Tag: Trademark Infringement

Laugh It Off: A Guide to Parody Under U.S. Trademark Law

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Imagine poking fun at a famous brand or logo and getting away with it. In the United States, it’s not only possible, but can also be a recognized form of artistic expression known as trademark parody. Trademark parodies are a form of humorous or satirical commentary that uses a well-known trademark in a playful or critical manner. But typically, the target of that humor or satire is not amused.  Companies invest a lot of time, effort, creativity, and resources into building their brands and creating positive associations with their trademarks. Thus, if a famous brand owner believes that the use of its trademark by a third party may damage its reputation, the company could take legal action against a parody mark to protect its image and trademark rights.

In this post, we will explore what constitutes a trademark parody and when it crosses the line of trademark infringement or dilution (which occurs when the recognition of a distinctive trademark is weakened due to unauthorized use by others).

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2020 Brings (Some) Clarity to Trademark Profit Awards

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Nearly a year ago, we previewed the U.S. Supreme Court’s then-upcoming decision in Romag Fasteners, Inc. v. Fossil Group, Inc.—a case set to provide some much needed clarity on the question of whether plaintiffs in trademark infringement cases must demonstrate that defendants acted willfully in order for plaintiffs to recover defendants’ profits.

Justice Gorsuch delivered the opinion of the Court resolving the circuit split on this issue and holding that a plaintiff alleging trademark infringement under § 1125(a) of the Lanham Act is not required to prove willful infringement as a precondition to recovering lost profits. The Court reasoned that the clear and unambiguous language of the Lanham Act’s remedies provision only requires a precondition of willfulness when awarding profits for trademark dilution under § 1125(c), not trademark infringement under § 1125(a).  The Court was careful to note that willfulness, though not a precondition to awarding profits, remains an important factor a court should consider when assessing damages.  It simply is not, however, an “inflexible” threshold inquiry.

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What’s In a (Corporate) Name? (And How Can I Appeal Rejections?)

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It happens to even the most diligent companies.  You file to register your corporate name in a state where you’re seeking to do business, and before the ink has even dried on the application, you receive notice that your application has been rejected because your proposed name is allegedly too similar to the registered business name of a third party in the state.

You’re distraught – perhaps you had even performed a trademark search to clear the name, and that search didn’t reveal evidence of any use of conflicting names in the marketplace. This was supposed to be a breeze, and a delay could present serious business interruption costs.  How can this happen and what can you do?

The bad news first – sometimes, conflicts like this are unavoidable.  States’ practices vary as to how frequently they remove old or inactive corporate name registrations from their books, meaning your application could be blocked by a company that’s no longer doing any meaningful business in the state, or perhaps never was.  The state may offer little information about the refusal grounds or the blocking party (sometimes, it won’t even issue a written letter) – so obtaining something substantive is often the first step.

The good news – in many (if not most) states, there are formal or informal processes in place to appeal the refusal.  One potential means of appealing is by arguing that no confusion is likely to arise between the parties’ uses of their respective names.  The factors in making that determination often mirror those applied in trademark law – for instance, differences in the names, differences in the businesses, geographic proximity of the parties, etc. – but not always.  Usually, the governing state statute will be posted on the Secretary of State’s website, so you can see what the factors are.

Another potential option is obtaining the consent of the blocking party.  Many states will withdraw refusals if you submit a consent – but be warned, this can be risky.  The blocking party may demand money in exchange for its consent.  And if you have already been using the name, the blocking party may sue you for infringement.

Often, the best way to evaluate your potential options is to call the Secretary of State’s office.  You may be told that the office cannot provide legal advice, but usually you can learn at least what options are available and what the relevant laws might be.  Then, if the path forward isn’t clear, a lawyer or third-party service provider may be able to help.