Detailed Table of Contents Board of Editors... v v Foreword... vii vii Preface... ix ix Author Biographies... xi xi Summary Table of Contents... xix xix Chapter 1: PART I: INTRODUCTION The Origins of Trademark Rights and the Nature of the Interests Protected... 1 1-1 I. Introduction... 2 II. Economic Principles Underlying Trademark in the United States... 3 1-4 III. Establishing Rights in a Trademark... 6 1-5 A. The Ability to Function as a Trademark... 6 1-5 1. Categories of Trademarks... 6 1-5 a. Generic Terms... 6 1-5 b. Descriptive Marks... 8 1-5 c. Suggestive Marks... 10 d. Arbitrary and Fanciful Marks... 11 2. Nonfunctionality... 11 B. Use in Commerce... 13 1-6 1. The General Rule Actual Use as a Fundamental Requirement for Enforceable Rights... 13 1-6 a. Priority Issues... 15 b. Level of Use... 16 1-6 c. Type of Use... 20 xxi
xxii Trademark Infringement Remedies, 2018 Supp. 2. Exceptions to the General Rule When Use Is Not Required... 22 IV. Sources of Trademark Rights... 24 A. Common-Law Rights... 24 B. Federal Rights... 25 1. Types of Applications... 25 2. General Protections... 26 C. International Rights... 28 V. Common Causes of Action... 29 A. Federal Trademark Infringement and Unfair Competition... 29 B. The Trademark Dilution Revision Act... 30 VI. Goodwill: The Protected Interest... 33 A. Brand Awareness vs. Brand Strength... 34 B. The Trademark Owner s and the Public s Interests... 36 VII. Limits of Goodwill: The Relationship Between Goodwill and Actual Use... 39 1-7 A. Geographic Market Penetration as a Measure of Whether and Where Protectable Goodwill Exists... 40 1-7 B. Product Market as a Measure of Where Goodwill Exists... 42 Chapter 2: Establishing Trademark and Unfair Competition Liability... 45 2-1 I. A Protectable Indicator of Source... 46 2-2 A. Inherent Distinctiveness... 47 2-2 B. Acquired Distinctiveness... 51 1. Direct Evidence of Secondary Meaning... 53 2. Circumstantial Evidence... 54 II. Likelihood of Confusion... 55 2-4 A. Threshold for Likelihood of Confusion... 56 B. Types of Confusion... 57 2-4 C. Relevant Consumers... 58 D. Actual Confusion... 60 E. Survey Evidence... 61 2-4 F. Multifactor Test for Likelihood of Confusion... 62 2-5 1. Strength of the Plaintiff s Trademark... 63 2. Similarity of the Two Marks... 64 2-5 3. Similarity of the Goods, Trade Channels, and Advertising... 67
Detailed Table of Contents xxiii 4. Sophistication of Purchasers... 68 2-5 5. Defendant s Intent... 69 G. Actual Confusion May Implicate Counterfeiting... 69 2-6 H. TTAB Decisions May Preclude Later Infringement Litigation... 70 2-6 III. Unfair Competition Liability... 71 A. Protection Against Passing Off Using Generic Terms... 71 B. False Advertising... 73 1. What Is False or Misleading?... 74 2. Defenses... 78 IV. Dilution of a Famous Mark... 79 2-6 A. Federal Dilution Statutes... 79 2-6 B. Fame... 81 2-6 C. When to Measure Fame... 84 2-6 D. Distinctiveness... 85 E. Dilution by Blurring... 85 2-7 1. Similarity of the Marks... 86 2-7 2. Degree of Distinctiveness... 88 3. Exclusivity... 89 4. Degree of Recognition... 89 5. Defendant s Intent... 89 6. Actual Association... 89 F. Dilution by Tarnishment... 90 G. Trade-Dress Dilution Under the TDRA... 91 2-7 H. Defenses Under the TDRA... 92 I. Other Exclusions... 95 PART II: INJUNCTIVE RELIEF Chapter 3: General Principles... 97 3-1 I. Introduction... 100 II. Historical Background of Injunctions in Trademark Cases... 101 3-2 III. Injunction Requirements and the Presumption of Irreparable Harm... 104 3-4 A. Introduction... 104 B. Status of Presumption of Irreparable Harm by Circuit... 106 3-4 1. First Circuit... 108 2. Second Circuit... 109 3. Third Circuit... 114 3-4 4. Fourth Circuit... 119
xxiv Trademark Infringement Remedies, 2018 Supp. 5. Fifth Circuit... 121 3-5 6. Sixth Circuit... 124 7. Seventh Circuit... 125 3-6 8. Eighth Circuit... 126 3-7 9. Ninth Circuit... 127 3-7 a. Cases Applying a Demanding Standard for Irreparable Harm... 130 b. Cases Applying a Less Demanding Standard or Using the Presumption of Irreparable Harm... 135 c. Cases That Are Difficult to Characterize... 138 10. Tenth Circuit... 139 11. Eleventh Circuit... 139 3-10 12. D.C. Circuit... 141 13. Federal Circuit... 141 IV. The Territorial Nature of Trademark Rights... 142 3-11 A. Introduction... 142 B. Territoriality of Trademark Rights Generally... 143 C. Defining the Territorial Limits of Common Law Trademark Rights... 146 1. Zone of Actual Market Penetration... 147 2. Zone of Reputation... 149 3. Zone of Natural Expansion... 151 D. Territorial Issues Under the Lanham Act... 154 E. Trade Area Analysis Examples... 157 1. Cases Involving Only Common Law Trademark Rights... 157 2. Cases Involving the Good-Faith Junior User Defense... 158 3. Cases Involving the Dawn Donut Doctrine... 160 F. Territoriality and Internet Use... 161 1. Zone Theory... 162 2. Personal Jurisdiction... 164 G. Territoriality and Internationality... 166 3-11 1. Trademark Protection With No Use in the United States... 166 3-11 2. Injunctions That Reach Actions Outside the United States... 170 H. Impact of Concurrent Use on Territoriality of Injunctions... 177 1. Concurrent-Use Proceedings... 178 2. Concurrent Use by Agreement... 179
Detailed Table of Contents xxv 3. Concurrent Use Is Not Joint Ownership... 180 V. Specificity of Prohibited Acts... 181 VI. Contempt... 183 VII. Amendment and Dissolution of Injunctions... 184 Chapter 4: Preliminary Injunctions... 187 4-1 I. Introduction... 188 II. General Principles... 189 A. Jurisdiction... 190 B. Notice... 192 C. Impact of Delay... 193 D. Local Rules and Customs Matter... 195 E. The Order a Movant Seeks Should Be Specific... 196 F. Evidentiary Standards and Requirements Depend on the Case and Court... 197 G. Use of Survey Evidence... 199 1. Surveys Can Establish Secondary Meaning... 200 2. Surveys Can Establish Likelihood of Confusion... 200 H. Making a Record... 202 III. Legal Standards and Probability of Success by Circuit... 203 4-2 A. First Circuit... 203 B. Second Circuit... 204 C. Third Circuit... 205 D. Fourth Circuit... 206 E. Fifth Circuit... 207 F. Sixth Circuit... 208 G. Seventh Circuit... 209 H. Eighth Circuit... 210 I. Ninth Circuit... 211 4-2 J. Tenth Circuit... 213 K. Eleventh Circuit... 213 L. D.C. Circuit... 214 M. Federal Circuit... 215 IV. Irreparable Harm... 215 4-3 A. Presumption of Irreparable Harm Post ebay... 215 4-3 B. Without a Presumption, the Movant Must Make an Independent Showing of Irreparable Harm... 216 4-4
xxvi Trademark Infringement Remedies, 2018 Supp. C. Delay Can Rebut a Presumption or Showing of Irreparable Harm... 218 4-4 V. Balance of Hardships... 219 VI. Public Interest... 219 VII. Selected Types of Cases and Issues... 220 A. Former Licensees/Employees... 220 B. Disclaimers... 221 C. Product Recalls... 221 VIII. Bonds... 222 A. A Bond Is Required... 222 B. The Bond Requirement Serves as a Precaution to a Movant... 223 IX. Appeals... 223 Chapter 5: Permanent Injunctions... 225 5-1 I. General Principles... 226 5-2 A. Authority... 227 5-2 B. Adequacy of Relief... 228 5-3 C. Permanent Relief... 230 5-4 1. Success on the Merits... 231 2. Irreparable Harm... 232 5-4 3. Harm to Defendant... 235 5-8 4. Public Interest... 236 5-9 D. Modifying a Permanent Injunction... 238 E. Tailoring the Relief... 240 5-10 II. Enjoining Legal Acts... 245 5-12 A. History of Improper Behavior... 246 5-12 B. The Safe-Distance Rule... 246 5-12 C. When the Safe-Distance Rule Is Not Appropriate... 250 5-13 D. Narrow vs. Broad Injunctions... 251 5-13 E. Adopting a New Mark... 253 5-14 III. Mandatory Injunctions... 254 5-14 A. Corrective Advertising... 256 5-15 B. Telephone Numbers and Listings... 259 5-15 C. Customer Refunds and Cancellation Orders... 263 D. Product Recalls... 263 5-16 E. Seizure and Destruction of Goods... 268 5-16 F. Transfer of Domain Names... 271 5-18 G. Use of Disclaimer... 272 H. Court-Ordered Compliance Declarations... 272 5-19 I. Social Media Accounts... 273 5-19 IV. Cessation of Illegal Activity... 273 5-19
Detailed Table of Contents xxvii A. Denial of Injunctive Relief With Voluntary Cessation... 274 5-20 B. Consideration of Assurance of Cessation... 276 5-20 C. Innocent Infringers... 277 D. Irrefutable Reform Required... 277 5-21 E. When Parties Intentions Are in Doubt... 279 F. Default Judgments... 281 5-21 V. Persons Bound... 282 5-23 A. Parties... 283 5-23 B. Officers... 284 C. Agents, Attorneys, and Servants... 285 D. Employees... 286 E. Persons in Active Concert or Participation With Defendant... 287 F. Persons Who Receive Actual Notice of the Order... 288 VI. Enforcement in Other Jurisdictions... 289 5-23 A. Interstate and Nationwide Injunctions... 290 5-23 B. Extraterritorial Injunctions... 292 5-24 VII. Bonds... 294 VIII. Appeals... 295 Chapter 6: Extraordinary Circumstances and Relief... 299 6-1 I. Introduction... 301 6-3 II. Authority for Issuance of Extraordinary Relief... 303 6-3 A. Federal Rules of Civil Procedure... 303 6-3 1. Federal Rule 64... 303 6-3 2. Federal Rule 65(b)... 305 a. Temporary Restraining Orders... 305 b. Ex Parte Seizure Orders... 306 c. Ex Parte Asset Freeze Orders... 309 B. Equitable Power of Federal Courts... 310 6-3 C. The Lanham Act... 312 1. Temporary Restraining Orders as Preliminary Injunctions... 312 2. Ex Parte Seizure Orders... 313 a. Authority for Ex Parte Seizure Orders... 313 b. Appealability of Ex Parte Seizure Orders... 314 D. State Courts... 316 III. Temporary Restraining Orders... 316 6-3
xxviii Trademark Infringement Remedies, 2018 Supp. A. Requirements... 316 6-3 1. Likelihood of Success on the Merits... 317 6-3 2. Irreparable Harm in the Absence of Preliminary Relief... 318 6-3 3. Balance of Hardships... 320 4. Public Interest... 321 B. Temporary Restraining Orders Issued... 321 6-4 1. Second Circuit... 321 2. Third Circuit... 327 3. Fourth Circuit... 328 3a. Fifth Circuit [New Topic]... 6-4 4. Sixth Circuit... 328 6-4 5. Seventh Circuit... 330 6. Eighth Circuit... 332 6-4 7. Ninth Circuit... 335 6-5 8. Tenth Circuit... 341 6-5 9. Eleventh Circuit... 343 C. Temporary Restraining Orders Denied... 345 6-5 1. First Circuit... 345 2. Second Circuit... 347 3. Third Circuit... 348 4. Fifth Circuit... 349 6-5 5. Sixth Circuit... 349 6-6 6. Seventh Circuit... 350 6-6 7. Eighth Circuit... 351 8. Ninth Circuit... 351 6-6 9. Tenth Circuit... 360 6-7 10. Eleventh Circuit... 361 6-7 IV. Ex Parte Seizure Orders... 362 6-7 A. Requirements... 362 1. Ex Parte Seizures of Infringing Goods in Counterfeiting Cases... 362 2. Ex Parte Seizures of Infringing Goods in Non-counterfeiting Cases... 365 B. Wrongful Seizure... 365 C. Ex Parte Seizure Orders Issued... 367 6-7 D. Ex Parte Seizure Orders Denied... 373 V. Ex Parte Asset Freezes... 375 A. Requirements... 375 B. Ex Parte Asset Freezes Issued... 377 C. Ex Parte Asset Freezes Denied... 383 VI. State Court Ex Parte Relief... 384 6-7 A. Requirements... 384 B. Temporary Restraining Orders Granted... 385 6-7 C. Temporary Restraining Orders Denied... 392 6-8 VII. Conclusion... 397
Detailed Table of Contents xxix PART III: MONETARY RELIEF Main Volume Supplement Chapter 7: Defendant s Profits... 399 7-1 I. General Principles Regarding Defendant s Profits... 402 II. The Role of Willful Intent... 405 7-4 A. Willful Intent Required... 406 7-4 1. General... 406 7-4 2. Profits Awarded... 411 3. Profits Denied... 416 B. Willful Intent as an Element... 420 7-5 1. General... 420 7-5 2. Profits Awarded... 424 3. Profits Denied... 428 C. Special Cases... 429 1. Profits as a Measure of Actual Damages... 429 2. Licensee/Franchisee Relationships... 431 III. The Role of Actual Confusion... 433 A. Majority View: Actual Confusion Not Required... 433 B. Minority View: Actual Confusion Required... 434 IV. Apportionment Issues... 437 7-5 A. Profits From the Infringing Activity... 437 7-5 B. Appropriate Deductions... 441 1. Evidence Required... 441 2. Types of Costs... 444 a. Allocating Overhead... 444 b. Salaries... 445 c. Taxes... 445 d. Miscellaneous Disallowed Deductions... 446 C. Temporal Scope of Award... 446 D. Geographic Scope of Award... 448 V. Enhancement... 449 7-6 VI. Prejudgment Interest... 453 VII. Reverse Confusion... 455 Chapter 8: Plaintiff s Damages... 465 8-1 I. General Principles... 465 8-1 A. Injury to Plaintiff s Mark... 466 B. No Double Recovery... 469 8-1 II. Defendant s Improper Conduct... 471 8-2 III. Plaintiff s Actual Damages... 473 8-2
xxx Trademark Infringement Remedies, 2018 Supp. A. Proving Damages... 474 8-2 B. Measurement of Damages... 476 8-3 1. Plaintiff s Lost Profits... 477 8-3 2. Reasonable Royalties... 483 3. Corrective Advertising... 488 4. Prejudgment Interest... 492 5. Statutory Damages in Counterfeiting Cases... 494 C. Adjustment by the Court... 495 IV. Conclusion... 500 PART IV: MISCELLANEOUS CIVIL REMEDIES Chapter 9: Attorneys Fees... 501 9-1 I. Bases of Awards of Attorneys Fees in Trademark-Infringement and Unfair-Competition Litigation... 503 9-2 II. Considerations Governing the Disposition of Fee Requests... 505 9-2 A. Fee Requests by Prevailing Plaintiffs... 505 9-2 1. Opinions Awarding or Considering the Possibility of Awarding Fees... 505 9-2 2. Opinions Declining or Considering the Possibility of Declining to Award Fees... 526 B. Fee Requests by Prevailing Defendants... 538 9-3 1. Opinions Awarding or Considering the Possibility of Awarding Fees... 538 9-3 2. Opinions Declining or Considering the Possibility of Declining to Award Fees... 549 III. Calculation of Attorneys Fees... 557 9-3 Chapter 10: Special Enforcement Remedies... 579 10-1 I. Cancellation/Amendment of Trademark Registration... 580 10-2 A. The Court s Power to Cancel or Modify Federal Registrations... 580 10-2 B. Standing to Seek Cancellation... 585 C. Grounds for Cancellation... 587 10-3 1. Abandonment, Genericness, Descriptiveness... 587 2. Effect of Incontestability... 589
Detailed Table of Contents xxxi 3. Fraud in Obtaining Registration... 589 4. Other Grounds for Cancellation... 593 10-3 D. Partial Cancellation, Modification, and Other Equitable Action... 596 E. Cancellation of Registrations Based on Section 66 (Madrid Protocol)... 600 II. Disclaimers... 601 A. Rationale for Allowing Disclaimers... 601 1. Defendant s Good Faith... 602 2. Established Rights in Other Countries... 607 3. Right to Use One s Name... 608 4. First Amendment Considerations... 612 B. History of Disclaimers in the Second Circuit... 613 C. Disclaimers and the Internet... 615 D. The Case Against Disclaimers... 619 III. Corrective Advertising... 621 10-3 A. Injunctions for Corrective Advertising... 622 B. Corrective Advertising as an Element of Damages... 622 10-3 1. Awards for Prospective Costs... 624 10-3 2. Corrective Advertising Awards Denied or Limited... 628 IV. Destruction/Seizure of Infringing Articles... 632 10-4 A. Destruction of Infringing Articles... 632 10-4 B. Seizure... 638 10-5 Chapter 11: State Law Remedies for Trademark Infringement and Unfair Competition... 647 11-1 I. General Principles... 649 11-3 A. An Overview of State Trademark Statutes and the Model State Trademark Bill... 649 B. An Overview of Other State Remedies... 651 11-3 1. State Dilution Statutes... 651 2. Unfair Business Practices ( Little FTC ) and Deceptive Trade Practices and Similar Statutes... 652 3. Common Law... 652 11-3 II. Interrelationship of Federal and State Law... 653 A. Concurrent and Supplemental Jurisdiction... 653 B. Application of State Law in Federal Cases... 654
xxxii Trademark Infringement Remedies, 2018 Supp. C. Application of Federal Law in State Cases... 655 III. Comparison of Remedies Under State and Federal Statutory Trademark Law... 661 A. Registration and Statutory Structure... 661 B. Opposition and Cancellation Remedies... 662 C. Remedy for Fraudulent Registration... 663 D. Injunctive Remedies... 664 E. Awards of Profits and Damages for Infringement Absent Willful Actions... 664 F. Delivery Up and Destruction Orders... 665 G. Treble Damages and Attorneys Fees... 666 H. Counterfeiting Remedies... 667 I. Statutory Provisions Relating to Retainer of Common Law Remedies... 667 J. Punitive or Exemplary Damages... 667 IV. State Trademark Infringement Remedies: Injunctions... 668 11-4 A. Territoriality of Injunctions Based on State Laws... 668 B. Temporary Restraining Orders and Preliminary Injunctions... 669 11-4 C. Permanent Injunctions... 675 11-4 V. State Trademark Infringement Remedies: Compensatory Damages and Profits... 680 11-5 A. Compensatory Damages of Plaintiff... 680 11-5 B. Defendant s Profits... 683 C. Statutory Damages Schemes... 684 VI. State Trademark Infringement Remedies: Punitive or Exemplary Damages... 685 11-5 A. Statutory Schemes for Treble or Other Increased Damages Awards... 685 B. Common Law Awards of Punitive Damages... 687 11-5 VII. State Trademark Infringement Remedies: Attorneys Fees... 689 A. Statutory Basis for Attorneys Fees... 689 B. Common Law Basis for Attorneys Fees... 692 VIII. Special Counterfeiting Remedies... 693 IX. State Dilution Laws... 694 A. History of the Model State Dilution Provision... 695 B. Variance in Dilution Remedies Among the States... 696 C. Relief Granted Dilution Plaintiffs During the Post FTDA Era... 698
Detailed Table of Contents xxxiii D. Status of State Dilution Law Remedies Following the Supreme Court Decision in Moseley... 699 E. Relief Granted Dilution Plaintiffs During the Post Federal Trademark Dilution Revision Act Era... 701 X. Unfair Business Practices (Little FTC) Statutes and Remedies... 703 11-5 A. Standing of Competitors to Bring Private Claims Under Little FTC Acts... 703 11-5 B. Remedies Available to Competitors in Private Actions... 704 11-6 XI. Deceptive Trade Practices Statutes and Remedies... 706 11-6 A. Adoption of UDTPA in Two Versions... 707 B. Remedies Under UDTPA... 708 11-6 XII. Miscellaneous Other Statutes... 710 11-7 A. Unfair Competition Statutes... 710 B. False Advertising Statutes... 711 11-7 C. Privacy Statutes... 712 D. Statutes Prohibiting the Unlawful Use of a Religious or Charitable Corporation Name... 712 Appendix 11-1. Table of State Statutes Concerning Civil State Trademark and Unfair Competition Remedies... 715 Appendix 11-2. INTA Model State Trademark Bill... 756 Appendix 11-3. INTA Model State Anti Counterfeiting Bill... 766 Chapter 12: Special Remedies for Counterfeit... 771 12-1 There have been no updates to this chapter since publication of the Main Volume. Chapter 13: Remedies for Trademark Infringement and Unfair Competition on the Internet... 799 13-1 I. Introduction... 801 II. The Uniform Domain Name Dispute Resolution Policy... 801 13-3 A. Representations and Warranties Required of Domain Name Registrants... 802 B. Elements of a UDRP Claim... 803
xxxiv Trademark Infringement Remedies, 2018 Supp. 1. The Domain Name Is Identical, or Confusingly Similar, to the Complainant s Mark... 803 2. The Registrant Has No Rights or Legitimate Interests in the Domain Name... 805 3. The Domain Name Was Registered and Is Being Used in Bad Faith... 807 4. The Interrelationship Between the Second and Third Elements of a UDRP Claim... 809 C. UDRP Complaints Involving Multiple Parties or Domain Names... 810 D. Choosing the Number of Panelists... 810 E. Choosing a Dispute-Resolution Service Provider... 811 13-3 1. Fees and Refunds for UDRP Complaints... 811 13-3 2. Availability of Additional Submissions... 812 F. Remedies for UDRP Claims... 813 G. Appeals of UDRP Decisions... 813 13-4 H. Emerging Issues: GDPR [New Topic]... 13-4 III. The Anticybersquatting Consumer Protection Act... 814 13-6 A. ACPA Statutory Prohibitions... 814 B. The Availability of Remedies Under the ACPA... 817 C. Remedies Available in Cases With In Personam Jurisdiction Over the Registrant... 821 13-6 D. Remedies Available in Cases With Only In Rem Jurisdiction Over the Domain Name... 822 E. Remedies Available to the Domain Name Registrant... 822 F. New Generic Top-Level Domains and the ACPA... 822 IV. California Business and Professions Code Sections 17525 et seq.... 824 V. Metatags, Keyword-Based Advertising, and Linking... 827 13-7 A. Use of Another s Trademark as a Metatag... 827 1. Nominative Fair Use of Another s Trademark as a Metatag... 830
Detailed Table of Contents xxxv 2. Descriptive Fair Use of Another s Trademark in a Metatag... 833 3. Availability of Preliminary Injunctive Relief... 834 B. Use of Another s Trademark as an Advertising Keyword... 834 1. Liability for Buying a Keyword Embodying Another s Trademark... 842 2. Liability for Selling Advertising Keywords That Embody Another Party s Trademark... 844 C. Using Another Party s Trademark as a Link From One Website to Another... 845 13-7 1. Deep Links to a Page Inside Another s Website That Bypass the Home Page... 847 2. Framing the Content But Obscuring Advertisements or Information on Another s Website... 847 3. Searching for a Trademark on Another s Website... 847 4. Emerging Issues: The Applicability of The Server Test to Trademark Infringement [New Topic]... 13-7 VI. The New gtlds and Rights-Protective Mechanisms... 848 A. The Uniform Rapid Suspension System... 849 B. The Trademark Clearinghouse... 850 1. The Sunrise Period... 851 2. The Trademark Claims Service... 851 C. Domains Protected Marks Lists... 851 D. Challenging a Registry Operator... 852 1. Legal Rights Objection... 852 2. Post-Delegation Dispute Resolution Procedure... 853 3. Registry Restrictions Dispute Resolution Procedure... 854 VII. Conclusion... 856 Appendix A-1: Examination Guide 1-18: Class Headings and Explanatory Notes of International Trademark Classes Under Nice Classification, 11th Edition, Version 2018 (February 2018)... A-3
xxxvi Trademark Infringement Remedies, 2018 Supp. Appendix A-2: Examination Guide 2-18: Examination Guidance for Compliance with Section 2(a) s Scandalousness Provision While Constitutionality Remains in Question During Period to Petition for Certiorari to U.S. Supreme Court (Issued May 24, 2018)... A-39 Appendix A-3: Examination Guide 3-18: Changes to Procedures Regarding Certain Documents (September 2018)... A-41 Table of Cases... 857 TC-1 Index... 935