The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject.(December 2010) |
Trademark infringement is a violation of the exclusive rights attached to a trademark without the authorization of the trademark owner or any licensees (provided that such authorization was within the scope of the licence). Infringement may occur when one party, the "infringer", uses a trademark which is identical or confusingly similar to a trademark owned by another party, especially in relation to products or services which are identical or similar to the products or services which the registration covers. An owner of a trademark may commence civil legal proceedings against a party which infringes its registered trademark. In the United States, the Trademark Counterfeiting Act of 1984 criminalized the intentional trade in counterfeit goods and services. [1] : 485–486
If the respective marks and products or services are entirely dissimilar, trademark infringement may still be established if the registered mark is well known pursuant to the Paris Convention. In the United States, a cause of action for use of a mark for such dissimilar services is called trademark dilution.
In some jurisdictions a party other than the owner (e.g., a licensee) may be able to pursue trademark infringement proceedings against an infringer if the owner fails to do so.
Section 32 of the Lanham Act states that those who use similar or identical trademarks, products, or services, to those already registered with the USPTO in such a way as "likely to cause confusion, . . . cause mistake, or to deceive. . . shall be liable in a civil action by the registrant . . . ." [2] Where the respective marks, products, or services are not identical, similarity will generally be assessed by reference to whether there is a likelihood of confusion that consumers will believe the products or services originated from the trademark owner. [3]
A typical likelihood of confusion test balances a variety of factors, none of which is dispositive on its own. [3] While each jurisdiction uses a slightly different test, every test considers (1) whether and to what extent the alleged infringer intended to infringe on the senior user's valid trademark rights, (2) evidence of any consumer confusion, and (3) factors that speak to the economic relationship between the consuming public and the two marks, products, or services. [3]
Circuit Court | Illustrative Cases [4] | Likelihood of Confusion Factors [4] |
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1st Circuit | Boston Athletic Ass’n v. Sullivan, 867 F.2d 22, 29-34 (1st Cir. 1989) Keds Corp. v. Renee Int’l Trading Corp., 888 F.2d 215 (1st Cir. 1989) |
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2nd Circuit | Polaroid Corp. v. Polarad Electronics Corp., 287 F.2d 492 (2d Cir. 1961), cert. denied, 368 U.S. 820 (1961) Playtex Products, Inc. v. Georgia-Pacific Corp., 390 F.3d 158 (2d Cir. 2004) |
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3rd Circuit | Interpace Corp. v. Lapp, Inc., 721 F.2d 460 (3d Cir. 1983); KOS Pharmaceuticals, Inc. v. Andrx Corp., 369 F.3d 700 (3d Cir. 2004). |
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4th Circuit | Pizzeria Uno Corp. v. Temple, 747 F.2d 1522 (4th Cir. 1984); CareFirst of Maryland, Inc. v. First Care, P.C., 434 F.3d 263 (4th Cir. 2006).
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5th Circuit | Roto-Rooter Corp. v. O’Neal, 513 F.2d 44, 45 (5th Cir. 1975); Scott Fetzer Co. v. House of Vacuums Inc., 381 F.3d 477 (5th Cir. 2004)
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6th Circuit | Frisch’s Restaurants v. Elby’s Big Boy, 670 F.2d 642 (6th Cir. 1982), cert. denied, 459 U.S. 916 (1982); AutoZone, Inc. v. Tandy Corp., 373 F.3d 786 (6th Cir. 2004) |
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7th Circuit | Helene Curtis Indus., Inc. v. Church & Dwight Co., 560 F.2d 1325, 1330 (7th Cir. 1977), cert. denied, 434 U.S. 1070 (1978); Sullivan v. CBS Corp., 385 F.3d 772 (7th Cir. 2004) |
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8th Circuit | SquirtCo v. Seven-Up Co., 628 F.2d 1086 (8th Cir. 1980); Frosty Treats Inc. v. Sony Computer Entm’t Am., Inc., 426 F.3d 1001 (8th Cir. 2005) |
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9th Circuit | AMF, Inc. v. Sleekcraft Boats, 599 F.2d 341 (9th Cir. 1979) |
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10th Circuit | Sally Beauty Co. v. Beautyco, Inc., 304 F.3d 964 (10th Cir. 2002) Australian Gold, Inc. v. Hatfield, 436 F.3d 1228 (10th Cir. 2006) |
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11th Circuit | AmBrit, Inc. v. Kraft, Inc., 812 F.2d 1531 (11th Cir. 1986) Dippin’ Dots, Inc. v. Frosty Bites Distribution, LLC, 369 F.3d 1197 (11th Cir. 2004) | |
D.C. Circuit | Partido Revolucionario Dominicano (PRD) Seccional Metropolitana de Washington-DC, Maryland y Virginia v. Partido Revolucionario Dominicano, Seccional de Maryland y Virginia, 312 F. Supp. 2d 1 (D.D.C. 2004) |
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Federal Circuit | In re E. I. Du Pont de Nemours & Co., 476 F.2d 1357 (C.C.P.A. 1973) Palm Bay Imports, Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369 (Fed. Cir. 2005) |
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The most famous of the foregoing tests is the one employed by the United States Court of Appeals for the Federal Circuit(the "DuPont" Factors). However, this is because it is the test used by USPTO when assessing the registrability of a mark upon application. [19] In any legal action for trademark infringement in the United States, the court will apply the test of the circuit in which it is located. [3]
Courts assess likelihood of confusion in various contexts, including prior to the sale (also known as initial interest confusion), at the point of sale, and post-sale. Confusion may also be direct or reverse, depending on who the senior and junior user of the marks are.
The most typical form of trademark infringement is point-of-sale confusion, which occurs when a consumer mistakenly believes that their product or service is from a company or brand in which it is not. This type of infringement involves a defendant "passing off" a good or service utilizing a trademark that belongs to the plaintiff, usually with the intent of deceiving consumers into thinking that the good or service originated with the plaintiff. [20]
For example, in McDonald’s Corp. v. Druck and Gerner, D.D.S., P.C., [21] McDonald's sued McDental, a dental services provider operated by two dentists, for trademark infringement. McDonald’s presented evidence that it owned trademark rights in a family of marks beginning with the prefix “Mc,” that there was widespread public familiarity with that family of marks, and that survey evidence established that confusion was likely to occur from the use of the McDental name. McDental’s owners denied any intention to evoke McDonald’s marks in their adoption of the McDental name, alleging that they had never perceived or heard anyone else perceive an association between the two marks. The United States District Court for the Northern District of New York found that the similarity between the McDental name and McDonald’s family of brands beginning with “Mc” was obvious. The court held that McDonald’s had shown that a likelihood of confusion existed, warranting the issuance of an injunction.
Initial interest confusion occurs when an allegedly improper use of a trademark attracts potential purchasers to consider products or services provided by the infringer (bait-and-switch). Under the Lanham Act, a plaintiff may bring a trademark infringement claim against a defendant for creating consumer confusion prior to the point of sale, even if the consumer confusion is resolved before the sale goes through. [22]
For example, in Playboy Enterprises, Inc. v. Netscape Communications Corp. , [23] Playboy sued Netscape for selling banner ads using trademarked terms "playboy" and "playmate." The United States Court of Appeals for the Ninth Circuit held that Playboy was likely to show that consumers may be attracted to competitors' products by free riding Playboy's reputation when using the trademarks "playboy" and "playmate", even if the consumers are well aware that they are not buying services from Playboy.
Post-sale confusion occurs when the use of a trademark leads individuals of the general public (other than the purchaser) to mistakenly believe that a product was manufactured by the trademark holder. Thus, for the purposes of a likelihood of confusion analysis, the relevant audience may not be the targeted purchasers at all, but rather the general public, otherwise known as the "person on the street." [24]
As articulated by the United States Court of Appeals for the Second Circuit, trademark law protects the public from incurring harms caused by post-sale confusion: "Trademark laws exists to protect the public from confusion. The creation of confusion in the post-sale context can be harmful in that if there are too many knockoffs in the market, sales of the original may decline because the public is fearful that what they are purchasing may not be an original. Furthermore, the public may be deceived in the resale market if it requires expertise to distinguish between an original and a knockoff." [25]
For example, in Ferrari S.P.A. Esercizio v. Roberts, [26] Ferrari S.P.A. Esercizio, a luxury-automobile manufacturer with a reputation for producing exclusive vehicles with distinctive designs, brought a trademark infringement suit against Carl Roberts after Roberts began manufacturing and selling kits that would allow budget-conscious car enthusiasts to copy the exterior designs of Ferrari (e.g., the Daytona Spyder, the Testarossa) onto the undercarriage of less expensive vehicles. Although Roberts has shown that confusion did not exist at the point of sale, the United States Court of Appeals for the Sixth Circuit concluded that allowing the kits to enter into commerce would dilute the Ferrari brand by diminishing the perceived exclusivity and quality that make the Daytona Spyder and Testarossa attractive to consumers. The court further held that the kits were designed to perfectly replicate the exterior of Ferrari’s vehicles, and there was a strong likelihood of post-sale customer confusion. The Sixth Circuit held that Roberts’s kits infringed upon the distinctive trade dress of Ferrari’s vehicles, and a permanent injunction against Roberts was affirmed.
Direct confusion occurs when consumers believe that the goods or services of a later (junior) trademark user come from, or are sponsored by, the prior (senior) trademark holder. In cases of direct confusion, the junior user is said to free ride on the reputation and goodwill of the senior user. Direct confusion typically occurs if the senior user is a much larger or better-known producer than the junior user.
Reverse confusion occurs if consumers incorrectly think that a later (junior) trademark user is the source of the prior (senior) trademark user’s products or services. Reverse confusion typically occurs if the junior user is a much larger or better-known producer than the senior user.
Reverse-confusion claims exist to prevent big companies from stealing marks or brands from existing, smaller companies. Factors contributing to a likelihood of reverse confusion include: (1) similarity between the senior and junior user’s marks, (2) the conceptual strength or uniqueness of the senior user’s mark and the commercial strength or public awareness of the junior user’s mark, (3) consumer attentiveness to the product, (4) the length of time junior user has used the mark without causing confusion, (5) whether the junior user intended to cause confusion, (6) evidence of actual confusion, (7) trade and advertising channels for the competing products, (8) the similarity of the manufacturers’ sales efforts, (9) the competing products’ similarity in the minds of consumers, and (10) facts suggesting that consumers would expect the junior user to manufacture both products or expand into the senior user’s market. [27]
The Supreme Court first held that liability for trademark infringement could extend beyond direct infringers in Inwood Laboratories, Inc. v. Ives Laboratories, Inc. [28] The Supreme Court articulated the following standard for contributory infringement: "If a manufacturer or distributor intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement, the manufacturer or distributor is contributorily liable for any harm as a result of the deceit." [28]
For example, in Fonovisa, Inc. v. Cherry Auction, Inc., [29] the United States Court of Appeals for the Ninth Circuit imposed secondary liability on a flea market landlord who provided the “necessary marketplace” for the sale of infringing goods. The court held that contributory trademark infringement existed because the landlord was willfully blind to its tenant’s ongoing infringement.
The party accused of infringement may be able to defeat infringement proceedings if it can establish a valid exception(e.g., comparative advertising) or defense (e.g., laches) to infringement, or attack and cancel the underlying registration (e.g., for non-use) upon which the proceedings are based. Other defenses include fraud, genericness, functionality, abandonment, or fair use.
Comparative advertising occurs when one party uses another party's trademark to refer to the trademark owner or its goods or services. The Federal Trade Commission allows comparative advertising where the bases of the comparison are truthful, non-deceptive, and clearly specified. [30] The user of the trademark cannot imply or suggest sponsorship, endorsement, or affiliation by the mark owner. If the user uses the trademark in a way that does not confuse or mislead consumers and only uses as much of the mark as necessary for identification (e.g., use of the words but not use of the same font or graphics), then this may be considered fair use. [31]
Laches is an equitable defense. The doctrine applies when a defendant affirmatively establishes: (1) knowledge by the plaintiff of facts constituting a cause of action or a reasonable opportunity to discover such facts; (2) an undue delay by the plaintiff in commencing an action; and (3) damage to the defendant resulting from the delay in bringing the action. [32]
A viable defense to trademark infringement may assert "[t]hat the registration or the incontestable right to use the mark was obtained fraudulently." [33]
A defense of fraud by the trademark owner can be raised at any time, and includes proving that: (1) the applicant made a false representation to USPTO; (2) the false representation is material to the registrability of a mark; (3) the applicant had knowledge of the falsity; and (4) the applicant made representation with the intent to deceive the USPTO.
Trademarks that evolve over time into a generic term for a class of items, rather than remaining a source-identifying distinctive term, may lose trademark status. [34] Genericide is a doctrine in which a formerly-protectable mark is held to be unprotectable because it no longer signifies the source or producer of the product (e.g., Aspirin as a product made by Bayer) but instead a category or genus of product (aspirin as pain reliever that a generic manufacturer can call their product).
A genericness argument alleges that a formerly-protectable mark has become generic in a specific market or industry as signifying not the producer but a category or genus of product.
The functionality doctrine states that functional product features cannot be trademarked. Functionality is a recognized defense to trademark infringement in U.S. law. This defense prevents trademark protection from overriding patent protection by ensuring that no mark can be registered if it is functional as a whole. [35]
For example, in Valu Engineering, Inc. v. Rexnord Corp., [36] the court decided that certain conveyor belt shapes were functional due to their increased performance over alternative designs and were therefore not eligible to be considered a trademark.
The Supreme Court has held that a product is functional if:
(1) it is essential to the use or purpose of the article, or if it affects the cost or quality of the article; [37] OR
(2) the exclusive use of the functional feature would put competitors at a significant disadvantage. [37]
Abandonment of a trademark occurs when the owner of the trademark deliberately ceases to use the trademark for three or more years, with no intention of using the trademark again in the future. When a trademark is abandoned, the trademark owner may no longer claim rights to the trademark. In effect, this frees the trademark so that anyone else can use it without recourse from the original trademark owner. [38]
The Lanham Act’s fair-use exception is an affirmative defense requiring the defendant to prove that the term was used in good faith and in a descriptive manner for a purpose other than as a mark. The Lanham Act includes a fair-use exception, under § 1115(b)(4), for trademarks that consist of descriptive words, to prevent trademark monopolies over the use of descriptive terms.
There are two types of fair use, descriptive fair use and nominative fair use.
Descriptive fair use allows a third party to use another party's descriptive trademark to describe its own product or service. [39] In order to successfully assert a fair-use defense to a trademark infringement claim, the defendant must prove the three elements of the fair-use doctrine: (1) that the term was used in a way other than as a mark; (2) that the term was used to describe the goods or services offered or their geographic origin; and (3) that the use had been undertaken in good faith. [40]
Nominative fair use allows third parties to use another party's trademark to refer to that party's actual product or service. [41] The use must not create a likelihood of confusion and cannot imply sponsorship or endorsement by the trademark owner where none exists. [42]
Injunctions are court orders commanding that the infringer immediately cease its unlawful activities. A plaintiff will be entitled to injunctive relief for trademark infringement if they show probable success on the merits and the possibility of irreparable injury. [43]
Pursuant to 15 U.S.C. § 1117(a), [44] a plaintiff can recover the infringer’s profits, any damages sustained, and the costs of the action. In assessing profits, the brand owner must prove only the gross amount of the defendant’s sales. Thereafter, the defendant has the burden of providing evidence of any amount that should be deducted.
An accounting of profits is proper in a trademark infringement case only where the defendant engages in willful infringement, meaning that the defendant attempted to exploit the value of an established name of another. [45] Alternatively, a plaintiff may recover damages incurred if they show a reasonable forecast of lost profits.
The ACTA trade agreement, signed in May 2011 by the United States, Japan, Switzerland, and the EU, requires that its parties add criminal penalties, including incarceration and fines, for copyright and trademark infringement, and obligated the parties to actively police for infringement. [46] [47] [48]
In many countries with common law, a trademark which is not registered cannot be "infringed" as such, and the trademark owner cannot bring infringement proceedings under statute. Instead, the owner may be able to commence proceedings under the common law for passing off or misrepresentation, or under more general legislation which prohibits unfair business practices. In some jurisdictions, infringement of trade dress may also be actionable.
A trademark is a word, phrase, or logo that identifies the source of goods or services. Trademark law protects a business' commercial identity or brand by discouraging other businesses from adopting a name or logo that is "confusingly similar" to an existing trademark. The goal is to allow consumers to easily identify the producers of goods and services and avoid confusion.
The Lanham (Trademark) Act (Pub. L.Tooltip Public Law 79–489, 60 Stat. 427, enacted July 5, 1946, codified at 15 U.S.C. § 1051 et seq. is the primary federal trademark statute in the United States. In other words, the Act is the primary statutory foundation of United States trademark law at the federal level. The Act prohibits a number of activities, including trademark infringement, trademark dilution, and false advertising.
Trademark dilution is a trademark law concept giving the owner of a famous trademark standing to forbid others from using that mark in a way that would lessen its uniqueness. In most cases, trademark dilution involves an unauthorized use of another's trademark on products that do not compete with, and have little connection with, those of the trademark owner. For example, a famous trademark used by one company to refer to hair care products might be diluted if another company began using a similar mark to refer to breakfast cereals or spark plugs.
The Anticybersquatting Consumer Protection Act (ACPA), 15 U.S.C. § 1125(d),(passed as part of Pub. L.Tooltip Public Law 106–113 ) is a U.S. law enacted in 1999 that established a cause of action for registering, trafficking in, or using a domain name confusingly similar to, or dilutive of, a trademark or personal name. The law was designed to thwart "cybersquatters" who register Internet domain names containing trademarks with no intention of creating a legitimate web site, but instead plan to sell the domain name to the trademark owner or a third party. Critics of the ACPA complain about the non-global scope of the Act and its potential to restrict free speech, while others dispute these complaints. Before the ACPA was enacted, trademark owners relied heavily on the Federal Trademark Dilution Act (FTDA) to sue domain name registrants. The FTDA was enacted in 1995 in part with the intent to curb domain name abuses. The legislative history of the FTDA specifically mentions that trademark dilution in domain names was a matter of Congressional concern motivating the Act. Senator Leahy stated that "it is my hope that this anti-dilution statute can help stem the use of deceptive Internet addresses taken by those who are choosing marks that are associated with the products and reputations of others".
In re Aimster Copyright Litigation, 334 F.3d 643, was a case in which the United States Court of Appeals for the Seventh Circuit addressed copyright infringement claims brought against Aimster, concluding that a preliminary injunction against the file-sharing service was appropriate because the copyright owners were likely to prevail on their claims of contributory infringement, and that the services could have non-infringing users was insufficient reason to reverse the district court's decision. The appellate court also noted that the defendant could have limited the quantity of the infringements if it had eliminated an encryption system feature, and if it had monitored the use of its systems. This made it so that the defense did not fall within the safe harbor of 17 U.S.C. § 512(i). and could not be used as an excuse to not know about the infringement. In addition, the court decided that the harm done to the plaintiff was irreparable and outweighed any harm to the defendant created by the injunction.
Nominative use, also "nominative fair use", is a legal doctrine that provides an affirmative defense to trademark infringement as enunciated by the United States Ninth Circuit, by which a person may use the trademark of another as a reference to describe the other product, or to compare it to their own. Nominative use may be considered to be either related to, or a type of "trademark fair use". All "trademark fair use" doctrines, however classified, are distinct from the fair use doctrine in copyright law. However, the fair use of a trademark may be protected under copyright laws depending on the complexity or creativity of the mark as a design logo.
Playboy Enterprises, Inc. v. Welles, 279 F.3d 796, was a ruling at the United States Court of Appeals for the Ninth Circuit. The ruling was an important early precedent on the nominative use of trademarked terms for self-identification on the World Wide Web.
In the United States, trademark law includes a fair use defense, sometimes called "trademark fair use" to distinguish it from the better-known fair use doctrine in copyright. Fair use of trademarks is more limited than that which exists in the context of copyright.
People for the Ethical Treatment of Animals v. Doughney, 263 F.3d 359, was an Internet domain trademark infringement decision by the United States Court of Appeals for the Fourth Circuit. The ruling became an early precedent on the nature of domain names as both trademarked intellectual property and free speech.
Personal jurisdiction in Internet cases refers to a growing set of judicial precedents in American courts where personal jurisdiction has been asserted upon defendants based solely on their Internet activities. Personal jurisdiction in American civil procedure law is premised on the notion that a defendant should not be subject to the decisions of a foreign or out of state court, without having "purposely availed" himself of the benefits that the forum state has to offer. Generally, the doctrine is grounded on two main principles: courts should protect defendants from the undue burden of facing litigation in an unlimited number of possibly remote jurisdictions, and courts should prevent states from infringing on the sovereignty of other states by limiting the circumstances under which defendants can be "haled" into court.
Initial interest confusion is a legal doctrine under trademark law that permits a finding of infringement when there is temporary confusion that is dispelled before the purchase is made. Generally, trademark infringement is based on the likelihood of confusion for a consumer in the marketplace. This likelihood is typically determined using a multi-factor test that includes factors like the strength of the mark and evidence of any actual confusion. However, trademark infringement that relies on Initial interest confusion does not require a likelihood of confusion at the time of sale; the mark must only capture the consumer's initial attention.
Google, Inc. v. American Blind and Wallpaper Factory, Inc., No. 5:03-cv-05340, was a decision of the United States District Court for the Northern District of California that challenged the legality of Google's AdWords program. The court concluded that, pending the outcome of a jury trial, Google AdWords may be in violation of trademark law because it (1) allowed arbitrary advertisers to key their ads to American Blind's trademarks and (2) may confuse search-engine users initially interested in visiting American Blind's website into visiting its competitors' websites.
The case Brookfield Communications, Inc. v. West Coast Entertainment Corporation, 174 F.3d 1036, heard by the United States Court of Appeals for the Ninth Circuit, established that trademark infringement could occur through the use of trademarked terms in the HTML metatags of web pages when initial interest confusion was likely to result.
Inwood Laboratories Inc. v. Ives Laboratories, Inc., 456 U.S. 844 (1982), is a United States Supreme Court case, in which the Court confirmed the application of and set out a test for contributory trademark liability under § 32 of the Lanham Act.
Playboy Enterprises, Inc. v. Netscape Communications Corp., 354 F.3d 1020 was a case regarding trademark infringement and trademark dilution decided by the United States Court of Appeals for the Ninth Circuit. The ruling addressed unauthorized use of trademarked terms when using web search data to determine the recipients of banner ads.
Network Automation, Inc. v. Advanced Systems Concepts, Inc., 638 F.3d 1137 was a court case decided on March 8, 2011, where the United States Court of Appeals for the Ninth Circuit ruled that the use of a competitor's trademark as an Internet search advertising keyword did not constitute trademark infringement. In the case, Network Automation advertised their own competing product in search queries that contained Advanced Systems Concepts' "ActiveBatch" trademark. In determining whether trademark infringement occurred, the court evaluated factors relevant to the likelihood of customer confusion outlined in AMF Inc. v. Sleekcraft Boats and concluded that confusion was unlikely.
Polaroid Corp. v. Polarad Elect. Corp. is a key United States legal case from 1961 in trademark infringement law. It is also cited in personality rights particularly around celebrities. The decision argued that trademark infringement is measured by the multi-factor "likelihood of confusion" test. That is, a new mark will infringe on an existing trademark if the new mark is so similar to the original that consumers are likely to confuse the two marks, and mistakenly purchase from the wrong company.
Rosetta Stone v. Google, 676 F.3d 144 was a decision of the United States Court of Appeals for the Fourth Circuit that challenged the legality of Google's AdWords program. The Court overturned a grant of summary judgment for Google that had held Google AdWords was not a violation of trademark law.
Copyright protection is available to the creators of a range of works including literary, musical, dramatic and artistic works. Recognition of fictional characters as works eligible for copyright protection has come about with the understanding that characters can be separated from the original works they were embodied in and acquire a new life by featuring in subsequent works.