Law 227: Trademarks & Unfair Competition Acquisition, Priority & “LOC” June 9, 2009 Jefferson Scher.

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

Acquisition, Priority & “LOC”

June 9, 2009

Jefferson Scher

TM & Unfair Comp — Day 3TM & Unfair Comp — Day 3AgendaAgenda

•Acquisition and PriorityType of use required to acquire rightsQuantity and nature of useConcurrent use based on geographic

remoteness

•Likelihood of ConfusionFactors weighed

Ownership and PriorityOwnership and PriorityKey PrinciplesKey Principles

•When Rights Commence — RS §9Word, name, symbol, device, or other

designation (or combination thereof)Distinctive of a person’s goods/servicesUsed in a manner that identifies those

goods/services and distinguishes them from the goods/services of others

Acquiring Trademark RightsAcquiring Trademark RightsUse That Distinguishes — HypotheticalUse That Distinguishes — Hypothetical

FRONT REAR

Acquiring Trademark RightsAcquiring Trademark RightsFederal Trademark LawFederal Trademark Law

•Common Law scope of protectionActual trading areaReach of advertisingReach of

reputation

The Stork Club

Stork Club

Acquiring Trademark RightsAcquiring Trademark RightsFederal Trademark LawFederal Trademark Law

•BOZO’S pit BBQ restaurant?

Acquiring Trademark RightsAcquiring Trademark RightsWorking Through A HypotheticalWorking Through A Hypothetical

•Sports Galore hypothetical (p. 126) — what rights at each point?Jan: Form company, register domainFeb: T-shirts mfd w/name, not yet soldFeb: Web site contest to choose logoMar: Marketing campaign launchedApr: Site launch (uses logo), T-shirt

sold

Likelihood of ConfusionLikelihood of ConfusionThe Multiple Factor TestThe Multiple Factor Test

•Polaroid (2d Cir.)Strength of

plaintiff’s markSimilarity of

marksProximity of

goods*

•Sleekcraft (9th Cir.)Strength of plaintiff’s

markSimilarity of marksProximity of goodsMarketing channels

used (#7)* May include consideration of the channels through which the goods are sold and promoted.

Likelihood of ConfusionLikelihood of ConfusionThe Multiple Factor TestThe Multiple Factor Test

•Polaroid (2d Cir.)Likelihood that

plaintiff will bridge the gap

Actual confusionDefendant’s

good faith in adopting the mark

•Sleekcraft (9th Cir.)Likelihood of

expansion of product lines

Actual confusionDefendant’s intent

in adopting the mark

Likelihood of ConfusionLikelihood of ConfusionThe Multiple Factor TestThe Multiple Factor Test

•Polaroid (2d Cir.)Quality of

Defendant’s product or service

Sophistication of the buyers

Etc.

•Sleekcraft (9th Cir.)

Degree of care exercised by purchasers

Etc.

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

•AMF used SLICKCRAFT and this logo:

•Sleekcraft Boats used SLEEKCRAFT and this logo:

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

Similarityof Marks

Proximity of Goods

Likelihood of ConfusionLikelihood of ConfusionAnalogy to Economics 101Analogy to Economics 101

Price

Quantity

Nonexistentdemand

Likelihood of ConfusionLikelihood of ConfusionAnalogy to Economics 101Analogy to Economics 101

Price

Quantity

Oprah endorses your productOprah endorses your product

Severed finger found in your productSevered finger found in your product

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

Similarityof Marks

Proximity of Goods

InfringementZone

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

Similarityof Marks

Proximity of Goods

Weak markWeak mark

Strong markStrong mark

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

Similarityof Marks

Proximity of Goods

Heightened CareHeightened Care

Likelihood of ConfusionLikelihood of ConfusionThe The SleekcraftSleekcraft Case Case

Similarityof Marks

Proximity of Goods

InfringementZone

Weak markWeak markHigh customer careHigh customer care

LogoLogo

TM & Unfair Comp — Up TM & Unfair Comp — Up NextNextTopics and Reading for Day 4Topics and Reading for Day 4

•Green Team “On”

•More LOC Cases and ContextsChapter 6, pp. 335-370, 403-417Supplement pp. 40-42