Posts Tagged ‘likelihood of confusion’

I’ve been noticing something a lot lately.

Maybe it’s because I’m a fan of superhero stuff and/or because I practice intellectual property law. Maybe due to all the superhero movies, and the fact that people not only don’t mind being associated with comics, they would LOVE some of that comics mojo to rub off on their business.

Sometimes, a company taking an item from an existing comic and using it to market their business. For example, a new mom and pop pizza chain near my house recently distributed a promotional flyer using Superman, Batman, Spider-Man, and some other superheroes all enjoying their pizza. You can bet they didn’t have a license for those trademarks. That’s a one-off that realistically caused little if harm and probably won’t be noticed. But I’ve also noticed other companies utilizing what familiar comic book-related names. For example, there’s Wayne Enterprises, which has nothing to do with Bruce Wayne. Then there’s Stark Industries, which doesn’t make flying robotic armored suits (although they do manufacture “seismic gun compressed air supply systems”). There are lots of LexCorps out there. I’m not saying they infringe (most of them probably don’t). But when does this cross the line and become infringement under the Lanham Act?

This has been litigated before. For example, in a highly publicized 2004 case, DC Comics sued Kryptonite Corp. (KC), a bike locks and accessories manufacturer alleging, among other things, trademark infringement and dilution. KC countered that DC’s trademark registration should be cancelled. DC and KC had licensing agreements over the word “Kryptonite“, but KC was prohibited from using the word “super” and other things associated with the Superman universe, in marketing its products.

For the trademark infringement claims, the plaintiff must demonstrate (1) that it has a valid mark that is entitled to protection under the Act and (2) that there exits a likelihood of confusion that consumers will be misled or confused as to the source of the goods in question.

1. Ownership of a valid mark

KC argued that DC Comics’ use of Kryptonite does not qualify for protection under the Lanham Act because DC Comics has not used Kryptonite as a brand name or trademarkto indicate the source of its goods. KC argued that DC Comics does not own the trademark in Kryptonite because DC Comicshas never used the mark in commerce the only evidence of use is as a story element. KC argues that Kryptonite is simply a fictitious substance that appears in the Superman story for narrative—not source identifying purposes. According to KC, Kryptonite is one small part of the overall content of a comic book story used in the story to describe a fictitious substance and enhance the story -not to identify or designate the source of a real product or service. KC contends that the word “Kryptonite” (except as a name for KC’s locks and other products) has no commercial meaning identifying the source of goods or services.

DC Comics,countered that it has made significant use of Kryptonite as a trademark on products other than comic products and motion picture products. For example, DC Comics argues it has used Kryptonite with merchandise such as toys, apparel, books, calendars, games, greeting cards, novelty items, and video games. In addition, DC Comics argues that it owns two trademark registrations for the use of Kryptonite on t-shirts which are incontestable.

This was not a close call. The Court held that DC Comics owned a trademark in Kryptonite. The law holds that:

where the product sold by plaintiff is ‘entertainment’ in one form or another, then not only the advertising of the product but also an ingredient of the product itself can amount to a trademark protectable under § 43(a) because the ingredient can come to symbolize the plaintiff or its product in the public mind.

DC Comics, Inc. v. Filmation Associates, 486 F.Supp. 1273, 1277 (S.D.N.Y.1980).

Protectable “ingredients” include the names and nicknames of entertainment characters (“bionic” man and woman), as well as their physical appearances and costumes, but not their physical abilities or personality traits.

For example, in an earlier case, DC Comics, Inc. v. Powers, which is directly on point, an infringer attempted to publish a magazine under name “The Daily Planet”—the same name as the fictitious newspaper that employs Superman’s alter ego, Clark Kent. Apparently, the Court did not find that DC Comics had used “The Daily Planet” on a product in the traditional trademark sense. Still, the Court found that, because over time there had grown such a close association between the “The Daily Planet” and Superman, that DC Comics Owned protectable rights in “The Daily Planet.”

The same goes for Kryptonite. The Court held, “Kryptonite is an ingredient of an entertainment property (Superman) and is a protectable symbol under the Lanham Act. Kryptonite is closely associated with Superman resulting from DC Comics’ 60 years of use of Kryptonite with Superman . . . For example, several recurring characters created by DC Comics are based entirely around Kryptonite: the Kryptonite Kid, the Kryptonite Man, and Metallo (a villain powered by Kryptonite).” The Court found that DC Comics had, for many decades, used Kryptonite to sell all manner of schlock, thereby strengthening its claim on the trademark.

Therefore, because Kryptonite, is so intimately associated Superman, it serves to identify DC Comics’ products. Kryptonite, its green glowing appearance, and other related indicia thus represent trademarks of DC Comics.

2. Likelihood of Confusion

KC argue there is not a likelihood of confusion as to the origin of the goods. The question is whether, as a result of KC’s mark being in the marketplace, numerous ordinary purchasers are likely to be misled or confused as to the source of the product in question. Factors to consider in determining whether a likelihood of confusion exists:
  1. the strength of DC Comics’ mark;
  2. the similarity of the DC Comics’ mark;
  3. the competitive proximity of the products;
  4. the likelihood that the DC Comics will “bridge the gap” by entering KC’s market;
  5. actual confusion between the products;
  6. good faith on KC’s part;
  7. the quality of KC’s product; and
  8. sophistication of buyers.

 

The Court held that there were triable issues. In cases with this many intent-based factors, summary judgment is generally unlikely, and trial (or, more realistically, settlement via a licensing agreement) more likely. Be careful using comic trademarks. The best advice is to talk to a lawyer first. You don’t want to build up a brand, and then have to change everything midstream — or, worse, get involved in costly litigation with a deep pockets plaintiff.

By: Mark R. Malek

Walgreens filed a trademark infringement lawsuit against Wegmans Food Markets over use of a “W” logo that Walgreens alleged to be so similar in nature that it would likely cause consumer confusion with the “W” logo that was registered as a trademark to Walgreens.  The claim was recently settled, and Wegmans has agreed not to use the “W” logo (source).

In a trademark infringement lawsuit, there is not necessarily a need to prove that actual confusion exists.  In other words, there is no need to show that one consumer was confused as to the source of the goods and services being offered.  Instead, there is a test that can be applied with several factors in order to determine whether or not there is a “likelihood of confusion.”  I came across a good post that points out the test for determining whether or not there exists a likelihood of confusion.  The very best quote in this post notes that when “determining likelihood of confusion, courts evaluate several factors. No one factor is determinative in and of itself, and how important one factor is over another is very case specific.”  Now you can understand why litigation takes so very long and can be so very expensive.  While one side may be arguing the merits and strengths of some of the factors, the other side is arguing how the other factors are not met and that, therefore, there is no infringement.

The factors that are analyzed include whether or not the marks compete with one another, whether or not they are used in the same channels of trade, whether or not the goods are closely related, whether or not the infringer intended to mislead the consumer, the similarity of the marks, whether or not the customers of the company are overlapping and whether or not there has been actual confusion.  Although actual confusion is only one of the factors, I believe it to be somewhat important.  Then again, there is not likely to be actual confusion standing alone, and only one instance of actual confusion is likely not enough to win the day.

Wegmans probably made a good choice.  There has to be a business decision that was made at some point.  I suspect that in the not too recent past, Wegmans, like many companies nowadays, went through some sort of marketing overhaul and someone probably suggested that it may be time to “update the logo.”  I also suspect that the person who suggested such a thing was shot down pretty quickly.  Now, Wegmans can revisit the rebranding.  All in all, this will probably wind up being a good thing for Wegmans – gives them a chance to “reinvent” themselves.  Please stay tuned – I will post more articles on the tests necessary to prove trademark infringement.

Gravatar Iconby Mark Malek

Do you remember that just a few days ago, in my previous article, I promised that I would continue to update you on the Facebook lawsuits that have recently been filed to prevent anyone from using either the word “Face” or “Book” in any way shape or form?  Well, as promised, here we go.  Back in August, Facebook sued Teachbook for trademark infringement claiming that Teachbook.com was riding on the fame of the Facebook mark (source).  This is another trademark dilution case.  Where is this all really going though?

Why must we fight over trademarks?

This is yet another continuation of Facebook’s war against anyone who uses the term “Face” or “Book” within any type of vicinity of each other. I appreciate that Facebook is pretty popular, but I also appreciate that Facebook is pretty new to the trademark game.  Allow me to compare this situation to another popular trademark – McDonalsd.  I have some respect for why McDonalds goes up in arms when anyone uses a “Mc” anything, but have you noticed that they have done it the right way.  McDonalds doesn’t go after anyone and everyone that uses “Mc” in any way (they’d have a tough go at it with the Irish, but I digress).

McDreamy himself!

For example, I know that the show, Gray’s Anatomy went through a season or two where some doctors were nicknamed using “Mc” – ok, I admit it, I watch the show, and know that they used “McDreamy” and “McSteamy” to nickname two of the doctors.  What do you want from me?  It’s a pretty good show!

Unlike McDonald’s, however, Facebook has unleashed their lawyers on anyone that uses “Face” or “Book” anywhere near the internet.  I think they may be taking it a bit too far.  I took a look at the Teachbook site and it certainly is a type of social networking site.  It is a self-proclaimed “professional community for teachers.”  Maybe this is a place where teachers can swap ideas.  Possibly even a place where some teachers may be of assistance to other teachers, where different styles of teaching can be shared, or even where lesson plans can be swapped.  I’m not a teacher, but I certainly think that this could do nothing more than help our students.

Helping Schools Makes Me Laugh!

I find it odd that Facebook, allegedly founded by a guy who just donated $100million to a school system, would come down so hard on a group of teachers.  Please do not misunderstand me.  I realize that Teachbook is not a site where just a bunch of teachers are swapping ideas.  Clearly, someone is trying to make money off of it, as is evident by the several banner adds that are readily visible on the site.  From a purely legal perspective, Facebook may have a point.  With that in mind though, I do not think that their fame in the “Facebook” mark automatically entitles them to the exclusive rights to the words.  Is the intent here to remove these words from the dictionary for anyone else to use?

Let me send a quick appeal to the PR department over there at Facebook.  Cut a deal with the Teachbook folks that allows the site to operate as if they are supported by Facebook.  Maybe allow teachers to link their Facebook profiles in teacher groups via Teachbook.  There could even be a great big banner on the front of Teachbook that reads a little something like “Facebook proudly supports the education of our youth and encourages teachers to share their successes on Teachbook.”  Who knows – maybe when someone new goes on to Teachbook, they can start a profile via Facebook.  Doesn’t that just drive more traffic to Facebook, thereby making it more attractive to advertisers and possibly increasing revenue?

Apparently, Greg Shrader, of Teachbook, has vowed a trademark battle with Facebook.  Really?  I don’t know how well Mr. Shrader may be funded, but I highly doubt it is as good as the funding that Facebook has.  I am glad that Mr. Shrader is going to fight Facebook’s claims, but Facebook might just try to outspend him in litigation.  All the best to Mr. Shrader in his fight.  I do, however, hope that Facebook decides to settle this one and also decides to find a way to live with Teachbook.

I guess my point is – just because you can sue someone for trademark infringement doesn’t necessarily mean that you have to.

by Aaron B. Thalwitzer

This was posted recently on a popular blog. It’s a tricycle vehicle called the Air Pod (see the awe-inspiring video here). Let’s just say it makes a Nissan Cube look manly. Cube jokes aside, could Apple ask for a better case to line ‘em up, take ‘em down on a cease-and-desist? Whether such a case would either serve to broaden or restrict the scope of its trademark rights is anyone’s guess; we’ll wait and see.

On a more serious note, this is a car that actually runs on compressed air. I, for one, am concerned that people everywhere would have universal access to inhalants of this magnitude. Duster is no laughing matter!

This isn’t the first time a company wanted to call something an “Air Pod.” In 2008, BlueAir Inc., a Delaware company specializing in air purification, sued Apple to get them to stop raising hay over the airPOD name. BlueAir used the airPOD name to market its desktop-based air filtration systems.

BlueAir’s attorneys argued, “There is no reasonable likelihood of confusion, mistake, or error in the marketplace for persons of even the lowest perceptive capabilities who are seeking an iPod music player considering or buying an airPOD desktop air cleaner instead.”

I asked someone with the “lowest perceptive capabilities” and it turns out BlueAir’s attorneys were right! Air purifiers are not iPods!

But wait, there’s more! In 2009, Air-Pod Ltd. named its drone helicopter the “Air-Pod.” Apple cease-and-desisted, and they’re still fighting it out.

On this most excellent Monday, check out the next stop on Apple’s litigaiton superhighway. First stop, a “Pod” video projector. Check out Wikipedia’s article for a not-so-brief history of other Apple litigation.

by Jason Fischer

The North Face logoClothing producer, The North Face (TNF), recently got a lesson in how bad trademark enforcement decisions can make a company look silly.  It seems a St. Louis teen thought that it would be amusing to create a clothing line parody, calling it “The South Butt,” — south being the logical opposite of north and butt being… well… you get the idea.  TNF was not amused, however, and they set their attorneys to attack mode, sending a cease and desist letter to the college freshman (source).

TNF’s letter asserted that use of the “South Butt” logo (pictured below) constitutes an infringement of their own federally registered trademark (pictured above).  On its face, TNF’s claim is not so unreasonable.  As any trademark owner (who has a decent attorney) can tell you, trademark rights can be lost if you don’t enforce them.  TNF must, in order to maintain its ability to sue legitimate infringers, actively look for unauthorized uses of its logo.  However, owning federal trademark rights does not mean you can stop every use of your mark that you don’t like.  Federal trademark law was created to prevent consumers from becoming confused about the source of goods, not give complete exclusionary rights in logos, words, and phrases.  It certainly wasn’t meant to give companies the power to stifle criticism — a point that corporate attorneys seem to frequently fail to explain to their clients.

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TUESDAY, FEBRUARY 07, 2012

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