December 2024 | Page 2 of 4

Month: December 2024

Battle of the Bay: It’s Oakland Airport, Not San Francisco Bay Oakland International Airport

by Cecilia Choy, PhD | Dec 5, 2024 | Trademarks

The US District Court for the Northern District of California granted the city and county of San Francisco a preliminary injunction enjoining the Port of Oakland from using the name or trademark “San Francisco Bay Oakland Airport” based on the strength of San Francisco’s mark and the proximity of goods and services. City and County of San Francisco v. City of Oakland, Case No. 3:24-cv-02311-TSH (N.D. Cal. Nov. 12, 2024) (Hixson, J.)

The city and county of San Francisco own a registered trademark for the SAN FRANCISCO INTERNATIONAL AIRPORT covering airport services. The Port of Oakland owns the OAKLAND INTERNATIONAL AIRPORT mark, also covering airport services. Based on a research study, the Port of Oakland contended that there was a lack of awareness among tourists visiting the San Francisco Bay Area, commonly known as the Bay Area, that Oakland is located in the Bay Area. The Port of Oakland notified San Francisco of its intent to rename its airport the San Francisco Bay Oakland International Airport. San Francisco objected to the name change as confusingly similar to its trademark. San Francisco sued Oakland and the Port of Oakland for trademark infringement, unfair competition/false designation of origin, and common law trademark infringement. San Francisco also filed a motion for a preliminary injunction (PI) to prevent the Port of Oakland from using the name.

Ruling on the PI motion, the district court started with whether the Port’s use of “San Francisco Bay Oakland International Airport” was likely to cause confusion. Courts in the Ninth Circuit evaluate likelihood of confusion using the nonexhaustive Sleekcraft factors (9th Cir. 1979), which include the following:

Strength of the mark.
Proximity of the goods.
Similarity of the marks.
Evidence of actual confusion.
Marketing channels used.
Type of goods and the degree of care likely to be exercised by the purchaser.
Defendant’s intent in selecting the mark.
Likelihood of expansion of the product lines.

San Francisco offered several theories supporting likelihood of confusion. San Francisco argued that the new name implied an affiliation, connection, or association between the Oakland airport (OAK) and the San Francisco airport (SFO). San Francisco also argued that the new name would cause customers to confuse OAK with SFO and cause customers to buy tickets to the wrong airport, which constituted point-of-sale and initial interest confusion.

Addressing the strength of the mark, the district court determined that although San Francisco’s trademark was descriptive, it was commercially strong. The SAN FRANCISCO INTERNATIONAL AIRPORT is widely known among travelers and appears on signs in and around the airport. San Francisco has used its trademark for decades and invests millions of dollars annually to promote the SAN FRANCISCO INTERNATIONAL AIRPORT trademark. The court found that San Francisco’s brand was routinely ranked among the top 25 airport brands.

In terms of the proximity of the goods, the district court found that the services were identical, as both names were used in connection with an airport and related services.

Turning to the similarity of the marks, the [...]

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Ghostly Misstep: No Confusion Means No Preliminary Injunction

by Sarah Mezini | Dec 5, 2024 | Trademarks

In a trademark case involving an incontestable registration, the US Court of Appeals for the First Circuit affirmed a district court ruling denying the registrant a preliminary injunction (PI) for failure to establish likelihood of confusion. US Ghost Adventures, LLC v. Miss Lizzie’s Coffee LLC, Case No. 23-2000 (1st Cir. Nov. 15, 2024) (Selya, Barron, Gelpí, JJ.)

In 1892, prosecutors alleged that Lizzie Borden hacked her parents to death in their family home. Borden was acquitted of all charges, leaving the murder unsolved. This mystery made Borden’s ancestral home a travel destination for all intrigued by the legend.

US Ghost Adventures owns a bed and breakfast located at the Lizzie Borden House in Fall River, Massachusetts. Ghost Adventures also owns an incontestable federal trademark on the LIZZIE BORDEN name as used in its services and on its hatchet logo displaying a notched blade.

Miss Lizzie’s Coffee opened a coffee shop next door to the Lizzie Borden House, displaying storefront signage with the words “Miss Lizzie’s Coffee” between a cup of coffee and a stylized hatchet spewing blood. The store also displayed a second sign claiming Miss Lizzie’s as “The Most Haunted Coffee Shop in the World,” with a similar hatchet containing a handle and dramatic blood splatters. Since the opening of Miss Lizzie’s, there has been confusion regarding its affiliation with the Lizzie Borden House.

Ghost Adventures brought a trademark infringement and unfair competition suit against Miss Lizzie’s Coffee in federal district court. Ghost Adventures also moved for a temporary restraining order and/or PI seeking to enjoin Miss Lizzie’s use of either the LIZZIE BORDEN trademark or the hatchet logo in the coffee shop’s trade names, trade dress, and marketing materials.

The district court applied the customary four-part test for PIs. The test typically emphasizes likelihood of success on the merits because if the movant cannot show a likelihood of success, the rest of the factors “become matters of idle curiosity.” The district court determined that Ghost Adventures failed to show a likelihood of success on the merits and denied the PI. Ghost Adventures appealed.

The First Circuit reviewed the district court’s finding for clear error and affirmed. The First Circuit agreed with the district court’s assertion that Miss Lizzie’s displays were neither “the trademarked hatchet nor a colorable imitation” of Ghost Adventures’ hatchet display. Further, the Court found that the Miss Lizzie’s mark was not associated with Ghost Adventures’ mark, but rather with the historical story of Lizzie Borden. The Court agreed that both businesses sold different goods to different customers. Similarly, the Court concluded that any consumer confusion was not due to the similarity of their marks but was due to non-trademarked similarities between the businesses: their proximity to one another, the use of Lizzie Borden lore, and customers’ perception of nearby cafés in association with the historical site itself. Ghost Adventures’ mark could not prevent other businesses from using the Lizzie Borden story or from conducting business near the Lizzie Borden House. Moreover, the First Circuit agreed [...]

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Time’s Up: Fifth Circuit Reinstates Original Judgment in Trademark Dispute

by Keval Amin | Dec 5, 2024 | Trademarks

The US Court of Appeals for the Fifth Circuit vacated a district court’s amended final judgment and reinstated its prior final judgment, finding that the district court overstepped its narrow mandate on remand, directly contradicting the Fifth Circuit’s earlier decision. In that earlier decision, the Fifth Circuit upheld the district court’s finding of trademark infringement but modified the scope of the injunction, approving it only in part. Rolex Watch USA, Incorporated v. BeckerTime, L.L.C., Case No. 24-10415 (5th Cir. Nov. 20, 2024) (Douglas, King, Willett, JJ.)

BeckerTime modified and sold Rolex-branded watches by adding diamonds, aftermarket bezels, and bands not authorized by Rolex. Rolex sued BeckerTime for trademark infringement, seeking an injunction and disgorgement of profits. While the district court found that BeckerTime infringed Rolex’s trademark, it declined to order disgorgement because of BeckerTime’s laches defense. In the first appeal, the Fifth Circuit upheld the infringement finding, noting that BeckerTime’s modifications of diamonds and aftermarket bezels went beyond mere repairs and restoration. However, the Fifth Circuit partially modified the district court’s injunction and issued a limited remand to clarify certain language in the injunction. On remand, Rolex and BeckerTime agreed on revised language for that portion of the injunction, which the district court approved. The district court, however, went further by amending other sections of the injunction. This appeal followed.

Both parties agreed that the district court had exceeded its mandate. The amendments permitted BeckerTime to advertise and sell Rolex watches with customized dials under certain conditions, requiring disclosures and inscriptions reading “CUSTOMIZED BY BECKERTIME.” Rolex contended – and the Fifth Circuit agreed – that this language conflicted with the prohibition (in the injunction) of all non-genuine dials, including those bearing original Rolex trademarks.

The Fifth Circuit vacated the district court’s amended judgment and reinstated its prior judgment with modifications, incorporating its earlier decision and the parties’ stipulation.

New Year, New Fees: PTO Issues 2025 Fee Schedule

by Amol Parikh | Dec 5, 2024 | Patents

The US Patent & Trademark Office (PTO) issued its final rule setting and adjusting patent fees that will take effect on January 19, 2025. 89 Fed. Reg. 91898 (Nov. 20, 2024).

The final rule sets or adjusts 433 patent fees for undiscounted, small, and micro entities, including the introduction of 52 new fees. The fee adjustments are grouped into three categories:

Across-the-board adjustment to patent fees.
Adjustment to front-end fees.
Targeted fees.

Fees not covered by the targeted adjustments will increase by approximately 7.5%. Front-end fees to obtain a patent (i.e., filing, search, examination, and issue fees) are set to increase by an additional 2.5% on top of the 7.5% across-the-board adjustment. Targeted adjustments include increasing fees related to continuing applications, design patent applications, filing excess claims, extensions of time for provisional applications, information disclosure statement sizes, patent term adjustments, patent term extensions, requests for continued examinations, suspension of actions, terminal disclaimers, unintentional delay petitions, and Requests for Director Review of a Patent Trial & Appeal Board decision.

More information, including the new fee schedule, is available on the PTO’s website.

Trademark Fee Increases: The TEAS Party Is Over

by Abigail A. Rubinstein | Dec 5, 2024 | Trademarks

After a lengthy public comment and review process, the US Patent & Trademark Office (PTO) announced trademark fee increases effective January 18, 2025. The goal of PTO fee setting is to provide sufficient financial resources to facilitate the effective administration of the US intellectual property system. The PTO aspires to recover aggregate costs to:

Finance the PTO’s mission, strategic goals, and priorities.
Enable financial sustainability.
Promote efficient operations and filing behaviors.
Align fees with the costs of services provided.
Encourage access to the trademark system for all stakeholders.

The fees for filing a new trademark application via either the Trademark Electronic Application System (TEAS) or TEAS Plus will remain unchanged: $350 per class for a TEAS standard application and $250 per class for a TEAS Plus application for as long as TEAS remains available (and then using the Beta site discussed below). However, the PTO will institute surcharges for applications that are incomplete or contain custom identifications of goods or services. These application surcharges are intended to encourage more complete applications, which will improve examination efficiency and help reduce pendency.

Description Surcharge Insufficient information (Sections 1 and 44), per class $100 Using the free-form text box instead of the Trademark ID Manual within the Trademark Center to identify goods and services (Sections 1 and 44), per class $200 Each additional group of 1,000 characters in the free-form text box beyond the first 1,000 (Sections 1 and 44), per affected class $200

Since the World Intellectual Property Organization (WIPO) is currently unable to collect surcharges, the PTO will raise the fee for WIPO Madrid Trademark Applications to $600 per class.

The PTO will also raise the fees for post-registration filings to offset higher processing costs for these filings and continue balancing the cost of base applications.

Filing Current Fee Fee as of January 18, 2025 Section 9 registration renewal application, per class $300 $325 Section 8 declaration, per class $225 $325 Section 15 declaration, per class $200 $250 Section 71 declaration, per class $225 $325

The PTO has not increased the filing fees in connection with intent to use filings since 2002, although the time to examine such filings has increased exponentially because of the need to examine questionable specimens. Those fees are now set to increase as follows:

Description Current Fee Fee as of January 18, 2025 Amendment to allege use (AAU), per class $100 $150 Statement of use (SOU), per class $100 $150

The fees for requesting an extension of time are unchanged.

Finally, the number of petitions and protests have increased. The PTO will attempt to recover more of the cost of processing petitions and protests as follows:

Description Current Fee Fee as of January 18, 2025 Petition to the Director $250 $400 Petition to revive an application $150 $250 Letter of protest $50 $150

For further details, including a complete list of the fee increases, click here.

The PTO also announced that as of January 18, 2025, filers [...]

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Chill Out: Request for Profit Disgorgement Isn’t Entitled to Jury Trial

by Dexter Hamilton | Dec 5, 2024 | Trademarks

The US Court of Appeals for the Eighth Circuit affirmed a district court ruling that a plaintiff was not entitled to a jury trial regarding its trade dress infringement claim and that the plaintiff failed to prove that its trade dress had acquired the required secondary meaning. National Presto Industries Inc. v. U.S. Merchants Financial Group Inc., Case No. 23-1493 (8th Cir. Nov. 12, 2024) (Loken, Erickson, Grasz, JJ.)

National Presto manufactures household appliances, including personal electric heaters sold under the brand name “HeatDish” since 1989. These heaters had “a parabolic design that looked like a satellite dish.” National Presto supplied HeatDish heaters to Costco for many years. However, amid slumping sales, Costco began exploring alternative options. In 2017, Costco requested a “parabolic electric heater that was UL approved, had high heat, and looked industrial and robust” from another supplier, U.S. Merchants Financial Group. U.S. Merchants began development of a heater named “The Heat Machine.” Costco requested modifications to the initial design, including “changes focused on a comparison with Presto’s HeatDish.” Costco began selling The Heat Machine in 2018.

In December 2018, National Presto filed suit against U.S. Merchants asserting trade dress infringement under the Lanham Act. National Presto requested both injunctive relief and that U.S. Merchants “be required, pursuant to 15 U.S.C. § 1117, to account to National Presto for any and all profits derived by them, either individually or jointly to be ordered to disgorge, and be ordered to pay all damages sustained by National Presto by reason of Defendant’s actions complained herein.”

National Presto sought a jury trial for its trade dress claim, but the district court ruled that National Presto was seeking equitable relief and thus was not entitled to a jury trial. The district court noted that under the Lanham Act, courts generally “find that a claim for disgorgement of an infringer’s profits is an equitable claim” and therefore the Seventh Amendment does not provide the right to a jury trial for such a claim. After a bench trial, the district court ruled that National Presto failed to prove infringement because its trade dress had not acquired secondary meaning. National Presto appealed.

The Eighth Circuit affirmed. Regarding the denial of a jury trial, which the Court reviewed de novo, National Presto argued that “disgorgement is considered a legal claim when the infringer’s profits serve as a ‘proxy’ for the plaintiff’s damages.” Although the district court did not reject that legal theory, it found that the facts National Presto presented were not sufficient to support a finding that the profits were in fact serving as a proxy. The Court rejected several of National Presto’s arguments, including that “Presto’s desired remedy was legal rather than equitable because its aim was compensation rather than disgorgement of unjust enrichment.”

Regarding the district court’s secondary meaning finding, which the Eighth Circuit reviewed for clear error, the Court noted that “the chief inquiry is whether in the consumer’s mind the mark has become associated with a particular source.” In rejecting National [...]

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A Lesson in Judicial Principles: No Dismissal After Decision

by Connor M. Larson | Dec 5, 2024 | Patents

The US Court of Appeals for the Federal Circuit denied a patent owner’s motion to voluntarily dismiss the appeal following the Federal Circuit’s decision to vacate and remand the case to the Patent Trial & Appeal Board but before the mandate issued. Cisco Sys., Inc. v. K.Mizra LLC, Case No. 22-2290 (Fed. Cir. Nov. 19, 2024) (Dyk, Reyna, Stoll, JJ.)

Computer networking companies Cisco, Forescout, and Hewlett Packard filed a petition for inter partes review (IPR) to challenge the patentability of several claims of a patent owned by K.Mizra. The Board found that the petitioners failed to show that the challenged claims were unpatentable. Cisco and Hewlett Packard appealed.

After full briefing and oral argument, the Federal Circuit issued an opinion vacating the Board’s decision and remanding with further instructions. Before the Court’s mandate issued, the parties reached a settlement and moved to voluntarily dismiss the appeal without submitting a request to vacate the Federal Circuit opinion. The motions were unopposed.

The Federal Circuit stayed the issuance of the mandate while it considered the motions and invited the US Patent & Trademark Office (PTO) to comment. The PTO requested that the Federal Circuit deny the motions because it had already entered its opinion and judgment and denied rehearing. The Court agreed, declining to depart from its principle that granting a motion to dismiss the appeal at such a late stage (days before the issuance of the mandate) would result in a modification or vacatur of its judgment that was neither required nor a proper use of the judicial system.

The Federal Circuit also emphasized that appeals from the Board require additional consideration in terms of the PTO Director’s unconditional right to intervene. The Court concluded with a reminder that the parties were free to seek dismissal from the Board on remand.

Senate Judiciary Subcommittee Advances Two Patent Reform Bills

by Christopher M. Bruno | Dec 5, 2024 | Patents

This post has been updated since its original publication date.

On November 15, 2024, the US Senate Judiciary Subcommittee on Intellectual Property advanced the Inventor Diversity for Economic Advancement (IDEA) Act, one of three significant bills it considered this year to reform the patent system. On November 21, 2024, that same subcommittee advanced the Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act. No action has been taken by the subcommittee yet regarding the Patent Eligibility Restoration Act (PERA). It is unlikely any of these bills will become law before the new Congress begins on January 3, 2025.

The IDEA Act, sponsored by Senator Mazie Hirono (D-HI) and garnering bipartisan support, would require the US Patent & Trademark Office to seek demographic data from patent inventors residing in the United States on a voluntary basis. The bill also includes safeguards to protect the confidentiality of the collected information and ensure it is not used as part of the examination process, with a report to be submitted to Congress biannually.

By the time of the November 21 action, the subcommittee sent the PREVAIL Act, sponsored by Senators Christopher Coons (D-DE) and Thom Tillis (R-NC), to the full US Senate. In the words of Coons, the PREVAIL Act is intended to make proceedings before the Patent Trial & Appeal Board “cheaper, swifter, more efficient alternatives to federal district court.” The PREVAIL Act would enact substantial changes to post-grant and inter partes review proceedings at the Board, including by introducing a standing requirement, aligning standards more closely with district court standards, and strengthening estoppel provisions to prevent re-litigation of validity issues.

The substance of PERA and the PREVAIL Act have been reported on previously here and here, respectively. PERA would revise the standards related to patent eligibility under 35 U.S.C. § 101, which have been broadly criticized as providing insufficient predictability and certainty. PERA would overturn Supreme Court precedent by establishing specific categories of exceptions to broad patent eligibility for inventions or discoveries.

At the November 15 hearing, Coons and Tillis explained that they continue to receive feedback on PERA, which has been unsuccessfully introduced in previous years. Coons and Tillis both telegraphed optimism that PERA was moving toward being voted out of the subcommittee. After the November 21 hearing, both sponsors indicated that they hoped PERA would be voted on soon.

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