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William R. Warner & Co. v. Eli Lilly & Co.
United States Supreme Court
265 U.S. 526 (1924)
In 1899, Eli Lilly & Company (Eli Lilly) (plaintiff) began selling a combination of chocolate and quinine under the Coco-Quinine mark. After a few years, several other companies began selling a similar product, and William R. Warner & Company (Warner) (defendant) developed and began selling a nearly identical product under the Quin-Coco mark. At some point, Warner’s employees began inducing third-party retailers to replace orders of Coco-Quinine with Quin-Coco by using the incentive of lower cost. Eli Lilly brought a suit against Warner for trademark infringement and unfair competition. The district court refused to grant an injunction enjoining Warner from using the Quin-Coco mark or from selling quinine formula with chocolate or chocolate coloring. The court of appeals affirmed the decision on trademark infringement but found Warner guilty of unfair competition. Warner appealed the judgment of the court of appeals.
Rule of Law
Holding and Reasoning (Sutherland, J.)
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