Introduction to Trademark infringement

8/7/2019 Introduction to Trademark infringement

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Business TortsBusiness Torts Spring 2011Spring 2011Fordham Law SchoolFordham Law SchoolIntroduction toIntroduction to TrademarkTrademark ConsumerConsumer

protection and fair competitionprotection and fair competitionGeor e W. ConkGeor e W. Conk

Adjunct Professor of Law & Senior Fellow, Stein Center for Law &Adjunct Professor of Law & Senior Fellow, Stein Center for Law &EthicsEthics

Room 409Room 409gcon aw. or am.e ugcon aw. or am.e u

212212--636636--74467446Torts Today: http://tortstoday.blogspot.comTorts Today: http://tortstoday.blogspot.com

,,Blackstonetoday.blogspot.comBlackstonetoday.blogspot.com

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PROTECTED CATEGORIESPROTECTED CATEGORIES ofofCommercial rights and PropertyCommercial rights and Property

TRADEMARK/TRADENAMETRADEMARK/TRADENAME

ra e secretra e secret

Statutory/constitutionalStatutory/constitutionalCopyrightCopyright

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on ancient artifacts discovered in theon ancient artifacts discovered in the

ra emar s w ere use n me evara emar s w ere use n me evatimes by members of guilds totimes by members of guilds to

en y e w or o cra smen w nen y e w or o cra smen w nthe guildthe guild



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commercial activitycommercial activity

Trademarks are appropriated throughTrademarks are appropriated througha opt on an pr or usea opt on an pr or use

4


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Prevent mistake dece tion and confusion w ithPrevent mistake dece tion and confusion w ith

regard to the origin of goodsregard to the origin of goods

Identification of goods or servicesIdentification of goods or services

Protect a rior user s ood w illProtect a rior user s ood w ill

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Deceptive marketingDeceptive marketingct ons at common awct ons at common aw

, . ., . .passing off passing off

-- action for trademark infringementaction for trademark infringement-- must show diversion of trade from themust show diversion of trade from theplaintiff to the actorplaintiff to the actor-- single source requirementsingle source requirement



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Patent and copyright in thePatent and copyright in theConstitutionConstitution

To promote the progress of science andTo promote the progress of science and

,,

to authors and inventors the exclusiveto authors and inventors the exclusivediscoveriesdiscoveries



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-- StatesStates

The Congress shall have the power...The Congress shall have the power......To regulate commerce with foreign...To regulate commerce with foreignnations, and among the several states,nations, and among the several states,and with the Indian tribesand with the Indian tribes



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e ra emar casese ra emar cases100 U.S. 82 (1879)100 U.S. 82 (1879)



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. roper y n ra emar s as ong een. roper y n ra emar s as ong een

reco nized and rotected b the commonreco nized and rotected b the common

law and by the statutes of the severallaw and by the statutes of the severalstates, and does not derive its existencestates, and does not derive its existence

r r r v rr r r v rre istration of them in the Patent Office.re istration of them in the Patent Office.



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The trademark casesThe trademark casesTrademark not covered by Article 1Trademark not covered by Article 1

section 8section 8ommerce c ause on y as s or e eraommerce c ause on y as s or e era

Trademark act not susceptible of Trademark act not susceptible of

narrowing construction limiting it tonarrowing construction limiting it to

interstate commerceinterstate commerceBusiness Torts BP Gulf Oil Spill 11


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Is trademark a form ofIs trademark a form ofintellectual property?intellectual property?

expressionexpression minimal creativityminimal creativity reqtreqt

, ,, ,

describeddescribedra emarra emar use n tra e, st nct ve,use n tra e, st nct ve,indicative of sourceindicative of source



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an am can am c

Uniform dece tive trade ractices ActUniform dece tive trade ractices Act

(1966) adopted by 12 states(1966) adopted by 12 states

Trademark CounterfeitingTrademark Counterfeiting



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--. . .. . .,,

appropriate for his or their own use aappropriate for his or their own use a--, ,, , ,,

goodwill of any maker in whose productgoodwill of any maker in whose product, ., .



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NY CLS PenalNY CLS Penal 165.72.165.72. TrademarkTrademarkcounter e t ng n t e secon egreecounter e t ng n t e secon egree

some other person or with the intent tosome other person or with the intent to

,,resale, offering for sale, or distribution of resale, offering for sale, or distribution of

, ,, ,distributes, sells, or offers for sale goodsdistributes, sells, or offers for sale goods



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Common law unfair competition actionsCommon law unfair competition actionsnn

P lmin ff P lmin ff

MisappropriationMisappropriationw en a usiness, t roug renown in Neww en a usiness, t roug renown in New

York, possesses goodwill constitutingYork, possesses goodwill constitutingproperty or a commercia a vantage inproperty or a commercia a vantage inthis state, that goodwill is protected fromthis state, that goodwill is protected from

misappropriation un er New Yor un airmisappropriation un er New Yor un aircompetition law. competition law. ITC v.ITC v. PunchginiPunchgini (NY 2007)(NY 2007)



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Common law unfair competition actionsCommon law unfair competition actionsnn

P lmin ff P lmin ff -- El r l x r . v V lEl r l x r . v V l- -W r hW r h

Inc., 6 NY2d 556 [1959]Inc., 6 NY2d 556 [1959]

the sale of the goods of one the sale of the goods of one

manufacturer as those of another manufacturer as those of another

in com etitionin com etition



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e an am ce an am cFalse designations of origin15False designations of origin15

U.S.C. 1125U.S.C. 1125



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Lanham Act (1946)Lanham Act (1946)Does not codify common lawDoes not codify common law

A m eans of federal enforcement,A m eans of federal enforcement,,,

trademark rightstrademark rightsx ens ve y amen e nx ens ve y amen e n

-- Federal registration on the basis of Federal registration on the basis of an intent to use the mark, in additionan intent to use the mark, in additionto actual use of marksto actual use of marks



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1125. False designations of origin,1125. False designations of origin,

forbiddenforbidden..

(1) Any person who, on or in connection(1) Any person who, on or in connection,,

container for goods,container for goods, uses in commerceuses in commerce, , , , ,, , , , ,

or any combination thereof, or anyor any combination thereof, or any falsefalse

,,description of fact, or false or misleadingdescription of fact, or false or misleading,, ----



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forbiddenforbidden,,

cause mistake, or to deceive as to thecause mistake, or to deceive as to the, ,, ,

such person with another person, or as tosuch person with another person, or as to, ,, ,

or her goods, services, or commercialor her goods, services, or commercial,,



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forbiddenforbidden

promotion, misrepresents the nature,promotion, misrepresents the nature,, ,, ,

origin of his or her or another person'sorigin of his or her or another person's, , ,, , ,

shall be liable in a civil action by anyshall be liable in a civil action by any

likely to be damaged by such act.likely to be damaged by such act.



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Trade dress' is the total image of theTrade dress' is the total image of theus ness.us ness.

appearance of the exterior of theappearance of the exterior of the

restaurant, the identifying sign, therestaurant, the identifying sign, the

interior kitchen floor plan, the decor, theinterior kitchen floor plan, the decor, the

, ,, ,the servers' uniforms and other featuresthe servers' uniforms and other features

reflecting on its total image. reflecting on its total image. Business Torts BP Gulf Oil Spill 23


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Acquisition of rights in markAcquisition of rights in mark common awcommon aw

M h v n llM h v n ll

M ade know n to prospectiveM ade know n to prospective

purchaserspurchasers

In the ordinary course of businessIn the ordinary course of business

n a manner t at assoc ates t e marn a manner t at assoc ates t e mar

sourcesource Business Torts BP Gulf Oil Spill 24


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1988 Lanham act amendments1988 Lanham act amendments reg strat on an usereg strat on an use

Application for registration isApplication for registration is

15 USC 105715 USC 1057M ust be used made w /M ust be used made w / i i 6 months (6 months ( ororas ex tendedas ex tended ))15 USC 105115 USC 1051



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Requirements for TrademarkRequirements for TrademarkProtectionProtection

cqu re secon ary mean ngcqu re secon ary mean ng

NonfunctionalityNonfunctionality

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DistinctivenessDistinctiveness essential toessential toprotect onprotect on

servicesservices

MustMust distinguishdistinguish those goodsthose goods andandservices from the goods and servicesservices from the goods and services

o o ers n eo o ers n e mar e p acemar e p ace

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Distinctiveness and secondaryDistinctiveness and secondarymeaningmeaning

------fanciful/arbitraryfanciful/arbitrarydescriptivedescriptive------>>- - - - - - - - - - -- - - - - - - - - - -

VaselineVaseline petroleumpetroleum jellyjelly



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Arbitrary marks and tradeArbitrary marks and tradenamesnames inherently distinctiveinherently distinctive



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marks that are not inherentlymarks that are not inherently

special proof of distinct ivenessspecial proof of distinct iveness

by comm on law andby comm on law and statutestatute

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Su estive marksSu estive marksregistrableregistrable and protectable w/oand protectable w/o



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escr pt ve mar s must e s ow n to aveescr pt ve mar s must e s ow n to aveacquired customer recognitionacquired customer recognition

,,primarily to identify the source of theprimarily to identify the source of the

roducts or services and not merel toroducts or services and not merel todescribe their nature, quality ,describe their nature, quality ,characterist ics, ingredients, orcharacterist ics, ingredients, or

geographicgeographic originsorigins

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Generic marksGeneric marks constitute the veryconstitute the very

registered or appropriated exclusively toregistered or appropriated exclusively to

one manufacturer s use, even upon aone manufacturer s use, even upon a

show in of secondarshow in of secondar meaninmeanin

Why?Why?

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Trademark rotection is rantedTrademark rotection is ranted

only toonly to symbols or features thatsymbols or features that

Why?Why?

and useful w hy should it not beand useful w hy should it not be

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rr


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e oo o con us one oo o con us onKey test of infringementKey test of infringement



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99 thth Circuit jury instructionsCircuit jury instructions factors onfactors one oo o con us one oo o con us on..

P laintiffs Mark.Plaintiffs Mark.

the plaintiffs trademark as an indication of the plaintiffs trademark as an indication of ,,

likely it is that consumers would belikely it is that consumers would be

defendants goods if the defendant uses adefendants goods if the defendant uses a..



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e e en an an p a n use e re e en an an p a n use e r

trademarks on the same related ortrademarks on the same related or

complementary kinds of goods there maycomplementary kinds of goods there may

be a greater likelihood of confusion aboutbe a greater likelihood of confusion about

ur rw ..ur rw ..



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3.3. Similarity of Plaintiffs andSimilarity of Plaintiffs ande en ant s ar s.e en ant s ar s.I f theI f the overall impressionoverall impression created bycreated bythe plaintiffs trademark in thethe plaintiffs trademark in themarketplace ismarketplace is similarsimilar to that createdto that createdby the defendants trademark inby the defendants trademark in

[appearance] [sound] [or][appearance] [sound] [or][meaning], there is a greater chance[meaning], there is a greater chance[that consumers are likely to be[that consumers are likely to be

confused by defendants use of aconfused by defendants use of amark] [of likelihood of confusion].mark] [of likelihood of confusion].



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3.3. Similarity of Plaintiffs andSimilarity of Plaintiffs ande en ant s ar s.e en ant s ar s.[Similarities in appearance, sound or[Similarities in appearance, sound ormeaning weigh more heavily thanmeaning weigh more heavily thandifferences in finding the marks aredifferences in finding the marks aresimilar].similar].

LexusLexusLexisLexis



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4.4. Actual Confusion.Actual Confusion.

If use by the defendant of the plaintiffsIf use by the defendant of the plaintiffs

tra emar as e totra emar as e to nstances o actuanstances o actua

likelihood of confusion.likelihood of confusion.But actual confusion is not required for aBut actual confusion is not required for afindin of likelihood of confusion.findin of likelihood of confusion.



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4.4. Actual Confusion.Actual Confusion.

As you consider whether the trademark As you consider whether the trademark

used by the defendant creates forused by the defendant creates for

the laintiffs trademark, ou should wei hthe laintiffs trademark, ou should wei hany instances of actual confusion againstany instances of actual confusion against

the opportunities for such confusion.the opportunities for such confusion.



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Knowing use by defendant of the plaintiffsKnowing use by defendant of the plaintiffs

strongly show an intent to derive benefitstrongly show an intent to derive benefit ,,

suggesting an intent to cause a likelihoodsuggesting an intent to cause a likelihood..

But even in the absence of proof that theBut even in the absence of proof that the

,,plaintiffs trademark to identify similarplaintiffs trademark to identify similar

confusion.confusion. Business Torts BP Gulf Oil Spill 45


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e p a n s an e en an s goo se p a n s an e en an s goo s

services are likel to be sold in the sameservices are likel to be sold in the same

or similar stores or outlets, or advertisedor similar stores or outlets, or advertised

in similar media, this may increase thein similar media, this may increase the

u .u .



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7.7. Consumers De ree of Care.Consumers De ree of Care.The more sophisticated the potentialThe more sophisticated the potential

goods, the more careful and discriminatinggoods, the more careful and discriminating

exercising ordinary caution may be. Theyexercising ordinary caution may be. They

similarities in the plaintiffs andsimilarities in the plaintiffs and



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8.8. Product Line Expansion.Product Line Expansion.When the parties products differ, you mayWhen the parties products differ, you may

selling the products for which theselling the products for which the

trademark. If there is a strong possibilitytrademark. If there is a strong possibility

market, there is a greater likelihood of market, there is a greater likelihood of ..



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mar s mere y escr p vemar s mere y escr p ve

describes an in redient ualitdescribes an in redient ualit

characterist ic, function, feature,characterist ic, function, feature,

purpose or use of the specified goodspurpose or use of the specified goods

r rv .r rv .


Dilution 15 USC 1125(c)Dilution 15 USC 1125(c)


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Dilution 15 USC 1125(c)Dilution 15 USC 1125(c)e owner o a amous mar a se owner o a amous mar a s

distinctive, inherently or through acquireddistinctive, inherently or through acquireds nc venesss nc veness , s a e en e o an, s a e en e o an

injunction against another person who, atinjunction against another person who, atany me a er e owner s mar as ecomeany me a er e owner s mar as ecomefamous, commences use of a mark or tradefamous, commences use of a mark or trade

r y ur y udilution by blurring or dilution bydilution by blurring or dilution by tarnishmenttarnishment

,,presence or absence of actual or likelypresence or absence of actual or likely, ,, ,

economic injuryeconomic injury ..Business Torts BP Gulf Oil Spill 51

DefensesDefenses


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DefensesDefenses

. escr p ve se a r se. escr p ve se a r seInIn an action foran action for infringementinfringement it is ait is adefense thatdefense that the term used by the actor isthe term used by the actor isdescriptivedescriptive or geographically descriptiveor geographically descriptive of of the actor's goodthe actor's good s, services, or business, ors, services, or business, or

is the personal name of the actor or ais the personal name of the actor or aperson connected with the actor, and theperson connected with the actor, and theactor hasactor has used the term fairlyused the term fairly and in goodand in good

faithfaith solely to describe the actor's goodssolely to describe the actor's goods ,,services, or business or to indicate aservices, or business or to indicate aconnection with the named person.connection with the named person.



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-- Descriptive (fair) useDescriptive (fair) use

ConsentConsent

AbandonmentAbandonment

LachesLaches (unreasonable delay)(unreasonable delay)

nc ean an s p a n snc ean an s p a n smisconductmisconduct



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RemediesRemedies -- 1515 U.S.C. 1117 (a)U.S.C. 1117 (a)Declaratory judgm entDeclaratory judgm ent

Lost profits/ restitution of Ds unjustLost profits/ restitution of Ds unjustgainsgains

DamagesDamagesTreble DamagesTreble Damages

AttorneyAttorney feesfeesttp: www. aw.corne .e u usco e 15 uscttp: www. aw.corne .e u usco e 15 usc

_sec_15_00001117_sec_15_00001117--------000000--.html.htmlBusiness Torts BP Gulf Oil Spill 54

D hif i b dD hif i b d


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Damages: shifting burdenDamages: shifting burdenIn assessing profits the plaintiff shall beIn assessing profits the plaintiff shall be

defendant must prove all elements of costdefendant must prove all elements of cost

Actual damagesActual damages maymay be trebledbe trebledamages may e a us e own or up.amages may e a us e own or up.

shall constitute compensation and not ashall constitute compensation and not a

pena y.pena y.Counterfeit mark Counterfeit mark damagesdamages shallshall bebetrebledtrebled



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reasonable attorney fees to the prevailingreasonable attorney fees to the prevailing..

At the bench trial, it became entirelyAt the bench trial, it became entirely,,

examination of AMI'S sole witness, Larryexamination of AMI'S sole witness, Larry, ,, ,

AMI'S evidence in support of itsAMI'S evidence in support of its ..


Documents

Introduction to Trademark infringement