United States trademark law

Trademarks were traditionally protected in the United States only under State common law, growing out of the tort of unfair competition. In 1946, Congress passed the Lanham Act (15 USC §§ 1051 - 1127), which creates federal protection and registration for trademarks, administered by the United States Patent and Trademark Office ("USPTO"). State law continues to add its own protection, complementing the federal system.

Contents

DuPont factors

The scope of a trademark is determined by whether there is "likelihood of confusion" (note that this is different from whether there has been any actual confusion), between that trademark and another trademark. Likelihood of confusion is determined by reviewing 13 factors, often called the DuPont factors:

We determine likelihood of confusion by focusing on the question whether the purchasing public would mistakenly assume that the applicant's goods originate from the same source as, or are associated with, the goods in the cited registrations. [citation]. We make that determination on a case-by-case basis, [citation], aided by the application of the factors set out in In re E.I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973). Those factors are:
  1. The similarity or dissimilarity of the marks in their entireties as to appearance, sound, connotation, and commercial impression.
  2. The similarity or dissimilarity and nature of the goods . . . described in an application or registration or in connection with which a prior mark is in use.
  3. The similarity or dissimilarity of established, likely-to-continue trade channels.
  4. The conditions under which and buyers to whom sales are made, i.e. "impulse" vs. careful, sophisticated purchasing.
  5. The fame of the prior mark . . . .
  6. The number and nature of similar marks in use on similar goods.
  7. The nature and extent of any actual confusion.
  8. The length of time during and the conditions under which there has been concurrent use without evidence of actual confusion.
  9. The variety of goods on which a mark is or is not used . . . .
  10. The market interface between the applicant and the owner of a prior mark . . . .
  11. The extent to which applicant has a right to exclude others from use of its mark on its goods.
  12. The extent of potential confusion . . . .
  13. Any other established fact probative of the effect of use.
Id. at 1361, 177 USPQ at 567. Not all of the DuPont factors may be relevant or of equal weight in a given case, and "any one of the factors may control a particular case," In re Dixie Rests., Inc., 105 F.3d 1405, 1406-07, 41 USPQ2d 1531, 1533 (Fed. Cir. 1997).

(from In re Majestic Drilling Co. (Fed. Cir. Jan. 2, 2003) (http://laws.lp.findlaw.com/fed/021243.html))

Obtaining a trademark

A person or business entity acquires rights in a trademark either by using it in the normal course of business (for example on a tag or label for merchandise being sold to the public) or by filing an application for registration of the mark in the USPTO. An application for registration may be based upon actual use in commerce or upon a bona fide intent to use (ITU). An ITU application will not become a registration until documents evidencing actual use of the mark in interstate commerce. Infringing use can only be stopped with actual registration, not an ITU. The value of ITU is in establishing priority--who acquired the right to use the mark first--and so infringers are on borrowed time pending that registration.

An individual may represent himself before the USPTO in attempting to register a trademark. However, there are many pitfalls that can trap someone who is not experienced in trademark prosecution matters. An experienced attorney who specializes in trademark registrations typically will charge $800.00 to $1500.00 for preparing and filing an application for trademark registration. If the application is initially rejected because the mark is deemed descriptive or generic, then there will be additional fees for attempting to overcome such rejections.

Recent developments in U.S. trademark law have included the adoption of the Federal Trademark Dilution Act of 1995 (see dilution under Trademark), and the 1999 Anti-Cybersquatting Consumer Protection Act.

Consistent with the limited nature of trademark protection and the free speech guarantees of the First Amendment, U.S. law provides for a fair use defense to trademark infringement comparable to that under copyright law. The two main categories of protected usage are nominative--using the trademark to actually refer to the trademarked product or trademark owner; and usage of the mark in its common sense, such as a descriptive word or common and unoriginal symbol. These uses are still subject to the requirement that there be no consumer confusion as to source or sponsorship. Trademarks may also be lawfully used in parodies.

Differences from related laws

Unlike copyright law which provides for criminal penalties as well as civil damages, trademark law in the United States is entirely enforced through private lawsuits. The responsibility is entirely on the mark owner to file suit in either state or federal civil court in order to restrict an infringing use. Failure to "police" a mark by stopping infringing uses can result in the loss of protection.

Also in contrast to copyright or patent law, trademark protection has no expiration. As long as the mark is continually used, it can be protected from infringement indefinitely.

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