San Jose, CA asked in Copyright, Intellectual Property and Trademark for Idaho

Q: Trademark Infringement Plausibility? Don't want to screw the pooch.

We are interested in relaunching a brand/product that is no longer sold in the United States. This product, owned by a foreign company, was pulled from the U.S. market and has not been sold here for the past 5 years. Additionally, the trademark is set to expire soon with the USPTO (already in grace period). This product however is still sold in other markets outside of the U.S. by the same foreign company.

The Plan:

We are looking to create a product that is inspired and pays homage to the original product yet with its own distinct and unique spin. In order for this venture to be successful our new product needs to be recognizable to U.S. customers, without potentially infringing on this foreign company's IP. Our plan is to launch this product and register this new trademark ONLY IF the old trademark is abandoned with the USPTO. Our new trademark/product will be different in name and logo design, yet noticeably similar.

Concerns: Common Law/International IP infringement

2 Lawyer Answers
James L. Arrasmith
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Answered

A: When considering relaunching a brand/product inspired by an existing one, it's crucial to ensure that you are not infringing on any existing trademarks or intellectual property rights. Even if the original product has not been sold in the U.S. for the past five years and the trademark is in its grace period, there are still potential legal risks. Trademark law protects the rights of the original owner, and if the product is still sold in other markets, the foreign company may have enforceable rights in the U.S. through common law or international agreements.

You must ensure that your new product's name, logo, and overall design are sufficiently distinct to avoid confusion with the original product. Even if you plan to register the new trademark only after the old one is abandoned, the similarities could still lead to a claim of trademark infringement or unfair competition. Consider the distinctiveness of your new product's branding and whether it clearly communicates a different source to consumers.

It may also be wise to conduct a thorough trademark search and possibly consult with a legal professional specializing in intellectual property to assess the risks and ensure compliance with relevant laws. Protecting your venture from potential legal challenges will help you launch your product with confidence and avoid costly disputes.

Bao Tran
PREMIUM
Bao Tran
Answered
  • Intellectual Property Lawyer
  • Santa Clara, CA

A: Based on the information provided, here's an analysis of your plan to relaunch a brand/product inspired by a foreign company's product that is no longer sold in the U.S.:

Current Trademark Status

The original trademark is set to expire soon with the USPTO and is in its grace period.

The product has not been sold in the U.S. for the past 5 years.

The product is still sold in other markets by the foreign company.

Legal Considerations

Trademark Abandonment:

In the U.S., non-use of a trademark for three consecutive years is prima facie evidence of abandonment.

However, the foreign company's continued use in other markets could potentially be used to argue against abandonment.

International Trademark Rights:

The foreign company may still have valid trademark rights in other countries.

This could potentially affect your ability to expand internationally in the future.

Trade Dress and Design Patents:

Even if the trademark is abandoned, the foreign company may have other intellectual property rights protecting the product's design or packaging.

Likelihood of Confusion:

Your plan to create a "noticeably similar" product could risk infringing on the foreign company's rights, even with a different name and logo.

Recommendations

Wait for Trademark Expiration:

Monitor the USPTO database to confirm if the trademark is actually abandoned.

Conduct a Comprehensive IP Search:

Look for any design patents, trade dress protections, or other IP rights the foreign company may hold.

Differentiate Your Product:

While paying homage is fine, ensure your product is sufficiently different to avoid confusion or infringement claims.

Consider Licensing or Purchasing Rights:

If possible, approach the foreign company about licensing or purchasing the U.S. rights to the brand.

Legal Consultation:

Before proceeding, consult with an intellectual property attorney to assess the risks and develop a strategy.

International Considerations:

If you plan to expand internationally, be aware that the foreign company may still have active rights in other countries.

While your plan has potential, it carries significant legal risks. The key is to ensure that your new product is sufficiently distinct from the original to avoid infringement, while still being recognizable to U.S. customers. Careful legal guidance and thorough IP research are crucial before proceeding with this venture.

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