Trademark Infringement - The Eight Factor Analysis Courts Use to Decide These Cases

Trademark infringement claims are increasinglyintent in selecting its mark; evidence of actual
common. This article describes the eight factorsconfusion; and the likelihood of expansion in
courts use to determine whether one entity hasproduct lines.
infringed on the mark of another. U.S. trademarkSome factors are much more important than
protection is granted to the first entity to use aothers, and the relative importance of each
particular mark in the geographic area where itindividual factor will be case-specific. Some of the
operates, regardless of whether the mark isfactors relevant to determining the likelihood of
registered.confusion will always be important, such as the
Whether infringement has occurred hinges uponsimilarity of the marks and whether the two
the likelihood of confusion by consumers of thecompanies are direct competitors. Where the two
trademarks at issuemarks are entirely dissimilar, there is no likelihood
The U.S. Supreme Court has described the basicof confusion. For example "Pepsi" does not infringe
objectives of trademark law as follows:Coca-Cola's "Coke."
"trademark law, by preventing others fromEven in situations where a complainant's and an
copying a source-identifying mark, 'reduce[s] thealleged infringer's mark are the same, there may
customer's costs of shopping and makingbe no consumer confusion and no trademark
purchasing decisions,' for it quickly and easilyinfringement if the alleged infringer is in a different
assures a potential customer that the item withgeographic area or in a wholly different industry.
trademark is made by the same producer asThe more similar the marks in terms of
other similarly marked items that he or she likedappearance, sound, and meaning, the greater the
in the past. At the same time, the law helpslikelihood of confusion. In analyzing this factor the
assure a producer that it (and not an imitatingmarks must be considered in their entirety and as
competitor) will reap the financial andthey appear in the marketplace with similarities
reputation-related rewards associated with aweighed more heavily than differences.
desirable product. "A couple of interesting examples of identical
To establish a trademark infringement claim or anmarks without consumer confusion concern hot
unfair competition claim a business must showdogs and pizza. In the case of Weiner King, Inc. v.
that another entity is using a mark confusinglyWiener King Corp., the court permitted concurrent
similar to a valid, protectable trademarkuse of "Weiner King" as a mark for restaurants
Registering a trademark on the Principal Registerfeaturing hot dogs in New Jersey and "Wiener
in the Patent and Trademark Office constitutesKing" as a mark for restaurants in North Carolina.
prima facie evidence of the validity of theSimilarly, in Pinocchio's Pizza Inc. v. Sandra Inc., the
registered mark and of plaintiff's exclusive right tocourt permitted concurrent use of "PINOCCHIO'S"
use the mark on the goods and services specifiedas a service mark for restaurants in Maryland and
in the registration. A party can rebut the"PINOCCHIOS" as a service mark for restaurants
presumption that the registered trademark is validelsewhere in the country.
and that registrant is entitled to exclusive use ofThe courts have stated that their analysis of the
mark by showing that it was the party which firsteight factors is pliant, which means that there is
used the mark, not the registrant. This is trueno bright line test. This is problematic for business
because a fundamental tenet of trademark law isowners whose trademark has great value. Due to
that ownership of an inherently distinctive mark isthe absence of a bright line test trademark
governed by priority of use.disputes can rarely be solved without consulting a
Courts look to eight key factors for guidance inlawyer. This is not to say that all trademark
determining the likelihood of confusiondisputes must go to court. Often, the disputes
In determining the likelihood of confusion incan be resolved without litigation. Large companies
trademark infringement actions the courts look tozealously guard their trademarks. If your
these eight factors: the similarity of the conflictingcompany receives a letter alleging you are
designations; the relatedness or proximity of theinfringing on the trademark of another entity you
two companies' products or services; strength ofshould not take what you read as determinative,
the plaintiff's mark; marketing channels used; thebut you should review the allegations with a
degree of care likely to be exercised bylawyer immediately.
purchasers in selecting goods; the defendant's