Bemco Mattress Co. v. Southeast Bedding Co.

Cooper, Judge.

Appellants are Stuart Industries, Inc. (“Stuart”), its subsidiary, Bemco Mattress Company (“Bemco”), and an officer of Bemco. Appellee is Southeast Bedding Company (“Southeast”). Stuart and Southeast were awarded franchises from Bemco Associates, Inc., giving them the right to manufacture and sell bedding products bearing the Bemco trademark. Southeast manufactures and sells exclusively under the Bemco label, but Stuart, which has its own registered trademark, manufactures and sells under both the Bemco and Stuart labels.

Southeast purchased the assets of Bemco and entered into…