System 99 v. System 101

This is an appeal by the plaintiff and appellant, System 99, a California corporation, from a preliminary injunction issued by the Superior Court of the State of California for the County of Los Angeles, restraining defendant and respondent, System 101, a California corporation, from using the word “System” except in conjunction with at least one other word.

Facts

In 1964, System 99 adopted a company logo consisting of a “99” on a highway shield. In 1967, the corporate name was changed to System 99, 1 and that name has been used exclusively from that date to the present time. The combination of the logo type and the name “System 99” is shown on advertising pieces, rate cards and other literature, and considerable money has been spent in promoting the name and service mark. System 99 performs trucking services along the west coast, and particularly Highway 99, but now also uses Highway 101 along with other major highways.

Solvang Freight Lines, Inc., was incorporated in 1967, at which time it performed trucking services primarily on U. S. Highway 101 and did not directly compete with System 99. On June 14, 1971, said corporation *172 amended its articles of…