Enterprise Rent-A-Car Company v. Advantage Rent-A-Car, Inc.

330 F.3d 1333, 2003 WL 21242567
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 9, 2003
Docket02-1444
StatusPublished
Cited by8 cases

This text of 330 F.3d 1333 (Enterprise Rent-A-Car Company v. Advantage Rent-A-Car, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Enterprise Rent-A-Car Company v. Advantage Rent-A-Car, Inc., 330 F.3d 1333, 2003 WL 21242567 (Fed. Cir. 2003).

Opinion

DYK, Circuit Judge.

Under the Trademark Amendments Act of 1999 § 2(b), 15 U.S.C. § 1063(a), and the Federal Trademark Dilution Act of 1995 § 3,15 U.S.C. § 1125(c), the owner of a famous mark can oppose the registration of a diluting mark without establishing likelihood of confusion. This case presents the question whether such an opposition can be maintained when the applicant’s mark was used in a limited geographic area before the opposer’s mark became famous. This case also requires us to decide whether an opposition under 15 U.S.C. § 1063(a) can be based on claims of trademark dilution under state dilution statutes. We conclude that the owner of a famous mark cannot oppose registration based on dilution where its mark did not *1335 achieve fame prior to the applicant’s prior use in a limited geographic area, and that a trademark holder cannot oppose registration based on claims of dilution under state law. We therefore affirm the decision of the United States Patent and Trademark Office, Trademark Trial and Appeal Board (“the Board”) dismissing the opposition with prejudice.

BACKGROUND

This ease requires us to construe for the first time the Federal Trademark Dilution Act of 1995, 15 U.S.C. §§ 1125(c), 1127 (2000) (“FTDA”), which creates a federal cause of action for trademark dilution, and a related provision, the Trademark Amendments Act of 1999, Pub. L. No. 106-43, 113 Stat. 218 (codified in scattered sections of 15 U.S.C.), which, inter alia, requires the Board to consider dilution under the FTDA as a ground for opposition to trademark registration.

The FTDA provides a federal cause of action for owners of “famous” trademarks, allowing them to enjoin diluting uses, and in some cases, to recover monetary damages. The Act provides:

[t]he owner of a famous mark shall be entitled, subject to the principles of equity and upon such terms as the court deems reasonable, to an injunction against another person’s commercial use in commerce of a mark or trade name, if such use begins after the mark has become famous and causes dilution of the distinctive quality of the mark, and to obtain such other relief as is provided in this subsection.

15 U.S.C. § 1125(c)(1) (2000) (emphasis added). 1 Thus, in order to secure relief, the owner of a famous mark must establish that the allegedly diluting use began “after the mark ha[d] become famous.” The Act provides a list of non-exclusive factors that a court is to consider in determining whether a mark is “famous” and, therefore, qualifies for protection under the statute:

In determining whether a mark is distinctive and famous, a court may consider factors such as, but not limited to—
(A) the degree of inherent or acquired distinctiveness of the mark;
(B) the duration and extent of use of the mark in connection with the goods or services with which the mark is used;
(C) the duration and extent of advertising and publicity of the mark;
(D) the geographical extent of the trading area in which the mark is used;
(E) the channels of trade for the goods or services with which the mark is used;
(F) the degree of recognition of the mark in the trading areas and channels of trade used by the mark’s owner and the person against whom the injunction is sought;
(G) the nature and extent of use of the same or similar marks by third parties; and
(H) whether the mark was registered under the Act of March 3, 1881, or the Act of February 20, 1905, or on the principal register.

Id. § 1125(c)(1).

In 1999, Congress amended the Lanham Act to add dilution under section 1125(c) as *1336 a ground for opposition to federal trademark registration. See Trademark Amendments Act of 1999, § 2(b), 113 Stat. 217, 218. The opposition statute now provides, in pertinent part, “[a]ny person who believes that he would be damaged by the registration of a mark upon the principal register, including as a result of dilution under section 1125(c) of this title, may ... file an opposition in the Patent and Trademark Office.” 15 U.S.C. § 1063(a) (2000) (emphasis added).

The allegedly diluting use in this case began in 1990, when the appellee (the applicant for registration), Advantage Rent-A-Car, Inc. (“Advantage”), produced a television commercial for its car-rental service that used the phrase “We’ll Even Pick You Up.” The commercial was broadcast in the San Antonio, Texas, area approximately 100 times between 1992 and 1995. From August 1997, to April 1998, the commercial was broadcast an additional 289 times in Arkansas, Louisiana, New Mexico, and Texas.

The appellant (the party opposing registration), Enterprise Renb-A-Car Co. (“Enterprise”), did not begin using the phrases “Pick the Company that Picks You Up” and “Pick Enterprise, We’ll Pick You Up” in national advertising until 1994, after Advantage’s prior use in San Antonio, Texas. On January 16, 1996, Enterprise obtained federal registration for the mark “PICK ENTERPRISE, WE’LL PICK YOU UP,” U.S. Trademark Reg. No. 1,948,828; on January 30, 1996, for the mark “PICK THE COMPANY THAT PICKS YOU UP,” U.S. Trademark Reg. No. 1,953,083; and on August 5, 1997, for the mark “WE’LL PICK YOU UP,” U.S. Trademark Reg. No. 2,085,472, as service marks in connection with the rental and leasing of vehicles.

On June 16, 1998, Advantage filed suit against Enterprise in the United States District Court for the Western District of Texas alleging unfair competition in violation of 15 U.S.C. § 1125(a) and under the common law of Texas and seeking cancellation of Enterprise’s mark under 15 U.S.C. § 1119. Enterprise, inter alia, counterclaimed for unfair competition under state and federal law and for trademark dilution under federal and state law.

While the case was pending in the district court, on May 4, 1999, Advantage filed for federal registration of its mark, “We’ll Even Pick You Up,” as a service mark in connection with the rental and leasing of vehicles. U.S. Trademark Application Ser. No. 75-697875.

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Bluebook (online)
330 F.3d 1333, 2003 WL 21242567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/enterprise-rent-a-car-company-v-advantage-rent-a-car-inc-cafc-2003.