Archive for the ‘Trademark’ Category

Ask Dr. Copyright…

Friday, September 28th, 2012
copyright question

Dear Doc:

I have heard that there is something called “trade dress” that can be legally protected, and that it’s different from trade mark and also from design patent and copyright?  What gives?

Signed,

Sam Sung

Dear Sam:

Trade dress is pretty broadly defined as the visual impression created by the sum of all elements used in packaging or presenting a good or service for sale, and which gives the product or service a distinctive and recognizable appearance to the purchaser. Some trade dress may even become so associated with the product and its producer that it acquires “secondary meaning” entitling it to registration as a trade mark.

You’ve no-doubt seen trade dress in stores: as you wander down the detergent aisle, if you see a bright orange box or bottle, you probably think, “TIDE”. If you see ceramic items that are light blue with white accents, you may think, “Wedgewood”, and if you see a soda bottle with a narrow “wasp waist” you may recognize it as Coca Cola. Each of these is the products’ trade dress.

In order to be protected as trade dress, the elements must be recognizable as denoting the product or its source, and must be non-functional (that is, aesthetic).  Thus, the color blue for certain little pills for men is protected, as is the shape and appearance of the Ferrari 365 GTB/4 sports car.

In a very recent case, Apple, Inc. prevailed over a certain Korean electronics company when the jury found that Apple’s iPhone trade dress had been infringed. The amount of damages awarded was many hundreds of millions of dollars. The Korean company has just filed a motion to have that verdict overturned by the judge. The motion says that the overall appearance of the Apple iPhone and its packaging is not trade dress because its function is simply to be beautiful. They claimed that the iPhone was thus unprotectable because it has “aesthetic functionality”.  They cited testimony that customers, “lust after the [iPhone] because it’s so gorgeous.”

Where will this end up? Who knows? Certainly not the Doc!  But one thing is certain…if trade dress, like design patents and copyrights, protects things that are nonfunctional, and a court finds that being beautiful is a function, then the Doc is going to have to go back to his college aesthetics professor and demand his money back!

– Lawrence Husick, Esq.

A Book By Any Other Title May not be Registrable…

Tuesday, July 31st, 2012

book From time to time, we receive inquiries from authors about registering book titles as trademarks.  Sounds like a good idea but can it be done?  The short answer is “no,” trademark law does not permit registration of a work’s title.  But, as with many legal rules, there are exceptions.

The complete title of a work may be registered as a trademark if the work’s title is used on at least two different creative works thereby establishing the title as a trademark for a series of works.  Children’s book titles are commonly registered as a series of works.  For example, Two Cool Doods, The Little Green School, Monster Catchers, and many others.  The trademark applicant must exercise care in providing evidence of a series.  If only the format of the work has changed, such as publishing a written and audio version of the work, the applicant will not persuade the trademark examiner that the work is a series. Similarly, the title of an abridged or unabridged version of the work does not establish a series; nor does use of the title on posters, mugs, bags or t-shirts.

An author may also register a portion of a book title as a trademark if he or she can establish that:

  • the portion of the title to be registered must create a separate commercial impression apart from the complete title;
  • the title is used on a series of works; and
  • the title is promoted or recognized as a mark for the series.

The Trademark Office states that the applicant has a heavy burden in establishing that the title is used in a series.  The mere use of the same words in more than one book title is insufficient proof.  Instead, the applicant must establish that the public perceives the title to be a mark for a series.

So, you can see that there are strategies for registering a book title as a trademark but the process is tricky.  If you’ve been thinking about registering a book title, we can help determine the appropriate application strategy.

– Adam G. Garson, Esq.

Trade Dress: Where Patents and Trademarks Converge

Friday, June 29th, 2012

Chevron trade dressTrademarks provide important intellectual property protection to businesses and to their products. Trademarks identify the source or origin of goods or services. A related sub-concept of trademarks that also provides broad intellectual property protection to a business is the concept of trade dress.

Trade dress protects a product’s unique design, look and feel. It covers the overall image generated by the product or package. Trade dress comprises traits such as shape, package, size, color, color combination, texture, and graphics. In general, trade dress protects the image of a product. For example, a bucket full of chicken is the trade dress for KFC, the sensual shape of a Coca-Cola bottle is the trade dress of the trademark Coca-Cola, a sophisticated blue box is the trade dress of Tiffany, a yellow and red color combination package is the trade dress of Kodak films.

Trade dress protection may also be available for products, packaging, or business forms and stationery for which a design patent, utility patent or copyright protection may not be available after its expiration. If these other types of protection were never obtained, then trade dress rights may nonetheless be available. For example, it is possible to concurrently protect a design with both trade dress rights and a design patent. Also, trade dress protection is available to protect a design after a design patent has expired.

To obtain trade dress protection for product configurations, it is required to show that the design of the product at issue is inherently distinctive, or has acquired secondary meaning. However, trade dress protection cannot be obtained for a product functional in nature if the product is utility patent protected. Furthermore, to obtain protection of a product under trade dress, the concept protected must be non-functional in nature. For example, if a disputed product configuration is part of a claim in a utility patent, and the configuration is descriptive of the inventive concept, then the doctrine of trade dress which is necessarily functional in nature is not available until the patent for that product has expired and has entered the public domain.

In one of the most important trade dress cases to date, the Supreme Court, in Two Pesos, Inc. v. Taco Cabana, Inc.,(505 U.S. 763, 112 S.Ct. 2753 (1992), held protectable the trade dress of Taco Cabana’s restaurant, and described it as “a festive eating atmosphere having interior dining and patio areas decorated with artifacts, bright colors, paintings and murals. The patio includes interior and exterior areas with the interior patio capable of being sealed off from the outside patio by overhead doors; the stepped exterior of the building is a festive and vivid color scheme using top border paint and neon stripes. Bright awnings and umbrellas continue the theme”.

Feel free to drop us a line if you have a product, which may qualify for trade dress protection.

–Ash Tankha, Esq.

APPLE v SAMSUNG – Design Patent Law Moves Closer to Trademark Law

Thursday, May 31st, 2012

Home Design Patent A ‘design patent’ is a monopoly granted by the government to make, use and sell a product having a particular appearance.  Design patents protect how a product looks, not what it does.  A person who copies a product protected by a patent, including a product protected by a design patent, will be ordered to stop infringing by a court only if the patent owner can demonstrate that the patent owner will suffer ‘irreparable harm’ due to the infringement that cannot be compensated by money damages.  Such a court ‘injunction’ against an infringer is difficult to obtain under this standard.

On the other hand, a ‘trademark’ indicates the source of a particular type of goods.  If a trademark becomes ‘famous’ (for example, Coca-Cola®) then a court will order a trademark infringer not to use the famous trademark for other types of goods if the use will ‘dilute’ the famous trademark; that is, if the use will reduce the stature of the famous trademark in the eyes of the public.  It is easier to obtain an injunction stopping infringement under the famous trademark standard than under the patent standard.

Apple and Samsung are in a worldwide battle over the alleged copying of Apple’s patented smartphone and tablet computer designs by Samsung.  In a case before the Federal Circuit Court of Appeals, Apple argued that Samsung should be enjoined from selling its Galaxy smartphones because Samsung’s copying of the patented Apple design amounts to ‘design dilution.’   The argument is that Apple is ‘irreparably harmed’ for purposes of a preliminary injunction because Samsung’s product will ‘dilute’ the Apple design in the eyes of the public.  This argument blends the trademark concept of dilution into patent law.  The trial court rejected the argument for lack of evidence.  The Federal Circuit affirmed the trial court’s conclusion that the argument was not supported by evidence, but concluded that it “would have been improper” to reject the argument outright.   The Federal Circuit Court’s decision leaves Apple free to renew the argument with more evidence when the case comes to trial.

The Apple v Samsung case blurs the distinction between trademark and design patent law and potentially will ease the burden of a design patent owner in stopping an infringer.

– Robert Yarbrough, Esq.

IPad Trademark Disputes Continue to Haunt Apple

Wednesday, February 29th, 2012

Trademark lawyers often enjoy following trademark disputes involving  famous trademarks. If you haven’t heard about Apple Computer’s court battle over ownership rights for the “iPad” trademark in China, read on.

The Chinese owner of the “iPad” trademark is not Apple but  a beleaguered video display manufacturer known as Proview.  In 2001, Proview obtained rights to the “iPad” trademark in China around the time it was developing a so-called Internet Personal Access Device (“IPAD acronym”), which only saw the brief light of day when it proved to be a market failure.  Later, in 2008, Proview fell into rough financial times when the economy went south along with two of its major customers, Polaroid and Circuit City, who filed for bankruptcy.

In 2009  Apple was developing its own iPad device so it created a company in the United Kingdom called “IP Application Development Ltd.,”  (yet another IPAD acronym)  established for the singular purpose of acquiring trademark rights to “iPad”.  According to the Chinese Court, a Proview subsidiary in Taiwan sold the “iPad” trademark to Apple’s UK company for $55,000.

Apple then sued Proview in China for wrongfully using the “iPad” trademark.  Proview fought back and in late 2011, the court issued its opinion, which rejected Apple’s lawsuit concluding that although Apple purchased rights to “iPad” there was no formal transfer of trademark rights.  Apple, according to the court, purchased the trademark from Proview’s subsidiary, not from Proview itself, which was unrepresented during the negotiations between Apple and the Taiwanese company.  Apple is appealing the decision.

It was widely reported that Proview would take its dispute to the United States and on February 24th, theWall Street Journal reported that it had filed a lawsuit on February 17th  in the Superior Court of the State of California in Santa Clara County claiming that Apple had committed fraud when it used Application Development Ltd., to purchase the iPad trademark from Proview.  What Proview hopes to gain by suing Apple on its home turf is unclear but Apple may be eager to settle to avoid disruption of its Chinese supply chains or sales to Chinese consumers.  It appears that Proview’s comeback strategy is built upon leveraging a lawsuit against the most famous technology company in the world.   Reuters news service reports that “[a] Shanghai court this week threw out Proview’s request to halt iPad sales in the city. But the outcome of the broader dispute hinges on a higher court in Guangdong, which earlier ruled in Proview’s favour.”

Apple, of course, maintains Proview refuses to honor its agreement. Undoubtedly, Apple has enough cash to make this story go away and we suspect that’s just what will happen.  The story also reinforces the well established opinion that enforcing intellectual property ownership rights in China may be problematical.

–Adam G. Garson, Esq.

Cameras and Bicycles — Say Cheez!

Tuesday, January 31st, 2012

Kodak adertisementYou’ve probably heard about the bankruptcy of Eastman Kodak Company.  Yes, everyone sees the irony in a once successful company famous for its technical innovations failing to keep pace with the rapid speed of digital technology.  Should we write off Kodak and leave it to the dry and dusty bins of history — as one of our partners puts it (see below) — or should we await to see what emerges from black box of bankruptcy?  We’ll leave that question to bankruptcy lawyers.  For now, let’s briefly consider the impact of Eastman Kodak upon trademark law.

Intellectual property lawyers are fond of pointing out that the KODAK trademark has assumed almost iconic proportions as the epitome of trademark fame and strength.  One court noted that “The Kodak trademark is perhaps one of the strongest and most distinctive trademarks in this country, if not the world.”  Indeed, KODAK is listed in the leading treatise of trademark law by J. Thomas McCarthy as one of just a handful of fanciful — hence strong — marks joining ranks with the likes of CLOROX, EXXON, and POLAROID.  Did you realize that the fame of the KODAK mark has its roots in the 19th century?

In 1890, Eastman defended its KODAK brand before the Patents Court of the United Kingdom in the case of  Eastman Photographic Materials Company, v. John Griffiths Cycle Corporation, Limited (15 RPC 105).  This was a period when steam was king, the automobile was in its infancy, and wireless telegraphy was high-tech. Yet, the facts of the case have a modern ring. Here’s what happened:

For many years, Eastman had been using the registered trademark “Kodak” to identify their goods, especially cameras.  One of its products was a specialty camera and attachment hardware for bicyclists. The product was advertised by Eastman as “Bicycle Kodaks.” During the same period, Eastman Company owned shares in a limited company called the “Kodak Company, Limited,” which had yet to begin business but showed commitment to its mark.  In the previous year, 1897, the John Griffiths Cycle Corporation (“JG”) applied for and obtained registration of the word “Kodak” as a trademark identifying bicycles and other vehicles.  It also registered a new company called “the Kodak Cycle Company, Limited” and commenced to advertise “Kodak Cycles”.  Although Eastman’s KODAK mark was registered it was not registered to identify bicycles.  Displeased with these developments, Eastman sued JG and the Kodak Cycle Company demanding that they refrain from carrying on business under the name Kodak Cycle Company, passing off their goods as the goods of Eastman, and infringing Eastman’s trademarks.

The court held that KODAK had become identified with Eastman and its goods, and that there was a close connection between the bicycle and photographic trades.  The court further held JG’s registration had been obtained by fraud, that the defendants were trying to get the benefit of the reputation of the Eastman company, and that the trademark must be “expunged” as being calculated to deceive. Finally, of course, the court imposed an injunction on the defendants to stop the infringing conduct.

So, if you didn’t know that there is a close connection between bicycles and cameras, now you do.  Let’s hope that the Eastman Kodak Company can pull itself together and reclaim its lost grandeur.

– Adam G. Garson, Esq.

French Fries Sue Crabs…What Next?

Saturday, December 31st, 2011

Chickie Pete versus fries

The owner of the popular Chickie and Pete’s (CP) restaurant chain, Pete Ciarrocchi, is on a tear trying to maintain his monopoly over the use of “crab fries,” a seasoned french fry product, which Philadelphia Magazine claims Ciarrocchi invented.  Not so says a handful of restaurants in the Maryland eastern shore who have orchestrated a grass roots movement to save the crab fry complete with, of course, a Facebook page and blog.  Some lawyers  claim that local use of the term “Maryland Crab Fries” and “Crabby Fries” is not similar to CP’s mark, is not likely to cause confusion outside of CP’s market and CP’s mark is just too generic to deserve registration.  Against this backdrop,  CP is defending its trademark rights and has sued the parent organization of certain Maryland and North Carolina restaurants — New York J & P Pizza — alleging  trademark infringement, unfair competition, trademark dilution and other causes of action.

If you’re a regular reader of our newsletter, you will understand that trademark owners have a legal duty to defend their trademarks.   In the process, however, a trademark owner can lose its rights if the alleged infringer is able to prove in court that the mark is generic or, put another way, lacks distinctiveness.  If every restaurant in Maryland and the eastern seaboard sold “crab fries”, for example, there would be nothing distinctive of CP’s use of the same phrase.  We’re not experts on the use of the “crab fries” mark but typically in these situations, business considerations will prevail over legal right.  CP has  successfully defended its trademark for years by simply threatening to sue alleged infringers.  It’s very expensive to defend a trademark infringement action.  Lawyers must be hired, court costs paid, and someone has to foot the bill for the business disruption and distraction caused by the lawsuit.  If you’re a small business owner, like many of the restaurants in Maryland’s shore areas, its hard to justify the expense and its far easier (and cheaper) to change the menu.  Unless CP’s suit against New York J & P Pizza has a different bottom line equation — and it might — we predict a quick settlement.

– Adam G. Garson, Esq.

Trademark Infringement Cases on the Rise

Wednesday, November 30th, 2011

ExclamationTrademark owners are now litigating more than ever to preserve their brand names and logos. They are taking aggressive stands with much success.  Here are some recent examples.

Courts are enforcing the law of trademark infringement and trademark dilution to prevent unfair competition, a commercial tort designed to promote fair and honest competition. To preclude an action for trademark infringement, the mark, logo or design must not be “confusingly similar” to an existing mark, logo or design.  A trademark is “confusingly similar” if it is likely to cause confusion amongst consumers as to the source of the product or service.

For example, In May 2011, Apple brought an infringement and dilution action against defendant Fei Lik Lam, a/k/a Phillip Lam for using the name whiteiphone4now.com. Apple’s complaint states “The Apple Logo and iPhone Trademark are distinctive, iconic and famous trademarks that are instantly recognized as indicating products and services created, designed, manufactured, produced and/or provided by Apple.”  The court eventually found Lam’s domain name to be  confusingly similar to Apple’s iphone in the sense that consumers may be confused that whiteiphone4now.com is part of Apple’s line of products.

In 2008, Adidas filed an infringement case against Payless Shoes Source; a subsidiary of Collective Brands Inc. The Federal Court found Payless’ sneakers with 2 and four parallel stripes infringed Adidas’ sneakers and assessed Payless damages of $304.6 million. The Payless victory empowered Adidas to sue any sneaker company that sells sneakers bearing two, three or four stripes.  Indeed, federal court records show that Adidas has approximately 325 pending infringement cases in the United States and approximately 45 settlement agreements. Most recently, in March 2011, Adidas sued small footwear manufacturing company Radii in federal court in Oregon.

In another infringement case, Facebook Inc., sued Teachbook.com LLC for trademark infringement for its use of the “Teachbook” domain name. In its defense, Teachbook argued that the word “book” was generic and could not be claimed by Facebook as a trademark. The court was not persuaded and on Oct 26, 2011, it refused to dismiss Facebook’s complaint.

Similarly, businesses that dilute a famous mark may also be prevented from using their trademark. Trademark dilution refers to the concept where a trademark that is confusingly similar to a famous mark may not be used in a way that will lessen the uniqueness of the famous mark even though it may brand an entirely different product.  That was one of the causes of action asserted by Apple in its case against whiteiphone4now.com discussed above.  Foreign trademark law of dilution is very similar to that of the United States.  For example, in November 2011, Lodha Garments in India was using the trademark ‘Cadbeery’. Cadbury UK Ltd. and the Indian subsidiary filed a suit in the Delhi High Court against Lodha Garments on the grounds of “adopting a deceptively identical name to promote its product.” The Delhi High Court granted an injunction against Lodha Garments.  Here, the garment factory in India was not producing chocolates so as to directly infringe Cadbury’s mark. However, they were diluting the famous mark ‘Cadbury’, renowned chocolate manufacturers, by using a similar name for garments.

New and start up businesses need to be wary of their choice of trademarks. A state and federal clearance search of the proposed mark is essential and consultation with a trademark attorney should be a high priority given the current climate and increase in trademark litigation.

– Ash Tankha, Esq.

But Mom, Why is the Spider-Man Costume So Expensive?

Monday, October 31st, 2011
Rocky & Bullwinkle

Rocky & Bullwinkle

As the days grow shorter, it seems that the shorter people  (we call them “kids”) start to want costumes and large bags the size of small dump trucks into which  kindly neighbors intent on supporting the local dental association will deposit “treats.”  You may have noticed that some costumes (for example, independent small-business marine entrepreneurs, native American leaders, Wiccans, and the like – political correctness is very important to us attorneys) are relatively inexpensive, while others such as Spider-Man®, Batman®, Superman®, any Teenage Mutant Ninja Turtle®, Super Mario®, and Mickey Mouse® to name but a few, cost amounts that would bankrupt some small African nations.  Why, you may wonder, is there this price disparity? (Or, if you’re like most in suburbia, you just pay it and hope that for a brief and shining moment, the tykes will be happy and quiet in the back of the SUV.)

Most of the price difference between generic costumes and the fancy recognizable characters may be attributed to what intellectual property lawyers (you didn’t think that this was just an article about Halloween, did you?) call “BRAND VALUE”.  In other words, the companies that own the copyrights and trademarks in everything from Scooby Doo® to Sponge Bob Squarepants® (and no, that is NOT a cute nickname for our law partner, Bob Yarbrough…) charge licensing fees to the costume manufacturers for the privilege of using their famous characters’ appearances.  After all, these corporations have spent a great deal of time, money and effort getting your kids to instantly recognize and imitate the characters (just ask a six year old what Squidwardâ„¢ says, or which TransFormer® is the best.)

As a practical matter, if you make your own costumes, you don’t have to worry about paying royalties to the owners of the intellectual property.  Beware, however, of posting that cute video showing your adorable home-made Buzz Lightyear® costume on YouTube…the trademark police may just get annoyed.  Got an equally obtuse concern about intellectual property? Give the attorneys at LW&H a shout (but try not to use a catch-phrase of a famous cartoon character…those are registered too.)

– Lawrence A. Husick, Esq.

Trademark Deception and Misdescription

Monday, October 31st, 2011

spooky cat by Tim1965Did you know that a trademark may be refused registration because it is deceptive? Yes, indeed, the “deceptively misdescriptive” doctrine is an interesting — if not tongue twisting — principle of trademark law, which occasionally rears its head. Here’s how it works in a real life case. Retail Brand Alliance, Inc. (i.e., Brooks Brothers) sought to register the trademark BLACK FLEECE  for apparel such as belts, blouses, boots, including vests and — this is important –  “not made of fleece fabric.”  The trademark examiner refused registration of mark under section 2(e)(1) of the Trademark Act on grounds that the applicant’s mark is deceptively misdescriptive of its goods.  Brooks Brothers appealed the decision to the Trademark Trial and Appeal Board (TTAB).

On appeal, Brooks Brothers acknowledged that because its description included goods “not made of fleece fabric” that the term “black fleece” is facially misdescriptive of apparel that is not made of black fleece. Nonetheless, Brook Brothers argued that consumers are not likely to believe the facial misrepresentation.   At this point, you might be saying to yourself what the heck is going on?  The gist of the Brook’s Brother’s position was that the term “black fleece” was so well known among its customers that they understand that the term does not necessarily refer to clothing made of black fleece.  This is referred to as “secondary meaning,” a subject we have written about several times in this newsletter.

The TTAB did not buy the argument.  Here is its analysis. A trademark may be merely descriptive of goods or services if it conveys an immediate idea of an ingredient, quality, characteristic, feature, function, purpose or use of the goods or services. Whether the term is merely descriptive is determined not in the abstract, but in relation to the goods or services at issue, the context in which mark is being used, and the possible significance of the term to the average purchaser of the goods or services.  According to the TTAB, it is well-settled that “the question is not whether someone presented with only the mark could guess what the goods or services are. Rather, the question is whether someone who knows what the goods or services are will understand the mark to convey information about them.”  So, if a mark conveys an idea or information that is false, even if plausible, then it is “deceptively misdescriptive and unregisterable under trademark law.”

The TTAB applied a two-part test to determine deceptive misdescription:  First, it asked does the mark misdescribe goods or services to which it applies? And, second, if so, would consumers likely believe this description? The TTAB held that “BLACK FLEECE clearly describes a type of clothing, and applicant’s identification of goods states that its clothing is not of that type” thus satisfying part one of the test.  As to part two of the test, the TTAB held that Brooks Brother’s clothing is available not only to discerning customers who may understand the brand, as Brook Brothers argued, but to everyone else, including people buying from catalogues and online sources who could not examine the goods.

Keep in mind that had Brooks Brothers proven that its deceptively misdescriptive mark had acquired secondary meaning, it could have overcome the objections of the TTAB. The evidence on this score, however, was weak.  The lesson here is that choosing an appropriate trademark requires more than just picking the “cool” or fashionable sounding term, it also requires an understanding of the technicalities of trademark law.

– Adam G. Garson, Esq.