By Scott Hervey 

Have you ever been into a used record store (remember those) and picked up a used CD that had the following language either on the CD case or on the CD itself:

FOR PROMOTIONAL USE ONLY

This CD is the property of the record company and is licensed to the intended recipient for personal use only. Acceptance of this CD shall constitute an agreement to comply with the terms of the license. Resale or transfer of possession is not allowed and may be punishable under federal and state laws.

Have you ever wondered how on earth can the record label control the sale of these CDs. (An obvious question given the fact that the CD in question is for sale in a used record store.) According to a recent federal court case, they cant.Continue Reading Not Just For Promotional Use

by James Kachmar

The Ninth Circuit recently addressed the issue of whether a “first publication” exclusion in an insurance policy applies to trademark infringement claims. In United National Insurance Company v. Spectrum Worldwide, Inc., et al., decided February 2, 2009, the Ninth Circuit resolved a split among lower courts and held that a “first publication” exclusion did apply under California law.

 

In December 1997, Sunset Health Products, Inc. (“Sunset”) hired Spectrum to advertise and distribute a diet drink called “Hollywood 48 Hour Miracle Diet” drink. Celebrity Products Direct, Inc. (“Celebrity”) was formed a short time later and began selling a similar product, “The Original Hollywood Celebrity Diet” drink. Spectrum then terminated its contract with Sunset and begin marketing the Celebrity diet drink.   Sunset made repeated demands that Spectrum cease infringing on its Miracle Diet trademark. 

Continue Reading “First Publication” Infringement Claims and Insurance Policy Exclusions

By Scott Hervey

The holiday season means something different for each of us. For some it’s a time for eggnog, parties and mistletoe. For others, it’s a time for cease and desist letters, seizure actions and lawsuits. Yes Virginia, there is a Santa Clause, and his lawyers stand ready to sue those who use his marks and other intellectual property without permission.

 

 Continue Reading Christmas – A Time For Fruitcake and Infringement Actions

By Jeffrey Pietsch

 

Trademark infringement occurs when a third party uses a mark in a way that infringes upon a trademark owner’s exclusive right and use of a trademark. Often, the third party will use a similar mark in a way that confuses consumers as to the source of the goods and services. For example, a fast food restaurant named “Wendi’s” would likely cause confusion with “Wendy’s.” Trademark infringement can occur only when it is likely that consumers will be confused as to the source of the goods. The purpose of this article is to examine the test and factors that courts use to determine if such infringement exists.Continue Reading Trademark Infringement: Factors Considered in Consumer Confusion