Does the use of a common law trademake on the Internet convey senior territorial rights to the mark holder throughout the U.S.?
No. Although the Internet is global in scope, the use of a trademark on a website that can theoretically be accessed anywhere in the U.S. (and indeed the rest of the world) does not mean that the trademark is known and established throughout the U.S.
Knowledge among persons in the territories at issue must be proven by evidence and cannot be assumed just because the Internet is national and global. See, Echo Drain v. Newsted, 307 F. Supp. 2d 1116, 1128-129 (C.D. Cal. 2003) (holding that though musical group operated a worldwide accessible website, the trademark rights in the group’s name were limited to the Dallas-Fort Worth area based on the group’s geographically limited actual presence). When the traditional tests for establishing priority of use a trademark are applied, the Internet use should be factored in and weighed along with various other factors, including: (1) the volume of sales in a given area; (2) growth trends in an area; (3) sales in that area as a function of the total market; (4) the distribution of these sales points within a given area; and (5) specific targeting, which would encompass any bricks-and-mortar advertising. See, J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 26:30.50 (2011); see also Louis Altman & Malla Pollack, Callman on Unfair Competition, Trademarks, and Monopolies § 20:24 (2011) (“But just being available on the Internet may not be enough; the question of whether such availability supports the acquisition of trademark rights in a given territory may depend upon whether the site is actually accessed by many people from that territory, and whether such access is accompanied by actual sales in that territory.”).
For our purposes this means that merely because the user of the mark has an Internet presence does not mean it will be deemed the senior user. An admittedly junior user who obtains a Federal registration gains the presumptive senior user status in all regions where the junior user cannot establish prior territorial use under the traditional priority-test. When you think about it, this makes a lot of sense. A contrary finding would effectively negate the need not obtain a federal registration. In other words, one would be able to claim presumptive constructive use based only on an Internet presence. As the law now stands, such presumptive use requires a registration of the mark. See 15 U.S.C. § 1057(c); see also id. at § 1115(a)(5).
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