Law 227: Trademarks & Unfair Competition Trademark Dilution July 2, 2009 Jefferson Scher

Law 227: Trademarks &Law 227: Trademarks &Unfair CompetitionUnfair Competition

Trademark DilutionJuly 2, 2009

Jefferson Scher

TM & Unfair Comp — Day 11TM & Unfair Comp — Day 11AgendaAgenda

•Trademark DilutionProtection for trademark rights even

in the absence of probable confusion“Dauntingly elusive” theory takes

numerous formsBlurring, tarnishment — other?

Overlapping and possibly conflicting Federal and State laws

DilutionDilutionTrue Property Rights in TrademarksTrue Property Rights in Trademarks

•Infringement = likelihood of confusion

•Dilution = likelihood of association that causes harmBlurringTarnishmentOther?

DilutionDilutionHow can a mark be “diluted”?How can a mark be “diluted”?

•BlurringDefinition: the association of a mark

with more than one source, even if:Goods/services are completely unrelatedJunior user has an equally good or better

reputationExample: POLARAID refrigeration and

heating systems, BACARDI jewelry

DilutionDilutionHow can a mark be “diluted”?How can a mark be “diluted”?

•Tarnishment (or disparagement)Definition: the association of a mark

with something unwholesome, unsavory or degrading, or “low class”Blurring at its worst

Example: CANDYLAND.com adult web site, DOGIVA pet food, STEIN-WAY clip-on beer can handle

DilutionDilutionHow can a mark be “diluted”?How can a mark be “diluted”?

•Other dilution scenarios?Unfair nominative use — like

tarnishment without the association with the junior user

.com domain names (may be obsolete)There are few bounds on the creativity

of lawyers and judges when a famous mark is being exploited “unfairly”...

DilutionDilutionDilution Scenarios — CasesDilution Scenarios — Cases

•Federal “association” casesNIKEPALGULPYCHEWY VUITONGREATEST SNOW ON EARTHIs it clear now??

DilutionDilutionDilution Scenarios — CasesDilution Scenarios — Cases

•State Dilution CasesGREATEST USED CAR SHOW ON EARTHLEXUS

•Federal Trade Dress DilutionHershey package designPepperidge Farms goldfish crackersVola “Falling water” faucet

DilutionDilutionDilution Scenarios — CasesDilution Scenarios — Cases

•Referential or nominative useTy Inc. v. PerrymanDeere & Co. v. MTD Products (NY)Hormel Foods v. Jim Henson Prod.

(NY)Caterpillar v. Walt Disney

(optional/online)

WHAM-O v. Paramount (optional/online)

DilutionDilutionDilution in the Trademark OfficeDilution in the Trademark Office

•Dilution can be a basis for oppositionLanham Act §2, after (f):

A mark which would be likely to cause dilution by blurring or dilution by tarnishment under section 43(c) may be refused registration only pursuant to a proceeding brought under section 13.

Not applicable to ex parte examination

DilutionDilutionTrue Property Rights in TrademarksTrue Property Rights in Trademarks

•Dilution reconsideredDoes dilution theory go too far?

Rights exceeding actual goodwill?Proper balance after the TDRA?

Social science and pseudoscience: economic and behavioral analysis

Uniqueness or lack thereof (optional Stadler)

TM & Unfair Comp — Up TM & Unfair Comp — Up NextNextTopics and Reading for Day 12Topics and Reading for Day 12

•We resume Tuesday, July 14th

•Rights of PublicityChapter 9, pp. 675-723

•ParodyChapter 12, pp. 838-873, 885-889Supplement pp. 92-95