American Auto. Assn v. Spiegel‪.‬

The defendant appeals from a summary judgment enjoining his use of the plaintiffs trade-mark. The action was brought by the American Automobile Association and the Automobile Club of New York to protect the Associations trade-mark, "AAA" - enclosed in an oval - from infringement by the defendant, who operates a small automobile filling station in Brooklyn. The defendant, a citizen of New York, does not dispute that he displays the mark in public view at his station, or that he does so in order to protect his business from the competition of filling stations that the plaintiffs allow to display it. He asserts, however, that the plaintiffs are not entitled to enjoin him, because they themselves are using the mark: (1) in violation of Article 8, § B36-103 of the Administrative Code of the City of New York; and (2) as a means to effect an unlawful restraint of competition between filling stations. The facts, as disclosed by the pleadings and affidavits, are as follows. The Association is a Connecticut corporation, not organized for profit, but generally to promote favorable conditions for private motoring: among its activities are advocating legislation, road-making, making and distributing road maps and lists of accredited service and repair stations, and other conveniences for the motoring public. It has a membership of 2,700,000. The Club is a New York corporation - one of a number of subsidiaries, all subject to the control of the Association. It grants "affiliation" to filling stations like the defendants, when it is satisfied as to their dependability and general character; and it distributes gratuitously to them maps and a number of other articles that it buys from the Association, which the "affiliates" in turn distribute gratuitously to their customers. It gives leave to "affiliates" to display the trademark, but it periodically inspects them, investigates complaints against them, corrects their mistakes, and supplies their inadequacies. The Association has registered fifteen trade-marks that cover a great variety of articles, none of which, however, the defendant distributes except road maps, and possibly other prints or posters.