Bar on Registering Immoral or Scandalous Trademarks Violates First Amendment

fuctErik Brunetti acquired ownership of a trademark application to register the mark FUCT for apparel. The USPTO refused to register the mark under section 2(a) of the Lanham Act asserting that it was immoral or scandalous. But the Federal Circuit found that the provision banning registration of marks comprising immoral or scandalous matter violated the First Amendment. In re Brunetti, no. 2015-1109 (Fed. Cir. 2017). This clears the way for FUCT to register, unless the government appeals this ruling.

The Brunetti case follows the Matal v. Tam, No. 15-1293 (2017) case where the Supreme Court struct down as violating the First Amendment another provision of section 2(a), which barred the registration of marks consisting of material that is disparaging. The outcome in Brunetti is not surprising in light of Tam.

In Brunetti, the court found that evidence supported that FUCT was vulgar as being a phonic twin of “fucked.” Therefore FUCT was scandalous under section 2(a).

But, the court found that the immoral or scandalous bar of section 2(a) was an unconstitutional content-based restriction on speech.

Trademarks Have Expressive Content

The court noted that marks considered immoral or scandalous can have expressive content. The court cited the following examples of marks espousing a powerful cause: FUCK HEROIN; FUCK CANCER; and FUCK RACISM. And the court noted these marks conveying a political view: DEMOCRAT.BS and REPUBLICAN.BS. The court said that “powerful messages can sometimes be conveyed in just a few words.”

The court found that there is no question that the immoral or scandalous prohibition targets the expressive components of speech. And this content-based restriction is disconnected from the purpose of trademark registration, which is to facilitate the source identification of goods and services and avoid consumer confusion in the marketplace.

There was no dispute that the immoral and scandalous provision could not survive First Amendment strict scrutiny. The court further found that it could not survive intermediate scrutiny.

Trademark registration is not a government subsidy or a limited public forum

The government argued that the First Amendment was not implicated because the trademark registration program is either a government subsidy or a limited public forum. The Court rejected both of these arguments.

On the subsidy issue, the court found that trademark registration does not implicate Congress’ power to spend funds and that the grant of a trademark registration is not a subsidy equivalent.

On the limited public forum issue, the court found that the speech that “flows from trademark registration is not tethered to a public school, a federal workplace, or any other government property.” Further, it said, “If the government can constitutionally restrain the expression of private speech in commerce because such speech is identified in a government database [e.g. the trademark registration database], so too could the government restrain speech occurring on private land or in connection with privately-owned vehicles, simply because those private properties are listed in a database.”

On Judicial Review

The court cited to the article by Anne Gilson LaLonde & Jerome Gilson titled Trademarks Laid Bare: Marks That May Be Scandalous or Immoral, 101 Trademark Rep. 1476 (2011). This article considers the problems of the immoral or scandalous provision and reviews numerous examples of marks rejected and not rejected under that provision. One of the solutions proposed by the article is for Congress to repeal the scandalous and immoral prohibitions from the statute. But the article states:

No lawmaker would be willing to suggest even tinkering with a ban of any sort on immoral or scandalous material. Asking to be tagged as pro-immorality or pro-vulgarity is not a savvy political move. And advocating repeal of a century-old statutory phrase designed to protect public sensibilities would doubtless trigger impassioned opposition.

Therefore, the courts are likely the only place where the scandalous and immoral provision could be addressed.

Public Sensibilities Protected?

But did the immoral or scandalous bar provision really “protect the public sensibilities?” In Brunetti, the government argued that it had a substantial interest in protecting the public from scandalous or immoral marks. But as the court noted, whether a trademark is registered or not, does not stop someone from using such a mark in the marketplace. You can use a mark without registration it. And, the court said:

“In this electronic/Internet age, to the extent that the government seeks to protect the general population from scandalous material, with all due respect, it has completely failed.”

Impact of the Decision

Before this decision, as noted by the court, the marketplace included scandalous material and scandalous marks. In fact, Mr. Brunetti claimed that he operated his clothing brand under the FUCT mark for over 20 years. The lack of registration didn’t stop him from operating all that time and exposing the public to his mark.

After this decision, looking to the trademark registration database, you might see more scandalous, vulgar, or shocking marks. But will that have a great impact?

As the Laid Bare article stated, “The marketplace would ideally deal with the most offensive marks, as consumers would presumably refuse to purchase goods sold under marks that offend them. The American public would continue, as it is now, to be faced with products, services, entertainment and printed matter that are in poor taste and even embarrassing to behold.”

The Court said that “Many of the marks rejected under § 2(a)’s bar on immoral or scandalous marks … are lewd, crass, or even disturbing.” The Court continued that it “was not eager to see a proliferation of such marks in the marketplace.” But, “There are countless songs with vulgar lyrics, blasphemous images, scandalous books and paintings, all of which are protected under federal [copyright] law.” And, “The First Amendment… protects private expression, even private expression which is offensive to a substantial composite of the general public.”

Obscene Material

The court left open the possibility that a provision barring marks comprising obscene material could be constitutionally permissible.

The government might appeal this ruling to the Supreme Court and argue that the immoral and scandalous provision should be interpreted narrowly to cover only marks comprising obscene material. It seems unlikely that the court will take that appeal following Tam.

Problems Using the Registered Trademark Symbol with Products or Services Sold in a Foreign Country

R-in-a-circle-trademark

Your trademark is registered in the United States. But you sell goods/services under that trademark both in the US and in foreign countries. Should you use the registered trademark symbol, R enclosed in a circle, i.e. ®, next to the mark on or in connection with the goods/services sold in foreign countries?

Maybe not, unless you registered the mark in the foreign countries where it is used and those foreign countries allow for the use of R in a circle.

When a trademark is registered in the US and the mark is used in the US on or in connection with goods/services described in the registration, US law provides that the owner of the registration can and should indicate that the mark is registered. See 15 U.S.C. 1111. That indication is often provided by placing the letter R enclosed in a circle next to the mark, i.e. ®. An alternative to using the circle R, the owner can provide a text statement that the mark is a Registered in U.S. Patent and Trademark Office,” which can be abbreviated “Reg. U.S. Pat. & Tm. Off.”

But, trademark rights are generally confined to the countries or jurisdictions where the marks are used or registered. Therefore, a registration in the US generally does not provide the registration owner with trademark rights outside of the US.

If you use the R in a circle next to your mark on goods/services sold in a foreign country, could consumers there think that your mark is registered in that foreign country or jurisdiction? Possibly, yes. A 2000 report from the International Trademark Association details that many foreign countries prohibit the indication that a mark is registered when it is, in fact, not registered in that country. The report provides that such use can result in sanctions, civil liability, and even criminal penalties.

Therefore, you should be careful when using R in a circle in a foreign country to be sure your use comports with the local law in that country.

Timing Considerations for Deciding What Goods and Services to Designate in an Intent-to-Use Trademark Application

When you file an intent-to-use trademark application you must designate the goods and services in the application. What should those goods and services be? This should be easy to answer, right? Its the goods and services that you intend to sell or render in connection with the trademark.

But, it might not be that easy to answer when you have a lot of different types of products or services that will be launched over a period of time. Should all of those be listed? Maybe. One factor to consider is the timing of when you plan to launch each of the planned products or services. This timing then can be compared to the probable deadlines you will encounter in your trademark application.

Trademark Deadlines

Presently, it takes about 9.5 months, on average, for a notice of allowance to issue in an intent-to-use application (See trademark total pendency stats). After a notice of allowance issues, you will have six months to file a statement of use and prove that you are using the mark in connection with all of the goods and services in the application. Therefore you have about 1 year and three and a half months from the filing date to prove that you are using the mark on the goods and services listed in the application, without paying for extensions of time.

If you do not use the mark in connection with all of the goods and services in the application you can file a request for extension of time. This will give you 6 more months to file a statement of use. You can request up to five extensions of time. But you must pay fees on a per class basis to the USPTO for each request for extension of time.

Application of Deadlines to Your Plans

Therefore, if you don’t want to pay for any extensions, the goods and services listed in the application should be those that you plan on selling or rendering under the mark within about a year and 3.5 months of the filing date of the application.

If you are willing to pay for extensions every six months, then you can extend the deadline to show proof up to 3 years after the notice of allowance. That would be 3 years and 9.5 months from the filing date under the current pendancy stats. Therefore, the goods and services listed in the application would be those that you plan to sell or render within that timeframe.

However, you will not receive a registration until you have filed a statement of use. So, if you need a registration quickly for enforcement purposes. You might decide to include only the goods and services that you will be selling or rendering within 9.5 months of filing, so you can quickly file a statement of use and receive a registration.

Split-off Option

If after you file, it becomes important to quickly get a registration for some goods/services when you are not selling/rendering under all goods/services, there is a split-off option. You can split off the goods/services that you are not yet selling into a separate application, and receive a registration on the goods/services you are using. Of course, there’s a fee for this split-off.

Keep Evidence of Intent to Use

Finally, the law requires that you have a bona fide intent to use a trademark on the goods/services listed at the time of filing. And that bona fide intent requires more than a subjective belief/intent. It requires objective evidence of intent as Swatch AG learned the hardway. Swatch’s trademark application for iWatch was found invalid because Swatch failed to show that it had an objective bona fide intent to use the iWatch mark at the time it filed its application.

iWatch

Therefore, you should keep evidence (documents, models, samples, prototypes, communications, etc.) to show that you had an intent to use the trademark on all of the goods/services that you list in the application at the time the trademark is filed.

The above timing considerations may be helpful in determining what goods and services you should designate in an intent-to-use trademark application.

Punctuation Differences Alone Usually Do Not Distinguish Trademarks

BodysBoyd Coddington’s Hot Rods & Collectibles filed an application to register the trademark BOYD’S for apparel. But the USPTO examining attorney refused the registration based on a likelihood of confusion with the prior mark BOYDS for clothing. The TTAB affirmed the refusal finding the marks were virtually identical and the apostrophe was inconsequential in comparing the marks. Boyd Coddington’s Hot Rods & Collectibles, Inc., No. 78913114 (TTAB 2008).

Similarly, Sears filed an application to register CROSS-OVER for bras. The USPTO Examining Attorney refused registration based on the mark CROSSOVER for ladies’ sportswear. The TTAB found that the marks were legally equivalent and the hyphen was of “no legal significance.” In re Sears, Roebuck & Co., 2 USPQ2d 1312 (TTAB 1987).

Simple punctuation alone usually does not distinguish marks because marks are compared in the following ways: (1) appearance, (2) sound, and (3) connotation. A similarity in any one of those aspects could be enough to find that the marks are similar. Many times you can’t hear punctuation when a mark is spoken, e.g. its sound. So, the punctuation is unlikely to distinguish the way the marks sound.

Looking at the Sears case, simple punctuation often doesn’t do much to distinguish the visual appearance of the marks either. Does CROSS-OVER appear much different from CROSSOVER to the average customer? Further, does the hyphen alone change the meaning of CROSSOVER? No, it does not.

While there might be some cases where punctuation could make a difference–possibly when combined with other distinguishing features–often punctuation alone does not do much to distinguish marks and avoid a conflict.

Sharply Different Meanings of Marks Avoids Confusion

PrayThenSlayWhen considering whether two trademarks are similar for conflict purposes, the marks are considered in their entireties, including their appearance, sound, and commercial impression. Sometimes one of those attributes stands out to distinguish the marks even when similarities exist in the other attributes.

Manuel Tellez applied to register the mark SLAY OR PREY for apparel. The USPTO Examining Attorney refused registration based on a likelihood of confusion with Registration no. 5,066,234 for the mark PRAY THEN SLAY (and design) for t-shirts.

On appeal, the Board reversed the Examining Attorney’s refusal to register, finding the two marks had sharply different meanings.

The Board acknowledged that the appearance and sound of the marks were somewhat similar because (1) the marks shared the term “slay” and (2) “pray” and “prey” of the marks were phonetically equivalent and visually similar. Yet, the Board said that consumers would read and recognize “prey” and “pray” as sharply distinct words.

After reviewing dictionary definitions, the Board stated:

“…Applicant’s mark most likely gives the impression of presenting a choice to either kill or become a victim by falling prey to a predator. By contrast, we find that the registered mark most likely conveys a command to first confer with the divine through prayer, and next to impress others (the slang meaning of “slay” [which is “to impress strongly; overwhelm, especially by humor: Your jokes slay me.”]). The mark may suggest that prayer will lead to making a strong impression on others — i.e. if you pray, then you will slay. Alternatively, Registrant’s mark could be viewed as a call to faith-inspired violence — i.e. to pray and then slay, in the traditional sense of the word.”

Let’s hope that the registrant was intending the slang meaning of slay.

The sharply different meanings of the marks were enough for the Board to conclude there was no likelihood of confusion between the marks.

Case citation: In re Manuel E. Tellez, No. 87229195 (TTAB 2017).

Designating Different Trademark Classes Does Not Avoid a Conflict Between Marks

REALORANGEAnn Peterson applied to register the word-and-design mark REAL ORANGE for Christian ministry services in class 45.

The reThink Group, Inc opposed the registration based on its prior registration for the word-and-design mark of ORANGE for electronic downloadable publications and prerecorded media, print material, and educational services related to church ministry, among other services in class 9, 16, and 41. 

One factor in determining whether there is a conflict between two marks is whether the goods/services provided under the respective marks are similar.

ORANGEPeterson argued her services were different from the goods and services of reThink’s mark because they were in different International Classes: class 45 in Peterson’s case and Classes 9, 16, and 41 in reThink’s case. Each trademark applicant must (1) provide a description of goods and/or services, which are provided under the mark and (2) designate the international class(es) which the goods/services fall into.

But the Board rejected Peterson’s argument. The Board noted that 15 USC 1112 provides “The Director may establish a classification of goods and services, for the convenience of the Patent and Trademark Office administration, but not to limit or extend the applicant’s or registrant’s rights.” The Board also noted that the Federal Circuit has stated that “classification is wholly irrelevant to the issue of registrability under section 1052(d), which makes no reference to classification.

Therefore, you cannot avoid a conflict with another registered mark solely on the argument that the goods/services of the registered mark are registered in different international trademark class(es) from the goods/services of your mark.

Case citation: The reThink Group, Inc. v. Ann Peterson, Op. No. 91227798 (TTAB 2017).

Limits on Use of Crowded Market Evidence to Show Weak Trademark Rights

AMIGOSDurrset Amigos Ltd (Durrset) filed a petition to cancel Amigo Meat Distributors’ (AMD) trademark registration on the mark AMIGOS FOODS for the services of wholesale meat products distributorship.

As a basis to cancel, Durrset asserted its common law mark AMIGOS FOODS and its registration for AMIGOS in a stylized form for “prepared tortillas, taco sauce, picante sauce (hot sauce) and taco shells” and for the services of “manufacturing and packaging food to the order and specification of others.”

The TTAB (Board) found that the parties’ marks and the parties’ goods were similar in Durrset Amigos, Ltd. v. Amigos Meat Distributors, L.P., No. 92060896 (TTAB 2017). AMD tried to save its registration by asserting that Durrset’s AMIGOS FOODS mark was extremely weak due to third party uses of AMIGOS marks in the “general area of food products.” But the TTAB found AMD’s evidence of third party use failed to demonstrate that Durrset’s mark was weak.

I’ve written previously about how third party use of similar marks can weaken rights in a trademark. The weaker a party’s rights in its mark are, the closer a defendant can come without causing confusion. The idea is that in a crowded market, if customers see many similar marks used on similar goods then customers will be conditioned to look closer to any differences in the marks, so confusion is less likely. But there are important limitations on this approach, as the AMIGOS case demonstrates.

1. Third party use should be for the same or similar services

AMD introduced 45 third party registrations and applications for marks that include AMIGO or AMGIOS for goods or services that AMD alleged were “somewhat related to food, such as food products, food distribution services, and restaurants.” AMD also introduced Internet search result showing over 90 restaurants with a name that includes the term AMIGOS.

The Board said, “the evidence falls short of showing extensive or voluminous registrations or use of AMIGOS marks coexisting for the same or similar services as those involved herein.” The board found that the third party use of the mark on food goods and restaurant services were of little relevance considering the services at issue in the cancelation proceeding.

The Board said that of all of the proposed third party uses, only two of the registrations covering retail grocery store services “are even arguably related to” AMD’s or Durrset’s services. And, only one third party use was in connection with the manufacture and packaging of food products.

In short, although AMD introduced a lot of third party use, most of it was irrelevant because it was not directed to services that were the same or similar as those at issue in the case.

2. When marks are identical, third party uses may be less effective

The Board distinguished two prior cases cited by AMD to support its argument that Durrset’s rights were weak. The Board said that parties’ marks in those cases were not identical, whereas in the present case, AMD’s and Durrset’s marks were identical, e.g. AMIGOS FOODS.

Therefore, when the parties marks are identical, it may be more difficult to rely on third party use to show weak or narrow rights and avoid confusion.

$200M in Annual Sales Under Highly Descriptive Mark Insufficient to Establish Trademark Rights

When you have a highly descriptive mark, even hundreds of millions of dollars in annual sales under the mark may not be enough to establish trademark rights.

magnestiaMagnesita Refractories Company (MRC) applied to register the mark MAGNESITA in two trademark applications for refractory products in class 19 and for online services related to using refractory products in class 37.

The USPTO found that the mark was generic for refractory products in class 19, and the appeals court agreed in In re Magnesita Refractories Company, 2016-2345 (Fed. Cir. 2017).

The court also found that MRC failed to show that the mark acquired distinctiveness in connection with the class 37 services. A mark has acquired distinctiveness when “the primary significance of the term in the minds of the consuming public is not the product but the producer.” Stated another way, the mark needs to act as a source identifier and not be merely understood by the purchasing public as descriptive of the goods/services on which the mark is used.

The court noted that “If a term is highly descriptive, the applicant faces an elevated burden to show acquired distinctiveness.”

MRC submitted evidence showing that MRC (1) sold $100 million in refractory products under the MAGNESITA mark during half the 2010 year and (2) sold $200 million or more annually in refractory products under the MAGNESITA mark from 2011 to 2014. The USPTO TTAB recognized that these sales figures were substantial. Nevertheless, they were not sufficient to establish acquired distinctiveness.

MRC also submitted a declaration attesting to exclusive and continuous use of the mark since 2008. This too what not sufficient to establish rights in the mark.

The court found that MRC should have submitted evidence demonstrating how the public perceived MAGNESITA as source indicating. Such evidence is usually in the form of a trademark survey and/or direct testimony of customers. But surveys are expensive to conduct, which is probably why MRC didn’t conduct one. Also, regarding direct testimony, companies are sometimes reluctant to bother their customers with requests for testimony and other help in legal proceedings.

Nevertheless, when you have a highly descriptive mark, even hundreds of millions of dollars in annual sales under the mark may not be enough to establish trademark rights. You will probably need to pay to have a trademark survey conducted. And, even that’s no guarantee. What if the results of the survey show that your mark is not recognized as source identifying by the relevant group of consumers?

Choosing a highly descriptive mark can be expensive, both in obtaining trademark protection and in defending the mark against attacks of others. Therefore, if you have the opportunity, you should consider choosing a stronger mark at the outset.

How to Position a Trademark Application to Avoid Conflict with a Similar Mark

US_TM_Reg4137026Nikon Corporation filed a trademark application to register the mark MMD for the goods of (1) laser scanners for industrial inspection and for geometrical measurement, and not for use with land surveying equipment, and (2) software for collection and interpretation of data in the operation of laser scanners, not for use with land surveying equipment. The USPTO trademark examining attorney refused registration based on prior registration no. 4137026 of the mark MMD (and dog design, shown to the right of this paragraph) for land surveying equipment.

The Trademark Trial and Appeals (Board) found that the marks were similar because while the prior registration contained a graphical dog, words “are normally accorded greater weight because the words are likely to make an impression upon purchasers.”

The Board also found the goods of both marks were related because evidence showed that non-land surveying laser scanners are sold by the same entities that provide land surveying instruments.

However, the Board found that Nikon’s laser scanners for industrial inspection and the registrant’s surveying equipment move in different channels of trade.

The Board also found that laser scanners and surveying instruments are purchased by customers that exercise a high degree of care in purchasing. Where customers take great care in purchasing, confusion is less likely.

The Board concluded that the goods will not be encountered by the same consumers under circumstances likely to give rise to the mistaken belief that the products emanate from the same source. Therefore, the Board reversed the Examiner’s refusal and allowed Nikon’s application for the MMD mark to proceed to registration.

By amending the description to exclude land surveying equipment, Nikon was able to convince the Board that the goods were sold in different channels of trade despite the fact the goods were related. If Nikon did not add the exclusion of land surveying equipment to the description, it would have lost this appeal. Sometimes narrowing the description of good/services is an important step to avoid a conflict with a nearly identical mark.

Tagline Not In Trademark Application Cannot Distinguish Prior Mark

P.T. Arista Latindo (“Arista”) sought to register the trademark SENSI for diapers, among other things. The USPTO refused the registration in connection with diapers on the basis of two prior registrations for the mark SENSI-CARE (Tm Reg. Nos. 2618533, 3640455) for skin care products for treating and preventing diaper rash.

Arista argued that there was no likelihood of confusion between its mark and the SENSI-CARE marks because Arista uses a tagline “Sensible way of living” on its website. It argued that customers would assume its SENI mark means “sensible,” considering its tagline, whereas consumers would see SENI in the prior SENI-CARE marks as referring to “sensitive.”

The problem is that Airsta’s tagline was not in its trademark application. On appeal, the court said that the USPTO “must only compare the mark in the prior registration with the mark in the [present] application.” In re P.T. Arista Latindo, No. 2017-1292 (Fed. Cir. 2017). The court also said  “trade dress may not be used to prove that the commercial impressions are different, since trade dress may be changed at any time.”

The content of a trademark application is what is considered by the USPTO when deciding whether to register the mark. This is one reason it is important to do a trademark search prior to filing an application. A trademark search may help inform whether you should include a tagline, other words or characters, or graphical elements in your applied-for mark to increase the chance of distinguishing an already registered mark. Taglines, words, characters, or other elements that are not included in your application when it is filed probably will be of no help in distinguishing prior marks, as was the case for Arista.