What a Trademark Is and the Rights Federal Registration Provides
A trademark is any word, phrase, symbol, design, or combination of these that identifies the source of goods or services and distinguishes them from those offered by others. The name on the label, the logo on the packaging, the slogan in the advertising, and even the distinctive shape of a product or its packaging can all function as trademarks if consumers associate them with a particular source.
Trademark rights in the United States arise from use, not from registration. A business that uses a distinctive mark in commerce acquires common law trademark rights in the geographic area where the mark is used, even without obtaining a registration from the USPTO. Federal registration extends those rights nationwide and adds legal presumptions and enforcement tools that make the mark significantly easier to protect.
Types of Trademarks
Word marks protect the name itself, independent of any particular font, style, or design. When a company registers a word mark, the registration provides legal protection for the word (or words) in standard character format. A word mark registration for NIKE, for example, protects that name whether it appears in block letters, script, or any other typeface.
Design marks (also called logo marks) protect a specific visual design, symbol, or logo, which may or may not contain words. The Nike swoosh is a design mark. Protection for design marks is narrower than word marks because they protect only the specific design as filed, and a subsequent material alteration of the design may not be protected by the registration for the original design.
Slogans can function as trademarks when they identify the source of goods or services rather than serving as merely informational or ornamental. "Just Do It" functions as a trademark because consumers associate it with Nike.
Trade dress protects the overall commercial image or look and feel of a product or its packaging. The distinctive shape of a Coca-Cola bottle, the layout of an Apple Store, and the red sole of a Christian Louboutin shoe are all examples of trade dress that have received trademark protection. Trade dress claims require proof that the design is distinctive (either inherently or through acquired distinctiveness) and that it is non-functional. Product design trade dress always requires proof of acquired distinctiveness under Wal-Mart Stores, Inc. v. Samara Brothers, Inc., 529 U.S. 205 (2000).
Sound marks protect distinctive sounds that identify a source. The NBC three-note chime, the MGM lion's roar, and the Intel bong are all registered sound marks. Sound mark applicants submit an audio file and a written description of the sound in place of the traditional drawing, and they must still provide a specimen, an audio or video recording showing the mark in actual use.
Common Law Rights and Their Limits
Trademark rights arise when a trademark owner is the first to use the mark in commerce. A company that adopts a distinctive mark and uses it in connection with goods or services in commerce acquires common law trademark rights automatically. These rights don't require registration, and they're enforceable against later users of confusingly similar marks in the geographic area where the senior user operates.
Common law rights have significant limitations. They extend only to the geographic area where the mark is used and recognized. A restaurant operating under a distinctive name in Houston has common law rights in the Houston area, but a different restaurant could adopt the same name in Dallas without infringing those rights, assuming no consumer confusion between the two markets and that the Dallas restaurant adopted the name in good faith, without knowledge of the Houston restaurant. Common law rights also lack the legal presumptions that come with federal registration, making enforcement more difficult and more expensive.
What Federal Registration Provides
Registration on the USPTO's Principal Register carries a legal presumption that the mark is valid, that the registrant owns it, and that the registrant has the exclusive right to use it nationwide in connection with the goods and services listed in the registration. In litigation, these presumptions shift the burden to the opposing party to prove otherwise, which is a significant procedural advantage.
Registration provides constructive notice to the entire country that the registrant claims ownership of the mark. After registration, no one can claim they adopted a confusingly similar mark in good faith without knowledge of the registrant's rights. This eliminates the "innocent adoption" defense that would otherwise be available to a junior user in a geographic area where the senior user hasn't operated.
Registration allows the owner to record the mark with U.S. Customs and Border Protection, which authorizes Customs to stop imported goods bearing infringing marks at the border. For companies dealing with counterfeit products, this is one of the most practical enforcement tools available.
Registration provides access to federal court for infringement claims under the Lanham Act for trademark infringement, with remedies that include injunctive relief, actual damages, disgorgement of the infringer's profits, statutory damages in counterfeiting cases, and attorney's fees in exceptional cases. While common law trademark claims can also be brought in federal court under certain circumstances, a federal registration simplifies the jurisdictional analysis and strengthens the plaintiff's case.
After five years of continuous use following registration, the owner can file a Section 15 declaration of incontestability. An incontestable registration is immune from challenge on most grounds, including the argument that the mark is merely descriptive. Incontestability doesn't make the registration completely bulletproof (it can still be challenged on grounds of fraud, abandonment, functionality, or genericness), but it eliminates the most common basis for attacking a registration.
The Registration Symbol, the TM Symbol, and the SM Symbol
The ® symbol may be used only with a mark that has been registered with the USPTO. Using the symbol on an unregistered mark, if done deliberately to deceive, is treated as fraud by the USPTO and the courts, and it can sink a pending application and undermine a later enforcement action. The statute's incentive runs the other way too. A registrant who fails to display the notice cannot recover profits or damages under 15 U.S.C. § 1111 unless the infringer had actual notice of the registration, so use the symbol once the registration issues, and never before.
The ™ symbol can be used with any mark that a company claims as a trademark for goods, regardless of whether it has been registered. Using ™ puts the public on notice that the company considers the word, phrase, or design to be its trademark. There is no legal requirement to use ™, but the designation can serve as practical evidence that a later user knew of the claimed mark before adopting a confusingly similar one.
The ℠ symbol serves the same function as ™ but applies to service marks (trademarks used in connection with services rather than goods). A law firm, consulting company, or restaurant would use ℠ rather than ™ because they offer services, not physical goods. In practice, ™ is commonly used for both goods and services, and the distinction is less rigidly observed than the distinction between these unregistered symbols and the federal registration symbol.
Registration Is the Starting Point
A federal trademark registration is one of the most cost effective legal protections a business can obtain. The filing fees are modest relative to the value of the rights, and the registration provides a foundation for enforcement that would otherwise require extensive and expensive proof of common law rights. But registration alone doesn't protect the mark. The owner must monitor for infringing uses, enforce its rights against infringers, maintain the registration through required filings, and use the mark consistently in the form in which it was registered. A registration left in a drawer while competitors adopt similar marks provides a false sense of security that unravels when enforcement becomes necessary.
Related practice area: Trademarks
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