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Re: Licensing a non Trademarked Name


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Posted by M Arthur Auslander on February 24, 2002 at 22:40:27:

In Reply to: Licensing a non Trademarked Name posted by Dominic on February 24, 2002 at 10:57:36:

: A company was spun off from it's parent company of which it still owns a majority stake. The spin off company is using the same 3 initials in its name as the parent company but the rest of the company name is different from the parent. The parent company does not have a trademark on these initials. The parent company is requesting the spin off to sign a license agreement to continue using the initials in its name. Each company has been incorporated in different states. The spin off company has used it's history and affiliation to the parent to generate business. My question, can the parent company enforce a license agreement for initials that it has not trademarked? Can they issue a cease order onto the spin off for using the name if the spin off doesn't agree to license agreement?

: Thanks in advance

: Regards,
: Dominic

Dear Dominic,
When you say, "doesn't have a trademark", you are at the critical point. There are common law rights in unregistered marks, as well as contractual rights. There is a question why a good mark is not registered. Marks not used interstate can be registered locally on a state by state basis.

M. Arthur Auslander

Auslander & Thomas-Intellectual Property Law Since 1909
505 Eighth Avenue, New York, NY 10018
212-594-6900, fax 212-244-0028, aus@auslander.com
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