TrademarkPriority.ppt

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TrademarkPriority.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * Trademark Priority Intro to IP – Prof Merges 3.15.10 Agenda Priority Federally Registered Marks Common Law trademarks Clam Corp. v. Innovative Outdoor Solutions, Inc., 89 PQ2d 1314 (D. Minn. Dec. 2008) Registered trademark for ice fishing huts made in particular shade of blue Held: No infringement; defendant’s huts were different shade of blue, had black roofs, and had defendant’s logo prominently displayed Hinsdale 630-325-8126 Naperville 630-355-2230 Wheaton 630-221-8300 Oak Brook 630-928-1510 Zazu Designs, Inc. v. L’Oreal 1985 2/86 4/86 6/12/86 1987 4/86 Covenant with Riviera; 1st Interstate shipment Meets with Chemists; sales in salon L’Oreal ZHD ZHD Files Suit 11/85; 2/86: Shipments to Texas Florida Federal Registration How do you establish priority? Common law origins: Must “win the race to the marketplace” – IPNTA 5th at p. 779 BUT: There are some detailed rules to this race . . . Lanham Act sec. 1, 15 USC 1051 “(a)(1) The owner of a trademark used in commerce may request registration of its trademark on the principal register hereby established . . . .” Caselaw: Balancing two factors “Prevent[] entrepreneurs from reserving brand names in order to [raise rivals’ costs]” – prevent “Rent Seeking” – IPNTA 5th p.779 “Allow[] firms to seek protection for a mark before investing substantial sums in promotion” – “Claim-staking” – IPNTA 5th p. 779 Sound familiar? Utility in patent law: prevent “wrong kind” of racing, but permit reasonable claiming Derivative works in copyright: allow owner to develop ancillary markets without fear of competition Use requirement Policy justifications Furthers purpose of trademark (I.D. source) Prevents warehousing of trademarks Provides notice to others Possible drawbacks May cause uncertainty re: when rights attach May result in loss of preparatory expenses A twist: “Intent to use” Allows “reservation” of right to a trademark But ONLY if reserved mark

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