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[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 236

This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 21, 2007 at 8:40 AM by rday. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Thu, Feb 22, 2007 at 5:21 PM by rday. -->              1     

TRADEMARK PROTECTION ACT

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dan R. Eastman

             5     
House Sponsor: David Clark

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill establishes a new type of mark, called an electronic registration mark, that may
             10      not be used to trigger advertising for a competitor and creates a database for use in
             11      administering marks.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    addresses the fees for an electronic registration mark;
             16          .    prohibits the use of a registered electronic registration mark to trigger advertising
             17      for a business, goods, or services of the same class as those represented by the
             18      electronic registration mark;
             19          .    provides for the creation and maintenance of a database of marks, including:
             20              .    search functions; and
             21              .    management of electronic registration marks;
             22          .    provides for the use of excess funds to promote business-related activity; and
             23          .    makes technical changes.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None



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             28
     Utah Code Sections Affected:
             29      AMENDS:
             30          70-3a-103, as enacted by Chapter 318, Laws of Utah 2002
             31          70-3a-203, as enacted by Chapter 318, Laws of Utah 2002
             32          70-3a-302, as enacted by Chapter 318, Laws of Utah 2002
             33          70-3a-304, as enacted by Chapter 318, Laws of Utah 2002
             34          70-3a-305, as enacted by Chapter 318, Laws of Utah 2002
             35          70-3a-306, as enacted by Chapter 318, Laws of Utah 2002
             36          70-3a-402, as enacted by Chapter 318, Laws of Utah 2002
             37      ENACTS:
             38          70-3a-501, Utah Code Annotated 1953
             39          70-3a-502, Utah Code Annotated 1953
             40     

             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 70-3a-103 is amended to read:
             43           70-3a-103. Definitions -- Use -- Service marks.
             44          (1) As used in this chapter:
             45          (a) "Abandoned mark" means a mark whose:
             46          (i) use has been discontinued with no intent to resume use; or
             47          (ii) significance as a mark has been lost due to any course of conduct of the owner,
             48      including acts of omission or commission.
             49          (b) "Applicant" means:
             50          (i) the person filing an application for registration of a mark under this chapter; and
             51          (ii) a legal representative, successor, or assign of a person described in Subsection
             52      (1)(b)(i).
             53          (c) "Dilution" means the lessening of the capacity of a famous mark to identify and
             54      distinguish goods or services, regardless of the presence or absence of:
             55          (i) competition between the owner of the famous mark and another person; or
             56          (ii) the likelihood of:
             57          (A) confusion;
             58          (B) mistake; or



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             59
         (C) deception.
             60          (d) "Division" means the Division of Corporations and Commercial Code within the
             61      Department of Commerce.
             62          (e) (i) If the conditions of Subsection (1)(e)(ii) are met, "electronic registration mark"
             63      means a word, term, or name that represents a business, goods, or a service.
             64          (ii) The mark described in Subsection (1)(e)(i) is an electronic registration mark only if
             65      it is:
             66          (A) registered through the system described in Section 70-3a-501 ; and
             67          (B) used by a person to identify and distinguish a business, goods, or a service of that
             68      person from a business, product, or service of another person.
             69          [(e)] (f) "Mark" means any trademark [or], service mark, or electronic registration mark
             70      entitled to registration under this chapter whether or not the trademark [or], service mark, or
             71      electronic registration mark is registered.
             72          [(f)] (g) "Registrant" means:
             73          (i) the person to whom the registration of a mark under this chapter is issued; and
             74          (ii) a legal representative, successor, or assign of a person described in Subsection
             75      (1)[(f)](g)(i).
             76          [(g)] (h) (i) If the conditions of Subsection (1)[(g)](h)(ii) are met, "service mark"
             77      means:
             78          (A) a word, term, name, symbol, design, or device; or
             79          (B) any combination of words, terms, names, symbols, designs, or devices.
             80          (ii) The mark described in Subsection (1)[(g)](h)(i) is a service mark only if it is used
             81      by a person:
             82          (A) to identify and distinguish the services of one person from the services of others,
             83      including a unique service; and
             84          (B) to indicate the source of the services, even if that source is unknown.
             85          [(h)] (i) (i) If the conditions of Subsection (1)[(h)](i)(ii) are met, "trademark" means:
             86          (A) a word, term, name, symbol, design, or device; or
             87          (B) any combination of words, terms, names, symbols, designs, or devices.
             88          (ii) The mark described in Subsection (1)[(h)](i)(i) is a trademark only if it is used by a
             89      person:



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             90
         (A) to identify and distinguish the goods of that person from those manufactured or
             91      sold by others, including a unique product; and
             92          (B) to indicate the source of the goods, even if that source is unknown.
             93          [(i)] (j) "Trade name" means any name used by a person to identify a business or
             94      vocation of that person.
             95          [(j)] (k) "Use" means the bona fide use of a mark in the ordinary course of trade, and
             96      not made merely to reserve a right in a mark.
             97          (2) For the purposes of this chapter, a mark is considered to be in use:
             98          (a) on goods:
             99          (i) when the mark is placed:
             100          (A) in any manner on the goods or other containers;
             101          (B) in any manner on displays associated with the goods or other containers;
             102          (C) on the tags or labels affixed to the goods or other containers; or
             103          (D) if the nature of the goods makes the placements referred to in Subsections
             104      (2)(a)(i)(A) through (C) impracticable, on documents associated with the goods or the sale of
             105      the goods; and
             106          (ii) the goods are sold or transported in commerce in this state; and
             107          (b) on services:
             108          (i) when it is used or displayed in the sale or advertising of services; and
             109          (ii) when the services are rendered in this state.
             110          (3) For purposes of Subsection (1)(a):
             111          (a) intent not to resume may be inferred from circumstances; and
             112          (b) nonuse for two consecutive years is prima facie evidence of abandonment.
             113          (4) Notwithstanding Subsection (1)[(g)](h), the following may be registered as service
             114      marks notwithstanding that they may advertise the goods of the sponsor:
             115          (a) titles;
             116          (b) character names used by a person; and
             117          (c) other distinctive features of:
             118          (i) a radio program;
             119          (ii) a television program; or
             120          (iii) a program similar to a program described in Subsection (4)(c)(i) or (ii).



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             121
         Section 2. Section 70-3a-203 is amended to read:
             122           70-3a-203. Fees.
             123          (1) (a) A regulatory fee, as defined in Section 63-38-3.2 , shall be determined by the
             124      division in accordance with Section 63-38-3.2 , but may not exceed $250 annually for
             125      registration of an electronic registration mark in a single class.
             126          (b) A person who pays the annual regulatory fee for the registration of an electronic
             127      registration mark may register additional classes for the same mark for an additional fee not to
             128      exceed $25 annually.
             129          (2) (a) For a fee authorized by this chapter that is not a regulatory fee, the division may
             130      adopt a schedule of fees provided that each fee in the schedule of fees is:
             131          (i) reasonable and fair; and
             132          (ii) submitted to the Legislature as part of the Department of Commerce's annual
             133      appropriations request.
             134          (b) When a fee schedule described in Subsection (2)(a) is submitted as part of the
             135      annual appropriations request, the Legislature, in a manner substantially similar to Section
             136      63-38-3.2 , may for any fee in the fee schedule:
             137          (i) approve the fee;
             138          (ii) (A) increase or decrease the fee; and
             139          (B) approve the fee as changed by the Legislature; or
             140          (iii) reject the fee.
             141          (c) A fee approved by the Legislature pursuant to this section shall be deposited in a
             142      restricted account within the General Fund known as the Commerce Service Fund.
             143          Section 3. Section 70-3a-302 is amended to read:
             144           70-3a-302. Application for registration.
             145          (1) (a) Subject to the limitations in this chapter, any person who uses a mark may file
             146      with the division an application for registration of that mark.
             147          (b) The registration described in Subsection (1)(a) shall be filed in accordance with
             148      rules:
             149          (i) made by the division in accordance with Section 70-3a-201 ; and
             150          (ii) that are consistent with this section.
             151          (c) The application shall:



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             152
         (i) state:
             153          (A) the name and business address of the person applying for registration;
             154          (B) if a corporation, the state of incorporation; and
             155          (C) if a partnership:
             156          (I) the state where the partnership is organized; and
             157          (II) the names of the general partners, as specified by the division;
             158          (ii) specify:
             159          (A) the goods or services on or in connection with which the mark is used;
             160          (B) the mode or manner in which the mark is used on or in connection with those
             161      goods or services; and
             162          (C) the class defined pursuant to Section 70-3a-308 in which those goods or services
             163      fall;
             164          (iii) state:
             165          (A) the date when the mark was first used anywhere;
             166          (B) the date when the mark was first used in this state by the applicant or a predecessor
             167      in interest;
             168          (C) that the applicant is the owner of the mark;
             169          (D) that the mark is in use; and
             170          (E) that to the knowledge of the person verifying the application, no other person has
             171      registered, either federally or in this state, or has the right to use that mark:
             172          (I) in the mark's identical form; or
             173          (II) in such near resemblance to the mark as to be likely, when applied to the goods or
             174      services of the other person, to cause confusion, mistake, or to deceive;
             175          (iv) be signed under penalty of perjury by:
             176          (A) the applicant; or
             177          (B) if the applicant is not an individual:
             178          (I) an officer of the applicant; or
             179          (II) a partner of a partnership;
             180          (v) be filed with the division;
             181          (vi) be accompanied by two specimens showing the mark as actually used; and
             182          (vii) be accompanied by a regulatory fee as determined by the division in accordance



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             183
     with Section 70-3a-203 .
             184          (d) In addition to the information required by Subsection (1)(c), the division may
             185      require the applicant to provide:
             186          (i) a statement as to whether an application to register the mark, or portions or a
             187      composite of the mark, has been filed by the applicant or a predecessor in interest in the United
             188      States Patent and Trademark Office; or
             189          (ii) a drawing of the mark, complying with the requirements the division may specify.
             190          (2) If the division requires the statement under Subsection (1)(d)(i), the applicant shall
             191      provide full information with respect to any application filed with the United States Patent and
             192      Trademark Office including:
             193          (a) the filing date and serial number of the application;
             194          (b) the status of the application; and
             195          (c) if any application was finally refused registration or has otherwise not resulted in a
             196      registration, the reasons for the refusal or lack of registration.
             197          (3) Any materials, information, or signatures required to file an application for an
             198      electronic registration mark may be provided through the database created under Section
             199      70-3a-501 .
             200          Section 4. Section 70-3a-304 is amended to read:
             201           70-3a-304. Certification of registration.
             202          (1) If an applicant fully complies with this chapter, the division shall:
             203          (a) certify the registration; and
             204          (b) provide to the applicant documentation that the registration is certified.
             205          (2) The documentation described in Subsection (1) shall:
             206          (a) be affixed to the application of the applicant; or
             207          (b) include the information that is required to be in an application under Subsections
             208      70-3a-302 (1)(c)(i) through (iii).
             209          (3) The following are admissible in evidence as competent and sufficient proof of the
             210      registration of the particular mark in any action or judicial proceeding in any court of this state:
             211          (a) the documentation described in Subsection (1)(b) that is provided by the division;
             212      or
             213          (b) a copy of the documentation described in Subsection (1)(b) if the copy is certified



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             214
     by the division.
             215          (4) Documentation of the certification of an electronic registration mark shall be
             216      provided through the database created under Section 70-3a-501 .
             217          Section 5. Section 70-3a-305 is amended to read:
             218           70-3a-305. Duration and renewal.
             219          (1) The registration of a mark under this chapter expires five years after the date the
             220      division certifies the registration under Section 70-3a-304 .
             221          (2) A registration may be renewed for an additional five years from the date a
             222      registration expires if the registrant:
             223          (a) files an application with the division:
             224          (i) at least six months before the expiration of the registration; and
             225          (ii) in accordance with the requirements made by rule by the division:
             226          (A) pursuant to Section 70-3a-201 ; and
             227          (B) consistent with this section; and
             228          (b) pays a renewal regulatory fee determined by the division in accordance with
             229      Section 70-3a-203 .
             230          (3) If a registrant complies with this section, the registrant may renew a mark at the
             231      expiration of each five-year term.
             232          (4) (a) A registration in effect before May 6, 2002:
             233          (i) shall continue in full force and effect for the registration's unexpired term; and
             234          (ii) may be renewed by:
             235          (A) filing an application for renewal with the division:
             236          (I) within six months before the expiration of the registration; and
             237          (II) in accordance with rules made by the division pursuant to Section 70-3a-201 ; and
             238          (B) paying the required renewal regulatory fee determined by the division in
             239      accordance with Section 70-3a-203 .
             240          (b) If a registration in effect before May 6, 2002, is renewed in accordance with this
             241      Subsection (4), the registration shall be renewed for a term of five years.
             242          (5) Any application for renewal under this chapter, whether a registration made under
             243      this chapter or a registration made under a prior Utah statute, shall include:
             244          (a) a verified statement that the mark has been and is still in use; and



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             245
         (b) (i) a specimen showing actual use of the mark on or in connection with the goods or
             246      services; or
             247          (ii) a verified statement that the mark has not changed.
             248          (6) (a) An electronic registration mark is valid for one year from the day on which the
             249      electronic registration mark is registered.
             250          (b) Registration of an electronic registration mark may be renewed annually by paying
             251      the fee for renewing an electronic registration mark described in Section 70-3a-203 .
             252          (c) An electronic registration mark that is not renewed reverts to a trademark and
             253      expires five years after the day on which the mark was originally certified unless renewed
             254      under Subsection (2).
             255          (d) Any existing trademark or service mark that otherwise qualifies for registration as
             256      an electronic registration mark may be converted to an electronic registration mark by paying
             257      the electronic registration mark fee under Section 70-3a-203 .
             258          Section 6. Section 70-3a-306 is amended to read:
             259           70-3a-306. Assignments -- Changes of name -- Other instruments -- Security
             260      interests -- Acknowledgments.
             261          (1) (a) A mark and the mark's registration under this chapter is assignable with:
             262          (i) the good will of the business in which the mark is used; or
             263          (ii) that part of the good will of the business connected with the use of and symbolized
             264      by the mark.
             265          (b) An assignment under this section:
             266          (i) shall be:
             267          (A) in writing; and
             268          (B) properly executed; and
             269          (ii) may be filed with the division by:
             270          (A) filing a form provided by the division; and
             271          (B) paying of a fee determined by the division in accordance with Section 70-3a-203 .
             272          (c) Upon the filing of an assignment, the division shall certify that the assignment has
             273      been filed.
             274          (d) An assignment of any registration under this chapter is void as against any
             275      subsequent purchaser for valuable consideration without notice, unless the assignment is filed



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             276
     with the division [within]:
             277          (i) within three months after the date of the assignment; or
             278          (ii) [prior to] before the subsequent purchase.
             279          (2) Any registrant or applicant may change the name of the person or business to whom
             280      the mark is issued or for whom an application is filed by:
             281          (a) filing two copies of a certificate of change of name of the registrant or applicant
             282      with the division; and
             283          (b) paying of a fee determined by the division in accordance with Section 70-3a-203 .
             284          (3) (a) A person may file another instrument that relates to a mark registered or
             285      application pending under this chapter:
             286          (i) in the discretion of the division; and
             287          (ii) if the instrument is:
             288          (A) in writing; and
             289          (B) properly executed.
             290          (b) An instrument that may be filed under this Subsection (3) includes:
             291          (i) a license;
             292          (ii) a security interest; or
             293          (iii) a mortgage.
             294          (4) An acknowledgment by the assignor or person whose interest in a mark is adversely
             295      effected by the instrument:
             296          (a) is prima facie evidence of the execution of an assignment or other instrument; and
             297          (b) when filed by the division, [the filed acknowledgment] is prima facie evidence of
             298      execution of the assignment or other instrument.
             299          (5) An assignment and a name change of an electronic registration mark may be made
             300      through the database created under Section 70-3a-501 .
             301          Section 7. Section 70-3a-402 is amended to read:
             302           70-3a-402. Infringement.
             303          (1) Subject to Section 70-3a-104 and Subsection (2), any person is liable in a civil
             304      action brought by the registrant for any and all of the remedies provided in Section 70-3a-404 ,
             305      if that person:
             306          (a) uses a reproduction, counterfeit, copy, or colorable imitation of a mark registered



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             307
     under this chapter:
             308          (i) without the consent of the registrant; and
             309          (ii) in connection with the sale, distribution, offering for sale, or advertising of any
             310      goods or services on or in connection with which that use is likely to cause confusion, mistake,
             311      or to deceive as to the source of origin, nature, or quality of those goods or services; [or]
             312          (b) reproduces, counterfeits, copies, or colorably imitates any mark and applies the
             313      reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages,
             314      wrappers, receptacles, or advertisements intended to be used upon or in connection with the
             315      sale or other distribution in this state of goods or services[.]; or
             316          (c) uses an electronic registration mark to cause the delivery or display of an
             317      advertisement for a business, goods, or a service:
             318          (i) of the same class, as defined in Section 70-3a-308 , other than the business, goods,
             319      or service of the registrant of the electronic registration mark; or
             320          (ii) if that advertisement is likely to cause confusion between the business, goods, or
             321      service of the registrant of the electronic registration mark and the business, goods, or service
             322      advertised.
             323          (2) Under Subsection (1)(b), the registrant is not entitled to recover profits or damages
             324      unless the act described in Subsection (1)(b) has been committed with the intent:
             325          (a) to cause confusion or mistake; or
             326          (b) to deceive.
             327          (3) For a violation of Subsection (1)(c), the person whose business, goods, or service is
             328      advertised, and the person who sells or displays the advertisement are liable if:
             329          (a) the advertisement is at any time displayed in the state; or
             330          (b) the advertiser or person selling the advertisement is located in the state.
             331          Section 8. Section 70-3a-501 is enacted to read:
             332     
Part 5. Searchable Mark Database

             333          70-3a-501. Searchable mark database.
             334          (1) The division shall maintain a database that enables a user to:
             335          (a) file an application to register an electronic registration mark;
             336          (b) manage existing electronic registration marks owned by the user; and
             337          (c) search for any registered marks.



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             338
         (2) S. (a) .S The division may contract with a person to maintain and operate the
             338a      database.
             338b      S. (b) If the division contracts with a person to maintain and operate the database, the person
             338c      with whom the division contracts may, at the discretion of the division, be responsible for all
             338d      costs of creating the database and readying it for use. .S
             339          (3) The database required by Subsection (1) shall be:
             340          (a) funded by fees collected for the registration of electronic registration marks; and
             341          (b) accessible online through the state's Internet website.
             342          (4) For all registered marks, the database shall include:
             343          (a) the date of a mark's registration;
             344          (b) an indication of the mark's status as active or otherwise;
             345          (c) any class for which the mark is registered; and
             346          (d) the name of the registrant.
             347          (5) A search of the information in the database that is listed in Subsection (4) shall be
             348      available free to any user, without regard to whether the user has an account for use of the
             349      database.
             350          (6) The division may provide other services in connection with the database, for which
             351      the division may charge a user.
             352          (7) A person registering an electronic registration mark shall be given an account
             353      through which the person may access the database to:
             354          (a) review the status of a mark;
             355          (b) pay any fee; and
             356          (c) renew, revoke, and assign any electronic registration mark.
             357          (8) (a) The database shall provide a mechanism allowing a person to seek permission
             358      from the registrant to use a registered electronic registration mark.
             359          (b) The database shall allow, through use of the database, a registrant whose
             360      permission is requested under Subsection (8)(a) to approve, disapprove, or approve with a time
             361      limitation the request.
             362          (c) (i) The division may charge a fee for a request for permission to use an electronic
             363      registration mark under this Subsection (8).
             364          (ii) No fee may be charged to the registrant from whom permission to use a mark is
             365      requested.
             366          (9) The creation of the database does not affect the registration of and fees for a
             367      trademark or service mark.
             368          Section 9. Section 70-3a-502 is enacted to read:



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             369
         70-3a-502. Use of funds collected under this chapter.
             370          Any funds collected from the registration of a mark under this chapter or the use of the
             371      database in excess of the expense of maintaining the database shall be retained as dedicated
             372      credits to be used by the division to:
             373          (1) promote the registration of electronic registration marks to holders of federal
             374      trademarks;
             375          (2) promote the state as a desirable location for business; and
             376          (3) provide incentives to businesses considering relocation to the state.






Legislative Review Note
    as of   2-14-07  4:51 PM


    As required by legislative rule and practice, the Office of Legislative Research and General Counsel provides the following legislative review note to assist the Legislature in making its own determination as to the constitutionality of the bill. The note is based on an analysis of relevant state and federal constitutional law as applied to the bill. The note is not written for the purpose of influencing whether the bill should become law, but is written to provide information relevant to legislators' consideration of this bill. The note is not a substitute for the judgment of the judiciary, which has authority to determine the constitutionality of a law in the context of a specific case.

    This legislation allows the registration of an electronic mark that would prohibit the triggering of an advertisement for a competitor. The most prominent application for this type of mark is the use of user-entered search terms in an Internet search engine to trigger advertisements. These triggered advertisements are often advertisements for a competitor of an entity whose name is entered in the search engine by a potential customer. Because of the potential impact on interstate commerce from the state's regulation of electronic registration mark use on Internet search engines, this legislation has a high probability of being held to be unconstitutional.

    The Commerce Clause to the United States Constitution provides that Congress has the power to regulate interstate commerce. (U.S. Const. art. I, sec. 8). This provision also has a "dormant" aspect that "prohibits state . . . regulation that discriminates against or unduly burdens interstate commerce." General Motors Corp. v. Tracy, 519 U.S. 278, 287 (1997) (Citations omitted). Although the dormant aspect of the Commerce Clause is not implicated when Congress has delegated its power to regulate in an area to the states, that delegation "must be either 'expressly stated' or 'made unmistakably clear.'" New York State Dairy Foods, Inc. v. Northeast Dairy Compact Comm'n, 198 F.3d 1, 20 (citations omitted). Further, this delegation must be specific to that state action challenged. See Ind. Community Bankers Ass'n v. Bd. of Comm'rs of the Fed. Reserve Sys., 838 F.2d 969, 973-77 (8th Cir. 1988) (holding that although Congress authorized states to allow a bank's acquisition by out-of-state entity, Congress did not authorize restrictions on acquired banks).

    In the context of this legislation, there has been no specific delegation by Congress of the authority to regulate the type of Internet advertising that this legislation targets, whether triggered by an electronic registration mark or any other method. Thus, the dormant Commerce Clause is implicated and the legislation will be analyzed to determine whether it places a burden on interstate commerce that outweighs the state's benefit. ACLU v. Johnson, 194 F.3d 1149, 1161 (10th Cir. 1999).

    This legislation applies to an electronic mark registered in Utah that is used to trigger an advertisement if the advertisement is delivered in Utah or if the advertiser or person selling the advertisement is located in Utah. A large Internet search engine must first determine whether a user is located within Utah. If the user is in Utah, the Internet search engine must check search terms against Utah's registry of trademarks to prevent the unlawful triggering of advertising. Literally millions of search requests from locations worldwide each day would be subject to verification of location. Once verified, the search engine would then use a separate process for delivering advertising to Utah. This results in multiple systems of advertisement for a search engine to manage.

It is plausible that a search engine might merely decide to check all searches against the state's registry to avoid the need to ascertain the location of each user. This would be strong evidence of the magnitude of the burden of verifying the location of each user and of the interstate impact of this legislation. See, e.g., Id. (stating "the nature of the Internet forecloses the argument that [the statute] applies only to intrastate communications."). Whether deciding to verify a user's location or to merely check the registry with each search, any benefit to the state from this legislation is likely substantially outweighed by the burden on every Internet search engine or similar system to re- engineer its systems and constantly check the search terms or the location of a user. This is likely the case even with advances in technology that make it easier to determine a user's location.

    In ACLU v. Johnson, the Tenth Circuit U.S. Court of Appeals held that a New Mexico statute that prohibited the dissemination of material harmful to minors by computer violated the Commerce Clause because it applied to material that was being disseminated over the Internet. Id. at 1152, 1161-63. This legislation is not dissimilar from the laws struck down in ACLU v. Johnson, in that it has the effect of requiring entities outside of Utah to verify the location of a user or ensure that all content complies with Utah law. Additionally, the benefit to the state from this legislation is likely less than in ACLU v. Johnson, which dealt with the protection of minors from pornography. Thus, in addition to regulating conduct outside of Utah, this legislation also likely provides a benefit that is substantially outweighed by the burdens on interstate commerce. For these reasons, this legislation has a high probability of being held to be unconstitutional.

Office of Legislative Research and General Counsel


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