Outline for TW05 Managing Brand Reputation in the Court of Public Opinion
Moderator: Eric T. Fingerhut, Dykema Gossett PLLC
Time: Wednesday, May 18, 2011 – 8:00 am – 10:00 am
Introduction – How brand owners enforce their trademark rights has been greatly influenced by the increased personal and commercial use of social media. Thanks to technology, finding infringement, dilution and other misuse of trademarks is easier than ever. However, the new media, technology and consumer-generated content creates challenges unknown as little as five years ago. Gone are the days when a brand owner could simply send out a demand letter and expect the recipient to fold its tent. Today’s demand letter recipients often take issue with trademark owner enforcement tactics and take their grievances directly to the public taking advantage of the viral nature of social media, YouTube videos, blog postings and web sites as well as by engaging in protests and boycotts. Even Congress has gotten into the Act, with Senator Patrick Leahy of Vermont coining the term “Trademark Bully” and requiring the U.S. Patent and Trademark Office to conduct on study on whether such bullying is a real problem or not that should be addressed legislatively. So……is trademark bullying a problem or are we simply dealing with an overreaction of a few and a lay public who does not understand the obligations, rights and remedies of U.S. trademark law? Even assuming some trademark owners do overstep in their enforcement efforts, is legislation necessary or do existing laws, powers of the courts and statutory provisions of the Lanham Act provide sufficient tools for litigants to battle the problem. Or is the problem really the result of trademark law having been expanded from a consumer protection law to a property right, more in line with the rights offered to patent and copyright holders? We’ll discuss all of these topics and more and hopefully come away with some best practices for Managing Brands in the Court of Public Opinion.
I. The Importance of Public Opinion
A. Brands are about reputation
B. Fan Sites
II. How the Landscape has Changed
A. Brick and Mortar to Internet
B. Internet to Social Media
C. Public has More Powerful Outlets to Express Views
1. Domino’s Pizza Video
2. United Breaks Guitars Video
3. Kevin Smith – Southwest
4. Burgerville Apologizes to Cyclist Denied Service at Drive-thru Window
III. Trademark Bullying
A. What is it?
B. Is it Real?
C. Examples
1. Well-Publicized Cease and Desist Letters
2. Reverse Domain Name Hijacking
3. Cases Involving Trademark Misuse by Plaintiffs
D. The Secretary of Commerce Study and the USPTO Request for Comments
1. http://www.uspto.gov/trademarks/bullies_survey.jsp
2. AIPLA (American Intellectual Property Lawyers Association) comments
3. ABA-IPL (American Bar Association Intellectual Property Law Section) comments
4. INTA (International Trademark Association) comments
5. IPO (Intellectual Property Owners’ Association) comments
IV. Legitimate Enforcement and How to Go About It
A. How Trademark Rights Differ and Are Similar to Patent and Copyright
B. The Duty to Enforce and the Risk of Naked Licensing Constructive Abandonment
C. Specific Issues
1. Genericide – The Ultimate form of Dilution
2. Free Speech
3. Adult Entertainment
4. Parody
5. Fan Sites
6. Secondary Market (Ebay) Enforcement
D. Proper Due Diligence
1. No “banzai” Letters – Check Priority
2. No Boneheaded Claims – Subway sends demand letter over “Footlong”
3. Watch Tone
a. Genericide policing – don’t be a jerk
b. Consider sophistication of recipient
c. Do not send demand letters to minors
E. Demand letters should be consistent with brand (nice companies should send nice letters)
F. Need to balance trademark rights with sense of humor – Parody
1. North Face/South Face
2. Nike v. Just Did It (“MIKE & Design”)
G. Engage the Public:
1. Twitter
2. Facebook
3. You Tube
4. Don’t Forget Traditional Radio and Television Broadcast Medium
H. Above All – BE HONEST; BE ACCOUNTABLE
H. Demand Letters to Minors
I. Secondary Market Enforcement
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V. The Future
A. Trademark Bullying deemed Pejorative and Not Used In IP Organization Comments
B. Existing Ways to Battle Bullying:
1. Rule 11
2. Fees and Costs Can Be Awarded in Exceptional Cases
C. Is there a Need for Legislation to Combat the “Problem”?
1. Awarding Fees to Prevailing Party in All Cases
2. Other