Creator Economy, Entrepreneurs, and Trademark


 The United States Creator Economy is in full bloom.  People have found they can make money by sharing their creativity and dreams with others.  Taking creativity and making it entrepreneurial involves several key steps.  One of those steps is securing the intellectual property involved in the creativity.  Intellectual property is in four basic categories:

1) Patents.  Patents are for inventions.  Patents are secured by hiring a U.S. patent attorney or patent agent.  You can find a list of currently registered Patent Practitioners HERE.  Once acquired, a patent lasts 20 years.  It is expensive and time-consuming to get a patent, but can be worth it for genuine inventions that have the potential to sell well.

2) Copyright.  Copyright is for creative works, such as creative writings, music, art, design, photography, and other such creative works.  Copyrights generally last for the lifetime of the creator plus 70 years.  This means that the family or estate of the creator can benefit from the copyright long after the creator has died.  

3) Trade Secrets.  Trade Secrets are not registered with the government.  Trade secrets are things such as means and methods of doing things in your business, your client lists, secret recipes, etc.  For something to be considered a trade secret, you must keep it secret.  That means you keep it under lock and key, do  not put it on the internet, do not generally distribute it to employees, and share it with trusted people only on a need-to-know basis. 

4) Trademark.  Trademarks are words, images, and sometimes colors or sounds that show the source of a goods or service.  Trademarks play a big role in the Creator Economy.  The most important trademark is a beginning company is often the name of the company or the name of the major goods or service being sold.  It is very important to have a trademark lawyer do a search on a propose name BEFORE you settle on the name.  That's so your name will not conflict with any existing or pending trademarks.  Once the proposed name is cleared by the trademark lawyer, it is important to move quickly to apply to register the name.  Your application will be locked in when you file it, even though the trademark registration process takes a full year.  

What names work for a trademark? Trademark is really tricky.  A trademark cannot be "merely descriptive."  That means, the trademark cannot simply describe the goods or services.  For example, "Charbroiled Hamburgers" cannot be a trademark for burgers cooked on the grill.  "Lodge Recording Studio" cannot be a trademark for a recording studio located in a lodge.  "Dainty Cupcakes" cannot be a trademark for tiny cupcakes. 

A trademark can also not be geographic.  "State Street Deli" cannot be a trademark for a deli on State Street. An exception to this is if the trademark has acquired distinctiveness, usually over five years or more.  For example, Abbey Road Studios is a famous music studio on Abbey Road in London.  The U.S. Trademark Office refused to register this trademark as geographic, but allowed it as having acquired distinctiveness based on the fame of the studio and the music created there.  If a trademark is refused as geographic or on some other factors, it might possibly be able to go onto the Supplemental Register. 

There are many requirements that must be met for a trademark.  For example, a trademark must be used to show the source of goods or services sold in commerce.  The services must be performed for the benefit of someone else.  For example, editing or marketing your own books is not for others, while editing or marketing the books of others can have a trademark.

Trademark must be on a goods or service that are legal under federal law.  This requirement comes into play most often today regarding the sale of marijuana or related goods and services.  Although marijuana sales are legal in many states, they are still illegal under federal law.  Therefore, the US Trademark Office does not register trademarks for marijuana as a goods -- or for goods and services that are related to the use of marijuana.  

CBD oil is treated slightly differently by the Trademark Office.  The Farm Act made legal the sale of CBD products, but the FDA still prohibits the use of CBD in food or beverages or as a medicinal taken internally.  Therefore, the US Trademark Office does not register trademarks on those goods, but will register trademarks on CBD soaps, skin oils, and other items that are not consumed.  

Trademarks can be images.  If a trademark has a name and an image, it can often be best to register it both ways -- as a standard word mark and also as an image.  

Trademarks are valuable to a creative business.  Trademarks help create the identity of a business.  Trademarks add to the intrinsic value of a business.  Trademarks are often used as loan collateral, especially for tech businesses.  

Trademark is not a do-it-yourself activity!  You must work with a U.S. trademark lawyer.  

The trademark registration process is complex and takes at least a year.  The basic segments of the process are: 

  • the search to make sure the trademark is not in conflict with existing or pending marks and to make sure it meets the legal requirements;
  • gathering the information and filing the application, which includes a Specimen, which shows the trademark in use in commerce;
  • waiting for the application to be assigned to the Examiner - which takes about 6 months;
  • the trademark Examiner may issue Office Actions that must be responded to;
  • if the trademark is allowed, it moves on to Publication in the gazette, where is is posted for 30 days to allow others to object;
  • if there are no objections, the trademark can be registered and a certificate will be issued.  
The BEST trademarks are unique, original, and imaginative.  Some famous trademarks are part of the American culture -- Coca-Cola, Kleenex, Cheetos, Holiday Inn, Minute Maid, Twitter, Facebook, etc.

When you are choosing a trademark, take your time.  Consult with your trademark lawyer.  A trademark is a fine investment that can pay off for many years to come.  Unlike patent and copyright, trademark has no time limit.  If you keep renewing your trademark, it can last for as long as you keep using it.  A trademark becomes more and more valuable over time as its worth grows with your creative business.  


Trademarks and your Side Hustle - 10 Quick Ideas

 


Trademarks and Your Side Hustle

10 Quick Ideas

by Susan Basko, esq.

You may be planning a small business for your retirement or as a side hustle now.  Trademarks are a backbone of a solid small business.  Here are some basics to know:

1. A trademark is a word (or set of words) or an image or a word and image combination that lets the potential buyers know the source of goods or services.  A trademark is often the name of a company or the name of a product (goods) or service that is sold by a company.  

2. A trademark can be real personal. It can even be your own name or your pen name, DJ name, music name, or the name under which you make jewelry, bake cakes, babysit, or mow lawns.  

3. Marijuana-related services and goods cannot get U.S. registered trademark.  That's because, while the sale of marijuana is legal in many states, it is still illegal federally.  If you apply for a trademark for a marijuana-related service or goods, the US Trademark Office will make "inquiries" of you.  It does not matter what you reply, because the Trademark Office in the end will deny your registration.  Period.  Selling terra cotta pots?  You can get a trademark?  Selling pot? No trademark.  Don't waste your time or money.

4. Work with a lawyer on choosing your business name and the names of your goods or services BEFORE you settle on a name.  That's because you want a name that can be registered as a trademark.  Do not sink your time and money into a name that you will have to change.

5. Merely descriptive. Trademark registrations are refused for being "merely descriptive."  "French Bakery" will be rejected by the Trademark Office if it is for a bakery selling French pastries.  However, if "French Bakery" is the name of a perfume, it might be accepted.

6. Geographic names will be rejected if they describe the location of the business.  "Mildred Street Saloon" will be rejected if it is a saloon on Mildred Street. However, it might possibly be able to go on the Supplemental Register.

7. Geographic names that show the source of origin are tricky.  There are rules for source of origin of things such as cheeses, beers, and wines and spirits.  You should absolutely work with a lawyer from the get-go on any of these.  The rules are complex.  For example, a mark that names the geographic origin of wines or spirits will be rejected as being geographic.  On the other hand, a trademark that incorrectly names or implies that wines or spirits are from a geographic region will also be rejected.  If a geographic terms is considered generic for those goods or services, it might be allowed, but disclaimed.  For possible example, the word "Burgundy" is a geographic location, but is also a generic term for a type of red wine, so a trademark such as "Parasol Burgundy," might be allowed, with the word "Burgundy" disclaimed in the application.  Wines and spirits from a geographic location might be better suited to getting a certificate of origin, which is a process different than a trademark.  This is all very tricky and not a do-it-yourself activity.

8. Your trademark cannot conflict with already-existing or already-pending trademarks for the same Class of goods or services.  They don't have to be the exact same goods or services -- just in the same Class.  For example, leather goods are a Class. If someone has already registered a trademark for Pashmina Wallets, you are not likely to be allowed to register a trademark for Pashimina Belts.  

As another example, a trademark for a company that sells drones will be registered as goods.  A trademark for a company that performs searches or photography or inspections via drones is a service.  As it happens, these two are in different Classes.  However, it is not likely a conflicting word mark would be allowed, even though these are different classes, because they both involve drones.  So it is not likely a trademark examiner will allow Skyway as a drone seller if there already exists Skyway as a drone photography service. 

9. A trademark will often be considered to conflict with an existing trademark if they have one of the same words in the mark, even if the whole trademark is not the same.  The two marks may conflict if they are spelled similarly, but not exactly the same.  Alternative spellings may conflict.  Let's say a trademark is Campus Capers.  An alternate spelling of Kampus Kapers for a same or similar class of goods or services will be considered a conflict and the trademark will not likely be allowed. 

10.  TRADEMARK IS NOT A DO-IT-YOURSELF ACTIVITY.  I register trademarks.  To succeed in registering a trademark, I take a lot of time with the initial search and the choice of trademark.  I counsel the clients on whether the registration is likely to succeed.  If it is not likely to succeed, then the person should choose a different trademark, unless they want to take their chance and be willing to risk their money on a possible rejection.  I spend a lot of time on choosing the proper specimen (sample of the trademark in use) to accompany the application.  The overwhelming vast majority of trademark applications fail.  It takes about a year for a trademark application to go DEAD.  If you want to succeed and end out with a registered trademark, do not try to do-it-yourself.  



Justice and Justin Bieber

 


Justice and Justin Bieber

by Susan Basko, esq.

Justin Bieber has been sent a Cease and Desist by the French electronic music duo called Justice.  Justice registered the trademark on the left, in the French trademark system, but not in the U.S.  The Justice duo claims that the cover of Justin Bieber's latest album, called Justice, seen on the right, infringes upon their copyright.  

Let's look at why this claim is not likely to succeed.  There are many reasons.  First, Justice did not register their trademark in the U.S.  Second, Justin Bieber has not (yet) filed a trademark on "Justice."

Third, "justice" is a generic term, and this electronic duo has no hold or control over the name.  If their name were unique, such as "Megadeth" they might have some legit claim over the word.  As of now, there are 1014 live trademarks in the US trademark system that contain the word, "justice."

Fourth, Justice claims that Bieber's design on the word, "justice" is too similar to theirs, because they claim the "t" is elongated to create a Christian cross.  Look at the two designs.  Justice uses a graffiti writing style, with little arrows coming off the ends of the letters.  Bieber uses a totally different typeface, a very sleek, chunky, modern sans serif lettering. 

The overall line of the lettering on the Justice trademark swoops down and then up again.  Bieber's lettering has a straight bottom line.  In fact, Bieber's letter "t" is not elongated and has the same bottom line as the rest of his letters.

If we were discussing copyright, which is different from trademark, we would note that font styles do not have copyright.  Also, titles of albums do not have copyright.  Also, one cannot copyright a single word.  Also, a common symbol such as a cross does not have copyright. 

Then there is the idea of consumer confusion.  I doubt any fans of Justin Bieber's music have ever heard of the electronic duo, Justice.  Justice's fans have likely heard of Justin Bieber, but they are not likely to confuse these two highly divergent music artists.

I did a search of the US Trademark database to find trademarks that incorporate the word "justice" and also a design of a cross.  I found a short list, and most of them are dead.  

Then, I looked at each of these. I found three that had any possible similarity to the Justice trademark or to Justin Bieber's album cover.  This is the first -- the Medical Justice League, with a crest including a cross.  There is no similarity to either Justice's trademark or Justin Bieber's album cover design.


Next, there is an abandoned trademark using the word "justice" and a cross. Again, not similar.


Third, there is a live trademark for insurance claims that is uses a cross and the word, "justice."  It is the most similar to the French Justice music trademark and to Bieber's album cover design.  Even still, it is not similar to either.  The point here is that anyone can use the word "justice" in a trademark, along with a Latin Cross, and this does not mean it infringes.


I've read that Justin Bieber has a "Justice" clothing line planned.  He should probably get busy and file a trademark on that, before someone beats him to it.

There's another issue some people are complaining about.  Justin Bieber used some wording from Dr. Martin Luther King, Jr., as lyrics in some of his songs.  He did so with the blessing of the King family.  There is a triple blessing to Bieber using MLK's words as lyrics.  The family/ estate holds the copyright on many of Dr. King's famous writings and speeches.  They use the copyright to protect the integrity of the writings, as well as to make money for the family and estate.  This is most helpful since Dr. King died very young and was therefore not around to support his family.  His words lived on, and protected by copyright, have helped support the family.  

Some people have complained that Justin Bieber named Dr. Martin Luther King, Jr as "co-writer" on at least one song.  This is legally a correct thing to do.  The lyrics are written by MLK and therefore, he is a co-songwriter.  This also means that MLK's family or estate is entitled to publishing royalties on the song.  That could add up to quite a bit of money for the family.  

Justin Bieber is not usurping or misusing the MLK name, he is introducing MLK's words and ideas to a new generation.  He is helping spread MLK's ideas about justice.  By doing so, Justin Bieber is helping the MLK family and estate to make money.  By doing so, Justin Bieber is promoting justice in ways that are available to him as a very famous music artist.  





Alexandria Ocasio-Cortez and the Brat Pack

 


Alexandria Ocasio-Cortez and the Brat Pack
by Susan Basko, esq.

You've probably seen the marvelous video above, which features now U.S. Representative Alexandria Ocasio-Cortez back when she was a student at Boston University.  In the video credits, she is listed as "Sandy Ocasio-Cortez."  What are the origins of this great little video?

Back in 2009, the French group named Phoenix released a catchy pop tune called Lisztomania.  The term, Lisztomania, refers to the freaky fandom that was rained down upon the composer Franz LIszt in Berlin in the 1840s.  Liszt was like the Justin Timberlake or Shawn Mendes of his day. 

Someone using the name AvoidantConsumer created a perfect dance video using the Lisztomania song from Phoenix with footage from the 1985 John Hughes movie, The Breakfast Club.  "It stars Emilio Estevez, Anthony Michael Hall, Judd Nelson, Molly Ringwald and Ally Sheedy as teenagers from different high school cliques who spend a Saturday in detention with their authoritarian assistant principal (Paul Gleason)."

The actors that starred in The Breakfast Club and other teen movies of the 1980s became known as The Brat Pack.  John Hughes made a series of movies depicting the lives of white teens from Chicago's wealthy northern suburbs.  Those movies included The Breakfast Club, Sixteen Candles, and Ferris Bueller's Day Off.  The John Hughes movies followed in the footsteps of the 1983 movie Risky Business by Paul Brickman, which also depicted lives of wealthy white Chicago suburban teens, and Class, directed by Lewis John Carlino, which did the same.  In the mid-1980s, it became a movie genre unto itself to tell stories of mischievous wealthy white teens challenging authority in suburban Chicago.  Their big freedom escapades often involved driving from their sleepy suburbs into downtown Chicago.

This rich Chicago teen genre and its tropes got turned on its head by 1992's Wayne's World, directed by Penelope Spheeris.  Wayne's World depicted ersatz Chicago suburban "teens," played by the older Mike Meyers and Dana Carvey as Wayne and Garth.  Wayne and Garth did not drive fancy sports cars; they had a 1976 AMC Pacer, a funny little car with huge windows that looked like a circus clown car.  Wayne and Garth were not pondering what to wear to the prom; they were busy making Public Access TV shows down in the paneled-and-brown-plaid finished basement.

The AvoidantConsumer video (below) was imitated by young people in Brooklyn, and then in Boston, and soon in cities all over the world.  You can see in the video below that the role that AvoidantConsumer created for Ally Sheedy was later imitated and reprised by Sandy Ocasio-Cortez in the Boston remake.  Allegedly, AvoidantConsumer's Youtube channel was shut down for Copyright infringement claimed against the video.  That person has resurrected on Youtube as AvoidantConsumer3. 


The first spin-off video was made on a rooftop in Brooklyn in New York City.  Notice it is pretty faithful to the AvoidantConsumer - Brat Pack original.



Rome, Italy, came up with a nice mashup of the video:


Michigan State University did a decent rendition:


This group from Moscow, Russia, does a pretty good job once they get up to the rooftop.  They capture the spirit of the original, even if they lack a brunette dancer for the Ally Sheedy part.


These folks in Rio de Janeiro look like they are having a lot of fun against the gorgeous scenery.


Students at University of Waterloo in Ontario, Canada, get points for a diverse cast and good dance moves.

 

These folks in Vienna, Austria, posed against the scenic local backdrops to make their Lisztomania mashup.


A family in Curitiba, Brazil, cast the mom, dad, and kids in the roles.  They made the video as a thank-you to Curitiba, which they enjoyed visiting.


These people in Versailles, France, look like they are having a lot of fun.  While they did not imitate the original Brat Pack video, they made up for it in energy and fun.


A shop in Paris, France, became the scene for this remake. Not everyone has a rooftop where they can go to dance around.


Dancers in Taipei, Taiwan, performed their mashup on a city train and on a big staircase. They stayed true to the energy and spirit of the original video, if not to its specifics.


San Francisco put forth an excellent version, with a producer, director, and choreographer listed in the credits.   The video is cast with beautiful young women and men, as one would expect in San Francisco. 



This group of dancers in Rimini, Italy, made good use of the charming local scenery.


Lecce, Italy, cast a beautiful brunette woman in the Ally Sheedy role.  The whole cast looks like they are having lots of fun.  



The Israeli version was performed in Jerusalem, Tel Aviv and Jaffa.  Parts of it were shot using what looks like a big orange Alexander Calder sculpture as a backdrop.  They do some couples dancing as well as some folk dancing moves. 


And finally, this ambitious group from Amsterdam, Netherlands, bring their dancing energy to a scene of graffiti-painted rocks and a water taxi boat.



If I missed any videos, please email me the link if you want me to add it onto this post. 

 Happy Dancing!

Trademarks for Cannabis, Hemp, and CBD Products

Hemp Forest.  Photo by Barbetorte. CC license.

Trademarks for Cannabis, Hemp, and CBD Products
by Susan Basko, esq.

Trademarks for cannabis and hemp products are extremely limited.  I have seen quite a number of applications for trademarks, even made by lawyers, that will surely be rejected as they are assigned to an examiner.  I saw an application today that has about 5 lawyers from one law firm listed; apparently none of them bothered to research the law before filing the application.  The application seeks trademark registration on CBD oil used as a dietary supplement; the Trademark Office has specifically stated it cannot register trademarks for any CBD product sold as a dietary supplement.  What will happen?  The trademark examiner will run the lawyers through a long series of inquiries and then will reject the application.  It will be about a year or more until the clients will find out they are not getting a registration.  That whole process will most likely cost the clients tens of thousands of dollars.  The whole thing is a shame because the Trademark Office has been very clear and forthright about how it is handling trademark applications on marijuana and CBD products.

These are the facts as they stand today.  It's not a pretty picture, but this is what it is: 

US Trademarks follow federal law.  All cannabis and THC products are illegal under the federal Controlled Substances Act (CSA), and so trademarks are refused on any such products or services with regard to those products.  Even if medical or recreational marijuana or THC is legal in a State, it is illegal under federal law, and so the US Trademark Office will refuse to register a trademark. Trademarks are also refused on any goods that are considered "drug paraphernalia," which is interpreted very broadly.  Drug paraphernalia is defined and examples listed below. 

The 2018 Farm Bill removed cannabis products from the CSA if they are considered hemp products, meaning they have less than 0.3% THC on a dry weight basis.  This means that CBD (cannabidiol) products that derive from hemp and have less than 0.3% THC are no longer illegal under the CSA -- however, they might still be illegal under the Federal Food Drug and Cosmetic Act (FDCA).  The FDCA prohibits CBD products that are food, beverages, dietary supplements, or pet treats from being in commerce, and therefore, trademarks are refused on these products - since they cannot legally be in commerce.  

CBD products that are food, beverages, dietary supplements, or pet treats are illegal under federal law and so cannot get a US registered trademark.

The FDA states that it has only approved one CBD product as a drug treatment for two rare forms of epilepsy.  The FDA has not approved any other CBD product for treatment for any other illness or condition.  The FDA states it is inquiring regarding the safety of CBD products and lists liver injury and other potential hazards. 

At this time (early 2020), the US Trademark Office WILL REFUSE to register a trademark on the following goods or services:
  • Marijuana, Marijuana extract, or THC as goods, even if the sale is legal in the State in which it is being sold and even if it is medical marijuana.
  • Goods related to marijuana, such as vaporizers, and any "drug paraphernalia," which is listed below.
  • Services related to these goods, such as a marijuana store, delivery services, growing services.
  • CBD (cannabidiol) containing more than 0.3% THC. 
  • Any CBD product containing less than 0.3% THC if it is a food, beverage, dietary supplement, or pet treat.  This would include such things as CBD gummies, drinks containing CBD, CBD capsules or oil to be taken as a supplement, or pet treats containing CBD. 
SO, WHAT CBD PRODUCTS ARE LEFT THAT CAN GET A REGISTERED TRADEMARK?  Possibly CBD oil that contains less than 0.3% THC that is not meant to be ingested and about which no medical claims have been made.  I do not know yet of any trademark that has been registered in this category, but that seems to be the only possibility.  

Trademarks also cannot be registered on "drug paraphernalia," which is defined by the federal Controlled Substances Act as:

"The term "drug paraphernalia" means any equipment, product, or material of any kind which is primarily intended or designed for use in manufacturing, compounding, converting, concealing, producing, processing, preparing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance, possession of which is unlawful under this subchapter. It includes items primarily intended or designed for use in ingesting, inhaling, or otherwise introducing marijuana, cocaine, hashish, hashish oil, PCP, methamphetamine, or amphetamines into the human body, such as—


(1) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without screens, permanent screens, hashish heads, or punctured metal bowls;
(2) water pipes;
(3) carburetion tubes and devices;
(4) smoking and carburetion masks;
(5) roach clips: meaning objects used to hold burning material, such as a marihuana cigarette, that has become too small or too short to be held in the hand;
(6) miniature spoons with level capacities of one-tenth cubic centimeter or less;
(7) chamber pipes;
(8) carburetor pipes;
(9) electric pipes;
(10) air-driven pipes;
(11) chillums;
(12) bongs;
(13) ice pipes or chillers;
(14) wired cigarette papers; or
(15) cocaine freebase kits.

(e) Matters considered in determination of what constitutes drug paraphernalia

In determining whether an item constitutes drug paraphernalia, in addition to all other logically relevant factors, the following may be considered:
(1) instructions, oral or written, provided with the item concerning its use;
(2) descriptive materials accompanying the item which explain or depict its use;
(3) national and local advertising concerning its use;
(4) the manner in which the item is displayed for sale;
(5) whether the owner, or anyone in control of the item, is a legitimate supplier of like or related items to the community, such as a licensed distributor or dealer of tobacco products;
(6) direct or circumstantial evidence of the ratio of sales of the item(s) to the total sales of the business enterprise;
(7) the existence and scope of legitimate uses of the item in the community; and
(8) expert testimony concerning its use.

(f) Exemptions

This section shall not apply to—
(1) any person authorized by local, State, or Federal law to manufacture, possess, or distribute such items; or
(2) any item that, in the normal lawful course of business, is imported, exported, transported, or sold through the mail or by any other means, and traditionally intended for use with tobacco products, including any pipe, paper, or accessory.
ANALYSIS AND SUMMARY

First, remember that it is not necessary to have a registered trademark to create and use a trademark.  USE of a mark to denote the source of a good or service is how trademarks are created.  You can do that without any registration! Therefore, while the US Trademark Office will refuse registration on trademarks on goods and services that are illegal under federal law, if you are in a State where it is legal to sell marijuana or CBD products, you can use the trademarks of your choice.  Be sure to create your trademark words or images/ logos that are creative and original and that do not infringe on anyone else's trademarks.  You may want to create a file of evidence of your use of the trademark, in case the federal law ever changes.  Then you will have proof you have been using your trademark, where and when you have been using it. 

 It will be interesting to watch and see if marijuana and CBD-based businesses will try to prevent other such businesses from infringing on their unregistered trademarks using State law claims.   Within a State where marijuana and/or CBD sales are legal, it seems likely that businesses will try to prevent each other from "stealing" their names, logos, slogans, etc.  

Second, some States register trademarks.  Illinois, where marijuana has become legal for medical and recreational use, has an Illinois trademark registry.  You can see the Illinois Trademark Registration application form HERE.  

Some other States also register trademarks for goods and services being sold within their States.  These in-state trademarks seem ideally suited to the situation involving marijuana and CBD products, where the US Trademark Office simply will not register trademarks, even if the goods or services are legal in the State.  But, keep in mind, a State trademark provides protection from infringement from within the State, not in other states.  However, since marijuana businesses are State-specific, there is less likelihood that buyers will confuse similarly-sounding businesses in other states.  Still, you might want to choose your trademarks carefully to make them original and unique, even from those used by businesses in other states.  ALSO, you may want to choose trademarks that fit the general rules of the US Trademark Office, so that you will be able to register your mark with the Feds if and when the rules change.  

I used to think of State trademarks as useless and foolish in this day of the internet.  I now see how the State trademark registries could be quite useful when a good or service is refused trademark registry by the US Trademark Office.  

So, a solid trademark plan could be:

1. FEDERAL TRADEMARK?  Find out if your good or service is eligible for a US Trademark.  If it is a marijuana good or service, it is not eligible for a US Trademark.  If it is a CBD (with less than 0.3% THC) good or service, it is not eligible for US Trademark if it is a food, beverage, dietary supplement, or animal treat.  If your good or service is eligible, create a unique and original trademark that does not conflict with any existing trademarks and apply to register it at the US Trademark Office.  Keep in mind, registration is a process that takes about 18 months and has many facets to it.  A trademark registration for a CBD product will require a great deal of interaction between the trademark examiner and your lawyer.  The trademark examiner is required to engage in a series of inquiries regarding all applications for trademarks on CBD products or for other potentially illegal goods or services, where the potential illegality appears on the face of the application.

2. STATE TRADEMARK? If your goods or services are not legal under federal law, but if they are legal under State law, check and see if your State registers trademarks.  Create a trademark or service mark that is unique and original and does not conflict with any already-existing trademarks, and apply to register it with your State.  If you create a trademark that meets the other requirements of US Trademarks, then you will be set to apply to register with the US Trademark Office if and when the laws change.  

3. USE IT ANYWAY!  If you find you cannot register your trademark federally or in-state, you can still use it!  You can create brand awareness with the name and/or symbol you use to denote the source of your goods and services, and you can do that without registering anything at all.  Just do a solid search to be sure you are not infringing on anyone else's trademark.  

4. Get a trademark lawyer.  Don't try to do this on your own.  What I have written here is complicated, and it is the tip of the iceberg.  Trademark law is very complicated!  In the case of trademarks on marijuana and CBD products, a trademark inquiry involves not just the extremely complex trademark law, but also the Controlled Substances Act (CSA) and the Food, Drug, and Cosmetics Act (FDCA).   

5. Prepare in advance for changes in the law.  Keep pictures of your use of your trademark with your goods or services on products, on ads, on websites.  Keep a whole file of evidence as proof you have been using the trademark so you can register it with the US Trademark Office if and when the laws change.  It may take years for the laws to change, but they will likely change at some point, and you want to be prepared.  



Drones: Basic Federal Law

                                                  Image by Free-Photos from Pixabay

Drones: Basic Federal Law
By Susan Basko, esq.

Drones equipped with cameras or other sensors are really popular now as a fun hobby or as a business venture.  This article is to let the readers know the basic federal law regarding drone ownership and usage.

Drones are also known as UAVs, Unmanned Aerial Vehicles, or UAS, Unmanned Aerial Systems.  More commonly they are just called drones.  Drones can be used by hobbyists to get fun aerial shots.  They can also be used by organizations to survey land, search for a missing person, or make a video to promote a school or park.  Professional drone businesses use unmanned aerial systems, which may have different types of sensors on them, to inspect oil fields and oil rigs, storage tanks, water towers, cell towers, building sites, roofs, etc.  Any inspection job where you need to see the top of anything, a drone can be a great tool.  Most drones send video to a computer on the ground, where it is analyzed and reports made for the client.  

The basic law regarding drones comes from the Federal Aviation Administration, of FAA.  Although States and cities may have local drone laws, the basic laws that all drone owners and users in the U.S. must follow come from the FAA.

There are 3 basics in current federal drone law:
  • 1) Do you need to register your drone?
  • 2) Do you need to be licensed to operate a drone?
  • 3) Does your drone need to be able to communicate its identification?
1) DO YOU NEED TO REGISTER YOUR DRONE?
VERY LIGHTWEIGHT DRONE USED ONLY FOR RECREATIONAL PURPOSE -- DO NOT NEED TO REGISTER.  ALL drones must be registered unless they weigh under .55 pounds or less (under 250 grams) AND if they are flown ONLY under the Exception for Recreational Flyers.  Recreational Flyers are those who are not flying for any organizational or business purpose.  

DRONE OVER .55 POUNDS and up to 55 POUNDS  -- MUST REGISTER.  (THOSE WITH drones over 55 pounds must contact the FAA directly.) You register your drone with the FAA at the Drone Zone.  THIS IS THE LINK TO THE DRONE ZONE: drondzone.faa.gov

Registration costs $5 and is valid for 3 years. You'll need a credit or debit card and the make and model of your drone handy in order to register.  

Create an account and register your drone at dronezone.faa.gov. Select "Fly sUAS under Part 107."
Once you've registered, mark your drone (PDF) with your registration number in case it gets lost or stolen.

2. DO YOU NEED TO BE LICENSED TO OPERATE YOUR DRONE?
YES, If your drone is between .55 pound (half pound) and up to 55 pounds, AND if you operate it for an organization or business, you need to get your Remote Pilot Certificate.

 Become an FAA-Certified Drone Pilot by Passing the Knowledge Test

To be eligible to get your Remote Pilot Certificate, you must be:

  • At least 16 years old
  • Able to read, write, speak, and understand English
  • Be in a physical and mental condition to safely fly a UAS

Study for the Knowledge Test
Review Knowledge Test Suggested Study Materials provided by the FAA.

Obtain an FAA Tracking Number (FTN)
Create an Integrated Airman Certification and Rating Application (IACRA) profile prior to registering for the knowledge test.

Schedule an Appointment
Take the Knowledge Test at an FAA-approved Knowledge Testing Center.

Complete FAA Form 8710-13
Once you've passed your test, for a remote pilot certificate (FAA Airman Certificate and/or Rating Application) login the FAA Integrated Airman Certificate and/or Rating Application system (IACRA)* to complete FAA form 8710-13.

Review the full process to get your Remote Pilot Certificate.

3) DOES YOUR DRONE NEED TO BE ABLE TO COMMUNICATE ITS IDENTIFICATION (REMOTE ID)?

Yes, drones must now have Remote ID.  There are several ways to meet the requirements.

What is Remote ID?

Remote ID is the ability of a drone in flight to provide identification and location information that can be received by other parties.

Why Do We Need Remote ID?

Remote ID helps the FAA, law enforcement, and other federal agencies find the control station when a drone appears to be flying in an unsafe manner or where it is not allowed to fly. Remote ID also lays the foundation of the safety and security groundwork needed for more complex drone operations.

There are three ways drone pilots will be able to meet the identification requirements of the remote ID rule:

  • Operate a Standard Remote ID Drone (PDF) that broadcasts identification and location information about the drone and its control station. A Standard Remote ID Drone is one that is produced with built-in remote ID broadcast capability in accordance with the remote ID rule's requirements.
  • Operate a drone with a remote ID broadcast module (PDF). A broadcast module is a device that broadcasts identification and location information about the drone and its take-off location in accordance with the remote ID rule's requirements. The broadcast module can be added to a drone to retrofit it with remote ID capability. Persons operating a drone with a remote ID broadcast module must be able to see their drone at all times during flight.
  • Operate (without remote ID equipment) (PDF) at FAA-recognized identification areas (FRIAs) sponsored by community-based organizations or educational institutions. FRIAs are the only locations unmanned aircraft (drones and radio-controlled airplanes) may operate without broadcasting remote ID message elements.



Much of this information is taken from the FAA website on UAS.  Please go there to read more detailed information.  This blog post is a basic summary.  You will need to learn so much more to become a drone pilot.  

TRADEMARKS:  If you are starting a drone business, it's a good idea to protect the name of your business with a registered trademark.  I am a lawyer who registers trademarks, and I recently applied for a trademark for a drone business.  This gave me reason to spend a lot of time searching the trademark database for drone trademarks.  There are two basic categories -- businesses that sell drones as goods, and businesses that run a drone service, such as drone photography, drone inspection, drone search, etc.  You will want to get in with a good drone business name before the best ones are all registered by someone else.  The success of your business can hinge on having a good professional trademarked name.
 

Good News from the Trademark Office

 


Good News from the Trademark Office

by Susan Basko, esq.


Today, the U.S.Trademark Office sent out the good news below that one of the scammers who has bilked thousands of trademark applicants and holders out of millions of dollars has been arrested. The sad news is that there are many more such scammers.  The good news is that the U.S. Department of Justice has finally gotten serious about taking down these persistent frauds.

The way these scams work is that after a person applies for a trademark, they start receiving very realistic-looking bills via U.S. mail, email, or text.  The bills claim to be from the Trademark Office, and are for random amounts in the hundreds or thousands of dollars.  Many people have been fooled into paying recurring monthly bills.  There are no such fees or services required by the U.S. Trademark Office.  

Most of the people who get roped into paying these fake bills are do-it-yourself trademark applicants or those who use those scammy website things.  If they were working with a real lawyer, the lawyer would remind them the bill is fake.  It is ironic that people who skimp on legal fees by doing it themselves then go and pay thousands of dollars in fake fees. 

Developments on fraudulent solicitations 

This week, the United States Department of Justice announced that Viktors Suhorukovs, a citizen of Latvia, was sentenced to more than four years in federal prison and ordered to pay over $4.5 million in restitution after pleading guilty to mail fraud in a multi-million-dollar scheme to defraud owners of U.S. trademark registrationsSuhorukovs established and operated Patent and Trademark Office, LLCand Patent and Trademark Bureau, LLC. These entities gave the false impression that they were, in fact, the United States Patent and Trademark Office (USPTO), scamming more than 2,900 U.S. trademark registrants out of millions of dollars for inflated, and often fake, renewal fees.  

This is one of many schemes that confuse and defraud owners of U.S. registrations with solicitations that are intended to look like official USPTO correspondence. These schemes often falsely promise to take required maintenance actions on behalf of the registration owner, or they scam registrants into paying for services they don’t need.

We have worked hard to fight these solicitations and assist law enforcement in cases like Suhorukovs'. Learn more about our ongoing efforts to combat scams on our website. 





Trademark Scams Aplenty

Trademark Scams Aplenty

by Susan Basko, esq.

Trademark scams are harming the work of the U.S. Trademark Office, as well as harming legitimate Trademark lawyers, and duping and defrauding trademark applicants. If you want to apply for a trademark, how can you spot a scam?  This is fairly easy -- if you are using an automated service, instead of a trademark lawyer, you have probably been taken in by a scam.  If you are not conferring directly with a real live licensed lawyer, it is probably a scam.  If it appears to cost too little, it is probably a scam.  If it arrives in the mail demanding money, it is definitely a scam.  Below, we will look at a few of the biggest trademark scam/ fraud situations going right now.  

First, I recently received this Alert from the U.S. Trademark Office.  


Trademark Alert.  U.S. lawyers: Beware of solicitations asking to use your bar credentials

The USPTO recently learned that U.S. attorneys are again receiving emails from unlicensed individuals offering to pay to use the attorney's bar credentials in trademark filings  These solicitations are a direct attempt to circumvent the U.S. counsel rule.

Although we believe that only a small percentage of practitioners are engaging in this practice, the USPTO would like to remind U.S. attorneys that such an arrangement would likely be aiding the unauthorized practice of law and also a violation of federal rules, including the USPTO's Rule of Professional Conduct, 37 C.F.R. Part 11.

Scams can adversely impact the integrity of the trademark register.  If you receive a solicitation asking to use your bar credentials, please forward it to TMScams@uspto.gov.

Explained: The US Trademark Office requires any foreign entity to hire a U.S. lawyer to conduct any work with the U.S. Trademark Office, including trademark applications and the certification process.  In addition, the U.S. Trademark Office only allows licensed U.S. lawyers to represent any other person or entity before the Trademark Office.  There are non-lawyers who engage in trademark registration scams -- and thus, they try to "borrow" credentials from lawyers.  However, as you can note in the warning above, any lawyer agreeing to this is likely to lose their law license and possibly face criminal charges.  

ANOTHER HUGE TRADEMARK SCAM involves automated websites that claim to be registering trademarks for people, often at unrealistically low prices.  This whole practice started several years ago, and this is how it works:  Only a U.S.-licensed lawyer can register a trademark for any other person or company,  So, these automated websites claim that it is the applicants themselves who are registering their own trademark.  But, this makes no sense.  Trademark registration is a process that takes at least a year, and involves interaction with the trademark examiner.  These trademark website scams also usually charge unrealistically low prices.  The registration fee itself is $250 - $350 per class of goods or services.  On top of that, there is the work of a trademark lawyer for at least a year.  So, when you do a google search and up top are listings for companies charging $49, $59 or $69 for trademark registration, you know it is a scam.  It could not possibly cost that low when the required application fee itself is several hundred dollars.

I saw one trademark scam ad touting a "Turnaround Time of 72 Hours." This is not even slightly possible.  After filing an application, it waits for about 4 months to be assigned to a Trademark Examiner. In 72 hours, the application may (or may not) show up on the USPTO Database as "LIVE."  "Live" is used to denote trademarks that are in the application process that have not yet been declared DEAD, as well as those that have been successfully registered.  Perhaps the Trademark Office should make a different designation for trademark applications that are still in the application process -- for example, "Application Pending."  Referring to fraudulent trademark applications as "LIVE" facilitates that fraud.  The scam companies can send their customers a fake trademark certificate and point to their trademark on the USPTO database with the word "LIVE" next to it.  If the scam company takes no further action on a doomed application, as things are now run at the USPTO, that "LIVE" designation will remain for a year.  That feeds the fraud and enables it.  

Tim Lince of World Trademark Review did an absolutely brilliant investigative journalism piece on these trademark scam companies.   Muhammad Burhan Mirza of Digitonics Lab was arrested for running many of these trademark websites.  He and nine others were charged with fraud and money-laundering for running sites that claimed to be doing trademark registration, logo creation, ghostwriting services, etc.  

One of the many fraud websites was one called USPTOTrademarks.com  Obviously, that name would fool a lot of people into believing it was legit.  "The website (‘usptotrademarks.com’) uses the USPTO’s logo and colour scheme, while its About Us page claims to be “a project initiated by experienced lawyers and technologists” with “12 years of experience”." The website claims to be in "San Jose, California," but the operators were arrested in Pakistan.  How did it work?  They simply sent fake Trademark certificates to the applicants. "Even more concerningly, the report alleges that the company gave around 70% to 75% of clients “fake/fabricated” USPTO trademark certificates as part of the scam." 

Despite the flurry of arrests and allegations of fraud and extortion against these websites, some of them are still online to this day, such as USPTO Trademarks, a screen shot taken just now, shown below.  The entirety of U.S. Intellectual Property law is at stake -- at this juncture, the U.S. needs to step up and shut down these kind of scams with the same ferocity it uses to shut down kiddie porn sites.  Look at the site below-- could you blame people for being tricked into thinking this was legit?  

 

The U.S. Trademark Office has many times stated that it is not within their allowed activities to engage in prosecution of frauds or scams -- though the office does cooperate fully with authorities.  

This proliferation of scams harms the public, as well as harming the USPTO.  The only solution I can see that would work would be to require every trademark application to be filed by a licensed attorney and to have that attorney vouch for the legitimacy of the application and of his or her intent to conduct the full application process.  Federal courts require this of lawyers filing lawsuits.  It is time to do this with trademarks.  The trademark office is inundated with thousands of these fraudulent trademark applications, according to a follow-up article by Tim Lince of World Trademark Review (WTR).  In February of 2021, World Trademark Review published a list of the trademark applications made by 6 of these companies.  There are 81 pages of these trademark applications, with about 27 listed on each page!  The list gives the status of each application. Applying for a trademark is a process that takes at least a year and has various phases to it.  

If an application is going to fail, it usually takes at least a year from the date of filing for it to go DEAD on the USPTO database.  That's because a trademark application is filed and then sits for about 4 months waiting to be assigned to an Examiner.  If the Examiner issues a Nonfinal Office Action, the applicant is given 6 months to file a response.  If no response is filed or an incomplete or unsatisfactory response is filed, as would often be the case with an application not being tended to by a trademark lawyer, then it will go dead, usually several months after the 6 months deadline.  This means that applications destined to fail are on the USPTO Trademark Database as "LIVE" for about a year.  This harms and affects applicants who are trying to register trademarks that may conflict with the trademarks on the doomed applications -- their applications will be  put on hold to wait for the earlier-filed application to clear or go DEAD.  

This massive influx of trademark applications not properly made causes a huge amount of needless work for Trademark Examiners.  The Examiners are required to respond to each application as if it were legit.  Recently, however, the Trademark Office created a rule that short-circuits some of this.  The office has begun requiring an email address of the applicant.  The fraudulent companies have been in the practice of supplying their own email, probably to keep the applicant from finding out their application is not being handled properly.  After all, if a company is sending fake Trademark Certificates to 75% of its customers, the company does not want its customers in contact with the Trademark Office, where they may be alerted to the scam.  By having the Examiner request the trademark applicant's email address early on in the process, the Examiner can halt the process early on without progressing to the painstaking efforts of reviewing the application and writing a Nonfinal Office Action.

Google ads is at least partly to blame for this fiasco.  The fake and fraudulent trademark companies buy up key words and pay to have their ads at the top of the list when a person google-searches for trademark registration.  The ads offer very low prices, quick turnaround times -- none of which comport with the reality of trademark applications.  But, those being suckered into using these sites cannot be blamed -- the site says "USPTO Trademark," looks legit, etc. The REAL website of the US Patent and Trademark Office , USPTO.gov, to be truthful, is a cluttered mess.  It would be hard to blame the public for being attracted to a website that claims to be dealing in trademarks and makes it look as if the process is going to be easy, smooth, well-platformed, and affordable.  Should the US DOJ stop Google from running ads for fraudulent companies?  Better asked, WHY is the US DOJ allowing Google to run ads for fraudulent companies, companies that harm and make a mockery of the U.S. Trademark, Patent, and Copyright Offices?

The real USPTO website -- USPTO.gov  - is cluttered, incomprehensible, has a search engine that delivers poor results, and is not in any way user-friendly.  A person wants to register a trademark, and if they do somehow manage, against all odds, to find the real USPTO website, they find up front a very dated photo of Jim Henson and the Muppets, lots of information on Covid-19, and cluttered verbiage with hundreds of links.  This ludicrously poor website design drives people to using fake and fraud websites that at least appear to offer streamlined solutions.  People get lured by absurdly low prices that, in fact, do not even cover the actual trademark registration fees.  Getting a trademark is like getting a university degree -- you can either pay a lot of money and spend a lot of time and work and get a genuine trademark and the certificate that goes with it, or you can pay $69 and fill out an online application and get a fake certificate.  

Screen shot of half of the front page of the real USPTO Website, below.  


My suggestions on how to deal with the current mess at the USPTO:

1. Require all trademark applications to be made only by licensed lawyers.  Most successful applications are already made by licensed lawyers, so all this would really do is get rid of the fraud applications and the nonsensical or poorly-made applications.  Have a list of lawyers who practice before the Trademark Office, and publish it, so the public knows how to find a real trademark lawyer.

2. Have the DOJ take aggressive action against fraudulent Trademark websites and companies, domain name ownership that confuses the public, etc.

3.  Have a public awareness campaign on what trademark is, how much it costs, and the rather complex process involved in getting a trademark.

OTHER TRADEMARK SCAMS.  

Trademark applicants, even those making legitimate applications, are besieged by mail from fake companies demanding payment for fake trademark services.  The mail usually looks like bills and comes from addresses that include company names and addresses that sound somewhat legit.  These bills demand payment of hundreds, or usually thousands of dollars.  I have come across people online who have been paying hundreds of dollars each month to "maintain" their trademark.  These people have been duped by realistic-looking bills.  IF.. if these people had registered their trademarks using a real lawyer, they could ask the lawyer about the bill, and the lawyer would tell them, "No, that is fake.  Don't pay it."  

The U.S. Trademark Office is very well aware of these scams.  The Office, unfortunately, refers to them as "misleading notices."   "Misleading notices" is far too soft a term for fake bills that cause people to pay thousands of dollars to a scam company.  "Beware of all types of offers and notices not from the USPTO. In March 2017, the operators of a private company—the Trademark Compliance Center—were convicted of money laundering in a trademark renewal scam." https://www.uspto.gov/trademarks/protect/caution-misleading-notices  

The USPTO provides a list of the names of some of the companies that have been sending out fake bills and notices demanding money.  You can click on any of the links to see actual examples of the misleading notices.

Solicitations originating within the United States

Solicitations originating outside the United States


This video gives additional useful information about these scam solicitations that are sent to most everyone that applies for a trademark, whether or not the applicant uses a trademark lawyer.