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Trademark Law Summaries

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Importer of Fake 'Tommy' Watch May Be Liable Under Tariff Act: Ninth Circuit

United States v. Able Time
No. 06-56033,
U.S. Court of Appeals for the Ninth Circuit, 09/25/2008

Holding: In this case involving imported watches bearing the "Tommy" mark, the U.S. Court of Appeals for the Ninth Circuit ruled that the Bureau of Customs and Border Protection ("Customs") may impose a civil penalty under the Tariff Act upon an importer of merchandise bearing a counterfeit mark, even though the owner of the registered mark does not manufacture the same type of merchandise. Tommy Hilfiger Licensing, Inc. is the registered owner of the mark in dispute, but does not manufacture watches. Customs filed a civil penalty action against the watch importer, Able Time, Inc. ("Able"), which responded by filing a motion for summary judgment. The U.S. District for the Central District of California granted Able's motion. It reasoned that the imported watches could not be counterfeit because Tommy Hilfiger did not make watches at the time of the seizure. On appeal, the Ninth Circuit reversed. Construing the Lanham Act and the Tariff Act together, the Ninth Circuit held the imposition of a civil penalty under the Tariff Act does not require a trademark holder to manufacture or sell the same good as the goods imported with the offending counterfeit mark. The Ninth Circuit, however, remanded for the district court to determine whether (1) the mark on the watches is identical to or substantially indistinguishable from the registered mark pursuant to the Lanham Act and (2) whether the offending mark copies or simulates the registered mark pursuant to the same statute, which amounts to the traditional likelihood of confusion test for infringement. More...

CA Court: Schussler, and not Webster, Owns "Hot Dog Hall of Fame" Mark

Schussler v. Webster
No. 07cv2016 IEG,
U.S. District Court for the Southern District of California, 09/22/2008

Holding: In this suit relating to the "Hot Dog Hall of Fame" mark, the U.S. District Court for the Southern District of California ruled that the owner of an online newsletter at www.thehotdoghalloffame.com, J. Frank Webster, had no enforceable right over this disputed mark. Plaintiff Schussler Creative, Inc. registered this mark, and filed this action for a declaration that its trademark is valid. In ruling in Schussler's favor, the district court held that since Schussler registered the mark, it is presumed valid. A defendant like Webster can rebut the presumption of validity if he used the trademark in commerce prior to Schussler’s registration of the mark. Here, Webster failed to rebut this presumption. Specifically, Webster added a “store” to his website only after the commencement of this lawsuit. Because Webster started this activity after plaintiffs registered the trademark, this activity was not “prior” use. In addition, Webster’s miscellaneous activities had not included any commercial component. An intent to eventually commercially exploit an idea is not sufficient to confer trademark rights or meet the “in commerce” requirement. On this basis, the district court granted plaintiffs' motion for summary judgment. More...

AZ Court Grants Injunctive Relief to Garduno in Restaurant Trademark Suit Versus Tortilla, Inc.

Garduno's of Arizona, LLC v. Tortilla, Inc.
No. CV08-1090-PHX-DGC,
U.S. District Court for the District of Arizona, 09/16/2008

Holding: In this dispute over the restaurant mark "Garduno's," the U.S. District Court for the District of Arizona issued injunctive relief to plaintiff Garduno's of Arizona, LLC. Defendant Tortilla, Inc. was the owner of this disputed mark, and licensed defendant to use it in the latter's chain of restaurants. Claiming that plaintiff had failed to pay royalties, defendant sent a letter purporting to terminate the license agreement. In response, plaintiff filed the instant suit, arguing that defendant should be restrained from terminating its right to use the "Garduno's" name. The district court granted plaintiff's motion for preliminary injunction, concluding that it had established a probability of success on the merits and the prospect of irreparable harm. In addition, the district court found that plaintiff was able to demonstrate that the hardship of forcing to close its restaurants outweighed the hardship defendant would incur if plaintiff would continue operating under the "Garduno's" name. More...

Fl Court Orders Auction Sale of Tabacalera Trademark to Satisfy Cuban Cigar's Judgment Lien

Cuban Cigar Brands, N. V. v. Tabacalera Popular Cubana, Inc., et al.
No. 02-23124-CIV,
U.S. District Court for Southern District of Florida, 09/16/2008

Holding: In this controversy relating to the "Popular" and "Tabacalera Popular Cubana" design and marks, the U.S. District Court for the Southern District of Florida ruled that a creditor could cause the seizure and auction sale of a debtor's trademarks to satisfy the latter's judgment debt. Here, the district court determined that defendants owned the marks in dispute and that plaintiffs Cuban Cigar Brands, N.V. and Max Rohr were able to comply with the requirement of Florida statute that as judgment holders, they must file an affidavit stating that they hold an unsatisfied judgment. With regard to the due process rights of the third-party trademarks licensee, the district court determined there was nothing in the record to indicate that any of the licensee's property rights would be directly altered if the trademark were to be seized and sold to the highest bidder at auction. Significantly, under the license agreement, defendants were entitled to sell or transfer their ownership rights in the trademarks without notifying the licensee in advance or obtaining its consent. On such basis, the district ordered the U.S. Marshall to seize the trademarks-at-issue for sale at a judicial auction to be applied toward the satisfaction of defendants' judgment debt. More...

UT Court Grants Injunctive Relief to Talisker Corp. in Row over "Talisman" Real Estate Mark

Talisker Corp. v. Jordanelle
No. 2:06-CV-1034 TC,
U.S. District Court for the District of Utah, 09/12/2008

Holding: The U.S. District Court for the District of Utah granted injunctive relief to plaintiffs Talisker Corp. and Talisker Deer Valley Corp. (collectively, "Talisker) in their trademark row with defendants Prime West. Both plaintiffs and defendants were engaged in real estate development, but the former sued the latter, claiming that Prime West's mark, "Talisman," infringed their own "Talisker" mark. The district court sided with plaintiffs because there was a strong and substantial likelihood that they would succeed in their infringement claim. Citing court precedents, the district court found that almost all factors used in determining likelihood of confusion, such as degree of similarity of the marks and intent of the alleged infringer, weighed in Talisker's favor. In this regard, an injunction would eliminate any confusion between the Talisman development and Talisker’s developments and facilities. Such an injunction would also enforce Talisker's marks. The district court therefore ruled that issuance of preliminary injunction to be effective immediately upon the posting of a bond.
More...

Trademark Law Commentaries

Following are Trademark Law Commentaries elaborating on the significance of the most important of the Trademark Law Summaries.

Page 1 of 2 of Trademark Law Commentaries  1 2 >

Tiffany v. eBay: A Trademark Owner Must Police Its Own Marks on the Internet

Tiffany (NJ) Inc., et al. eBay, Inc.
Posted: 09/26/2008

Commentary: In its significant opinion in Tiffany v. eBay, ___ F. Supp. 2d ___, 2008 WL 2755787 (No. 04 Civ. 4607) (S.D.N.Y. , July 14, 2008) the Southern District of New York rejected an effort by renowned jeweler Tiffany to expand the reach of contributory trademark infringement. Tiffany’s theory of secondary liability would have imposed liability for trademark infringement upon web-based intermediaries whose users infringe on trademarks by selling counterfeit goods. The opinion fills an important gap in the precedent of contributory trademark infringement, but it also emphasizes that trademark law is about consumer protection, not the suppression of speech. Tiffany has filed an appeal of the decision with the U.S. Court of Appeals for the 2nd Circuit. More...

Related summary: eBay Not Liable for Sale of Counterfeit Tiffany Jewelry on its Auction Site: NY District Court

Burck v. Mars: The Naked Cowboy Shall Ride On

Burck v. Mars, Inc.
Posted: 09/03/2008

Commentary: Robert Burck, a.k.a. The Naked Cowboy, an iconic street performer in Times Square, had the foresight to trademark his name and image. When the Mars company developed an ad campaign depicting its famous M&M candies in and around New York City, they chose to dress up one of the candies as The Naked Cowboy, although they failed to seek or obtain his permission first. Burck sued for trademark infringement, claiming false endorsement; Mars claimed fair use as a parody. Even though that big blue M&M looked nothing like Robert Burck, the M&M’s outfit, setting, and potential for consumer confusion was enough. On motions to dismiss, a federal court in New York decided that Burck’s false endorsement claims could proceed to the factfinder, as could Mars’ defense of parody. Burck v. Mars, Inc., ___ F. Supp. 2d ___, 2008 WL 2485524, No. 08 Civ. 1330 (DC), (S.D.N.Y. 2008). More...

Related summary: The Naked Cowboy’s Trademark Suit Against M&M Must Proceed to Trial, NY District Court Rules

JA Apparel v. Abboud: When a Name Is More Than Just a Name

JA Apparel Corp. v. Joseph Abboud, et al.
Posted: 07/17/2008

Commentary: When clothing designer Joseph Abboud had a falling out with the new management of JA Apparel, the clothing company he had founded, he tried to start a competing clothing line called “jaz.” He planned to use his name in jaz promotions, identifying himself as the designer of the new line. One little problem – Abboud had sold the exclusive rights to the use of his name for commercial purposes to JA Apparel a few years earlier. JA Apparel sought an injunction against Abboud, seeking to prohibit Abboud from using his own name to promote any fashion line. The magistrate judge agreed, finding that Abboud had forever contracted away the rights to use his own name to promote any fashion line other than JA Apparel. Though the contract issue was decisive, the court noted that Abboud’s use of his name to promote jaz would also result in a high likelihood of confusion and therefore constituted trademark infringement as well. More...

Related summary: NY District Court: Well-known Designer Can’t Use His Own Personal Name for His New Line of Clothing

Haute Diggity Dog Court Applies Tests in Determining What a Successful Parody Is

Louis Vuitton Malletier S.A. v. Haute Diggity Dog, L.L.C.
Posted: 02/25/2008

Commentary: The case Louis Vuitton Malletier v. Haute Diggity Dog, 507 F.3d 252 (4th Cir. 2007) was the first case an appellate court heard under the Trademark Dilution Revision Act of 2006 (TDRA). Though the TDRA generally favors companies like Louis Vuitton that try to protect their famous trademarks from dilution, the Haute Diggity Dog court affirmed the lower court’s decision against Louis Vuitton, finding that the defendant’s successful parody would not dilute the Louis Vuitton brand. More...

Related summary: 4th Circuit: No Likelihood of Confusion Between “Chewy Vuiton” and “Louis Vuitton” Trademarks

Custom Manufacturing v. Midway Services Case: No Likelihood of Confusion If There Is No Actual Perception

Custom Manufacturing and Engineering, Inc. v. Midway Services, Inc., et al.
Posted: 12/20/2007

Commentary: Component parts manufacturers will want to pay attention to this case. In Custom Mfrg. V. Midway et al, 508 F.3d 641 (2007), the 11th Circuit found that when there is minimal likelihood that a potential customer will see the allegedly infringing product, there is no likelihood of confusion, and therefore no infringement. The Court also narrowly interpreted the notion of who might be a potential “customer” for purposes of analysis of the “likelihood of confusion” element. More...

Related summary: No Likelihood of Confusion, 11th Circuit Declares in Custom Manufacturing v. Midway Services Case


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Companies Mentioned

Trademark Law

The following companies are mentioned in Trademark Law Updates:

NTU Electronics, Inc.

Midway Services, Inc.

MDCO, Inc.

Custom Manufacturing and Engineering, Inc.

Automated Engineering Corp.

Woofies, LLC d.b.a. Woofie’s Pet Boutique

Louis Vuitton Malletier S.A.

International Trademark Association

Haute Diggity Dog, LLC

JA Apparel Corp.

Houndstooth Corp.

Harringbone Creative Services, Inc.

Mars, Inc.

Chute Gerdeman, Inc.

Tiffany (NJ) Inc.

Tiffany & Co.

eBay, Inc.

McGills Glass Warehouse

General Conference Corporation of Seventh-day Adventists

Creation Seventh Day & Adventist Church

Super Duck Tours, LLP

Boston Duck Tours, L.P.

University of Wisconsin System

Phoenix Software International, Inc.

Dessert Beauty, Inc.

The Craig Allen Company, LLC

John Allan Company

Hansen Energy and Environmental, LLC

Field Sanitation Solutions, Inc.

Faith Unlimited, Inc.

WMS Gaming, Inc.

WPC Productions Ltd.

PartyGaming PLC

Talisker Corp.

Talisker Deer Valley Corp.

Prime West Jordanelle, LLC

Prime West Jordanelle II, LLC

Tabacalera Popular Cubana, Inc.

Monster Cable Products, Inc.

Max Rohr, Inc.

Audiovox Corp.

Cuban Cigar Brands, N.V.

Nasalok Coating Corp.

Qualcomm Inc.

Nylok Corp.

Broadcom Corp.

Future Lawn, Inc.

Schussler Creative, Inc.

Maumee Bay Landscape Contractors, LLC

Able Time, Inc.

Additional Resources

Trademark Law

Lanham Act of 1946 (pdf, 263kb)

Trademark Regulations (pdf, 734kb)

Trademark Manual of Examination Procedure (pdf, 12mb)

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