NAACP v. NAACP Legal Defense Fund Petition for a Writ of Certiorari to the US Court of Appeals for the District of Columbia Circuit
Public Court Documents
January 1, 1984

Cite this item
-
Brief Collection, LDF Court Filings. NAACP v. NAACP Legal Defense Fund Petition for a Writ of Certiorari to the US Court of Appeals for the District of Columbia Circuit, 1984. a1bbbe0f-bf9a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/4ece11d9-daac-4a9c-b0d6-56b427e17b87/naacp-v-naacp-legal-defense-fund-petition-for-a-writ-of-certiorari-to-the-us-court-of-appeals-for-the-district-of-columbia-circuit. Accessed September 05, 2025.
Copied!
* N o .-------- ■ i IN THE (Hanrt nf % &tatea O c t o b e r T e r m , 1984 N a t io n a l A s s o c ia t io n f o r t h e A d v a n c e m e n t o f C o lo r ed P e o p l e , Petitioner, v. N.A.A.C.P. L e g a l D e f e n s e & E d u c a t io n a l F u n d , I n c ., Respondent. PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT E d w a r d W . B r o o k e Counsel of Record B a r r y J. C u t l e r O ’ C o n n o r & H a n n a n 1919 Pennsylvania Ave., N. W. Suite 800 Washington, D.C. 20006 (202) 887-1400 Counsel for Petitioner PRESS OF BYRO N S. ADAMS, WASHINGTON, D.C. (202) 347-8203 1 QUESTIONS PRESENTED 1. Whether the decision of this Court in French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427 (1903), denying injunctive relief in a trademark in fringement case between unrelated parties, applies to a trademark owner who seeks injunctive relief after revoking the permission it previously gave to an affili ated organization to use its service mark. 2. Whether the rule established by this Court in Menendez v. Holt, 128 U.S. 514 (1888), and McLean v. Fleming, 96 U.S. 245 (1878), that a laches defense in a trademark infringement suit does not bar prospec tive injunctive relief, is applicable to the case of a national organization that withdraws the permission it had given to an affiliated organization to use its nationally-recognized service mark. PARTIES TO THE PROCEEDING The Petitioner in this action is the National Asso ciation for the Advancement of Colored People. Peti tioner requests a writ of certiorari to the United States Court of Appeals for the District of Columbia Circuit to review the judgment entered in favor o f the Re spondent, N.A.A.C.P. Legal Defense and Educational Fund. Inc. TABLE OF COINTENTS Page Questions Presented .............................................................. i Parties to the Proceeding.................................................. i T able of A uthorities.............................................................. iii Opinions Below ......................................................................... 2 Jurisdiction................................................................................. 2 Statutory Provision Involved ............................................ 2 Statement of the Ca s e ......................................................... 3 Reasons for Granting the W r i t ................................. 9 I. By Finding That The NAACP Had Not Granted A Revocable License When It Gave Permission To The LDF To Use Its Mark, The Court Below Con tradicted Established Law And Created Great Un certainty About The Trademark Rights Of Related Parties ..................................................................... 9 II. In Upholding A Defense Of Laches To Bar Pro spective Injunctive Relief, The Court Below Mis applied Decisions Of This Court That Govern The Trademark Rights Of The NAACP And The LDF. 12 Conclusion .................................................................................... 17 A ppendix A. Court of Appeals Opinion, January 25, 1985 ---- la B. District Court Decision and Order, March 28, 1983 ...................................................................... 23a C. District Court Order, June 6, 1983 ...................... 39a D. District Court Judgment, June 6, 1983 ............... 40a E. Court of Appeals Judgment, January 25, 1985 .. 42a F. Relevant Statutory Provisions........................... 44a ii 1U TABLE OF AUTHORITIES Cases: Page Ancient Egyptian Arabic Order of Nobles of the Mystic Shrine v. Michaux, 279 U.S. 737 (1929)................. 13 Anheuser-Busch v. DuBois Brewing Company, 175 F.2d 370 (3d Cir. 1949), cert, denied, 339 U.S. 934 (1950) 14 Brown v. Bd. of Education, 347 U.S. 483 (1954)........ 5 Coca-Cola Bottling Co. v. Coca-Cola Co., 269 F. 796 (D. Del. 1920) ....................................................... 10,12 Council of Better Business Bureaus, Inc. v. Better Busi ness Bureau of South Florida, 200 U.S.P.Q. 282 (S.D. Fla. 1978) ....................................................... U Creswill v. Grand Lodge Knights of Pythias of Georgia, 225 U.S. 246 (1912) ................................................. 13 Dwinell-Wright Co. v. White House Milk Co., 132 F.2d 822 (2d Cir. 1943) ................................................... 14 Edwin K. Williams & Co., Inc. v. Edwin K. Williams <& Co.—East, 542 F.2d 1053 (9th Cir. 1976), cert, denied, 433 U.S. 908 (1977) ..................................... 12 French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427 (1903) ......................................................... 13 Grand Lodge Improved, Benevolent, Protective Order of Elks of the World v. Eureka Lodge No. 5, Indep. Elks, 114 F.2d 46 (4th Cir.), cert, denied, 311 U.S. 709 (1940) ................................................................. 11 Grotrian, Helffericli, Schulz, Th. Steinweg Nachf. v. Steinway & Sons, 523 F.2d 1331 (2d Cir. 1975) .. 14 Hanover Star Milling Co. v. Metcalf, 240 U.S. 403 (1916) ........................................................................ I4 Indep. Nail <& Packing Co., Inc. v. Stronghold Screw Products, Inc., 205 F.2d 921 (7th Cir.), cert, de nied, 346 U.S. 886 (1953) ........................................ 14 IV T able of A uthorities continued Page Int’l Union, U.M.W. v. District 50, U.M.W., 298 F. Supp. 1262 (D.D.C. 1969), vacated in part as moot, 435 F.2d 421 (D.C. Cir. 1970), cert, denied, 402 U.S. 906 (1971) .................................................. 10,15 McLean v. Fleming, 96 U.S. 245 (1878) .................... 13 Menendez v. Holt, 128 U.S. 514 (1888) ...................passim Nat’l Bd. of YWCA v. YWCA of Charleston, 335 F. Supp. 615 (D.S.C. 1971) ...................................... 11 Nat’l Circle, Daughters of Isabella v. Nat’l Order of Daughters of Isabella, 270 F. 723 (2d Cir.), cert, denied, 255 U.S. 571 (1920) .................................. 14 Professional Golfers Ass’n v. Bankers Life <& Casualty Co., 514 F.2d 665 (5th Cir. 1975) ......................... 10 Purcell v. Summers, 145 F.2d 979 (4th Cir. 1944) . . . 11,16. Saratoga Vichy Spring Co., Inc. v. Lehman, 625 F.2d 1037 (2d Cir. 1980) ......................................... 14,15,16 Talbot v. Indep. Order of Owls, 220 F. 660 (8th Cir. 1915) ................................................................... 11,16 Tisch Hotels, Inc. v. Americana Inc., 350 F.2d 609 (7th Cir. 1965) ....................... 14 Tisch Hotels, Inc. v. Atlanta Americana Motor Hotel Corp., 254 F. Supp. 743 (N.D. Ga. 1966)........... 10,15 United States Jaycees v. Philadelphia Jaycees, 639 F.2d 134 (3d Cir. 1981)........................................passim United States Jaycees v. San Francisco Jr. Chamber of Commerce, 354 F. Supp. 61 (N.D. Cal. 1972), aff’d, 513 F.2d 1226 (9th Cir. 1975) ............. 11,15,16 Statutes: 15 U.S.C. § 1114 .. 15 U.S.C. § 1121 .. 28 U.S.C. § 1254(1) 28 U.S.C. § 1338 .. 2 8 2 8 IN THE ( t o r t o f tlj? lUntteJi S t a t e s O c to ber T e r m , 1 9 8 4 No. -------- N a t io n a l A s s o c ia t io n fo r t h e A d v a n c e m e n t o f C olored P e o p l e , Petitioner, v. N.A.A.C.P. L e g a l D e f e n s e & E d u c a t io n a l F u n d , I n c ., Respondent. PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT Petitioner National Association for the Advance ment of Colored People respectfully prays that a writ of certiorari be issued to review the judgment of the United States Court of Appeals for the District of Columbia Circuit entered in favor of the Respondent, N.A.A.C.P. Legal Defense and Educational Fund, Inc., on January 25, 1985. 2 OPINIONS BELOW The January 25, 1985 Opinion of United States Court of Appeals for the District of Columbia Circuit (the “ court below” ) is reported at 753 F.2d 131 (D.C. Cir. 1985) and is reproduced in the Appendix hereto, la. The March 28, 1983 Decision and Order of the United States District Court for the District of Co lumbia (the “ district court” ), granting Petitioner’s motion for summary judgment, is reported at 559 F. Supp. 1337 (D.D.C. 1983) and is reproduced in the Appendix hereto, 23a. The unreported June 6, 1983 Order of the district court, denying Respondent’s mo tion for reconsideration, is reproduced in the Appen dix hereto, 39a. The unreported June 6, 1983 Judg ment of the district court, which included the terms of a permanent injunction, is reproduced in the Ap pendix hereto, 40a. JURISDICTION The judgment of the court below was entered on January 25, 1985. Appendix, 42a. This petition for writ of certiorari was filed April 25, 1985. The juris diction of this Court is invoked under 28 U.S.C. § 1254(1). STATUTORY PROVISION INVOLVED The substantive provision on which Petitioner’s claim is based is the Lanliam Trademark Act, 15 U.S.C. § 1114, and is reproduced in the Appendix hereto, 44a. Because this case involves application of the common law defense of laches to a trademark claim, neither the decision below nor this petition raise questions of construing that provision of the Lanham Trademark Act. 3 STATEMENT OF THE CASE This case involves the respective rights of two in dependent, but formerly affiliated, civil rights organi zations to the mark “ NAACP,” which both groups have used over the years to identify themselves. The decision of the court below, which overturned a broad permanent injunction that the district court entered to protect the public from confusion that it found likely to continue, conflicts with traditional trademark rules, places a cloud over the right of trademark owners to permit the use of their marks by others, and results in the type of public confusion that the trademark laws were designed to avoid. The decision below appears to be the first and only case to conclude that the permission requested of and given by a trademark owner to an affiliate to use its established service mark does not create a revocable license, and to hold that a laches defense precludes the trademark owner from withdrawing the permission after the owner’s relationship with the affiliate changes.1 The National Association for the Advancement of Colored People ( “ N AACP” or the “ Association” ) was founded as a membership organization in 1909. According to its certificate of incorporation, its pur poses were: to promote equality of rights and eradicate caste or race prejudice among the citizens of the United States; to advance the interests of colored citi- 1 There is no dispute that the Association was the first person or organization to use the “ N A A C P ” letters as a mark and that the Association has used the initials continuously from at least 1910 to the present. The mark is registered in the name of the Association in the U.S. Patent and Trademark office. 4 zens; to secure for them impartial suffrage; and to increase their opportunities for securing justice in the courts, education for their children, employ ment according to their ability, and complete equality before the law. During the N A A C P’s first 25 years, the Association sought to achieve these goals through educational work, legislative advocacy, and, to a lesser degree, litigation. During the 1930s, as the NAACP increas ingly used litigation as a means of effecting change, the NAACP was hindered in its fundraising efforts, largely because the Bureau of Internal Revenue (now the IR S ) had ruled that the contributions so badly needed for the N AACP’s litigation efforts were not deductible for federal income tax purposes because of the Association’s lobbying activities. At the Bu reau’s suggestion, the NAACP took steps to form a new affiliate, technically separate from its lobbying effort, that could accept tax deductible contributions and handle the Association’s litigation caseload. For three years, the directors and staff of the NAACP planned for the formation of its affiliate, to be known as the “ N.A.A.C.P. Legal Defense and Edu cational Fund, Inc.” (the “ L D F ” ). To satisfy a New York State prerequisite for incorporating the new entity, the NAACP Board of Directors (the “ Board” ) on October 9, 1939 passed the following resolution to indicate that the use o f the N A A C P’s mark by the LDF was authorized: W h e r e a s , [the proposed directors of the LDF] have requested permission of the [N AACP] to use the initials, “ N.A.A.C.P.” , in an application for a Certificate of Incorporation of the “ N.A.A.C.P. 5 Legal Defense and Educational Fund, Inc.” ; therefore B e I t R e so l ved , That the Board of Directors of the National Association for the Advancement of Colored People grant permission for the use of the initials, “ N.A.A.C.P.” by the “ NAACP Legal Defense and Educational Fund, Inc.” , and au thorize the President and Secretary to execute whatever papers might be necessary to carry out this resolution, (emphasis supplied).2 The incorporation process was completed during 1940, and for many years thereafter, the LDF was held out as and, in fact, functioned as, an integral part of the Association, with common directors, officers, staff, and headquarters. Contributions were allocated either to the Association or to the LDF depending upon the use to be made of them, and contributors were notified accordingly. After the landmark decision of this Court in Brown v. Board of Education, 347 U.S. 483 (1954), the NAACP faced intense political pressure from certain state officials, and was warned that the IRS might try once again to limit the N AACP’s litigation efforts by withdrawing the L D F ’s tax-exempt status. In 1957, the NAACP and the LDF rejected the IR S ’ demand that the LDF stop using the N AACP’s initials in its name. However, the two groups did agree to eliminate overlapping membership on their respective boards of 2 There were no discussions or documentation about the intended scope of the “ permission” requested and granted in the resolution. Both the court below and the district court inferred the meaning and legal effect of the term “ permission” (although quite differ ently) from the undisputed facts surrounding the formation of the LDP. 6 directors, allowing a director to serve on only one of the two boards, but not both. Even following that organizational change, the LDF continued to function as the Association’s legal department. After 1957, the NAACP and the LDF experienced some tension and disagreement about policy issues, and other matters such as the allocation o f contribu tions. Starting in 1961, the two organizations estab lished liaison committees for the purpose of maintain ing a continuing dialogue and negotiating differences. The respective liaison committees presented a joint- memorandum of understanding and cooperation to the two boards. After new disagreements arose, the NAACP Board in July 1965 resolved to meet with the LDF once again, this time to discuss whether the LDF would either merge ̂with the NAACP or reincorporate under a new name.3 After some preliminary communications, liaison committees met again, at least through 1966, to discuss relations between the groups, including use of the initials. Again, however, they reached no final accord on the question. 3 At its July 1965 meeting, the NAACP Board passed a resolu tion that included language that the NAACP should go to court to enforce its rights, if necessary. The Board voted to "strike that portion of the resolution at its next meeting because key memhers felt that it was “ impolitic” to have such language on record, even in the Board’s internal minutes. Contrary to the opinion of the court below, which purported to rely on some unspecified part of the L D P ’s oral argument rather than upon any evidence in the record, Appendix 9a, the NAACP did not threaten the LDP with any lawsuit in 1965, or at any other time prior to 1979. In dealing with the unpermitted use of its initials by an unrelated party, the NAACP acted swiftly to obtain injunctive relief. Appendix, 29a n. 1. 7 In the following years, the NAACP and the LDF continued to maintain close cooperation and contact on a broad variety of matters, including the L D F ’s handling of litigation for the hfAACP. However, there is no evidence that the groups specifically dis cussed the initials again until 1978. The district court found both that the LDF never agreed to change its name and that the NAACP never said or did any thing to mislead the LDF about the N AACP’s un willingness to let the matter of the initials remain unresolved forever. Appendix, 34a. In December 1978, the NAACP wrote to the LDF to express concern about growing public confusion over the L D F ’s use of the initials and to renew dis cussions regarding the L D F ’s either reuniting with the NAACP or changing its name. Although the LDF immediately responded with a willingness to meet (without indicating in any way that the LDF re garded the question to have been settled at any prior time), liaison committees of the two organizations were unable to resolve their differing positions through early 1979. At the N AACP’s annual conven tion in June 1979, the NAACP Board of Directors voted to rescind the 1939 resolution that had granted permission to the LDF to use the initials and so in formed the LDF. That was the first and only time that the NAACP revoked the permission it had given to the LDF in 1939. Representatives of both organizations continued to discuss the initials until early 1982. When no com promise appeared likely, however, the NAACP reluct antly initiated this action on May 25, 1982. The N AACP’s complaint alleged trademark infringement 8 and unfair competition under the Lanham Trademark Act, with jurisdiction arising under 28 U.S.C. § 1338 and 15 U.S.C. § 1121. The complaint sought only permanent injunctive relief; it contained no request for money damages. Shortly after the LDF filed its answer, the LDF moved for summary judgment on the ground that the requested injunctive relief was barred by a cluster of equitable defenses, including laches. The NAACP opposed the L D F ’s motion and filed its own motion for summary judgment. After reviewing exhaustive documentary evidence and hearing oral argument on the cross-motions, the district court, on March 28, 1983, held that (1) there was no dispute as to the material facts; (2) by its 1939 resolution, the NAACP had intended to give the LDF only a revocable license, rather than an irrevocable assignment; (3) the equi table defenses of laches and acquiescence did not bar the N AACP’s request for prospective injunctive re lief ; (4) the NAACP had established a likelihood that past confusion would continue in the future; and (5) a balancing of the equities clearly favored the NAACP. Accordingly, the district court granted the N A A C P’s motion for summary judgment and denied the L D F ’s motion for summary judgment. On .Tune 6, 1983, the district court denied the L D F ’s motion for reconsideration and issued an injunction barring the LDF from using the “ N AACP” mark in its name or promotional literature. However, the Judgment granted the LDF a two-year transition period during which it could adopt and publicize a new name and logo. Appendix, 39a-41a. 9 On January 25, 1985, the court below reversed the judgment of the district court and remanded with directions that the suit be dismissed. Appendix, la. Contrary to the district court’s findings, the court below concluded that the N AACP’s original grant of permission to the LDF in 1939 did not constitute a revocable license. The court below reasoned that the NAACP had not used the term “ revocable license” and had not received any consideration for a license. Appendix, 21a. The court below also held that the N AACP’s 1979 resolution revoking the permission of the LDF to use the “ N AACP” mark could not be enforced because the NAACP was guilty of laches for failing to assert its exclusive right to the initials be tween 1966 and 1978. Appendix, 16a-19a. This petition timely followed. REASONS FOR GRANTING THE WRIT I. By Finding That The NAACP Had Not Granted A Revoc able License When It Gave Permission To The LDF To Use Its Mark, The Court Below Contradicted Established Law And Created Great Uncertainty About The Trademark Rights Of Related Parties Until this case, virtually every court decision that weighed the trademark rights of related organizations had characterized the grant of permission by a trade mark owner to use its mark as a license. The decision of the court below is erroneous and needs to be cor rected to avoid serious uncertainty in the important area of trademark licensing. Many licenses, of course, are spelled out in formal agreements. But even when no written instrument 10 states the rights of the parties or specifically defines the terms of the permission granted, courts imply “ some type o f license” from the relationship itself. United States Jaycees v. Philadelphia Jaycees, 639 F.2d 134, 139-140 n. 7 (3d Cir. 1981) ; In t’l Union, U.M.W. v. District 50, U.M.W., 298 F. Supp. 1262 (D.D.C. 1969), vacated in part as moot, 435 F.2d 421 (D.C. Cir. 1970), cert, denied, 402 U.S. 906 (1971). The decisions are not limited to charitable or non profit organizations. In a commercial setting, as well, a revocable license routinely is inferred from a course of dealing, even if the parties did not use the term “ license” in their writings. See Professional Golfers Ass’n v. Bankers Life & Casualty Co., 514 F.2d 665, 669 (5th Cir. 1975); Tisch Hotels, Inc. v. Atlanta Americana Motor Hotel Corp., 254 F. Supp. 743, 750 (N.D. Ga. 1966). The policy underlying these decisions is to preserve the important right of a trademark owner to be able to give permission to use its mark without surrender ing the right to reclaim exclusive control over its mark at a later date. A trademark owner is free to negotiate an irrevocable assignment, see Coca-Cola Bottling Co. v. Coca-Cola Co., 269 F. 796 (D. Del. 1920), but until this case, courts have not inferred an irrevocable grant of authority except where there is clear evidence of the owner’s intent to make an assignment. Concomitantly, a party that uses a valuable mark with the owner’s permission cannot later claim to have established secondary meaning or other rights in the 11 mark during the period of the permission.4 It would “ destroy the entire concept of a license” if the licensee could claim that goodwill or other benefits gained through permitted use somehow bars the trademark owner’s later termination of the license or revocation of the permission. Philadelphia Jaycees, 639 F.2d at 142-43. On undisputed facts, the district court looked at the circumstances of the relationship between the NAACP and the LDF circa 1939, the language used by the parties, and the purpose of the NAACP in granting the permission and held that the 1939 resolution was intended to be a revocable license to use the initials; not an irrevocable assignment of them. Appendix, 32a-34a. By contrast, the court below ignored the dis trict court’s findings and the unbroken line o f cases that have found implied licenses. Based in large part upon the failure of the NAACP to make a contract explicitly indicating revocability, the court below found that even the 1939 license conveyed a permanent right to the LDF. Appendix, 21a.5 * See Philadelphia Jaycees, 639 F.2d 134; United States Jaycees v. San Francisco Jr. Chamber of Commerce, 513 F.2d 1226 (9th Cir. 1975); Purcell v. Summers, 145 F.2d 979 (4th Cir. 1944); Grand Lodge Improved, Benevolent and Protective Order of Elks of the World v. Eureka Lodge No. 5, Indep. Elks, 114 F.2d 46 (4th Cir.), cert, denied, 311 U.S. 709 (1940); Talbot v. Indep. Order of Owls, 220 F. 660 (8th Cir. 1915) ; Council of Better Business Bureaus, Inc. v. Better Business Bureau of So. Florida, 200 U.S.P.Q. 282 (S.D. Fla. 1978) ; Nat’l Bd. of Y W C A v. Y W C A of Charleston, 335 F. Supp. 615 (D.S.C. 1971). 5 If the court below was correct in its characterization of the permission originally granted in 1939, the doctrine of laches would not come into play in this case, because the irrevocable assignment [footnote continues on next page] 12 The decision of the court below is in conflict with virtually every reported decision about the nature of the right of an entity that uses a trademark with the owner’s permission. The decision creates great uncer tainty regarding the ability of a trademark owner to permit use of, and still maintain exclusive control of, his mark. As Petitioner now shows, the decision raises serious questions about the applicability of the com mon law defense of laches in cases between related parties. Because of those results, it is important that this Court review and reverse the decision of the court below. II. In Upholding A Defense Of Laches To Bar Prospective Injunctive Relief, The Court Below Misapplied Decisions Of This Court That Govern The Trademark Rights Of The NAACP And The LDF For almost a century, the lower federal courts have followed two decisions of this Court that have estab lished the general rule that a laches defense to a trade mark infringement claim will not bar prospective injunctive relief, even if it will bar a claim for money damages. Menendez v. Holt, 128 U.S. 514 (1888); would have precluded the N A A C P ’s moving to reclaim exclusive right in the mark at any time after 1939, whether there was a delay or not. See Coca-Cola Bottling Co., 269 F. 796. Moreover, there would have been no reason for the NAACP to participate in the 1957 decision regarding the IRS, or to appoint at least three committees to negotiate with the LDF between 1961 and 1979. Courts regard such continuing negotiations as strong evidence of a license rather than ari assignment. See Edwin K. Williams & Co., Inc. v. Edwin K. Williams & Co.— East, 542 F.2d 1053, 1059 (9th Cir. 1976), cert, denied, 433 U.S. 908 (1977). 13 McLean v. Fleming, 96 U.S. 245 (1878). As this Court held in Menendez: Where consent by the owner to the use of his trademark by another is to be inferred from his knowledge and silence merely, “ it lasts no longer than the silence from which it springs; it is, in reality, no more than a revocable license. ’ Menendez, 128 U.S. at 523-24 (citations omitted). Particularly where the infringer’s use of the mark began with the owner’s consent, Petitioner has found no case (other than the decision below) that has denied injunctive relief after the permission later was re voked. To reach its result, the court below had to ignore the entire line of trademark cases between re lated parties upon which the district court relied. Instead, the court below purported to ground its deci sion on rulings of this Court in which the parties had no previous association in charitable, civic, or com mercial matters. To be sure, this Court has denied prospective injunctive relief in trademark disputes involving non-profit organizations as well as commer cial entities. Ancient Egyptian Arabic Order of Nobles of the Mystic Shrine v. Michaux, 279 U.S. 737 (1929); Creswill v. Grand Lodge Knights of Pythias of Georgia, 225 U.S. 246 (1912); French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427 (1903). In all three of those cases, however, not only was there no prior affiliation or grant of permission between the parties, but the facts made clear that (unlike the pend ing case) there was no real likelihood of public con fusion.9 This Court also grounded the Creswill decision on the fact that [footnote continues on next page] 14 The Second and Third Circuits occasionally deny injunctive relief based upon a laches defense, but only where the owner of a mark took some affirmative step to abandon the mark or to mislead the defendant about its continuing right to use the mark.* 7 See Saratoga Vichy Spring Co., Inc. v. Lehman, 625 F.2d 1037, 1042 (2d Cir. 1980); Anheuser-Busch v. DuBois Brewing Co., 175 F.2d 370, 374 (3d Cir. 1949), cert, denied, 339 U.S. 934 (1950); Dwinell-Wright Co. v. White House Milk Co., 132 F.2d 822, 825 (2d Cir. 1943). However, in the absence o f misleading affirmative con duct, even those two Circuits follow the general rule of Menendez and grant prospective injunctive relief. E.g., Philadelphia Jaycees, 639 F.2d 134; Grotrian, Helfferich, Schulz Th. Steinweg Nachf. v. Steinway & Sons, 523 F.2d 1331, 1334 (2d Cir. 1975) (damages barred by delay; injunction approved). the defendant was unaware of its infringement. Where a party knows it has been using the mark of another party, this Court applies the general rule. Hanover Star Milling Go. v. Metcalf, 240 U.S. 403, 419 (1916) ; see also Tisch Hotels, Inc. v. Americana Inc., 350 F.2d 609, 615 (7th Cir. 1965) ; Indep. Nail & Packing Co., Inc. v. Stronghold Screw Products, Inc., 205 F.2d 921 (7t,h Cir.), cert, denied, 346 U.S. 886 (1953); Nat’l Circle, Daughters of Isa bella v. Nat’l Order of Daughters of Isabella, 270 F. 723 (2d Cir.), cert, denied, 255 U.S. 571 (1920). 7 The facts that are held to establish a laches defense in the Second and Third Circuits likely would be regarded as establishing an “ acquiescence” defense in other Circuits. In this case, the dis trict court found that the NAACP never misled the LDF about the Association’s unwillingness to give up exclusive control of the NAACP mark. Appendix, 34a-35a. Moreover, when the NAACP mark was used by an unrelated third party without permission, the NAACP took quick action to obtain a court order to protect its mark. Appendix, 29a. 15 Because the court below is the first court both to conclude that a trademark owner’s permission to a related party to use the owner’s trademark did not create an implied revocable license, and to deny in junctive relief after the owner later revoked the per mission, it is important for this Court to clarify the application of Menendez and Saratoga Vichy to trade mark disputes between related parties. In particular, the three-element test for laches applied by the court below, Appendix, 14a, makes little sense in an infringe ment case involving related parties. First, cases involving related parties typically in volve long periods of use by a defendant, because the permission to use a mark may last years, even decades, before the owner has reason to cancel the permission.8 Second, the trademark owner will be aware of the use of its mark, having given permission to the user.9 Third, a related party presumably benefits from tbe permitted use of an established and widely recognized mark, but that party cannot establish secondary mean ing or other rights in the mark while the permission continues.10 The decision of the court below places a cloud over any trademark owner that now licenses or » E.g., Philadelphia Jaycees, 639 F.2d 134 (about 35 years) ; San Francisco Jr. Chamber of Commerce, 513 F.2d 1226 (more than 40 years) ; District 50, U.M.W., 298 F. Supp. 1262 (more than 25 years before gradual separation). 9 Tisch Hotels, Inc., 254 F. Supp. at 750 (permission does not result in abandonment or loss of rights). If the NAACP s grant of permission to the IjDF in 1939 created a revocable license, the laches defense should not come into play in this case, because the permission continued until 1979. See also, note 5, supra. 10 See note 4, supra. 16 permits use of a mark, or who may want to do so in the future. Lost in the decision of the court below, but critical to the district court opinion, is the recognition that the purpose of the Lanham Act is not to protect in fringers, but to protect the public from confusion. See Philadelphia Jaycees, 639 F.2d at 142. The confusion that is likely to follow the separation of related parties is “ too clear for discussion.” Indep. Order of Owls, 220 F. at 662; see also Purcell v. Summers, 145 F.2d at 983. Notwithstanding the district court’s clear findings that past instances of public confusion between the NAACP and the LDF were likely to continue in the future, Appendix 36a, the decision of the court below will permit public confusion to continue in perpetuity, as it might in any case involving related parties.11 See San Francisco Jr. Chamber of Commerce, 354 F. Supp. at 77 (risk of confusion particularly great if names of parties do not change after relationship ends). Menendez and Saratoga Vichy, although old, remain important precedents of this Court which define the rights of parties to trademark disputes and which protect the public from confusion. Because the court below acted so inconsistently with other courts that have applied those cases and in a manner that threat ens the rights of trademark owners and licensors, this Court should confirm how the laches and acquiescence defenses described in Menendez and Saratoga Vichy 11 Because the court below decided that laches barred relief in this case, it did not review the confusion issue. Appendix, 13a n. 55. 17 are to be applied to trademark disputes between par ties who are related by history or agreement. Full review and reversal by this Court is warranted. CONCLUSION For these reasons, the petition for writ of certiorari should be granted. Respectfully submitted, E d w a r d W . B r o o k e Counsel of Record B a r r y J. C u t l e r O ’C o n n o r & H a n n a n 1919 Pennsylvania Ave., N.W. Suite 800 Washington, D.C. 20006 (202) 887-1400 Counsel for Petitioner APPENDIX la APPENDIX A UNITED STATES COURT OF APPEALS, DISTRICT OF COLUMBIA CIRCUIT. No. 83-1719. National A ssociation for the A dvancement of Colored P eople, aka NAACP v. N.A.A.C.P. L egal Defense & E ducational F und, I nc., Appellant. Argued May 3, 1984. Decided Jan. 25, 1985. As Amended Feb. 26, 1985. OPINION Civil rights organization brought action against legal defense fund, its former affiliate, seeking an injunction pre venting the fund from using the initials of the organization as part of its title. The United States District Court for the District of Columbia, 559 F.Supp. 1337, entered sum mary judgment in favor of organization, and fund appealed. The Court of Appeals, Bazelon, Senior Circuit Judge, held that doctrine of laches barred suit where organization de layed nearly 13 years before resuming negotiations over fund’s use of initials in its title. Reversed and remanded with instructions to dismiss. Appeal from the United States District Court for the District of Columbia (Civil Action No. 82-01424). Jay Topkis, New York City, of the Bar of the United States Supreme Court, pro hac vice, by special leave of the Court and William T. Coleman, Jr., Washington, D.C., with 2a whom Vernon E. Jordan, Jr., Daniel Joseph, Randall L. Sarosdy and Barrington D. Parker, Jr., Washington, D.C., were on the brief, for appellant. Sidney S. Rosdeitcher, Washington, D.C., also entered an appearance for appellant. Edward W. Brooke, Washington, D.C., with whom Barry J. Cutler and Judith Hall Howard, Washington, D.C., were on the brief, for appellee. Before MIKVA and BORK, Circuit Judges, and BAZE- LON, Senior Circuit Judge. Opinion for the Court filed by Senior Circuit Judge BAZELON.- BAZELON, Senior Circuit Judge: Two civil rights organizations contend for the right to use the initials “ NAACP” as their trademark. The Na tional Association for the Advancement of Colored People (the Association) alleges that the continued use of the NAACP initials by the NAACP Legal Defense and Educa tion Fund, Inc. (the LDF) constitutes a trademark infringe ment.1 The LDF replies that the Association irrevocably granted it the right to use the initials. The LDF also main tains, inter alia, that the Association’s suit is barred by laches. In the district court, both sides moved for summary judgment.2 The court granted the Association’s motion and ordered the LDF to refrain from using the NAACP initials. Because the district court erred in denying the LDF’s de fense of laches, its judgment is reversed. 'Trademark Act of 1946 (“ Lanham A ct” ) As Amended, 15 U.S.C. §§ 1114, 1125 (1982). 2 The two parties ‘ ‘ agreed that the passage of time has rendered further illumination of the facts . . . both unlikely and unneces sary.” N AACP v. N AACP Legal Defense and Edac. Fund, Inc., 559 F.Supp. 1337, 1339 (D.D.C. 1983). 3a I. Background The material facts are undisputed.3 The Association, known as “ the NAACP,” was founded in 1909," and listed among its goals: to promote equality of rights and eradicate caste or race prejudice among the citizens of the United States; to advance the interests of colored citizens; to secure for them impartial suffrage; and to increase their op portunities for securing justice in the courts, education for their children, employment according to their abil ity, and complete equality before the law.5 The Association has sought to achieve its goals through educational work, legislative activity, and litigation." As early as 1936/ the Association’s Board of Directors voted to organize a national defense fund to raise money 3 See id. The district court noted that the parties’ “ differences [regarding the facts] are principally semantic.” Id. 4 The Association was incorporated in New York in 1911. NAACP Certificate of Incorporation, Appellee’s Exhibit 1 at 3 [hereinafter cited by Exh. and page], 5 Id., Exh. 1 at 1-7. 6 The Association is a membership organization. NAACP 1981 A nnual R eport, Exh. 2 at 9-10. 7 For the first two decades, the Association’s legal program brought cases on an ad hoc basis in an effort to address issues important.to the Association’s aims. Unpaid legal volunteers often performed these legal services, and any modest litigation expenses were paid by the Association’s National Office or by direct contri butions for the particular case. During the 1930’s, however, the Association expanded its litigation program, targeting key areas of racial discrimination, including education, voting, housing, and the administration of criminal justice. Report on the N AACP Legal Program and the Relationship of the Inc. Fund to that Program (Dec. 21, 1961), Exh. 4 at 15. 4a for its litigation program.8 Besides serving as a means to ensure on-going financing of civil rights litigation, the cre ation of the LDF provided an important tax advantage.* The Bureau of Internal Revenue had ruled that contribu tions to the Association were not deductible for federal income tax purposes because of the Association s lobbying work. Hence, the creation of a separate organization to perform the Association’s legal work allowed contributors wishing to support its nonpolitical activities to receive tax deductions.10 The Association’s Board of Directors was informed by the New York Secretary of State that a certificate of in corporation could be processed only if the new corporation obtained “ consent” from the Association to the use of the NAACP initials.11 The Association’s Board of Directors then passed the following resolution on October 9, 1939: BE IT RESOLVED, That the Board of Directors of the National Association for the Advancement of Colored People grant permission for the use of the initials, “ N.A.A.C.P.” by the “ N.A.A.C.P. Legal De fense and Education Fund, Inc.” and authorize the President and Secretary to execute whatever papers might be necessary to carry out this resolution.12 a See Minutes of the Association’s Board of Directors Meeting (Apr. 13, 1936), Exh. 6 at 24. 9 Appellee’s Brief at 8. 10 Id. 11 II. Herman Zand Affidavit (Apr. 8, 1983), 4. 12 Minutes of the Association’s Board of Directors Meeting (Oct. 9, 1939), Exh. H a t 39 (emphasis added). 5a The State of New York approved the incorporation of the LDF in 1940.13 From 1940 to 1957, the LDF served as a subsidiary of the Association. Although funds were kept in separate accounts, all the LDF’s first directors were members of the Association’s board.14 The Association solicited con tributors by explaining that they could help the Association by making tax-deductible contributions to the LDF.15 Apparently some gifts contributed directly to the Associa tion were placed in the LDF fund, and the contributor was then notified that his contribution was deductible for fed eral income tax purposes.16 The allocation of contributions between the LDF and the Association was not based upon who made the solicitation, but upon the purpose for which the money was used—so funds used for lobbying could only go to the Association, while funds used for litigation would go to the LDF.17 During this initial period, the LDF was under its pro genitor’s direct control. The two organizations had common directors, offices, and staff.18 Throughout the 1940’s and 13 See IjD F ’s Certificate of Incorporation, Exh. 19 at 46; James M. Nabrit, III, Affidavit (Apr. 13, 1983); see also Appellant’s Brief at 6. 14 See Memorandum from Thurgood Marshall to Walter White and Arthur B. Springarn (July 27, 1939), Exh. 17 at 42-43. 15 See, e.g., letter from John D. Rockefeller III (by his assistant Mary Campbell) to Walter White (May 7, 1940), Exh. 25 at 60. ' » See, e.g., letter from Walter White to Margaret and Corliss Lamont (May 15, 1941), Exh. 27 at 62. 17 See Memorandum from Walter White to Edward Dudley (June 6, 1945), Exh. 42 at 78. 18 Appellant’s Brief at 7. From 1940 to 1957, the LDF became increasingly independent. In 1941, the LDF began its own fund- 6a into the 1950’s, the LDF was guided by the Association s National Office’s policy decisions regarding the handling of litigation. In particular cases, the Association’s Board o Directors’ approval was sought before proceeding.1 Ihe LDF, as the legal branch of the Association, routinely han dled general legal matters of the Association. In 1957, however, the LDF and: the Association mutually agreed to the LDF’s independence. A gradual shift in that direction had suddenly been accelerated by external forces. The U.S. Treasury Department and several Southern state officials challenged the LDF’s tax-exempt status.* 19 20 The Southern state officials claimed that the LDF had too close a relationship with the Association, which was engaged in lobbying and political activities.21 The U.S. Treasury De partment objected to the sharing of board members and the NAACP initials.22 In response, the Association and raising and its board did include some members who were not directors of the Association. The Fund moved into its own offices in 1952. By 1953, the LDF had its own separate annual budget. See Appellant’s Brief at 7. 19 See, e.g., Minutes of the L D F ’s Board of Directors Executive Committee Meeting (Oct. 8, 1951), Exh. 47 at 83-84. 20 See LDF Press Release, Facts About the Relationship Between the N.A.A.C.P. Legal Defense and Educational Fund, Inc. (LD F) and the National Association for the Advancement of Colored Peo ple (N A A C P ) (Apr. 16, 1979), Exh. 51 at 100. In a hostile reac tion to Brown v. Board of Education, 347 U.S. 483, 74 S.Ct. 686, 98 L.Ed. 873 (1954), several Southern attorney generals ordered production of the Association’s records and membership lists seek ing to find any information of non-compliance with state law. See Appellee’s Brief at 19. 21 See Exh. 51, supra note 20. 22 John Hammond Affidavit (Apr. 8, 1983), 1(3 ; see also Appel lant’s Brief at 8. 7a LDF decided that the LDF should retain its NAACP initials but should sever all direct connections with the As sociation.23 On May 16, 1957, the LDF’s board adopted a resolution that “ no person should be a Board member, officer or employee of this corporation who is also a Board member, officer or employee of the N.A.A.C.P.” 24 The board, budget, staff, and program of both organiza tions were completely separated.25 The LDF now came under the direct control of its own board of directors. Since 1957, the LDF has spent over eleven million dollars solicit ing contributions using the NAACP initials.26 The LDF continued to function as the Association’s outside counsel, and coordinated its efforts with those of the Association in cases directly involving the Association’s branches and individual members.27 However, the LDF also sought other clients who had no connection with the Association. The independence of the LDF from the Association was reported to the Treasury Department which never again challenged the LDF’s tax-exempt status.29 Donations occa sionally made to the’ wrong organization were forwarded to the intended beneficiary. Contributors were instructed 23 Hammond Affidavit, supra note 22. 24 See Appellant’s Brief at 8 ; Appellee’s Brief at 20. 25 See Exh. 51, supra note 20, at 93. 26 Nabrit Affidavit, supra note 13, ([ 3. 27 See Appellant’s Brief at 7. 29 These clients included Dr. Martin Luther King, thousands of freedom marchers, and thousands of victims of discrimination in education, in employment, and in the application of capital punish ment laws. Jack Greenberg Affidavit (Apr. 11, 1983), ([7. 20 See Appellant’s Brief at 8 ; see also Houck, With Charity for All, 93 Y ale L.J. 1415, 1440-41 (1984). 8a about the tax deductibility of their donations,30 as well as advised about the total separateness of the two organi zations.31 Because such scrupulous organizational separation pre cluded-'‘ direct and formal control of the Inc. Fund [LDF] by the NAACP Board,” 33 cooperation between the two parties relied upon personal ties and common policy inter ests. But by the 1960’s, however, tensions between the two organizations became evident,33 despite the formation of several liaison committees established between 1960-62 and 1965-66.34 These strained relations resulted from a height ening of direct competition in fund-raising.33 There was 30 See Letter from Kivie Kaplan to Thurgood Marshall (June 15, 1961), Exh. 82 at 156; Letter from Kivie Kaplan to Thurgood Marshall (Feb. 20, 1961), Exh. 83 at 157; Letter from Roy Wilkins to N.L. McMahon (Sept. 22, 1961), Exh. 84 at 158. 31 See, e.g., Letter from John Morsell to Anne Gerber (Nov. 17, 1966), Exh. 99 at 197. The single issue that the parties are “ un willing to concede as being presented upon altogether undisputed facts is the extent of public confusion of the two organizations.” 559 F.Supp. at 1344. However, this factual disagreement is not material to the ultimate outcome of this case, which we base upon the defendant’s laches defense. 32 Report of the Liaison Committee with Inc. Fund Board (Apr. 6, 1982), Exh. 90 at 171; see also Appellee’s Brief, at 26. 33 See 559 F.Supp. at 1340. 34 Minutes of the Association’s Board of Directors Meeting (Apr. 9, 1962), Exh. 91 at 180; see also Appellee’s Brief at 23-32. 35 In 1965, the Association became a direct competitor with the LDF for tax-exempt contributions when it established the “ NAACP Special Contribution Fund.” See Minutes of the Association’s Board of Directors Meeting (Jan. 6, 1964), Exh. 105 at 206. The L D F ’s traditional reliance on large corporate and foundation grants was correspondingly broadened to include small-gift contri butions. See Appellee’s Brief at 29-30. 9a also a dispute over who should take public credit for suc cessful civil rights litigation.3” Although both organizations publicly attempted to deemphasize any explicit competi tion,37 the tensions between them continued to heighten.39 In July 1965, the Association’s Board adopted a reso lution 39: it was VOTED that the Inc. Fund [the LDF] be ap proached by the Chairman of the Board, the Executive Director, the Treasury, and the Chairman of the Spe cial Contribution Fund for the purpose of requesting the Inc. Fund to voluntarily reincorporate under a name that does not include NAACP; or to bring the Inc. Fund back into Special Contribution Fund status; and, if they refuse to do so, the NAACP should go into court and enjoin them from use of the name NAACP.'” The Association’s Executive Director orally conveyed this request and threat of suit to the Director of the LDF, who rejected the demand.41 At the Association’s September 12, 1965 meeting, the Association’s Board formally withdrew the language of its resolution threatening suit. 33 Each made accusations that the media was being manipulated by the other in assigning historical credit for civil rights advances that the organizations should have shared. See Appellee’s Brief at 26-27. 37 See, e.g., Letter from John Morsell to L.H. Grunebaum (Aug. II, 1967), Exh. 104 at 204; Letter from Percy Julian to Kivie Kaplan (May 13, 1967), Exh. 106 at 209. 39 See Appellee’s Brief at 31. 39 Minutes of the Association’s Board of Directors Meeting (July 2, 1965), Exh. 93 at 186. 40 Id. (emphasis added). 41 Jack Greenberg Affidavit (Dec. 7, 1982), ][[[ 3, 4. This dialogue was further explicated during oral argument. 10a The Executive Director reported that the Legal Com mittee has suggested that a phrase in the July 2, 1965, minutes [page 4], to wit: “ and, if they refuse to do so, the NAACP should go into court and enjoin them from use of the name NAACP,” be stricken from the min utes . . . . [Bjecause of the feeling of the Legal Com mittee that it was impolitic to have such a phrase on record and, additionally, that it would have no standing in court, it was voted unanimously, on motion by Mr. Alexander, duly seconded, that the phrase be stricken from the minutes . . . .42 Thereupon, the Association’s Executive Director told the Director of the LDF that the threatening language had been withdrawn.43 On February 24, 1966, representatives of both sides met to discuss their relationship. It was sug gested again that the LDF change its name but the LDF declined.44 During the next twelve years, from 1966 through 1978, the Association remained silent concerning the LDF’s use of the NAACP initials.45 * The Association did not give clear notice to the LDF about reserving its exclusive claim to the NAACP initials. There were no negotiations. Coopera tive interchanges between the LDF and the Association’s attorneys waned.41’ The Association itself indicated that during this time, the LDF “ pursued an independent course of action . . . without consultation with the NAACP as to 42 Id., Exh. B. 43 Id., 11 5. 44 See letter from Julius Chambers to Margaret Wilson and Benjamin Hooks (Jan. 5, 1979), Exh. 142 at 262. 45 5 59 F.Supp. at 1341; see Appellant’s Brief at 10. 48 See letter from Julius Chambers to Margaret Wilson (May 29, 1980), Exh. 159 at 293. The Association had its own staff attorneys. 11a either policy or program.” 47 At least since 1966, the LDF has included a disclaimer on its stationery disavowing any present relationship with the Association.48 During this period of no negotiations, the LDF continued to build up its goodwill—indeed, these were the salad days for the LDF’s litigation practice.49 The LDF continued to spend time and millions of dollars in soliciting gifts and recruit ing legal talent using the NAACP initials.50 Many public interest groups now use the term “ legal defense fund” in emulation of the LDF’s success.51 47 Emergency Resolution Calling for the Withdrawal and Revoca tion of Permission To Use the NAACP Initials by the NAACP Legal Defense and Educational Fund, Inc. (June 25, 1979), Exh. 153 at 282; see also Exh. 4 supra note 7, at 18-19. 48 559 F.Supp. at 1343; Appellant’s Brief at 11. The language currently employed is: The NAACP L egal D efense & E ducational F und is not part of the National Association for the Advancement of Colored People although it was founded by it and shares its commit ment to equal rights. LDF has had for over 25 years a separate Board, program, staff, office and budget. Appellant’s Brief at 11. 49 See, e.g., Bernard v. Gulf Oil Co., 619 F.2d 459, 470 (5th Cir. 1980) (en banc), aff’d, 452 U.S. 89, 100 S.Ct. 2193, 68 L.Ed.2d 693 (1981) ; Northcross v. Board of Educ., 611 F.2d 624, 637 (6th Cir. 1979), cert, denied, 447 U.S. 911, 100 S.Ct. 2999, 3000, 64 L.Ed.2d 862 (1980). We were informed during oral argument that 1300 cases have been brought under the L D F ’s name, using the NAACP initials. The district court indicated that “ ft] he universal esteem in which the initials are held is due in significant measure to its distinguished record as a civil rights litigator.” 559 F.Supp at 1345. 50 Appellant’s Brief at 12. 51 At least thirteen such organizations exist. See Appellant’s Brief at 12. 12a Negotiations were initialed by a letter from the Associa tion to the LDF on December 29, 1978. The correspondence indicated concern about confusion stemming from LDF’s use of the NAACP initials.52 * On June 28, 1979, the Associa tion’s board adopted a resolution that rescinded the reso lution of October 9, 1939 and revoked permission to use the NAACP initials. The Association registered the NAACP initials with the Patent and Trademark Office on January 26, 1982. On May 25, 1982, the Association initiated this suit.153 The Association alleged that its 1939 resolution granted only a revocable license for use of the NAACP initials, and that the LDF’s continued use of the initials constituted a trademark infringement. In response the LDF maintained that the 1939 resolution was an irrevocable grant, and that estoppel, acquiescence, and laches prevent the Association from belatedly asserting its claim. After a period of dis covery, the parties made cross-motions for summary judgment. The district court noted that the parties “ agreed that the passage of time has rendered further illumination of the facts (upon which their differences are principally semantic) both unlikely and unnecessary.” 54 The court held that: (1) the 1939 resolution was intended as a revocable license to use the NAACP initials; (2) the Association did not lose exclusive control of its initials by acquiescence, estoppel, or laches; and (3) the potential for future public confusion between these two parties as a result of the shared trademark was substantial. The district court thus granted the Association’s motion for summary judgment. The court ordered that an injunction banning the LDF’s 52 5 59 F.Supp. at 1341. 52 Id. 54 Id. at 1339. 13a use of the NAACP initials would issue upon exhaustion of appeals. It also prohibited the LDF from referring to their former affiliation with the Association two years following this initial injunction. But because we find that the Associa tion’s suit is barred by laches, the district court’s judgment is reversed.55 II. The Laches Defense The doctrine of laches 55 bars relief to those who delay the assertion of their claims for an unreasonable time. Laches is founded on the notion that equity aids the vigilant and not those who slumber on their rights. Several aims are served by requiring the reasonable diligence of plain tiffs in pursuing their legal rights. Plaintiffs are encour aged to file suits when courts are in the best position to resolve disputes. As claims become increasingly stale, perti nent evidence becomes lost; equitable boundaries blur as defendants invest capital and labor into their claimed prop erty;57 and plaintiffs gain the unfair advantage of hind sight, while defendants suffer the disadvantage of an un certain future outcome. 55 In so doing, we need not decide whether summary judgment was appropriate in denying the defendant’s other independent de fenses. Nor do we reach the controversies involving the amount of public confusion and the validity of the district court’s remedy. 55 See Trademark Act of 1946 As Amended, 15 U.S.C. §1069 (1982) (principles of laches may be applied by federal courts). 57 Non-profit organizations must heavily rely on their accumu lated goodwill. This is due to “ contract-failure” : services provided by non-profits are often not immediately verifiable to their con tributors. See Hansmann, The Role of Non-profit Enterprise, 89 Yale L.J. 835, 843-45 (1980). Here goodwill is tied to a trademark that defines property lines. Contributors identify particular non profit organizations by the goodwill built around their trademarks. 14a Here almost thirteen years passed from 1966 through 1978 during which this case was ripe for judgment. Laches may not have been applicable if the Association had pur sued negotiations during this time rather than going d:rect- ly to court.58 Understandably these two civil rights organi zations were reluctant to air publicly a fight among brothers and sisters. But legal precedent requires that this well- # meaning motive be objectively evidenced by on-gomg nego tiation to excuse a stale claim.59 The Association fails to offer reasons why negotiations were not possible. A. The Doctrine The essential elements of laches are well-defined by com mon law. There are three affirmative requirements: (1) a substantial delay by a plaintiff prior to filing suit; (2) a plaintiff’s awareness that the disputed trademark was being infringed; and (3) a reliance interest resulting from the defendant’s continued development of good-will during this period of delay.'’0 Courts also look for factors that may negate the invocation of laches by excusing the delay: 5* The record, as described by the district court, plainly indicates the total lack of negotiations during this time frame. 559 F.Supp. at 1341. Nor does the Association challenge this factual finding. 50 In some instances, courts excuse delay if there were on-going negotiations. See infra p. 139. On the other hand, there are no court cases excusing twelve years of delay based purely on the motive, however well-meaning, of wishing to avoid the disadvan tages of filing suit. Laches is not like the defenses of acquiescence or abandonment that may require evidence of an intent to abandon. 4 R. Callm an , T he L aw of Unfair Competition , T rademarks and Monopolies §22.21, at 110 (1983). «° See Saratoga Vichy Spring Co., Inc. v. Lehman, 625 F.2d 1037, 1040 (2d Cir. 1980) ; R. Callm an , supra note 59. 15a (1) ongoing negotiations;61 and (2) conscious fraud or bad faith by the defendant.82 Laches may bar injunctive relief when the defendant has established a substantial reliance interest.63 The district court failed to recognize this principle.64 It is true that “ mere delay” by itself does not bar injunctive relief if the defendant did not invest resources that contribute to a trademark’s future value.65 But injunctive relief may be appropriately barred when the defendant invested substan tial labor and capital that builds the trademark’s goodwill.66 This future property interest, resulting from reliance dur ing the plaintiff’s negligent delay, therefore prevents the enjoining of the defendant’s continued use of the trademark. 61 See infra p. 139. 62 See, e.g., Cuban Cigar Brands v. Upmann In t’l, Inc., 457 F. Supp. 1090, 1098-99 (S.D.N.Y. 1978). 62 See French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427, 24 S.Ct. 145, 48 L.Ed. 247 (1903); Saratoga Vichy Spring Co., Inc. v. Lehman, 625 F.2d 1037, 1041 (2d Cir. 1980). 64 The district court stated that laches rarely bars injunctive relief. 559 F.Supp. at 1344. But the very sources cited by the dis trict court recognize the importance of a defendant’s reliance interest. See, e.g., Menendez v. Holt, 128 U.S. 514, 524, 9 S.Ct. 143, 145, 32 L.Ed. 526 (1888) (no denial of injunction because no action done in reliance) ; R. Callm an , supra note 59 § 22.21, at 110 (mere delay without the defendant’s reliance does not disentitle plaintiff to injunction). Furthermore, the Supreme Court, in later opinions, explicitly made laches available as an equitable defense barring injunctive relief. See, e.g., French Republic v. Saratoga Vichy Spring Co., 191 U.S. 427, 24 S.Ct. 145, 48 L.Ed. 247 (1903). 65 In such an instance, simply barring the plaintiff’s monetary recovery of damages during the negligent delay may be considered. 6,1 See infra p. 139. 16a The district court erred in denying the defense of laches. Although considerable deference is given to the trial judge s discretion on the question of laches,67 here the material facts are not in dispute according to both the parties and the district court.68 B. The Affirmative Requirements The requirements of laches are satisfied by the facts of this case. First, the Association delayed for almost thirteen years before resuming negotiations over the LDF’s use of the NAACP initials. This length of time is comparable to that in other cases in which the laches doctrine has been applied.69 While mere delay by itself does not bar injunctive relief, here there was substantial investment by the LDF during this considerable time lapse. Because the Association did not give clear notice of its exclusive claim to the NAAC initials during this hiatus, the Association failed to reserve its rights. Such delay invites reasonable reliance by strengthening the defendant’s belief that its use of a trade mark will not be challenged. The cases cited by the district court do not tolerate the length of the delay found here.70 87 See, e.g., Baker Mfg. Co. v. Whitewater Mfg. Co., 430 F.2d 1008, 1009 (7th Cir. 1970), cert, denied, 401 U.S. 956, 91 S.Ct. 978, 28 L.Ed.2d 240 (1971) (while recognizing weight of district court’s discretion, the appellate court reverses after review of detailed record). 88 See supra notes 2 & 3. 89 See, e.g., Polaroid Corp. v. Polaroid Elecs. Corp., 287 F.2d 492 (2d Cir.), cert, denied, 368 U.S. 820, 82 S.Ct. 36, 7 L.Ed2d 25 (1961) (eleven-year delay); Seven-Up Co. v. O-So-Grape, 283 F.2d 103, 105-06 (7th Cir. 1960), cert, denied, 365 U.S. 869, 81 S.Ct. 903’ 5 L.Ed.2d 859 (1961) (thirteen-year delay). 79 See, e.g., Independent Nail & Packing Co. v. Stronghold Screw Prods., Inc. 205 F.2d 921 (7th Cir.), cert, denied, 346 U.S. 886, 17a Second, it is undisputed that the Association had knowl edge of the LDF’s alleged infringement.71 These two organi zations knew each other intimately. In 1957, it was a mutual decision to separate and to allow the LDF to retain its NAACP initials. In the 1960’s, the Association was also aware of the direct competition that was developing be tween the parties. The Association had ample opportunity to resort to a suit. In fact, the Association did threaten litigation, but withdrew its threat.72 Third, the Association’s conduct gave the LDF reason able justification to rely on the Association’s inaction, and to invest resources based upon this reliance. We again em phasize that, while mere passage of time does not bar in junctive relief, here the defendant’s use of the NAACP initials resulted from both the plaintiff’s inaction and con duct that encouraged continued use of the trademark. The Association failed to reserve its rights during the twelve year period. Indeed, it had previously agreed to the LDF’s independence without asserting an exclusive claim to the NAACP initials. The prejudice resulting from the reliance interest building during the years of delay in this case was substantial. The LDF continued to develop “ [t]he universal 74 S.Ct. 138, 98 L.Ed. 391 (1953) (two-day delay) ; Coca-Cola Co. v. Gemini Rising, Inc., 346 F.Supp. 1183, 1192 (E.D .N .Y. 1972) (ten to fifteen months) ; H.A. Friend and Co. v. Friend and Co., 276 F.Supp. 707, 716 (C.D.Cal.1967), aff’d, 416 F.2d 526 (9th Cir. 1969), cert, denied, 397 U.S. 914, 90 S.Ct. 916, 25 L.Ed.2d 94 (1970) (one and a half years). 71 This is not a case where the plaintiff was ignorant of the alleged infringer’s use of its trademark. See Ancient Egyptiari Arabic Order of Nobles of the Mystic Shrine v. Michaux, 279 U.S. 737, 747, 49 S.Ct. 485, 488, 73 L.Ed. 931 (1929); R. C allm an , supra note 59, § 22.21, at 110. 72 See supra p. 135. 18a esteem in which the [NAACP] initials are held. The LDF invested substantial labor and millions of dollars in pressing important civil rights suits, soliciting gifts, and recruiting legal talent using the NAACP initials.74 Because many organizations have names virtually identical to the LDF’s except for the NAACP initials, it is only these ini tials that distinguish the LDF from its emulators. 5 Courts have never imposed an affirmative obligation upon a defendant to clarify its right to use a disputed trademark during the plaintiff’s delay.76 The undisputed facts of this case point to the reasonableness of the LDF’s reliance upon the Association’s delay in enforcing its claims. The passing of almost thirteen years without any clear reservation of rights by the Association creates a presumption of reason able reliance. The Association’s conduct included affirma tive acts of encouragement. Besides having agreed to the ™ 559 F.Supp. at 1345. So during this time, the Association benefitted from the added luster given to the NAACP initials by the L D F ’s litigation successes. 74 See supra pp. 135-136. 75 Despite acknowledging this evidence, the district court con cluded that there was “ no evidence” to support a finding of prejudice. The court felt that the LDF could recast its identity sans the initials. 559 F.Supp. at 1344. But prejudice is not the mechanical ability to change identities, but the loss of investment in labor and capital in reliance upon the plaintiff s inaction. Also there was substantial evidence on the record of the additional monetary costs of fund-raising if the LDF was unable to use the NAACP initials. See James Robinson Affidavit (Apr. 13, 1983), HI! 5-8. 76 The district court also concluded that because the LDF knew “ that a reckoning could come at any time,” it is forced to suffer the consequences of taking this risk. 559 F.Supp. at 1344. But the cases never have imputed this gambling as affecting the result. All the evidence indicates that the LDF acted in good faith and believed that it had a justifiable right to use tne NAACP initials. 19a LDF’s independence, the Association continued as a client of the LDF and did not protest the LDF’s use of the initials despite the LDF’s independent dealings with other clients. Finally, the LDF wag aware that the Association had threat ened to sue but did not.77 The LDF’s good-faith reliance was reasonably based upon both the Association’s prolonged passivity and its affirmative acts. C. The Absence of Negating Factors The district court correctly indicated that courts tolerate delays if the parties are negotiating a settlement.76 But the undisputed facts show that from 19(56 through 1978 there were no negotiations. In the total absence of negotiations, delay “ stemming from an abhorrence of time-consuming and costly litigation” does not preclude laches.79 Nor was there any evidence presented that suggested bad faith or conscious fraud by the LDF. Indeed, both parties have cooperated in exchanging donations attributed to the wrong organization. The LDF’s disclaimer on its 77 See supra p. 135. For similar instances where laches is applied because a suit was threatened and followed by delay, see Con tinental Coatings Corp. v. Metco, Inc., 464 F.2d 1375 (7th Cir. 1972) ; Anheuser-Busch, Inc. v. Du Bois Brewing Co., 175 F.2d 370 (3d Cir. 1949). See also 4 R. Callm an , supra note 59, § 22.23, at 118; 2 H. Nims, T he L aw of U nfair Competition and T rade marks § 409, at 1286-87 (1947). None of the cases or authorities distinguish whether the threat to sue is delivered through formal versus informal channels. The significant point is that a dropped threat of suit suggests that the defendant’s reliance was reason able. Communications between these two organizations largely re lied on informal ties. 76 5 59 F.Supp at 1344. 7!’ R. Callm an , supra note 59, § 22.23 at 119; see also supra note 59. The Association did sue a Rhode Island organization that had used the NAACP initials. 559 F.Supp. at 1341 n. 1. 20a stationery further indicates good faith efforts to reduce any possible public confusion over its use of the NAACP initials. In conclusion, there is an absence of factors that might counsel our hesitation in applying laches. III. The Lack of Licensing Arrangements The Association alleges that from 1966-78 the LDP pos sessed only a revocable license to use the NAACP initials. The Association bases this view upon a non-profit parent organization’s right to revoke use of its name when an affiliate dissociates itself from the parent.80 Our review of the case law reveals no separate rule for non-profit organi zations.81 The cases relied upon by the Association inyolve local chapters of national organizations whose right to use the parent’s name was conditioned—in the organization s bylaws or charter—on the local’s continued affiliation with the national organization.82 * * * The agreements between the Association and the LDF contained no such condition. Even examined in the most favorable light, these cases do not establish that an affiliate’s right to use the parent’s 80 Appllee’s Brief at 48. 81 Given the heavy reliance by non-profits upon trademarks, see. supra note 57, it would seem especially important that we en courage clear contractual arrangements regarding their use of trademarks. 82 See, e.g., United States Jaycees v. Philadelphia Jaycees, 639 F.2d 134, 139-40 (3d Cir.1981); United States Jaycees v. San Francisco Jr. Chamber of Commerce, 354 F.Supp. 61, 71 (N.D. Cal. 1972), afj’d, 513 F.2d 1226 (9th Cir.1975); see also 513 F.2d at 1231 & n. 9 (Merrill, J., dissenting) (discussing National B d .o f the Young Women’s Christian A ss’n v. Young Women’s Christian Ass’n of Charleston, 335 F.Supp. 615 (D.S.C.1971) ; Grand Lodge Improved Benevolent, Protective Order of Elks of the World v. Eureka Lodge No. 5, Independent Elks, 114 F.2d 46, 48 (4th Cir.), cert, denied, 311 U.S. 709, 61 S.Ct. 319, 85 L.Ed. 461 (1940)). 21a name ceases anytime the parent chooses. Rather, they establish that the affiliate’s right expires when the affiliation ceases. The parent organization therefore must assert its exclusive claim to the trademark when disaffiliation occurs. Here the affiliation between the Association and the LDF ceased in 1957. Nevertheless, there was mutual agreement to the LDF’s continued use of the NAACP initials as an independent organization. A revocable license cannot be contrived from the record. Such trademark licensing requires (1) explicit contractual arrangements indicating revocability; 81 and (2) supervision and controls by the licensor over the licensee.8' Indeed, there was no contract between the parties which contained the words “ revocable license,” much less any exchange of consideration for this alleged license. The record before us is clear and there was no mutual agreement to a revocable licensing arrangement.88 83 There were no provisions which indicated (1) that this alleged license was revocable at will, or (2) under what conditions the license would be revoked. We can find no cases in which a re vocable trademark license was imputed when there was a twplve- year delay while the defendant was developing a significant reli ance interest during this time. In fact, in the absence of qualifying language upon a license, the right to use the license may be deemed perpetual. See Kidd v. Johnson, 100 U.S. (10 Otto) 617, 619. 25 L.Ed. 769 (1879); see also Croton Watch Co. v. Laughlin, 208 F.2d 93, 96 (2d Cir.1953) ; Coca-Cola Bottling Co. v. Coca-Cola Co., 269 F. 796, 807-08, 811 (D.Del.1920). 84 Here there was neither contractual control nor actual control by the Association over the L D F ’s work with other clients from 1957-58. See Reddy Communications, Inc. v. Environmental Action Foundation, 477 F. Supp. 936, 944 (D.D.C.1979). 88 Nor did the 1939 resolution result in a revocable licensing arrangement. The Association’s resolution did “ grant permission for the use of the initials.” See supra note 12. No mention was made of a revocable license; no words indicated the conditions that would cause revocation of the grant. To the contrary, the 22a IV. Conclusion The National Association for the Advancement of Col ored People and the NAACP Legal Defense and Education Fund, Inc. share common ideals and a distinguished com mon heritage. History suggests that they were jointly re sponsible for the revolution in civil rights that led to and has been epitomized by the Supreme Court’s decision in Brown v. Board of E d u ca tio n The passage of time cou pled with the reliance between the parties leads this court to conclude that laches bars the injunctive relief sought by the Association. These two great organizations, like bril liant but quarreling family members, must continued share the NAACP initials with which they were born, t he judgment is reversed. The case is remanded to the district court with directions that the suit be dismissed. So ordered. record shows that the Association did not intend to condition the grant in this manner. Zand Affidavit, supra note 11, Hit , Although we need not decide whether the 1957 agreement con stituted an irrevocable license, certainly the record does not sup port the finding that a revocable license was granted. The parties mutually agreed to the L D P ’s independence and continued use ot the NAACP initials. The Association’s right as a parent o r g a n i zation to deny an affiliate’s use of its name was ripe for determina tion at that time. It. does not seem reasonable to impute retro actively a revocable license during the twelve-year time span in which the LDF was expending resources in reliance upon t e Association’s inaction. 86 347 U.S. 483, 74 S.Ct. 686, 98 L.Ed. 873 (1954). 23a APPENDIX B UNITED STATES DISTRICT COURT, DISTRICT OF COLUMBIA. Civ. A. No. 82-1424. National A ssociation fob the A dvancement of Colored P eople, Plaintiff, v. N.A.A.C.P. L egal D efense and E ducational F und, Inc., Defendant. March 28, 1983. National Association for the Advancement of Colored People brought an action seeking to enjoin NAACP Legal Defense and Education Fund from the use of the registered mark “ NAACP.” On cross motions for summary judg ment, the District Court, Jackson, J., held that: (1) plain tiff’s grant of permission to defendant for the use of the initials was intended as a revocable license to use, and not an irrevocable assignment of, the disputed initials, (2) plaintiff did not lose exclusive control of its initials by acquiescence or laches; and (3) plaintiff was entitled to an injunction preventing defendant from further use of its initials, since to permit defendant to go its own way while retaining the initials was likely to result in further public confusion. Ordered accordingly. Edward W. Brooke, Barry J. Cutler, O’Connor & Han nan, Washington, D.C., Thomas I. Atkins, Gen. Counsel, NAACP, Brooklyn, N.Y., for plaintiff. 24a Jay Topkis, Kenneth Roth, Paul, Weiss, Rift™** Whar- ton l Garrison, New York City, Vernon E_ Jordan^ Daniel Joseph, Akin, Gamp, Strauss, Hauer & Fe'd- W » L to n , D.C, Barrington D. Parker, Jr Charles S. Bar e s t , Parker, Ausprita, Neesemann & Delelianty P.C., New York City, for defendant. d e c i s i o n a n d o r d e r JACKSON, District Judge. In the prosaic context ot this trademark action two ot the nation's preeminent civil rights organ,zat.ons contend for the right to nse the common distinguishing initials hy which hoih are known and to which each can fairly alarm to have added luster. Joined hy purpose as well as j a m for most of » the Advancement ot Colored i v „ tnc NA A C P Legal Defense and Education r • (‘ ‘ LDF’ ’ ) are parting company. Over the years in whic he, ahored together, however, they have taught four gen erations of Americans that civics and civility are cognate virtues as well as words, qualities no less in evidence as !Uey confront each other for the first time as adversaries. NAACP alleges that it has used those initials« Ots^ark since “ at least 1910;“ that beginning in 1939 it permit .h TTYw t}ien a newly incorporated subsidiary, to us. them- and that, the LDP heing now independent its eon- tinued use of them infringes the mark to the confusion of the public, and represents unfair competition in v.olat of Sections 32 and 43 of the Trademark Act of 1946. 15 IT a r W 1114 and 1125. It prays that the LDF he perma nentW j o i n e d from the use henceforth of the initials “ NAACP.” Acknowledging plaintiff’s prior claim to the mark the LDF answers that the NAACP irrevocably *rant«? ** *, right to use of the initials in perpetuity, unconditionally 25a and without reverter, and that the NAACP’s acquiescence in or indifference to its continued use of them for nearly 20 years since its first objection works an estoppel to object now. The LDF counterclaims for a judgment declara tory of its own absolute right to joint or concurrent use of the initials with plaintiff hereafter. The ease is now before the Court on the parties’ cross- motions for summary judgment. They are agreed that he passage of time has rendered further illumination of the facts (upon which their differences are principally se mantic) both unlikely and unnecessary. The documentary evidence now before the Court and parties statements of the case establishes sufficient material facts, hereinafter set forth, to be undisputed, from which the Court concludes that judgment must be given for plaintiff. I. The plaintiff National Association for the Advance ment of Colored People was founded in 1909 and incor porated in New York in 1911, to promote equality of rights and eradicate caste or race prejudice among the citizens of the United States, to advance the interests of colored citizens; to secure for them impartial suffrage; and to increase their op portunities for securing justice in the courts, education for their children, employment according to their abil ity, and complete equality before the law. And so it has done to this day, becoming a national organi zation grown to some 400,000 members who belong to about 1700 branches in 36 conferences located in seven regions throughout the United States. The NAACP has traditionally sought to achieve its ob jectives bv a calculated blend of education, lobbying, and litigation. In the early years litigation was undertaken 26a largely ad hoc; legal services were generally donated y volunteers, and such expenses as there were paid from th NAACP’s general funds or defrayed by contributions ob tained for a particular cause. By the 1930’s, however cer tain of the NAACP’s distinguished scholar-advocates fore saw the potential of litigation aS the most effective vehicle for rapid progress and set in motion t le programs minating in the cases which constitute so much of the his tory of the civil rights movement of the 20th centur^ such cases, however, they realized that e impr financing of the past would not suffice and sought a way to assure that cases would he adequately underwritten before being undertaken. The dilemma they encountered- now familiar to non-profit public interest groups hut less so then-was the reluctance of contributors to support or- ganizations, however deserving, with non-derluctible gifts and the unwillingness of the Internal Revenue Service (then " e Bureau of Internal Revenue) to allow tax deductions for gifts to organizations engaged m political activi y. solution they arrived at was the LDF. Thirty vears after its own founding, the NAACP created the defendant “ N.A.A.C.P. Legal Defense and Educational Fund Inc.,” as a New York non-profit corporation, with respect to which the NAACP Board of Directors resolved, on October 9, 1939, as follows: WHEREAS, [the directors of the LDF] have re quested permission of the [NAACP] to use the:initials “ N A A C P ” , in an application for a Certificate Incorporation of the “ N.A.A.C.P. Legal Defense and Educational Fund, Inc.” ; therefore, BE IT RESOLVED, That the Board of Directors of the National Association for the Advancement of Colored People grant permission or the use of t initials, “ N.A.A.C.P.” by the “ N.A.A.C.P. Legal De fense and Educational Fund, Inc.” , and authorize ti 27a President and Secretary to execute whatever papers might be necessary to carry out this resolution. In 1940 the LDF’s certificate of incorporation was ap proved by the State of New York, and the Internal Reve nue Service confirmed the new corporation’s tax-exempt status. The creation of a separate organization to conduct the NAACP’s legal work had enabled contributors wishing to support its non-political activities to receive deductions for their donations. Thereafter the LDF and the NAACP (sometimes affec tionately called the “ Inc. Fund” and the “ Association” to distinguish them in-house) kept separate books of ac count but still shared directors, offices and staff with one another. In the beginning there was considerable coopera tion and coordination between the two organizations on matters of both operations and policy. Donations to one or the other were allocated according to their stated purpose without regard to the identity of the nominal payee, and the organizations frequently issued “ exchange checks” to cure apparent mistakes in designation. The Executive Com mittee of the LDF Board of Directors often sought the approval of the board of the NAACP before it litigated questionable cases. And the LDF routinely handled gen eral legal matters for the NAACP. Although the organizations were physically separated in 1952 when the expansion of the LDF legal staff forced a move to new quarters a few blocks away, they experienced little distance of any other kind until May, 1957, when the LDF Board resolved to end the practice of interlocking directorates. The resolution did not result from any philo sophical divergence but, rather, was adopted primarily as a countermeasure to “ massive resistance to their efforts to enforce compliance with Brown v. Boardl of Education (and secondarily to dispel growing IRS’ unease at treating such close relatives as separate entities for tax purposes). State Attorneys General in several southern states were 28a indiscriminately ordering the production of financial rec ords and membership lists of both groups in quest of evi dence of non-compliance with state law—any state law—to discredit or disable either or both. This technical separation for tactical purposes produced some confusion, primarily among those who had thought of them as, in essence, a single organization. But even after their formal separation the NAACP and the LDF remained largely able to coordi nate efforts and avert conflicts, particularly in the sensitive area of fund-raising. One of the NAACP’s prominent leaders believed that a potential for disharmony had always existed in their struc tural differences. The NAACP is, and has always been, a membership corporation; the LDF has no members as such, its Board of Directors having only to account to itself. Whatever their origins, by 1960 tensions between the two had begun to emerge, and the first of several liaison com mittees was established to discuss jurisdictional issues and relations. In early 1962 the liaison committee presented a joint statement to the directors of both organizations sug gesting means of and urging accommodation. Although tax considerations continued to preclude the NAACP’s direct and formal control of the LDF, the directors of both boards were agreed that the whole of the LDF’s resources could be devoted to NAACP legal programs without endanger ing the LDF’s tax-exempt status. Despite the sentiment for reconciliation, however, con flicts increased, primarily as to fund-raising, and in July, 1965, the NAACP Board passed a resolution calling upon the LDF to curb its autonomic impulses and revert to “ special contribution fund status’ ’ or reincorporate under a name which would not include the initials “ NAACP.” As originally drawn the resolution provided that were the LDF to refuse to do either, the NAACP should sue “ to enjoin them from use of the name NAACP,” but in Sep tember 1965, at the urging of an elder statesman, the threat- 29a enmg language was stricken from the resolution as “ im politic.” In 1966 and 1967 the groups again attempted rapproche ment, but relations now faltered over which was entitled to take major credit for the recent dramatic successes of the civil rights movement, and the NAACP was growing ever more concerned about its ability to compete for funds with its aggressive and tax-exempt cohort now concur rently approaching many of the same sources. The 1960’s was, of course, a decade of momentous events in civil rights history : the March on Washington in 1963, followed by the assassination of President Kennedy, the enactment of the Civil Rights and Voting Rights Acts of 1964 and 1965 under President Johnson, racial riots across the country, and the well-publicized murders of prominent black figures. Both organizations, preoccupied with such events, weredistracted from efforts to repair their alliance. In the 1970’s the persistent (but usually ameliorable) problem of contributors’ confusion of the NAACP and the LDF 1 was exacerbated by controversy as to which organi zation was entitled to a principal share of the acclaim (and could exult the most) on the occasion of the 20th anniver sary of the Brown decision. And as the dispute festered the NAACP leaders who had been present at the creation of the LDF, and had tempered relations between them for a quarter century, died, retired, or (in one case) accepted appointment to the Supreme Court. 1 Even sophisticated contributors who might have been expected to know better made similar mistakes in trying to make contribu tions to one or the other, and the press would occasionally garble their titles. In cases not involving the LDF, the NAACP moved swiftly to eliminate confusion, as when it successfully sued to enjoin the unauthorized use of its initials by an unrelated organi zation incorporated under the name of “ Rhode Island Chanter NAACP, Inc.” 30a Nevertheless the NAACP remained reluctant to provoke the final break with the LDF and endured the situation in silence (except for sporadic internal expressions of dis content in April, 1975, and again in January, 1978, when the NAACP Board again took up the LDF’s use of the NAACP initials). Then in December, 1978, the NAACP again notified the LDF of its concern about the confusion between the two groups “ which results from the continued use of the NAACP initials in the Legal Defense and Educational Fund’s name.” Although the LDF immediately reiterated its willingness to discuss relations between the two, it still decined to change'its name. Yet another liaison committee negotiated through early 1979, but in June the LDF once more refused either to resubordinate itself or to relinquish use of the initials. At the end of that month the 70th An nual Convention of the NAACP voted to call upon its Board to “ withdraw and revoke permission previously granted” the LDF to use the initials. The Board did so on June 28th, voting to rescind the resolution of October 9, 1939, and revoke the permission therein granted. For mal notice of the Board’s action was sent to the LDF within the week, demanding that it “ cease and desist” in its use of the coveted initials. The LDF rejected the ulitmatum, ironically, on October 9, 1979, the 40th anniversary of the fateful original authorization. For practical purposes the conciliatory process had ended, notwithstanding desultory efforts on the part of both to revive it, and on January 26, 1982, the NAACP signalled its disillusion by formally registering the initials with the Patent and Trademark Office. Its complaint herein was filed the following May 25th. II. Injunctive relief is appropriate in trademark cases when use of the distinguishing mark “ is likely to cause confu sion or . . . mistake, or to deceive------ ” The parties need 31a not be true competitors; the inquiry is, simply, whether the public “ . . . is likely to believe that [the alleged infringer’s] services come from the same source, or are affiliated with the trademark owner.” Foxtrap, Inc. v. Foxtrap, Inc., 671 F.2d 636, 639 (D.C.Cir.1982). Nor is the right to enjoin an infringement limited to commercial enterprise. Tt is as available to public service organizations as to merchants and manufacturers, United States Jaycees v. Philadelphia Jaycees, 490 F.Supp. 688 (E.D. Pa.1980), vacated and remanded on other grounds, 639 F.2d 134 (3d Cir.1981); United States Jaycees v. San Francisco Junior Chamber of Commerce, 354 F.Supp. 61, 71 (N.D.Cal.1972), aff’d, 513 F-2d 1226 (9th Cir. 1975), but it may also be lost to them by the same defenses, including acquiescence and laches. Ancient Egyptian Arabic Order of Nobles of the Mystic Shrine v. Michanx, 279 U.S. 737, 49 S.Ct. 485, 73 L.Ed. 931 (1929); Creswell v. Grand Lodge Knights of Pythias of Ga., 225 U.S. 246, 32 S.Ct. 822, 56 L.Ed. 1074 (1912). One who uses another’s mark and alleges laches or acquiescence amounting to estoppel assumes the burden of showing not only inexcusable delay but also the injustice of stopping him. Ralston Purina Co. v. Midwest Cordage Co., 373 F.2d 1015, 1018 (C.C.P.A.1967). And at the last injunctions re main always equitable remedies, to be issued when it would be equitable to do so although an award of money may be unjust. McLean v. Fleming, 96 U.S. 245, 253, 24 L Ed 828 (1877). Mere delay or acquiescence cannot defeat the remedy by injunction in support of the legal right, unless it has been continued so long and under such circum stances as to defeat the right itself. . Where consent bv the owner to the use of his trademark by another is to be inferred from his knowledge and silence merely, ‘ it lasts no longer than the silence from which it springs; it is, in reality, no more than a revocable license.’ (citations omitted) Menendez v. Holt, 128 U.S. 514, 523-24, 9 S.Ct. 143, 144-145, 32 L.Ed. 526 (1888). 32a The Source of Authorization ̂ characterizations of The parties begin with alte ^ ^ interest of some plaintiff’s ‘ ‘ grant’ to def d t ^ plaintifff quoting its description in the th a f the words “ grant permission 1939 resolution, argnes that tne ^ defendant n0 more for the use of initials J Qn a particular relation- than a revocable’ h<* “ ® .. hip ended, plaintiff was en- ship, and when the rela n a a C P says that the titled to rescind the ^ , &nd affiliate, and the gen- relationship was one P . t disengages itself from eral rule is that when an the parent’s its parent, it r e b ^ e s any g ^ parental name name, no matter th*• l a n g u a g e ^ philadelphia Jay- was acquired, Û l f r]rV)S\)- United States Jaycees v. eees, 639 F.2d 134 (3d CirAWl. L' f ce, 354 F.S«PP- Son Francisco Junior Chambe F.Supp. T l n f l Vnitm V.M.W. «. 435 F.2d 421 1262 (D.D.C.1969), vacat'd S R m 91 a .Ct 1372, (D-C.Cir.1970), cert, deme , only that it was for- 28 L.Ed.2d 645 (1971), e\en rffanization. Grand Lodge ruerlv affiliated with the parent g Elfcs of the improved, Benevolent and F.2d 46 % & * ' * * ■ ™ 81 s c t 3 " n « - — i s r "'Strair&TC». S , i A l 9 » ) . the LDF . « « « tie Un,ltatiM,” ahvavs connoted, in the a h een -o f ™ right. . . " the conveyance of an " ™U,tion one of irrevocahle Id. at 810-11, making the d femlant relies, however, assignment. The case on w h ic h ^ interpretation arose in a commercial co \ . t ^ ^ the construction of of the word “ grant ^ enncluded that the docn- i S T j f t C ^ t ’ conduct considered as a whole mdi- 33a cated an intent to allow an indeterminable use of the trade mark “ Coca-Cola,” and that, to give it any other meaning would inevitably result in the demise of the business the parties had sought to establish by contract in the first place. Insofar as the case law is concerned, the relationship between plaintiff and defendant appears to be sui generis. It has characteristics of both the parent-affiliate and, as the LDF points out, even the parent-child relationship.2 (And never, the LDF argues, borrowing from the idiom of family law, has any court gone so far as to deny even the most unruly offspring its birthright to the patronym). It least resembles, however, the commercial transactions in which the case law is most favorable to the LDF. The Court concludes that it is unnecessary to assign the relationship a category to determine the effect to be given to the 1939 resolution, however, for it is possible to dis cern, from both the language and circumstances of the resolution alone, an intent to confer upon the LDF less than a right to use the initials in perpetuity. First, the resolution is found in the minutes of a board of directors meeting, a document whose primary function is to record the proceedings of the governing body of the organization and not to constitute the definitive expression of the ac tion being authorized. Second, the resolution also author izes the execution of “ whatever papers” might be neces sary to carrv it out, clearly contemplating that further papers might be needed to give effect to an idea the resolu tion merelv set in motion; thus, the use of the word grant cannot be presumed to have had the same precise mean ing for the secretary who took the resolution down as it would for the draftsman of, for example, a conveyance of land. Third, the resolution grants permission—not the 2 It could also be said to have aspects of the attorney-client rela tion in which the former is indisputably the servant at sufferance of the latter. 34a right-to use the initials, a usage which in common par- lance implies something of lesser order of finality and which can ordinarily he withdrawn Finally and pe most importantly, those members of the NA who undertook in October of 1939 to procrea e the LDJ saw themselves as engaged primarily in lawful tax av ance Had they envisioned the LDF in years ence potential competitor for contributions, not to mentron claim, they would have been less generous with their svmho to which so much meaning had already been given. The Court concludes that, irrespective of the' cation to be given the parties’ re ationship, the 1939j e s lotion was intended as a revocable license to use and not an irrevocable assignment of, the disputed initials. Acquiescence and Laches Defendant LDF submits that thei NAACP’s inordinate delav in commencing this action, during ; cfpnt.lv LDF has continued its use of the mitia s w n e cons‘ coup,ed°with a detrimental change of position ,n rehance thereon hv the one seeking to take advantage of the doc trine. And laches, that species of estoppel which f^fiw aU y involves the elapse of time alone, requires P^.l nredicate to its being successfully invoked. See 3 Lallma , The Law of Unfair Competition. Trademarks and Monop olies, $79.1 at 515 (3d Ed.1969). This record simply does not support a finding that the NAf c r t: “ “ A t o TlheLDF NAACP never capitulated on the point. ( nc ee , 35a has, since the mid-1960’s, anticipated the possibility that it might eventually have to disassociate itself altogether from plaintiff by including a disclaimer of any present relationship on its stationery). Given the ancestry of their relationship, the NAACP’s inaction is less consistent with acquiescence freely accorded than with a reluctance to an tagonize a onetime ally or to abort hopes of an eventual reconciliation by anything so divisive as a lawsuit. While it occasionally bars an award of damages, laches is rarely found a sufficient bar to an injunction in trade mark actions. See Menendez v. Holt, 128 U.S. 514, 9 S.Ct. 143, 32 L.Ed. 526 (1888); McLean v. Fleming, 96 U.S. 245, 24 L.Ed. 828 (1877); Indep. Nail d Packing Co. v. Strong hold Screw Products, Inc., 205 F.2d 921 (7th Cir.), cert, denied, 346 U.S. 886, 74 S.Ct. 138, 98 L.Ed. 391 (1953). Courts frequently tolerate long delays in bringing such suits, see e.g. Indep. Nail d Packing Co., 205 F.2d at 927; James Bur rough, Ltd. v. Sign of Beefeater, Inc., 572 F.2d 574 (7th Cir.1978), particularly if, as here, the parties are negotiating a settlement, Coca-Cola Co. v. Gemini Rising, Inc., 346 F.Supp. 1183, 1192 (E.D.N.Y.1972); Blaw-Knox Co. v. Siegerist, 300 F.Supp. 507, 157 U.S.P.Q. 36, 41-42 (E.D.Mo.1968) or are related. II.A. Friend d Co., Inc. v. Friend d Co., 276 F.Supp. 707, 716 (C.D.Cal.1967), aff’d 416 F.2d 526 (9th Cir.1969), cert, denied, 397 U.S. 914, 90 S.Ct. 916, 25 L.Ed.2d 94 (1970). There is, moreover, no evidence to support a finding that the LDF has been prejudiced by the passage of time in its ability to recast its public identity in a form sans the initials. Tt has known for years that a reckoning could come at any time and elected to take its chance that the NAACP would not, even as a last and only resort, force the issue to the point of litigation. The Court concludes that plaintiff has not lost exclusive control of its initials by acquiescence or laches. 36a Confusion The one issue the LDF is unwilling to concede as being presented upon altogether undisputed facts is the extent of public confusion of the two organizations. Such instances of confusion as the record may show, it argues, are isolated or explainable on other grounds, and, most importantly, have been routinely corrected voluntarily by the parties out of mutual respect. The Court disagrees. The significant number of documented instances of confusion submitt by plaintiff, often on the part of those who might be ex pected to know better, raises the inference that they have been repeated manyfold over the years in circumstances in which documentation of them has been lost or, mor likely still, they were never documented at all. Moreover, the standard for injunctive relief in trademark cases is not actual confusion in the past but the potential for confusion in the future, 15 U.S.C., * 1114(1), and evi dence of past confusion is not only unnecessary to plain tiff’s burden of proof, to the extent it is shown at all it s probative of the likelihood of its occurring again if the circumstances giving rise to it are no a ere . *■ ' trap, Inc. v. Foxtrap, Inc., 671 F.2d 636, 639-40 (D. . 1982). Manv public interest groups, in ironic emulation of the structure so successfully employed by plaintiff and de fendant in the past, use “ legal defense funds endowed with the parent organization’s name to conduct their ht -̂ gation. People assume that relations between two such f l i e s bearing virtually identical names ami commit d to the same goals are, at least, symbiot.c; to the public separate treasuries and internecine jealousies are matt of indifference. The Court finds that to permit the LDF t° go its own wav while retaining the NAACP initials is l.kely to resnlt in further public confusion, absent injunctive relief, and 37a defendant has submitted no evidence—as distinguished from argument—to suggest to the contrary. The Remedy It has been said that the essence of unfair competition in a common law trademark context is the misappropria tion of the labors and expenditures of another, Saratoga Vichy Spring Co., Inc. v. Lehman, 625 F.2d 1037, 1044 (2d Cir.1980), and that in an infringement proceeding looking to an injunction in which the basis of the defense is the passage of time, as with any principle of equity jurispru dence, the equities must be balanced. Id., at 1040. The LDF says, with justification, that there has been no misappropriation. The universal esteem in which the initials are held is due in significant measure to its dis tinguished record as a civil rights litigator.1 The LDF pre dicts that its ability to attract skilled advocates to continue the tradition will suffer if it must abandon the name in which its reputation was won. The NAACP responds that the LDF is, in essence, a “ law firm” (once its law firm) and that the names of law firms can and do change, while nevertheless retaining their reputations for good or ill among those who know about such things. And the NAACP proclaims its own investment in the name, over a con siderably longer period and, on more than a few tragic occasions, in more than time and money. 1 See, e.(j., NAACP v. Button, 371 U.S. 415, 421-22, 83 S.Ct. 328, 331-332, 9 L.Ed.2d 405 (1963) ; Bernard v. Gulf Oil Co., 619 F.2d 459, 470 (5th Cir.1980) (en banc), aff’d, 452 U.S. 89, 101 S.Ct. 2193, 68 L.Ed.2d 693 (1981) ; Northerns v. Board of Educ., 611 F.2d 624, 637 (6th Cir.1979), cert, denied, 447 U.S. 911, 100 S.Ct. 2999, 64 L.Ed.2d 862 (1980); N AACP Legal Defense and Educational Fund, Inc. v. Campbell, 504 F.Supp. 1365, 1368 (D. D.C.1981). 38a But the NAACP ultimately has a far greater stake in but tne heretofore borne the “ £;independence is now, however, / PrPafter If the - - p X m .lies s ez&rjzz*. which fo r ig lu a tT a m , imbued with meaningfor ^ b e f o r e the LDF came into being, its " lent - to aliow linked to the LDF for so long as he LDFi chooses to » it to he so, without, however, the ability to^ ^ ^ The Court concludes, therefore, that the lies clearly in plaintiff's favor, and ,Us, for the fore„o g reasons, this 28th day of March, 1983, r „d t™ tT s ad‘enied, and an inyuncHot. ^ " g ™ * defendant to take appropriate ac on to ame ^ ^ ^ P0? ‘ i Ĉ rr ^ P ” T n8eitsnn»me, publications, publicity, soUdtations and public representations and to refra.n from the use of any »ame, semce: mark logo, 0 ^ ^ ^ S L t U Z y b e t r t i l r deteZined to he .lust; and it is FURTHER ORDERED, that the pa.r«es shall 'snhm, after settled upon notice for hearing 39a APPENDIX C UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA Civil Action No. 82-1424 National A ssociation for the Advancement of Colored People, P la in tiff, v. N.A.A.C.P. Legal Defense and Educational F und, Inc., D efen d a n t. [Filed Jun 6 1983 Clerk, U.S. District Court District of Columbia] ORDER Upon consideration of defendant’s motion for recon sideration of the Decision and Order of March 28, 1983, plaintiff’s opposition thereto, and the oral argument of counsel thereon, it appearing to the Court that the addi tional facts shown by defendant’s supplemental affidavits in support of said motion would not alter the inferences drawn by the Court from those undisputed facts previ ously made of record herein even if deemed to be true, or the conclusions of law made thereon, it is, this 6th day of June, 1983, ORDERED, that the motion for reconsideration is de nied ; and it is FURTHER ORDERED, that final judgment be entered for plaintiff in accordance with Decision and Order of March 28, 1983. / s / T homas Penfield Jackson Thomas Penfield Jackson U.S. District Judge 40a a p p e n d ix d UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA Civil Action No. 82-1424 National A ssociation for the Advancement of Colored P eople, Plaintiff, v. N.A.A.C.P. Legal Defense and Educational F und, Inc., Defendant. [Filed Jun 6 1983 Clerk, U.S. District Court District of Columbia] JUDGMENT For the reasons set forth in the Court's Decision and Order of March 28, 1983, herein, in accordance with bed. R. Civ. P. 58, it is, this 6th day of .June, 1983, ORDERED, that on a date not more than six (6) months from the later of the date of this Judgment or the con clusion of appellate proceedings herein, if any, defenda N A A C P Legal Defense and Educational Fund, Inc., its officers, directors, employees and agents, and all others in act ve concert or participation with them, shall cease and desist from using the initials “ NAACP” . . defend.” s name, publications, publicity, solicitations and other public representations; shall cause its certificate of incorPor^ tion, bv-laws, and all other corporate documents to be amended to eliminate the use of or reference to the initials “ NAACP” in anv name or title by which it shall c e ermi to be known; and shall refrain from the use of any name service mark, logo or initials confusingly similar to those of the plaintiff NAACP; and it is 41a FURTHER ORDERED, that notwithstanding any other provision of this Judgment, defendant shall retain the right to identify itself as “ formerly N.A.A.C.P. Legal Defense Fund, Inc.” (or “ formerly N.A.A.C.P. Legal Defense and Educational Fund Inc.” ) for a period of two (2) years from the date aforesaid. / s / T h o m a s P e n fie ld J ac k so n Thomas Penfield Jackson U.S. District Judge APPENDIX E UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT 42a September Term, 1984 Civil Action No. 82-01424 No. 83-1719 National A ssociation for the A dvancement of Colored. P eople, aka NAACP v. N.A.A.C.P. Legal Defense & E ducational F und, Inc., Appellant Appeal from the United States District Court for the District of Columbia. Before: Mikva and Bork' Circuit Judges, and Bazelon, Senior Circuit Judge. [United States Court of Appeals for the District of Colum bia Circuit Filed Jan 25 1985 George A. Fisher Clerk] JUDGMENT This cause came on to be heard on the record on appeal from the United States District Court for the District of Columbia, and was argued by counsel. On consideration thereof It is ordered and adjudged by this Court that the judgment of the District Court appea e 43a from in this cause is hereby reversed and this case Is re manded with directions that the suit be dismissed, all in accordance with the Opinion for the Court filed herein this date. Per Curiam For The Court / s / George A. F isher George A. Fisher Clerk Date: January 25, 1985 Opinion for the Court filed by Senior Circuit Judge Bazelon.