“Because You’re Worth It” How to Build, Protect, and ...

©Bradley Arant Boult Cummings LLP

“Because You’re Worth It”How to Build, Protect, and Enforce Your Brand Through TrademarkMay 4, 2021

Presented by: Tim Capria and Matt DeAntonio

Meet the Speakers

Tim CapriaPartner

Nashville, TN tcapria@bradley.com615.252.3811

Matt DeAntonioPartner

Charlotte, NCmdeantonio@bradley.com704.338.6115

• Goals:• Distinguish goods or services• Build consumer recognition• Avoid conflicts with other marks

• Over 2.7 mil active federally registered U.S. marks• Over 800,000 pending applications

Selecting your Trademark

How many trademarks do you see?

What is a Trademark?

It is a:• Word REESE’S (U.S. Reg. No. 5,100,407)

• Symbol

(U.S. Reg. No. 2,990,202)

• Slogan THERE'S NO WRONG WAY TO EAT A REESE’S (U.S. Reg. No. 1,900,044)

What is a Trademark Cont.?

• Product or packaging shape

(U.S. Reg. No. 186,828 – packaging shape)

• Color

(U.S. Reg. No. 2,256,226 – Pantone 165C)

• Sound NBC chimes; lion’s roar of MGM (U.S. Reg. No. 916,522; U.S. Reg. No. 1,395,550)

• Or anything else that can be a source indicator (fragrance, design of business, motion, personal name, number); also Collective and Certification marks

How many trademarks do you see?

• Generic• APPLE for apples; Aspirin for pain relief drugs

• Descriptive • AMERICAN AIRLINES for air transport of passengers

• U.S. Reg. No. 514,294

• Suggestive• BURGER KING for restaurant services

• U.S. Reg. No. 3,355,280

• Arbitrary• APPLE for computers

• U.S. Reg. No. 1,078,312

• Fanciful• GOOGLE (for anything!)

• U.S. Reg. No. 2,884,502

Distinctiveness Spectrum

• Evaluating use or future use• Goods, services, or both• Geographic scope• Timing

• Clearance searching

Selecting your Trademark

• Territorial • File for registration• Where to file and how to file?

• Use the mark• Internationally, some jurisdictions primarily create rights

through filing and registration. A junior filer can displace a senior user!

Building your Brand

• Registrability • Not generic, not misdescriptive, etc.

• Availability • The “2(d)” refusal

• 13 DuPont factors, but primary focus is typically on two of the 13. • File for registration• Where to file and how to file?

• With whom to register?

Building your Brand - Registration

• Must a mark be in use to file a trademark application? • To obtain a registration?• Providing “use in commerce”• Consider recordation of registered trademarks with CBP and

enrolling in brand registers of online marketplaces (e.g., Amazon.com)

• Consistent and proper trademark use

Building your Brand - Registration

Policing Trademarks

1. Trademark Confusion is BAD!• Point of Sale Confusion

• As to Product• As to Source

• Forward vs. Reverse Confusion• Initial Interest Confusion• Non-customer Confusion• Post-sale Confusion

Three Reasons to Police

• As to Product

Advicor or Altocor?

Kos Pharms., Inc. v. Andrx Corp., 369 F.3d 700 (3d Cir. 2004).

• As to Source

Fleischmann Distilling Corp. v. Maier Brewing Co., 314 F.2d 149 (9th Cir. 1963).

1. Trademark Confusion is BAD!• Forward v. Reverse Confusion

Fleet Feet, Inc. v. Nike Inc., 419 F. Supp. 3d 919 (M.D.N.C. 2019) (vacated pursuant to settlement).

1. Trademark Confusion is BAD!• Initial Interest Confusion

Steinway Grotrian-Steinweg

Grotrian, Helfferich, Schulz, Th. Steinweg Nachf. v. Steinway & Sons, 365 F. Supp. 707 (S.D.N.Y. 1973), modified, 523 F.2d 1331 (2d Cir. 1975).

1. Trademark Confusion is BAD!• Non-customer Confusion

Arrowpoint Cap. Corp. v. Arrowpoint Asset Mgmt., LLC, 793 F.3d 313 (3d Cir. 2015).

1. Trademark Confusion is BAD!• Post-sale Confusion

2. Strengthen Your Marks

Who won?A. Sugar HighB. Pizza Party

Amstar Corp. v. Domino’s Pizza, Inc., 615 F.2d 252 (5th Cir. 1980).

3. Build Value for Licensing

How to Find Infringers?

What interesting methods have you used to find infringers?

(Drop your answers in the Zoom chat feature!)

1. Rely on the USPTO?

2. Internet and Social Media Searches(e.g., Google Alerts)

3. Trademark Watch Notices

4. Using the Boots on the Ground

Is It Infringement?

Elements of Infringement1. Validity2. Ownership3. Unauthorized use in commerce4. Use in connection with the sale,

offering for sale, distribution, or advertising of goods and services

5. Likelihood of confusion

Is It Infringement?

Test for Likelihood of Confusion

• Strength of the marks (conceptual and commercial)

• Similarity between the marks (sight, sound, meaning)

• Similarity of the products• Similarity of the customers,

advertising, and channels of trade• Actual confusion• Intent• Customer sophistication• Literally anything else

Is It Infringement?

Who won?A. 7 ElevenB. Super 7

7-Eleven, Inc. v. Super 7 Food Mart, LLC et al., No. 1:15-cv-1038 (M.D. Pa. June 22, 2015).

Is It Infringement

Who won?A. Pizzeria UnoB. Taco Uno

Pizzeria Uno Corp. v. Temple, 747 F.2d 1522 (4th Cir. 1984).

Is It Infringement?

v.Pizza Caesar

Who won?A. Little CaesarsB. Pizza Caesar

Little Caesar Enterprises, Inc. v. Pizza Caesar, Inc., 834 F.2d 568 (6th Cir. 1987).

Enforcement Tools

What is your goal?

Enforcement Tools

1. Cease and Desist

Enforcement Tools

2. License Agreements

Enforcement Tools

3. Coexistence Agreements

Enforcement Tools

4. Consent to Use Agreements

Enforcement Tools

Responding to Cease and Desist Letters

Litigation Considerations

Taking the Plunge

Is there a Remedy?(Beware the Dawn Donut Rule)

Is there a Remedy?

Actual Damages Disgorgement of Profits

Adjusted Damages Fees and Costs

Types of damages:• License fees• Plaintiff’s lost

profits• Infringer’s

profits• Reasonable

royalty• Damage to

goodwill• Cost of

corrective advertising

Factors:• Intent to confuse• Diversion of

sales• Availability of

other remedies• Any

unreasonable delay

• Public interest• Palming off

Trial court has wide discretion to award up to treble damages based on the “circumstances of the case”

Theories:• FRCP 54(d)• “Exceptional

case” under the Lanham Act

• State unfair trade practices act statutes

Avoiding Delay

Risk Factors

• Counterclaims• Cancellation• Declaratory Judgment• Infringement

• USPTO Proceedings• Cancellations• Oppositions

• Costs

Tim Capriatcapria@bradley.com

615.252.3811Nashville, TN

Matt DeAntoniomdeantonio@bradley.com

704.338.6115Charlotte, NC

Questions

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