As the infamous 2020 came to a close, Congress shuffled in changes to the Trademark Act of 1946 by passing the Trademark Modernization Act of 2020 (“TMA”) on December 27, 2020. The TMA becomes effective on December 27, 2021 and makes several changes to federal trademark law that businesses should be aware of going into 2021. This Article is intended to give a brief historical background of trademark law in the United States, and changes to the law in light of the TMA.
A. Historical Overview of Trademarks.
Trademarks are a creature of common law and were originally recognized as the “distinctive symbol of the party using it” after a “considerable period of use.”[1] As Justice Miller observed in the Trade-Mark Cases, 100 U.S. 82, 92 (1879): “At common law the exclusive right [to a trademark] grows out of its use, and not its mere adoption.” This exclusive right remains the overarching purpose for protecting trademarks that are used in commerce.
Despite a robust history and roots in common law, the first trademark legislation in the United States was struck down by the Supreme Court. In 1870, Congress enacted legislation to “revise, consolidate, and amend the statutes relating to patents and copyrights” by introducing guidelines for registration of trademarks.[2] In 1876, the law was amended to punish individuals for using, selling, and counterfeiting trademarks either by fine or imprisonment.[3] However, in the Trade-Mark Cases of 1879, the Supreme Court struck down these statutes, holding that the statutes were invalid and unconstitutional.[4] The Trade-Mark Cases involved three criminal convictions of men accused of counterfeiting G.H. Mumm & Co. and Piper Heidsick, two French champagnes, and a whiskey that had been registered by another individual. The defendants contended that the statute was unconstitutional because the purpose of the statute was to govern the commerce between citizens of the same state, and not interstate commerce as authorized by the Commerce Clause of the United States Constitution, therefore the legislation was unconstitutional.[5] The Supreme Court agreed but suggested that the legislation may be constitutional if it was confined to regulating the use of trademarks in foreign or interstate commerce.[6]
Taking the Supreme Court’s hint, Congress enacted the Trademark Act of 1881 to “authorize the registration of trade-marks and protect the same.”[7] This landmark legislation outlined how to register a trademark with the Patent Office, restrictions upon infringement, and authorizing the Commissioner of Patents to make rules and regulations for the use of trademarks.[8] Once approved, the law allowed the trademark to remain in force for thirty (30) years and the registration of the trademark was considered “prima facie evidence of ownership.”[9]
In 1905, Congress revised the Trademark Act to provide for an examination procedure, publication of the trademark to allow for third parties to oppose the trademark registration, and denial of trademarks on the basis of: (1) the application is “substantially identical” to a registered trademark; or (2) the application “nearly resembles” an existing trademark that it is likely to be mistaken for the registered mark by the public.[10] Certificates of registration of a trademark remained in effect for twenty (20) years, and allowed for original jurisdiction in the federal courts and U.S. Supreme Court for actions relating to trademarks.[11] Following the 1905 legislation, Congress enacted several amendments to the Trademark Act in 1906, 1907, 1911, 1924, 1925, 1930, and 1938.[12]
B. The Lanham Act & Recent Amendments.
- The Lanham Act.
- Trademark Counterfeiting Act of 1984.
- Trademark Dilution Act of 1995 & Trademark Dilution Revisionist Act of 2006.
- Anticybersquatting Consumer Protection Act.
- Rebuttable Presumption of Irreparable Harm.
- Ex Parte Challenges to Registration by Third Parties and the PTO.