The U.S. Court of Appeals for the Ninth Circuit yesterday affirmed the ruling of Judge James C. Mahan of the District of Nevada dismissing a trademark infringement case filed by K&K Promotions, which owns the IP rights to famed American daredevil Evel Knievel. The Ninth Circuit agreed with Judge Mahan that the character of Duke Caboom from Walt Disney Studios and Pixar’s Toy Story 4 was not a literal depiction of Knievel, but rather a transformative use.
Deciding whether or not to enforce one’s intellectual property rights is a significant decision for any business (or individual). Litigation in general tends to be an expensive proposition and intellectual property litigation ranks toward the top with regard to average cost. While the average total cost of U.S. trademark infringement and copyright infringement litigation varies depending on the nature of the case and the stakes involved, such costs (i.e., attorneys’ fees and third-party costs) average in the $300,000-$500,000 range. Patent infringement litigation is typically even more expensive. Intellectual property enforcement decisions therefore must be made with care, taking into consideration all relevant legal, financial, and other business considerations. This article discusses the considerations affecting intellectual property enforcement decisions through the prism of two examples: T-Mobile’s trademark rights in the color magenta and the very popular Baby Yoda GIFs that seem to be everywhere online. Both companies recently experienced considerable backlash when IP enforcement of these rights went wrong.
In recent weeks, Chicago, IL-based Hawaiian cuisine chain Aloha Poke has become embroiled in a public relations nightmare over a trademark policing campaign which has created backlash over claims of cultural appropriation. According to reports, Aloha Poke has sent cease-and-desist letters to restaurants throughout the United States who have used the term “Aloha Poke” in their restaurant branding… Knobbe Martens Partner Catherine Holland, who specializes in trademark, unfair competition and copyright law, says that the kind of public backlash which has resulted in Native Hawaiian activists calling for boycotts of the Chicago-based Aloha Poke is not limited to the restaurant industry or even instances involving claims of cultural appropriation.
United Trademark Holdings Inc. is attempting to trademark Rapunzel (and likely has plans for other fairy tale princess names) for its line of dolls. Law Professors Rebecca Curtin and Loletta Darden of Suffolk University Law School, along with help from Suffolk’s Intellectual Property and Entrepreneurship Clinic, filed an opposition to United’s trademark registration on May 9, 2018. In their Notice of Opposition, they argue that the name Rapunzel belongs to the public. “No company should ever be able to be the only company that can call their doll Rapunzel, because Rapunzel is already in the public domain,” said Curtin, who specializes in intellectual property law. “Rapunzel already belongs to everyone.”
Characters for Hire also argued that the trademark infringement claims lacked the essential element of confusion. Citing to Naked Cowboy v. CBS, a case decided in Southern New York in 2012 involving trademark infringement claims asserted by a Times Square street performer against the use of his likeness in the soap opera The Bold and the Beautiful, Characters for Hire argue that the use of the names of fictional persons are merely descriptive of the entertainment services provided by the defendants. “Indeed, Plaintiff Disney is well aware of the limits of trademark enforceability having successfully defended a claim brought against them for using the famous ‘Caterpillar’ trademark for construction trucks in one of their films,” Characters for Hire argued. This statement references Caterpillar Inc. v. Walt Disney Co., a 2003 case decided in the Central District of Illinois wherein the court ruled that Disney’s use of construction vehicles with Caterpillar logos in the movie George of the Jungle 2 created no likelihood of confusion that Caterpillar either endorsed or sponsored the movie.