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

S.B. 151 Enrolled

             1     

TRADEMARK PROTECTION ACT AMENDMENTS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dan R. Eastman

             5     
House Sponsor: John Dougall

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to Title 70, Chapter 3a, Registration and Protection of
             10      Trademarks and Service Marks Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    eliminates provisions allowing registration and enforcement of an electronic service
             14      mark;
             15          .    addresses the establishment, maintenance, and funding of a database allowing
             16      electronic registration and administration of trademarks and service marks; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          70-3a-103, as last amended by Laws of Utah 2007, Chapter 365
             25          70-3a-203, as last amended by Laws of Utah 2007, Chapter 365
             26          70-3a-302, as last amended by Laws of Utah 2007, Chapter 365
             27          70-3a-304, as last amended by Laws of Utah 2007, Chapter 365
             28          70-3a-305, as last amended by Laws of Utah 2007, Chapter 365
             29          70-3a-306, as last amended by Laws of Utah 2007, Chapter 365


             30          70-3a-402, as last amended by Laws of Utah 2007, Chapter 365
             31          70-3a-501, as enacted by Laws of Utah 2007, Chapter 365
             32          70-3a-502, as enacted by Laws of Utah 2007, Chapter 365
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 70-3a-103 is amended to read:
             36           70-3a-103. Definitions -- Use -- Service marks.
             37          (1) As used in this chapter:
             38          (a) "Abandoned mark" means a mark whose:
             39          (i) use has been discontinued with no intent to resume use; or
             40          (ii) significance as a mark has been lost due to any course of conduct of the owner,
             41      including acts of omission or commission.
             42          (b) "Applicant" means:
             43          (i) the person filing an application for registration of a mark under this chapter; and
             44          (ii) a legal representative, successor, or assign of a person described in Subsection
             45      (1)(b)(i).
             46          (c) "Dilution" means the lessening of the capacity of a famous mark to identify and
             47      distinguish goods or services, regardless of the presence or absence of:
             48          (i) competition between the owner of the famous mark and another person; or
             49          (ii) the likelihood of:
             50          (A) confusion;
             51          (B) mistake; or
             52          (C) deception.
             53          (d) "Division" means the Division of Corporations and Commercial Code within the
             54      Department of Commerce.
             55          [(e) (i) If the conditions of Subsection (1)(e)(ii) are met, "electronic registration mark"
             56      means a word, term, or name that represents a business, goods, or a service.]
             57          [(ii) The mark described in Subsection (1)(e)(i) is an electronic registration mark only if


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


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


             114          Section 2. Section 70-3a-203 is amended to read:
             115           70-3a-203. Fees.
             116          (1) (a) A regulatory fee, as defined in Section 63-38-3.2 , shall be determined by the
             117      division in accordance with Section 63-38-3.2 , but may not exceed $250 annually for electronic
             118      registration of [an electronic registration] a mark in a single class.
             119          (b) A person who pays the annual regulatory fee for the electronic registration of [an
             120      electronic registration] a mark may register additional classes for the same mark for an
             121      additional fee not to exceed $25 annually.
             122          (2) (a) For a fee authorized by this chapter that is not a regulatory fee, the division may
             123      adopt a schedule of fees [provided that] if each fee in the schedule of fees is:
             124          (i) reasonable and fair; and
             125          (ii) submitted to the Legislature as part of the Department of Commerce's annual
             126      appropriations request.
             127          (b) When a fee schedule described in Subsection (2)(a) is submitted as part of the
             128      annual appropriations request, the Legislature, in a manner substantially similar to Section
             129      63-38-3.2 , may for any fee in the fee schedule:
             130          (i) approve the fee;
             131          (ii) (A) increase or decrease the fee; and
             132          (B) approve the fee as changed by the Legislature; or
             133          (iii) reject the fee.
             134          (c) A fee approved by the Legislature pursuant to this section shall be deposited in a
             135      restricted account within the General Fund known as the Commerce Service Fund.
             136          Section 3. Section 70-3a-302 is amended to read:
             137           70-3a-302. Application for registration.
             138          (1) (a) Subject to the limitations in this chapter, any person who uses a mark may file
             139      with the division an application for registration of that mark.
             140          (b) The registration described in Subsection (1)(a) shall be filed in accordance with
             141      rules:


             142          (i) made by the division in accordance with Section 70-3a-201 ; and
             143          (ii) that are consistent with this section.
             144          (c) The application shall:
             145          (i) state:
             146          (A) the name and business address of the person applying for registration;
             147          (B) if a corporation, the state of incorporation; and
             148          (C) if a partnership:
             149          (I) the state where the partnership is organized; and
             150          (II) the names of the general partners, as specified by the division;
             151          (ii) specify:
             152          (A) the goods or services on or in connection with which the mark is used;
             153          (B) the mode or manner in which the mark is used on or in connection with those goods
             154      or services; and
             155          (C) the class defined pursuant to Section 70-3a-308 in which those goods or services
             156      fall;
             157          (iii) state:
             158          (A) the date when the mark was first used anywhere;
             159          (B) the date when the mark was first used in this state by the applicant or a predecessor
             160      in interest;
             161          (C) that the applicant is the owner of the mark;
             162          (D) that the mark is in use; and
             163          (E) that to the knowledge of the person verifying the application, no other person has
             164      registered, either federally or in this state, or has the right to use that mark:
             165          (I) in the mark's identical form; or
             166          (II) in such near resemblance to the mark as to be likely, when applied to the goods or
             167      services of the other person, to cause confusion, mistake, or to deceive;
             168          (iv) be signed, including by any signature consistent with the requirement for an
             169      electronic signature under 15 U.S.C. Sec. 7001, under penalty of perjury by:


             170          (A) the applicant; or
             171          (B) if the applicant is not an individual:
             172          (I) an officer of the applicant; or
             173          (II) a partner of a partnership;
             174          (v) be filed with the division;
             175          (vi) be accompanied by two specimens showing the mark as actually used; and
             176          (vii) be accompanied by a regulatory fee as determined by the division in accordance
             177      with Section 70-3a-203 .
             178          (d) In addition to the information required by Subsection (1)(c), the division may
             179      require the applicant to provide:
             180          (i) a statement as to whether an application to register the mark, or portions or a
             181      composite of the mark, has been filed by the applicant or a predecessor in interest in the United
             182      States Patent and Trademark Office; or
             183          (ii) a drawing of the mark, complying with the requirements the division may specify.
             184          (2) If the division requires the statement under Subsection (1)(d)(i), the applicant shall
             185      provide full information with respect to any application filed with the United States Patent and
             186      Trademark Office including:
             187          (a) the filing date and serial number of the application;
             188          (b) the status of the application; and
             189          (c) if any application was finally refused registration or has otherwise not resulted in a
             190      registration, the reasons for the refusal or lack of registration.
             191          (3) Any materials, information, or signatures required to file an application for [an
             192      electronic registration] a mark may be provided through the database created under Section
             193      70-3a-501 .
             194          Section 4. Section 70-3a-304 is amended to read:
             195           70-3a-304. Certification of registration.
             196          (1) If an applicant fully complies with this chapter, the division shall:
             197          (a) certify the registration; and


             198          (b) provide to the applicant documentation that the registration is certified.
             199          (2) The documentation described in Subsection (1) shall:
             200          (a) be affixed to the application of the applicant; or
             201          (b) include the information that is required to be in an application under Subsections
             202      70-3a-302 (1)(c)(i) through (iii).
             203          (3) The following are admissible in evidence as competent and sufficient proof of the
             204      registration of the particular mark in any action or judicial proceeding in any court of this state:
             205          (a) the documentation described in Subsection (1)(b) that is provided by the division; or
             206          (b) a copy of the documentation described in Subsection (1)(b) if the copy is certified
             207      by the division.
             208          (4) Documentation of the certification of an [electronic registration] electronically
             209      registered mark shall be provided through the database created under Section 70-3a-501 .
             210          Section 5. Section 70-3a-305 is amended to read:
             211           70-3a-305. Duration and renewal.
             212          (1) The registration of a mark under this chapter expires five years after the date the
             213      division certifies the registration under Section 70-3a-304 .
             214          (2) A registration may be renewed for an additional five years from the date a
             215      registration expires if the registrant:
             216          (a) files an application with the division:
             217          (i) at least six months before the expiration of the registration; and
             218          (ii) in accordance with the requirements made by rule by the division:
             219          (A) pursuant to Section 70-3a-201 ; and
             220          (B) consistent with this section; and
             221          (b) pays a renewal regulatory fee determined by the division in accordance with Section
             222      70-3a-203 .
             223          (3) If a registrant complies with this section, the registrant may renew a mark at the
             224      expiration of each five-year term.
             225          (4) (a) A registration in effect before May 6, 2002:


             226          (i) shall continue in full force and effect for the registration's unexpired term; and
             227          (ii) may be renewed by:
             228          (A) filing an application for renewal with the division:
             229          (I) within six months before the expiration of the registration; and
             230          (II) in accordance with rules made by the division pursuant to Section 70-3a-201 ; and
             231          (B) paying the required renewal regulatory fee determined by the division in accordance
             232      with Section 70-3a-203 .
             233          (b) If a registration in effect before May 6, 2002, is renewed in accordance with this
             234      Subsection (4), the registration shall be renewed for a term of five years.
             235          (5) Any application for renewal under this chapter, whether a registration made under
             236      this chapter or a registration made under a prior Utah statute, shall include:
             237          (a) a verified statement that the mark has been and is still in use; and
             238          (b) (i) a specimen showing actual use of the mark on or in connection with the goods or
             239      services; or
             240          (ii) a verified statement that the mark has not changed.
             241          [(6) (a) An electronic registration mark is valid for one year from the day on which the
             242      electronic registration mark is registered.]
             243          [(b) Registration of an electronic registration mark may be renewed annually by paying
             244      the fee for renewing an electronic registration mark described in Section 70-3a-203 .]
             245          [(c) An electronic registration mark that is not renewed reverts to a trademark and
             246      expires five years after the day on which the mark was originally certified unless renewed under
             247      Subsection (2).]
             248          [(d) Any existing trademark or service mark that otherwise qualifies for registration as
             249      an electronic registration mark may be converted to an electronic registration mark by paying
             250      the electronic registration mark fee under Section 70-3a-203 .]
             251          Section 6. Section 70-3a-306 is amended to read:
             252           70-3a-306. Assignments -- Changes of name -- Other instruments -- Security
             253      interests -- Acknowledgments.


             254          (1) (a) A mark and the mark's registration under this chapter is assignable with:
             255          (i) the good will of the business in which the mark is used; or
             256          (ii) that part of the good will of the business connected with the use of and symbolized
             257      by the mark.
             258          (b) An assignment under this section:
             259          (i) shall be:
             260          (A) in writing; and
             261          (B) properly executed; and
             262          (ii) may be filed with the division by:
             263          (A) filing a form provided by the division; and
             264          (B) paying of a fee determined by the division in accordance with Section 70-3a-203 .
             265          (c) Upon the filing of an assignment, the division shall certify that the assignment has
             266      been filed.
             267          (d) An assignment of any registration under this chapter is void as against any
             268      subsequent purchaser for valuable consideration without notice, unless the assignment is filed
             269      with the division:
             270          (i) within three months after the date of the assignment; or
             271          (ii) before the subsequent purchase.
             272          (2) Any registrant or applicant may change the name of the person or business to whom
             273      the mark is issued or for whom an application is filed by:
             274          (a) filing two copies of a certificate of change of name of the registrant or applicant
             275      with the division; and
             276          (b) paying of a fee determined by the division in accordance with Section 70-3a-203 .
             277          (3) (a) A person may file another instrument that relates to a mark registered or
             278      application pending under this chapter:
             279          (i) in the discretion of the division; and
             280          (ii) if the instrument is:
             281          (A) in writing; and


             282          (B) properly executed.
             283          (b) An instrument that may be filed under this Subsection (3) includes:
             284          (i) a license;
             285          (ii) a security interest; or
             286          (iii) a mortgage.
             287          (4) An acknowledgment by the assignor or person whose interest in a mark is adversely
             288      effected by the instrument:
             289          (a) is prima facie evidence of the execution of an assignment or other instrument; and
             290          (b) when filed by the division, is prima facie evidence of execution of the assignment or
             291      other instrument.
             292          [(5) An assignment and a name change of an electronic registration mark may be made
             293      through the database created under Section 70-3a-501 .]
             294          Section 7. Section 70-3a-402 is amended to read:
             295           70-3a-402. Infringement.
             296          (1) Subject to Section 70-3a-104 and Subsection (2), any person is liable in a civil
             297      action brought by the registrant for any and all of the remedies provided in Section 70-3a-404 , if
             298      that person:
             299          (a) uses a reproduction, counterfeit, copy, or colorable imitation of a mark registered
             300      under this chapter:
             301          (i) without the consent of the registrant; and
             302          (ii) in connection with the sale, distribution, offering for sale, or advertising of any
             303      goods or services on or in connection with which that use is likely to cause confusion, mistake,
             304      or to deceive as to the source of origin, nature, or quality of those goods or services; or
             305          (b) reproduces, counterfeits, copies, or colorably imitates any mark and applies the
             306      reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages,
             307      wrappers, receptacles, or advertisements intended to be used upon or in connection with the
             308      sale or other distribution in this state of goods or services[; or].
             309          [(c) uses an electronic registration mark to cause the delivery or display of an


             310      advertisement for a business, goods, or a service:]
             311          [(i) of the same class, as defined in Section 70-3a-308 , other than the business, goods,
             312      or service of the registrant of the electronic registration mark; or]
             313          [(ii) if that advertisement is likely to cause confusion between the business, goods, or
             314      service of the registrant of the electronic registration mark and the business, goods, or service
             315      advertised.]
             316          (2) Under Subsection (1)(b), the registrant is not entitled to recover profits or damages
             317      unless the act described in Subsection (1)(b) has been committed with the intent:
             318          (a) to cause confusion or mistake; or
             319          (b) to deceive.
             320          [(3) For a violation of Subsection (1)(c), the person whose business, goods, or service
             321      is advertised, and the person who sells or displays the advertisement are liable if:]
             322          [(a) the advertisement is at any time displayed in the state; or]
             323          [(b) the advertiser or person selling the advertisement is located in the state.]
             324          Section 8. Section 70-3a-501 is amended to read:
             325           70-3a-501. Searchable mark database.
             326          (1) The division shall maintain a database that enables a user to:
             327          (a) file an application to electronically register [an electronic registration] a mark;
             328          (b) manage existing [electronic registration] marks owned by the user; and
             329          (c) search for any registered marks.
             330          (2) (a) The division may contract with a person to maintain and operate the database.
             331          (b) If the division contracts with a person to maintain and operate the database, the
             332      person with whom the division contracts may, at the discretion of the division, be responsible
             333      for all costs of creating the database and readying it for use.
             334          (3) [The] Notwithstanding Subsections 13-1-2 (3)(c) and 70-3a-203 (2)(c), the database
             335      required by Subsection (1) shall be:
             336          (a) directly funded by fees collected for the electronic registration of [electronic
             337      registration] marks, including funding any data storage costs related to operation of the


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


             366          Section 9. Section 70-3a-502 is amended to read:
             367           70-3a-502. Use of funds collected under this chapter.
             368          [Any] Notwithstanding Subsections 13-1-2 (3)(c) and 70-3a-203 (2)(c), any funds
             369      collected from the registration of a mark under this chapter or the use of the database in excess
             370      of the expense of maintaining the database shall be retained as dedicated credits to be used by
             371      the division to:
             372          (1) promote the electronic registration of [electronic registration] marks to holders of
             373      federal trademarks;
             374          (2) promote the state as a desirable location for business; and
             375          (3) provide incentives to businesses considering relocation to the state.


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