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™Trade Dress

© 2015 Peter S. Menell

Expanding Scope

Key Issues:

2. Functionality: Fostering Innovation and Competition

1. Threshold for Protection

Trade DressMarksUS PTO Reg. No. 4277913

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Marketing Themes Protected As “Trade Dress”

Phillip Morris Inc. v. Star Tobacco Corp., 879 F.Supp. 379 (SDNY 1995)

47 UC Davis L. Rev. 787 (2014)

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1. Threshold for Protection

Can Trade Dress Be Inherently Distinctive?

Trade Dress

Product Packaging

ProductDesign

Cocktail Shaker

Secondary Meaning RequiredCan be

Inherently Distinctive

1. Threshold for Protection

Packaging

Design

How do you categorize close cases?

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1. Threshold for Protection

Can Trade Dress Be Inherently Distinctive?

Trade Dress

Product Packaging

ProductDesign

Cocktail Shaker

Secondary Meaning RequiredCan be

Inherently Distinctive

2. Functionality

Utilitarian

Kellogg v. National Biscuit Co.,305 U.S. 111 (1938)

“The patented machines were designed to produce only the pillow-shaped biscuits. . . . Hence, upon expiration of the patents the form . . . was dedicated to the public.”

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2. Functionality

Supreme Court Jurisprudence

200 mg CYCLOSPLASMOL®Cyclandelate (Inwood Labs)

“In general terms, a product feature is functional if it is essential to the use or purpose of the article or it affects the cost or quality of the article.” Inwood Laboratories v. Ives Laboratories, 456 U.S. 844, 850 n.10 (1982)

Cyclandelate200 mg

400 mg CYCLOSPLASMOL®Cyclandelate (Inwood Labs)

Ives 4148

Cyclandelate400 mg

1982

2. Functionality

Supreme Court Jurisprudence

1982

“In general terms, a product feature is functional if it is essential to the use or purpose of the article or it affects the cost or quality of the article.” Inwood Laboratories v. Ives Laboratories, 456 U.S. 844, 850 n.10 (1982)

Cyclandelate200 mg Cyclandelate

400 mg

1995

Expands upon Inwood defn by noting that a functional feature “would put competitors at a significant non-reputation-related disadvantage.” Qualitex Co. v. Jacobson Products Co., 514 U.S. 159, 165 (1995)

Competitive Necessity Element?

®: green-gold color?

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WINDMASTER®

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2. Functionality

Utilitarian Aesthetic

Definition: A product feature is functional if:

• it is essential to the use or purpose of thearticle; or

• it affects the cost or quality of the article.

Burden of Proof: Claimant must establish nonfunctionality of trade dress (if unregistered)

• Patent protection creates a strong inferenceof functionality

• can be overcome by showing design featureis ornamental, incidental, or arbitrary.

• recognizes aesthetic functionality

Suggests that Qualitex observation (“would put competitors at a significant non-reputation-related disadvantage”) creates a competitive necessity requirement in aesthetic functionality cases

TrafFix Devices v. Marketing Displays, Inc., 532 U.S. 23 (2001)

Backdoor

©

?

Restat. Torts §742, comment a

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TM?

Advertising touted its fan grill shape as a “true achievement in aerodynamic efficiency accomplishing “a high degree of safety and functionality.”

“applicable to ventilators and the like”

DUCTED FAN

The “principal object” of the invention was “a new and improved grill and duct structure which increases the fan’s capacity and efficiency while decreasing its sound over the prior art grills.”

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Vornado Air Circulation Systems v. Duracraft Corp., 58 F.3d 1498 (10th Cir. 1995)

™

Leatherman Tool Group, Inc. v. Cooper Industries, Inc., 199 F.3d 1009 (9th Cir. 1999)

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Restat. Torts §742, comment a

Pagliero v. Wallace China Co.,198 F.2d 339 (9th Cir 1952)

“When goods are bought largely for their aesthetic value, their features may be functional . . .” Restat Torts §742 (1938)

Test: functional if TM protection would“substantially hinder competition”

Test: important ingredient in commercial success

Aesthetic Functionality

Price: $16.95

Silverplated Napkin Holder

Baroque

Wallace Int’l Silversmiths v. Goldinger Silver Art Co., 916 F2d 76 (2d Cir 1990)

Rejects Pagliero Test (“important ingredient in commercial success”) as too broad;

Requires evidence of foreclosure of alternatives

Aesthetic Functionality• Pagliero test criticized and narrowed by many circuits; rejected entirely by some

Aesthetic functionality only if the configuration “confers a significant benefit that cannot practically be duplicated by the use of alternative designs.” Restatement (Third) Unfair Competition §17, comment c

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Basket design is NOT necessary to compete

Villeroy & Boch v. THC Sys., Inc., 999 F.2d 619 (2d Cir. 1993)

Louboutin Registration

Louboutin Red Sole sec. 2(f)Registration 3,361,597. Jan. 1, 2008for women's high fashion designerfootwear.The color(s) red is/areclaimed as a feature of themark. The mark consists ofa lacquered red sole onfootwear. The dotted linesare not part of the mark butare intended only to showplacement of the mark.

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CHRISTIAN LOUBOUTIN RED OUTSOLES

Louboutin shoes are“instantly identifiable by hissignature red soles.”Geo. Malkemus, Pres. OfManolo Blahnik U.S.A.:“You wore a red sole andeveryone knew you spent$1,200 or $1,400 for yourshoes.”

The Color Red

. . . gives my shoes “energy.”

. . . “is engaging, flirtatious, memorable and the color of passion.”

. . . “appeals to everyone and is sexy.”

Christian Louboutin

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v.

Maker’s Mark Bourbon Cuervo Reserve Tequila

Maker’s Mark Distillery Inc. v. Diageo North America Inc., 676 F.3d 410 (6th Cir. 2012)

Dripping Red Wax Seal• NOT utilitarian functional• NOT aesthetically functional• NOT generic

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Functionality of Some Elements Does Not Necessarily Doom Trade Dress Protection

Trade Dress Is Evaluated Based on Overall Appearance

Trade Dress Infringement Frequently Shown by Surveys

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Preconceived Beliefs Survey Questions

Survey Procedures

Market ShareBrand Popularity

Other Factors

Guessing

Trade Dress Infringement Frequently Shown by Surveys:But Surveys Require Controls

Trade Dress Infringement Frequently Shown by Surveys:But Surveys Require Controls

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TEST CELL CONTROL CELL

Trade Dress Infringement Frequently Shown by Surveys:But Surveys Require Controls

Trade Dress Infringement Frequently Shown by Surveys:But Surveys Require Controls