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ABA IP Law Section Surveys Members About Trademark Bullies

Excerpt from the ABA’s “Trademark Misuse Survey”

I’m all for this kind of dialog.

And I’m not knocking the ABA.

But in this context, it feels wasteful. Sen. Patrick Leahy got upset this summer when one of his constituents was publicly mistreated by a trademark bully. So, he got Congress to pass a statute to study the phenomenon of trademark bullies. Thus, the “Trademark Technical and Conforming Amendment Act of 2010” was born. (Previous STL post here.)

The ABA summarized the statute’s mandate: “[T]he Secretary of Commerce, in consultation with the Intellectual Property Enforcement Coordinator, is conducting a study on the extent to which small businesses may be harmed by litigation tactics of trademark owners attempting to enforce trademark rights beyond a reasonable interpretation of the scope of the rights granted to them.”

Today, the ABA’s IP Law Section circulated a survey that’s apparently intended to help inform the process.

So, it’s asking questions like: “Do you agree that trademark ‘bullies’ are currently a problem?” and “Has your company or your client within the past 5 years ever complied with the demands of a cease and desist letter involving trademark rights, even though your company or your client believed that your company or your client would have prevailed if the parties had litigated?”

Good questions. If only the answers would lead to something.

Here’s my two-word solution that I think would save a lot of bullying: Attorney’s Fees.

That’s what we should be studying. Whether amending the Lanham Act to award attorney’s fees to the prevailing party in all trademark cases — rather than only in “exceptional circumstances” — would reduce overreaching in the trademark world.

I think it would.

Posted on January 3, 2011 by Registered CommenterMichael Atkins in | Comments5 Comments

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Reader Comments (5)

I think loose fee-shifting is a good start, but I don't think it's complete. The real problem IMO is that TM owners unhesitatingly send C&Ds that suppress legitimate activity before anything gets to court. http://blog.ericgoldman.org/archives/2010/10/shining_the_spo.htm
January 3, 2011 | Unregistered CommenterEric Goldman
Like Mr. Goldman, I think the real issue is TM owners sending demand letters. Fee-shifting will not resolve that issue. Also the risk of fee-shifting could make small TM owners with a legitimate claim hesitant to pursue their case.
January 4, 2011 | Unregistered CommenterRobert Pierce
I'm concerned about Robert's point -- that the risk of a crushing fees award could make the little guy with a legitimate trademark issue hesitant to exercise his or her rights. So let's study the issue. I imagine an overzealous trademark owner would be less likely to bully others as well if it had to pick up the tab when it over-reached. There's got to be an economic hammer that disuades bad behavior.
January 4, 2011 | Registered CommenterMichael Atkins
Submissions to the USPTO end today. I'm in the midst of such a case. I wanted to submit my response with details and copy the bully/company who I believe is unaware what their legal team is doing. SparkFun had a similar situation which is documented on their website. It ended in an agreement outside the USPTO but still cost them time and money. My lawyers are telling me not to go into great detail on the submission, not to copy the other company and to wait for our (expensive) summary judgment motion which are our current next steps. Any thoughts?
January 7, 2011 | Unregistered CommenterJessica
Agreed. Getting a panicked phone call from mom whose company (received federal grant under the company name) was being told it could not use the name because a small, local bank also used a similar name (in Kansas...). Mom's company (in Washington) does DoD weapons research, has no public presence and does not make coffee mugs, t-shirts or other items under the bank's trademark, but they sent the letter, threatening action anyway. A letter back and we received no further response (maybe it had to do with the comments about the local company is in the business of top secret weapons testing for special operations units and people generally do not like to bring litigation if you are building things that kill), but it was just plain stupid and a waste of time, and if mom was not in the business she was in, it could have been stupid litigation (no possibility of confusion here, the only public presence was a line-item in congressional budget, and it stated for IED detection and detonation).
January 11, 2011 | Unregistered CommenterApollo Fuhriman

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