Law 227: Trademarks & Unfair Competition Trademark Dilution July 2, 2009 Jefferson Scher

TM & Unfair Comp — Day 11 Agenda Trademark Dilution  Protection for trademark rights even in the absence of probable confusion  “Dauntingly elusive” theory takes numerous forms  Blurring, tarnishment — other?  Overlapping and possibly conflicting Federal and State laws

Dilution True Property Rights in Trademarks Infringement = likelihood of confusion Dilution = likelihood of association that causes harm  Blurring  Tarnishment  Other?

Dilution How can a mark be “diluted”? Blurring  Definition: the association of a mark with more than one source, even if:  Goods/services are completely unrelated  Junior user has an equally good or better reputation  Example: POLARAID refrigeration and heating systems, BACARDI jewelry

Dilution How can a mark be “diluted”? Tarnishment (or disparagement)  Definition: the association of a mark with something unwholesome, unsavory or degrading, or “low class”  Blurring at its worst  Example: CANDYLAND.com adult web site, DOGIVA pet food, STEIN-WAY clip- on beer can handle

Dilution How can a mark be “diluted”? Other dilution scenarios?  Unfair nominative use — like tarnishment without the association with the junior user .com domain names (may be obsolete)  There are few bounds on the creativity of lawyers and judges when a famous mark is being exploited “unfairly”...

Dilution Dilution Scenarios — Cases Federal “association” cases  NIKEPAL  GULPY  CHEWY VUITON  GREATEST SNOW ON EARTH  Is it clear now??

Dilution Dilution Scenarios — Cases State Dilution Cases  GREATEST USED CAR SHOW ON EARTH  LEXUS Federal Trade Dress Dilution  Hershey package design  Pepperidge Farms goldfish crackers  Vola “Falling water” faucet

Dilution Dilution Scenarios — Cases Referential or nominative use  Ty Inc. v. Perryman  Deere & Co. v. MTD Products (NY)  Hormel Foods v. Jim Henson Prod. (NY)  Caterpillar v. Walt Disney (optional/online)  WHAM-O v. Paramount (optional/online)

Dilution Dilution in the Trademark Office Dilution can be a basis for opposition  Lanham Act §2, after (f):  A mark which would be likely to cause dilution by blurring or dilution by tarnishment under section 43(c) may be refused registration only pursuant to a proceeding brought under section 13.  Not applicable to ex parte examination

Dilution True Property Rights in Trademarks Dilution reconsidered  Does dilution theory go too far?  Rights exceeding actual goodwill?  Proper balance after the TDRA?  Social science and pseudoscience: economic and behavioral analysis  Uniqueness or lack thereof (optional Stadler)

TM & Unfair Comp — Up Next Topics and Reading for Day 12 We resume Tuesday, July 14th Rights of Publicity  Chapter 9, pp Parody  Chapter 12, pp ,  Supplement pp