COVID-19 Update – Our firm is fully operational. Read the Latest
RT @2ndsatwc: Our next Second Saturday Wake County will be on Saturday, August 8th and Max Rodden will be one of our presenters. To regis…
PPP Loan Application Deadline Extended Until August 8 https://t.co/SD7hFOahrs
Extension Act for PPP Loan Applications: Attorney Eugene Chianelli details what you need to know. https://t.co/hqPwwDBXW3
Selecting a unique, memorable, and descriptive name for your next beer release is becoming a daunting task in the increasingly-crowded craft brewing landscape. The same holds true for your brewery’s nom du guerre. The US Trademark Trial and Appeal Board’s decision in Bell’s Brewery, Inc. v. Innovation Brewing last December is a timely reminder that brewers sometimes must resort to litigation to protect – or more accurately, in this case, defend – their name marks. The opinion also provides a handy rundown of the du Pont factors, which are the 13 guidelines that determine whether your mark steps on the toes of a different mark. The du Pont factors are what a judge will ultimately consider if you end up in a similar legal fight to protect your mark or to push your application through to approval.
In this case, upstart Innovation Brewing of Sylva, NC (population 2,644) applied to register its name as a trademark with the US Patent and Trademark Office. Well-known, regional craft brewer Bell’s Brewery opposed the application – and went to court to do so – arguing that Innovation’s name infringed on Bell’s marks “Inspired Brewing” and “Bottling Innovation Since 1985,” which Bell’s deploys on its coasters, truck wraps, banner/page ads, and other marketing materials.
The critical legal standard in a trademark dispute is the “likelihood of confusion,” or in this case, the risk that a consumer will be unable to distinguish “Innovation Brewing” from “Inspired Brewing” or from “Bottling Innovation Since 1985.” The du Pont factors are a set of 13 guidelines set out in 1973 court case and derived from section 2(d) of the Lanham Act, which is the primary US trademark statute. The du Pont factors (abridged version) are:
Importantly, no single du Pont factor is necessarily more important than any other. These kinds of trademark fights are highly dependent on the facts of the given case.
The Bell’s v. Innovation fight is a classic example of this idea. The TTAB found that both Innovation’s and Bell’s marks related to identical goods (beer), that they moved in the same channels of trade, and targeted the same customers. With each party pricing its beer between $3 to $8 per pint, both Innovation’s and Bell’s target customers fall within the definition of “impulse buyers,” which leads to an increased likelihood of confusion because such customers “are held to a lesser standard of purchasing care” (sorry, bottle traders).
Even though most of the du Pont factors weighed towards Bell’s argument that the marks were confusing, the TTAB concluded that the case turned on the first factor – similarity of appearance, sound, connotation, and overall impression – and held that Innovation’s mark was sufficiently distinct and could be duly registered. The TTAB directly cited the Webster’s Dictionary definitions of both “inspired” (adjective; “very good or clever”) and “innovation” (noun; “a new idea, device, or method”), and concluded that “[t]here simply is no overlap in the meanings of these two words.” In this case, the dictionary definition outweighs the rest of the analysis – and Innovation Brewing doesn’t have to re-order its entire inventory of branded glassware and coasters.
Deciding on a brewery name, or the name for a one-off beer release can be enough of a creative headache on its own. However – and especially when making a “big” naming decision, like for the company, a registered d/b/a, or a product line that aspires to a serious distribution footprint – spend a few minutes thinking through the du Pont factors, and comparing your name selections against a thorough Google search and trademark search for any potential overlap.
Samuel D. Fleder is a partner and member of the firm’s Alcohol Beverage and Creditors Rights practice groups. He concentrates his practice in the areas of business consulting, trademark disputes, regulatory compliance, and construction and commercial litigation in the alcoholic beverage and financial industries. Sam has experience in all aspects of litigation, including motion hearings, depositions, complex discovery matters, trials, appeals, and often most importantly, helping his clients resolve active or threatened litigation efficiently while protecting their business interests. Sam advises clients across the country and is involved in legal representation and litigation across North Carolina, South Carolina, and Virginia....LEARN MORE