Trademark and Unfair Comp.

Boston College Law School

January 14, 2009

Introduction

Topics

• Case: Quality Inns v. McDonalds• Theories for Protection• Context

– Brief History of Trademark– Sources of Law– Institutional Structure

• Course Roadmap• Administrative Details

Quality Inns v. McDonald’s(695 F. Supp. 198 (D. Md. 1988)

Quality Inns v. McDonald’s(695 F. Supp. 198 (D. Md. 1988)

Quality Inns v. McDonald’s(695 F. Supp. 198 (D. Md. 1988)

Why Protect Trademarks?

1. Protect consumers from confusion

2. Provide incentives for investing in quality

3. Prevent other companies from free-riding

4. Reward companies for their labor

5. Protect value of trademark (and associated goodwill) as a good in itself

Costs of Trademark Protection

1. May raise costs of competition

2. May hurt consumers

3. May harm free speech interests

Competing Visions of Brands

• The case for– Provides information to consumers– Ensures quality of product– Creates valuable associations consumers want

• The case against– Creates artificial distinctions, raising prices– Encourages unhealthy wants & desires– No need for additional legal protection

Trademark Law - Context

• Historical Context

• Sources of Trademark Law

• Institutional Framework

• Comparison With Other I.P.

History - Early MarksPottery Stamps

Crete

c. 2000 B.C.

Brick Stamps

Rome

c. 10 B.C.

Paper Watermarks

Europe

c. 13th century

Silversmith Marks

U.S.

c. 18-19th century

History - Early Purposes

• Form of advertising

• Used to prove source of goods

• Guarantee of quality

History - U.S. Trademark Act• Pre-1870: state common law protection• 1870: first federal trademark act

– Based on Copyright and Patent Clause– Struck down in Trade-Mark Cases, 100 U.S. 82 (1879)

• 1881: new federal trademark statute– Based on Commerce Clause– Upheld as valid exercise of commerce power

• 1946: Lanham Act• 1996: Anti-Dilution Act

History - I.P. Clause

• U.S. Const. Art. I, sec. 8: Congress shall have the power:– “to promote the Progress of Science and useful

Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

Sources of Trademark Law

• State Common Law and Statutes– State law not preempted (unlike copyright/pat.)– Can register trademarks in each state

• Federal Protection Under Lanham Act– Provides process for registering marks federally– Provides protection for registered marks– Also provides protection for unregistered marks

Institutional Framework• Patent and Trademark Office

– Registers trademarks– Adjudicates trademark registration disputes (T.T.A.B.)

• Appeals from registration denials• Opposition or cancellation proceedings

• Federal Courts– Appeals from trademark registration adjudication– Infringement actions under Lanham Act

• State Courts– Infringement actions under state and federal law

Comparison with Other I.P.Copyright Patent Trademark

SubjectMatter

Creative works(books, music, movies,software, etc.)

Innovation(inventions, processes,methods, etc.)

Product identifiers(names, logos,slogans, etc.)

Length ofProtection

Life + 70 years 20 years from filing As long as used

Requirementsfor Protection

Originality andfixation

Novelty, nonobvious-ness, utility; pre-approval process

Distinctive-ness, use incommerce

Scope No copying, publicperformance, publicdisplay, derivativeworks

No use, sale, creation,manufacture;independent discoverynot a defense

No likelihood ofconfusion, dilutionof famous marks

Contact Information

• Office Hours– Location: East Wing, 313– Hours: Mon. 1:30-3 p.m., or by appointment

• E-Mail– liujr@bc.edu

• Phone– 617-552-6377

Assignment for Next Class

• Read II.A & B – Subject Matter– Types of Marks– Distinctiveness