At The Beach – A Primer On The Selection And Clearance Of Trademarks

At The Beach – A Primer On The Selection And Clearance Of Trademarks




INTRODUCTION:

Surfboards, swim fins, wetsuits, t-shirts, swimsuits, sunglasses, sunscreen, bottled water, sandals, umbrellas, towels, volleyballs, ice chests…….. sounds like another summer day at the beach! To the savvy, business entrepreneur, however, these beach accessories/necessities are the breeding ground for commercial exploitation. Not far behind in this consumer petri dish of sand and capitalism is the need to select a trademark by which the item exploited will be known, e.g., HOBIE® surfboards, O’NEILL® wetsuits, OAKLEY® sunglasses, BAYWATCH® wristwatches, MIKASA® volleyballs, and COPPERTONE® sunscreen and tanning lotions. This article will highlight some famous trademarks in the sun, sand & surf and will briefly address the legal and business issues with respect to the selection, clearance and registration of such trademarks.

TRADEMARKS DEFINED

A trademark (or mark) is defined as any information, symbol, slogan, or device (such as a design), or a combination of them, used by a manufacturer or merchant to clarify his goods or sets and to discriminate them from those manufactured, sold or serviced by others. COPPERTONE® and SPEEDO® are excellent examples of ‘information’ marks. “TAN DON’T BURN” is an example of a ‘slogan’ mark. A logo or design such as the famous COPPERTONE girl and the dog is an example of a ‘design’ mark. An example of a service mark is ESPN® for the “entertainment sets, reporting and sports programming sets rendered by the medium of television.” Such a service mark as ESPN® can also be exploited and serve as a trademark (i.e., for clothes (shirts, hats, sweaters, vests); prerecorded videotapes; beach bags, beach towels, etc.). In the U.S., trademark rights are acquired by use (e.g., by selling or transporting your product in commerce with the mark attached or on a label). In addition, under certain circumstances “color” can be a trademark. Examples outside the surf/beach industry are the color “pink” for fiberglass insulation and “green” for dry cleaning pads.

SELECTION AND CLEARANCE

The selection of a trademark is the first step that a merchant undertakes to create an identity for his/her surfboard or swimsuit, etc. The clearance of a trademark is the time of action of calculating whether or not the trademark is obtainable and is not being used by someone else as a trademark. This clearance course of action cannot be overemphasized in its importance. Ignoring this vital step can rule to a multitude of problems and expense. In the clearance of a trademark, a two-step course of action is suggested. The first step is to conduct an on-line computer trademark search of the mark. This on-line search is further clarified by identifying the goods sought to be used or sold as trademarks are categorized by classification. In the United States, the federal government has adopted the International Classification system. Toys, sporting goods, volleyballs swim fins, bodyboards, and surfboards are in Class #28. Swimsuits and beach apparel and clothing are in Class #25. Backpacks, beach bags and gear bags are in Class #18. Posters, magazines, books, trading cards, and other printed matter and publications are in Class #16. Videotapes, audiotapes, video game software (including downloadable software over a global computer network), surfing and skateboard helmets are in Class #9. consequently, if you are planning to sell surfboards, apparel and gear bags, then you will want to conduct an on-line search of Classes # 28, 25 and 18. The on-line search is often called a “knock-out” search. This is because the on-line search is a quick and comparatively inexpensive way to determine if the mark is already being used. These on-line searches are often obtainable at public libraries, commercial search firms and law firms.

If your mark appears free of conflicts after conducting an on-line search, the next level of search is the complete search, which is obtained from commercial search firms like THOMSON COMPUMARK and CORSEARCH. The complete search will search the federal database of trademarks at the Patent and Trademark Office, State trademark registrations, shared law supplies such as phone directories and Dun & Bradstreet listings, plus internet domain name registrations. If your mark nevertheless appears clear of conflicts after a complete search, then you can be fairly certain that you can adopt and start using your mark. CAVEAT: These searches are not guarantees of the absence of conflicting marks, but they do allow a merchant to make a more informed decision in the clearance of a trademark.

FEDERAL TRADEMARK REGISTRATION

To acquire maximum protection, it is best to register your trademark or service mark. In the U.S., your greatest rights can be obtained with a federal trademark registration. If you are only conducting business within one state, e.g., California, it is possible to register your mark with the California Secretary of State. However, if it is your intent to do business across state lines or in foreign commerce (or if you are already doing business across state lines or in foreign commerce), then the prudent thing to do is to file for a federal trademark application with the U.S. Patent and Trademark Office located in Alexandria, Virginia.

An application for registration of a trademark must be filed in the name of the owner of the mark. The applicant must submit: (a) a written application; (b) a drawing of the mark; (c) the required filing fee (which is $325 per mark per class at this time). The applicant will also incur attorneys fees, typically a fixed fee, should an attorney be hired to file the application(s). Trademarks registered with the Federal Government, as stated before, are categorized by a classification system which correspond to the kind of goods sought to be registered. for example, MOREY® and MOREY BOOGIE® for bodyboards, CHURCHHILL® swim fins and MIKASA® volleyballs all are in Class #28. The ESPN® service mark is in Class #41; QUIKSILVER®, HANG TEN® and OCEAN PACIFIC® for clothing are in Class #25; BILLABONG® and BODY GLOVE® wetsuits are also in Class #25; REEF BRAZIL®, NIKE® and ADIDAS® for sandals and footwear are also in Class #25; SPEEDO® and TYR® backpacks and gear bags are in Class #18; SURFER® magazine, VOLLEYBALL® magazine and SURF BUSINESS(TM) are in Class #16 for publications.

After the mark is registered in the U.S., it is important to give notice of this fact by placing the registered trademark symbol, “®”, nearby to the mark. Prior to registration, it is also advisable to use the signs, “TM” (for trademarks) and “SM” (for service marks).

The chief advantages of a federal registration include:

“Constructive Notice” nationwide of the registrant’s claim to ownership of the mark. This basically eliminates the good faith defense of an infringer who claims to have lacked actual knowledge of the registered mark.

Registration is also evidence of (a) the validity of the registration; (b) the registrant’s ownership of the mark; and (c) the registrant’s exclusive right to use the mark in commerce in connection with the goods or sets.

Registration also entitles the registrant to (a) file a lawsuit for infringement of the mark in Federal Court; (b) prevent importation of goods bearing an infringing mark; and (c) use the registration as a basis for registering the same mark in certain foreign countries.

Trademark registrations are valid for 10 years unprotected to certain use and filing requirements, and are replaceable every 10 years, also unprotected to continued use and renewal filing requirements.

FOREIGN TRADEMARK REGISTRATION

If your product is distributed internationally, then you must, by and large, register your mark(s) in each country where you plan to do business or are doing business. Is this expensive? Yes! however, the different is the possible loss of the ability to sell your product in those countries where a third party has filed a prior application for your mark(s). consequently, foreign trademark protection is typically obtained on a country-by-country basis. Unlike the U.S., however, trademark rights in many foreign countries are obtained by registration instead of use. This further necessitates the importance of filing for marks in foreign countries as soon as possible.

One notable different to the typical practice of registering trademarks on a country-by-country basis is the new (European) Community Trade Mark Application which has been obtainable since January 1, 1996 for the filing of applications. By obtaining a Community wide trademark registration, an owner of a U.S. registered trademark, for example, can potentially save both time and money otherwise invested in registering a mark in each separate European country and can consequently hopefully reach maximum protection for its trademarks in overseas markets at a minimum of cost.

CONCLUSION

Whether you are selling products or sets, it is very important to be aware of your trademark and/or service mark and their value. In a competitive business ecosystem, the possible for economic loss is tremendous if trademark rights are not acquired, evaluated, protected and maximized. While this article does not portend to cover all the intricacies of trademark law, hopefully it has helped to discarded some light on this area of the law which is of paramount importance to the business owner.

© Copyright 2008, William E. Maguire. All Rights Reserved.




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