Posts Tagged ‘cease and desist’

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I’ve written previously on using the virtues of judo when responding to a cease and desist without going overboard. What about when you’re faced with someone infringing or diluting your trademark? What options are there, other than the C&D?

Understandably, many trademark owners, after the initial rage subsides, will call up their brother’s ex-girlfriend’s cousin who once knew a lawyer in Omaha and have them write a nasty C&D and “see what happens”. That might work. It is certainly cheaper on the front end. Or is it? Whether to send a C&D is not a simple question.

For many product and service providers (i.e. businesses), their brand is their stock in trade. Without trademark protection, their brand may as well be your competitor’s brand. I’m fond of saying that only McDonald’s could serve billions of crappy burgers in every corner of the globe. John Doe’s Burgers could never pull that off. It’s all in the brand. Infringers are taking shortcuts, cheating, and basically capturing your goodwill, as embodied in trademarks, which are worth fighting over. The question is whether a fight is necessary, and if so, how and when should you start the fight.

Most trademark owners know, at a gut level, that an infringer must be stopped, or at least put on notice that they are infringing. Failure to do so causes the trademark to lose its integrity and legal protections. C&Ds are cheap, and especially for small businesses and startups, are a cost-effective way to enforce their rights.

A C&D is not unlike most demand letters. The trademark owner states that she owns certain rights, the recipient is infringing on said rights, such infringement creates certain causes of action for damages and injunctive relief (e.g. trademark infringement, unfair competition, cybersquatting or dilution under federal and state laws); and litigation may ensue if the infringement does not cease.

You are well advised to consider a C&D prior to litigation, for obvious reasons. Litigation is expensive, time-consuming, stressful, and uncertain. On top of that, if you sue without first making demand to cease, the judge may believe you are being a hasty litigant.

However, sending a C&D can have unforeseen consequences. Your competitor could read your letter and decide that rather than bothering with negotiation or waiting to be sued by you, it should take the offensive and sue first. A suit in federal court for declaratory relief — basically a court order stopping you from infringing on the infringer, could ensue.

In a declaratory judgment lawsuit, the alleged infringer would ask the court to “declare” that it is not infringing your rights. They might ask the judge to hold that your trademark is unenforceable. Now you’re on the defensive — though you can, and maybe should, counter sue.

There are advantages to suing first. You can pick the most favorable venue for your case, probably your home turf. This advantage is greater if your adversary is far away, or if they have a smaller war chest with which to litigate. Of course, the other party can move to transfer the case, but then you’re already behind the eight ball.

Additionally, dispensing with the customary C&D and suing on your home turf, while possibly more costly at first, certainly sends a stronger message. Your adversary might be unable or unwilling to defend a lawsuit.

A third option might be to send a different sort of letter. Rather than demanding that the infringer cease and desist and accusing them of infringement, you might simply inquire as to their use of the mark and make clear your intent to resolve the matter amicably. Before sending any letter, be sure that you have higher priority rights to the trademark. Nothing is worse than sending a C&D full of bravado, then learning that your competitor has better rights to the mark. Do your homework. If it turns out that the would-be infringer has better rights, sending out the first C&D could foreclose defenses that the marks do not overlap.

So, next time you spot a potential infringer, think hard before sending a C&D. You have options, so use them.

Aaron Thalwitzer is an attorney with Zies Widerman & Malek practicing civil litigation and intellectual property law in Melbourne, Brevard County, Florida.

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By Daniel Davidson

Dr. Dre is not a new comer to fighting in courts for his intellectual property.  Around this time last year, a judge awarded Dre 100 percent of the online sales of his iconic compilation, The Chronic.  In a recent letter sent to up-and-coming music producer, DIAMONDDre, the Dr. tells him to lose the name.

DIAMONDDre was granted a Certificate of Registration from the U.S. Patent and Trademark Office on December 6, 2011 for his moniker.  Also a holder of a U.S. Trademark Registration, you guessed it, Andre Young, p/k/a Dr. Dre.  In fact, the two service marks are registered in International Class 41 for entertainment services (tisk, tisk Examining Attorney).

In the letter issued to DIAMONDre, Dr. Dre demands that DIAMONDDre cease and desist any further use of the name, or he will pursue his rights in a court of law.  Would Dr. Dre have a case?  I would think so.  I am even surprised that a likelihood of confusion refusal wasn’t issued by the Examining Attorney of DIAMONDDre’s trademark application.

Nonetheless, I am sure that Dr. Dre has given DIAMONDDre a deadline in which to agree to comply with the cease and desist letter.  Should DIAMONDDre not comply with Dr, Dre’s demands, within the allotted time frame, it will be interesting to see if Dr. Dre will fight to remain the only Dre in the music production business.  The value that Dr. Dre’s name has obtained is worth millions, and I would have to assume that it would be worth it to Dr. Dre to uphold his exclusive right to use the name Dr. Dre in connection with entertainment services.  Is “DIAMONDRE” exactly the same as “Dr. Dre?”  Of course not, but it us confusingly similar, the standard for confusion in trademark law.

Cheers.

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A friend of mine owns a relatively small start-up company in Brevard County, Florida which manufactures a product used to improve energy efficiency in homes and other buildings. Not coincidentally, given the subject matter of TacticalIP.com, this friend, who we’ll call Jim, was sent a cease-and-desist letter from the company who is the 800-pound gorilla (hereinafter, “Gorilla”) in the industry in which his product and company competes. Gorilla demanded that Jim stop using his company’s name, which he has been using for over 10 years in interstate commerce, on his website, on all of his marketing materials, and on the product itself. Gorilla, however, had registered a very similar name with the USPTO. If Jim had to stop using his company’s name, it would hurt his business — something Gorilla wouldn’t mind one bit!

Jim came to me with the letter, quite concerned that he might be forced into litigation with a deep pocketed adversary, against whom any victory would be Phyrric. Jim was not hysterical, but he was getting ahead of himself. As they say, it’s better to be lucky than good, but Jim was both. He’d been using his product under the name, in interstate commerce for a good while before Gorilla registered the trademark. Better still, he could prove it, in writing! (Sidenote: always document, always, always always document, your lawyer will thank you). With information in hand, we could respond with confidence, and try to put Gorilla in its place.

But just as might isn’t always right, being right isn’t always enough. Escalating the dispute would get us nowhere fast, and while my friend was not a pauper, he didn’t have a million dollar litigation budget either. Clearly, Gorilla had assigned value to the trademark in question. They had registered it, and retained a high-profile law firm to try to enforce its rights, such as they were, to the mark. So, instead of simply denying the allegations of infringement and dilution, and having confidence that we’d established our mark, we decided to make a proposal to Gorilla.

We responded, denying their allegations. But, as delicately as we could manage while still making our point, we offered to license the mark to Gorilla, in exchange for reasonable compensation. Rather than a threat, we we chose to view the cease-and-desist as a potential opportunity.

A week or two later, I got a call from Gorilla’s attorney. He got the message, loud and clear, and he was calling to feel us out. I couldn’t provide those sorts of details, and we ended our conversation. That was well over a year ago. We haven’t heard from Gorilla, and they haven’t sued us. Jim’s still growing his business, which would be that much tougher if he had to spend money on litigation.

This tactic won’t work every time, and we had the fortune of having a good case and a good faith interest in being acquired. But the takeaway is clear: responding to force with force wasn’t going to work in this case. This wasn’t Apple v. Samsung, or even Frito Lay v. Pretzel Crisps. Taking the gloves off would only serve weaken both parties and leave the weaker side exposed in a war of attrition. We had to make this a judo match rather than a brawl. Parry and thrust won’t always carry the day, but the righteous little guy needs every advantage he can get.

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By: Mark R. Malek

I came across a story on the Businessweek Magazine Website that rang my trademark bully alarm.  It seems as though Entrepreneur Magazine, which publishes a magazine geared towards the interests of, wait for it, wait for it – entrepreneurs, is suing  entrepreneurs for trademark infringement.  As I was initially reading the story, I was thinking – ok, this author might not have it right.  Entrepreneur Magazine is probably only really going after folks who are putting out competing magazines and using the “Entrepreneur” trademark for their magazines.  Unfortunately, Paul Barrett did understand and was right on.

Entrepreneur Magazine’s latest victim is Daniel Castro, who operates the website EntrepreneurOlogy.com.  Daniel is described as being a serial entrepreneur, having started several different businesses. EntrepreneurOlogy.com is website that, essentially, promotes Mr. Castro as an aid to entrepreneurs and provides tools to “corporate executives to get back to the basics of entrepreneurship.”  Entrepreneur Magazine does have a trademark for “Entrepreneur,” among many others, as used in relation to “advertising and business services, namely, arranging for the promotion of the goods and services of others by means of a global computer network and other computer online services providers; providing business information for the use of customers in the field of starting and operating small businesses and permitting customers to obtain information via a global computer network and other computer online service providers and; web advertising services, namely, providing active links to the websites of other.”

Point of order – isn’t this exactly what entrepreneurship is?  At least a part of it?  For example, “providing business information for the use of customers in the field of starting and operating small businesses.”  Is that not the same as saying “providing business information to entrepreneurs?” Seems to me that, if I were Entrepreneur Magazine, I would be somewhat careful about trying to flex some trademark muscle against folks…especially against my own customer base.  Has this trademark registration been put to the test yet?  Seems to me as though suing your target audience is not a very bright idea.  How are entrepreneurs supposed to trust anything in a magazine for entrepreneurs that involves the advice of “sue your target audience?”

Time to play devil’s advocate.  Let’s say that I am the trademark attorney for Entrepreneur Magazine, and let’s say that my client comes to me with a list of potential infringers.  On that list are three magazine publishers that include the mark “Entrepreneur” in their title, and three websites that are titled “Entrepreneur” and that each provide business information for the use of customers in the field of starting and operating businesses.  I probably advise my client to ask the magazines to stop immediately.  I probably then tell my client that it is time to do a very in-depth analysis of the websites.  My question to my client is the following: “how else do you think this website should describe their target audience, i.e., how else would you refer to someone that is starting a new business?”  If the answer is anything remotely close to “it wouldn’t make sense to call them anything but entrepreneurs,” then I ask my clients to probably reconsider going after the website, especially if the website merely incorporates the word “entrepreneur” into their title.

If your trademark is the only way to say a particular thing, i.e., your trademark becomes the generic term, then it is not protectable.  For example, the following used to be trademarks: aspirin, trampoline and escalator.  Here are a few that I just can’t believe are still around: Band Aid, Popsicle and Jacuzzi.  Seems to me as though Entrepreneur needs to watch its step here.  I’m not saying that entrepreneur is becoming generic as to magazines for business start ups, I’m just saying that a trademark registration does not give them the ability to remove the word from the lexicon.

 

 

 

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By: Mark R. Malek

Living in Central Florida, the story of the death of young Caylee Anthony, allegedly at the hands of her mother, has really taken over news.  The local media loves the case and, on average, at least between five and seven minutes of every local newscast is riddled with some sort of new development.  Right now the case is in the jury selection phase and, as you can imagine, there is much difficulty in seating a jury.

I normally do not follow the local news.  I find it to be almost disturbing.  Nowadays, it is just a series of this person shot that person, there was an accident that backed up traffic today, something happened at Disney, the weather is beautiful, and sports.  That’s not interesting enough to keep my attention.  Just put ESPN on in the background, and I’m a happy camper.  The Casey Anthony fiasco, however, has caught national attention.

The case really got on my radar about two days ago, as I was getting ready for bed and the local news was on the TV as background noise.  I heard the word “trademark,” which made me look up.  Then I saw Casey Anthony’s parents on the TV and wondered what the TV anchor got wrong.  I rewound the DVR to see what I had missed and, sure enough, the TV anchor did not get it wrong.  There was a trademark issue involving Casey Anthony’s parents (a pair that have not been getting some good press either).

According to this story, the Anthony’s filed a trademark application on Caylee’s name and has sent a demand to Café Press demanding that merchandise bearing the name “Caylee” be removed from the site.  Here are the results of a search I did on the CafePress.com site.

I am not so sure that this story is accurate.  I did a search of the USPTO records to view the application and could not find any trademark application for “Justice for Caylee” anywhere.  Nor could I find any application that included the name “Caylee” as any part of it.  I also did a search of the trademark records for the State of Florida and could not find any applications pending that might relate to this poor girl’s name.

For the sake of argument, however, let’s say that the article is accurate and that the grandparents of Caylee Anthony have filed a trademark application relating to Caylee’s name.  How are they using this in commerce?  Also, what is so offensive about a group of people that would like to make a little money and, at the same time see some justice done for this child (who I believe was about four years old at the time of her death, was found in a plastic bag dumped in a swamp behind the home of the grandparents, and whose DNA was found in the trunk of her mother’s vehicle)?  I understand that this case is emotional on many different levels and, to tell you the truth, there is no particular side that I support with respect to this trademark disagreement.  The folks who are selling these t-shirts are not exactly in the right (morally), and the grandparents have no trademark rights.

This is a sad case all around, and there is no winner here.  I just can’t believe that in the middle of this entire mess, trademark law has found a way to become an issue.

 

 


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THURSDAY, MAY 23, 2013

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