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Trademark Monitoring

Written by: Shannon Moore

Article Overview: After you've had your trademark application filed, it's absolutely necessary that you monitor your trademark in some way. The USPTO does conduct a search of their own files so if someone does file for a Federal trademark after your registration it typically is rejected. However, relying on the USPTO to protect your trademark is a mistake for several reasons.

Trademark Monitoring

After you've had your trademark application filed, it's absolutely necessary that you monitor your trademark in some way. The USPTO does conduct a search of their own files so if someone does file for a Federal trademark after your registration it typically is rejected. However, relying on the USPTO to protect your trademark is a mistake for several reasons. First and foremost, the USPTO is going to operate by their guidelines, which are strict to an extent. However, they may not be strict enough for your own liking. Let's look at a real life example:

• Norcross Safety Products has a registered Federal trademark for Ladybug for "garden clogs and garden boots," which is in International Class 25, the clothing class

• TSP Fashion has a pending Federal trademark for Lady B. for clothing of all types in International Class 25 and specifically mentioned "shoes, sandals and slippers"

On the surface they look different except in looking at the record for Lady B. you can see that there is also an inclusion of a design of a ladybug. Again, the names are different but the message of the name is similar as is the industry, namely clothing. This is not to say that the USPTO is wrong in not refusing Lady B's filing but it does prove my point.

Let's just assume that Norcross would take issue with this mark. Unless they're monitoring their mark in some way, Norcross would not have a clue that Lady B. is close to becoming registered.

Second, it can take the USPTO almost 6 months to conduct a search of their records. This means that a competitor can be using the same or similar name that whole time, which means you're likely losing customers and if so, you're definitely losing money.

Third, the USPTO only searches their records, which consist of the Federal trademarks. Yes, that's a large number of records however State trademarks are going to be relevant to your business as well.

Let's say your business primarily does business on the West Coast but you have plans to expand to the East Coast. A Federal trademark does give you the right to the entire country, however, if someone has a New York trademark you'll have new hurdles to deal with in expanding that can be time consuming and costly.

Those are three important reasons why monitoring your registered trademark is a necessary part of your business plan. There are a couple of different ways you can go about monitoring your mark - 1) hire a trademark monitoring service OR 2) have comprehensive trademark research conducted every 2-3 years.

Related Articles
  Failure to Prosecute Infringers Will LEad to Loss of Trademark Rights
  How to Register a Trademark
  Do You Need a Registered Trademark?
  Descriptive Trademarks
  Trademark a Name and Logo: Together or Separate?

Article Tags: clue, competitor, extent, federal trademark, federal trademarks, garden boots, garden clogs, inclusion, ladybug, liking, mistake, norcross safety products, sandals, shoes, slippers, state trademarks, trademark application, tsp, uspto, whole time



Related Forum Posts
Re: Are You Complying with the FTC? - Hi Jeff, I understand the apparent benefits of these regulations to us as consumers. However, from a legal stand point, don't you think they will set precedents and open the doors to more stringent regulations on the internet? Monitoring? Datamining? Subpoenas? I know some advocacy groups must. I'm not taking any sides in this issue. And perhaps "outrage" is a strong word. But I do think that if FTC begin to heavily regulate social media, there will be deeper consequences. Do you foresee drastic behavioral changes from bloggers and the online entrepreneurial community?
Re: About: product production! - [quote="FreshGoods":1yq3rfuo]Most importantly,with all that has been said...when is it absolutely appropriate to patent your idea? Why do people file for patents if it is not necessary? I would really like to know this please. I appreciate your helpful tips a lot! THANKS.[/quote:1yq3rfuo] Hi FreshGoods, Don't forget that you can always patent your product yourself (or even incorporate your company or apply for a trademark or copyright) and without the help of a lawyer. It would save you a lot of money. For instance, if I got my Trademark filed by my lawyer, it would've cost about $1200+. But going through the process myself by simply reading the official brochure only cost about $450 total.
How to protect my trade mark? - What affirmative action can he take, at least commercially, other than to "continue to sell online and in a small number of stores?" What if his means are limited? How much additional burden on the trademark holder, who has already jumped through the hoops of registration and is actually marketing his product, is it fair to place? Trademark registration, to have any value, surely ought to amplify a trademark's holder's ability to defend his/her mark. But if a mark is continually vulnerable to attack from those with deeper pockets, then registration would appear to have little evident or useful purpose, except among like-sized, or similarly endowed entities. But if you mean that he ought to take legal action rather than commercial action, does not the same rule apply: that whoever can pay the most generally will win? How this fosters a healthy public policy environment is difficult to discern. Would not a system of bribery ultimately be more efficient and predictable, if not more honest in the naive sense?
Information about doing franchise business in China - CHINA’S FRANCHISE LEGAL SYSTEM Introduction Franchises has a history of more than one hundred years in foreign countries, now it has developed to be a mature business mode, and it is widely used in many countries, especially the developed ones. Recently, franchises has been developing fast in China, covering more than sixty industries and trades such as catering, retailing, clothes-washing, indoor decorations and gym. However, the market order of franchises is chaotic in some industries and areas. There are also some illegal and criminal activities under the guise of franchises. Under such circumstances, several important laws have been promulgated to regulate the commercial franchising activities. Applicable Legislation The main legislative provisions governing the commercial franchising in the PRC are: the Measures on Administration of Commercial Franchises; and the Measures on Administration of Archival Filing of Commercial Franchises; and the Measures on Administration of Information Disclosure of Commercial Franchises Qualification for Franchisors According to the laws, the franchisors as those enterprises who own such business sources as registered trademarks, enterprise logos, patents and proprietary technology, and license these business sources to franchisees. Firstly, the franchisors shall be enterprises, excluding other economic organizations and individuals. Secondly, the trademarks which can be licensed to franchisees shall be registered trademarks. According to the Trademark Law, the trademarks, whether registered or not, are protected under the laws, though there is difference in the vigor and extents of protection. It seems that the Ministry of Commerce has restrictions in recognizing trademarks, since it only provides “own trademarks to be licensed to others” at large, which causes chaos in practice. In the cases relevant to franchising disputes which we provided legal service to, all of them involve the situation that the franchisors granted licenses of non-registered trademarks or the trademarks which were in application to others, and when there was infringement on trademarks, the franchisors were unable to prevent infringement on trademarks. Then the interests of the franchisees could not be realized. What’s more, franchising activities with non-registered trademarks also, to some extent, encourage commercial frauds. Thirdly, the logos, patents and proprietary technology of enterprises are included in the business sources to be licensed to others for the first time, which enlarges the application scope of franchises and will improve the development of franchises. Requirements to be Met in Carrying on Franchising Activities In addition to the condition that only the enterprises will be allowed to carry on franchising activities referred to above, the franchisors shall also have mature business modes, and are able to provide business guidance, technology support and training. The enterprises which copy the manuals, websites and enlisting documents of others, and have no service abilities for providing business guidance, technology support and training shall be excluded. What needs pointing out is that even these enterprises that are allowed to carry on business may face with the suits claiming them for unfair competition and infringements on intellectual properties. In addition, the Measures clearly request that the franchisors shall operate at least two directly operated shops, and the period of operation shall be more than 1 year, which aims to prevent frauds by the way of franchising. Information Disclosure Requirements and Regulation on Franchisors Information disclosure system is the core system of franchising. The laws provides that the franchisors shall establish and implement a perfect information disclosure system, and provide the relevant information and franchising contracts in written form, at least thirty days before execution of franchising contracts. It also sets out the specific provisions on the information which shall be provided by franchisors, including the basic conditions and commercial reputation records of the franchisors and their legal representatives, business sources owned by franchisors, abilities of franchisors to provide service to franchisees and management and supervision on business of franchisees, franchisee fees and the payments, and budgets for investment in franchising shops. To the franchisors that violate these provisions, the authorities in charge of commerce will order them to rectify, charge penalties and make public statements. Archival Filing and Public Announcement Systems To protect the franchisees’ lawful rights and interests, considering the asymmetric information between franchisors and franchisees, in addition to intensifying information disclosure requirements and regulating the activities of franchisors, the Measures also bring in the archival filing and public announcement systems. The Measures provides that the franchisors shall make a filing with the commerce administrative department within 15 days after the execution of franchising contracts for the first time. Anyone who intends to engage in any commercial franchise activities within a province, autonomous region, or municipality directly under the Central Government shall go through the archival filing formalities in the commerce administrative department of the people’s government of the province, autonomous region, or municipality directly under the Central Government where the franchisors are located. Anyone who intends to engage in any commercial franchise activities beyond a province, autonomous region, or municipality directly under the Central Government shall go through archival filing formalities in the commerce administrative department of the State Council. Any franchisor having been engaging in franchise activities before May 1, 2007 shall apply for archival filing at the commercial administrative department. The Ministry of Commerce has established the national network for archival filing work relating to commercial franchise. Any franchisor shall go through the archival formalities through the government website. The general public may obtain the following information through the government website of the Ministry of Commerce: (1)The registered trademark(s), enterprise mark(s), patent(s), know-how and other business resources of the franchisor; (2)The franchisor’s archival filing date; (3)The location of the legal business place, contact information and name of the legal representative of the franchisor; and (4)The location of the business place of the franchisee(s) within China. The authorities in charge of filing will cancel the archival filing if there is any following activities of franchisors, and make public announcement on the government website: (1) the business licenses of the franchisors have been withdrawn by the registration administrative authorities for illegal business; (2) the authorities in charge of filing receive judicial suggestion letter on cancellation of archival filing from the judiciary for illegal business by franchisors; (3) the franchisors conceal the relevant information or provide false information, which has been proved; (4) the franchisors carry on cancellation by themselves. In addition, the illegal activities of the franchisors will be announced to the public. By Erex Chen, a Chinese lawyer based in Shanghai.


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