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Will a well known brand name ever become generic again?

Posted by ipelton on: May 3rd, 2012

Under trademark law, words which describe an entire category of products or services cannot be protected because they are generic. A generic term cannot even acquire secondary meaning over a period of time or as the result of extensive advertising.

There are two types of generic names — those that are generic from their inception, and those that began as protected brand names but became generic.

In essence, the “from inception” generic names are not really brands at all. For example, in recent years HOTELS.COM was denied registration by the USPTO, and on appeal by the Court of Appeals for the Federal Circuit, never acquired any protection and thus is not really a trademark – the owner has no rights to tell anyone else to stop using HOTEL.COM or HOTELS.NET, names which are extremely similar.

Names that were once protected brands but “became generic” are similarly not entitled to any real trademark protection – even though at one time they were. Well known examples of such “became generic” words include “aspirin” and “escalator.” At one time they were registered and unique to one company’s products. But overtime they were used by everyone to describe a whole category or “genus” of products and the former brand names become unenforceable and un-registered with the USPTO.

But when was the last time a well known brand name became legally generic in the United States due to a loss of its rights? I could not think of any example from the past 20 years. And I have posed the question lately to several other trademark attorneys. None could provide an example. In one well known case, Intel attempted to claim rights to the numbers “386″ but it was denied. But I don’t believe that at the time ”386″ was not a well known brand belonging solely to Intel up until that time. Thermos was declared a generic term for a vacum insulated container in 1963.

I don’t think we will see a well known brand become generic anytime soon. Branding advice has become much more sophisticated over the last few decades. The investments companies make in advertising, branding, trademark attorneys, and the like is much greater. Trademark attorneys and brand managers have learned from the errors made in the past. And the economics of one user challenging a huge company that has millions of dollars, or more, invested in a brand name, do not favor challenging the brand.

For example, boxes of Kleenex actually say “Kleenex brand tissues,” and many other brands also make sure to use the generic category term on their packaging to make it clear that their brand name is not the category name. Starbucks notes that a Frappuccino is actually a “Frappuccino blended beverage.” For more on this phenomenon, see my earlier post, Avoiding generic trademark use by using generic term after trademark.

For example, the following names are NOT generic yet – and are registered with the USPTO – and are unlikely to ever become legally generic even though the public mis-uses them all the time:

 For some ‘generic’ tools used by trademark lawyers, including links to the major USPTO and other searches, see the page I created called:

Generic Trademark Page!

 

A decision by the Court of Appeal for the Federal Circuit a few weeks ago has gone largely unnoticed. The case, In re MSTG, 08-CV-7411 (CAFC April 9, 2012), may have very significant ramifications in trademark and patent disputes.

MSTG sued AT&T Mobility for infringement of patents related to 3G mobile telcom technology. MSTG later sued a number of other parties as to these same patents. MTSG eventually settled with all parties except AT&T. One of the key issues in dispute litigated between MSTG and AT&T is the amount that constitutes a reasonable royalty if AT&T were found to have infringed the patents. In discovery, MSTG produced the requested license agreements with the other former defendants, but AT&T sought additional discovery regarding the negotiations of the settlement agreements on the theory that they too could be pertinent to the determination of a reasonable royalty and moved to compel production. Although the motion was initially denied, the magistrate judge granted the motion, finding that the documents could shed light on calculating a reasonable royalty and why the parties reached their royalty agreements.

The District Court (NDIL) adopted the order, and MSTG petitioned the Federal Circuit to stay discovery and vacate the order. As a matter of first impression, the Federal Circuit granted review. The question before the Federal Circuit was whether communications related to reasonable royalties and damages are protected from discovery based on a settlement negotiation privilege? 

The Federal Circuit ruled that both Supreme Court jurisprudence and policy do not support creation of a new ‘settlement’ privilege, note that : there is no consensus among the states to create such a privilege; Congress has spoken to this issue and chosen not to adopt a settlement privilege (FRE 408); The Advisory Committee of the Judicial Conference has not recommended the privilege; and the Supreme Court has previously ruled that a party seeking a new evidentiary privilege under FRE 501 demonstrate that it will effectively advance the public good. While MSTG contends that this privilege will ensure full and frank discussions in settlement negotiations, the Court found it insufficient to create a privilege.

The court ruled: “[W]e hold that settlement negotiations related to reasonable royalties and damage calculations are not protected by a settlement negotiation privilege.” And added: “While typically settlement negotiations that are admissible under Federal Rule of Evidence or disclosed to a party’s expert would be discoverable, the district court has discretion to limit discovery of material that is not itself admissible and that was not utilized by the opposing party to protect settlement confidentiality. Even as to such admissible or disclosed material, some protections may be appropriate.”

While the issue was specific to to the patent litigation before it, the Federal Circuit spoke more generally in terms of the Federal Rules of Evidence, so one could expect application into other areas of law over which the  Fed. Cir. has jurisdiction.

How could this apply to trademark cases? Are an adversaries negotiation details and communications with third parties subject to discovery?

Special thanks to law clerk Reid Morris who helped prepare this post.

Effective last week on April 24, 2012, Customs and Border Patrol (CBP) announced a new procedure that benefits those trademark registrants who record their marks with the agency. CBP will now

disclose to an intellectual property right holder information appearing on merchandise or its retail packaging that may comprise information otherwise protected by the Trade Secrets Act, for the purpose of assisting CBP in determining whether the merchandise bears a counterfeit mark. Such information will be provided to the right holder in the form of photographs or a sample of the goods and/or their retail packaging in their condition as presented to CBP for examination and alphanumeric codes appearing on the goods. The information will include, but not be limited to, serial numbers, universal product codes, and stock keeping unit (SKU) numbers appearing on the imported merchandise and its retail packaging, whether in alphanumeric or other formats. These changes provide a pre-seizure procedure for disclosing information about imported merchandise suspected of bearing a counterfeit mark for the limited purpose of obtaining the right holder’s assistance in determining whether the mark is counterfeit or not.

See Disclosure of Information for Certain Intellectual Property Rights Enforced at the Border (Federal Register, 4/24/12). For the full Federal Register notice, see here: http://www.gpo.gov/fdsys/pkg/PLAW-112publ81/pdf/PLAW-112publ81.pdf (see Sect. 818(g) in particular).

In other words, if Customs has information about a counterfeit, in addition to possibly stopping the shipment, will provide the trademark holder with information regarding the shipment. This is additional trademark monitoring and investigation that could save trademark owners a great amount of time and money to gather details about infringers that could be used to make demands (e.g. ‘cease and desist’ letters) or to use in court, including seeking injunctions.

The new policy is part of the NATIONAL DEFENSE AUTHORIZATION ACT - FOR FISCAL YEAR 2012, but the provision does not appear to be limited to only “defense” related products.

For more details about the “how’s” and “why’s” of recording a trademark registration with Customs and Border Patrol, see:

Update: US Customs will work to protect your trademark

Anatomy of a U.S. Customs Recordation

Non-profits have brands and trademarks too

Posted by ipelton on: April 27th, 2012

This guest post, by former intern W. Reid Morris (JD, 2012, Howard University School of Law), discusses the importance of trademark and brand protection for non-profit organizations:

In 2011, the value of Apple Computer’s “brand” was calculated to be over $153 BILLION. Apple, at the top of the list, was followed by Google at $111.5 billion, IBM at nearly $101 billion, and McDonalds at $81 billion.[1] The brand value of these companies is made up by a number of factors with one of the most important being the consumer goodwill associated with the brand. This consumer goodwill helps to signal future profitability and is anchored by the name and trademarks that identify these brands. These four brands are for-profit enterprises. In fact, all 100 brands on the BrandZ top-100 chart are owned by for-profit corporations. But, creating, maintaining, and enhancing the value of non-profit brands is just as important for the public and the owners, managers, and stakeholders of those brands.

With a brand like Apple, we know their name, but we also know their logos, products, stores, staff, services, and even their top managers. While this breadth of brand image may not be practical for all non-profits, crafting a cohesive image that fairly represents who you are and what you do is important. It is also important for non-profits to look beyond just a name and logo and to follow the example of these valuable brands by creating more complete brand images that can be instantly recognized by the public.

Whether or not you seek federal trademark registration for multiple facets of your brand, consistent use of those branding elements will create consumer associations that add to the value of your brand. Protecting a broader range of elements of your brand through federal trademark registration can allow your organization to exclusively use those brand elements to identify your goods or services, which will further strengthen the value of your brand.

A stronger and more valuable brand means that your non-profit can have greater awareness amongst the consuming (or donating) public, and it means that your campaigns can get more done with less money and effort.

If you are interested in learning more about how your organization’s trademarks can be better utilized, better protected, and further developed, get in touch with a trademark attorney, and don’t be afraid to ask about pro-bono legal services for your non-profit.

© 2012. W. Reid Morris. All Rights Reserved.


[1] Millward Brown Optimor “BrandZ Top 100 Most  Valuable Global Brands 2011” index, available at http://www.millwardbrown.com/libraries/optimor_brandz_files/2011_brandz_top100_chart.sflb.ashx (last accessed April 24, 2012).

Habitat for Humanity

Related posts:

Love it or leave it: ETCH-A-SKETCH

Posted by ipelton on: April 26th, 2012

Thanks to a Mitt Romney staffer, ETCH A SKETCH® has been in the news quite a bit lately. The toy has been around since 1960. According to Wikipaedia, it was “inducted into the National Toy Hall of Fame at The Strong in Rochester, New York in 1998. In 2003, the Toy Industry Association named Etch A Sketch to its Century of Toys List, a roll call commemorating the 100 most memorable and most creative toys of the 20th century.”

Etch A Sketch is a great name.

  • it suggests what the product does, draw
  • it is fun to say;
  • it is one of a kind; and 
  • it is easy to reminder

   Etch-A-Sketch on the campaign trail advertisementEtch-A-Sketch on the campaign trail advertisement   

Recent ads from Ohio Art wisely tapping into its recent turn in the news 

 Even better, the name and the product are well protected [click trademarks/images for USPTO records]:

  • ETCH A SKETCH – registered for ‘Toy Self-Contained Opaque Screen Sketching Device’ since 1961
  • TRAVEL ETCH A SKETCH  - registered for ‘toy self-contained opaque screen sketching device’
  • POCKET ETCH A SKETCH – registered for ‘toy self-contained opaque screen sketching device’
  • “WORLD’S FAVORITE DRAWING TOY” -toy self-contained opaque screen sketching device
  • - registered for variety of good and services
  • - registered for ‘self-contained opaque screen drawing device’
    • Description of Mark: The mark consists of the configuration of the goods and the color red applied to the frame surrounding the opaque drawing screen.
    • Lining and Stippling: The drawing is lined for the color red, and the color red is claimed as a feature of the mark.

A great name and brand, well protected, such as ETCH A SKETCH, is invaluable. And when a political staffer uses it as an analogy, everyone understands the reference.

For an amazing gallery of Etch A Sketch images, see http://www.gvetchedintime.com/gvetchedintime/gallery.php.