Of course when a decision comes down 9-0 from the Supreme Court, I have to assume I'm missing some understanding here.
Of course when a decision comes down 9-0 from the Supreme Court, I have to assume I'm missing some understanding here.
In general, appeals courts such as SCOTUS never decide on the facts of the case. They only determine whether a lower court "screwed up" somehow, and can reverse rulings or offer re-trials if so.
Relevant quotes from the article:
> But in a 9-0 decision, the justices said a precedent known as the Rogers test for assessing the use of trademarks in artistic expression did not apply to VIP's products, reversing a U.S. appeals court
> The Rogers test is "not appropriate when the accused infringer has used a trademark to designate the source of its own goods - in other words, has used a trademark as a trademark," Justice Elena Kagan wrote.
> The whiskey maker will still have to prove VIP's toys are likely to confuse potential customers into thinking it was affiliated with them in order to win its infringement case.
The new decision says that the Rogers Test should only be applied to things that are not in and of themselves trademarks. So, if someone is referencing the Pepsi logo in their movie, or in an advert, or in a painting they are selling, you should apply the Rogers Test to see if that is a violation of the trademark or not.
But if the Pepsi logo (or something that Pepsi claims is too similar to it) is the only one showing up on their beverage packaging, or on the shoes they're selling, or on a T-shirt and all of its labeling, even if that T-shirt is being given away at a charity event and is thus non-commercial - well, then they are using a trademark as a trademark, and now they can't rely on the Rogers test. Instead, they have to be judged on the buyer confusion standard (would a regular person believe they are getting an official Pepsi product when seeing this item, or not?).
The SCOTUS decision is all about shutting down the short-circuit that the lower court applied, now requiring them to go back and decide on the confusion question.
The Rogers Test comes from Rogers v. Grimaldi, 875 F.2d 994 (2d Cir. 1989), which asked whether an Italian film named “Ginger and Fred” infringed a trademark of famous film stars Ginger Rogers and Fred Astaire.
The alternative is called “nominative use”, which is to use the mark of another to refer to the other’s goods or services.
For example, a cola manufacturer can write in an advert, “Better than Coca-Cola!” and it does not infringe the Coca-Cola mark, because the name is being used to identify the competitor’s product. If the same company called its own product “Better Coca-Cola”, however, that would be using the trademark as a trademark and it could potentially infringe. (Probably would, in fact.)
But also, even if you were able to show the expert's study design was badly done and/or biased, there is another prong to trademark and that is dilution. When the brand is as famous as JD, they can argue that another company copying them is causing harm to their brand's reputation. Considering this dog toy product compared JD to dog shit, the court ruled that there definitely was dilution.
The last part is if the parody is directly related to the commercial aspect of the product. The defendant in this case admittedly used the parody brand as a trademark for themselves, and so the courts found it was indeed directly related to the business aspect.
However, naming a reasonably good character in your children's film "SPA'AM" is not considered trademark tarnishment[2].
[1]https://scholar.google.com/scholar_case?case=110145089733630...
[2]https://scholar.google.com/scholar_case?case=161886856728668...
I disagree with that, and so did the Supreme Court justices. Companies put out "side products" of their own all the time. Think about Tesla's flamethrower, or their tequila. I could easily imagine a liquor company putting out some good-natured pet products that imitated their primary brand.
If you study economics for any length of time you will realize the majority of human misery is driven by market power abuses restricting human ingenuity, pushing labor prices artificially, etc. Copyright, patent, and trademark explicitly increase market power substantially and so it is very dangerous to do what the supreme court did, as the fundamental test for these things should be "what is the minimum we can do to solve x?" where x is a problem like brand confusion, product safety, etc. What was done in this ruling was to push us even further from the minimum and it's a very bad thing for society.
I don't see any problem with this ruling whatsoever. It says nothing about parody for non-commercial purposes. The dog toy owner was specifically trying to leverage JD's brand for his own economic benefit. And it's not like a patent, where patent owners try to remove the ability to make something that sometimes isn't even that novel in the public sphere.
Slippery slope arguments are incredibly weak here if you look at the actual content of the ruling.
It's as if instead of the band AQUA releasing a song called "Barbie Girl", there had been a band called "Barbie Girl" which used the Barbie logo in all of their branding and album covers, and then tried to claim they were just a parody.
> The Rogers test is "not appropriate when the accused infringer has used a trademark to designate the source of its own goods - in other words, has used a trademark as a trademark," Justice Elena Kagan wrote.
…
> VIP had conceded that it used "Bad Spaniels" as a trademark.
They then make a comparison to the song Barbie Girl (apparently also resulted in a lawsuit but with the opposite outcome), since that uses a trademark not as a trademark.
This all seems to be about specifically whether the Rogers Test[0] applies, with brand confusion questions still requiring proof later (probably by a lower court):
> The whiskey maker will still have to prove VIP's toys are likely to confuse potential customers into thinking it was affiliated with them in order to win its infringement case.
Branding has almost transcended physical products. Apple Computers and Apple Corps were allowed to exist in the same markets because computers are not music. However, the now Apple Inc is more than computers. It's software, phones, tablets, chip manufacturing, streaming, etc.
No, no one is going to confuse a dog toy with a bottle of Jack Daniel's. Just like no one would confuse a magnet, shirt, pin, or a plethora of merchandise with actual Jack Daniel's whiskey.
But the Brown-Forman Corporation licenses the likeness of the label and bottle to make all of those items and more. The logotype, the shape of the bottle, the colors, all serve to remind people of the core product. They want to evoke a certain feeling associated with that brand. And if a product with their branding is made to a poor standard, if a chew toy is made with material harmful to dogs, there is a chance that people will assume that Brown-Forman is responsible.
And they may want to actually make a Jack Daniel's themed chew toy. Or license their IP to someone to do it for them.
So basically, since brands aren't really tied to a singular product any more, the entire idea of "separate domains" is rendered effectively moot at this point.
Also, IP is the larger term. It encompasses trademark law, copyright, trade secrets, and others. Trademark is actually fairly strict, "fair use" doesn't apply, and parody is not a protection
9-0 is a great clue that if the headline is confusing then maybe it's time to read the controlling opinion in the decision.