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Mobil Oil Corp. v. Pegasus Petroleum Corp.
United States Court of Appeals for the Second Circuit
818 F.2d 254 (1987)
Mobil Oil Corporation (plaintiff) was one of the largest companies in the world. Mobil sold petroleum products to industry and to the public. Mobil had a registered trademark for its well-known flying-horse logo. The logo represented Pegasus, a mythological winged horse. Oil trading was one part of Mobil’s business, but Mobil did not use the flying-horse logo in connection with its oil trading. Generally, oil trading was conducted first with a cold call, and success was based heavily on the seller’s reputation in the market. Those in the oil-trading business were sophisticated purchasers. In 1981, Pegasus Petroleum Corporation (defendant) started an oil-trading business. Pegasus used a logo with interlocking Ps. Pegasus did not sell any products directly to the public. Mobil sued Pegasus for trademark infringement. The parties each submitted consumer surveys on the issue of actual confusion. The district court ruled in favor of Mobil. Pegasus appealed.
Rule of Law
Holding and Reasoning (Lumbard, J.)
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