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Broaden Functionality Doctrine? From Shapes to Product Characteristics. Irene Calboli School of Law, Singapore Management University Texas A&M University School f Law. Trademark Law Institute Conference, 4-5 November 2016.
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Broaden Functionality Doctrine? From Shapes to Product Characteristics Irene Calboli School of Law, Singapore Management University Texas A&M University School f Law Trademark Law Institute Conference, 4-5 November 2016
Question: Would broadening the functionality doctrine be a desirable development? Answer: Yes, because we need to find a solution for the (relentless and problematic to me) expansion of trademark protection Possible challenges in interpretation: taken to the extreme, the doctrine would deny trademark protection to the use of many marks, as they could be seen as product features adding substantial value
Kraft Foods registered a moving image (UK 228003) for chocolate and chocolate confectionery. CTM 1400092: Lamborghini moving image for car doors opening and turning upward.
USPTO TM 1.928.424: computer generated sequence showing the central element from several angles as though a camera is moving around the structure. The drawing represents four “stills” from the sequence.
USPTO TM 1.975.999; moving image of a flash of light from which rays of light are emitted against a background of sky and clouds. The scene then pans downward to a torch being held by a lady on a pedestal. The word “COLUMBIA” appears across the top running through the torch and then a circular rainbow appears in the sky encircling the lady.
sewing thread and embroidery yarn with a fragrance a floral fragrance/smell reminiscent of roses as applied to tyres
Examples of Marks at the IPOS • Color marks in SG: • Mark No.: T9900634E • Owner: BP • Description: The colour green as shown on the application form applied to containers for liquid petroleum gas
Sign/Mark Because of very few exclusions on protectable subject matter, as long as an item is “capable of distinguish” it is likely to qualify for trademark protection Distinctive
Sign/Mark Distinctive of “what” ? Of source? By and in itself distinctive because of product features? Distinctive
Is this expansion of trademark protection a problem? Is protecting these signs compatible with protecting trademark functions? Anticompetitive effects, and possibly undesired monopolies on aesthetic product features
Case T 409/10 Bottega Veneta International Sarl v. OHIM • OHIM refused BottegaVeneta’s applications on June 16, 2010. • The General Court affirmed the OHIM’s decision on March 22, 2013.
Case T 409/10 Bottega Veneta International Sarl v. OHIM • OHIM refused BottegaVeneta’s applications on June 16, 2010. • The General Court affirmed the OHIM’s decision on March 22, 2013.
Case T-359/12 and Case T-360/12, Louis Vuitton Malletier v. OHIM • The EU General Court invalidated LV’s Damier checkered patterns (black and grey, and brown and beige) were invalidated. • The registrations were challenged by German retailer Nanu-Nana. • The General Court held that the registrations were basic and banal, and lacked distinctive character.
Societe Des Produits Nestle SA and Another v. International Foodstuffs Co. and Others (100/2014), (2014 ZASCA 187); (2015 1 All SA 492 (SCA) (27 November 2014)
Societe Des Produits Nestle SA and another v. Petra Foods Ltd. and another (2014 SGHC 252)
Sign/Mark Distinctive of “what” ? Of source? By and in itself distinctive because of product features? Distinctive
Protecting non traditional marks may result in decreased number of competing products > increase costs of products in general Increase trademark litigation > chilling effects, rent seeking via licensing More licensing > less competition but also less creativity
Limitations to Protectable Subject Matter Sign/Mark • Perhaps we can break the circularity with AF Distinctive
Downsides of Defenses • High cost of litigation • Chilling effects (market failures) • Rent paid to avoid litigation • Lack of adequate punishment for overreaching claims • Judicial outcomes are unpredictable • No clear tests • Ambiguous factors • Degree of transformation? • Non-reputation related advantage? • Nominative use restrictions
Aesthetically Functional? 9th Cir.: Audi’s and Volkswagen’s marks are not aesthetically functional: • Marks are not essential to the use of the product (license plate holders can be used without the marks). • Marks are not performing a function that would put competitors at a disadvantage. Ultimately, the marks function is to associate goods with a particular source, thus they are non functional.
Marks are not necessarily functional even if they are important ingredients in the commercial success of a product, as long as they continue to serve their function of indicators of commercial origin
Thank You! I welcome your questions and comments irenecalboli@smu.edu.sg