Trademark Protection Isn't Available for 'Merely Descriptive' Marks

Here is an example of a poor judgment with regard to spending money on legal fees. In a nutshell, a popular legal blogsite Lawyerist.com filed suit to invalidate two trademarks registered by another popular legal site, Technolawyer. The trademarks in question are "BigLaw," and "SmallLaw," which Technolawyer uses as nicknames to classify AmLaw 100 law firms at large, versus small and medium firms that don't have offices in 17 countries worldwide.

The issue is that trademark law—which is set forth in the Lanham Act of 1946 (Title 15 of the United States Code)—does not afford exclusive protection for marks (terms, phrases, etc.) that are merely descriptive, which, arguably is the case with BigLaw and SmallLaw. When a mark is deemed merely descriptive, the mark's owner can only get protection of that mark if it has acquired secondary meaning. Secondary meaning "denotes an association in the mind of the consumer between the trade dress or name of a product and a particular producer.”

In the lawsuit, Lawyerist claims that at least seven other legal websites use the terms BigLaw and SmallLaw, and if that's the case, it would seem that the marks are not worthy of trademark protection. Having said that, this is a situation in which you should weigh the pros and cons of making a federal case out of something. Why? Because it's expensive, and because there isn't much upside if you win. If the court invalidates Technolawyer's trademarks, there isn't a recognizable monetary benefit available to Lawyerist. And on top of that, they will spend hundreds of thousands in legal fees to achieve that result.

Lawyerist seeks the following relief:

a. A declaration that Lawyerist’s use of the phrase―small law‖ and the terms SmallLaw and BigLaw does not infringe on PeerViews’s trademarks;

b. Cancellation of the trademarks SmallLaw and BigLaw;

c. Costs of litigation and reasonable attorney fees; and

d. Such other and further relief as this Court deems just and proper.

NB: Just because Lawyerist asked for the court to award them attorneys' fees doesn't mean they'll get it. This is a situation where just because you can do something, that doesn't mean that you should. If I were counsel for Lawyerist, I would probably have advised them to sit tight, and wait to see whether Technolawyer files an infringement suit against them. (I don't subscribe to the old adage that it's always better to be a plaintiff than a defendant.) My position could be different if I were only interested in generating revenue for my law practice. The irony is that you would think that a bunch of attorneys would be insightful enough to figure this all out on their own.

Opening Statements Today in Bonds Trial

Barry Bonds's criminal perjury trial officially began yesterday, with a full day of voir dire (pronouncedvwahr deer), which is the process by which attorneys select a jury by questioning the prospective jurors on their backgrounds and potential biases. At the end of the day, eight women and four men, two of whom are black, were selected—at the end of the trial, which could last as long as a month, these twelve individuals will determine Barry Bonds's fate. 

Later this morning, the prosecution and defense are scheduled to give opening statements. If convicted of the most serious charge(s), Bonds could face up to 10 years in federal prison, though as a first-time offender it's unlikely that he would be sentenced to a term of more than two to two-and-one-half years.

Class-Action Privacy Suit Filed Against Netflix; Federal Privacy Law in the Works

 

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If you've ever subscribed to Netflix, you're probably aware that they use your movie watching history to suggest other movies that you might like. Sounds pretty innocuous, right? But according to a lawsuit filed in the Northern District of California March 11th, Netflix also retains its subscribers' viewing histories indefinitely (even long after they've discontinued their subscriptions), and sells the data to third parties. As reported in the Privacy & Information Security Law Blog last week, the suit alleges that Netflix's actions violate the Video Privacy Protection Act of 1988, which Congress passed in the wake of public disclosure of Supreme Court nominee Robert Bork's video rental history.

Although the VSSP is very consumer friendly in terms of the breadth of conduct it prohibits, the plain text of the law says it applies to "video tape rentals," i.e. says nothing about DVDs, or downloaded/streaming movies. Since there is no case law (that I'm aware of) giving a broader construction to the term "video tape rentals," I would expect Netflix to file a motion to dismiss, which the court may grant. If the federal claim is dismissed, however, the case could continue anyway, based on additional claims that Netflix's practices violate the California Customer Records Act, and state unfair competition law.

This is not the first time that Netflix has been sued for these specific business practices. In January of this year, an identical suit was filed in the same California district court, and a previous class-action suit prompted an investigation by the Federal Trade Commission, which issued this letter to Netflix's outside counsel on March 12, 2010:

Netflix's intention to release a second data set one containing a richer portfolio of consumer information—raised serious concerns about the risk that Netflix's customers would be re-identified and associated with their potentially sensitive movie viewing histories and preferences. Due to advances in technology that allow for vast amounts of data to be collected, stored, accessed, and combined, [the FTC] encourages companies to be cautious when releasing data presumed to be 'anonymous' or 'not personally identifiable,' especially when those representations are made to consumers.
Perhaps a coincidence, Senators John Kerry and McCain are reportedly drafting new bi-partisan legislation that would, among other things, establish a "commercial privacy bill of rights," which will likely be supported by the Obama Administration. In December, the Department of Commerce Internet Policy Task force released this 74-page green paper setting forth recommendations for the implementation of sweeping federal legislation aimed at protecting consumer privacy.

 

My 2011 NCAA Tournament Bracket

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How To Win Your 2011 March Madness Pool (and not get fired)

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Selection Sunday is upon us. For a lot of business owners and department heads, that means the upcoming week will be one of the least productive work weeks of the year, especially since this year, "for the first time ever, every tournament game will be carried live nationally in its entirety across CBS, TBS, TNT[,] or truTV."

For most of us, however, it means that we'll be pouring over those iconic NCAA brackets right up until the first tip (which, by the way, is Tuesday evening!). With the expansion of the field of teams, the first three rounds of the tourney will have a whole new format, which means that we can all start with a clean slate this year. That's why I'm passing along a few tips that I've found helpful in filling out my brackets the last couple years.

I lifted most of these tips from a great column I read in Men's Health a few years ago; ever since I implemented this system, I've won or finished top five in my office March Madness pool. Not surprisingly, the column's author had help from the real Brandon Lang (Matthew McConaughey's character in Two for the Money.) Click on this link to read the entire Ten Commandments of Bracketology, by Greg Presto, here's my redux:

According to Presto/Lang, the key first-round matchup(s) are the games pitting the 12–5 seeds against each other. This will be even more important this year because of the new format for the first round—four of the additional teams are slated to be at-large bids, which have historically been #12 seeds.

II. Thou shalt pick the right 12-seed.

Upsets are what makes bracketology fun, and even casual fans have heard of the traditional 12-over-5 first-round topples. But it's not enough to take a stab and pick a dozen-seed to win, says Stoll. "Focus on 12-seeds that have lost 6 or fewer games for the season [13-16 overall against 5-seeds] or 12s that are coming off a loss in their previous game [10-13 against 5-seeds]." The holy grail? A 12-seed that satisfies both criteria -- they're 3-0 all-time in round 1.

Other helpful tips are: Start filling out your bracket in the middle, then work your way out; make sure all top seeds make it to your Elite Eight, and don't put any team lower than a #6 seed in your Final Four. Finally—and this one pains me to say, but unfortunately it's true—don't pick Big Ten teams. Although Ohio State could be an exception to this rule, I'm not picking them (picking them over Florida a couple years ago cost me the pool). The Buckeyes (31–2) will probably be in my Final Four, but I doubt that I'll pick them to win the big dance. I'll post my bracket when it's finished, so everyone can hold my feet to the fire.

If you have your own tried-and-true, stone-cold, lead-pipe lock of a bracket tip or strategy, feel free to post a comment.

Now for a quick word on gambling. Although the law varies from state to state, a few more than half of all states are consistent to the extent that they don't punish "social gambling." Except in the state of Florida, social gambling usually means gambling that doesn't take place in public establishments, and is non-commercial, or not-for-profit—i.e., there is no "house" per se, which takes its own cut off the top of all the wagers. In Florida, social gambling has a ten-dollar table limit. To check your state's laws, attorney Chuck Humphrey put together a great website that summarizes the laws of all fifty states, and compiles the anti-gambling statutes for each state as well.

The key factor with regards to March Madness office pools is that all of the money collected must be redistributed to the winner(s). The person organizing the pool can't take an "administration fee." Also, it's a good idea to be mindful of where you discuss the pool, and where you collect the brackets and money, particularly if you work for a large corporation or government agency. In 2008, a NJ man was fired for running an office pool, despite having done it for the previous four years. Don't be that guy.

Even if you're not running the pool, you still need to keep a couple things in mind. Unless you have express authorization (I'd want it in writing), don't use your work email for pool-related communications. And if you must watch the games while you're on company time, the safest bet is to have your own mobile TV or device with broadband. That way, nobody in IT can track the time you spent on CBSsports.com, or bodog.com for that matter. 

Will the NCAA Sanction Tressel if he Withheld Information?

I don't care about motivation. I care about credibility. —Eliot Spitzer

This is less about the law and probably Tressel_Fear the Vest_2010_10_13.jpgmuch less about college football than it is about credibility. First of all, does Yahoo! Sports have any credibility as an investigative news publication? More importantly, however, if it is true that Tressel received information that players sold Buckeye memorabilia to the owner of a tattoo parlor eight months before Ohio State reported it to the NCAA, how credible was that alleged information?

Jim Tressel is one of the highest paid and highest profile figures in collegiate sports. Despite his generous philanthropy, he's still worth millions, and he runs one of the most successful sports programs in the nation. He has over 100 players on his team, and he teaches in a school with a student body of roughly 65,000. He also has at least one weekly radio talk show, in addition to the countless other interviews and public appearances he attends on a regular basis. What's my point? Jim Tressel has a lot of people in his ear all the time.

Anyone who's ever been to Columbus, Ohio can attest to the viral fanaticism over Buckeyes Football. And then there's this sort of expatriate faction, who hate the Buckeyes just so they can be different. Regardless of their affliction, these fans are constantly emailing and writing letters to the paper (and to Tressel, personally), calling radio talk shows, local and national, and getting on any soapbox they can to tell Tressel what's wrong with his team (i.e., why they're not winning a national championship every year).

So the question is—assuming that Tressel doesn't admit to the allegations in Yahoo's report—who is this person that allegedly told Tressel about the players selling memorabilia? What were the circumstances of the alleged conversation? And what, if anything, did Tressel do after receiving this information?

Now to the law. For all intents and purposes, the NCAA is the league in college sports (think of the individual conferences as divisions). The relevant difference here from pro sports is that there is no players' union. Since, in college sports, the players can't organize, the league wields a lot more power than even the NFL. Even so, although the NCAA oftentimes appears to act randomly or arbitrarily with respect to the sanctions they choose to mete out, they do have an actual set of written rules, known as the Constitution and Bylaws (whether they follow those rules uniformly is an entirely different discussion).

A basic purpose of this Association is to maintain intercollegiate athletics as an integral part of the educational program and the athlete as an integral part of the student body and, by so doing, retain a clear line of demarcation between intercollegiate athletics and professional sports.

So it says on page one of the 431-page Division I manual. (Each division has its own version of the bylaws, which you can download for free from the NCAA Publications website.)

According to the Yahoo! Sports probe, "if Tressel failed to inform [Athletic Director Gene] Smith or the Ohio State compliance department about the players’ dealings," the NCAA could charge him with violations for unethical conduct, failure to monitor, and failure to promote an atmosphere of compliance. The latter two allegations refer to the NCAA's draconian compliance rules.

One of the most basic of these rules is that each school, including its coaches and athletics director, has a duty to self-report rules infractions to the NCAA (see Article 22.2.1 Governance & Commitment to Rules Compliance). It is incredibly difficult to comply with this rule, however, because it is oftentimes subjective at best whether a rules infraction has occurred. This is why any school with a large athletic program typically has a separate department, staffed with a team of lawyers, who work full-time, year-round, to ensure that the school doesn't run afoul of the NCAA's rules.

As this relates to Tressel, if he did in fact receive information about an alleged infraction, he would have been required to look into the allegations further, and then determine whether it was likely that an infraction occurred. If Tressel did make a reasonable inquiry into the matter—the depth of which would be determined by the credibility of the source of the allegation—and then determined that no violation occurred, then he wouldn't have any duty to report it to the NCAA.

Moving to the supposed unethical conduct, which is governed by Article 10.1 of the Bylaws, and provides as follows:

Unethical conduct by a…current or former institutional staff member (e.g., coach…) may include, but is not limited to, the following: 

(a) Refusal to furnish information relevant to an investigation of a possible violation of an NCAA regulation when requested to do so by the NCAA or the individual’s institution;

(j) Failure to provide complete and accurate information to the NCAA…or the institution’s athletics department regarding an individual’s amateur status.

Subsection (a) clearly cannot apply unless the NCAA asked Tressel, prior to December 7th, for information regarding the violations. Subsection (j) cannot apply unless Tressel knew about the incident(s), investigated, and determined that there was a possible violation, but then chose not to tell anybody about it.

 

Although the NCAA may, at its own discretion, apply a much looser interpretation of these rules (or make up new ones), we're still back to credibility. Who is the NCAA going to find as more credible—Jim Tressel, or the unknown individual who allegedly told Tressel about the violations back in April 2010?

 

In some ways, credibility reigns supreme over even integrity. Not to say that integrity is bad; it mainly speaks to a person's general character, and moral and ethical values. Credibility, on the other hand, speaks to a person's honesty and trustworthiness. In trials, juries weigh the credibility of witness and evidence, in close cases, appellate courts often weigh the credibility of counsel, and attorneys size up their adversary's credibility when negotiating. Don't underestimate the value of credibility—it's much easier to keep than it is to regain.

Charlie Sheen's Custody Battle: Will He Get His Kids Back?

It's hard to say who got more facetime on TV last week—Charlie Sheen, or Muammar Gaddafi. Ironically, the media has even been portraying both of them in a similar light. But regardless of how narcissistic and outrageous Charlie Sheen has appeared in interviews this past week, it can't be fair to compare him with a tyrannical dictator believed to be responsible for hundreds (if not thousands) of unjustified killings.

On Tuesday, police showed up to Sheen's Beverly Hills home to remove his 23-month-old twin sons, Max and Bob, in connection with a temporary restraining order (TRO) filed by Sheen's estranged wife, Brooke Mueller. Ordinarily, police can't knock on your door, flash some court order in your face, and take your kids away, because under normal circumstances, this violates due process. Due process is the legal doctrine that guarantees every American the right to notice, and an opportunity to be heard, before the state can take away any fundamental right (such as the right to parent your children).

A TRO, however, is an ex parte order, which means that in extraordinary circumstances, a court may issue the order without first affording notice to the other party. The law pertaining to ex parte orders in California goes like this:

(c) No temporary restraining order shall be granted without notice to the opposing party, unless both of the following requirements are satisfied:

(1) It appears from facts shown by affidavit or by the verified complaint that great or irreparable injury will result to the applicant before the matter can be heard on notice.

(2) The applicant or the applicant's attorney certifies one of the following to the court under oath:

(A) That within a reasonable time prior to the application the applicant informed the opposing party or the opposing party's attorney at what time and where the application would be made.

(B) That the applicant in good faith attempted but was unable to inform the opposing party and the opposing party's attorney, specifying the efforts made to contact them.

(C) That for reasons specified the applicant should not be required to so inform the opposing party or the opposing party's attorney.

Cal. Code of Civ. P. § 527.

In addition, the essence of any injunction, such as a TRO, is irreparable harm. The party seeking the TRO must demonstrate to the court that they will suffer irreparable harm if the court does not issue the order immediately.

In this case, Mueller told the court that Sheen threatened to cut off her head, and send it to her mother in a box, and convinced the court that Sheen should not be given notice of the TRO hearing because she feared that he would hurt her, or that he would remove the twins from the court's jurisdiction.

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Whether Sheen actually said that to Mueller or not, is beside the point, because despite the graphic descriptiveness of the alleged threat, it's only words, and it doesn't demonstrate a likelihood of irreparable harm. On the flip side, however, the judge who rules on the TRO application cannot ignore the threats altogether, because he or she will ultimately get blamed if the defendant does cause some harm in the future. If Sheen's attorney had been able to respond to Mueller's motion, the TRO probably doesn't get granted, but that's usually not how it goes. It is for that very reason that TROs are considered extraordinary remedies, which should not be handed out freely. In my opinion, the judge jumped the gun.

Under California law, the court must hold a "show cause hearing" within 22 days. The purpose of a show cause hearing is for the accused to have a chance to respond to the allegations, somewhat like due process, except that in this scenario the accused has already been deprived of a fundamental right or liberty. Sheen's hearing is set for March 22, which is the same day that the TRO expires. Unless Sheen does something really stupid between now and March 22nd, there will be no further injunctions, and the court will grant visitation rights to Sheen. But that won't be the end of the story.

Sheen's and Mueller's divorce won't be final until at least May, and unless they come to some kind of agreement, the decision on who will get custody of the twins won't be resolved till much later. My guess is that Mueller filed for the TRO because she saw an opportunity based on Sheen's vulnerability stemming from his recent personal and professional conflicts and controversy as played out in the media. Based on some of the things that Mueller stated in her affidavit in support of the TRO, it appears that both parties have been engaging in some heavy duty negotiations, and my guess is that Mueller is only using this as a means to get an upper hand in those negotiations. Maybe it'll work. Then again, maybe it'll blow up in her face (no pun intended).

Download a copy of the court's order, which includes Brooke Mueller's affidavit, and screen shots of the threatening text messages that she alleges Sheen sent to her iPhone. In Re Marriage of Sheen_TRO_2011_02_28.pdf

 

Disclaimer: I'm not licensed to practice in the state of California. The general legal principles of injunctions and family court litigation are common to many jurisdictions, and this post was intended to provide an overview of those procedures.