Author: Erin Gormley

  • Did Booking.Com Fumble Their Trademark Rights In New Super Bowl Ad?

    Did Booking.Com Fumble Their Trademark Rights In New Super Bowl Ad?

    By: CAITLIN CANAHAI

    Booking.com’s new self-deprecating ad could mean trouble for their trademark rights.  In the travel site’s Super Bowl spot, Idris Elba pokes fun at the company’s name, saying, “We named ourselves Booking.com, which is kind of lit, if we’re talking…literal.”  The statement comes on the heels of the brand’s nearly 9-year long legal battle to obtain trademark protection for its name. 

    Trademarks are words and symbols that consumers use to distinguish the goods or services of one business from another.  For instance, “Apple” is a strong trademark for computers.  Importantly, trademark protection is denied to generic terms for goods and services.  “Apple” could never be protected as a trademark for apples because it communicates the type of product, rather than the source.  This principle protects competition in the marketplace, so that companies can accurately describe their goods and services. 

    As Idris said, “BOOKING.COM” seems like a pretty literal name for a website that allows you to book travel accommodations.  In trademark terms, you might say “Booking.com” is generic. This was exactly what the U.S. Patent and Trademark Office (USPTO) decided when Booking.com applied to register its name as a trademark for making hotel reservations in 2012.  The USPTO denied the registration on the grounds that “booking” was generic for Booking.com’s services. Adding “.com” to a generic term could create a protectible trademark, because “.com” merely indicates web address and adds no source identifying significance.

    Booking.com appealed the USPTO’s decision all the way to the Supreme Court. In 2020, the Court ruled in their favor in United States Patent and Trademark Office v. Booking.com B.V.  The Court rejected the USPTO’s rule that the addition of a top-level domain (.com, .org, .net, etc.) to an otherwise unregistrable term could not create a protectible trademark.  Instead, the Court ruled, the mark must be considered in its entirety to determine whether consumers perceive it as a trademark.  The decision allowed Booking.com to introduce evidence demonstrating that it had taught consumers to perceive “BOOKING.COM” as a trademark through many years of use and advertising. 

    Following the decision, Booking.com obtained three trademark registrations for its “BOOKING.COM” mark.  The registrations issued in January of 2021, over 8 years from the date of the initial applications.  Given how much time and money Booking.com invested in proving its mark is not generic, its decision to mock its own name on the biggest advertising day of the year is surprising, to say the least.  Trademarks lawyers will tell you that it’s never a good idea to point out how weak your mark is in advertising. 

    Realistically, Booking.com’s probably doesn’t have anything to worry about.  To obtain its registrations, Booking.com already had to prove that consumers primarily understood “BOOKING.COM” to be a brand name.   The company introduced survey evidence suggesting that about 74% of participating consumers recognized “BOOKING.COM” as a brand name.  So, a tongue-in-cheek joke in a commercial is unlikely to do serious damage to their name recognition. 

    Still, Booking.com’s new ad campaign highlights the importance of having an experienced trademark attorney advise you on how you use your mark in advertising.  Using a trademark in certain ways in advertising can weaken or even eliminate your trademark rights, even after you obtain a trademark registration. 

    Kloss Stenger & Gormley LLP is a firm with experienced attorneys ready and able to help you with any trademark questions or concerns. Contact us today to get started.

  • Failure to Function as a Trademark?

    Failure to Function as a Trademark?

    Each case brought before the Trademark Trial and Appeal Board (“TTAB”) raises a unique issue of trademark law, and provides new insight into how trademark questions are decided.  Recently, the refusal to register the mark MAMA BEAR, applied for in connection with various clothing products, was appealed to the TTAB. The resulting analysis focused on whether or not the phrase MAMA BEAR functions as a trademark. In short, is it eligible for the protection of registration? Or is it a message which “merely conveys ordinary, familiar concepts or sentiments that are used by a variety of sources in the marketplace?”

    The Trademark Examining Attorney had denied the original application for registration on the grounds that the mark was not a trademark, as it failed to, “…indicate the source of Applicant’s goods and to identify and distinguish them from the goods of others.”

    In order to be entitled to the protection of registration, a trademark must identify the applicant as the source of particular goods or services. Here, the TTAB had to conduct a failure-to-function analysis. This analysis looked at whether or not the mark did identify the applicant as the source of the goods in the mind of the consumers, or if the mark was simply a common, widely-used phrase that didn’t identify any particular source. A failure-to-function analysis examines all of the evidence on the record. Often times, this will include the Applicant’s use, dictionary definitions, and third-party uses of the term, to determine how potential consumers are likely to view the product.

    The TTAB found, once all evidence had been reviewed and an analysis conducted, that MAMA BEAR was a “…common, widely used and generally understood term to convey a message of an ordinary or familiar concept or sentiment – aggressive protective parenting.” The phrase is one that consumers would expect to see on clothing items, but not necessarily to identify any particular brand. Thus, the TTAB determined that the mark did not serve as a designation of applicant as the source of the clothing. Therefore, the mark was not entitled to registration.

    Ultimately, in this case, the TTAB denied the applicant’s appeal to register the mark MAMA BEAR.

    So does this mean that the phrase MAMA BEAR can never serve as a trademark or be entitled to the protection of a USPTO registration? Not necessarily. Throughout these proceedings, the applicant brought up several examples where the phrase MAMA BEAR is present within registered marks. However, each of those marks either contains additional words, phrases, or images making it distinctive, or is arbitrary when applied to the respective goods and services set forth in those registrations. These may seem like small or unimportant distinctions, but they can be crucial when determining issues of trademark law.

    Kloss Stenger & Gormley LLP is a firm with experienced attorneys ready and able to help you with any trademark questions or concerns. Contact us today to get started.

  • Starting a Start-Up

    Starting a Start-Up

    By: Ranja Bose, KSG Contributor

    Before starting your own business venture, what are the potential issues that you may need to consider? Our law firm works with entrepreneurial clients every day to get them started, and to allow them to maintain and flourish their business in today’s fast-paced world. Whether your business will be for profit, non-profit, service-oriented, or something entirely unique, there are a few things that you will need to consider.

    a.         Your product should solve a problem, partially or wholly.

    A new business should offer something unique to the marketplace, ideally a product or a service which offers a solution to an existing problem, or which makes life easier for its users. Firstly, make sure that the problem being “solved” needs solving. For example, many users were disappointed with Apple’s removal of the headphone jack, lamenting that the presence of the headphone jack was not an issue that needed solving in the first place. A way to do this would be to reverse engineer the issue at hand; identify a problem, and then think of a unique product or service that would solve that issue.

    After doing the basic market research for existing products, you need to evaluate your target audience. Who are they, what is their purchasing power like, are they distributed uniformly geographically? Surveys, questionnaires, and networking come in handy during this step. The results found with these can be used to create fictional user personas to test the product or service on. This step requires a lot of manpower and research and will let you know if the product or service is needed. Some startups hire external agencies to do this, then develop their good in accordance with the findings.

    b.         Protect your IP.

    Your market research should make sure that your product is not infringing on anyone else’s intellectual property. Remember, two different products may solve the same problem, but may not do so in the exact same way. Conversely, your product must also be protected from infringement. This can be done through contacting an attorney to assist you with the process of obtaining registration of your patent, copyright, or trademark, or possibly more than one of these. What type(s) of protection your product requires will depend on the product itself and the circumstances surrounding the creation and marketing of the product. A prudent step after obtaining IP protection may be to speak with your attorney regarding transferring the ownership of the IP to your company or business entity, if you have one. This may help to shield the individual creator from certain liabilities, and to shift certain legal obligations to the entity. You may also obtain business license and tax permits at this time.

    c.         Solidify your brand and secure it.

    Solidifying your brand may include assigning an identity to your product. People need to relate to what a company offers. The brand will differ from company to company, and depends on the industry. Solidifying your brand may also include creating and securing incidental IP like websites, any supplementary products, marketing methods, as well as having a pitch ready. These pitches, or descriptors, should be short. This ensures that you do not lose your investor’s attention, while demonstrating that you are providing the best possible product for that particular problem. You should conduct extensive research on and be well-versed in the issue, enough so that you can call yourself a subject matter expert. This will encourage others to value your opinions and ideas and thus help reinforce your brand.

    d.         Define your company.

    You have your product and you know what it does. Now might be the time to formalize the company, i.e., the entity that will have ownership of the product. Choosing the name would be the natural first step. You will then have to register your company as a particular type of organization. This can be done by contacting an attorney to help you register the company as a corporation, limited liability company (LLC), non-profit, sole proprietorship, or limited or general partnership. The way in which you register your company will affect its structuring and tax liability. You also need to choose which state you want your company incorporated, organized, or domiciled in. This step should include consultation with tax and financial professionals, and once the company is formed, will also include obtaining a federal EIN (Employment Identification Number) from the IRS.

    e.         Pick a team.

    Now that you have protected your product and company, it is time to pick a team. This team may consist of many people, or only one other person, but you should make sure they each have a separate skill set from you. Investors are more confident in a company that has diversity of thought and know that the team members will keep each other in check.

    f.          Raise capital.

    This “step” is usually not just a step, but an ongoing process which should be done simultaneously with the steps above, after your IP has been secured. Often times, startups do not have the money to hire people without some seed capital. Thus, you need to know a basic pitch of your product as soon as you have secured your IP. Most of the networking required to raise capital is often done while you are solidifying your brand and creating your company. By the time you reach this step of raising capital for your product, you should preferably have moved your product through your local investment circles.

    g.         Make a business plan.

    For your product to be successful, you need to market it to the right people. Business plans may differ by company and industry. This also helps keep track of the finances, turnovers, and making plans for subsequent growth.

    h.         Pick a workplace.

    Once you have accumulated enough capital that your company can afford a place, get a sufficient workplace, and be sure to set policies and procedures for your expenses, hiring practices, future possible employees, etc.

    The process of starting a new business may seem complex at times, but it can be incredibly rewarding, both personally and professionally. Contact Kloss Stenger & Gormley LLP today at 716-853-1111 for more information, and for help navigating these important legal issues.