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Posts Tagged ‘infringement’

Last week saw many developments and stories related to trademarks. Since I started this blog more than two years and several hundred posts ago, I honestly cannot recall a week with so many trademark stories!

Here is a brief rundown of the key trademark stories of last week:

Justin Bieber makes trademark news – on  Friday, the celebrity gossip website website TMZ reported that Bieber’s attorneys sent a cease and desist demand to the maker of an app game called JOUSTIN’ BEAVER. The app makes filed for a trademark registration in the USPTO a few weeks ago. TMZ posted a copy of the demand letter. As a result of the coverage, the app received a lot of attention – and downloads – and broke into the iTunes top 100.  As of the weekend, the app was still available in iTunes and the Android marketplace. 

Wall Street Journal featured article on Start-Ups ‘Shame’ Bigger Companies: ‘Coming Down Hard on the Little Guy’ - the article references several trademark disputes include the one involving EAT MORE KALE and Chik-fil-A’s EAT MOR CHIKIN slogan, and noted the increasing role that social media campaigns can play for accused infringers. 

Trademark scams - the USPTO updated the trademark page of the USPTO.gov website on Friday to include a warning about solicitations sent to trademark applicants and registrants that are misleading and of questionable value: WARNING: NON-USPTO SOLICITATIONS THAT MAY RESEMBLE OFFICIAL USPTO COMMUNICATIONS: Be aware that private companies not associated with the USPTO often use trademark application and registration information from the USPTO’s databases to mail or e-mail trademark-related solicitations.

The New York Times featured an article on trademarks as well: Trademarks Take On New Importance in Internet Era – The article does not focus as much on the Internet as the headline implies. But the article is remarkable for noting that, in the dispute over the PRETZEL CRISPS trademark, “Princeton Vanguard already has spent $1 million on legal fees” defending against Frito-Lay.

USPTO held roundtable on  “Future Plans for USPTO ID-Class Practice” - on Friday the USPTO convened a public meeting exploring some issues on the possible changes to the ID manual and other ID issues. I attended the meeting in person (it was also webcast) and some interesting ideas and feedback were discussed. My guess is that in the next year the USPTO will likely move to trim the size of the ID manual and to explore introducing a hierarchical index of the manual as an option for applicants and attorneys to use in finding the correct identification and the necessary level of specification.

Bo Muller-Moore, the owner of EAT MORE KALE, and a filmaker launched a Kickstarter project called “A Defiant Dude” – the project seeks to make a documentary film. “By helping make this documentary I want to shine a light on this issue, my battle, and other trademark bullies, too.” In less than a week, more than 200 people have signed up to contribute to fund the film.

News broke that Apple is being sued not only in China but also in California regarding the IPAD trademark- Apple claims that it  bought Proview’s worldwide rights to the iPad trademark. Proview argues that the rights Apple claims are not all valid and that Apple concealed its identity in using a shell company to contract with Proview. See Apple faces new iPad trademark challenge in California (The Telegraph).

COACH defeated at appellate court – The Court of Appeals for the Federal Circuit ruled on an appeal that the Trademark Trial and Appeal Board properly held that Triumph Learning’s COACH mark for educational software was not confusingly similar to or diluting the COACH handbag and accessories trademark.

Michael Jordan Sues Chinese Sportswear Company Over Use of Name (NY Times)

And, of course, the LINsanity continued – Jeremy Lin made the cover of Sports Illustrated for the 2nd week in a row, and the number of Lin inspired (LINspired?) USPTO trademark applications continued to grow. They now include: J Lin, LINDERFUL, LINSANE, lin-sational, LINITLESS, All LIN,  LINSPIRATION, I’M A LINNER,  LINNING IS THE ONLY THING, MARKET LINQUIDITY (filed by Nasdaq!), Air Lin

The New York Times website’s Dealbook column last Friday evening provided an update on the trademark story it covered just a few weeks ago: Willa has successfully fended off Proctor & Gamble and their Wella trademark

The original Times story two weeks ago garnered a lot of attention (and included a quote from me!). Perhaps P&G felt some backlash and heat for being portrayed as picking on a small business. The original story certainly was sympathetic to the plight of the Willa trademark.

Here is the key quote from the article about the dispute’s resolution:

Lawyers for Ms. Prunier also declined to provide additional specifics about the settlement, other than confirming that their client can continue to use the name Willa for her line of lip balm, facial masks and other skin care products.

These types of agreements are common place. While I have no knowledge of the specifics of the settlement agreement here, it is quite possible that Willa’s owners would have agreed never to use a logo that looks like Wella’s logo, never to use the trademark on some products, and other limitations. While such agreements are quite common, they are only possible when the small business has the guts and the funds to stand up the bigger company. Very often they don’t have the resources to put up any fight and the big company therefore succeeds regardless of how weak or strong the legal arguments were.

Hats off to Willa for taking on ‘Goliath’!

image from www.willaskincare.com

I have posted a new video on our video channel. The video is a basic introduction to trademark infringement issues for the trademark owner.

[youtube http://www.youtube.com/watch?v=X7DxaUITVm4&w=560&h=349]

A presentation from Erik M. Pelton & Associates, a boutique trademark law firm regarding trademark infringement issues. Information is provided about what is trademark infringement and dilution, and how small businesses should consider approaching infringement situations as both plaintiffs and defendants.

We welcome suggestions in the comments for future trademark video topics!

The U.S. Intellectual Property Enforcement Coordinator, Victoria Espinel, recently released her first annual report (large PDF).

Ms. Espinel has accomplished a lot in just one year on the job. She has brought energy and clarity to enforcement strategy from the government and to renewed efforts from law enforcement. She has raised awareness of counterfeiting issues. And she has helped various parts of the government work on communicating and coordinating with each other.

President Obama has noted on several occasions recently how innovation by U.S. businesses is one of the keys to growing the economy and making restoring American success. See his 2011 State of the Union speech and his talk to the U.S. Chamber of Commerce. He has cited intellectual property as one of America’s core assets and exports.

What I find missing in this discussion, and particularly in Ms. Espinel’s report, is any discussion of balance – of any checks on the system to ensure that law enforcement, government agencies, and businesses do not overreach in seeking to enforce the intellectual property rights. There is no discussion of the potential harm cause by such over-enforcement, or of the issues small businesses face defending themselves in enforcement actions small businesses or affording be enforcers.

In crafting the White House’s policy, law enforcement strategies, and other intellectual property issues, I fear that the voice of small businesses is not heard.

For example:

  • Vice President Biden recently hosted a discussion with administration officials include Ms. Espinel, Attorney General Holder, and Secretary of Commerce Gary Locke, and business leaders.  The list of attendees was reported as:
    • Administration officials:
    • Attorney General Eric Holder
    • Secretary of Commerce Gary Locke
    • Valerie Jarrett, Senior Advisor to the President
    • Jack Lew, Director, Office of Management and Budget
    • Victoria Espinel, U.S. Intellectual Property Enforcement Coordinator
    • John Morton, Director, Immigration and Customs Enforcement, U.S. Department of Homeland Security
    • Ambassador Phil Verveer, Coordinator for International Communications and Information Policy, U.S. Department of State
    • Aneesh Chopra, Chief Technology Officer of the United States
    • Margaret Hamburg, Commissioner of Food and Drugs, U.S. Department of Health and Human Services
    • David Kappos, Under Secretary of Commerce for Intellectual Property and Director, U.S. Patent and Trademark Office
    • Alan Hoffman, Deputy Chief of Staff, Office of the Vice President
    • Jason Furman, Deputy Director, National Economic Council
    • Business:
    • Carl Bass, President and CEO, Autodesk
    • John Lechleiter, President and CEO, Eli Lilly
    • Thomas Rothman, Co-Chairman and CEO, Fox Filmed Entertainment
    • Ajay Banga, President and CEO, Mastercard
    • Glen Barros, President and CEO, Concord Records
    • Paul Almeida, President, Department of Professional Employees, AFL-CIO
    • Ivan Seidenberg, Chairman and CEO, Verizon
    • Gigi Sohn, President, Public Knowledge
    • Of the 6 businesses, at least 5 are on the Fortune 1000 (Fox, Autodesk, Eli Lilly, Mastercard, and Verizon) and 4 are probably in the Fortune 100.
  • The 2010 U.S. INTELLECTUAL PROPERTY ENFORCEMENT COORDINATOR ANNUAL REPORT ON INTELLECTUAL PROPERTY ENFORCEMENT produced by Ms. Espinel’s office mentions “small business” a handful of times in its 90 pages, but mostly in regards to provide them with information and nothing to do with substantive policy interests.
  • Espinel’s blog post announcing the Annual Report also speaks only of enforcement actions, nothing of balance or of crafting an overall policy that represents interests of small businesses and big businesses.
  • President Obama last week issued an Executive Order called ”The Establishment of the Intellectual Property Enforcement Advisory Committees,” establishing two intellectual property enforcement advisory committees designed to improve the Federal Government’s intellectual property enforcement efforts. The representatives are all agency officials and both committees are chaired by Ms. Espinel. There is little, if any, checks or balances to the work of the committees. The committees sole functions thus seem to be more enforcement. There is nothing wrong with more enforcement, as long as it complies with the laws and recognizes the harm done by over-enforcement, unjustified threats of infringements and baseless infringement claims.

According to SBA.gov, small businesses

  • Represent 99.7 percent of all employer firms.
  • Employ just over half of all private sector employees.
  • Have generated 64 percent of net new jobs over the past 15 years.
  • Create more than half of the nonfarm private gross domestic product (GDP).
  • Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited.

Yet they are noticeably absent from government policies to protect and enforce intellectual property rights.

As detailed here before, the USPTO recently sought comments about ‘trademark litigation’ tactics (a.k.a trademark bullies or small business study) as part of a report due to Congress next month.

The comment period closed last week after two extension. My comments were previously published.

Four main groups of attorneys in the field of trademarks and intellectual property have published their comments.

AIPLA (American Intellectual Property Lawyers Association) comments

ABA-IPL (American Bar Association Intellectual Property Law Section) comments

INTA (International Trademark Association) comments

IPO (Intellectual Property Owners’ Association) comments

I commend each organization for making their comments publicly available. But I agree with very little of the substance of their comments.

IPO: “IPO does not believe that trademark “bullies” are a problem for trademark owners.” The IPO actually tries to indicate that the problem may be opposition to that in the study, namely small businesses unfairly causing problems for others. “Indeed, several IPO members noted a trend towards more aggressive assertion and defense of trademark claims by individuals and small organizations, particularly where they represent themselves or have obtained legal representation on a contingency basis.” The IPO comments cite Leo Stoller to support its claims despite the clear evidence that he is but one individual, not a part of a trend. “IPO notes that in trademark case law, one can find examples of both plaintiffs and defendants engaging in objectionable behavior.”

Summary: Problem, what problem? If anything, defendants might be pestering or causing problems with tactics for plaintiffs.

ABA-IPL: “Overall, however, curbing abusive trademarklitigation practices should be left to the judiciary on a case-by-case basis. A “one size fits all”approach does not appear to be warranted.” There is “no consensus about many of these issues, lending further support to theconclusion that determining litigation misconduct – in a trademark case or otherwise – requiresa fact-intensive analysis that cannot be addressed by a single, catch-all legislative solution.” It “it appears that theexisting regimes to handle abusive conduct are sufficient to address concerns of abusivetrademark litigation conduct.”

Summary: Even if there is a problem, why should anyone try to fix it as a whole when case by case courts could potentially do something.

INTA: “INTA believes that the interests of trademark owners both large and small are well served by the established practices and rules in litigation. INTA suggests that a greater emphasis on education would assist small businesses and the general public in undrstanding trademark law nad hte obligations of rights holders.” “INTA believes that the courts currently have sufficient tools that are balanced and adequate to discourage unfair litigation practices.” “INTA recommends additional public education and outreach to raise awareness among the pubic and small business owners of legal protections in the system.”

Summary: There is no problem and the system should not be changed in any manner. Ff anything small businesses and the public just need to be better educated about the issues.

AIPLA: “AIPLA advises against regulation aimed at trademark abuse in favor of existing remedies.” Legislative or other action addressing the topics in the study would “restrict or chill the trademark enforcement process.” “AIPLA is not aware of significant abusive enforcement tactics.”

Summary: The status quo is just fine; and enacting any changes would seek to address a problem that does not exist.

In sum, these groups believe there is no problem and even if there were one the existing remedies would suffice for addressing it. I disagree strongly with these conclusions – while the “problem” may not be drastic or easy to define, I believe that several changes to the system, increased education, and additional remedies available to defendants to address egregious problems would improve the system.

Perhaps the additional defenses or causes of action are the proper remedy — because if there is no problem as the 4 main IP law associations suggest then they would never be used or successful and the net change to the trademark law and practice would be minimal. And if they are wrong and there is a problem, recognizing defenses and causes of action dealing with abusive tactics or over-zealous enforcement would go a long way towards making the system more just for all trademark owners and users.

The contents of the USPTO remain to be seen (in fact, it remains to be seen if the report to Congress will even be made public). Hopefully it will at a minimum encourage further discussion of these issues. My biggest fault with the comments of the 4 group noted herein is not the position they have taken – I expected them to protect their interests and their clients’ interests – but that they believe that no further study or discussion of the issues is needed or worthwhile. Drastic reform may not be necessary. But a few smaller reforms – including better education regarding the issues to both small businesses and trademark owners – could certainly help in minimize the over enforcement of trademarks and the stifling effect it has on the economy, on jobs, and on American innovation.