Posts Tagged: "territoriality"

The U.S. Court of Appeals for the Federal Circuit (CAFC) today reversed a decision of the U.S. Patent and Trademark Office’s (USPTO’s) Trademark Trial and Appeal Board (TTAB) that had canceled two marks for Thums Up cola and Limca lemon-lime soda owned by Meenaxi Enterprise, Inc. The CAFC held that Coca-Cola had not established a statutory cause of action based on lost sales or reputational injury under Section 14(3) of the Lanham Act and thus reversed the decision. Judge Reyna wrote separately in concurrence but said he would have focused the inquiry on the territoriality principle and the well-known mark exception, rather than lost sales and reputational injury among U.S. consumers, as the majority did.

A trademark is accorded reputation through its prolonged use and the goodwill it holds in the market where it operates. A trademark is believed to have a reputation when the general public recognizes the product by its mark. The reputation of a well-known trademark knows no bounds, and therefore foreign trademarks with a reputation are accorded protection in India. This concept of trans-border reputation protection follows the principle of universality, which states that once the reputation of a trademark transcends the physical boundaries of the country in which it was registered and gains popularity in other countries as well, it is to be protected in all relevant jurisdictions. Thus, the trademark owner is entitled to protection under the doctrine of passing-off if it can prove that the reputation of its trademark transcended geographical borders by way of promotions, advertisements and media communications.