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
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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 December 05, 2025.
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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.