A sponsored blog post may be trademark infringement

Cosmetics company Rodan & Fields, LLC (R+F) launched in July 2020 a new product, its “Brow Defining Boost,” which did not fare well with Petunia Products, Inc. (Petunia), a competitor owning the federal trademark BROW BOOST, registered since June 2006.

R+F marketed its “Brow Defining Boost” product on social media and allegedly used the #BROWBOOST hashtag so prominently that it flooded Petunia’s marketing efforts to use this hashtag.

Former model Molly Sims now manages a beauty blog. Users may register for her newsletter, and follow her Instagram account, which is “shoppable.” Sims wrote a post on her blog promoting R+F “Brow Defining Boost” product, linking to R+F’s website. She wrote a second blog post, thanking R+F for sponsoring her post, reviewing favorably R+F’s product, including a link to R+F’s site as well as an image of the product and its price.

Last April, Petunia sued R+F and Sims for trademark infringement, contributory trademark infringement, false advertising under Cal. Bus. & Prof. Code § 17500, and unlawful and unfair business practices under Cal. Bus. & Prof. Code § 17200.

Sims moved to dismiss. On August 6, 2021, Judge Carney from the Central District of California granted the former model’s motion to dismiss Plaintiff’s contributory trademark infringement and Cal. Bus. & Prof. Code § 17500 claims but denied her motion to dismiss Plaintiff’s direct trademark infringement and Cal. Bus. & Prof. Code § 17200 claims.

The case is Petunia Products, Inc. v. Rodan & Fields, 8:21-cv-00630 (C.D. Cal.).

The blog post may be direct trademark infringement

Plaintiff alleged that R+F is a direct competitor, that its product serves a similar purpose than Plaintiff’s product, and further argued that it uses similar marketing channels as R+F, which may increase likelihood of confusion.

Judge Carney found that the Molly Sim’s post was a paid advertisement, and that she has “thus crossed from protected consumer commentary to commercial use.” As Molly Sims had used the term “Brow Defining Boost” several times in her post, which is similar to BROW BOOST, Judge Carney found that it was “plausible that readers of Sims’ Blog Post might believe that the Allegedly Infringing Product is affiliated with Plaintiff.”

Judge Carney found that “Plaintiff has sufficiently pled a likelihood of confusion under the Sleekcraft factors,” used in the Ninth Circuit to assess likelihood of confusion. The name of R+F’s “Brow Defining Boost” “is quite similar” to Plaintiff’s BROW BOOST trademark, as it “contains the terms “Brow” and “Boost”—the terms which comprise the Trademark—separated by the term “Defining.””

Judge Carney also noted that there is a risk of likelihood of reverse confusion, which “occurs when consumers dealing with the senior mark holder believe that they are doing business with the junior one.”

The blog post is not contributory trademark infringement

Contributory trademark infringement occurs when a defendant intentionally induced the primary infringer to infringe, or if a defendant has continued to supply an infringing product to an infringer knowing that the infringer is mislabeling the product supplied.

However, merely blogging about Defendant’s product as Sims did in the sponsored post is not contributory trademark infringement, and she was not aware of any infringement. Judge Carney granted her motion to dismiss the contributory infringement claim.

The blog post is not false advertising under California law

Using a mark likely to cause confusion can constitute false advertising under Section 17500. However, as Plaintiff “ha[d] not alleged actual or constructive knowledge as required under Section 17500,” Judge Carney granted Sims’ motion to dismiss the contributory infringement claim.

The blog post may be unlawful and unfair business practices under California law

As Judge Carney did not dismiss Plaintiff’s claim of direct trademark infringement, he did not dismiss Plaintiff’s “congruous” unlawful and unfair business practices claim under Cal. Bus. & Prof. Code § 17200.

Takeaway

The case will now move forward to a jury unless the parties settle.

Should Petunia prevail in a court of law, influencers would have to conduct due diligence before accepting to sponsor a product or services, including verifying that the name of the product or services is not infringing. This would be a heavy responsibility to bear.

Influencers would then be likely to negotiate in their contract a provision that the company “represents, warrants and covenants” that the product or service they are asked to promote or sponsor does not infringe third parties’ rights.

 

Image is courtesy of the Met Museum: Tabula (Square) with the Head of Spring, 5th–7th century

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Seventh Circuit: No Trademark Infringement by a Fictional Product

140486844_4e215ff6d2_zI wrote a post this week for The IPKat blog about the Fortres Grand Corporation v.Warner Bros. case  no. 12-cv-00535.

The Seventh Circuit affirmed the district court’s judgment which had found that Warner Bros. had not infringed the CLEAN SLATE trademark owned by Fortres Grand for computer software. What makes this case interesting is that Fortres Grand was claiming that Warner Bros. had infringed its trademark in its Batman movie The Dark Knight Rises, which includes several references to a fictional software program called “clean slate.”

 

Image is Don’t waste your college life in a drunken stupor courtesy of Flickr user Waldo Jaquith under a CC BY-SA 2.0 license.

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‘The Fitchuation’ T-Shirt Did Not Infringe ‘The Situation’ Trademark

4490088209_be2158df1cMichael Sorrentino, a former Jersey Shore cast member, recently lost his trademark infringement suit against retailer Abercrombie & Fitch (A&F).

Sorrentino was part of the cast of the (in)famous MTV reality television show from its December 2009 start. He gave himself the nickname ‘The Situation’ or ‘Sitch.’ The show quickly became popular and, on February 2010, A&F started selling on its web site t-shirts with “The Fitchuation” printed in front, a word play on ‘The Situation.’

However, A&F’s interest in Sorrentino and the Jersey Shore show turned quickly into disdain. When casts members, including Sorrentino, wore A&F clothing on the show, A&F released a statement in August 2011 stating that “[it was] deeply concerned that Mr. Sorrentino’s association with [its]brand could cause significant damage to [its] image.” A&F even offered up to $10,000 to Sorrentino and other members of the cast NOT to wear A&F apparel. (See August,16  2011 press release here)

Sorrentino owns with his brother Marc the MPS Entertainment Limited Liability Company, which holds several ‘The Situation’ registered trademarks. The trademark applications were filed late 2010, and the company sells apparel on its web site, some of them bearing ‘The Situation’ trademark.

Sorrentino and MPS (Plaintiffs) filed a trademark infringement suit in 2012 against A&F (Defendant), claiming that A&F infringed on their trademark ‘The Situation’ by selling and advertising its ‘Fitchuation’ t-shirts. On June 28, 2013, the Southern District of Florida granted summary judgment to Defendant, finding no trademark infringement.

No Likelihood of Consumer Confusion

The Southern District Court of Florida belongs to the 11th Circuit, and thus used the Alliance Metals v. Hinely Indus. Inc. multifactor test for likelihood of consumer confusion. These seven factors are:

–          Strength of the mark

–          Similarity of the mark

–          Comparison of the goods and services

–          Similarity of the parties retail outlets and customers

–          Similarity of Advertising media

–          Defendants’ intent

–          Actual confusion in the consuming public

Strength of the mark: Trademarks are traditionally classified by courts and commentators as (1) generic, (2) descriptive, (3) suggestive or (4) arbitrary or fanciful (see Zatarain’s Inc. v. Oak Grove Smokehouse, Inc). Arbitrary or fanciful terms “bear no relationship to the products or services to which they are applied” (Zatarain) and do not have to prove that they have acquired secondary meaning for the public, that is, that the public recognizes a particular term as designating a particular product. Think as an example ‘Apple’ designating a cell phone, not a fruit.

The Southern District Court of Florida found that ‘The Situation’ is an arbitrary and fanciful mark, as it bears no relationship to the product or service.

Similarity of the mark: Defendant had argued that ‘The Fitchuation’ t-shirt was a parody. The court did not elaborate on this argument, but nevertheless weighed in favor of Defendant on that factor. It noted that Defendant had used its own ‘Fitch’ trademark and that had reduced the likelihood of consumer confusion. The court also noted that “The Fitchuation” is “visually and phonetically different that “The Situation.””

Comparison of the goods and services: This factor weighed in favor the Defendant as there was no evidence that the public had confused its products with those of Plaintiff which, indeed, had not even started selling its own t-shirt line at the time A&F sold its ‘Fitchuation’ t-shirt.

Similarity of the parties retail outlets and customers: A&F sold its t-shirt exclusively though its stores and web site. There was no similarity of sales channels here, and there was no similarity of advertising media either.

As for Defendants’ intent, A&F did not have the intent to misappropriate the plaintiff’s goodwill. The t-shirt was a parody, and was not sold it to profit from Plaintiffs’ business reputation. The court cited the 1987 10th Circuit case Jordache Enterprises, Inc. v. Hogg Wyld, Ltd. where the court had found no likelihood of confusion between Jordache blue jeans and Lardasche blue jeans for plus size women, sold complete with a smiling pig and the word ‘Lardashe’ on the back of the pants.

Finally, there was no Actual confusion in the consuming public Plaintiff did not present any evidence to the contrary, and the court rejected a survey presented by Plaintiff as evidence as defective.

For all these reasons, the Southern District of Florida granted summary judgment to A&F on the trademark infringement claim.

Barring ‘Undesirable’ Customers from Wearing one’s Goods (Not a Good Idea!)

From the August 16, 2011 A&F press release about Jersey Shore cast members wearing A&F clothing:

We are deeply concerned that Mr. Sorrentino’s association with our brand could cause significant damage to our image.  We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans.”

A&F is using the term “brand,” not “trademark.”A brand refers to the whole package, going to the store, emulating the models featured  in the catalog and adhering to company’s ‘values.’ A&F has “fans,” not customers, and the brand is “aspirational,” meaning that the customers buy the goods to emulate a certain lifestyle, most of the time a lifestyle above their current socio-economical mean. A customer may buy and wear, say, a branded tee-shirt, because he aspires to be part of the happy-few set wearing that particular brand. But what if some customers deemed ‘undeserving’ by a brand do start wearing its products?

You Are Not Worthy!

In 2005, Burberry was desperate to prevent ‘Chavs’ from wearing its famous check. At the time, they particularly favored a certain Burberry baseball cap. ‘Chavs’ gained the reputation to party (very) hard, and the Burberrys baseball cap became a symbol of infamy. Some night clubs even started banning them and Burberry eventually decided to stop producing them.

A&F is notorious for seeking to prevent some people from wearing A&F goods. After an A&F manager reportedly peeped that poor people should not wear A&F clothing, Greg Karber, a LA-based writer launched a campaign on You Tube urging people to donate A&F clothing to homeless people.

In essence, what Mr. Karber was trying to achieve is a non-commercial dilution of the brand. The Lanham Act prevents dilution of the distinctive quality of a famous mark, but the use has to be commercial. It defines dilution by tarnishment as an “association arising from the similarity between a mark or trade name and a famous mark that harms the reputation of the famous mark.” Let’s hope that there will never, ever, be  a bill proposing that wearing a brand while not being ‘worthy’ of it could be deemed tarnishment as well.

Image is Snooki & The Situation: The Egg Version courtesy of Flickr user chicagogeek pursuant to a CC BY 2.0 license.

 

 

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