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B. Proper trademark usage
Trademarks
must be properly used in order to be maintained. This means that trademarks
must be used as adjectives, never as nouns, verbs, adverbs or other parts of
speech, a distinction lost on many trademark owners and their marketing
personnel. Therefore, the members of the music enterprise and, in particular,
their licensees, must all be instructed on the proper use of the trademark. In
addition, since litigating trademark rights often requires that evidence of use
of the mark be presented in a proceeding, it is imperative that records be kept
concerning use of the mark, including annual sales figures, annual advertising
figures and samples, dates of first use in countries, as well as publicity
surrounding the trademark, such as newspaper and magazine clippings. The
trademark owner, and their licensees, should retain such information for ready
access when needed.
1.
Abandonment issues
In
addition, in the overwhelming majority of countries, a registered trademark
must be used within a certain period of time following registration and use
must not be suspended for a specific period of time (usually between one and
five years, three years in the United States), failing which the registered
mark is vulnerable to cancellation on the ground of non-use, unless the non-use
was justified, such as on the ground of
force
majeure.
Potential plaintiffs must be careful because the standard of use varies
considerably in countries. In a small number of countries the mere
advertisement of a registered trademark constitutes use sufficient to withstand
an attack on the ground of non-use. Use merely for export may also qualify.
In
the United States, it has been held that a musical group that ceases performing
does not immediately abandon its trademark rights in the group name since the
name continued to be used to promote sales of existing recordings.
[9]
2.
Marking requirements
Once
a trademark is registered it is important that the trademark, when represented
in print, be used properly. The most important consideration is that the
appropriate legend be used to indicate that the mark is registered. The most
commonly used legend is the familiar letter “R” inside a circle.
In addition, “Registered in U.S. Patent and Trademark Office” or
“Reg. U.S. Pat. & Tm. Off.” may be used. Such marking provides
notice to the public that the mark is registered and entitles the trademark
owner to claim monetary damages against certain infringers. In the absence of
a federal trademark registration, it is possible to use the designation
TM
or
SM
to put third parties on notice that common law trademark or service mark
rights, respectively, which have arisen through use, are claimed. It is very
important that a trademark owner, notwithstanding aesthetic objections from
marketing personnel, ensure that appropriate markings are used on all products
on which the trademark is used. Licensees must also be held to this standard.
Use of a registered mark with respect to services may be reflected on
advertising, brochures or programs, such as by indicating a small legend to the
effect that “XYZ is a registered trademark of XYZ BAND.”
Marking
requirements also exist outside of the United States but vary from country to
country, ranging from a complete lack of marking regimes to compulsory regimes.
In some cases it is also necessary to indicate that the mark is being used by a
licensee under a license from the trademark owner.
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