Posts Tagged: "trademark infringement"

Trademark and copyright enforcement remains a significant challenge for licensors of popular brands across sports, entertainment, fashion and other industries. The Organization for Economic Cooperation and Development, a group of three dozen industrial countries, estimates counterfeit goods account for 3.3% of global trade. Brand owners cannot rely on the belief that their trademark and copyright registrations will be respected, and they cannot confine their enforcement to demand letters and traditional intellectual property litigation. Rather, a brand owner must avail itself of additional approaches to address both traditional and newer platforms offering infringing products. We continue to see an increase in online infringements, especially in connection with certain e-commerce sites and targeted advertisements on social media. Under the current law, enforcement against online providers can be difficult, particularly when compared to traditional infringement hot sports in the brick-and-mortar marketplace. Flea markets, swap meets and other brick-and-mortar shopping venues reported verdicts and settlements in the last 10 years that confirm commercial landlords/owners can be held liable for the trademark infringement activity of their tenants, with courts around the country extending liability for trademark infringement beyond just the party selling infringing products.

Facebook is being sued by online banking company, Finco Services, Inc., which operates as Current, for trademark infringement, unfair competition, and false designation of origin relating to Facebook’s controversial subsidiary, Calibra, which plans to launch the digital currency Libra by 2020. Current’s complaint, filed in the U.S. District Court for the Southern District of New York on October 10, says that the company hired Character, a branding and design agency, in 2016 to develop a logo and branding strategy for Current’s banking services and mobile app. The resulting logo, and iterations thereof, have been used by the company since at least as early as 2016.

The U.S. District Court for the Central District of California recently issued a decision in the closely watched Patagonia, Inc. v. Anheuser-Busch, LLC, 19-CV-02702 case. Here, the clothing company Patagonia sued the beer company Anheuser-Busch for trademark infringement, unfair competition, dilution of a famous mark, and cancellation of Anheuser-Busch’s various PATAGONIA trademark registrations. Anheuser-Busch moved to dismiss certain claims, including the dilution claim, for failure to state a claim under Rule 12(b)(6). The court issued a decision finding that Patagonia had adequately pled its dilution claim. The case provides trademark practitioners with insight into early case strategies when asserting and defending against a trademark dilution claim.

The U.S. District Court for the Eastern District of Michigan, Southern Division, on September 9 granted Motions to Dismiss in favor of all defendants in a federal trademark infringement action brought by R&B band Ready for the World, Inc. (Ready for the World) against Melvin Riley, John Eaton, Daniel Dillman, Renee Atkins, and Jan Mark Land. Ready for the World brought us classic 1980s hits including “Oh, Sheila!” and “Love You Down”. Riley and Eaton are original band members, while Dillman works for a nonprofit that promoted a concert performed by Riley and Atkins and Land were alleged to be employed by Riley. In their Motions to Dismiss, Eaton and Riley argued lack of subject matter jurisdiction because Ready for the World did not plead a claim arising under the Lanham Act. Citing Derminer v. Kramer, they argued that they are co-owners of the Ready for the World trademark and thus cannot infringe upon the mark. The court agreed, and also granted the motions of Dillman, Atkins and Land.

The Intellectual Property Owners Association and four other associations have filed amicus briefs with the Supreme Court in the case of Romag Fasteners v. Fossil, Inc., Fossil Stores, I. Inc., Macy’s Inc, and Macy’s Retail Holdings, Inc. The case will examine whether lower courts have discretion under the Lanham Act with respect to how to award damages in trademark infringement cases, or whether courts are required to establish that the infringement was willful before awarding profits. While the American Bar Association (ABA), the International Trademark Association (INTA), the American Intellectual Property Law Association (AIPLA) and the Intellectual Property Law Association of Chicago (IPLAC) support adopting a more flexible approach that would not make willfulness a prerequisite to recover profits, IPO argues that the plain language of the statute necessitates such a requirement.

In the most recent development in a case between energy drink brand Monster Energy Company and maker of automotive tools Integrated Supply Network, LLC (ISN), the U.S. District Court for the Central District of California on July 2 denied Monster’s request for a permanent injunction against ISN. Monster appealed on July 3 to the U.S. Court of Appeals for the Ninth Circuit and ISN cross-appealed on July 12. The district court found that Monster did not offer evidence demonstrating that ISN’s infringement had actually caused a loss of control over its business reputation leading to irreparable harm and loss of prospective customers. Additionally, the court reasoned that evidence regarding consumer confusion does not necessarily demonstrate irreparable harm. Even where ISN had not ceased infringing activity, Monster still had not proven irreparable harm as required to justify a permanent injunction, said the court.

On August 7, the U.S. Court of Appeals for the Eleventh Circuit affirmed a jury verdict from the U.S. District Court for the Northern District of Georgia finding a landlord liable for contributory trademark infringement . The jury ruled for Plaintiffs Luxottica Group, LLC and Oakley, Inc., holding that Defendants Airport Mini Mall, LLC (AMM); Yes Assets, LLC; Chienjung (Jerome) Yeh; Donald Yeh; Jenny Yeh; and Alice Jamison were liable for contributory trademark infringement under the Lanham Act for allowing their subtenants to sell counterfeit goods that infringed the plaintiffs’ trademarks.

The U.S. Court of Appeals for the Second Circuit issued a decision in an appeal from the U.S. District Court for the Southern District of New York last Thursday that in part clarified that “a plaintiff prosecuting a trademark infringement claim need not in every case demonstrate actual consumer confusion to be entitled to an award of an infringer’s profits.” The Second Circuit court also remanded the case back to the District Court to apply the Octane Fitness standard for determining “exceptional” cases under the Lanham Act.

Recent controversy surrounding Kim Kardashian’s truncated move to trademark the term “Kimono” for her new line of undergarment shapewear has subsided, with Kardashian formally announcing that she is abandoning the effort. Kardashian explained the mark as serving the dual purposes of being a play on her name and showing respect for the Japanese culture. In fact, Kimono is Japanese for a traditional long, baggy garment that has been worn by Japanese women for centuries. Kardashian’s effort caused an uproar among the Japanese community in Japan and here in the United States. The community accused Kardashian of trying to exploit a centuries-old Japanese tradition for commercial gain. The controversy prompted the mayor of Kyoto to write a letter to Kardashian, in which he noted the sensitivity of the Japanese people to her move and urged her to drop the effort. Although the immediate controversy has now subsided, Kardashian’s truncated effort has renewed debate around the larger issue of “cultural appropriation” and its intersection with trademark law.

Text-based search engines, such as Google and Yahoo (remember Ask Jeeves?), were arguably the most important development leading to our now everyday reliance on the Internet. The concept is simple: type a word or string of words into that inviting text box and instruct your favorite search engine to scour the Internet. The search engine does its magic and quickly displays a list of results, typically hyperlinks to webpages containing information the search engine decided was most relevant to your search. As web technology has progressed, search engines have become smarter and more robust. All major search engines can now, in response to text input, spit out a combination of web pages, images, videos, new articles, and other types of files.Of course, IP owners and those interested in capitalizing on the IP rights of others have found many creative ways to leverage search engine technology to get their goods and services to the top of search engine result pages. These techniques have sparked an entire industry—search engine optimization—which has long been the subject of copyright and trademark litigation. Given that nearly all consumers now have camera-enabled mobile devices, search engine providers have invested heavily in “visual” search engine technology. Visual search engines run search queries on photograph or image input, instead of text input. For example, a tourist visiting the Washington Monument can snap a quick photo of the famous obelisk and upload it into the visual search engine. The visual search engine will then analyze (using, for example, AI or other complicated algorithms) various data points within the photograph to identify the target and then spit out relevant information such as the location, operating hours, history, nearby places of interest, and the like. Google (Google Lens), Microsoft (Bing Visual Search), and Pinterest are all leveraging this technology.Critically important for IP owners, visual search engines can be used by consumers to identify products and quickly comparison shop or identify related products. A golfer could snap a photograph of a golf shirt and ask the visual search engine to return results to find a better price on that shirt or to identify a matching hat or pair of pants. Similarly, a music listener could snap a photograph of an album cover and ask the visual search engine to return results for other music in the same genre that might be interesting to the listener. These are only a few examples of the powerful capabilities of visual search engine technology.

Early last month, the U.S. Court of Appeals for the Ninth Circuit issued a memorandum affirming the district court’s grant of partial summary judgment in Hope Road Merchandising v. Jammin Java Corporation. The Ninth Circuit’s decision upholds a nearly $2.5 million damages award for trademark infringement in favor of Hope Road, the licensing and merchandising arm for the family of the late reggae icon Bob Marley, against coffee distributor Jammin Java.

Trademark protection has never been more important than in today’s increasingly global economy. A company’s name, trademark or service mark, trade dress and website domain name are often its most important and valuable assets, and this applies as well to companies with lesser-known brands since social media has provided them with a platform to reach a worldwide audience. But even companies with well-known brands use social media as a tool to manage their brands’ image and engage with customers directly. In a borderless world economy, brands simply must utilize social media to remain competitive.

On Friday, December 14th, San Francisco, CA-based home furnishing retailer Williams-Sonoma filed a lawsuit in the Northern District of California alleging claims of trademark and design patent infringement against Seattle, WA-based e-commerce giant Amazon.com. The lawsuit targets Amazon’s pattern of trading upon Williams-Sonoma’s goodwill and infringing the company’s intellectual property including the use of the registered mark “WILLIAMS-SONOMA.” If the allegations are true, this is simply the latest instance of this e-commerce behemoth choosing to flout IP law in an effort to line the pockets of itself and its incredibly affluent CEO Jeff Bezos.

Energy drink maker Monster Energy recently prevailed in its trademark and trade dress infringement lawsuit against Integrated Supply Networks (ISN), a maker of automotive tools and related goods. Although the jury verdict awarded zero actual damages for infringement, it did award $5 million in punitive damages against ISN after Monster Energy proved that Integrated Supply acted with malice, oppression or fraud.

U.S. District Judge Mary Ann Vial Lemmon of the Eastern District of Louisiana entered a preliminary injunction order against Jolie Home, LLC and other defendants accused of trademark infringement by Annie Sloan Interiors, the U.K.-based makers of Annie Sloan® Chalk Paint®. The preliminary injunction orders the defendants to cease their “reverse passing off” of Annie Sloan® products as Jolie Home products and their distribution of advertisements and labels for Jolie Home paints which claim to use the same formula as Annie Sloan® Chalk Paint® and used the trademarked phrase “chalk paint” in a non-fair use manner.