The Green Jacket of the Masters Golf Tournament is Finally a Registered Trademark

The golf season is almost here for most individuals in the United States and, for golf enthusiasts, that means the Masters golf tournament. Last year, Tiger Woods won the iconic tournament in a dramatic return to the winners circle. However, while Tiger was putting on the green jacket as the winner of the Masters, a fight over that jacket was occurring with the United States Patent and Trademark Office (“USPTO”).

On February 21, 2019, Augusta National, Inc., applied to register the green jacket as a trademark. Initially, the USPTO denied registration of the green jacket with gold buttons because they deemed it a non-distinctive product design with functional elements, thus not eligible for registration. The USPTO subsequently denied registration because the jacket was deemed a decoration and ornamentation, not an inherently distinctive service mark, thus not eligible for registration. Regardless of the reasons, the green jacket that has been awarded to the winner of the Masters since 1949, when Sam Snead won the tournament, was initially deemed ineligible for trademark registration. Ultimately, the inherently distinctive green jacket prevailed in arguments with the USPTO and it received registration almost a year later.

For businesses, this illustrates a couple important points. First, that trademark law is used for trade dress, sounds, designs, and possible even smell, not just your standard logo or words. The second is that regardless of how distinctive and historical a trademark, the registration process requires expertise and knowledge of the overall prosecution process. Of course, the attorneys are Vandenack Weaver LLC are here to help with that prosecution, even if the trademark isn’t as famous as the green jacket. As for Tiger, we will have to wait and see if he can defend his title at the Masters.

 

VW Contributor: Alex Rainville
© 2020 Vandenack Weaver LLC
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Scandalous Trademarks: What You Need to Know.

The Lanham Act, which governs trademarks that are registered through the United States Patent and Trademark Office (“USPTO”), expressly prohibits the registration of marks that are deemed scandalous, immoral, or deceptive. This prohibition has historically prevented brands from using marks that could fall into this category, even if the mark is appropriate for the situation. However, in 2019, this prohibition was expressly overridden and these types of marks are now eligible for registration and protection under the Lanham Act.

During the summer of 2019, the United States Supreme Court determined that the prohibition against scandalous marks contained in the Lanham Act is an unconstitutional prohibition on protected speech. See Iancu v. Brunetti, 488 U.S. ___ (2019). Essentially, the Court decided that this amounted to viewpoint discrimination, in violation of the First Amendment. As a result, the USPTO is required to accept and consider scandalous trademark registration applications.

For businesses, artists, and musicians that utilize what was deemed scandalous marks by the USPTO as part of their operations, now is the time to act to protect the intellectual property. Although the USPTO hasn’t reported a rush applications that fit this category, now that these previously un-protected marks are protectable, it is expected that the volume of applications will increase.

VW Contributor: Alex Rainville
© 2020 Vandenack Weaver LLC
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Supreme Court to Determine Whether Fossil Must Turn Over Profits for Trademark Infringement

Fossil, Inc., the luxury goods retailer, could owe a manufacturer, Romag Fasteners, Inc., its profits for infringing on Romag’s trademark. The issue of whether Fossil owes Romag approximately $6.7 million dollars in profits gained by using the infringing trademark depends on whether the remedy of disgorgement of profits by a party infringing on a trademark requires willfulness by the infringing party.

The issue arises from Fossil using a magnetic snap fastener on some of its bags, purchasing some of the fasteners directly from Romag. However, Fossil also purchased some fasteners that looked nearly identical to those of Romag from another source, likely knowing that the fasteners were counterfeit and infringed on the trademark of Romag. Despite this knowledge, Fossil proceeded to use them anyways in “callous disregard” to the rights of Romag. In a moment of luck for Romag, an employee discovered the counterfeit products when visiting a Macy’s, finding the Fossil bags with the counterfeit fastener. Romag successfully argued that Fossil infringed on their trademark rights, but an open question regarding the remedy remains. The United States Supreme Court will determine whether the remedy includes the profits of Fossil, and such decision will be based on whether Fossil must willfully infringe on Romag’s trademark rights or if “callous disregard” is sufficient to entitle Romag to the profits of Fossil.

This case highlights the broader importance of protecting the brand and intellectual property of a company. Traditionally, this means taking active steps to ensure that the trademarks, copyrights, trade secrets, and patents are protected under applicable law, but it should also mean proactively verifying that the initiatives of the company don’t infringe on the rights of another. Failure to take consider trademark rights, as Fossil is learning the hard way, could result in disgorgement of profits.

VW Contributor: Alex Rainville
© 2020 Vandenack Weaver LLC
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Fortnite Under Siege

Fornite, the video game by Epic Games that has taken the world by storm, has been subject to a number of copyright infringement claims for dances performed by characters in the game. The dances causing problems include those that are well known and new viral sensations such as the “Carlton,” “Backpack Kid” flossing, “Milly Rock” dance, and Halloween “Pump It Up.” While most are relatively standard copyright infringement claims, alleging the characters doing the dances in the game infringe on the copyright, one claim, for infringement of the “Running Man” dance, has an interesting twist.

A recent decision by the United States Supreme Court mandated that a copyright owner must register the work with the Copyright Office prior to filing a claim for copyright infringement. As a result, many claims, including those against Epic Games, were withdrawn until the work could be registered. However, the owners of the “Running Man” dance elected to amend their claim, from a copyright infringement claim to trademark infringement claim. As a defense to trademark infringement, Epic Games is asserting that the claims are preempted by the Copyright Act. Although no one disputes that the name of a dance can be protected under trademark law, it is unclear whether a court will decide if the dance itself is protected; typically a dance is protected by copyright, as choreography.

This could open the door for more claims against Epic Games for dances used in Fortnite, but the more impactful consequence is the potential to further define the scope of what constitutes a trademark. If it is ultimately determined that a dance can be a protectable trademark, that would add to the list of protectable marks, which already includes color, scent, sound, designs, layouts, and words.

VW Contributor: Alex Rainville
© 2020 Vandenack Weaver LLC
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Intellectual Property: A Peloton Story

Most people know Peloton because of their flashy and controversial ads, as well as for revolutionizing the indoor cycling industry. However, as Peloton forges forward in the competitive fitness equipment industry and fights to keep its stock price above its IPO level, they have also been litigating trademark and copyright claims. Recently, a Federal District Court ruled in favor of Peloton in the trademark matter, which means, for now, Peloton will be able to retain its name.

In the case, Move Press, LLC v. Peloton Interactive, Inc., Move Press claimed that Peloton was infringing on their trademark rights because Move Press has a cycling publication named Peloton Magazine. Move Press had registered this trademark with the United States Patent and Trademark Office, and its use of the mark clearly preceded the use by Peloton. However, Move Press did not file the claim against Peloton for well over four years. As a result, Peloton argued that this claim was barred under an equitable legal theory known as laches, which means that Move Press waited an unreasonable period of time to bring the claim. Peloton had to argue laches, as opposed to a statute of limitations, because the Lanham Act, which governs registered trademarks, does not have a statute of limitations. The Federal District Court, after undergoing a rigorous review of the elements in the laches defense, ruled in favor of Peloton.

Had Move Press timely made the claim against Peloton, the result would have likely been in favor of Move Press and the public would know Peloton as something different. For business owners, this raises two important points. The first is that every registered trademark owner has an obligation to police their marks and, should they find someone infringing on their mark, timely bring a claim. The second is that a business, when selecting its name, branding a new product, or re-branding, should review its rights in the marks prior to making a significant marketing investment.

VW Contributor: Alex Rainville
© 2019 Vandenack Weaver LLC
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Domain Names and Trademarks: Enforcing Trademark Rights Against Domain Name Owners.

In the era of modern commerce, the success of a business is often driven by technology and its web presence, and it has become easier than ever to purchase a domain name from an internet domain registrar, making ownership available to the masses. This has increased the number of disputes that arise between an owner of a registered trademark and an owner of a domain name. While many of these disputes are in good faith and resolved through a negotiated settlement, many are arising because individuals are intentionally trying to “ransom” these domain names to the highest bidder. In these situations, it is important to know your rights under the Anti-Cybersquatting Consumer Protection Act (“ACPA”) and the Uniform Domain Name Dispute Resolution Policy (“UDRP”).

The ACPA was enacted in 1999 and designed to protect trademark owners from domain name cybersquatters, but it requires the trademark to be distinctive and/or famous prior to the purchase of the domain name, and the purchase to be in bad faith. Although the distinctiveness and fame element is governed by traditional trademark rules, courts haven’t isolated exactly what constitutes bad faith in this context. By way of example, in ZP No. 314, LLC v. ILM Capital, LLC, No. 1:16-cv-00521-B (S.D. Ala. Sept. 30, 2019), the court decided that bad faith did not include “parking” on the domain name. In this case, the infringing business purchased the domain name with the sole intent of profiting from the other businesses distinctive mark. However, since the mark did not become “distinctive and famous” until after the infringing business stopped actively using the domain name, the court determined that this was not bad faith, despite being critical of its own opinion on the matter.

An alternative remedy for a trademark owner is to seek protection through the UDRP, which is run by the Internet Corporation for Assigned Names and Numbers (“ICANN”). Similar to the ACPA, to obtain relief, the trademark owner must follow a specific process and meet the required elements. The process and the elements are different than the ACPA, but have significant overlap. For a business seeking to enforce its trademark rights against the owner of a domain name, the path to obtaining relief requires careful analysis and planning, especially because the courts continue to adjust to modern commerce.

VW Contributor: Alex Rainville
© 2019 Vandenack Weaver LLC
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Foreign-Domiciled Applicants; Why the Change at the Trademark Office?

By Alex Rainville

In a long anticipated decision, starting on August 3, 2019, foreign domiciled trademark applicants, registrants, and parties must be represented by a US licensed attorney in front of the United States Patent and Trademark Office (“USPTO”). This means that any foreign-domiciled person or business wishing to seek trademark registration with the USPTO must appoint a US licensed attorney to file and prosecute the trademark registration application. This may appear like an unnecessary burden, but it is part of fixing overarching administrative problems.

The USPTO is actively trying to modernize and streamline the trademark registration application process, to ensure timely review of applications and increase efficiency to final outcomes. One of the challenges to this process has been a large number of foreign-domiciled applicants submitting inaccurate, and often times fraudulent, materials. By way of example, a common problem with these applications is the specimens are either failing to meet the required standards or are outright fraudulent. This increases the time required for the USPTO to examine and process applications, resulting in an inefficient registration process for all applicants. By using a US licensed attorney, the USPTO expects that the applications will be more accurate and eliminate much of fraud, ultimately increasing efficiency.

For businesses wishing to protect its intellectual property, even those based in the US, it is a good idea to hire a trademark attorney. For example, the attorney will be able to guide you on what can be protected under the Lanham Act and the common law, and the best avenue to obtain registration or, more generally, protection for your intellectual property. They will also ensure you and your business are not defrauded by the multitude of USPTO imposters, and will know how to file complaints regarding these imposters with the Federal Trade Commission, for the Department of Justice to prosecute. Although this change of policy at the USPTO may seem unfair to foreign-domiciled applicants, the change may ultimately benefit all the businesses relying on the USPTO to protect its brand and intellectual property.

© 2019 Vandenack Weaver LLC
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The Defend Trade Secrets Act

Last summer, Congress enacted the Defend Trade Secrets Act (“DTSA”), which created a federal civil cause of action for misappropriation of trade secrets. Recently, various courts have started to interpret the DTSA, and determined that it does not preempt existing state law, but gives trade secret owners the option to enforce their claims and receive more consistent outcomes than they would in state court. Prior to the DTSA’s enactment, manufacturers and sellers had to bring trade secret misappropriation claims in state court, unless the parties could establish diversity jurisdiction or an independent federal cause of action.  Because state interpretations of the Uniform Trade Secrets Act vary in every state, consistent relief was not always possible.  For example, the definition of “trade secret” and the types of remedies differ across states. However, the DTSA applies nationwide and provides a uniform statute for trade secret owners to rely on in federal court.

The DTSA has important features that will impact trade secret owners.  Notably, it defines “misappropriation” and “trade secret”, which aids in consistent enforcement across state lines.  Additionally, it creates a civil seizure mechanism, which allows courts to order the seizure of property to prevent the propagation or dissemination of the trade secret, even before a formal finding of misappropriation is established and without notice to the alleged wrongdoer.  Last, a whistleblower provision provides immunity to employees from criminal or civil liability under federal or state laws for disclosing a trade secret to an attorney or government official for purposes of reporting or investigating a suspected violation of the law or filing a lawsuit made under seal.

Most controversial is the civil seizure provision, and courts are reluctant to permit seizures unless the plaintiff establishes necessity. Also controversial, federal courts are turning to state courts for guidance in interpreting the DTSA, thus, defeating its underlying purpose of providing uniformity. However, these issues are likely to be resolved over time. Since its enactment, it is estimated that less than seventy cases have been brought under the DTSA, but the law provides an important option for those pursuing trade secret claims.

© 2017 Vandenack Weaver LLC
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What Is Trademark Infringement?

An Intellectual Property FAQ with Mark A. Williams.

Put simply, trademark infringement is when you use somebody else’s trademark; however, it is really a lot more complex than that. If you use any mark or symbol to identify your goods and that confuses customers as to whether or not you might be associated with someone else’s goods. There are a lot of examples of this in industry, but basically, you cannot take a word and change how it is spelled or use a phonetically similar word to trade on the value of the other mark for your benefit. If you do that, you are infringing that other person’s rights and they have the right to not only stop you, but to potentially take the profits of your business that you gained from using that mark, for their own benefit.

© 2014 Parsonage Vandenack Williams LLC

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Is Federal Trademark Registration Valid Outside the United States?

An Intellectual Property FAQ with Mark A. Williams.

If you obtain a federal trademark within the United States with the United States Patent and Trademark Office, it will apply to anybody that wants to do business within the United States. So a foreign company that wants to come to your state or to the U.S. and do business, yes, it applies to them.

What it doesn’t do is it doesn’t stop people in another country from using your trademark. If you do business outside of the United States or if you do business on the internet with people in foreign countries, you really have to consider whether you need to obtain a trademark in those countries, or whether you have to seek what is called Madrid Protocol protection, which is something akin to a treaty between several different countries that will extend your U.S. trademark protection to those countries.

© 2014 Parsonage Vandenack Williams LLC

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