Saturday, December 15, 2012

Trademark THIS

As a trademark attorney, you hear a lot of interesting stories.  Some are more interesting than others.   But one thing I constantly hear from people is the word "trademark" used as a verb.  Some examples might be:
"I want to trademark my business name" or "Yes, but my competitor hasn't trademarked it."
When people say this, they invariably are using the word "trademark" as a shorthand way of saying "register the mark."  That's OK.  The problem is that many people are under the misconception that unless the mark has been registered, no rights have been established.  I want to clear up that little misconception right now.
You can own trademark rights in a word, phrase or image -- or even a sound or smell -- that you use to market your goods or services.  If you stamp your skateboards with the made-up word PHRUNG, then you are establishing trademark rights to PHRUNG by selling the skateboards that are so marked.  If you file an application with the USPTO to register PHRUNG for skateboards, you can fortify the rights you have already established by obtaining federal trademark registration. 
Suppose you had been selling your PHRUNG skateboards for a couple of years, mostly though an on-line store, but you had never filed an application to register PHRUNG with the USPTO.  Now suppose your arch-nemesis, who has never sold a skateboard, decided he wanted to own the PHRUNG name for skateboards, and after searching the records of the USPTO he discovers that you have not registered the mark.  Can your arch-nemesis now apply to register PHRUNG for skateboards and pre-empt you from selling PHRUNG skateboards?  NO!
As long as you know about your arch-nemesis' trademark application, you can oppose it on grounds of likelihood of confusion and priority based on your use of the PHRUNG mark on skateboards prior to the date he filed his trademark application.  Assuming you can prove that, it should be enough for his trademark application to be refused. 
Even if your arch-nemesis was able to get PHRUNG registered because you were not paying attention to trademark application filings at the USPTO, his ownership of a federal trademark registration would still be subject to whatever rights you had already established to the PHRUNG mark prior to the time he filed his trademark application.  If, prior to the filing date of your arch-nemesis' trademark application, you were selling PHRUNG skateboards nationwide, except say in Arizona, then your arch-nemesis, despite his ownership of a federal registration, would not have grounds to force you to stop using the PHRUNG mark for skateboards anywhere other than Arizona. 
Are we clear on this now?  You get your trademark rights from use.  You enhance your trademark rights by registration.
What about intent-to-use applications, you say?  We will have to save that discussion for another day.