Trademark
Protecting brands and identifying marks.
Learning Objectives
- Define a trademark and what it protects.
- Explain the duration and renewal of trademarks.
- Describe the test for trademark infringement (confusion + bad faith).
- Identify what cannot be trademarked.
Explanation
A trademark protects brand names, logos, symbols, sounds, or colors that distinguish a company's goods. Trademarks last 10 years and can be renewed indefinitely. Infringement is judged by market confusion and bad faith.
Trademark law protects words, names, symbols, sounds, or colors that distinguish goods and services from those of competitors. The purpose of trademark law is twofold: first, it protects the public in the marketplace by ensuring that it gets what it pays for and wants to receive; second, it protects the owner — who has spent time, money, and energy bringing the product to the marketplace — against piracy and misappropriation.
Trademarks have been extended from single words to pictures, shapes, packaging, and colors. Some things may not be trademarked, such as common words that are merely descriptive (e.g. 'clock'). Federal trademarks are obtained, first, by use in interstate commerce, and second, by registration with the U.S. Patent and Trademark Office (USPTO). Federal trademarks are granted for a period of 10 years and can be renewed indefinitely, as long as the mark remains in use.
Disputes over federal trademarks involve establishing infringement. The test for infringement is twofold: market confusion and bad faith. Use of a trademark that creates confusion with existing trademarks, causes consumers to make market mistakes, or misrepresents the origins of goods is an infringement. In 2015, Multi Time Machine (MTM) sued Amazon for violation of its trademarks and confusing consumers looking to buy MTM watches — the court allowed the case to proceed to trial.
In addition, the intentional misuse of words and symbols in the marketplace to extort revenue from legitimate trademark owners ('bad faith') is proscribed. In 1995, Congress passed the Federal Trademark Dilution Act (FTDA), which created a federal cause of action for dilution of famous marks, and in 2006, the Trademark Dilution Revision Act (TDRA) allowed a trademark owner to file a claim based on a 'likelihood of dilution' standard.
Key Points & Important Terms
Key Points
- •Trademarks protect words, names, symbols, sounds, colors distinguishing goods.
- •Two purposes: protect the public and protect the owner.
- •Duration: 10 years, renewable indefinitely with use.
- •Infringement test: market confusion + bad faith.
- •Cannot trademark common descriptive words (e.g. 'clock').
- •FTDA (1995) + TDRA (2006) protect famous marks from dilution.
Important Terms
- Trademark
- Protects words, names, symbols, sounds or colors distinguishing goods; 10 years, renewable indefinitely.
- Market confusion
- The first prong of the infringement test: does the use confuse consumers or misrepresent origin?
- Bad faith
- The second prong: intentional misuse of marks to extort revenue from legitimate owners.
- Federal Trademark Dilution Act (FTDA, 1995)
- Created a federal cause of action for dilution of famous marks.
- Trademark Dilution Revision Act (TDRA, 2006)
- Allows claims based on 'likelihood of dilution' (blurring or tarnishment).