not, as would appear to be the case in the present instance, to the prejudice of the original and bona fide owners of a long-established trade-mark.

The Department will await your report on the subject with interest.

Respectfully, yours,

William R. Day.
[Inclosure in No. 146.]

Mr. Forbes to Mr. Day.

Dear Sir: The following facts seem to be sufficient to authorize me in bringing them to your attention:

The New York Condensed Milk Company, one of the oldest and largest of the manufacturers of condensed milk in the United States, shipped condensed milk to Japan for many years prior to any other manufacturer of condensed milk. Such exportations to Japan were made in almost the same form as at present.

For the past eight or nine years their labels have been persistently counterfeited, but until the treaty with the United States it was impossible to either register their marks or prosecute infringers.

After the treaty an attempt was made by the company to register their mark in Japan. The application was refused on the ground that the trade-mark was already in use by others than the applicants. The use by others was simply the use of lithographs of the Eagle Brand, and therefore an illegal use, and the use which it was desired to stop. The ruling is substantially that, if the marks of a citizen of the United States are counterfeited before registration, such fraudulent use is such a use under the Japanese law as to prevent registration.

Such a ruling places all foreign marks in the power of Japanese infringers.

The New York Condensed Milk Company do not understand that they have any further right of appeal from this decision; and they further feel themselves justified, because of the grave character of the position taken by the Japanese patent office, viz, in calling an infringing use of a trade-mark such as will prevent registration under the law, in making the request that you present this matter to the Japanese Government for a ruling thereon, which ruling will affect not only this particular case of the New York Condensed Milk Company, but also all other cases of applications by citizens of the United States.

The letter of an attorney employed in Japan to make the registration is inclosed. This letter was forwarded to me while at Brussels in December, 1897. I personally called the attention of the Japanese delegates who were attending the Convention for the Protection of Industrial Property to the matter. They gave me no hope that the registration would be allowed by the Japanese patent office.

[Page 466]

Prior to the conclusion of the trade-mark treaty with Japan your Department called the attention of the company to the Japanese infringement complained of. For your convenience I inclose a copy of the letter of Mr. W. W. Rockhill, Third Assistant Secretary, dated August 8, 1894, and a copy of the letter of Mr. N. W. McIvor, consul-general, Kanagawa, Japan, dated July 9, 1894, inclosed in the letter of Mr. Rockhill, and a copy of the reply of the New York Condensed Milk Company, dated August 13, 1894. A later letter has been received by the company from Edward Bedloe, United States consul at Canton, China, a copy of which is also inclosed.

Is it not proper for me to ask you to send such instructions to the representatives of the United States as shall cause the Japanese patent office to make the desired registration, and also shall bring about the protection of the mark in China, where there is as yet no trade-mark law?

A copy of the genuine label is inclosed.

Yours, respectfully,

Francis Forbes.
[Subinclosure No. 1.]

New York Condensed Milk Company,
71 Hudson Street, New York.

Gentlemen: I inclose herewith for your information a copy of a dispatch from the consul-general of the United States at Kanagawa reporting the manufacture and sale in Japan of an imitation of the “Gail Borden Brand” of condensed milk prepared by your company.

He incloses a sample of the label used and two cans with their labels. These inclosures are transmitted to you herewith, the cans being sent under separate cover.

I am, etc.,

W. W. Rockhill,
Third Assistant Secretary.
[Subinclosure No. 2.]

Mr. McIvor to Mr. Uhl.

No. 41.]

Sir: I have honor to report to the Department the manufacture and sale in Japan of what seems to be an imitation of the “Gail Borden Eagle Brand” condensed milk, prepared by the New York Condensed Milk Company, 71 Hudson street, New York.

In conversation with two or three gentlemen the matter was referred to and I secured a can, supposed to be spurious, which I inclose herewith, marked “Inclosure l.’ I then secured a can, which I am assured was purchased direct and is genuine, marked “Inclosure 2.” I submitted the labels to a practical printer, who reports to me that the label on inclosure 2 is printed, while that on inclosure 1 is lithographed or engraved. I have also secured from Tokyo a third label, marked “Inclosure 3” which seems to be an engraved imitation. I have not had an analysis made of the contents of the spurious can.

Owing to the scarcity of natural milk in Japan the trade in canned or condensed milk is quite heavy, and the Eagle Brand has probably the best reputation, which fact has caused this brand to be imitated more than any other.

I am informed by a former agent of Messrs S. A. Barnes & Co., publishers, of New York, that while foreign copyrights and patents are not protected under the laws of Japan, a general order has been made that in the case of an imitation the brand may be used, but the name can not be reproduced, in support of which statement an original communication from the Japanese home office is presented, a copy of which I inclose, marked “Inclosure 4.”

Basing my judgment on the communication of the State Department to Messrs. S. A. Barnes & Co., in October, 1888, and on various letters submitted, I concluded that the order prohibiting the use of the name was not an order of general application, but was made in the particular case on the ground that the reprint of Messrs. [Page 467] Barnes & Co’s. books were issued from a Government printing office, and had no application beyond the correction of the infringement complained of; but Mr. F. Schroeder, the agent above referred to, informs me that the order has been given general application.

I make this report because I understand that the New York Condensed Milk Company has no agent here to represent it, and thinking that the Department, if it has been decided that it has the right to call the attention of the Japanese Government to the use of the name of one of our manufacturers, might wish to inform the New York Condensed Milk Company of the fraudulent use of its name, that the company may cause such an investigation to be made by its agents as will point out the offenders.

I have, etc.,

N. W. McIvor, Consul-General.
[Subinclosure No. 3.]

Hon. W. W. Rockhill,
Third Assistant Secretary of State, Washington, D. C.

Dear Sir: We are in receipt of your favor of the 8th instant, with documents inclosed as stated, and the package referred to is also at hand. Permit us to thank you and the Department for so kindly supplying us with the information above acknowledged. Regarding the in closures, would state that the inferences drawn by the honorable consul-general at Kanagawa are correct.

  • Inclosure No. 1 is a very clever lithographic reprint of our regular label registered in the United States Patent Office, and that not only that, but the can itself is a very careful reproduction of our can, and we believe emanates from Germany or England. The contents of the can, however, consist of a very poor and dangerous quality of condensed milk, being rancid and unfit for use and apparently made from skimmed milk.
  • Inclosure No. 2 represents original and genuine can and label, containing the usual quality of condensed milk put up by us, same being in a perfect state of preservation.
  • Inclosure No. 3 represents an entirely different counterfeit label than the one indicated as No. 1, and we think is the work of natives, and is evidently printed from type.

Bearing on this subject, we would state that we have experienced a great deal of trouble from the counterfeiting of our labels both in China and Japan, but since the proclamation issued by the magistrates of Canton in 1888, through the efforts of the Hon. Charles A. Seymour, we have been less troubled in the former country. On the other hand, greater activity Seems to be now displayed in Japan, and while we think it might prove somewhat advantageous to take steps there toward inducing the Government to prohibit the reproduction of the names on our labels it would not eradicate the practice of putting up dangerous and inferior goods. This question of quality is one that vitally affects the people of Japan. Thousands of infants in that country are annually raised on our product, and even the imperial household, we are reliably informed by a native merchant of Yokohama, is dependent upon this substitute for mother’s milk. If the proper authorities of Japan could be convinced that the lives of their people were menaced by a toleration of spurious imitations of our goods, they might see tit to take up the matter upon a different standpoint than one of mere commercial justice.

We hand you herewith a translation of proclamation referred to in the early part of this letter as issued in Canton. We might add, however, with reference to this latter city, that since the new magistrates have been in power we have not been successful in obtaining a further publication of this proclamation. Considering the foregoing, we think that the matter of our protection with the people of Japan rests upon a somewhat different footing than it would if the subject involved an article that did not vitally concern the health and happiness of the people themselves. We take pleasure in inclosing you a duplicate copy of this letter and also of the proclamation, thinking that possibly you might prefer to take this matter up direct with the consul-general at Kanagawa. If, however, such is not the case, we shall be glad to do so ourselves if you will kindly advise us of your preference.

In closing this letter allow us again to thank you, and the consul-general also, for so kindly advising us on this matter.

Very truly, yours,

New York Condensed Milk Company.

In all cases presented for an examination we have found that the goods labeled with the counterfeits are always the unsalable product of unknown European manufacturers and the contents of cans of doubtful constituents, rancid, and dangerous to use.

[Page 468]
[Subinclosure No. 4.]

The New York Condensed Milk Company,
71 Murray street. New York, N. Y., U. S. A.

Gentlemen: This district is cursed with thousands of cans of condensed milk made in Germany and Japan, purporting to be genuine “Gail Borden, Eagle Brand.”

I have obtained by personal purchase from dealers several cans of this spurious milk and shall send samples of it on to you by the next steamer, Rio, leaving Hong-kong March 23, instant.

I have also counterfeit labels, a specimen of one of which I inclose herewith.

I have, etc.,

Edward Bedloe,
United States Consul.
[Subinclosure No. 5.]

Messrs. J. Curnow & Co.,
Yokohama, Japan.

Gentlemen: The trade-mark on the design of an eagle spreading its wings, catching a twig under its feet, and keeping in its bill the three ribbons on which the words “Eagle Brand” and “Gail Borden” are written, was sent on application for registration of Japanese Government through my hand on the 29th April of this year, the number of application being 12092, and this application was first rejected for grant on June 25 by the examiner at the patent bureau with the following explanation: Such trade-mark as the specification and sample of the ticket of this application affirm and has been long since commonly used as a trade-mark not registered for condensed milk by the merchants in this country. Although in the letters of the words on ribbons or in some other minute point a few differences may be detected, the essential point and the common name of the chop must be necessarily the same; that is to say, “the eagle ticket” would be right and common calling of either. Such being the fact according to the No. 3, article second of Imperial Japanese trademark regulations, this application is to be refused to register. Now, the No. 3, article second of the trade-mark regulations, is this article.

II. The following can not be registered as trade-mark:

1.
* * *.
2.
* * *.
3.
Such as are identical with or similar to trade-mark already registered as such have been used by others before the application was made, and which are intended to be applied to similar goods. After this I tried three times to deny the evidence that the eagle is in common use in Japan as the trade-mark of condensed milk, but these efforts proved in vain because the examiner at the patent office afforded as many evidences which cost prima fair, and the case settled unsuccessfully on the 23d of September. (Translated and copied from office note.)

I remain, yours, faithfully,

S. Nukiyama.
[Subinclosure No. 6.]

New York Condensed Milk Company,
New York.

Dear Sirs: In answer to yours of October 4, we now have to regret to inform you that your trade-mark can not be registered in Japan, although we think an appeal should be made against such a foolish decision. In a long interview the writer (our Mr. Maurice Russell) had with Mr. Nukiyama, he said nothing could be done, it being proved that for many years a brand of milk known as the Eagle was manufactured and sold in Japan, and that applications had been made to register the (false) label, but all applications like the one shown for years had been refused. You will see that we have lost no time in either applying or definitely forwarding you the reply, and can only again offer our services on your behalf.

Yours,

J. Curnow & Co.,
Yokohama.