Monday, February 19, 2018

Legal Geek No. 126: Hotter Than Hot Sauce

Welcome back to Legal Geek. This week, with permission from Garrett and Kyle, we cover the trademark Cease and Desist received by the WeekSauce podcast this week from the holders of the Tabasco brands, and how that process works. 
We've covered fun versions of Cease and Desist letters or demand communications in recent segments, but our Frogpants friends from AMoveTV received a serious type of letter in this form from McIlhenny Company, owners of the trademark portfolio for Tabasco.  Kyle graciously allowed me to take a deeper look at the details, and it should help clarify for content creators what to do when this happens.

McIlhenny has actively protected the Tabasco brands for nearly 100 years, and so the letter to AMoveTV strikes the typical firm but understanding tone of modern C&D letters.

The brand manager for McIlhenny starts by listing some of the unauthorized uses on iTunes and the internet of the WeekSauce podcast logos which they deem to be problematic, and then provides a summary of the various trademark registrations held by the company.  Several of these are also attached for review, and the letter goes on to explain that U.S. trademark law forces them to actively police and defend their marks to maintain the valuable rights against claims of dilution.  The letter concludes with the demand for AMoveTV to stop use of the marks deemed objectionable.  This is standard fare in this field, but it is well written and clear in this case.

Turning to the merits of McIlhenny's argument, most of the Tabasco trademark registrations cover the name itself Tabasco, the diamond shaped bottle label, and the diamond logo with the wording.  Those are easily distinguished because AMoveTV is not using the name Tabasco and/or because many of these logo trademarks cover only the famous pepper sauce rather than other goods and services.

But one particular registration stood out on my review, and that is one from 1996 which covers just the square and circular lines forming the diamond logo, absent any wording.  This was registered in many classes of goods and services, including apparel like T-shirts, food products, cocktail mixes, and restaurant services.  This is a very broad way to cover the core of the company's famous logo, and it's a genius way to reach potential infringements that may not copy the words or other parts of all the other trademarks.  And it's this very same registration that causes trouble for folks like Kyle and Garrett, even though podcasts are not explicitly within the scope of what is covered by McIlhenny's trademark.  The problem is that use in another context can blur over time if AMoveTV brought out T-shirts or other merchandise using the WeekSauce logo, and the mark must also be policed against dilution which can occur if Tabasco did not enforce their rights in these types of close call situations.

Sometimes acts that are truly an infringement can still be done if they fall under the protections of Fair Use, including things like parody.  That exception could be applicable here, but trademark litigation to try and prove that as a defense is costly and usually not worth the expense to smaller parties.  Fair Use is a serious gray area that's honestly never that predictable in court.  It's simply safer and easier to avoid infringement altogether, or take a license.  In this case, Kyle and Garrett are changing the show logo, and sometimes that's just what you have to do.  It doesn't feel great, but the big companies are forced into this by the U.S. rules on things like dilution, and the rest of us just have to deal with the consequences of the system.

The Bottom Line is, McIlhenny should be commended for finding such innovative ways to secure broad coverage of elements of their logo, but it leads to this downside.  When in the position Kyle and Garrett found themselves in, it is best to be calm, breathe a minute, and then take a close look at the claims of the company enforcing their brand or other IP before deciding what action to take.  The claims don't always have merit, after all, and that can open an opportunity for dialogue with the other side.  If you can't figure it out yourself, please never hesitate to have an attorney help guide you to the best solution to the problem, even if it's not what you originally want to do.

But for now, we can all rejoice that WeekSauce and our friends are hotter than hot sauce.  Boom.

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Thanks for reading. Please provide feedback and legal-themed questions as segment suggestions to me on Twitter @BuckeyeFitzy

Thursday, February 8, 2018

Legal Geek No. 125: Famous Sporting Events and Trademarks

Welcome back to Legal Geek. This week, we celebrate last week's great Super Bowl and the opening of another Olympic Games with a look at how trademarks are closely intertwined with these events and athletes.

Trademarks may not be the first thing that comes to mind when you think of world famous sporting events and spectacles like the Super Bowl and the Olympics.  However, the use and enforcement of trademarks has become a vital part of these events and how companies around the world can participate in the celebration.

For example, both the National Football League and the International Olympic Committee hold significant trademarks covering the names and logos associated with these sporting events.  Both organizations aggressively defend such intellectual property as well, as anything with a multi-colored linked ring design or marketing surrounding Super Bowl Sunday would quickly be shut down if not allowed by a license agreement from these rights holders.  By keeping such a tight lock on these names and logos, these organizations are able to maintain highly profitable revenue streams from licensing the rights to companies like McDonald's and others who want to advertise and be a significant part of these big events.

One interesting thing to look out for in the next two weeks is the new faces who become viral, or nicknames and slogans that grab the world's attention and become water cooler talk.  These athletes or teams can leverage that rise to fame for a longer period of time if they register for trademark protection and then defend and use those rights after the Olympics.  This is similar to what happens in some NFL athlete lives, such as the "Beast Mode" moniker that will far outlive our memories of running back Marshawn Lynch, who coined the popular phrase.

For any of these athletes who are still in college, navigating the acquisition of trademark rights and the NCAA compliance rulebook can be highly difficult.  However, there's no rule stopping athletes in college from locking down these trademarks and then fully leveraging them after NCAA eligibility is over.

While it's true that many of these "15 minutes of fame" elements of the Olympics will fade from public consciousness quickly, just like the Right Shark moment from a couple Super Bowl halftime shows ago, they do lead to trademark implications and interesting cases we look forward to covering here.

In another quick sports trademark story, the Cleveland Indians organization decided to stop using their Chief Wahoo logo on the field starting in 2019.  While trademarks can still be maintained on allegedly disparaging marks following the In re Tam decision on The Slants band, the Cleveland baseball team has chosen to relent from public pressure while other similar teams like the Washington Redskins football team does not.  However, to keep the valuable trademark rights from lapsing, Cleveland will continue to sell merchandise with Chief Wahoo, so the symbol is not going away anytime soon thanks to trademark rules and practices.

The Bottom Line is, trademarks and big sporting events fit together like a hand and a glove.  While pursuing athletic conquest and glory, many athletes and others happen upon fame that can give them financial success for life, thanks to trademarks and branding protections.

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Thanks for reading. Please provide feedback and legal-themed questions as segment suggestions to me on Twitter @BuckeyeFitzy

Friday, February 2, 2018

Legal Geek No. 124: The Town Crier Approach to C&D Demands

Welcome back to Legal Geek. This week, we review what has become a trend in sending demand or cease and desist letters, a softer edge that is just as much marketing as it is legal.

A couple months back, the main show and this segment covered a story about Netflix attorneys sending a cease and desist letter to a pop up Stranger Things themed bar with a lot of humor and in jokes from the show mixed in, instead of the usual threats and legalese.  This resulted in positive press for Netflix and their attorneys, as evidenced by our own coverage of the event, while also resulting in the other party complying with the demand from Netflix.  This softer approach is becoming more prevalent, as evidenced by a Town Crier sent by Budweiser to another brewing company last month:

INSERT TOWN CRIER FROM: https://www.youtube.com/watch?time_continue=2&v=hCvPtSxxVkU

Turns out, even Dilly Dilly can be made into something funny and enjoyable in this context.  As with the Stranger Things letter, this Town Crier demand went viral online and in news coverage, with positive press happening for Budweiser rather than the negative feedback the public often gives when brands are pushy about enforcing their rights.  Plus, the Minnesota brewing company agreed to comply with the demand and stop selling the Dilly Dilly Mosaic Double IPA after the initial run was sold.

Other examples recently of this trend include TGI Fridays sending a box of buttons and other flair to a Chicago bar with a letter asking that the bar's plans to hold an event mimicking the Friday's restaurant be limited to a one-time thing.  That certainly makes it easier for the bar's employees to look like Friday's servers for the event, and it struck a good balance between enforcing a trademark, which is required to keep those rights, and being reasonable about fan service or parody in this case. 

In another case, Dole responded to an Instagram meme from a New York branding agency using their company logo for a Halloween joke about receiving bags of fruit instead of candy, but not with a takedown notice.  Instead, Dole added to the meme by making some more small bags of fruit and asked that the other company refrain from future unauthorized use of the trademarks so that they didn't have to come take all their candy away.

This trend for demand letters is certainly a response to the negative feedback other companies have gotten on social media and in the news for facing down fans with formal legal threats.  This is a smart way to jam some positive marketing into legal responsibilities.  Considering that nobody really wants to add more costly litigation to their dockets, the softer approach has proven to be effective enough to protect most brands while avoiding legal escalation and bad press.  In other words, a win-win.

The Bottom Line is, the old adage of "you catch more flies with honey than with vinegar" appears to be working in this context.  In my own practice, I often recommend a softer edge from content creators and brand owners at the beginning, as it can't hurt to try being somewhat nice before escalating to full conflict.  You just might end up with more friends and business partners that way, too.  In a society divided by politics and a lot of other stresses, it should come as no surprise that this approach is more effective.  I look forward to covering more fun legal demand letters as the trend continues.

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Do you have a question? Send it in!

Thanks for reading. Please provide feedback and legal-themed questions as segment suggestions to me on Twitter @BuckeyeFitzy