Legal updates and opinions
News / News
Trade Marks: USA and Consent Agreements
Anyone who has a commercial presence in the USA or intends entering the US market will know that the United States Trade Mark Office (“USPTO”) is strict when examining US trade mark applications for acceptance. Identical marks or marks that the USPTO considers confusingly similar to a later filed trade mark usually results in the USPTO provisionally refusing that application. This includes marks in classes that the USPTO considers “cross classes” such as class 32 (non-alcoholic beverages and beer) and class 33 (alcoholic beverages).
If circumstances allow, these likelihood of confusion refusals may be overcome by filing representations, though, more often than not the USPTO will only accept a consent agreement in writing wherein the owner of the earlier mark consents to the use and registration of the later application.
Agreements with one party simply consenting to the use and registration of another’s mark are acceptable in many jurisdictions. However, the USPTO requires certain additional criteria to be met for a consent agreement to be acceptable, not merely a “naked consent agreeement”, which goes no further than mutual agreement to the use and registration of the respective marks.
In re American Cruises Lines Inc – before the USA Trade Mark Trial and Appeal Board (“TTAB”), the matter concerned the refusal of the word mark AMERICAN CONSTELLATION for cruise ship services due to a likelihood of confusion with the prior word marks CELEBRITY CONSTELLATION and CONSTELLATION.
The TTAB held that while a ‘provision in the consent agreement that the parties agree to make efforts to prevent confusion or to co-operate and take steps to avoid confusion is persuasive’, such an inclusion is not essential. What should be apparent is that the ‘competitors have clearly thought out their commercial interests’ by describing their undertakings so as to avoid and prevent confusion in the future.
It can be frustrating, expensive and time consuming to revise a consent agreement, which is refused by the USPTO. What this TTAB opinion seems to suggest is that trade mark consent agreements require carefully considered mutual undertakings, ultimately removing or reducing any likelihood of confusion in the future.
USA consent agreements are confidential and not on public record, therefore the terms to which the parties have agreed are not available for comment. Given that both marks incorporate the same word “Constellation” and are in relation to cruise ships, it is not surprising that the USPTO required carefully considered terms for these respective marks to co-exist in future.
Also read about trade marks in the UK.
If you would like to learn more about Intellectual Property please visit our practice area page.
Latest News
As little as possible infringement? Is this the case when thinking about the right to privacy in South Africa?
by Ahmore Burger-Smidt, Director and Head of the Data Privacy practice A year back there would have been a massive [...]
Some more exemptions from Competition Law during the pandemic
Competition Law during the pandemic We have previously reported on the various block exemptions issued by the Minister of Trade, [...]
New directions, regulations and a Labour Court judgment bring clarity to the mining industry
by Chris Stevens, Director and Head of the Mining, Environmental & Resources practice; Kathleen Louw, Director; Bronwyn Parker, Senior Associate; [...]
The impact of COVID-19 on the use of common areas
by Fátima Rodrigues, Director and Head of the Property Law & Real Estate practice (Johannesburg) and Yatheen Ramnath, Candidate Attorney [...]
Cancellations and postponements of dividends
by Kevin Trudgeon, Director; Brian Price, Director; and Raquel Goncalves, Candidate Attorney The COVID-19 outbreak, the subsequent lockdown and other [...]
A jack of all trades or jacking the trades of others: A case of having your fingers burnt in too many pies
National Union of Metal Workers Of South Africa V Lufil Packaging (Isithebe) (A Division Of Bidvest Paperplus (Pty) Limited) (Unreported) [...]


