This section contains the nature of the case and procedural background.

Berlitz (P) sued Everest House (D) for unfair competition and trademark dilution. In 1974, the court recognized that Charles Berlitz could not identify himself as author of language materials unless he made it clear that he was not connected with P. The disclaimer that was put on D's language products was deemed sufficient for that purpose. That judgment was affirmed on appeal. Charles then published a new Step by Step series of language books and was sued again by the same plaintiffs. D plead collateral estoppel and moved for summary judgment; it was granted. P appealed.

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