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                                                         November 2010



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 Successful in Stopping Counterfeits in Japan

GRR recommends an active counterfeit monitoring program for its clients who carry out global manufacturing and marketing. Such a program may include recording trademark registrations with the customs authorities in jurisdictions in which the sale of counterfeit goods is common and working with local governments to track down counterfeiters. As a result of this type of program, GRR client Anna Sui Corp., represented by Amy B. Goldsmith, has been successful in seizing and destroying counterfeit goods in Japan, with the assistance of local law firm Soei. Recently, a Chinese couple residing in Tokyo was arrested for distributing counterfeit ANNA SUI goods in Japan.  

GRR Celebrates 40th Anniversary

On October 21, 2010 GRR celebrated its 40th anniversary.  GRR thanks all of its clients and friends for their support over the years and looks forward to continuing to provide its clients with outstanding service and representation. 

Attorney Presentations & Publications
Amy B. Goldsmith will be giving a presentation on Privacy and Data Security on December 7, 2010.  Click here for more information.

Diana Muller and Maria A. Savio were quoted in an article in the November 2010 issue Intellectual Property Magazine about counterfeiting in the sportswear industry.  A copy of the article is available here.

On November 8, 2010 Steven Stern gave a presentation on copyright and design patent protection of jewelry designs to students of the Gemological Institute of America.


Diana Muller
and Jeffrey M. Kaden participated in the ASIPI Round Table of Patent Experts, which appeared in the October 2010 issue of Corporate INTL.  A copy of the article is available here.


Amy B. Goldsmith's presentation on Fraud and Identity Theft is now available from Lawline.com.  Click here for more information.
ON THE LIGHTER SIDE
Golf--The Mother of Invention?

Now that Fall is in full swing and the weather is getting colder, for the golfers among us, there will be fewer opportunities to take out the clubs and play a round. That said, it might be time to think about purchasing some new equipment so that next year, that allusive birdie, that drive that goes straight as an arrow, or that chip from the sand that falls effortlessly onto the green, becomes reality.


To that end, here are some products that you might want to consider. And what makes these products of particular interest is that each of them has received the blessing of the United States or a foreign country by being granted the protection of a patent. In other words, the U.S. or foreign Patent Office was convinced that each of these items was innovative and therefore advantageous in some respect, that when used by the golfer would likely dramatically improve his or her golf game.


Headband PutterFor example, to improve your putting game, take a look at U.S. Patent No. 6,846,244, which is directed to a "Headband Golf Putter". The gist of the invention is that the putter club is attached at the handle end to a headband that is worn by the golf player. So instead of using your hands to guide the putter towards the ball, you guessed it-the golfer uses his or head instead.


One problem many golfers have is that they are constantly loosing the golf tee when they tee-off at the beginning of each hole. Well, British Patent No. 2,345,447 entitled "A Golf Tee On A Cord" attempts to solve this problem. According to the British patent, a length of cord is provided that can be attached at one end to a golf tee. The other end is wound onto a rotatable spool; the spool can then be removably attached to golfer's shoe. As can well be appreciated, you'll never lose another tee.


The Japanese are always coming up with innovative products for all sorts of industries and activities, and the area of golf is definitely no exception. In Japanese Patent No. 9,107,863 entitled "Tool To Prevent Golf Ball From Being Stolen", what is described is an electrocondutive ball stand. It is used as follows- when a bird comes by to try steal a golf ball, the electrical system of the stand is closed, thereby mildly shocking the bird so that it goes away. You'll never lose another golf ball.


Sand Trap RakePerhaps the most innovative product design is disclosed in U.S. Patent No.  5,109,617, which is directed to a "Heal Mounted Sand Trap Rake Accessory For Golf Shoes". Attached to the rear of the heel of one or both golf shoes is a small transversely mounted rake. Each rake includes a pivot mechanism such that the rake can be selectively lowered and thus be in raking contact with the sand surface as needed. With this product, no more expending energy in order to lift and operate a separate rake after hitting the ball out of the sand.


With these and other patented golf playing products, one's game is undoubtedly bound to improve. See you on the links!


For more information contact Jeffrey M. Kaden.
IP LAW IN PRACTICE
James Bond's Gun--A Registered Trademark
Product configurations can be registered as trademarks in the United States although doing so requires a significant showing to prove to the Trademark Office that the configuration has acquired secondary meaning such that consumers seeing the configuration identify it as a source indicator. 

Walther PPKA recent decision from the Trademark Office shows what it takes to register a product configuration. Carl Walther GmbH, maker of the Walther PPK handgun, sought to register the configuration of the gun as a trademark for use in connection with firearms; pistols; and air soft guns.  The examining attorney refused registration, finding that the configuration had not acquired secondary meaning.  Carl Walther PPK appealed to the Trademark Trial and Appeal Board ("TTAB"), which reversed (see decision here).  According to the TTAB, there was sufficient evidence that the configuration had acquired secondary meaning.  To support the application, Carl Walther GmbH submitted:  1) the results of a consumer recognition survey showing that approximately 54% of the respondents stated that they were able to identify the maker of the pistol based on its configuration (33% of the participants correctly identified Carl Walther GmbH or its licensees); 2) a declaration from a handgun expert stating that the configuration of the Walther PPK is one of the most recognizable gun configurations; 3) evidence of its promotion of the Walther PPK and unsolicited press regarding the Walther PPK; 4) evidence that the configuration of the Walther PPK has been licensed to various parties for the purpose of making replicas; and 5) evidence that the Walther PPK is known as "James Bond's gun" and has been prominently featured in film art and the opening sequences of the James Bond films. 

As can be seen, quite a bit of evidence is necessary to support the registration of a product configuration as a trademark.  As a result, applications to register product configurations are generally more expensive than applications to register word marks.  Moreover, in view of the amount of evidence needed to secure a registration, products that have been in the marketplace are more likely to be registrable than newer products.  This means that product configuration registrations will generally not be the first means considered to protect the look of a product.  If they can be obtained, however, product configuration registrations can be powerful tools.  GRR has obtained several product configuration registrations and is a leader in obtaining this type of protection.

For further information, contact Marc P. Misthal.
The Earth is Moving Under Timberland's Feet

We've mentioned before that it's important to conduct trademark clearance searches before adopting a new brand.  If a recently filed litigation proceeds to trial, we may find out if Timberland followed that procedure and whether "earth" is truly exclusive for footwear.


Meynard Designs had the earth covered, or so it thought, with its EARTH family of marks in the field of footwear.  In addition to an incontestable registration for the mark EARTH itself for footwear, it owns registrations for EARTH SPIRIT CLASSICS, MADE ON EARTH, EARTH GOLF, EARTH ORIGINS, EARTHIES and EARTH VEGAN.  Timberland decided to adopt "the earth," and branded a footwear collection EARTHKEEPERS.  Meynard Designs notified Timberland that "the earth" was off limits, but Timberland allegedly disregarded the warning.  Meynard filed a trademark infringement complaint this October, claiming that not only did Timberland adopt an earth-family mark, it emphasized the word "earth" in its use of the brand.  A copy of the complaint is available here.  The case is now pending in the United States District Court for the District of Massachusetts.  Perhaps Timberland is reassessing its allegiance to the earth?  We will follow developments in this case.

 

For more information, contact Maria A. Savio.

IP DEVELOPMENTS
Research Contract Resulting in Prior Invention in Another Country is Insufficient to Defend Against Patent Infringement

Solvay S.A. v. Honeywell International, Inc., 2009-1161 (Fed Cir. Oct. 13, 2010).

 

In early 1994, Honeywell (then AlliedSignal, Inc.) entered into a research contract with the Russian Scientific Center for Applied Chemistry ("RSCAC").  Under the contract, RSCAC developed a new process for making a chemical used in the manufacture of refrigeration and heat storage systems.  RSCAC developed the process in Russia and sent a report, detailing the invention, to Honeywell in the U.S.  Honeywell used the report to duplicate RSCAC's experiments with similar conditions and equipment.  Later in 1995, Solvay filed a patent application for the same process. 

 

Solvay's application issued as a patent and Solvay sued Honeywell for patent infringement.  Honeywell defended the action asserting a defense based on prior invention in this country by another who had not abandoned, suppressed or concealed it.  Honeywell argued (and the District Court agreed) that Honeywell conceived the invention in the United States upon receipt of RSCAC's report.  Accordingly, the District Court found the patent invalid.  On appeal, the Federal Circuit reversed and found the patent valid.  The Federal Circuit held that Honeywell could not be an inventor for purposes of the � 102(g) defense because Honeywell never conceived of the invention.  (Invention requires conception of an idea and reduction of that idea to practice.)  RSCAC was the inventor though RSCAC was not in this country.

 

The ruling is a tough one for Honeywell.  They had possession of the invention prior to Solvay, but Honeywell cannot use this fact as a defense to patent infringement.  Other than publicly disclosing the invention upon receipt from RSCAC, it appears that all Honeywell could have done to protect itself was file a patent application on behalf of RSCAC and assign the application back to Honeywell.  The lesson learned from this case is that possession and ownership are not the same.

 

For further information, contact Joshua Matthews.  Co-authored by Maysa Razavi.

Retailer Permitted to Bring Claims for Unfair Competition and False Endorsement Arising out of its Purchase of Counterfeit Goods
Famous Horse Inc. v. 5th Avenue Photo Inc., 08-4523 (2d Cir. Oct. 21, 2010).

Famous Horse Inc. operates V.I.M. stores in New York which sell low price brand name clothing.  In 2006 V.I.M. purchased jeans from the defendants.  V.I.M. subsequently discovered that the jeans it had purchased were counterfeit and stopped selling the jeans.  The defendants continued selling the counterfeit jeans to other clothing stores and in the course of pursuing those sales told prospective customers that V.I.M. was a satisfied customer.

V.I.M. filed a lawsuit for false endorsement, unfair competition and related claims after learning what the defendants were telling prospective customers.  On the defendants' motion, the district court dismissed the lawsuit and refused to allow V.I.M. to amend the lawsuit to cure any deficiencies.  V.I.M. then appealed.

The court of appeals reversed the lower court's decision, finding that V.I.M. had adequately stated a claim for false endorsement.  The court explained that V.I.M.'s allegation that the defendants falsely "stated and implied to its customers and prospective customers that V.I.M. was a satisfied customer of" their jeans stated a claim that the defendants had used a word, term, name or symbol or a false or misleading statement of fact which is likely to deceive as to the sponsorship or approval of the defendants' goods.  The court noted that a claim for false endorsement is broader than a trademark infringement claim and does not require that the alleged false endorsement use a plaintiff's trademark in connection with particular goods or services. 

The court of appeals also found that V.I.M. was entitled to assert a claim for unfair competition based on defendants' sale of counterfeit goods to V.I.M.  The court permitted the claim to proceed even though V.I.M. did not own the trademark that appeared on the counterfeit jeans.  According to the court, V.I.M. could assert the claim since it competes with the defendants.  Moreover, the sale of the counterfeit jeans would harm its reputation as a discount store because customers would believe that it sold jeans at higher prices when compared to the counterfeit jeans supplied by defendants and because consumers who learned of the counterfeit jeans would believe that V.I.M. sells counterfeit clothing.  In permitting V.I.M. to proceed with this claim, the court observed that V.I.M. might find it difficult to prove actual harm or damages at trial.

Accordingly, the court of appeals permitted V.I.M.'s lawsuit to proceed.
 
For further information, contact Marc P. Misthal.
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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