Archive for trademarks

Jul
20

Take a Broad Approach to Intellectual Property Strategy

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I’ve noticed that many companies tend to emphasize patents in their IP strategy. Sometimes that’s almost all they consider. Sound IP strategy, however, requires applying a variety of tools. A broad approach to intellectual assets is more important than ever. Patents of various kinds, trademarks, trade secrets, copyright protection, and low-cost publications can all play a useful role.

Utility patents can protect your products, their components, the machines for making them, the methods of making them, and methods of using them, among other things. Design patents can protect aesthetic elements. Copyrights can protect commercial expression (ads, for example) of that function. Trademarks protect the brands that are based on the consumer perception of the product. Packaging relevant to your products may also be protected with utility patents, design patents, trademarks, and copyright.

The power of trademarks in protecting a company is illustrated in a recent case involving Adidas, owner of trademark for a tennis shoe with three stripes on the side. In May 2008, an Oregon jury ruled that Payless Shoes should pay $308 million to Adidas for infringing that trademark. (Payless appealed but subsequently abandoned its appeal after agreeing to an out-of-court settlement with Adidas.) Payless may have hoped to evade the three-strip trademark of German-owned Adidas by using four stripes, but Adidas successfully argued that their stripes create a distinctive mark that is a sign of origin, and that both two-stripe and four-stripe shoes may cause confusion in the minds of consumers. Three simple parallel stripes have become a distinctive part of the Adidas brand. This coverage may last as long as the brand does, unlike the limited coverage afforded by patents. Adidas, of course, relies on both utility and design patents as part of its IA strategy.

In recent years, U.S. trademark rights have been expanded to cover not just traditional logos and names, but to also cover colors, scents, characteristic sounds, and three-dimensional shapes. Examples include:

  • Yamaha’s distinct water spout from its WaveRunner® personal water craft. As U.S. Trademark 74321288 states, “The mark is comprised of a three-dimensional spray of water issuing from the rear of a jet propelled watercraft and is generated during the operation of the watercraft.”
  • Tiffany’s famous robin-egg blue gift box (US Trademark 75360201).
  • Intel’s five musical notes (US Trademark 78721830).

Trademarks can have an unlimited life, unlike the 14-year-life design patents have from the date of filing, or the 20-year life of regular utility patents. Under U.S. law, trademarks can be used to sue both manufacturers and distributors of infringing products.

We recommend that innovators look for creative combinations of both trademarks and patents, as well as other forms of intellectual assets.

One of those other forms can be called “digital intellectual assets,” a broad category that includes domain names. They may be trademarked, but if you don’t own the domain name, you’ll have an expensive battle trying to wrest it from someone else. As soon as you consider candidates for trademarks, quickly register the related domain names. Also consider getting the related Gmail accounts, Facebook accounts, Twitter accounts, Youtube channels, Pinterest accounts, etc. Those are free or inexpensive and can be worth a great deal if your brand name becomes important.

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Aug
09

The Bogus IP Registration Scam: Becoming a Global Phenomenon, Beware!

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The good folks at the China Law Blog recently discussed a common scam that occurs in China. Actually, this is a scam that is shaking down small and large companies and lone inventors all over the globe. I’ve warned against it in the US for a long time and was intrigued to see it is going full-bore here in China.

When you file or obtain trademark registrations or patents, scammers are likely to send you an invoice asking for some large sum of money in return for being “registered” in their international database of patents or trademarks. In the Chinese version of the scam, you may received a bound volume of Chinese law with an enormous invoice. Failure to pay, they will tell you in annoying repeat calls, could result in all sorts of problems. Don’t pay. Don’t waste your time with them.

In US and European versions of the scam, the invoices sometimes come from Serbia or Croatia. But they can come from anywhere. If it’s from the government where you registered or filed your IP, throw it away. Unfortunately, enough businesses and gullible inventors just routinely pay invoices without asking tough questions that the scam is successful, thus causing it to spread. Don’t be fooled. When your innovation results in being ripped off, you’re on your way to innovation fatigue. Steer clear.

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