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S.B. 218

             1     

REGISTRATION AND PROTECTION OF

             2     
TRADEMARKS

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Lyle W. Hillyard

             6      This act enacts provisions relating to the registration and protection of trademarks and
             7      repeals all former provisions. The act defines terms related to the registration and
             8      protection of trademarks. The act establishes the authority and responsibilities of the
             9      trademark administrator within the Division of Corporations and Commercial Code. The
             10      act designates the requirements for a trademark to be registrable and the requirements for
             11      application for registration. The act describes certificates of registration of trademarks. The
             12      act designates the duration of trademark registration and procedures for renewal. The act
             13      outlines the requirements for assignments of trademarks, changes of the names of
             14      trademarks, and the recordation of other instruments that relate to trademarks. The act
             15      designates that records of registered trademarks must be kept by the Utah Division of
             16      Corporations and Commercial Code. The act outlines the procedures for cancellation of a
             17      trademark. The act outlines the classification of goods and services related to the
             18      administration of the act. The act establishes liability for fraudulent registration of a
             19      trademark, infringement on a trademark, and injury to business reputation due to misuse
             20      of a trademark, and establishes remedies. The act designates the forums for actions
             21      regarding registration and the requirements for service on out-of-state registrants. The act
             22      provides it does not adversely affect common law rights. The act provides for fees. The act
             23      provides a severability clause. The act provides an effective date.
             24      This act affects sections of Utah Code Annotated 1953 as follows:
             25      ENACTS:
             26          70-3a-101, Utah Code Annotated 1953
             27          70-3a-102, Utah Code Annotated 1953


             28          70-3a-103, Utah Code Annotated 1953
             29          70-3a-104, Utah Code Annotated 1953
             30          70-3a-105, Utah Code Annotated 1953
             31          70-3a-106, Utah Code Annotated 1953
             32          70-3a-107, Utah Code Annotated 1953
             33          70-3a-108, Utah Code Annotated 1953
             34          70-3a-109, Utah Code Annotated 1953
             35          70-3a-110, Utah Code Annotated 1953
             36          70-3a-111, Utah Code Annotated 1953
             37          70-3a-112, Utah Code Annotated 1953
             38          70-3a-113, Utah Code Annotated 1953
             39          70-3a-114, Utah Code Annotated 1953
             40          70-3a-115, Utah Code Annotated 1953
             41          70-3a-116, Utah Code Annotated 1953
             42          70-3a-117, Utah Code Annotated 1953
             43          70-3a-118, Utah Code Annotated 1953
             44          70-3a-119, Utah Code Annotated 1953
             45          70-3a-120, Utah Code Annotated 1953
             46          70-3a-121, Utah Code Annotated 1953
             47      REPEALS:
             48          70-3-1, as last amended by Chapter 141, Laws of Utah 1993
             49          70-3-2, as last amended by Chapter 241, Laws of Utah 1990
             50          70-3-3, as last amended by Chapter 313, Laws of Utah 1994
             51          70-3-4, as last amended by Chapter 66, Laws of Utah 1984
             52          70-3-5, as last amended by Chapter 66, Laws of Utah 1984
             53          70-3-6, as last amended by Chapter 313, Laws of Utah 1994
             54          70-3-7, as last amended by Chapter 313, Laws of Utah 1994
             55          70-3-8, as last amended by Chapter 156, Laws of Utah 1957
             56          70-3-9, as last amended by Chapter 66, Laws of Utah 1984
             57          70-3-10, as last amended by Chapter 66, Laws of Utah 1984
             58          70-3-11, as last amended by Chapter 66, Laws of Utah 1984


             59          70-3-12, as last amended by Chapter 66, Laws of Utah 1984
             60          70-3-13, as last amended by Chapter 156, Laws of Utah 1957
             61          70-3-14, as last amended by Chapter 156, Laws of Utah 1957
             62          70-3-15, as last amended by Chapter 156, Laws of Utah 1957
             63          70-3-16, as last amended by Chapter 66, Laws of Utah 1984
             64          70-3-17, as last amended by Chapter 156, Laws of Utah 1957
             65      Be it enacted by the Legislature of the state of Utah:
             66          Section 1. Section 70-3a-101 is enacted to read:
             67     
CHAPTER 3a. REGISTRATION AND PROTECTION OF TRADEMARKS ACT

             68          70-3a-101. Title.
             69          This chapter is known as the "Registration and Protection of Trademarks Act."
             70          Section 2. Section 70-3a-102 is enacted to read:
             71          70-3a-102. Intent.
             72          The intent of this chapter is to provide a system of state trademark registration and
             73      protection substantially consistent with the federal system of trademark registration and protection
             74      under the Trademark Act of 1946, as amended, 15 U.S.C. Section 1051, et seq. (2000). To that
             75      end, the construction given the federal act should be examined as persuasive authority for
             76      interpreting and construing this chapter.
             77          Section 3. Section 70-3a-103 is enacted to read:
             78          70-3a-103. Definitions.
             79          As used in this chapter:
             80          (1) "Abandoned mark" means either of the following:
             81          (a) A mark whose use has been discontinued with no intent to resume use.
             82          (i) Intent not to resume may be inferred from circumstances.
             83          (ii) Nonuse for two consecutive years shall constitute prima facie evidence of
             84      abandonment.
             85          (b) A mark whose significance as a mark has been lost due to any course of conduct of the
             86      owner, including acts of omission and commission.
             87          (2) "Administrator" means the trademark administrator within the Division of
             88      Corporations and Commercial Code.
             89          (3) "Applicant" means the person filing an application for registration of a mark under this


             90      chapter, and the legal representatives, successors, or assigns of that person.
             91          (4) "Dilution" means the lessening of the capacity of a famous mark to identify and
             92      distinguish goods or services, regardless of the presence or absence of:
             93          (a) competition between the owner of the famous mark and other parties; or
             94          (b) the likelihood of confusion, mistake, or deception.
             95          (5) "Division" means the Division of Corporations and Commercial Code within the
             96      Department of Commerce.
             97          (6) "Juristic person" means a firm, partnership, corporation, union, association, or other
             98      organization capable of suing and being sued in a court of law.
             99          (7) "Mark" means any trademark or service mark entitled to registration under this chapter
             100      whether registered or not.
             101          (8) "Person" and any other word or term used to designate the applicant or other party
             102      entitled to a benefit or privilege or rendered liable under the provisions of this chapter means a
             103      juristic person or a natural person.
             104          (9) "Registrant" means the person to whom the registration of a mark under this chapter
             105      is issued, and the legal representatives, successors, or assigns of that person.
             106          (10) (a) "Service mark" means any word, name, symbol, or device or any combination of
             107      words, names, symbols, or devices used by a person:
             108          (i) to identify and distinguish the services of one person, including a unique service, from
             109      the services of others; and
             110          (ii) to indicate the source of the services, even if that source is unknown.
             111          (b) Titles, character names used by a person, and other distinctive features of radio or
             112      television programs may be registered as service marks notwithstanding that they, or the programs,
             113      may advertise the goods of the sponsor.
             114          (11) "Trademark" means any word, name, symbol, or device or any combination of words,
             115      names, symbols, or devices used by a person to identify and distinguish the goods of that person,
             116      including a unique product, from those manufactured or sold by others, and to indicate the source
             117      of the goods, even if that source is unknown.
             118          (12) "Trade name" means any name used by a person to identify a business or vocation of
             119      that person.
             120          (13) "Use" means the bona fide use of a mark in the ordinary course of trade, and not made


             121      merely to reserve a right in a mark. For the purposes of this chapter, a mark is considered to be
             122      in use:
             123          (a) on goods:
             124          (i) when it is placed in any manner on the goods or other containers;
             125          (ii) when it is placed in any manner on displays associated with the goods or other
             126      containers;
             127          (iii) when it is placed on the tags or labels affixed to the goods or other containers; or
             128          (iv) if the nature of the goods makes the placements referred to in Subsections (13)(a)(i)
             129      through (iii) impracticable, then on documents associated with the goods or their sale, and the
             130      goods are sold or transported in commerce in this state; and
             131          (b) on services:
             132          (i) when it is used or displayed in the sale or advertising of services; and
             133          (ii) when the services are rendered in this state.
             134          Section 4. Section 70-3a-104 is enacted to read:
             135          70-3a-104. Rulemaking authority of administrator.
             136          In accordance with this chapter, the administrator has rulemaking authority to:
             137          (1) under Subsection 70-3a-106 (1), establish filing requirements for applications for
             138      registration of a mark;
             139          (2) under Section 70-3a-107 (2), establish what information, in addition to that contained
             140      in the application, is pertinent and needed to process an application for registration under Section
             141      70-3a-106 ;
             142          (3) under Subsection 70-3a-107 (3), establish requirements for an applicant to disclaim an
             143      unregistrable component of a mark otherwise registrable;
             144          (4) under Subsection 70-3a-109 , determine the amount of renewal fees in conformance
             145      with the process established in Section 63-38-3.2 ;
             146          (5) under section 70-3a-120 , prescribe fees payable for the various application and
             147      recording fees and for related services; and
             148          (6) establish a classification of goods and services for convenience of administration of
             149      this chapter, but not to limit or extend the applicant or registrant's rights.
             150          Section 5. Section 70-3a-105 is enacted to read:
             151          70-3a-105. Registrability.


             152          A mark by which the goods or services of any applicant for registration may be
             153      distinguished from the goods or services of others may not be registered if it:
             154          (1) consists of or comprises immoral, deceptive, or scandalous matter;
             155          (2) consists of or comprises matter which may disparage or falsely suggest a connection
             156      with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt,
             157      or disrepute;
             158          (3) consists of or comprises the flag or coat of arms or other insignia of the United States,
             159      any state or municipality, any foreign nation, or any simulation thereof;
             160          (4) consists of or comprises the name, signature, or portrait identifying a particular living
             161      individual, except by the individual's written consent;
             162          (5) consists of a mark that:
             163          (a) when used on or in connection with the goods or services of the applicant, is merely
             164      descriptive or deceptively not descriptive of them;
             165          (b) when used on or in connection with the goods or services of the applicant is primarily
             166      geographically descriptive or deceptively not descriptive of them; or
             167          (c) is primarily merely a surname, provided, however, that nothing in this Subsection (5)
             168      prevents the registration of a mark used by the applicant that has become distinctive of the
             169      applicant's goods or services. The administrator may accept as evidence that the mark has become
             170      distinctive, as used on or in connection with the applicant's goods or services, proof of continuous
             171      use of the mark as a mark by the applicant in this state for the five years before the date when the
             172      claim of distinctiveness is made; or
             173          (6) consists of or comprises a mark that resembles a mark registered in this state or a mark
             174      or trade name previously used by another and not abandoned, as to be likely, when used on or in
             175      connection with the goods or services of the applicant, to cause confusion, mistake, or to deceive.
             176          Section 6. Section 70-3a-106 is enacted to read:
             177          70-3a-106. Application for registration.
             178          (1) Subject to the limitations set forth in this chapter, any person who uses a mark may file
             179      in the office of the administrator, in a manner complying with the requirements of the
             180      administrator, an application for registration of that mark including the following information:
             181          (a) (i) the name and business address of the person applying for registration;
             182          (ii) if a corporation, the state of incorporation; and


             183          (iii) if a partnership, the state where the partnership is organized and the names of the
             184      general partners, as specified by the administrator;
             185          (b) (i) the goods or services on or in connection with which the mark is used;
             186          (ii) the mode or manner in which the mark is used on or in connection with those goods
             187      or services; and
             188          (iii) the class in which those goods or services fall;
             189          (c) (i) the date when the mark was first used anywhere; and
             190          (ii) the date when the mark was first used in this state by the applicant or a predecessor in
             191      interest; and
             192          (d) a statement:
             193          (i) that the applicant is the owner of the mark;
             194          (ii) that the mark is in use; and
             195          (iii) that to the knowledge of the person verifying the application, no other person has
             196      registered, either federally or in this state, or has the right to use that mark either in the mark's
             197      identical form or in such near resemblance to the mark as to be likely, when applied to the goods
             198      or services of the other person, to cause confusion, mistake, or to deceive.
             199          (2) The administrator may also require a statement as to whether an application to register
             200      the mark, or portions or a composite of the mark, has been filed by the applicant or a predecessor
             201      in interest in the United States Patent and Trademark Office. If so, the applicant shall provide full
             202      particulars with respect to the additional application including:
             203          (a) the filing date and serial number of each application;
             204          (b) the status of the application; and
             205          (c) if any application was finally refused registration or has otherwise not resulted in a
             206      registration, the reasons for the refusal or lack of registration.
             207          (3) The administrator may also require that a drawing of the mark, complying with the
             208      requirements the administrator may specify, accompany the application.
             209          (4) The application shall be signed and verified by oath by the applicant or by a member
             210      of the firm or an officer of the corporation or association applying.
             211          (5) The application shall be accompanied by three specimens showing the mark as actually
             212      used.
             213          (6) The application shall be accompanied by an application fee payable to the Division of


             214      Corporations and Commercial Code as determined by the division in conformance with the process
             215      established in Section 63-38-3.2 .
             216          Section 7. Section 70-3a-107 is enacted to read:
             217          70-3a-107. Filing of applications.
             218          (1) Upon the filing of an application for registration under Section 70-3a-106 and payment
             219      of the application fee under Subsection 70-3a-106 (6), the administrator shall examine the
             220      application for conformity with this chapter.
             221          (2) The applicant shall provide any additional pertinent information requested by the
             222      administrator, including a description of a design mark, and may make, or authorize the
             223      administrator to make, amendments to the application as may be reasonably requested by the
             224      administrator or considered by the applicant to be advisable to respond to any rejection or
             225      objection.
             226          (3) The administrator may require the applicant to disclaim an unregistrable component
             227      of a mark otherwise registrable, and an applicant may voluntarily disclaim a component of a mark
             228      sought to be registered. A disclaimer may not prejudice or affect the applicant or registrant's rights
             229      then existing or thereafter arising in the disclaimed matter, or the applicant or registrant's rights
             230      of registration on another application if the disclaimed matter is or has become distinctive of the
             231      applicant or registrant's goods or services.
             232          (4) Amendments may be made by the administrator upon the application submitted by the
             233      applicant upon the applicant agreement or a new application may be required to be submitted.
             234          (5) If the administrator determines that the applicant is not qualified to register a mark, the
             235      administrator shall advise the applicant of the refusal and of the reasons for the refusal. The
             236      applicant shall have a reasonable period of time specified by the administrator to reply or to amend
             237      the application for reexamination. This procedure may be repeated until:
             238          (a) the administrator finally refuses registration of the mark; or
             239          (b) the applicant fails to reply or amend within the specified period, in which case the
             240      application shall be considered abandoned.
             241          (6) If the administrator finally refuses registration of the mark, the applicant may request
             242      an agency review through the executive director of the division. The writ may be granted, without
             243      costs to the administrator, on proof that all the statements in the application are true and that the
             244      mark is otherwise entitled to registration.


             245          (7) If applications are concurrently being processed by the administrator seeking
             246      registration of the same or confusingly similar marks for the same or related goods or services, the
             247      administrator shall grant priority to the applications in order of filing. If a prior-filed application
             248      is granted a registration, the other application or applications shall then be rejected. Any rejected
             249      applicant may bring an action for cancellation of the registration upon grounds of prior or superior
             250      rights to the mark.
             251          Section 8. Section 70-3a-108 is enacted to read:
             252          70-3a-108. Certificate of registration.
             253          (1) If an applicant fully complies with the requirements of this chapter, the administrator
             254      shall issue a certificate of registration to the applicant.
             255          (2) The certificate of registration under Subsection (1) shall be issued under the signature
             256      of the administrator and the seal of the state, and shall show:
             257          (a) (i) the name and business address;
             258          (ii) if a corporation, the state of incorporation;
             259          (iii) if a partnership, the state in which the partnership is organized; and
             260          (iv) the names of the general partners, as specified by the administrator, of the person
             261      claiming ownership of the mark;
             262          (b) the date claimed for the first use of the mark anywhere;
             263          (c) the date claimed for the first use of the mark in this state;
             264          (d) the class of goods or services;
             265          (e) a description of the goods or services on or in connection with which the mark is used;
             266          (f) a reproduction of the mark;
             267          (g) the registration date; and
             268          (h) the term of the registration.
             269          (3) Any certificate of registration issued by the administrator under the provisions of this
             270      section or a copy of that certificate duly certified by the administrator is admissible in evidence as
             271      competent and sufficient proof of the registration of the particular mark in any actions or judicial
             272      proceedings in any court of this state.    
             273          Section 9. Section 70-3a-109 is enacted to read:
             274          70-3a-109. Duration and renewal.
             275          (1) The registration of a mark under this chapter is effective for a term of five years after


             276      the date of registration.
             277          (2) The registration may be renewed for an additional five-year term from the end of the
             278      expiring term upon application filed within six months prior to the expiration of the initial
             279      five-year term, in a manner complying with the requirements of the administrator. A renewal fee,
             280      payable to the Division of Corporations and Commercial Code and determined by the division in
             281      conformance with the process established in Section 63-38-3.2 , shall accompany the application
             282      for renewal of the registration. In the same manner, a registration may be renewed for successive
             283      periods of five years.
             284          (3) Any registration in force before April 30, 2001, shall continue in full force and effect
             285      for the registration's unexpired term. The registration may be renewed by filing an application for
             286      renewal with the administrator in compliance with the requirements of the administrator, and
             287      paying the required renewal fee within six months before the expiration of the registration.
             288          (4) All applications for renewal under this chapter, whether of registrations made under
             289      this chapter or of registrations effected under any prior act, shall include:
             290          (a) a verified statement that the mark has been and is still in use; and
             291          (b) a specimen showing actual use of the mark on or in connection with the goods or
             292      services.
             293          Section 10. Section 70-3a-110 is enacted to read:
             294          70-3a-110. Assignments -- Changes of name -- Other instruments.
             295          (1) (a) Any mark and its registration under this chapter is assignable with the good will of
             296      the business in which the mark is used, or with that part of the good will of the business connected
             297      with the use of and symbolized by the mark.
             298          (b) Assignments must be in writing, duly executed, and may be recorded with the
             299      administrator upon the payment of a recording fee payable to the Division of Corporations and
             300      Commercial Code and determined by the division in conformance with the process established in
             301      Section 63-38-3.2 .
             302          (c) Upon recording of an assignment, the administrator shall issue in the name of the
             303      assignee a new certificate for the remainder of the term of the registration or of the last renewal
             304      of the registration.
             305          (d) An assignment of any registration under this chapter is void as against any subsequent
             306      purchaser for valuable consideration without notice, unless the assignment is recorded with the


             307      administrator within three months after the date of the assignment or prior to the subsequent
             308      purchase.
             309          (2) (a) Any registrant or applicant effecting a change of the name of the person to whom
             310      the mark was issued or for whom an application was filed may record a certificate of change of
             311      name of the registrant or applicant with the administrator upon the payment of a recording fee.
             312          (b) The administrator may issue, in the name of the assignee, a certificate of registration
             313      of an assigned application.
             314          (c) The administrator may issue, in the name of the assignee, a new certificate or
             315      registration for the remainder of the term of the registration or last renewal of the registration.
             316          (3) Other instruments that relate to a mark registered or application pending under this
             317      chapter, such as licenses, security interests, or mortgages, may be recorded in the discretion of the
             318      administrator, provided that the instrument is in writing and duly executed.
             319          (4) Acknowledgment is prima facie evidence of the execution of an assignment or other
             320      instrument and, when recorded by the administrator, the record is prima facie evidence of
             321      execution.
             322          (5) A photocopy of any instrument referred to in Subsections (1) through (3) shall be
             323      accepted for recording if it is certified by any of the parties to the instrument, or their successors,
             324      to be a true and correct copy of the original.
             325          Section 11. Section 70-3a-111 is enacted to read:
             326          70-3a-111. Records.
             327          The administrator shall keep for public examination a record of all marks registered or
             328      renewed under this chapter, and a record of all documents recorded under Section 70-3a-110 .
             329          Section 12. Section 70-3a-112 is enacted to read:
             330          70-3a-112. Cancellation.
             331          The administrator shall cancel from the register, in whole or in part:
             332          (1) any registration for which the administrator receives a voluntary request for the
             333      registration's cancellation from the registrant or the assignee of record;
             334          (2) all registrations granted under this chapter and not renewed in accordance with the
             335      chapter's provisions;
             336          (3) any registration for which a court of competent jurisdiction finds that:
             337          (a) the registered mark has been abandoned;


             338          (b) the registrant is not the owner of the mark;
             339          (c) the registration was granted improperly;
             340          (d) the registration was obtained fraudulently;
             341          (e) the mark is or has become the generic name for the goods or services, or a portion of
             342      the goods or services, for which the mark has been registered; or
             343          (f) the registered mark is so similar, as to be likely to cause confusion, mistake, or to
             344      deceive, to a mark registered by another person in the United States Patent and Trademark Office
             345      prior to the date of the filing of the application for registration by the registrant, and not
             346      abandoned; provided, however, that, if the registrant proves the registrant is the owner of a
             347      concurrent registration of a mark in the United States Patent and Trademark Office covering an
             348      area including this state, the registration under this chapter may not be cancelled for that particular
             349      area of the state; or
             350          (4) when a court of competent jurisdiction orders cancellation of a registration on any
             351      ground.
             352          Section 13. Section 70-3a-113 is enacted to read:
             353          70-3a-113. Classification.
             354          (1) Under 70-3a-104 (6), the administrator shall establish by rule a classification of goods
             355      and services for convenience of administration of this chapter.
             356          (2) A single application for registration of a mark may include any or all goods upon
             357      which, or services with which, the mark is actually being used indicating the appropriate class or
             358      classes of goods or services.
             359          (3) When a single application includes goods or services that fall within multiple classes,
             360      the administrator may require payment of a fee for each class.
             361          (4) To the extent practical, the classification of goods and services should conform to the
             362      classification adopted by the United States Patent and Trademark Office.
             363          Section 14. Section 70-3a-114 is enacted to read:
             364          70-3a-114. Fraudulent registration.
             365          Any person who procures for himself, or on behalf of any other person, the filing or
             366      registration of any mark in the office of the administrator under the provisions of this chapter, by
             367      knowingly making any false or fraudulent representation or declaration, orally or in writing, or by
             368      any other fraudulent means, is civilly liable to pay all damages sustained in consequence of the


             369      filing or registration, to be recovered by or on behalf of the party injured by the registration in any
             370      court of competent jurisdiction.
             371          Section 15. Section 70-3a-115 is enacted to read:
             372          70-3a-115. Infringement.
             373          (1) Subject to the provisions of Section 70-3a-119 , any person is liable in a civil action
             374      brought by the registrant for any and all of the remedies provided in Section 70-3a-117 , subject to
             375      Subsection (2), if that person:
             376          (a) uses, without the consent of the registrant, any reproduction, counterfeit, copy, or
             377      colorable imitation of a mark registered under this chapter in connection with the sale, distribution,
             378      offering for sale, or advertising of any goods or services on or in connection with which that use
             379      is likely to cause confusion, mistake, or to deceive as to the source of origin of those goods or
             380      services; or
             381          (b) reproduces, counterfeits, copies or colorably imitates any mark and applies the
             382      reproduction, counterfeit, copy or colorable imitation to labels, signs, prints, packages, wrappers,
             383      receptacles, or advertisements intended to be used upon or in connection with the sale or other
             384      distribution in this state of goods or services.
             385          (2) Under Subsection (1)(b), the registrant is not entitled to recover profits or damages
             386      unless the act has been committed with the intent to cause confusion, mistake, or to deceive.
             387          Section 16. Section 70-3a-116 is enacted to read:
             388          70-3a-116. Injury to business reputation -- Dilution.
             389          (1) The owner of a mark that is famous in this state is entitled, subject to the principles of
             390      equity and upon such terms as the court seems reasonable, to an injunction against another person's
             391      commercial use of a mark or trade name, if the use begins after the mark has become famous and
             392      causes dilution of the distinctive quality of the mark, and to obtain other relief as is provided in
             393      this section.
             394          (2) To determine if a mark is famous, a court may consider factors including:
             395          (a) the degree of inherent or acquired distinctiveness of the mark in this state;
             396          (b) the duration and extent of use of the mark in connection with the goods and services
             397      with which the mark is used;
             398          (c) the duration and extent of advertising and publicity of the mark in this state;
             399          (d) the geographical extent of the trading area in which the mark is used;


             400          (e) the channels of trade for the goods or services with which the mark is used;
             401          (f) the degree of recognition of the mark in the trading areas and channels of trade in this
             402      state used by the mark's owner and the person against whom the injunction is sought;
             403          (g) the nature and extent of use of the same or similar mark by third parties; and
             404          (h) whether the mark is the subject of a state registration in this state, or a federal
             405      registration under the Act of March 3, 1881, c. 138, 21 Stat. 502, or under the Act of February 20,
             406      1905, c. 592, 33 Stat. 724, or on the principal register.
             407          (3) In an action brought under this section, the owner of a famous mark is entitled only to
             408      injunctive relief in this state, unless the person against whom the injunctive relief is sought
             409      willfully intended to:
             410          (a) trade on the owner's reputation; or
             411          (b) cause dilution of the famous mark.
             412          (4) If willful intent is proven under either Subsection (3)(a) or (b), the owner is also
             413      entitled to the remedies set forth in Section 70-3a-117 , subject to the discretion of the court and
             414      the principles of equity.
             415          (5) The following are not actionable under this section:
             416          (a) fair use of a famous mark by another person in comparative commercial advertising
             417      or promotion to identify the competing goods or services of the owner of the famous mark;
             418          (b) noncommercial use of the mark; and
             419          (c) all forms of news reporting and news commentary.
             420          Section 17. Section 70-3a-117 is enacted to read:
             421          70-3a-117. Remedies.
             422          (1) Any owner of a mark registered under this chapter may proceed by suit to enjoin the
             423      manufacture, use, display, or sale of any counterfeits or imitations of the mark and any court of
             424      competent jurisdiction may grant injunctions to restrain the manufacture, use, display, or sale as
             425      may be considered by the court just and reasonable.
             426          (2) A court may require the defendants to pay the owner all profits derived from the
             427      wrongful manufacture, use, display, or sale of a registered mark or all damages suffered because
             428      of the wrongful manufacture, use, display, or sale of a registered mark.
             429          (3) A court may also order that any counterfeits or imitations of a registered mark in the
             430      possession or under the control of any defendant in an action be delivered to an officer of the court,


             431      or to the complainant, to be destroyed.
             432          (4) A court may enter judgment for an amount not to exceed three times the profits and
             433      damages or reasonable attorneys' fees, or both, of the prevailing party in actions where the court
             434      finds the other party committed the wrongful acts with knowledge, in bad faith, or otherwise as
             435      according to the circumstances of the case.
             436          (5) The enumeration of any right or remedy in this section does not affect a registrant's
             437      right to prosecute under any penal law of this state.
             438          Section 18. Section 70-3a-118 is enacted to read:
             439          70-3a-118. Forum for actions regarding registration -- Service on out-of-state
             440      registrants.
             441          (1) Actions requiring cancellation of a mark registered under this chapter shall be brought
             442      in a district court.
             443          (a) In an action for cancellation, the administrator may not be made a party to the
             444      proceeding but shall be notified of the filing of the complaint by the clerk of the court in which the
             445      complaint is filed and shall be given the right to intervene in the action.
             446          (b) In an action in mandamus, the proceeding shall be based solely upon the record before
             447      the administrator.
             448          (2) In any action brought against a nonresident registrant, service may be effected upon
             449      the nonresident registrant in accordance with the procedures established for service upon
             450      nonresident corporations and business entities under Section 16-10a-1511 .
             451          Section 19. Section 70-3a-119 is enacted to read:
             452          70-3a-119. Common law rights.
             453          Nothing in this chapter shall adversely affect the rights or the enforcement of rights in
             454      marks acquired in good faith at any time at common law.
             455          Section 20. Section 70-3a-120 is enacted to read:
             456          70-3a-120. Fees.
             457          The administrator shall, in conformance with the process established in Section 63-38-3.2 ,
             458      prescribe the fees payable for the various applications and recording fees and for related services.
             459      Unless specified by the administrator, the fees payable under this chapter are not refundable.
             460          Section 21. Section 70-3a-121 is enacted to read:
             461          70-3a-121. Severability.


             462          If any provision of this chapter, or the application of any provision of this chapter, to any
             463      person or circumstance is held invalid, the remainder of this chapter shall not be affected by that
             464      holding.
             465          Section 22. Repealer.
             466          This act repeals:
             467          Section 70-3-1, Definitions.
             468          Section 70-3-2, When trademark or service mark not to be registered.
             469          Section 70-3-3, Application for registration of trademark or service mark -- Contents
             470      -- Fee.
             471          Section 70-3-4, Certification of registration -- Issuance -- Contents.
             472          Section 70-3-5, Certificate of registration or copy -- Admissibility as evidence.
             473          Section 70-3-6, Term of registration -- Renewal -- Renewal fee -- Notification of
             474      necessity of renewal.
             475          Section 70-3-7, Assignment -- Recording -- Fee -- Effect of recording.
             476          Section 70-3-8, Accepting or requiring security for return of container bearing
             477      trademark or service mark.
             478          Section 70-3-9, Public record.
             479          Section 70-3-10, Cancellation of registration.
             480          Section 70-3-11, Classes of goods.
             481          Section 70-3-12, False or fraudulent representation or declaration in registration --
             482      Liability for damages.
             483          Section 70-3-13, Damages for unlawful use or copying.
             484          Section 70-3-14, Injunctive relief.
             485          Section 70-3-15, Common-law trademarks or service marks.
             486          Section 70-3-16, Effect on trademarks or service marks now on file.
             487          Section 70-3-17, Act not to affect pending actions.
             488          Section 23. Effective date.
             489          This act takes effect April 30, 2001, but is not intended to affect any suit, proceeding, or
             490      appeal then pending.





Legislative Review Note
    as of 2-19-01 4:08 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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