UNDERSTANDING TRADEMARK LAW Third Edition
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1 UNDERSTANDING TRADEMARK LAW Third Edition
2 (2016 Pub.3162)
3 UNDERSTANDING TRADEMARK LAW Third Edition Mary LaFrance IGT Professor of Intellectual Property Law William S. Boyd School of Law University of Nevada, Las Vegas
4 Copyright 2016 Carolina Academic Press, LLC All Rights Reserved Library of Congress Control Number: ISBN: Carolina Academic Press, LLC 700 Kent Street Durham, NC Telephone (919) Fax (919) Printed in the United States of America (2016 Pub.3162)
5 Albert Joseph Leo LaFrance The islands haven t shifted since last summer, even if I like to pretend they have drifting, in a dreamy sort of way, a little north, a little south, or sidewise and that they re free within the blue frontiers of bay. William Butler Yeats iii
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7 Preface This text offers a broad introduction to the fundamental principles of the law of trademarks and unfair competition. Although deeply rooted in the common law of torts, modern trademark law has branched in many directions, as evidenced by the development of dilution and cybersquatting laws, as well as state and federal registration systems. Practitioners and students of trademark law today must be familiar with all of these branches and their various sources which include statutes as well as common law, and federal as well as state law. Although trademark law has become increasingly federalized since the enactment of the Lanham Act in 1946, the federal law of trademarks and unfair competition has little preemptive effect on state law. As a result, many aspects of trademark and unfair competition law are governed by both state and federal law. The state and federal approaches often converge, and sometimes diverge, but despite the increasing scope of federal trademark and unfair competition law, state law remains important. However, conflict may arise between, on the one hand, the state and federal regimes of trademark and unfair competition law and, on the other hand, the federal regimes of copyright and patent law. An understanding of trademark law, therefore, requires an understanding of its relationship with these other doctrines in particular, which applications of trademark or unfair competition law would so interfere with the congressional schemes of patent and copyright protection that the latter must be given preemptive effect, as illustrated by the denial of trademark protection to functional aspects of trade dress. The law of trademarks and unfair competition constantly evolves in response to changes in commercial markets. For example, the globalization of markets for goods and services has led to the increased internationalization of trademark and unfair competition law. Federal law, for example, now considers certain foreign uses of trademarks in determining priority for federal registration and, conversely, recognizes that certain foreign activities may give rise to infringement claims under the Lanham Act. Federal law has also responded to the explosive growth of the Internet as a means for communication as well as a marketplace for goods and services. Although trademark law has traditionally protected the right of a trademark holder within the specific geographic markets where the mark is in use, such geographic boundaries are less relevant today, as brick-and-mortar locations are supplemented or displaced by Internet commerce. Internet activity can also blur the line between commercial activities subject to trademark regulation and expressive conduct that is protected by the First Amendment. In addition, activities such as keyword advertising and the use of social media raise fundamental questions about the meaning of trademark infringement. For practitioners and students with no background in trademark and unfair competition law, this text may serve as a free-standing introduction. Those who already have some familiarity with these subjects will find the text to be a handy reference tool. Extensive footnoting and citation to authority is provided throughout, in order to assist those desiring to investigate a particular topic in greater depth. v
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9 Table of Contents Chapter 1 NATURE AND PURPOSE OF TRADEMARK PROTECTION INTRODUCTION PART I: HISTORICAL OVERVIEW OF TRADEMARK LAW EARLY COMMON LAW: PASSING OFF EVOLUTION OF MODERN COMMON LAW AND STATE TRADEMARK STATUTES EARLY FEDERAL LAW: THE TRADEMARK CASES THE LANHAM ACT [A] Overview [B] Recent Amendments [1] Dilution Doctrine [2] Anticybersquatting Provisions PART II: TRADEMARK, COPYRIGHT, AND PATENT LAW COMPARED SUBJECT MATTER SCOPE OF RIGHTS DURATION OF PROTECTION GEOGRAPHIC SCOPE OF PROTECTION SOURCE OF CONGRESSIONAL AUTHORITY RELATIONSHIP BETWEEN STATE AND FEDERAL LAW Chapter 2 SUBJECT MATTER OF TRADEMARK PROTECTION INTRODUCTION PART I: NATURE OF TRADEMARKS TRADEMARKS AS ORIGIN IDENTIFIERS THE REQUIREMENT OF NONFUNCTIONALITY [A] Public Policy [B] The Evolving Definition of Functionality [C] Aesthetic Functionality [1] Pre-Qualitex Cases [2] The Supreme Court on Aesthetic Functionality [3] Post-Qualitex Cases PART II: ESTABLISHING TRADEMARK RIGHTS USE IN TRADE vii
10 Table of Contents [A] Establishing Priority of Use [B] Lanham Act [1] Use in Commerce [2] Foreign Use [3] The Famous Marks Doctrine [4] Intent to Use (ITU) Applications [5] Constructive Use DISTINCTIVENESS MAINTAINING TRADEMARK RIGHTS PART III: TYPES OF TRADEMARKS PROTECTIBLE MARKS [A] Spectrum of Distinctiveness [1] Arbitrary or Fanciful [2] Suggestive [3] Descriptive [a] Common Law Proscription [b] Secondary Meaning [4] Generic Terms [B] Personal Names [C] Trade Dress [D] Color, Sound, Scent [E] Artistic, Musical, and Other Expressive Works [F] Celebrity Likenesses and Fictional Characters [G] Titles of Expressive Works [H] Numbers and Alphanumeric Combinations [I] Foreign Words [J] Abbreviations of Generic or Descriptive Terms PART IV: FEDERAL TRADEMARK REGISTRATION BENEFITS OF FEDERAL REGISTRATION MARKS ELIGIBLE FOR FEDERAL REGISTRATION [A] General Standard [B] Marks Ineligible for Registration on the Principal Register [1] Immoral, Deceptive, Scandalous, or Disparaging Matter; False Geographic Indications for Wines and Spirits [2] National, State, or Municipal Insignia [3] Name, Portrait, or Signature [4] Marks Likely to Cause Confusion with Existing Marks [a] Priority of Use [b] Priority through Analogous Use [c] Factors Indicating Likelihood of Confusion viii
11 Table of Contents [d] Concurrent Use [5] Descriptive, Misdescriptive, or Functional Marks [a] Merely Descriptive [b] Deceptively Misdescriptive [c] Primarily Geographically Descriptive [d] Primarily Geographically Deceptively Misdescriptive [e] Primarily Merely a Surname [f] Functional Marks [6] Overcoming Bars to Registration Under Section 2(f) [7] Dilutive Marks [C] Certification Marks [D] Collective Marks [E] Service Marks REGISTRATION PROCESS [A] Use [B] Intent to Use [C] Who May Register a Mark [D] Opposition [E] Interferences [F] Concurrent Use Proceedings [G] Dividing Applications [H] Maintaining and Renewing Registrations [1] Affidavit of Use [2] Renewal JUDICIAL REVIEW CANCELLATION [A] Grounds for Cancellation [B] Procedure INCONTESTABILITY [A] Effect of Incontestable Status [B] Establishing Incontestability THE SUPPLEMENTAL REGISTER [A] Eligible Marks [B] Registration Procedure [C] Effect of Supplemental Registration [D] Cancellation DOMESTIC PRIORITY BASED ON FOREIGN TRADEMARK REGISTRATIONS [A] International Agreements [B] National Treatment [C] Domestic Priority Based on Foreign Registration [D] The Madrid Agreement and the Madrid Protocol ix
12 Table of Contents PART V: STATE TRADEMARK REGISTRATION STATE REGISTRATION STATUTES [A] General PART VI: UNREGISTERED MARKS PROTECTION OF UNREGISTERED MARKS [A] State Law [B] Federal Law PART VII: RELATIONSHIP BETWEEN STATE AND FEDERAL PROTECTION GENERAL RULE OF NON-PREEMPTION CONFLICTS BETWEEN FEDERAL AND STATE TRADEMARK LAW PART VIII: ASSIGNMENTS AND LICENSES ASSIGNMENTS AND LICENSES [A] Assignments [B] Licensing Chapter 3 TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION INTRODUCTION PART I: TRADEMARK INFRINGEMENT ELEMENTS OF TRADEMARK INFRINGEMENT [A] Ownership of a Valid Mark [B] Likelihood of Confusion [1] Overview [2] Factors [a] Similarity of Marks [b] Competitive Proximity [c] Strength of Plaintiff s Mark [d] Consumer Sophistication [e] Actual Confusion [f] Bridging the Gap [g] Defendant s Good Faith [h] Relative Quality of Defendant s Goods or Services [3] Jurisdictional Variations on the Polaroid Test [C] Reverse Confusion [D] Confusion Before or After the Purchasing Decision [1] Initial Interest Confusion [2] Post-Sale Confusion x
13 Table of Contents [E] Trademark Use [1] Keyword-Triggered Advertising [2] Metatags [3] Domain Names [4] Expressive Works [5] Functional Uses [F] Use in Commerce as Jurisdictional Predicate [G] Territorial Limitations PART II: REVERSE PASSING OFF REVERSE PASSING OFF PART III: FEDERAL LAW OF FALSE ADVERTISING FALSE ADVERTISING PART IV: DILUTION THE CONCEPT OF TRADEMARK DILUTION STATE DILUTION LAWS THE FEDERAL TRADEMARK DILUTION ACT [A] History [B] Elements of a Federal Dilution Claim [C] Trademark Use [D] Distinctive and Famous Marks [1] Distinctiveness [2] Fame [E] Trade Dress and other Nontraditional Marks [F] Likelihood of Dilution [1] The FTDA and the Moseley Decision [2] Likelihood of Dilution under the TDRA [a] Likelihood of Dilution by Blurring [b] Likelihood of Dilution by Tarnishment [G] Exceptions [1] Fair Use [2] Noncommercial Use [3] News Reporting and News Commentary [H] Remedies [I] Effective Date of TDRA [J] Federal Registration as a Dilution Defense PART V: CYBERSQUATTING ANTICYBERSQUATTING CONSUMER PROTECTION ACT (ACPA) [A] Elements of a Cybersquatting Claim xi
14 Table of Contents [B] In Rem Jurisdiction [C] Personal Names [D] ACPA Remedies ALTERNATIVE FORUMS FOR DOMAIN NAME DISPUTES PART VI: SECONDARY LIABILITY CONTRIBUTORY AND VICARIOUS LIABILITY [A] Contributory Liability [B] Vicarious Liability PART VII: DEFENSES FIRST AMENDMENT CONSIDERATIONS [A] Commercial Parodies [1] Infringement and Unfair Competition [2] Dilution [B] Noncommercial Expression [1] Infringement and Unfair Competition [2] Dilution [C] Political Speech [D] Expressive Merchandise AFFIRMATIVE DEFENSES [A] Abandonment [1] Cessation of Use [2] Other Causes of Abandonment [a] Naked Licensing [b] Assignment in Gross [B] First Sale Doctrine [1] Misrepresentation by Non-Authorized Resellers [2] Materially Different Goods [a] Used, Altered, or Refurbished Goods [b] Other Non-Genuine Goods [3] Undisclosed Repackaging [4] Gray Market Goods [C] Laches [D] Acquiescence [E] Unclean Hands [F] Descriptive Fair Use [G] Nominative Fair Use [H] Comparative Advertising [I] Federal Preemption [J] Eleventh Amendment [K] Statute of Limitations xii
15 Table of Contents PART VIII: REMEDIES NON-MONETARY REMEDIES [A] Injunctions [B] Seizure of Counterfeit Goods and Related Materials [C] Destruction of Infringing Articles [D] Cancellation of Federal Registration [E] Disclaimers MONETARY AWARDS [A] Actual Damages, Defendants Profits, and Costs [B] Enhanced Damages and Prejudgment Interest [C] Attorney s Fees [D] Statutory Damages [E] Enhanced Monetary Awards in Counterfeiting Cases [F] The Requirement of Marking or Actual Notice [G] Limited Availability of Damages Under Federal Dilution Law [H] False or Fraudulent Registration LIMITATIONS ON REMEDIES AGAINST CERTAIN DEFENDANTS [A] Makers of Labels, Signs, Packaging, or Advertisements [B] Printers and Publishers [C] Domain Name Registration Authorities [D] The Family Movie Act of [E] Remedies against Federal and State Governments CRIMINAL PENALTIES [A] Counterfeit Marks [B] Counterfeit Labels PART IX: ADJUDICATION SUBJECT MATTER JURISDICTION STANDING [A] Standing to Cancel or Oppose Federal Registration [B] Standing under Section [C] Standing under Section 43(c) [D] Standing under Section 43(a) and the Common Law of Unfair Competition [E] Standing to Bring False Advertising Claims DECLARATORY JUDGMENTS xiii
16 Table of Contents TABLE OF CASES TABLE OF STATUTES TC-1 TS-1 INDEX I-1 xiv
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