Fourth Circuit Dismisses “OBX” Trademark Infringement Suit Versus Bicast

Holding:

In this trademark infringement suit, the U.S. Court of Appeals for the Fourth Circuit upheld a district court’s ruling that the “OBX” mark had become generic or a geographically descriptive term without secondary meaning. Plaintiff OBX-Stock, Inc. (“OBX-Stock”) coined this term as an abbreviation for the region called “Outer Banks” of North Carolina, and obtained trademark registrations for selling goods and services. Plaintiff alleged trademark infringement and requested an injunction when defendant Bicast, Inc. began selling stickers with the text "OB Xtreme." The U.S. District Court for the Eastern District of North Carolina ruled against plaintiff. Specifically, the district court found that plaintiff lacked a secondary meaning as the term is associated with a geographic location. On appeal, the Fourth Circuit affirmed the questioned decision. The Fourth Circuit explained that OBX-Stock never attempted to associate the geographically descriptive abbreviation for Outer Banks with its products or itself, but rather with the Outer Banks as a location. The Fourth Circuit thus concluded that the district court did not err in holding that OBX is not a valid trademark.

Detailed Summary:

By way of background, James Douglas, the founder of OBX-Stock, invented “OBX” as an abbreviation for the “Outer Banks” of North Carolina. OBX-Stock began using the letters OBX on oval stickers for automobiles to indicate that the automobile was from or had visited the Outer Banks. Plaintiff attached these letters to souvenirs and other sundries to indicate that they were sold at the Outer Banks.

The Outer Banks of North Carolina is a geographical region consisting of approximately 200 miles of barrier islands off the coast of North Carolina. The Outer Banks, which encompasses several counties and numerous towns, is a…

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