IPad Trademark Disputes Continue to Haunt Apple

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.

Stopping a Patent

January 31st, 2012

policeConsider the following situation:  you learn that your competitor has a pending U.S. patent application for a product that you make.  Any resulting patent could be disastrous for your company.  What can you do to stop or limit your competitor’s application?

The PTO has proposed a new rule that would allow you to notify your competitor’s patent examiner about prior art patents, published patent applications and other printed publications.  Most important, you can (and must) present argument to the examiner as to why each item of prior art is  important to the application.  The new rule will implement 35 U.S.C. 122(e), which is part of the ‘America Invents Act.’   This section of the Act will go into effect on September 16, 2012.

The PTO refers to prior art submitted under the rule as ‘third-party preissuance submissions.’  The ‘third-party preissuance submissions’ rule is a part of a larger effort in the Act to allow opportunities for persons to challenge patents outside of a courtroom.

Time limits apply.  You must act before the examiner issues the first PTO office action rejecting a claim or allowing all claims.   Where the PTO has acted very quickly on the application but has not yet allowed all pending claims, you have six months after the application is published by the PTO.  Modest fees apply, but are waived if you cite three or fewer items of prior art.

Concerned about revealing your identity?  The ‘third-party preissuance submission’ can be anonymous.

How will the new rule affect potential infringers and inventors?  Wealthy potential infringers can choose to forego ‘preissuance submissions’ and hold back prior art for use in court later on.  Potential infringers having more modest means may choose a ‘preissuance submission’ as a cost-effective way to limit eventual damage and to gain certainty.  For the inventor, a ‘preissuance submission’ will be annoying, but will strengthen the patent by bringing relevant prior art to the examiner’s attention earlier, reducing the need for a later reissuance or re-examination.  A ‘preissuance submission’ also will alert the inventor to the presence of a worried competitor, which may indicate that the invention and hence the eventual patent are valuable and worthy of investment.

The proposed rules are open for public comment until March 5, 2012.

– Robert Yarbrough, Esq.

Cameras and Bicycles — Say Cheez!

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.

A Tale of (More Than) Two Brothers

January 31st, 2012

Marx BrothersHistory, though sometimes a dry and dusty exercise, may occasionally teach important lessons in trademark law, and in common sense (a quality often found lacking in trademark attorneys).  Case in point: the dispute between Warner Bros. movie studio and the Marx Brothers, over the film “A Night in Casablanca”.

Our story opens in 1947.  Groucho and his famous siblings are preparing to make “A Night in Casablanca”.  Wanting to generate publicity for the upcoming film, the Marx Brothers spread a story that Warner Bros. objected to the use of the term “Casablanca” through a few columnists.  Someone at Warner Bros. took the bait, and wrote a letter to Groucho in typical lawyerly fashion.  Groucho Marx chose to respond himself, rather than allowing his attorneys to speak for him (not a course that we at LWH usually recommend to our clients, none of whom are Groucho Marx.)*

Dear Warner Brothers:

Apparently there is more than one way of conquering a city and holding it as your own. For example, up to the time that we contemplated making this picture, I had no idea that the city of Casablanca belonged exclusively to Warner Brothers. However, it was only a few days after our announcement appeared that we received your long, ominous legal document warning us not to use the name Casablanca.

It seems that in 1471, Ferdinand Balboa Warner, your great-great-grandfather, while looking for a shortcut to the city of Burbank, had stumbled on the shores of Africa and, raising his alpenstock (which he later turned in for a hundred shares of the common), named it Casablanca.

I just don’t understand your attitude. Even if you plan on re-releasing your picture, I am sure that the average movie fan could learn in time to distinguish between Ingrid Bergman and Harpo. I don’t know whether I could, but I certainly would like to try.

You claim you own Casablanca and that no one else can use that name without your permission. What about “Warner Brothers”? Do you own that, too? You probably have the right to use the name Warner, but what about Brothers? Professionally, we were brothers long before you were. We were touring the sticks as The Marx Brothers when Vitaphone was still a gleam in the inventor’s eye, and even before us there had been other brothers — the Smith Brothers; the Brothers Karamazov; Dan Brothers, an outfielder with Detroit; and “Brother, Can You Spare a Dime?” (This was originally “Brothers, Can You Spare a Dime?” but this was spreading a dime pretty thin, so they threw out one brother, gave all the money to the other one and whittled it down to, “Brother, Can You Spare a Dime?”)

Now Jack, how about you? Do you maintain that yours is an original name? Well, it’s not. It was used long before you were born. Offhand, I can think of two Jacks — there was Jack of “Jack and the Beanstalk,” and Jack the Ripper, who cut quite a figure in his day.

As for you, Harry, you probably sign your checks, sure in the belief that you are the first Harry of all time and that all other Harrys are imposters. I can think of two Harrys that preceeded you. There was Lighthouse Harry of Revolutionary fame and a Harry Appelbaum who lived on the corner of 93rd Street and Lexington Avenue. Unfortunately, Appelbaum wasn’t too well known. The last I heard of him, he was selling neckties at Weber and Heilbroner.

Now about the Burbank studio. I believe this is what you brothers call your place. Old man Burbank is gone. Perhaps you remember him. He was a great man in a garden. His wife often said Luther had ten green thumbs. What a witty woman she must have been! Burbank was the wizard who crossed all those fruits and vegetables until he had the poor plants in such a confused and jittery condition that they could never decide whether to enter the dining room on the meat platter or the dessert dish.

This is pure conjecture, of course, but who knows — perhaps Burbank’s survivors aren’t too happy with the fact that a plant that grinds out pictures on a quota settled in their town, appropriated Burbank’s name and uses it as a front for their films. It is even possible that the Burbank family is prouder of the potato produced by the old man than they are of the fact that from your studio emerged “Casablanca” or even “Gold Diggers of 1931.”

This all seems to add up to a pretty bitter tirade, but I assure you it’s not meant to. I love Warners. Some of my best friends are Warner Brothers. It is even possible that I am doing you an injustice and that you, yourselves, know nothing at all about this dog-in-the-Wanger attitude. It wouldn’t surprise me at all to discover that the heads of your legal department are unaware of this absurd dispute, for I am acquainted with many of them and they are fine fellows with curly black hair, double-breasted suits and a love of their fellow man that out-Saroyans Saroyan.

I have a hunch that this attempt to prevent us from using the title is the brainchild of some ferret-faced shyster, serving a brief apprenticeship in your legal department. I know the type well — hot out of law school, hungry for success and too ambitious to follow the natural laws of promotion. This bar sinister probably needled your attorneys, most of whom are fine fellows with curly black hair, double-breasted suits, etc., into attempting to enjoin us. Well, he won’t get away with it! We’ll fight him to the highest court! No pasty-faced legal adventurer is going to cause bad blood between the Warners and the Marxes. We are all brothers under the skin and we’ll remain friends till the last reel of “A Night in Casablanca” goes tumbling over the spool.

Sincerely,

Groucho Marx

Not satisfied, the Warner’s attorneys requested a plot summary of the upcoming film from Groucho, who obliged…

Dear Warners:

There isn’t much I can tell you about the story. In it I play a Doctor of Divinity who ministers to the natives and, as a sideline, hawks can openers and pea jackets to the savages along the Gold Coast of Africa.

When I first meet Chico, he is working in a saloon, selling sponges to barflies who are unable to carry their liquor. Harpo is an Arabian caddie who lives in a small Grecian urn on the outskirts of the city.

As the picture opens, Porridge, a mealy-mouthed native girl, is sharpening some arrows for the hunt. Paul Hangover, our hero, is constantly lighting two cigarettes simultaneously. He apparently is unaware of the cigarette shortage.

There are many scenes of splendor and fierce antagonisms, and Color, an Abyssinian messenger boy, runs Riot. Riot, in case you have never been there, is a small night club on the edge of town.

There’s a lot more I could tell you, but I don’t want to spoil it for you. All of this has been okayed by the Hays Office, Good Housekeeping and the survivors of the Haymarket Riots; and if the times are ripe, this picture can be the opening gun in a new worldwide disaster.

Cordially,

Groucho Marx

It seems that this confused the attorneys even more, so they again wrote, asking for more details.  Grouch again responded…

Dear Brothers:

Since I last wrote you, I regret to say there have been some changes in the plot of our new picture, “A Night in Casablanca.” In the new version I play Bordello, the sweetheart of Humphrey Bogart. Harpo and Chico are itinerant rug peddlers who are weary of laying rugs and enter a monastery just for a lark. This is a good joke on them, as there hasn’t been a lark in the place for fifteen years.

Across from this monastery, hard by a jetty, is a waterfront hotel, chockfull of apple-cheeked damsels, most of whom have been barred by the Hays Office for soliciting. In the fifth reel, Gladstone makes a speech that sets the House of Commons in a uproar and the King promptly asks for his resignation. Harpo marries a hotel detective; Chico operates an ostrich farm. Humphrey Bogart’s girl, Bordello, spends her last years in a Bacall house.

This, as you can see, is a very skimpy outline. The only thing that can save us from extinction is a continuation of the film shortage.

Fondly,

Groucho Marx

According to the story, the attorneys never again wrote to Groucho, there was no law suit, the movie was made (and in our opinion, it was not one of their best) and Groucho wrote to a friend, “At any rate, the publicity has been wonderful on it, and it was a happy idea.  I wish that they would sue, but as it is, we’ve had reams in the paper.”

In a strangely ironic twist, Warner Bros. now owns the distribution rights to “A Night in Casablanca”.  There is also no truth to the rumor that Groucho met a dispossessed and long-lost brother of Jack Warner named Louis Warner on a transatlantic crossing in 1938, and told him, “Louis, I think that this is the beginning of a beautiful friendship.”

* The letters were donated by Groucho Marx to the Library of Congress, and reprinted in his 1967 book, “The Groucho Letters”.

– Lawrence A Husick, Esq.

Walmart Sponsors New Product Competition

January 31st, 2012

Walmart

Walmart currently is sponsoring a ‘get on the  shelf‘ competition to identify new products for sale through Walmart.com and its brick-and-mortar stores.  The contest rules require that applicants submit an entry form and a link to a YouTube video of the product.  After the entries are vetted by Walmart, links to the YouTube videos will be placed on the ‘get on the shelf’ website and visitors will vote for the best products.  The three top vote getters will meet the Walmart product development team and receive an opportunity to sell their rights in the product to Walmart.  If negotiations are not successful, the top vote getters will receive cash prizes.

If you are tempted to enter, remember that publication of the YouTube video likely will terminate your foreign patent rights unless you already have a pending patent application.  The competition closes to new entries on February 22, 2012 and winners will be announced in late April.

– Robert Yarbrough, Esq.

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Ask Dr. Copyright . . . Protect Your Software, Circuit Boards, and Mask Works

December 31st, 2011

copyright question

Dear Doc:

My company makes small electronic products.  We design circuit boards and write software, selling the finished products to a variety of industries.  Recently, we found out that a former employee may have given our designs to a competitor.  Can copyright law help us?

Signed,

Ripped-Off

Dear Rip:

You betcha (as Sarah Palin has been heard to proclaim)… copyright is one of the legal “arrows” in your “quiver” and you should promptly nock and draw your bow.  Then, as the Marines say, it’s as simple as Ready, Fire, Aim!  But first you must take some preliminary steps before making those thieving miscreants wish that they had never darkened your door.

As you may know, copyright registration provides certain legal rights, most importantly the right to sue in federal court, and the possibility of recovering attorney’s fees from the infringer.  So you will want to register your copyrights even though all works of authorship are automatically copyrighted when they are “fixed in a tangible medium of expression.”

Under United States Copyright Law (17 U.S.C. §§101 et seq.), circuit boards and similar products may be simultaneously protected by several copyrights.  The source code and the finished object code for your software products are the first things you should register.  If the code is actually engineered into a chip, there is also a type of registration called a “Mask Work Registration” that protects the artwork for the chip itself.  Another thing often overlooked is that the printed circuit board (PCB) design itself is separately registrable.  Pirates often just copy the board itself.  Because the top and bottom layers of the board are directly visible to a judge and jury, it is usually easy to demonstrate copying, making a case just about “open and shut”.  Don’t forget the schematic (and netlist if you use PCB design systems,) because these are copied by pirates, and the same kind of simple visual comparisons are easily shown to judges and juries.

Circuit Board

The simple truth is that for companies making electronic devices that may be copied by others, having a system of copyright registration that covers every aspect of the product and is performed automatically whenever the product is revised or updated may be among the most effective means of keeping unfair competitors and disloyal employees honest, or at least, off balance and on the defensive.  The attorneys at LW&H have plenty of experience in these matters…give them a call.

– Lawrence A. Husick, Esq.

Quick Patent Application Review for Green Technologies

December 31st, 2011

windmillMost inventors wait two to three years for a decision on a utility patent application by the PTO, and some wait much longer.  Applicants with ample resources can pay an extra PTO fee ($2,400.00 for a small entity) for quick review.  If your invention will result in a cleaner environment or reduced use of fossil fuels, you have a cheaper and faster alternative – the Green Technology Pilot Program.

The PTO’s Green Technology Pilot Program has been around since 2009 and has now been extended through March, 2012.  The Green Technology program promises that upon filing a petition, your patent application for a qualifying green invention will be reviewed within one year.  Restrictions apply, including restrictions on the number of claims.

We can testify that the Green Technology program works.  We have submitted two petitions for Green Technology review for two different wind power inventions.  Both petitions were granted and the patent applications were quickly reviewed by the PTO, one within weeks.  Both reviews resulted in allowed claims.  If your invention qualifies, we recommend that you consider the Green Technology Pilot Program.

– Robert Yarbrough, Esq.

French Fries Sue Crabs…What Next?

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.

Has Your Privacy Been Breached? Now You Have a Resource.

December 31st, 2011

PrivacyEver wonder if private information about you has been made publicly available on the Internet? You could search the Internet underground to discover if someone is distributing information about you, but such a search would require knowledge of where to look that most of us do not have.

Now there is help out there. Alen Puzic and fellow security researchers have established a website that anyone can use to discover if their e-mail address is among breached records available on the Internet. You enter your e-mail address or user name and the site tells you whether your address is among those in its database.

So you may wonder where the compromised information is found. Puzic initially amassed about five million breached records containing about three and a half million e-mail addresses and one and a half million user names that had been published by online attackers or otherwise inadvertently exposed. Puzic uses internet crawling spiders  to index underground hacking forums, account dumps from hacking groups, Pastebin, as well as accessible releases of public information, e-mail services, social media sites, merchants, and even financial institutions. The site is updated every 24 hours, and a current count of the number of entries is displayed on the first page of the web site. The site claims that none of the information associated with each e-mail address is retained, only the address itself . In addition, no queries of the web site are stored, but if you are concerned, a securely hashed input (using a publicly available hashing algorithm) is provided to search the site.

–Laurence Weinberger, Esq.

Ask Dr. Copyright . . . Peer-to-Peer File Sharing May Be Hazardous to Your Health

November 30th, 2011

copyright question

Dear Doc:

A friend of mine (if ya know what I mean) uses peer-to-peer (P2P) file sharing software.  She downloads cool things from the Internet, but then sorta-kinda-almost instantly erases them from her computer.  Is this okay?

Signed,

MovieFan

Dear Fan:

Ahem…If I were your friend, I would stop doing that stuff.  NOW!  You see, those “cool things” are mostly protected by Copyright.  While there are some movies and music that are not protected because they were made early enough that the registration has expired (think 1920s silent films) or whose owners failed to renew the copyright registration many years ago, it is really difficult to know which “cool things” are now in the “public domain” and which are still under registration.  Making a mistake about that kind of thing can ruin your day.

Copyright owners and rights organizations now use pretty sophisticated computer programs to sniff around for unauthorized copying on the Internet, and they can track down users of P2P software programs right to the actual computer running the software, the time, date and Internet address used.  Also, internet service providers are cooperating with rights owners in sending legal notices to P2P users.

One thing that you may not know is that when you use P2P software, you are not only downloading a copy of the files you see, but also your computer is being used to store and upload lots of other files that you may not see or even know are there.  There have been cases where P2P users have been accused of distribution of child pornography because certain files were flowing from the Internet to their P2P software, being stored on their hard drives, and then re-transmitted to other P2P users – all without the knowledge of the person who used the P2P software in the first place.

So…think very hard.  iTunes? NetFlix? HuluPlus?  Or…you could make the Doc’s day by continuing your outlaw ways, and getting one of those letters.  If you do, however, the attorneys at LW&H deal with this kind of thing.  Give them a call.

– Lawrence A. Husick, Esq.