§ 397. Unlawful use of name or other identification of certain non-profit organizations. 1. No person, firm, association or corporation shall use, for advertising purposes or for purposes of trade, the name, symbol, device or other identification of any non-profit corporation, association, society or organization organized exclusively for religious, benevolent, humane, charitable, educational, hospital, patriotic, fraternal or veterans purposes or to promote the study or the advancement of the arts or sciences or to sustain, encourage or promote the musical or performing arts or to inform or educate the consumer by publishing and disseminating the results of tests and evaluations of goods and services, without having first obtained the written consent of such non-profit corporation, association, society or organization. Any violation of this section shall be a misdemeanor.

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Terms Used In N.Y. General Business Law 397

  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts

2. Subdivision one of this act shall not apply to the use by any person, firm, association or corporation of any trade mark, trade name or other trade identification which was adopted and regularly used by such person, firm, association or corporation, prior to the enactment of this act if the use of such trade mark, trade name or other trade identification was and is otherwise lawful but for the provisions of subdivision one of this act. Nothing contained in this act shall be construed so as to prohibit the use of any name, symbol, device or other identification when used solely for purposes of historical reference or description of geographical location only and not as a trade mark or trade name or for purposes of trade identification.

3. Whenever there shall be an actual or threatened violation of subdivision one of this section, the corporation, association, society or organization affected thereby may maintain an equitable action in the supreme court of this state to prevent and restrain said actual or threatened violation; and may also sue and recover damages for any injuries sustained by reason of any such violation, and if the defendant shall have knowingly violated subdivision one of this section, the jury, in its discretion may award exemplary damages.

4. Nothing contained in this act shall deprive any corporation, association, society or organization entitled to invoke the remedies provided by this act of any rights or remedies existing at common law or under the penal law or any other law of this state.