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Third Substitute S.B. 151
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
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:
20 Other Special Clauses:
22 Utah Code Sections Affected:
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
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
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.
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
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)[
74 by 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.
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)[
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.
87 vocation of that person.
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)[
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 [
119 (b) A person who pays the annual regulatory fee for the electronic registration of [
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 [
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
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
154 goods or services; and
155 (C) the class defined pursuant to Section 70-3a-308 in which those goods or services
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 [
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;
207 (b) a copy of the documentation described in Subsection (1)(b) if the copy is certified
208 by the division.
209 (4) Documentation of the certification of an [
210 registered mark shall be provided through the database created under Section 70-3a-501 .
211 Section 5. Section 70-3a-305 is amended to read:
212 70-3a-305. Duration and renewal.
213 (1) The registration of a mark under this chapter expires five years after the date the
214 division certifies the registration under Section 70-3a-304 .
215 (2) A registration may be renewed for an additional five years from the date a
216 registration expires if the registrant:
217 (a) files an application with the division:
218 (i) at least six months before the expiration of the registration; and
219 (ii) in accordance with the requirements made by rule by the division:
220 (A) pursuant to Section 70-3a-201 ; and
221 (B) consistent with this section; and
222 (b) pays a renewal regulatory fee determined by the division in accordance with
223 Section 70-3a-203 .
224 (3) If a registrant complies with this section, the registrant may renew a mark at the
225 expiration of each five-year term.
226 (4) (a) A registration in effect before May 6, 2002:
227 (i) shall continue in full force and effect for the registration's unexpired term; and
228 (ii) may be renewed by:
229 (A) filing an application for renewal with the division:
230 (I) within six months before the expiration of the registration; and
231 (II) in accordance with rules made by the division pursuant to Section 70-3a-201 ; and
232 (B) paying the required renewal regulatory fee determined by the division in
233 accordance with Section 70-3a-203 .
234 (b) If a registration in effect before May 6, 2002, is renewed in accordance with this
235 Subsection (4), the registration shall be renewed for a term of five years.
236 (5) Any application for renewal under this chapter, whether a registration made under
237 this chapter or a registration made under a prior Utah statute, shall include:
238 (a) a verified statement that the mark has been and is still in use; and
239 (b) (i) a specimen showing actual use of the mark on or in connection with the goods or
240 services; or
241 (ii) a verified statement that the mark has not changed.
252 Section 6. Section 70-3a-306 is amended to read:
253 70-3a-306. Assignments -- Changes of name -- Other instruments -- Security
254 interests -- Acknowledgments.
255 (1) (a) A mark and the mark's registration under this chapter is assignable with:
256 (i) the good will of the business in which the mark is used; or
257 (ii) that part of the good will of the business connected with the use of and symbolized
258 by the mark.
259 (b) An assignment under this section:
260 (i) shall be:
261 (A) in writing; and
262 (B) properly executed; and
263 (ii) may be filed with the division by:
264 (A) filing a form provided by the division; and
265 (B) paying of a fee determined by the division in accordance with Section 70-3a-203 .
266 (c) Upon the filing of an assignment, the division shall certify that the assignment has
267 been filed.
268 (d) An assignment of any registration under this chapter is void as against any
269 subsequent purchaser for valuable consideration without notice, unless the assignment is filed
270 with the division:
271 (i) within three months after the date of the assignment; or
272 (ii) before the subsequent purchase.
273 (2) Any registrant or applicant may change the name of the person or business to whom
274 the mark is issued or for whom an application is filed by:
275 (a) filing two copies of a certificate of change of name of the registrant or applicant
276 with the division; and
277 (b) paying of a fee determined by the division in accordance with Section 70-3a-203 .
278 (3) (a) A person may file another instrument that relates to a mark registered or
279 application pending under this chapter:
280 (i) in the discretion of the division; and
281 (ii) if the instrument is:
282 (A) in writing; and
283 (B) properly executed.
284 (b) An instrument that may be filed under this Subsection (3) includes:
285 (i) a license;
286 (ii) a security interest; or
287 (iii) a mortgage.
288 (4) An acknowledgment by the assignor or person whose interest in a mark is adversely
289 effected by the instrument:
290 (a) is prima facie evidence of the execution of an assignment or other instrument; and
291 (b) when filed by the division, is prima facie evidence of execution of the assignment
292 or other instrument.
295 Section 7. Section 70-3a-402 is amended to read:
296 70-3a-402. Infringement.
297 (1) Subject to Section 70-3a-104 and Subsection (2), any person is liable in a civil
298 action brought by the registrant for any and all of the remedies provided in Section 70-3a-404 ,
299 if that person:
300 (a) uses a reproduction, counterfeit, copy, or colorable imitation of a mark registered
301 under this chapter:
302 (i) without the consent of the registrant; and
303 (ii) in connection with the sale, distribution, offering for sale, or advertising of any
304 goods or services on or in connection with which that use is likely to cause confusion, mistake,
305 or to deceive as to the source of origin, nature, or quality of those goods or services; or
306 (b) reproduces, counterfeits, copies, or colorably imitates any mark and applies the
307 reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages,
308 wrappers, receptacles, or advertisements intended to be used upon or in connection with the
309 sale or other distribution in this state of goods or services[
317 (2) Under Subsection (1)(b), the registrant is not entitled to recover profits or damages
318 unless the act described in Subsection (1)(b) has been committed with the intent:
319 (a) to cause confusion or mistake; or
320 (b) to deceive.
325 Section 8. Section 70-3a-501 is amended to read:
326 70-3a-501. Searchable mark database.
327 (1) The division shall maintain a database that enables a user to:
328 (a) file an application to electronically register [
329 (b) manage existing [
330 (c) search for any registered marks.
331 (2) (a) The division may contract with a person to maintain and operate the database.
332 (b) If the division contracts with a person to maintain and operate the database, the
333 person with whom the division contracts may, at the discretion of the division, be responsible
334 for all costs of creating the database and readying it for use.
335 (3) [
336 required by Subsection (1) shall be:
337 (a) directly funded by fees collected for the electronic registration of [
339 database; and
340 (b) accessible online through the state's Internet website.
341 (4) For all registered marks, the database shall include:
342 (a) the date of a mark's registration;
343 (b) an indication of the mark's status as active or otherwise;
344 (c) any class for which the mark is registered; and
345 (d) the name of the registrant.
346 (5) A search of the information in the database that is listed in Subsection (4) shall be
347 available free to any user, without regard to whether the user has an account for use of the
349 (6) The division may provide other services in connection with the database, for which
350 the division may charge a user.
351 (7) A person electronically registering [
352 an account through which the person may access the database to:
353 (a) review the status of a mark;
354 (b) pay any fee; and
355 (c) renew, revoke, and assign any [
367 Section 9. Section 70-3a-502 is amended to read:
368 70-3a-502. Use of funds collected under this chapter.
370 collected from the registration of a mark under this chapter or the use of the database in excess
371 of the expense of maintaining the database shall be retained as dedicated credits to be used by
372 the division to:
373 (1) promote the electronic registration of [
374 federal trademarks;
375 (2) promote the state as a desirable location for business; and
376 (3) provide incentives to businesses considering relocation to the state.
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