Intellectual Prop.

1. Industrial Prop. & Intellectual
   1. Creative minds & subst. matter merged 2 protect invention, writing, & symbol
2. Policies & Tensions Underlying All IP's
   1. Priv. prop. rts v. allowing max access
   2. Free competition v. protecting invention
   3. Econ. int. v. prop. int.
   4. Not wanting 2 reinvent by copying v. incentive 2 create by protecting IP
3. Int'l Consid's
   1. Imp. Treaties
      1. Berne 4 copyrt
      2. Paris 4 patent & trademark
      3. GATT w/TRIPs agmt
   2. Two Concepts
      1. Reciprocity is treating other nationals as well as they treat ours
      2. Nat'l treatment is treating other nationals @ least as well as we treat ours
   3. Prob's
      1. Enforcement
      2. Not uniform
      3. Dif. policies in dev'ing v. dev'ed world
4. Topics Cov'ed
   1. Trademark (T)
   2. Unfair Competition
   3. Trade Secret (TS)
   4. Patent (P)
   5. Idea Protection
   6. Copyrt (C)

Intro

1. Goals
   1. Protect pub. from confusion
   2. Protect owner, good will, control prod. reputation
   3. Smaller part of unfair competition by looking 2 symbol 2 see if used 2 create confusion
2. Fn
   1. Indicate Source
   2. Guarantee Consistent Quality
   3. Advertise

Types of Mark

1. Trademark
   1. Word, name, symbol, device / combo
   2. ID prod.
   3. Indicate source
2. Servicemark
   1. Word, name, symbol, device / combo
   2. ID serv.
   3. Indicate source even if unknown
   4. Promotional activity / form of ad not serv. (In re Dr. Pepper Co.)

Use Reqt

1. 1st 2 Use, 1st T
   1. Not 1st file sys.
   2. Must use mark in interstate commerce but affecting ICC is suff.
2. Bona Fide Use
   1. Can B modest as long as real & commercial (Blue Bell v. Farah)
3. Priority Use Sys. C/L
   1. Might not always get priority by equity, tight X frame, & both parties poaching on already existing T (Manhatten Ind.)
   2. Dif. marks
      1. If T descr. mark then need 2 acquire 2ndary meaning / disctiveness by use, not priority
      2. If inherently distinctive like fanciful, arb., then priority 2 1st use
   3. Dif. uses
      1. Ownership use need bona fide use & subst'l use in cnxn w/prod. in comm'l mkt 4 ownership & priority
      2. Token use in commerce 2 support reg. but prob's in protection

Fed. Lanham Act Amended 4 Reg.

1. Section 1)a: Applic. by Use
   1. Apply 2 qualif. 4 reg.
   2. Bona fide use in commerce so ord. use in trade, not 4 reserving
   3. Priority on 1st use date
2. Section 1)b: Applic. by Intent 2 Use
   1. Gets rid of token use
   2. Bona fide intention
   3. Good faith by use in commerce
   4. Same rev. but gets notice of allowance, not reg. after 30 days
   5. Limited 2 1st 6 mo's & can extend 3 yrs 4 good cause
   6. No jud. remedy 4 infring. on notice until applic. files decl. saying actual use started
   7. Priority date is filing date b/c constructive use by §7)c
3. Suppl Register by §23 L Act
   1. US reg. 4 for. reg. so ez'er 2 get & reg. not dep. on use
   2. Need use in commerce
   3. can't reg. if unreg'able under a-d
4. For. Reg. 4 Use §44 L Act
   1. Paris, GATT & nat'l treatment apply but also give another option
   2. By §d, can get US T w/o using in US by filing date in for. country where for. country is priority date
      1. US applic. must B w/in 6 mo. after filied in for. country
      2. Conform nearly as pract'able as L act, incl'ing bona fide intent
      3. Used in rsbl X / subj. 2 cancel 4 abandonment where nonuse is prima facie evid.

Qualif. 2 Reg. Mark

1. Anything Disting'ing, ID'ing Good / Serv.
   1. Scent (In re Clarke, sewing thread)
   2. Sound (NBC)
   3. Ornamental design if indicate origin, not mere decoration
   4. Color
      1. Only when acquired 2nd meaning 2 ID & indicate source
      2. Rejected color depletion arg. & shades arg. by Sup Ct
2. Distinctiveness of Mark
   1. Req'ed
      1. Distinctive by itself / ass'n
      2. Pt 2 origin
   2. 2ndary Meaning
      1. Only by using mark so long, primary rel. in buyer's mind
      2. Evid. can B consumer survey, circ'al evid., & consumer as W
3. Hierarchy 4 Distinctiveness: From No Protection 2 Lots of Protection
   1. Generic
      1. Incapable of disting'ing goods, even if misspell
      2. Generic in subst'l pub. mind (Murphy Bed)
      3. Can B cancelled any X after reg. if become generic
      4. D has b/p 2 show generic
      5. Mark not generic b/c id's unique prod. & serv. (§14)3)
      6. Purchaser perception is test, not consumer motivation
   2. Descriptive
      1. Descr's prod., feature, charact, of prod.
      2. Protect only if 2nd meaning (§2e) & f)
      3. Others can use word before 2nd meaning & 4 purely descr.
      4. Narrow range of protection
      5. Can't apply intent 2 use b/c need 2nd meaning by use
      6. Surnames
         1. Need 2nd meaning 4 primarily merely surname
         2. Protection low so later person may use so long as no confusion
      7. Geog Marks
         1. Can't reg. if primarily geog. descr. & merely descr. w/o 2nd meaning §2)e)2
         2. Can't use prim'ly geog'ly deceptively misdescr. mark §2)e)3 even w/2nd meaning after 12/8/93
      8. Deceptive (§2)a) v. Deceptively Misdescr. (§2)e)1) (Budge)
         1. False so misdescr. qual, fn. composition, / use of good +
         2. Believably false so buyers believed (deceptively misdescr. so can reg. after 2nd meaning) +
         3. Material so affect dec. 2 buy (deceptive so no reg. @ all)
      9. Geog Indication of Wine (§2)a)
         1. Can cont. 2 use if used before 1/1/96 but no new ones
      10. No Immoral / Scandalous §2)a
          1. Itself scandalous, not attached 2 part. good
   3. Sugg
      1. Req's buyer 2 use imagination 2 make link btwn mark & good
      2. Protectible imm'ly w/o 2nd meaning
   4. Arb. / fanciful
      1. Not descr. any feature / compl'ly made upt
      2. Strongest protection
4. Fn'ality Doc.
   1. Unprotected Even w/2nd Meaning 2 Address Monopoly
   2. Fn'al things
      1. Gen'ly 4 shape, config., color, etc.
      2. Perfume / cologne fn'al
      3. Color fn'al s.t.'s(black boat motor, green farm machine, etc)
   3. Utilitarian Fn'lity
      1. Design utility is superior design essential 4 effective competition
      2. Only few alt. design available b/c econ. in mfgr / use
   4. Aesthetic Fn'lity
      1. Not focus on consumer appeal & salability but on competition (Wallace) by looking @ if other design available, nec. 4 competition, & excl. competition from mkt
5. Prior Use of Mark: §2)d
   1. Can't Reg. Mark Resembling Reg'ed Mark / Trade
      1. When likely 2 cause confusion, mistake, / deceive
      2. Agmt may dispel confusion (Applic. of EI Du Pont)

Rts in Mark

1. Infringement
   1. Stand.
      1. Likelihood of Confusion, Mistake, / Deceive (§32)
      2. For
         1. Goods
         2. Source / origin
         3. Sponsorship / auth.
      3. At Pt. of Buying / Consumer Confusion
         1. Appreciable # but not maj.
         2. Few protect if potential consumer confused (Ferrari)
   2. Factors 4 Noncompeting Goods (Sleekcraft Boats, Polaroid)
      1. Strength of mark
         1. Continuum of descr. 2 arb.
         2. More 2nd meaning can strengthen mark
      2. Proximity of goods / similarity of goods
      3. Similarity of marks
         1. Sight, sound, & meaning w/emphasis on sight & sound
         2. Willing 2 look beyond mark 2 surr'ing area
      4. Actual confusion evid. counts if exist
      5. Mkting channels
      6. Type of goods & purchaser care
      7. Intent counts if bad
      8. Likelihood of expansion
   3. Defense & Ok Use
      1. Can use others' T in ad if not likely 2 confuse (Channel)
      2. Fair use defense 4 descr. & surname §33)b)4 ok's
         1. Use otherwise as T / purpose of descr'ing own good
         2. Fair & in good faith
2. Parody
   1. Parody Modifies & Relaxes T Infring. Test
      1. Protect free speech v. pub. int. of avoiding consumer confusion
      2. Gen'ly not find likely confusion even if not aff. defense
   2. Only 4 Parody of Artistic Expression
      1. What's being parodied should B artistic exp. w/intellectual content (Cliff Notes, Omaha v. Novak)
3. Survey Evid. in T
   1. Used 4
      1. Likelihood of pub. confusion
      2. 2ndary meaning
   2. Used When Econ'ly Ok
   3. Reqts 4 Proper Survey
      1. Done by somebody else
      2. Geog'ly / comm'ly universe 4 class of persons whose S/M @ issue
      3. Pick propr rep. of universe as sample by expert testimony
      4. Rt survey methods of indep. interviews, etc.
4. Geog. Rts & Boundaries
   1. C /L Protection
      1. Sr user only rts w/in area where actually used mark + zone of expansion
      2. Jr. user can cont. 2 use own geog. mark if in good faith (notice)
      3. Remote good faith user can stop sr. user from using mark in jr's area + from entering mkt
      4. But equity det's esp'ly if sr. user becomes nationwide
   2. L Act
      1. No distinction on sr. v. jr. user but only who reg's 1st
      2. Sect. 2 gives nationwide priority 4 whoever reg's / files applic's 1st - defense of good faith so no remote good faith user (Dawn Donuts)
      3. Elements 4 defense of cont. use §33)b)5 when A uses before B reg's
         1. Cont. use of mark
            1. Must B actual use & ad. isn't use
         2. Priority of reg. date if before 11/16/89 or applic. date on / after 11/16/89
         3. If use w/o actual / constructive knowledge (good faith)
      4. If can meet defense, then can stop B from entering A's area & A frozen in area by applic. / reg.
5. Assignment & Abandonment
   1. Assign (Money Store)
      1. Must incl. transfer of goodwill
         1. No in gross T transfer
         2. Focus on if assignee used mark in similar good / serv.
      2. Sham trxn
      3. No abandoned mark
   2. Abandonment: §45
      1. Use discton'ed w/intent not 2 resume (§45)1)
      2. Non use of 3 consec. yrs is prima facie evid. (§45)1)
      3. Any conduct & omission cuases mark 2 lose sig. (§45)2)
         1. If naked license, abandon but adeq'ly controlled license not abandon
6. Proced. & Incontestibility
   1. Applic. Proced.
      1. Ex parte proceeding screens obvious marks on §2)e / 2)d
      2. If not ok can make correction / fight
      3. If ok, publ. in official gazette so anybody can file opposition w/in 30 days on grounds of §2 L Act
      4. Then issue reg. 4 use & notice of allowance 4 intent applic's
      5. Sec 14 allows opposer 2 file cancellation on any ground that would've barred reg.'ion initially but higher b/p
      6. Can go 2 dist. ct. / 2 fed. circ. 4 jud. rev.
   2. Incontestibility Limits Cancellation
      1. After 5 yrs, §15 says T incontestible except 4 generic grounds & §2)a-c
      2. Incontestibility is concl. evid. of T ownership & excl. rt (§33)b)
      3. Can B used defensively b/c can't cancel / enjoin mark
      4. Can also offensively use (Park N Fly)
      5. Circuit split on using incontestibility as evid. of strength of mark 4 likelihood of confusion test
7. Remedies
   1. Obtain Jgmt §34
   2. L Act §36
      1. Phys. destruction of infringing material / order 2 surrender all
   3. L Act §35
      1. Damage
         1. If show D cost lost sales
         2. Injunction given if satisfy equity b/c good faith
         3. Can assess up 2 3X's damages
      2. D's Profit
         1. Need wrongful intent (but not in Fleishman) & hardest 2 get
         2. Gross sales - deductions = profit
         3. P shows D's gross sales & D shows deductions by cost / proof
      3. Atty fee 4 prevailing party in exceptional cases

This material is copyrighted by the author. Use of this material for profit is strictly prohibited without written consent from the author.

12/2/1996

Ms. Haeji Hong

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