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Rally Round the Trade Name

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Rally Round the Trade Name
Patricia Hammonds
Professor Bryan Smith
Law, Ethics and Corp Governance – Leg 500
March 7, 2012

Explain whether or not the fact that Gabby’s surname is Rally gives her the right to use it any way she wishes.

In the above question I will explain whether or not Gabby can use her surname as a business name. In the case of Rally round the trade name, the fact that Gabby’s surname is Rally does not give her the right to use her name for a pizza business. The name is registered for the car dealership; the trademark law protects it. As I explore the word trademark it’s definition is any word, phrase or symbol used to recognize certain manufacturer or seller’s goods and to distinguish them from other competitors. Also in my research According to the “Federal trademark law- the Lanham Trademark Act (1946) and the Federal Trademark Dilution Act of 1995- it was enacted to protect a company’s ownership rights to the name, logo or symbol that identifies its products”. A mark has to be distinctive to serve as a trademark, this mean that the products or services are to distinguish from those manufactured or provided by others. Several categories determine a mark to be distinctive.
The categories are; • Arbitrary or fanciful, (the mark bears no logical relationship to the underlying product). Example; the word “Nikon” has no inherent relationship with the camera. • Suggestive (mark evokes or suggests a characteristic of the underlying goods), example, “Citibank” used with financial services. • Descriptive, (describes quality or features of the goods and services), example; “Holiday Inn” describes a hotel. • Generic, (general group to which the underlying product belongs). Example; “juice” is a generic term which categorize juice.
In the case of Rally, since it has no logical relationship with a car dealer is an arbitrary or fanciful mark, and it has a high degree of protection. The rights to a trademark can be obtained by being the first to use it.

Explain whether or not it matters that Rally is associated with pizza.

Trade name safeguard broadens to three zones; reputation, expansion, and marketing in addition to being first in the area. Because Rally is connected with Pizza and with Motors, it is not as much of a conflict as it would have been if Gabby had a used car dealership and decided to name it Rally Used Cars. For it to be protected under trade name laws, the business owner must not have a confusingly similar name to a company that was registered in the same geographic area first. Rally is associated with pizza and with motors and as a result, in the video, many customers were perplexed and were calling the car dealership and placing orders for pizza. An example of what I have stated above would be: The Gold Coffee shop a eatery/, does not conflict with The Gold Law Firm which is a legal services establishment, neither does it conflict with Gold State Farm a nursery. Nevertheless, if Purple Gold desires to open the Purple Gold Bistro, that name might be adequately puzzling to bar its use in the same area as The Gold Coffee shop. As I see it, it is not distinct and consequently can be considered as perplexing.

Explain how important the fact is that Herman started to use the name Rally first in that particular geographical area.

Forty plus years using the name protects Herman under common law, trade name protection by registration and he used it first in the area. Herman is protected under each of these laws. In practical sense, Common law suggests that whoever uses the name first, in a certain geographic location and for specific reasons will be protected. Further, registering the name with the United States Patent Office or with the county recorder protects any business owner, and states that no one in the jurisdiction in which the name is filed can use the name after the date of registration. Even if Herman never registered the name, the Common Law still protects him because he used the name Rally first.

Explain what rights you have in your trade name.

Business owners have various rights once they have their trade name. Some of these rights consist of the following: • Exclusive rights to utilize their trade name in that specific region without being a competitor with another business seeking to use and serve the same name and purpose. • Ability to market, promotes their business, and expands their business in the three zones.
Once registered, no other business can come steal the name purposely or unintentionally and in the same category. If this occurs, business owners can seek injunctive relief through the court system.

Explain what remedies you have if someone else infringes upon your trade name.

While a business fall under one of the protection categories and someone embarks upon your trade name, they can always seek injunctive relief and protection at the federal and state level. According to jrank.org (2012), both federal and state laws protect against trade name infringement. At the federal level, the Lanham Trademark Act protects trade names and at the state level; analogous intellectual property statutes and common law doctrines regulate trade names. State and Federal laws give protection against trade name infringement. Business that are seeking to avail their businesses after trade name infringement, can seek court order to restrain the other business from utilizing their trade name and/or monetary recoup for any losses the company faces because of the infringement.

To Summarize, trade name affords protection to all business owners who fall into two categories, common law, or trade name registration coverage. Both of these allow business owners to operate a business with the understanding that no other business can take their name, in the same geographic area, which protects against not only slander but also the possibility of loss profits. The video depicts that trade name infringement is a serious matter. I personally do not think business owners intentionally seek to copy a name denouncing another company.

References

Law Library. 2012, American Law and Legal Information Law Library. JRank Articles

Retrieved from http://law.jrank.org/#ixzz1p7M57sqT

U. S. Trade Law. 2012, Rules of Practice & Federal States. Retrieved from http://www.uspto.gov/trademarks/law/tmlaw.pdf

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