Leadership Laboratory

Leadership Lab: Intellectual Property Series

This series of essays can help the IT manager learn how to identify and protect intellectual property and intangible assets.

Trademark Infringement - The Likelihood of Confusion - Updated October 27th, 2008
Valuation of Intellectual Property Case Study - IPWatchdog.com -
What is Intellectual Property - March 14th, 2007
Creative Commons and Intellectual Property - May 1st, 2007
What Is a Patent? - April 7th, 2007
Copyright - April 7th, 2007
Digital Rights Management - April 7th, 2007
Trademark and Brand - April 7th, 2007
Trade Secrets - April 7th, 2007
The Value of IP - April 7th, 2007
Licensing and Franchising - April 3rd, 2007
10 Steps to Protect IP - March 13th, 2007

Trademark and Brand

April 7th, 2007
By Stephen Northcutt


Why would a computer security manager care about trademarks? Because they come under attack on the Internet all the time! If we had a dollar for every time we found someone with an unauthorized SANS1 logo on their web page (as if they were a partner), we could buy steak for dinner instead of rice and beans.

According the the Patent Trade Office, "A trademark is a word, name, symbol or device which is used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others. A servicemark is the same as a trademark except that it identifies and distinguishes the source of a service rather than a product. The terms "trademark" and "mark" are commonly used to refer to both trademarks and servicemarks. Trademark rights may be used to prevent others from using a confusingly similar mark, but not to prevent others from making the same goods or from selling the same goods or services under a clearly different mark. Trademarks which are used in interstate or foreign commerce may be registered with the Patent and Trademark Office."2

Traditionally, trademarks have been any word or logo which serves to designate the origin of goods or services. In recent years the law has come to recognize that many other things can serve to designate the origin of goods or services, and are ,therefore, capable of operating as trademarks. Nowadays, things such as advertising jingles, smells, and the shape of goods or packaging may constitute trademarks.

The US State Department has one of the best writeups on marks that can be found:

"As with all intellectual property, trademark and service mark laws are national in origin. Some countries grant rights to the first person to use the mark in the course of business, while other countries grant rights to the first person to obtain a registration in that country. In "first-to-use" countries, rights may subsist without registering the mark with the national trademark office. However, registration is still desirable because it is presumptive evidence of the validity of the mark and the owner's right to use that mark. It also appears on the national register of marks providing notice to the world of the owner's use and claim of ownership. Some countries require that the mark be used in commerce prior to the issuance of a registration, while other countries permit registration based on the intent of the applicant to use the mark in the future. Following the use or registration of a trademark, the owner must use the mark or it may become subject to attack by others on the ground that the owner has abandoned it.

At a minimum, most countries require that a mark be distinctive, i.e., capable of distinguishing the goods or services of the owner of the mark from the goods or services of others. To determine whether a mark meets this test, one must determine the "strength" of the mark.

A mark's strength is usually measured across a spectrum. This spectrum includes, from weakest to strongest, terms that are generic, descriptive, suggestive, arbitrary and fanciful. At the weakest end of the spectrum lie words, symbols or devices that are not capable of distinguishing goods because they are common terms used to identify the goods themselves, e.g., book, table, chair. Such terms are called generic terms and are not protectable as trademarks.

The next category is comprised of descriptive terms. A mark is descriptive if it describes the intended purpose, function, physical characteristic, laudatory quality or end use of the product. Examples of descriptive marks include SAVMOTOR for an engine oil additive intended to prolong the life of an automobile engine, MICRO for wheel weights that are very small, and SUPREME for wine allegedly of superior quality. Because they are not inherently distinctive, a descriptive term cannot be protectable as a mark until, through extensive sales and advertising, the term has come to identify the source of the goods bearing the mark. In the United States, when a descriptive mark achieves this level of distinctiveness, it is said to have acquired a "secondary meaning."

In contrast to descriptive marks, suggestive marks do not immediately describe the goods with which the mark is used, but rather require thought, imagination or perception to reach a conclusion about the nature of the goods. Suggestive marks are considered inherently distinctive and protectable without first acquiring secondary meaning. Examples of suggestive marks may include HERO for fire extinguishers or GREYHOUND for bus transportation services.

Arbitrary marks are words, symbols, and devices that are in common use but, when used on the goods of the trademark owner, neither describe nor suggest the quality of those goods. Examples of arbitrary marks include ARROW for liqueurs, APPLE for computers, and CAMEL for cigarettes. Like suggestive marks, arbitrary marks are inherently distinctive and secondary meaning need not be proven.

The most distinctive marks are fanciful marks. A fanciful mark is a "coined" word or symbol invented or selected for the sole purpose of functioning as a mark. Examples of fanciful marks include EXXON for gasoline, KODAK for photographic supplies, XEROX for photocopying equipment, and CLOROX for bleach. Fanciful marks are traditionally afforded the greatest scope of protection."
3

From mark to brand
Walter Landor, one of the greats of the advertising industry, said: "Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality."4 While this is an often used quote on the Internet, there is a lot more to the process of having a mark become a brand than identifying and authenticating a product. For instance, for years the designer of SANS direct mail brochures was allowed a lot of artistic freedom. The result was that no two brochures for our major events looked alike. Therefore, if you happened to look at a page, there was no way, without considerable study, to associate the direct mail with the brand. Nowadays, the goal is to have a consistent look and feel so that if you look at any page, you recognize it as SANS; AND if you are familiar with SANS, you associate it with cutting edge, high content (drinking from a firehose) and delivery by a world class instructor. That is the goal of branding.

What is Brand Identity?
What comes to mind when you think of "Porsche" or "Rolex"? Such brands are desirable, respected and distinctive. While a product or service may be duplicated, your brand exists only in the minds of your customers.

From brand to branding
Branding is a discipline, it is very important for organizations to consistently distinguish themselves. That is why they yell at you if you create a marketing piece that doesn't use the right fonts and colors. According to Rob Camper, "Branding is certainly not a logo, or marketing, or even a positioning statement. It is a foundation stating who you are, what your association is, what you offer to the world, and how your audience should (or does) perceive you, and it all centers around the increasing necessity of mindshare and conceptual ownership. Without it, organizations will find it more and more difficult to survive."5,6

Trade dress
Trade dress refers to the manner in which a product, or place of business, is "dressed up" to go to market.7 "The trade dress of a product involves the "total image" and can include the color of the packaging, the configuration of goods."8 An example from the information security world would be a Syngress press book cover; because they have consistency in design, you can always spot them no matter what the book title. It will be interesting to see if this holds up now that they have been purchased. ISC2.org does the same thing with their web and print media; the distinctive green and orange helps you spot them and recognize them for what they are. It is wise to establish and register trade dress.

Summary
If your organization is a market leader, the odds are very high that your competition and niche players in your market are infringing on some part of your marks. They may use similar wording to your product's name, emulate the colors you use in advertising, or put your logo on their web site as we mentioned at the beginning of this article. But they are not you! The wise information assurance manager will coach the intellectual property incident handling team to look out for these infringements and report them.

1 http://www.sans.org/
2 http://www.uspto.gov/web/offices/pac/doc/general/whatis.htm
3 http://usinfo.state.gov/products/pubs/archive/prosper/prosper7.htm
4 http://www.buildingbrands.com/definitions/02_brand_definition.php
5 http://www.sans.org/annualevent
6 http://www.logolounge.com/articles/default.asp?Archive=True&ArticleID=381
7 http://www.copylaw.com/new_articles/tradedress.html
8 http://www.amerilawyer.com/trademark/tm_tradedress.htm