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                                                         February 2011



GRR Intellectual Property News is a newsletter issued by Gottlieb, Rackman & Reisman, P.C., an IP boutique.

 

The purpose of this newsletter is to keep in touch with our friends and colleagues as well as provide practical information and news relating to Intellectual Property law.

 

Please forward this newsletter to anyone who might be interested.

Previous issues of GRR Intellectual Property News can be found on our
website.

GRR NEWS

GRR Client Obtains Preliminary Injunction  


On December 23, 2010, after a two day evidentiary hearing, Judge Rakoff of the Sourthen District of New York issued a preliminary injunction in favor of GRR client Famous Joe's Pizza, Inc.  Famous Joe's Pizza was represented by GRR attorneys Maria A. Savio and Marc P. Misthal.  The preliminary injunction bars the defendants from using reviews of Famous Joe's Pizza's restaurant to promote their restaurants and from otherwise associating themselves with Famous Joe's Pizza's restaurant.  A copy of the decision can be found here.  The case has been covered in the Wall Street Journal and the Daily News   

GRR Attorney Contributes Chapter to Book on Trademark Strategy


Maria A. Savio contributed a chapter on "The Ongoing Impact of In re Bose on Today's Trademark Strategies" to a publication entitled RECENT TRENDS IN TRADEMARK PROTECTION: Leading Lawyers on Advising Clients, Reviewing Trademark Strategies, and Responding to Recent Fraud Litigation. The publication is the 2011 Edition of the Aspatore INSIDE THE MINDS series.  Aspatore is a Thompson Reuters company.  The update was published this January.

Attorney Presentations & Publications


Ted Weisz was quoted in an article in the Wall Street Journal about new procedures in the Patent Office intended to expedite the examination of patent applications.  The article can be found here.  

Amy B. Goldsmith's presentation on Critical Implications of Costco v. Omega on the Grey Goods and the First Sale Doctrine is now available from Lawline.com.  Click here for more information.

ON THE LIGHTER SIDE

Fantasy Trophy?  Not in the Real World   


The interrelated businesses of professional football and fantasy football are normally in sync with one another. NFL players participate in fantasy leagues and the NFL's own website includes its own fantasy products and information.  And when a football fan wins in a fantasy football league, one of the awards they are likely to receive is a trophy - much like the famous Vince Lombardi Trophy that is awarded to the NFL Super Bowl champion (this year it was the Green Bay Packers).  However, under U.S. copyright and trademark laws, one can go only so far into the NFL's territory before it turns a half-hearted three man rush into an all-consuming blitz. 

 

A fantasy football business got itself into legal hot water with the NFL over the design of its wooden trophies.Titlecraft, Inc., a company which produces fantasy football league trophies, tried initiating a legal preemptive strike by seeking a declaration from the federal district court located in Minnesota that its trophies do not infringe the NFL's proprietary rights in the Lombardi Trophy.  However, this strategy ultimately backfired as the NFL, instead of "punting", threw the "bomb" by counterclaiming against Titlecraft for copyright and trademark infringement.  

 

In the lawsuit, the NFL sought summary judgment in its favor regarding Titlecraft's liability for copyright infringement.  Under U.S. law, to establish a viable claim for copyright infringement, the NFL was required to demonstrate that (1) it owns a valid copyright to the Lombardi Trophy design; (2) Titlecraft had access to the trophy; and (3) Titlecraft's trophy design and the Lombardi Trophy design are substantially similar in appearance.  Because there was no dispute that the NFL owned a valid copyright in the Lombardi Trophy design or that Titlecraft had access, the only issue on which the Court was asked to opine was substantial similarity.  

 

The court concluded that the design of the Titlecraft trophy was substantially similar in design and appearance to the Lombardi Trophy.  The Court found that there was no dispute as to the visual similarities between the trophies, including the downward-angled footballs, the scale and size of the footballs, no other football-related adornments, the direction of the laces, and the smooth-like surfaces of the footballs.  The court went on to say that "no ordinary observer could conclude that Titlecraft's trophies have anything but the same concept and feel as the Lombardi Trophy."  In fact, the court went on to state that Titlecraft's trophies are "appropriations" of the Lombardi Trophy because they are virtually identical in "shape, size, aesthetics, and feel."

 

In the end, the court granted the NFL's motion for partial summary judgment against Titlecraft (click here for the decision).  Although Titlecraft made a veiled attempt  to point out what the court ultimately considered to be minor differences in appearance, the court, rather sarcastically, concluded that "'if it walks like a duck, quacks like a like and looks like a duck, it has got to be a duck' - or in this case a copy."  

 

Game over. Or is it? Indeed, query whether Titlecraft will throw out the "red flag" and file an appeal. Stay tuned.

 

For more information contact Jeffrey M. Kaden.

IP LAW IN PRACTICE

Who May Sign Trademark Applications and Related Documents that are Filed with the USPTO

A common question, especially from attorneys in foreign countries, is whether they can sign U.S. trademark applications and related documents on behalf of their clients. Clients would normally grant general powers of attorney to these lawyers to sign trademark applications. The rules in the United States are quite strict.

 

Not authorized: the signatory is presumed to be unauthorized (in which case the application may lose its filing date) in the following situations:

 

?         No title or position is provided (ie, President, member of an LLC)

?         The signatory is a foreign attorney or a foreign law consultant with a U.S. firm

?         A non-attorney is the signatory (paralegal, administrator)

?         The address of the signatory is that of a foreign law firm

?         The signatory of an application filed by a foreign company identifies herself as an attorney but doesn't provide the name of a law firm or an address

?         Attorney-in-fact is used without identifying details such as membership in a State Bar, firm  name and address

?         The identifier is "general counsel" or "in house counsel" without identifying details such as admission to practice in the USA

?         The person signing identifies herself as an "authorized signatory" but doesn't list her relationship to the applicant or registrant

?         The signatory is a new attorney from a different firm, when the applicant or registrant had previously appointed a qualified practitioner and no new power of attorney or revocation of the previously appointed power has been made of record

 

Authorized: In the following situations, a signatory is presumed to be authorized to represent an applicant or registrant:

 

?         The signatory is identified by her title or position (e.g., "President," "Vice President," "Treasurer," "Secretary") of a U.S. corporation or the equivalent for another type of business entity (e.g., "Partner" for a partnership, "Member" or "Principal" for a Limited Liability Company)

?         The person signing for a previously pro se applicant or registrant identifies him/herself as an attorney in good standing of the bar of the highest court of any state in the United States who is practicing abroad (e.g., Mary Smith, member of New York State Bar, with offices in Nassau, Bahamas)

?         The signatory for a foreign company identifies him/herself as "general counsel" or "in-house counsel" AND a "corporate officer" or another corporate officer position (e.g., "Secretary," "Treasurer," or "Vice President")

?         The signatory for a previously pro se applicant or registrant identifies him/herself as an attorney with a United States law firm or as "general counsel" or "in-house counsel" of a United States applicant

?         The person signing is from the same law firm but is a different attorney from the the current attorney of record

 

In view of the foregoing, there is a presumption that outside counsel may not be entitled to sign a trademark application especially since the rules also provide that the signatory must have "first hand knowledge of the facts" and actual or implied legal authority to bind the applicant. Hence, if an attorney or outside counsel is not directly involved in the actual business of the company, it will be difficult for him or her to state that he or she has "first hand knowledge of the facts" meaning knowledge of the company's business and decisions.

 

Moreover, even if "attorney" is written under the signature line, it will be necessary to state that the attorney is licensed to practice in one of the 50 states of the United States, by saying "Member of the Bar of the State of ___."  Additionally, legal authority to bind the company in general is given to an officer of the company, and that is one reason why the in house general counsel is normally a corporate officer.  

 

To avoid all of these issues, an officer of the company should sign the application, and the title of the officer should be clearly listed.

 

An alternative could be to have the application prepared electronically and subject to previous authorization and consent, including the name of one of the officers of the company.  

 

For further information, contact Diana Muller or Marc P. Misthal

New Domains in Asia 

Two new country code Top Level Domains will be launched soon in Asia. Companies will have the opportunity to register a domain name, typically the company's trademark, in English or Chinese characters, followed by a Chinese character suffix meaning Hong Kong, as follows: _______.香港, and one signifying China, namely ________.中國.  Businesses who manufacture or sell products or offer services in Asia will likely take advantage of the new domain names, but businesses who are concerned about "knock-off" websites should also take note.

 

For further information, contact Amy B. Goldsmith.

IP DEVELOPMENTS

Court Dismisses Claim that Harry Potter Book is an Infringement   

Allen v. Scholastic Inc., 10 CV 5335 (S.D.N.Y. Jan. 6, 2011).

 

Plaintiff sued Scholastic, Inc. ("Scholastic") in his capacity as the trustee of the estate of Adrian Jacobs, alleging that J.K. Rowling's Harry Potter and the Goblet of Fire infringed the copyright in Jacobs' book The Adventures of Willy the Wizard - No 1 Livid Land ("Livid Land").  Jacobs published Livid Land in 1987.  Scholastic moved to dismiss the complaint, arguing that even assuming that it had access to Jacob's book, any similarities between the books were not protectable.  After reviewing the two books, the court agreed and dismissed the lawsuit.  The court explained that there were some similarities between the works, such as the fact that both books tell the story of a wizard competition, but those similarities are not protected by copyright.  The court noted that the total concept and feel, themes, characters, pace and setting of the works were very different.  As a result, the court determined that since there were no protectable similarities between the works Jacobs could not assert any meritorious claim and dismissed the case.

 

For further information, contact Marc P. Misthal.

Defendant not Liable for Affiliate's use of Third Party Trademark in Online Ads   

1-800 Contacts, Inc. v. Lens.com, Inc., 2010 U.S. Dist. LEXIS 132948 (D. Utah Dec. 15, 2010). 

 

Plaintiff 1-800 Contacts sued defendant Lens.com for trademark infringement, alleging that Lens.com had bid on the misspellings and variations of the 1800COTNACTS mark and that Lens.com's affiliates had bid on plaintiff's 1800CONTACTS mark, all for the purpose of generating sponsored links, through Google's AdWords program, for defendant's website.  Plaintiff moved for summary judgment on its claim of trademark infringement.

 

In analyzing the issue, the court explained that the case presented two different types of use: (1) use of plaintiff's mark as a keyword, and (2) use of plaintiff's mark in the language of advertisements, or sponsored links. In both instances, defendant's affiliates - not defendant itself - purchased 1800CONTACTS as keywords and used the mark in the text of ads.   The court concluded that both types of use of 1-800 Contacts' mark were actionable.  The court further pointed out that Lens.com could be liable for direct infringement if it keyword purchases had resulted in consumer confusion. 

 

The court explained that the focus of the likelihood of confusion analysis is on consumers viewing the mark, and that since consumers do not view keywords, the likelihood of confusion does not change if the advertisement they are shown upon entry of a trademark as a keyword is the same as the advertisement that appears when a generic term is entered as a keyword (a competitor's purchase of a broad match for the keyword "contacts," may result its advertisement being displayed by a search for "1-800 Contacts").  This was reinforced by the fact that a majority of plaintiff's impressions (appearances of an advertiser's link on a user's computer) were triggered by non-trademarked keyword searches. As a result, the court concluded that the mere purchase of a trademark as a keyword cannot alone result in consumer confusion.  

 

Next, the court ruled that advertisements which used plaintiff's mark, which were placed by an affiliate, produced a strong likelihood of confusion. Remarkably, plaintiff did not name the affiliates as a party to the case and instead sought to impose liability on defendant for the actions of its affiliates. The court dismissed all of plaintiff's secondary infringement theories and as a result, plaintiff lost its case. Therefore the question remains whether this plaintiff - or any plaintiff - could emerge victorious if an advertising affiliate uses a protected trademark in its online ad copy and the affiliate is named in the lawsuit. Keep your lenses peeled for further developments in this area of law.

 

For further information, contact Rachel M. Weiss.

 
Intellectual Property News Editorial Board:   Amy B. Goldsmith (agoldsmith@grr.com), Richard S. Schurin (rschurin@grr.com), Marc P. Misthal (mmisthal@grr.com) and Steven Stern (sstern@grr.com) of Gottlieb, Rackman & Reisman, P.C.

 

Suggestions, questions and comments should be directed to the Editorial Board by email or telephone (212) 684-3900.

 

For forty years, Gottlieb, Rackman & Reisman, P.C. has provided legal advice and guidance on all aspects of patent, trademark, copyright, and unfair competition law, tailoring its counsel to the specific needs of its clients. 

 

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