Trademark

May 05, 2008

Americans can't defeat Wal-Qaeda, but Brits will duel with Google: Trademarks stateside and across the pond

Googlelogo_3 Google's feeling tough enough to fight its wars on two fronts when it comes to trademark law.  As I mentioned below, our May issue includes a story about the Rescuecom v. Google lawsuit at the 2nd Circuit, where Google is looking for a big win; today, Slashdot points to this TV news story about how Google intends to allow U.K. advertisers to buy ads on trademarked keywords, as they already do in the U.S. Of course, some mark-holders already are threatening to sue, as several have in the U.S. (they've all either lost, or lost badly.) No word in this story on when Google will implement this new policy, or such changes are in the works anywhere else.

Currently, if a British searcher types in "Ford cars," she'll see an organic link to Ford and possibly a paid ad for Ford, but won't see an ad for, say, Honda, while an American making the same search may see such competitors advertising. (Yahoo doesn't sell trademarked keywords in the U.S., but they'd like to—they weighed in with an amicus brief supporting Google in the Rescuecom case, together with eBay.)

Last month, I talked to Keker & Van Nest lawyer Michael Page, who is representing Google against Rescuecom in New York, and we talked about the differences between American & European trademark laws.

"European trademark laws are very different beasts," says Page. "They really think of it as owning the words, and you can’t use them. American laws are about protecting consumers." Some of the European trademark decisions have been "very harsh," he notes. "Germany and France are very both anti-speech; it's a sort of thought control. eBay has lost a series of decisions... They can’t allow anyone to list for sale World War II or Nazi memorabilia anywhere. It’s a fairly hostile environment for commerce and speech."

Clintonwm So, for example, it might be tougher for Georgia computer store owner Charles Smith to sell T-shirts and beer steins with slogans like Wal-Qaeda and Wal-ocaust outside a Wal-Mart in, say, Paris. (Is there such a thing?) But Smith resides in Georgia, where he is free to thumb his nose at the world's largest retailer and create bizarre and disturbing images like the ones pictured here. After Wal-Mart told him to cease and desist, Stanford Professor Larry Lessig hooked Smith up with lawyers from Public Citizen and the ACLU, who helped Smith win a complete victory in March after a two-year battle against the mega-store. In an 82-page smackdown, a federal judge basically told Wal-Mart that 1) Smith is a parodist, 2) it's a free country, and 3) deal.

Maowm Wal-Mart apparently paid $200,000 just to conduct a survey to measure alleged "consumer confusion," and probably paid millions to their Quinn Emanuel lawyers. And for what? Here's the best part: Smith sold all of 62 T-shirts, including 15 to one of Wal-Mart's outside law firms! Not exactly a weapon of mass dilution. (which law firm bought the shirts?? Inquiring minds want to know! Please email pics of any lawyers seen wearing Wal-Qaeda T-shirts.) Wal-Mart lost more than just money in this litigation: the judge ruled that the store has no common-law trademark claim to its yellow smiley face; that's not good timing, since the company's trademark on that symbol is being challenged at the Trademark Trial and Appeal Board.

Walocaust_eagle_2Speaking personally, I think the term "Walocaust" is a heavy-handed and unfortunate metaphor that's likely to offend folks with connections to the real Holocaust. Using a Holocaust reference to discuss anything that's not actual genocide just isn't helpful to anyone, including would-be parodists and critics.

But Wal-Mart's attempt to label Smith as a lawbreaker for "diluting" and tarnishing their trademark is a good example of how trademark laws, like copyrights and patents, today reach far beyond their historical roots. Unlike copyrights and patents, which are monopolies granted as incentives to creators, trademarks are granted so that consumers clearly understand the true source of a good or service they're buying. We're all better off with only Wal-Mart being allowed to slap up a sign on its stores that says "Wal-Mart," because we know who we're buying from; but the thinking is, we're also better off knowing that if push comes to shove, we can always start selling Wal-Qaeda T-shirts.

Highlights from the May issue

50under45cover_3 The May issue of IP Law & Business is out. The cover story profiles 50 top IP people  under 45, and is available online. (free registration required)

More highlights from the May issue (subscribers only):

  • Patent bar to E.D. Tex: enough is enough. AIPLA has filed a brief urging the U.S. Court of Appeals for the 5th Circuit to force East Texas judges to transfer more cases out of the district. It's an effort to head off more heavy-handed venue reform that could come from Congress, but there are already early signs that the local judiciary is thinking of ways to keep the patent docket heavy even if they lose this case, which involves a product liability lawsuit against Volkswagen.
  • Keyword-advertising showdown in Manhattan: Google brings in the big guns, hoping for a solid win at the 2nd Circuit to make it clear that selling trademarked keywords is perfectly legal, pro-consumer—and not so different than traditional advertising practices.

December 17, 2007

An eBay Holiday: Four Lawsuits a-Leaping

Coinbay_biz_logo_2Lots of folks are busily buying Christmas presents on eBay these days, but what ends up in company stocking, legally speaking, remains to be seen. The 2007 holiday season is shaping up to be a great one for eBay the plaintiff, and a not-so-great one for eBay the defendant.

One month after eBay’s trademark victory at the 9th U.S. Circuit Court of Appeals against Orange County-based rival Perfume Bay, the online marketplace filed another trademark lawsuit on Dec. 5, this time against CoinBay.biz, an auction and sales site run by a Florida coin collector Bob Martino.

eBay Inc. v. Martino, 07-cv-06172-CRB, N. D. California.

I wanted to ask eBay if there was any relationship between the 9th Circuit win and this new lawsuit. My call to their spokesman went unreturned last week; which is understandable, since the company has some much bigger fish to fry (more below).

The Perfume Bay case that went to the 9th circuit is Perfumebay.com Inc v. Ebay Inc., 04-01358-WDK, C. D. California.

Martino didn’t want to get into specifics about the lawsuit or his negotiations with eBay, which are ongoing. He did say that the coin Web site doesn’t generate much income for him, and that coin collecting is his hobby, not his career.

"The coin dealers aren’t really able to make money with eBay," said Martino. "I wanted a site that offered no listing fees. I don’t care if I don’t make a dime. My grandfather got me into coin collecting 30
years ago."

It may not be a living, but Martino did want eBay to buy the CoinBay.biz site from him, according to the company's complaint. (available here, courtesy Eric Goldman)

He suggested that he could be bought out at a price far lower than eBay's legal team, led by Cooley Godward Kronish partner John Crittenden. eBay thought that was so funny they suggested he could pay their attorney's fees after flying out to meet them in a San Francisco courtroom.

Martino says he's complying with all the company's demands now.

Coinbay_biz_logo2 He was busy re-vamping his Web site when we talked last Thursday. CoinBay has become CoinDay, and the CoinBay.biz domain now re-directs to CoinDay.com. (I doubt eBay will be permanently satisfied with that re-direct)

Martino also removed his  "Buy Now" buttons, which eBay said infringed its "Buy it Now" trademark.

Compare:  Buynow2 vs. Buyitnow

eBay has waged a long campaign to keep the Internet clear of commerce sites that end in “Bay,” and such sites often get emailed warnings shortly after they go online. But Martino’s site has been operating under CoinBay.biz since June 2006, and he says he was only contacted by eBay a couple months ago.

In the CoinBay complaint, Crittenden has the usual list of amusing "Generic + Bay" sites, including AlternaBay, EggBay, MexBay, and NaziBay. He has represented eBay in several other domain-name trademark cases, including the Perfumebay.com case.

My piece in the Daily Journal about the 9th circuit decision in that case, "Another 'Bay' Goes Down to eBay's Trademark Punch," is reprinted here.

Perfumebay.com Inc v. Ebay Inc.
, 04-01358-WDK, C. D. California.

Perfume Bay was ordered to stop using the Perfumebay.com domain name; the company has since asked the 9th circuit for a re-hearing, and has appealed to let it keep the domain name while it appeals. Perfume Bay president Jacquelyn Tran maintains a blog about the lawsuit at www.MakesNoScents.com.

So that’s eBay’s good news; the bad and possibly-really-bad news comes from the East Coast.

Ebay_4 The battle royale is a big trademark battle in a Manhattan federal court that should see a decision any day now. Luxury goods maker Tiffany & Co. sued eBay in 2004, saying the online retailer hadn’t done enough to root out counterfeit goods on its site. EBay says it does plenty and that Tiffany should take a bit of responsibility. WSJ Law Blog coverage of that is here.

Tiffany (NJ) Inc. v. eBay Inc., 04-cv-04607-RJS, S. D. New York.

The Tiffany trial is over, but the rhetoric seems to be hitting a post-trial peak. Tiffany filed a brief last week saying eBay was a “rat’s nest” of fakes; eBay says a bad decision could “wreak havoc” on its business and hurt Internet commerce generally. That decision could come any day now.

In Virginia, eBay was ordered to finally pay up the $25 million plus interest it was ordered to pay in 20003 to MercExchange, a tiny company that claims it has patents covering eBay's "Buy It Now" online sales. That case ultimately went to the Supreme Court, and set a new, tougher test for when patent plaintiffs can get an injunction to kick a losing defendant out of a market.

Mercexchange, L.L.C. v. eBay, Inc., et al. 01-cv-00736, E. D. Virginia.

eBay really doesn’t want to pay this one. The patent tide has turned, and it looks like they want complete victory here. The company wants MercExchange’s patents to be re-examined under the harsh new light of a 2007 Supreme Court decision, KSR v. Teleflex, which said court have to apply a stricter test for what patents should be tossed out for being too obvious.

I’ll have more to say about MercExchange v. eBay in the coming weeks.

In the meantime, if the Tiffany case doesn’t go its way, Bob Martino’s new logo for CoinDay.com might be the best thing that happens to eBay this holiday season. Happy Hanukah.