Trademarks and Avoiding Consumer Confusion: Crash Course Intellectual Property #5 Video Lecture | Understanding IPR, Copyrights, Trademarks and all - Professional Skills

Hi! I'm Stan Muller, this is Crash Course Intellectual
Property, and today we're talking about trademarks.
Trademarks are everywhere, and they can often be confusing, so today we're gonna talk about
why just about everything seems to be trademarked,
and why trademarks are good for business.
Mr. Muler! Trademarks don't intersect with my life,
so I really don't see why we need to cover this.
One, its Muller, and two, just watch the video.
[Theme Music]
A trademark is any word, name, symbol, or
device, used to identify and distinguish goods
from those manufactured or sold by others,
and to indicate the source of the goods, even
if that source is unknown. This bit about
unknown sources means that you, as a consumer
don't usually know the person or factory that
actually made the goods you buy.
Before the industrial revolution, you often
knew exactly who was making your stuff, and
how it was made. If you wanted a hammer, you
went to the blacksmith, and you knew his name.
It was probably Smith.
These days, brand names assure you that you're
buying the same product, say toilet paper,
that you bought last time you went shopping.
You know, like the stuff with the ripples.
Seriously though, getting the wrong medication
because of brand name confusion or counterfeiting
could be disastrous. The rational for granting
legal protection for trademarks is that they're
a type of property -- it demonstrates to the
purchasing public a standard of quality and
embodies the good will and advertising investment
of its owner.
In other words, companies expend a tremendous
amount of resources to develop the product,
market it to customers, and provide customer
support, and back up their product with warranties.
At its core, trademark law functions like a consumer
protection measure. It prevents consumer confusion,
and makes it easier for consumers to select and
purchase the goods and services they want.
For example, if you go shopping for a new
television, you don't have to sift through
dozens of products that are confusingly similar to Samsung. Knockoffs like Samsong or Wamsung or Sony.
You want the Samsung, maybe based on past experience, or the company's reputation, or even a funny ad.
Because the law protects the manufacturer's
use of the trademark, you can be reasonably
sure that the TV you're picking up at Best
Buy is the TV you saw the Verge reporters
freaking out about at CES. Though trademarks
are often classified as intellectual property,
the Supreme Court held, in the 1879 trademark
cases, that Congress has no power to protect
or regulate trademarks under the intellectual
property clause of the Constitution. Which,
as you'll recall, provides congress with the
authority to regulate and protect copyrights
and patents. But this didn't stop congress
from regulating trademarks - they used the
commerce clause of the constitution which
gives them the power to regulate commerce
with foreign nations, and among the several
states, and with the Indian tribes.
Beyond trademarks, there are also service
marks, which are very similar in that they
distinguish one particular service. An example
of a service mark is that roaring lion at
the beginning of MGM movies - it's registered
for motion picture production or something.
Trade dress or product packaging is protected
if it's distinctive and nonfunctional. Like,
the shape of a nutter-butter cookie is protected
trade dress. What they oughta trademark is
the smell. Some people have registered smells,
but we'll get to that in a minute.
Trademarks are symbols, and since human beings
might use as a symbol or device almost anything
that is capable of carrying meaning, just
about anything conceivable thing can function
as a trademark. Trademarks can be words like
Kraft or Lego, logos, designs like the Nike
swoosh, aromas, like there's a brand of oil
for race cars that smells like cherries, sounds
like:
*to the tune of the NBC ad* bong bong bong
or *to the tune of the T Mobile ad* ba da
da da dong
or *to the tune of the Intel ad* dong dong
dong dong
or *to the tune of the McDonald's ad* ba da
ba ba baaaa.
Even *in the manner of Homer Simpson* "Doh!"
is a registered trademark.
You can register colors like UPS brown or
Home Depot orange or Tiffany blue or John
Deere green, personal names like Taylor Swift
- T Swizzy's name is registered for 61 different
goods and services, from shoes to Christmas
tree ornaments. Even containers like the Coca-cola
bottle or this perfume bottle shaped like
a human skull can be registered. In short
they can be almost anything that distinguishes
the product from others and which signifies
the source of the goods.
Despite the breadth of potential trademark
subject matter, there are some limits on what
can be a valid trademark. Recently, a restaurant
in Texas asserted trademark rights in the
flavor of it's pizza. One of the restaurants
former employees allegedly stole the recipe
and opened up a competing pizza joint, selling
pizzas that tasted a lot like those made by
his former employers. The judge rejected the
claim and dismissed the case, finding that
it is unlikely that flavors can ever be inherently
distinctive because they do not automatically
suggest a product's source. Also, functional
product features are not protectable under
trademark law. Pizza has only one function
- and that's to taste delicious.
So, there are three requirements for trademarks.
We just discussed the first one - that a trademark
has to be a symbol or a device that a court
or the patent and trademark office deems to
qualify. The second requirement is that the
mark has to be used in interstate commerce,
and the third is that it has to identify the
mark owners goods and distinguish them from
those manufactured or sold by others. It has
to be distinctive.
Let's talk about trademarks and what makes
them distinctive in the Thought Bubble.
Courts rank trademark distinctiveness along
a spectrum, ranging from unprotectable to
highly protectable. At the bottom end of the
spectrum is generic. Generic names refer to
stuff like using the word orange for the fruit
or dog for the canine or cheese for... cheese.
Descriptive terms simply describe the goods
and convey an immediate idea of what the product
is, such as "break and bake" for scored cookie
dough.
Suggestive marks require some imagination
or perception to link them to the goods, like
Sheikh for middle eastern food or Froot Loops
for circular fruit flavored breakfast cereal.
Arbitrary marks are commonly used words used
in unexpected ways - Apple for computers,
or Amazon for book sales, or Shell for gasoline.
The most distinctive marks are usually made
up words. Fanciful marks are non dictionary
words such as Google for an internet search
engine, or Clorox for bleach, or Kodak for
film.
Fanciful, arbitrary, and suggestive marks
receive automatic protection upon use because
they are considered to be inherently distinctive.
So the owner of the break 'n bake mark has
to show that the consumers identify the product
with Nabisco or Pillsbury or whoever makes
the product. I honestly don't know who makes
it, which isn't a good sign as to whether
it's acquired secondary meaning.
Generic terms are never entitled to protection.
This becomes important when trademarks are
gradually assimilated into the language as
common names. Through a process sometimes
called "genericide," the public comes to view
such names as referring to the products themselves
rather than as distinguishing the source of
the products. As a result, the name loses
its protection. Words like escalator, cellophane,
and aspirin were all once protected by trademark.
This process is ongoing today and there are
a lot of modern marks that are threatened
by genericide, like Google or Kleenex or Photoshop
or Xerox. Thanks, Thought Bubble.
So, once an owner meets the requirements for
trademark and has a protected product they'll
often put a TM or a little r in a circle next
to a product name or brand. The TM shows that
the owner is asserting trademark in the product.
When you see the little circle r, that means
the trademark has been registered with the
US patent and trademark office. Like in copyright
law, one you're registered with the feds,
you have standing to take your case to federal
court and maybe be awarded damages. Once the
PTO is satisfied that the mark meets all the
requirements the application is published
for opposition. Anyone who might be affected
by the registration has 30 days to oppose
it. If no one opposes, the mark is registered!
The owner is then required to file affidavits
of continuous use -- basically you have to
submit proof you are still selling the product
associated with the trademark. You have to
do this every five years to maintain the registration.
Trademark owners can do this forever. This
is different than patents and copyrights,
whose trademarks are DOOMED by the limited
times language in the intellectual property
clause.
So when it comes to trademarks, you have to
use it or lose it.
Trademarks are often disputed, and in pretty
much every case, likelihood of confusion is
the central issue. The principles set forth in an 1877
Supreme Court opinion in an unfair competition case:
"What degree of resemblance is necessary to
constitute an infringement is incapable of
exact definition, as applicable to all cases.
All that courts of justice can do, that regard,
is to say that no trader can adopt a trade-mark,
so resembling that of another trader, as that
ordinary purchasers, buying with ordinary caution,
are likely to be misled."
Every court uses a slightly different set
of criteria for deciding trademark cases.
We're going to talk about the 7th Circuit Court of the
United States' definition, which has seven parts.
Those criteria are: One, similarity between
the marks in appearance and suggestion.
Two, similarity of the products.
Three, the area and manner of concurrent use,
which means where in the United States the product is for sale.
Four, the degree of care likely to be exercised
by the consumers.
Five, the strength of the plaintiff's mark
or how distinctive it is.
Six, whether there is evidence that people
were actually confused, which is a pretty
strong sign that there's a likelihood of confusion.
And seven, whether the defendant intended
to palm off his product as that of the plaintiff.
These factors are going to be weighed differently
in individual cases, but the court has often
noted that the similarity of the marks, the
defendant's intent, and evidence of actual
confusion are of particular importance. In
addition, the Seventh Circuit has held that
a court may consider other relevant factors
such as the party's marketing channels and
whether a trademark is being used in a parody.
Trademark protection is also available under
certain circumstances, even in the absence of likely or
actual confusion. The Federal Trademark Dilution Act
benefits only famous trademarks trademarks against
a weakening of their valuable distinctive quality.
There are two basic types of dilution: dilution
by blurring, and dilution by tarnishment.
Dilution by blurring happens when a similar
trademark chips away at the distinctiveness
of a famous trademark. For example, someone
selling Apple brand toilet seats or bulldozers
will blur the ability of Apple to identify
a single source, even if people buying that
stuff didn't think Apple computer made their
bulldozer. Dilution by tarnishment happens
when similarity between a mark or trade name
and a famous mark harms the reputation of
the famous mark. For example, and this is
a real case, the guy that uses the trade name
Victor's Little Secret for his store selling
sex related products is likely to tarnish
the famous Victoria's Secret mark. There's
no real risk of confusion here, but the company
Victoria's Secret is seeking to prevent the
gradual tarnishing of their mark. One major
issue with dilution is that famous trademarks
are hard to come by. While there are super
marks, like IBM, Google, Budweiser, Microsoft,
courts have typically been hesitant to find
less well known trademarks to be famous. It's
not like YouTube or something, where you can
be kind of famous, your trademark has to be
really, actually, IRL famous to attain this status.
Trademarks are fascinating, regardless of
whether you are someone who enjoys strolling
through the shopping mall with logos firmly
affixed to your bags and coffee and clothes,
or whether you believe brands and trademarks
have become so powerful that they have been
internalized by modern society and dictate
our aspirations, our self image and our lifestyles.
As we've watched Don Draper and James Bond
conspicuously guzzle Heinekens, maybe we worry
that brands are controlling and corrupting our creative
content. Regardless, trademarks are ubiquitous.
Trademarks help us make sound decisions about
the products we need and want. They protect
us from knock off goods and allow us to go
about the daily business of our lives more
quickly and more efficiently so that we can
sit down tune our Samsung television to PBS
on our Comcast cable tuner, watch the season
finale of Downton Abbey, brought to you by
Viking River Cruise Lines and Ralph Lauren.
Thanks for watching, and as they say in Hank
and John's hometown, don't forget to be awesome.
Which is not a registered trademark. Which
is how this happened:
Tell either Eleanor or Alice not to forget
to be awesome.
Oh! Thank you, sir!
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