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Trademarks and Unfair Competition
Seton Hall Unversity School of Law
Fechter, Gary

TRADEMARKS & UNFAIR COMPETITION – SUMMER ’09 – PROF. FECHTER

3 main areas of intellectual property law:

Trade marks

Name or symbol that identitifes and distinguishes 1 good from all other goods

Patent

Copyright

Two other areas to take into account:

Right of privacy

People have rt to privacy; buildings don’t

Publicitiy

Per Civil law TM are based on regisration and therefore first to trademark office (regardless of use) owns

Per Common Law TM is based on use, first to use in market owns trademark;

need adoption and use of trademark

Generally, first user owns

Need to use mark interstate to assert federal right to TM under Lanham Act

The Lanham (Trademark) Act (title 15, chapter 22 of the United States Code) is a piece of legislation that contains the federal statutes of trademark law in the United States. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.

Trademark use is territorialàtherefore if I’m using a TM exclusively in France and file for TM registration in US then I’m filing under intent to use and my priority is the day of my first use in US (or first use in commerce b/w US and France)

Community trade mark (CTM) – the general trademark you file for to TM protection in the EU

Madrid Arrangement: worldwide protocol for the ease of trademark protection

When you file your trademark application you can designate what other countries you wish to register your TM (done with the help of WIPO, a UN organization)

There is also a similar scheme for patents

However if there is a concurrent use and Good faith adoption w/o knowledge that is an acceptable defense to someone claiming to own the TM because they were first in the market place

But a counter to GF argument is showing your regisration of the TM b/c regisration = recording act which therefore puts all others on notice (all others are supposed to a TM search)

You are required to do your due dillegence (Tommy Hilllfiger – 1996)

If your TM violation is viewed to be agregious you are liable treble damages

First thing you are supposed to do when s/o wants to use a TM, do a TM search!!

If you have concurrent users – 1 had registration, 1 has first use – both apply and can be used

Can have identical product and identical mark

Basis of filing for a TM:

Based on date of your use, “race to the market”

Bona fide intent to use

Priority date is based on your date of regisration

ITU – search

If someone has BF intent to use on may 27 and someone has actual use on june 1, who has priority?

Person with BF intent; when they make actual use of TM (post june 1) priority reverts back to user with BFI

Application for TM filedàexamination by TM boardàopposition period (30 days) [published in “Official Gazzette” for all to see it] àif opposition then you have more time for issues to be raised and dealt with

How to prove infringement and likelihood of confusion?

Survey: make a list of questions regarding the issues at hand

Based on the results you can prove likelhood of confusion

If you can show 16% confusion then you can show likelehood of confusion

What can you go after in a lawsuit?

Copyright infringer’s profits

Patents:

Gives you exclusive rights / monopoly on your creation/invention

But it takes 6-7 years to get approval

Patent Pending:

Puts everyone on notice – knocks out defense of good faith

It allows generic uses however, patent pending, serves notice that if patent clears they will be open to lawsuit for infringment

Also makes competitors disgorge their profits, pay damages + legal fees

3 tests for patentability:

new

new invention, novel application of process etc…

you have 12 months to file for patent after disclosing it, if not the invention reverts back to Public Domain (PD)

after you file, patent examiner does a search to make sure it is truly new

useful

argue why invention is useful and what purpose/benefit it has

non-obvious

must be non obvious to an expert in the field/art

very hard to give objective criteria; if patent examiner says it is obvious patent will be denied

if invention meets these 3 criteria, you automatically get patent

cost roughly $20K

Copyright –

gives you absolute monopoly over your work, a 3rd party cannot copy it

different for all arts—music © is different from book which different from play

copyright office run by library of congress

TM and patent office run by dept of commerce

Test is minimum creativity

If what you wrote, did or drew make a showing of min creativity?

Copyright automatically attaches itself to your work upon completion

If you doodle on a paper you have CL copyright

In order to assert © in federal court you need Certificate of © registration and protection (w/o it only can sue in state court)

In order to assert © protection vs infringment you need to file for ©

You have to pay a small fee, $250, for © registration

It is put on file and everyone has a “share” in that copyrighted work

You need to submit a copy of the work you are seeking to protect

Issues with © comes into play with computer software b/c © holder doesn’t want to disclose the code needed to make the software

Only need to disclose first 25 pages and last 25 pages

Right to Privacy:

Every person in US has right to privacy EXCEPT 1st Amendment freedoms trump right to privacy

NY Post can take your picture and splash it across the front page w/o your consent

You can’t use your likeness w/o consent

Ex: bette midler case àused her voice w/o consent

Ex: woody allen v American apparel case (Allen’s likeness from a movie in clothing ad)

Ex: Vanna White cases

ABSOLUTE RIGHT

Right of Publicity:

ONLY A CELEBRITY HAS A RIGHT OF PUBLICITY

It protects those particular traits that makes someone a celebrity

Limited right

Limited to the aspects of the person that makes them famous / makes them $

Can’t rip off bette middler’s voice

Cant rip off Jackie O’s look etc…

Economic right

6/1/09

Trademark:

Use word, name, symbol, device or other designation or combination that IDENTIFIYS & DUSTINGUISHES one’s good from another

od of confusion

If you can prove it, infringment, and second person can’t carry on business in same manner

Chapter 3: Ownership and Use

Ownership –

Bell v Streetwise Records

P = performers ; D = record producer who recorded and sold their records

Suing over who owns the group’s name “New Edition”

P’s were around and founded group before D signed them and worked with them

Had a hit record with “candy girl” in 80s

Want to fire D and continue, but D claims own the rights to the name

Court: P owns mark “New Edition”

1 – they were the first to use

were performing as NE, in many local concerts, before D signed them

2 – public association

public associates NE with the singers not just the name of the band; would be NE with 5 new members

D acted as a producer and was paid, shouldn’t get ownership rights over something he didn’t create (name)

USE –

Proctor & Gamble v Johnson & Johnson –

P claims that D’s TM on “assure” tampons infringes on P’s TM for “Sure” deoderant and tampons & “Assure” shampoo and mouthwash

Court rules for J&J

P&G made no showing of bona fide commercial use to allow TM protection for “Sure” and “Assure” ; they never used these marks IN COMMERCE

P&G had these names on products barely used (“Minor Brands”)

Only “confusion” is that P&G sells Sure deoderant [vs J&Js Sure tampons]

This suit was brought in bad faith, no real proof or hint on infringment

J&J in fact did searches for the TM name and saw that although P&G had TM name, didn’t use it

§45 Lanham Act: “use in commerce”

Commerce = all commece that can be regulated by Congress

TM = any word, name, symbol or combination

Used by a person or if a person has a bona fide intention to use in commerce and applies to regster it

“use in commerce” = bona fide use in commerce, not the reserved right to use a mark in commerce

“in commerce” =

TM is on a goods label, container etc… and the good is sold or transported in ISC

Larry Harmon v Williams (BOZO the clow case)

P claimed that D’s registration of the TM Bozo for resturant should be denied b/c it didn’t = use in commerce b/c resturant is a single location

Court disagreed – although BOZOs in only 1 location they had interstate reach (customers from Tenn, Miss and Ark) as well as bec it gets mention in numerous publications in other states