Public Perception, Not Per Se Rules, Determines Registrability of Marks with Generic Terms

Today in U.S.P.T.O v. Booking.com B.V., the Supreme Court rejected the USPTO’s position that BOOKING.COM was unregistrable because it merely a combination of a generic term and a tld designator.  The Supreme Court rejected the application of a per se rule against the registrability of compound marks based on generic terms, finding instead that consumer perception of the term should control.  Judge Ginsberg noting that “[b]ecause ‘Booking.com’ is not a generic name to consumers, it is not generic.”

The Court distinguished Goodyear’s India Rubber Glove Mfg. Co. v. Goodyear Rubber Co., 128 U. S. 598 (1888), where it held that a generic corporate designation added to a generic term does not confer trademark eligibility.  The Court found the comparison faulty because of the nature of the internet — a “generic.com” term could convey to consumers a source-identifying characteristic: an association with a particular website.

The Court also rejected a per se rule that every generic term combined with a tld is automatically not generic, holding that whether any given generic.com term is generic “depends on whether consumers in fact perceive that term as the name of a class or, instead, as a term capable of dis­tinguishing among members of the class.”

It will be interesting to see what the USPTO does with the application on remand.  Will it require a disclaimer of the generic term “booking” and the tld “.com”?  If so, then the applicant will have disclaimed the entire mark apart from itself.

It will also be interesting to see what booking.com will do with its registration.  No reasonable competitor would consider using “booking.com” as their own brand, because they would be driving customers to booking.com.  What is the point?  Can booking.com tie up booking combined with other tld’s? Booking.com conceded that booking.com would be “weak” (Tr. of Oral Arg. 66). Indeed they will get a registration only because of the association of the term with a particular website.  What of a booking.online (which presently appears to be available)?  Would that create a likelihood of confusion, or would the fame of booking.com that won them a registration make such confusion unlikely?  Competitors are entitled to use the generic term “booking”, what remains to be seen is how.

Rogers Defense, Blockbuster or Flop?

Australian motorcycle company (and film critics) Deus Ex Machina Motorcycles Pty. Ltd., has sued Warner Bros. and MGM Studios for trademark infringement for dressing the female lead in a jacket bearing their registered trademark “Deus ex Machina” in the “flop” “schmaltzy teen-style love story,” [Complaint, Para. 33] The Sun Is Also a Star.

The Sun Is Also a Star is a teen drama film directed by Ry Russo-Young and written by Tracy Oliver, based upon the young adult novel of the same name by Nicola Yoon. The phrase “deus ex machina” is essential to Yoon’s story, where its presence on the female protagonist Natasha’s backpack gets her noticed by Daniel and sets the love story in motion. The movie moved the phrase from the book’s backpack to a jacket. According to a 2019 article in MarieClaire.com, the jacket plays a critical role in the film. Costume designer Deirdra Govan,  created the jacket from scratch in three-and-a-half weeks with the help of her mighty team of assistants, tailors, set costumers, and costume supervisor, working on roughly 15 different styles before landing on the one.

The Complaint sets up another First Amendment battle between artists and brand owners. Yoon no-doubt selected the phrase for its well known literary meaning; a heavily merchandised motorcycle company with a curated tough-guy image was probably the last think on her mind. Still, the movie moved the phrase from a backpack to a jacket. It also does not help that Charles Melton, who played teenager Daniel Bae in the movie, posed for pictures posted to social media to help promote the movie in which he wore clothing actually sold by Deus Ex Machina [Complaint, Para. 31].

It seems that Warner Bros. and MGM Studios have a reasonable First Amendment Rogers defense, and unless tough-guy biker boys are sneaking into schmaltzy teen-style love stories, a reasonable argument that there is no likelihood of confusion. While the movie may have flopped, hopefully their defense will be a block buster.