## Facts

- Lone Ranger, Inc. produced and licensed “The Lone Ranger” radio program, featuring a masked cowboy hero who rode a white horse named “Silver” and used the distinctive call “Hi, yo, Silver.”
- The program was widely broadcast, particularly popular with children, and supported related licensing, including a “Lone Ranger” comic strip, merchandise, and a large children’s club.
- Lee Powell previously played the Lone Ranger in a licensed 1937 motion picture.
- Powell later contracted with O.C. Cox to appear in Cox’s circus performing as the Lone Ranger, including riding masked on a white horse and using the “Hi, yo, Silver” call.
- The circus advertisements prominently featured “Lone Ranger” and described Powell as the “original” Lone Ranger or “Lone Ranger in person,” with any “talking picture” qualifiers printed less conspicuously.
- The advertising targeted children and tended to create the impression that the circus act was the same Lone Ranger associated with the radio program.
- Lone Ranger, Inc. sued for damages and an injunction alleging copyright infringement and unfair competition; the district court entered judgment for defendants.

## Issues

1. Whether using the Lone Ranger name, identifying features, and advertising suggesting the radio character’s “in person” appearance constituted unfair competition by misleading the public and appropriating plaintiff’s goodwill.
2. Whether defendants’ performances and advertising infringed plaintiff’s copyrights in radio scripts and related material.

## Decision

- The Fourth Circuit reversed the judgment for defendants and remanded.
- The court held defendants committed unfair competition by presenting and advertising Powell as the “Lone Ranger” in a manner likely to mislead the public, especially children, into believing an association with or authorization by the radio program’s producer.
- The court directed that appropriate injunctive relief be granted to prevent the misleading use.

## Legal Principles

- Unfair competition includes deceptive marketing that is likely to cause confusion as to sponsorship, approval, or connection, including when built around a well-known fictional character and its identifying features.
- A party that has developed goodwill in a distinctive character may obtain injunctive relief against another’s use of the character’s name and recognizable elements where the overall presentation tends to misrepresent affiliation.
- Disclaimers or qualifying language do not avoid liability when the dominant presentation and context still create a misleading impression for the relevant audience, including children.

## Conclusion

The Fourth Circuit held that defendants’ circus performances and advertising traded on the goodwill of the Lone Ranger character and were likely to mislead consumers into believing the act was authorized or connected to the radio program, constituting unfair competition and warranting injunctive relief.


Lone Ranger, Inc. v. Cox, 124 F.2d 650 (4th Cir. 1942)