® Official Journal of the International Trademark Association HIGH COURT ISSUE Two Pesos v. Taco Cabana: Still More Interesting for What It Did Not Decide Joan L. Dillon & Michael Landau Even More Parodic Than the Real Thing: Parody Lawsuits Revisited Bruce P. Keller and Rebecca Tushnet Qualitex Revisited Christopher C. Larkin Wal-Mart v. Samara Brothers and Its Progeny S. Lloyd Smith TrafFix Revisited: Exposing the Design Flaw in the Functionality Doctrine Clifford W. Browning Federal Dilution Claims After Moseley v. V Secret Catalogue Howard J. Shire and Michelle Mancino Marsh Brand Name and “Look-Alike” Drugs in Canada After Ciba-Geigy v. Apotex: A Proposal for Relief From Slavish Imitation Daniel R. Bereskin, Q.C. A Sign of the Times? A Review of Key Trade Mark Decisions of the European Court of Justice and Their Impact Upon National Trade Mark Jurisprudence in the EU Seiko Hidaka, Nicola Tatchell, Mark Daniels, Bonita Trimmer and Adam Cooke Significant Trademark Developments in the Asia-Pacific Region Joseph S. Yang Vol. 94 September-October, 2004 No. 5 Vol. 94 TMR 1017 QUALITEX REVISITED By Christopher C. Larkin∗ I. INTRODUCTION The United States Supreme Court’s 1995 decision in Qualitex Co. v. Jacobson Products Co.1 was viewed by some at the time as a mischievous precedent that might result in a flood of applications to register single colors as trademarks, which would potentially deplete the spectrum.2 Time has proven such fears to have been unjustified. In the nine years since the decision, the issue of the protection and registration of single colors has reassumed the relatively obscure place in trademark law and practice that it held prior to 1995, and there has been no demonstrable increase in the number of colors successfully registered and protected as marks. Instead, the most significant legacy of the case, resulting from the Supreme Court’s own reinterpretation of it in two subsequent decisions, has been as the foundation for judicially created rules that there are categories of marks that are not inherently distinctive and that the doctrine of functionality is applied differently depending upon whether the issue is utilitarian or “aesthetic” functionality. This legacy is ironic, given that the issues of distinctiveness and functionality were only tangentially addressed in the Qualitex opinion itself and were not the basis for the holding in the case. ∗ Partner in the Los Angeles office of Seyfarth Shaw LLP, Associate Member of the International Trademark Association. Mr. Larkin was the principal author of INTA’s amicus curiae brief to the Supreme Court in Qualitex. The views expressed in this article are solely those of the author and should not be attributed to his firm or its clients, or to INTA. The author wishes to thank his associate Jeffrey A. Kobulnick for his assistance in the preparation of this article. 1. 514 U.S. 159, 115 S. Ct. 1300, 131 L. Ed. 2d 248 (1995). 2. See, e.g., Kearns, Qualitex Co. v. Jacobsen Products Co.: Orange You Sorry the Supreme Court Protected Color? 70 St. John’s L. Rev. 337 (1996). Similar views were expressed within the INTA membership notwithstanding INTA’s institutional position as an amicus curiae in Qualitex that a per se prohibition on the registration and protection of single-color marks was inconsistent with the intent of Congress as expressed in the Lanham Act. By way of example, at the INTA Mid-Year Meeting in November, 1994, a few months before the Supreme Court heard argument in Qualitex, the author was part of a four-lawyer panel that debated the protection of single colors as marks. Two of INTA’s most distinguished members, Miles J. Alexander and Albert Robin, forcefully argued that single colors simply should never be protected as marks for policy reasons. 1018 Vol. 94 TMR II. THE QUALITEX LITIGATION IN THE DISTRICT COURT AND NINTH CIRCUIT COURT OF APPEALS The Qualitex case arose from the efforts of Qualitex Company to enforce claimed trademark rights in a particular green-gold color of pads that it sold to dry cleaning firms for use on dry cleaning presses. Qualitex first used the color in 1957, and by the time of the litigation that reached the Supreme Court, it had used the color for over 30 years and had achieved sales of over one million press pads during that time. In 1989, Jacobson Products, a competitor of Qualitex, began selling its own press pads in a similar green-gold color. Qualitex sued in 1990 under Section 43(a) of the Lanham Act in the United States District Court for the Central District of California. During the pendency of the suit, a federal registration of the green-gold color issued to Qualitex,3 and Qualitex amended its complaint to assert a claim for infringement of the registered mark. After a bench trial, the district court entered findings of fact and conclusions of law holding that Jacobson’s sale of its greengold press pads infringed Qualitex’s registered trademark and constituted unfair competition.4 The district court found that Qualitex’s green-gold color had acquired secondary meaning through long and exclusive use and “image advertising,”5 that Jacobson had failed to show that Qualitex’s registration was invalid or that the green-gold color was functional,6 that there was no competitive need for Jacobson to use the green-gold color and that a single color could properly function as a mark.7 The district court permanently enjoined Jacobson from using the green-gold color or any color “so close to said color that it cannot be easily distinguished from the Qualitex color by the casual user,”8 and it awarded monetary damages to Qualitex. The court also dismissed Jacobson’s counterclaim for cancellation of the Qualitex registration, holding that Jacobson had failed to meet its burden of showing that the registration was invalid.9 3. Reg. No. 1,633,711, issued on February 5, 1991, under Section 2(f) of the Lanham Act. 4. Qualitex Co. v. Jacobson Prods. Co., 21 U.S.P.Q.2d 1457 (C.D. Cal. 1991). 5. Id. at 1461. 6. Id. at 1460. 7. Id. at 1458, 1460. 8. Id. at 1462. 9. Id. Vol. 94 TMR 1019 Jacobson appealed to the Ninth Circuit, which affirmed the judgment in favor of Qualitex on its trade dress infringement claim under Section 43(a), but reversed the dismissal of Jacobson’s counterclaim for cancellation and remanded the case to the district court with directions to enter judgment in Jacobson’s favor canceling Qualitex’s registration.10 With respect to the issue of trademark protection for color per se, the Ninth Circuit acknowledged that “[r]egistration of mere color is not explicitly barred by the Lanham Act,” but that “the courts of appeals generally have refused to grant trademark protection for color alone.”11 Characterizing the issue before it as “whether to follow the majority of circuits in holding that color alone cannot form the basis for a trademark, or to acknowledge the exception of OwensCorning,” the Ninth Circuit “conclude[d] that the better rule is that a trademark should not be registered for color alone”12 because of possible depletion of the spectrum of colors and the possibility of “shade confusion” or having to “[d]raw[] distinctions between close shades of color. . . .”13 The Ninth Circuit then proceeded to affirm the district court’s conclusion that Jacobson’s sale of its press pads infringed Qualitex’s trade dress, which the Ninth Circuit stated had been defined by the district court as “the ‘total impression’ of the Qualitex green-gold pad and its ‘SUN GLOW’ name. . . .”14 The Ninth Circuit approved the district court’s findings that this “trade dress” had been infringed and affirmed the district court judgment granting injunctive and monetary relief to Qualitex, but reversed the judgment for Qualitex on its claim for trademark infringement and on Jacobson’s counterclaim and remanded the case to the district court with orders to enter judgment canceling Jacobson’s registration. 10. Qualitex Co. v. Jacobson Prods. Co., 13 F.3d 1297, 1305 (9th Cir. 1994). 11. Id. at 1301 (citing In re Owens-Corning Fiberglas Corp., 774 F.2d 1116, 1128-29 & n.2 (Fed. Cir. 1985) (Bissell, J., dissenting)). 12. Id. at 1302. 13. Id. 14. Id. at 1304. This distinction between the green-gold color of Qualitex’s pads and its “trade dress” was illusory. While it was true that the district court had defined Qualitex’s trade dress as including the SUN GLOW mark, Qualitex, 21 U.S.P.Q.2d at 1462, its opinion virtually ignored the word mark portion of the dress. The district court’s analysis of the dress focused almost exclusively on the color as the key source-identifying feature of the dress. As the Ninth Circuit itself noted, “Qualitex presented evidence that many purchasers do not speak or read English well” and that “‘they are unlikely to exercise a sufficiently high degree of care to avoid purchasing a Jacobson pad when they are shown a green-gold pad.’” Qualitex, 13 F.3d at 1305. 1020 Vol. 94 TMR Qualitex filed a petition for certiorari, supported by INTA and others, and the Supreme Court granted certiorari15 to resolve a split among the circuits regarding whether color alone was registrable and protectible as a trademark.16 III. THE QUALITEX DECISION IN THE SUPREME COURT The Supreme Court framed the issue in Qualitex as “whether the . . . Lanham Act . . . permits the registration of a trademark that consists, purely and simply, of a color.”17 The Court “conclude[d] that, sometimes, a color will meet ordinary legal trademark requirements [and] [w]hen it does so, no special legal rule prevents color alone from serving as a trademark.”18 Justice Breyer’s opinion for the Court began its analysis with a discussion of the Lanham Act’s definition of a trademark,19 which the Court found describes the universe of things that can qualify as a trademark “in the broadest of terms.”20 “Since human beings might use as a ‘symbol’ or ‘device’ almost anything at all that is capable of carrying meaning, this language, read literally, is not restrictive.”21 The Court also found that “[a product’s] color is also capable of satisfying the more important part of the statutory definition of a trademark” requiring a “trademark,” to identify and distinguish the source of a party’s goods22 because a color, like a descriptive term, over time “can come to indicate a product’s origin.”23 Having addressed the statutory language, the Court could not “find in the basic objectives of trademark law any obvious theoretical objection to the use of color alone as a trademark, where that color has attained [a] ‘secondary meaning’ and 15. Qualitex Co. v. Jacobson Prods. Co., 512 U.S. 1287 (1994). 16. Compare Qualitex, 512 U.S. at 1286, and NutraSweet Co. v. Stadt Corp., 917 F.2d 1024, 1028 (7th Cir. 1990) (absolute prohibition against protection of color alone), with Owens-Corning, 774 F.2d at 1116 (color registrable if otherwise eligible for trademark protection), and Master Distribs., Inc. v. Pako Corp., 986 F.2d 219, 224 (8th Cir. 1993) (no per se prohibition against protecting color alone as a mark). Contrary to the Ninth Circuit’s claim, there was no clear majority rule against the registration of color per se. 17. Qualitex, 514 U.S. at 160-61. 18. Id. at 161. 19. 15 U.S.C. § 1127 (defining “trademark” as including “any word, name, symbol, or device, or any combination thereof”). 20. Qualitex, 514 U.S. at 162. 21. Id. 22. Id. 23. Id. at 163. Vol. 94 TMR 1021 therefore identifies and distinguishes a particular brand (and thus indicates its ‘source’).”24 The Court discussed the economic benefits (including reduced transaction costs for consumers) of protecting marks and concluded that “[i]t is the source-distinguishing ability of a mark—not its ontological status as color, shape, fragrance, word, or sign—that permits it to serve these basic purposes.”25 The Court also could not “find a principled objection to the use of color as a mark in the important ‘functionality’ doctrine of trademark law”; this doctrine “prevents trademark law, which seeks to promote competition by protecting a firm’s reputation, from instead inhibiting legitimate competition by allowing a producer to control a useful product feature.”26 After discussing functionality generally,27 the Court stated that “the fact that sometimes color is not essential to a product’s use or purpose and does not affect cost or quality . . . indicates that the doctrine of ‘functionality’ does not create an absolute bar to the use of color alone as a mark.”28 The Court thus concluded that “color alone, at least sometimes, can meet the basic legal requirements for use as a trademark” because “[i]t can act as a symbol that distinguishes a firm’s goods and identifies their source, without serving any other significant function.”29 “Accordingly, unless there is some special reason that convincingly militates against the use of color alone as a trademark, trademark law would protect Qualitex’s use of the green-gold color on its press pads.”30 The Court then proceeded to address and reject four specific arguments made by Jacobson against the protection of color per se. First, the Court rejected the argument that permitting the protection of single colors would result in “shade confusion,” making it difficult for courts to draw conclusions in color cases. It noted that courts routinely made decisions of degree in crafting injunctions in trademark cases and “[w]e do not believe . . . that color, in this respect, is special.”31 Second, the Court rejected the “color depletion” theory, “largely because it relies on an occasional problem to justify a blanket prohibition. When a color serves as a mark, normally alternative colors will likely be available for similar use by 24. Id. 25. Id. at 164. 26. Id. 27. Id. at 164-65. 28. Id. at 165. 29. Id. at 166. 30. Id. 31. Id. at 167. 1022 Vol. 94 TMR others. . . . [I]f that is not so—if a ‘color depletion’ or ‘color scarcity’ problem does arise—the trademark doctrine of ‘functionality’ normally would seem available to prevent the anticompetitive consequences that Jacobson’s argument posits, thereby minimizing that argument’s practical force.”32 Third, the Court rejected Jacobson’s reliance on pre-Lanham Act cases suggesting that color per se could never be appropriated as a trademark.33 Adopting a large portion of INTA’s argument as an amicus curiae, the Court noted that when Congress amended the Lanham Act through the Trademark Law Revision Act of 1988,34 it left unchanged the definition of “trademark” and that this action (or inaction) occurred against the background of the Federal Circuit’s opinion in Owens-Corning, the policy of the United States Patent and Trademark Office (USPTO) to permit the registration of color when it was otherwise eligible for registration,35 and the recommendations of the then United States Trademark Association’s Trademark Review Commission that “the terms ‘symbol or device’ should not be deleted or narrowed to preclude the registration of such things as a color, shape, smell, sound, or configuration which functions as a mark,”36 upon which recommendations Congress relied in amending the Lanham Act.37 “This history undercuts the authority of the precedent upon which Jacobson relies.”38 Finally, the Court rejected Jacobson’s argument that there was no need to protect color alone because color could always be protected as part of overall trade dress, noting that “one can easily find reasons why the law might provide trademark protection in addition to trade dress protection.”39 Having rejected Jacobson’s four arguments, the Court concluded that because color could sometimes qualify as a trademark and because the district court had found that Qualitex’s green-gold mark did so function, the Ninth Circuit’s ruling was in error and should be reversed. 32. Id. at 168-69 (citing Owens-Corning, 774 F.2d at 1121). 33. Id at 170-71. 34. Id. at 172. 35. TMEP § 1202.04(e), at 1200-12 (Jan. 1986 ed.). 36. The United States Trademark Association Trademark Review Commission Report and Recommendations to USTA President and Board of Directors, 77 TMR 375, 421 (1987). 37. 133 Cong. Rec. 32,812 (1987) (statement of Sen. DeConcini). 38. Qualitex, 514 U.S. at 173. 39. Id. at 174. Vol. 94 TMR 1023 IV. THE LEGACY OF QUALITEX Qualitex spawned a fair amount of scholarship and commentary shortly after the decision and later in the 1990s, much of which was devoted to the issue of whether colors could ever be inherently distinctive,40 and some of which second-guessed the Supreme Court41 or focused on what would need to be shown to qualify for registration under the decision.42 The author’s views on the long-term impact of the decision on trademark practice, with the benefit of nine years’ hindsight, are discussed below. V. POST-QUALITEX TTAB DECISIONS ON REGISTRATION OF SINGLE COLORS43 A few months after Qualitex, the Trademark Trial and Appeal Board (TTAB) reversed a refusal to register the color green for disposable dental instruments in In re Denticator International, Inc.44 Citing Qualitex only at the end of the opinion, the TTAB found that the applicant had established a prima facie case of acquired distinctiveness.45 Shortly thereafter, in In re Hudson News Co.,46 the TTAB acknowledged the debate over whether Qualitex permitted the registration of color on the basis of inherent distinctiveness. It concluded that the Supreme Court’s opinion left that question open, but noted that it appeared that acquired distinctiveness 40. See, e.g., K. Jordan & L. Jordan, Qualitex Co. v. Jacobsen Products Co., The Unanswered Question—Can Color Ever Be Inherently Distinctive? 85 TMR 371 (1995); Note, The Registrability of Color Per Se as a Trademark After Qualitex Co. v. Jacobson Products Co., 40 St. Louis U. L.J. 611 (1996); Landau, Reconciling Qualitex with Two Pesos: Ambiguity and Inconsistency from the Supreme Court, 3 UCLA Ent. L. Rev. 219 (1996); see also In re Hudson News Co., 39 U.S.P.Q.2d 1915 (T.T.A.B. 1996) (collecting commentary and cases). 41. See supra note 2. 42. See, e.g., James L. Vana, Color Trademarks, 7 Tex. Intell. Prop. L.J. 387 (1999). 43. As is regrettably so often the case, there are only a few citable TTAB decisions in this area. This is reflected in those portions of the Trademark Manual of Examining Procedure that instruct USPTO examining attorneys on the law with respect to single-color marks. TMEP § 1202. There are more uncitable decisions that discuss Qualitex and its impact on single-color registration, but because these decisions cannot be relied upon by the TTAB, the USPTO, or trademark owners, this portion of the article discusses only citable precedent. The author echoes the plea of many INTA members that the TTAB should publish more of its decisions to provide additional citable precedents, in this relatively unusual area of the law and in many more-common ones, to the trademark bar and its clients. 44. 38 U.S.P.Q.2d 1218 (T.T.A.B. 1995). 45. Id. at 1220. 46. 39 U.S.P.Q.2d 1915 (T.T.A.B. 1996). 1024 Vol. 94 TMR might be required by Federal Circuit precedent.47 The TTAB found that the color blue was not de jure functional for the applicant’s retail stores services,48 but affirmed the refusal of registration on the ground that the mark was not inherently distinctive.49 As late as its 2000 decision in In re Glaxo Group Ltd.,50 the TTAB still read Qualitex as theoretically allowing registration of an inherently distinctive color, although it did not find in that case that the applicant’s color was inherently distinctive. But once the Supreme Court decided Wal-Mart Stores, Inc. v. Samara Bros., Inc.51 later that year, and held that under Qualitex color was never inherently distinctive,52 the TTAB reversed course and held in In re Ferris Corp.53 that color marks were registrable only upon a showing of acquired distinctiveness. In addition, the TTAB found that the acquired distinctiveness burden was higher in the case of color marks than with other marks “because of the inherent nondistinctive nature of the applied-for mark. It is our view that consumers do not associate a single color of a product with a particular manufacturer as readily as they do a trademark or product packaging trade dress.”54 Qualitex also had an impact before the TTAB with respect to the issue of functionality as applied to the registration of color per se. In In re Orange Communications, Inc.,55 and In re Howard S. Leight & Assocs., Inc.,56 the TTAB read Qualitex to preclude the registration of color where color served a primarily utilitarian purpose, even if that purpose “[did] not make a product function better mechanically or be less expensive to manufacture. . . .”57 In those cases, the TTAB found the bright colors orange and yellow to be functional as used in connection with pay telephone cabinets and industrial earplugs, respectively. 47. Id. at 1923 n.17 (“the debate continues over the specific holdings by the Supreme Court” in Qualitex and “centers on whether or not secondary meaning must be demonstrated for [color] marks”). 48. Id. at 1924. 49. Id. 50. 53 U.S.P.Q.2d 1920 (T.T.A.B. 2000). 51. 529 U.S. 205, 120 S. Ct. 1339, 146 L. Ed. 2d 182 (2000). 52. See infra notes 101-10 and accompanying text. 53. 59 U.S.P.Q.2d 1587 (T.T.A.B. 2000) (affirming refusal to register pink for wound dressings). 54. Id. at 1591. The Trademark Manual of Examining Procedure now explicitly states that “[c]olor marks are never inherently distinctive” and that “[t]he burden of proving that a color mark has acquired distinctiveness is substantial.” TMEP § 1202.05(a). 55. 41 U.S.P.Q.2d 1036 (T.T.A.B. 1996). 56. 39 U.S.P.Q.2d 1058 (T.T.A.B. 1996). 57. In re Orange Communications Inc., 41 U.S.P.Q.2d 1036, 1042 (1996). Vol. 94 TMR 1025 A. An Analysis of Post-Qualitex Registrations of Single Colors As noted at the outset, some predicted that judicial approval of trademark protection for single colors in Qualitex would spawn numerous applications to register colors. Although precise statistics do not exist, the available evidence suggests that, as a practical matter, the decision did not result in any significant increase in applications, at least not successful ones. Shortly after the decision, a USPTO official estimated that about 30 companies had registered single colors in the 10 years between the Federal Circuit’s decision in Owens-Corning and the Qualitex decision.58 A May 2004 search of the USPTO database suggests that the number of single-color registrations that have issued in the nine years since the Qualitex decision is roughly the same.59 Using a search criterion to identify registrations in which the registrant described its mark as consisting of a single color applied to its goods or services,60 there appear to be 27 such registrations on the Principal Register, and 10 such registrations on the Supplemental Register, that have issued in the nine years since Qualitex was decided.61 Taking into account the increase during that period in the number of applications and registrations in general, the search suggests that the proportion of single-color registrations to registrations of other types of marks has not increased and may actually have decreased. The primary reason for the apparent lack of increase in singlecolor registrations in absolute or proportional terms appears to be that while Qualitex was viewed by some at the time as a 58. Sachs, High Court’s Ruling May Color Ad Plans, Advertising Age, Apr. 10, 1995 (quoting Lynne G. Beresford). 59. The author wishes to thank Thomson & Thomson for providing the search on which this portion of the article is based. Neither the author nor Thomson & Thomson warrants that the search or this article identifies every single-color registration that has issued since Qualitex. The purpose of the search was simply to try to identify any discernible general trends in color registration practice after Qualitex. The author regrets the omission of any single-color registration from the discussion in this article, and is solely responsible for any errors in analyzing the registrations disclosed in the search. 60. Section 1202.05(e) of the Trademark Manual of Examining Procedure requires, inter alia, a written description of all color marks that “must . . . identify the mark as consisting of the particular color as applied to the goods or services.” TMEP § 1202.05(e). The author excluded from this discussion registrations of marks consisting of a combination of colors, or a combination of a single color with a design feature. 61. This number does not include pre-Qualitex registrations that were renewed following the decision. Some of the registrations discussed in this article issued from applications that were filed prior to the Qualitex decision. Several applications to register such marks appear to be in various stages of prosecution, and a few have been published for opposition. 1026 Vol. 94 TMR “landmark decision”62 that might make it more likely that individuals and companies would pursue protection of single-color marks,63 the reality regarding USPTO practice was different. As one commentator put it at the time, “[a]lthough the rule of law announced in that case sounds dramatic, its application is in fact limited, and companies that seek trademark protection for colors will need to take calculated steps to stake their claims.”64 It is important to recall that the decision ratified a USPTO practice of registering eligible color marks that, as Justice Breyer noted in the Qualitex opinion, had been in place since the Federal Circuit’s decision in Owens-Corning.65 As a result, Qualitex did not work a sea change, or even much change at all, in USPTO prosecution practice, except possibly to make registration of color marks somewhat more, not less, difficult to achieve. The characteristics of the post-Qualitex registrations mentioned above provide some insight into the practical effect of the decision on USPTO practice. Virtually all of the Principal Register registrations state on their face that they were issued on the basis of a showing of acquired distinctiveness under Section 2(f) of the Lanham Act.66 Two-thirds of the Principal Register registrations were based upon claimed use in commerce of at least 10 years as of the time of registration, with periods of 81,67 62. See, e.g., Ian C. Ballon, Color This Suit Full of Complexity, Pittsburgh Post-Gazette, Apr. 30, 1995. 63. See supra note 58. 64. See supra note 58. 65. Qualitex, 514 U.S. at 172. 66. The abstracts of four of these registrations do not reflect that they issued under Section 2(f): (1) Reg. No. 1,931,569, for blue for plastic foam insulation for use in building and construction; (2) Reg. No. 2,047,170, for bright green for tire sealant that seals punctures in tube and tubeless tires; (3) Reg. No. 2,596,539, for purple for protective gloves for industrial, surgical and medical uses; and (4) Reg. No. 2,661,572, for green for ketchup made from ripe red tomatoes with green color. Reg. No. 1,931,569, which involved a mark claimed to be in use for over 30 years as of the date of the filing of the application from which the registration issued, and Reg. No. 2,047,170 issued when there was still an open question under the TTAB cases discussed above as to whether color could ever be inherently distinctive. In the prosecution of the applications that matured into Reg. Nos. 2,596,539 and 2,661,572, the applicants provided evidence of acquired distinctiveness on the basis of sales and advertising of goods under the respective marks. 67. Reg. No. 2,131,693, for brown for motor vehicle transportation and delivery of personal property services. Vol. 94 TMR 1027 62,68 57,69 42,70 34,71 3372 and 30 years claimed by various registrants.73 Some registrants claimed much shorter periods, however, including periods of about seven,74 six,75 five,76 four,77 three78 and one and one-half years.79 The Trademark Manual of Examining Procedure instructs USPTO examining attorneys that “[t]he burden of proving that a color mark has acquired distinctiveness is [a] substantial [one],”80 and the post-Qualitex registrations indicate that the burden is most easily carried through proof of long use of a color mark, but this wide range of periods of use suggests that acquired distinctiveness can be shown under appropriate circumstances by an applicant who has been using its mark for a relatively short period of time in a manner that has caused it rapidly to become identified with the applicant as an indicator of source.81 68. Reg. No. 2,416,794, for “robin’s-egg blue” for retail store and mail order catalog services. 69. Reg. No. 2,745,420, for red for metal scaffolds and metal shores. 70. Reg. No. 2,650,903, for red for electric arc welders. 71. Reg. No. 1,931,569, see supra note 66. 72. Reg. No. 2,675,776, for yellow for the packaging and containers for various parts of on- and off-road vehicles. 73. Reg. No. 2,256,226, for orange for the background of the packaging for candy and confectionary chips for baking with peanut butter as the characterizing flavor or as one of various characterizing flavors, excluding candy or confectionary chips for baking that are either orange in color or orange flavored. 74. Reg. No. 2,241,428, for brown-red for ulcerative colitis medication, and Reg. No. 2,047,170, see supra note 66. 75. Reg. No. 2,047,170, see supra notes 66, 74 and Reg. No. 2,655,205, for green for dielectric insulating oil for use in electrical transformers. 76. Reg. No. 2,596,539, see supra note 66, and Reg. No. 2,732,433, for orange for a radiant electric heating apparatus, namely, meshwork mats holding electrical space heating elements for installation under finished flooring. 77. Reg. No. 2,577,376, for pink for “high bounce balls having a diameter of between 5.5 and 6 centimeters for use in playing urban street games,” and Reg. No. 2,184,272, for “brite green” for copy fulfillment services for legal documents. 78. Reg. No. 2,138,567, for “burnt-orange” for curable, rubber-based sealant compositions for use on tubeless tire inner liners in conjunction with rubberized cord located in punctures in such tires. 79. Reg. No. 2,661,572, see supra note 66. 80. TMEP § 1202.05(a). 81. Reg. No. 2,661,572, for green for ketchup made from ripe red tomatoes with green color, is a good example. This registration resulted from an intent-to-use application filed by H.J. Heinz Company, which amended the application to claim use of the mark for only about 15 months as of the time of Heinz’s Section 2(f) showing. Heinz proved acquired distinctiveness to the satisfaction of the USPTO on the basis of evidence of its publicity of the introduction of green ketchup (which one news story called a “shocker”); retail sales of over $11 million and advertising expenditures of over $5 million and “look-for” marketing 1028 Vol. 94 TMR Many of the registrations on the Principal Register cover goods whose nature, like that of the laundry press pads in Qualitex, is such that a single color might readily be viewed as a source-identifier by their industrial or specialized users (as de facto inherently distinctive), or for other reasons. Examples include registrations of red for “machine parts, namely link V belts,”82 “non-woven and knit fabric dampening covers and sleeves for use on printing presses,”83 “metal scaffolds and metal shores,”84 and “electric arc welders”;85 a registration of blue for “plastic foam insulation for use in building and construction”;86 a registration of purple for “protective gloves for industrial use and disposable nitrile gloves for use in laboratories and cleanroom environments” and “gloves for medical and surgical uses”;87 a registration of “hot yellow green II” for “vehicles, namely forklift trucks”;88 a registration of mint green for “building structures insulation materials, namely, rigid foam plastic insulation and woven plastic housewrap, for use in building and construction”;89 a registration of green for “dielectric insulating oil for use in electrical transformers”;90 a registration of orange for “radiant electric heating apparatus, namely, meshwork mats holding electric space heating elements for installation under finished flooring”;91 and a registration of burnt orange for “curable, rubber-based sealant compositions for use on tubeless tire inner liners in conjunction with rubberized cord located in punctures in such tires.”92 Consistent with the admonition in the Trademark Manual of Examining Procedure that “[c]olor . . . is usually perceived as an ornamental feature of the goods,”93 these registrations suggest that an applicant is most likely to be successful in trying to register a single-color mark where, in context, the use of the subject color is unusual, unexpected or unnecessary. focus on the color green, including using the mark under a license of the green SHREK character from the ACADEMY AWARD–winning animated film. 82. Reg. No. 2,022,826. 83. Reg. No. 2,445,619. 84. Reg. No. 2,745,420, see supra note 69. 85. Reg. No. 2,650,903, see supra note 70. 86. Reg. No. 1,931,569, see supra note 66. 87. Reg. No. 2,596,539, see supra note 66. 88. Reg. No. 2,085,234. 89. Reg. No. 2,161,198. 90. Reg. No. 2,655,205, see supra note 75. 91. Reg. No. 2,732,355, see supra note 76. 92. Reg. No. 2,138,567, see supra note 78. 93. TMEP § 1202.05. Vol. 94 TMR 1029 At the same time, however, some post-Qualitex registrations cover colors used in connection with goods and services that are familiar to members of the general public, including light blue for Tiffany & Co.’s retail catalog services,94 brown for UPS’s transportation and delivery services,95 green for Heinz’s ketchup,96 medium blue for Mauna Loa’s macadamia nuts,97 and canary yellow for 3M’s stationery notes.98 There are also two registrations of single colors for medications,99 goods for which Qualitex had suggested color might be especially prone to having a functional significance.100 Though relatively few in number, these registrations collectively indicate that it is possible for single colors to function as marks for widely used goods and services if the putative registrants are willing and able to make the sustained investment over time necessary to develop secondary meaning in a competitive environment where the use of color is commonplace. Post-Qualitex USPTO prosecution practice, reflected in the handful of TTAB decisions and the Principal Register registrations discussed above, makes it clear that while the decision clarified the requirements for the protection and registration of single colors as marks, it did not relax them significantly or otherwise incentivize numerous would-be registrants to seek to appropriate single colors as marks. VI. QUALITEX AND THE DOCTRINES OF DISTINCTIVENESS AND FUNCTIONALITY Although Qualitex decided a relatively narrow issue under Section 2 of the Lanham Act, the Supreme Court subsequently read the decision to stand for two propositions other than that single-color marks were eligible for registration and protection. As a result, Qualitex took on unintended importance in other areas of trademark law, most significantly on the issue of functionality. 94. See supra note 68. 95. See supra note 67. This registration and the Tiffany registration, see supra note 68, belie the statement in the Trademark Manual of Examining Procedure that “[n]o service mark registrations have issued for a single color per se.” TMEP § 1020.05(g). 96. See supra note 81. 97. Reg. No. 2,237,914. 98. Reg. No. 2,390,667. 99. Reg. No. 2,241,428, see supra note 74, and Reg. No. 2,806,099. 100. See infra note 126. 1030 Vol. 94 TMR A. Wal-Mart and Non-Inherently Distinctive Marks In Wal-Mart Stores, Inc. v. Samara Bros.,101 the Court granted certiorari to define the standards under which the inherent distinctiveness of product configuration trade dress was to be determined,102 an issue left open in the Court’s decision in Two Pesos, Inc. v. Taco Cabana, Inc.103 But the Court dodged that issue by holding that “in an action for infringement . . . under § 43(a) of the Lanham Act, a product’s design is distinctive, and therefore protectible, only upon a showing of secondary meaning.”104 Qualitex provided the authority for the Court’s determination that product design was one type of trade dress that could never be inherently distinctive. The Wal-Mart Court began its analysis by noting that nothing in Section 2 of the Lanham Act demanded the conclusion that every category of mark necessarily includes some marks that are inherently distinctive. The Court cited Qualitex for the proposition that “with respect to at least one category of mark—colors—we have held that no mark can ever be inherently distinctive.”105 The Court’s observations in Qualitex regarding secondary meaning were arguably dicta given that the existence of secondary meaning was not at issue in the case, but the Wal-Mart Court read Qualitex to clearly hold that some categories of marks “do[] not ‘almost automatically tell a customer that [they] refer[] to a brand,’ . . . and do[] not ‘immediately . . . signal a brand or product “source”.’”106 In the view of the Wal-Mart Court, “design, like color, is not inherently distinctive” because “[i]n the case of product design, as in the case of color, we think consumer predisposition to equate the feature with the source does not exist.”107 The Wal-Mart Court also cited Qualitex for the proposition that the issue of functionality of a product’s trade dress “may involve consideration of its esthetic appeal.”108 But functionality 101. Wal-Mart Stores, Inc. v. Samara Bros., 529 U.S. 205, 120 S. Ct. 1339, 146 L. Ed. 2d 182 (2000). 102. 528 U.S. 808, 120 S. Ct. 308, 145 L. Ed. 2d 35 (1999). The precise question on which certiorari was granted was “What must be shown to establish that a product’s design is inherently distinctive for purposes of Lanham Act trade-dress protection?” 103. 505 U.S. 763, 112 S. Ct. 2753, 120 L. Ed. 2d 615 (1992). 104. Wal-Mart, 529 U.S. at 216. The wisdom of this “bright-line” rule and its application in subsequent cases are beyond the scope of this article. 105. Id. at 211, citing Qualitex, 514 U.S. at 162-63. 106. Id. at 212 (citations omitted) (emphasis in original) (quoting Qualitex, 514 U.S. at 163). 107. Id. at 212, 213. 108. Id. at 214 (citing Qualitex, 514 U.S. at 170). Vol. 94 TMR 1031 was discussed in the Qualitex decision in response to two of the respondent’s arguments in support of the Ninth Circuit’s per se prohibition on the protection of single colors as marks. The Qualitex Court did not announce any general rule that functionality had anything to do with the “aesthetic appeal” of color or any other product feature; instead, the Court noted that “sometimes color is not essential to a product’s use or purpose and does not affect cost or quality,”109 and can be protected under those circumstances, and that color is functional where it serves to identify a product or a feature of a product, or where its appropriation by one producer would hinder competition because color otherwise affects the cost or quality of the particular product.110 The Wal-Mart Court’s citation of Qualitex on the doctrine of functionality would be followed shortly by a more extensive and troubling discussion of the impact of the case on that issue in the Court’s October 2000 Term. B. TrafFix and “Aesthetic Functionality” In TrafFix Devices, Inc. v. Marketing Displays, Inc.,111 the “principal question . . . [was] the effect of an expired patent on a claim of trade dress infringement.”112 This issue required the Court expressly to consider the doctrine of functionality in the most utilitarian of contexts, with respect to the wind-resisting features of the design of certain highway warning signs. Nevertheless, the Court cited and discussed Qualitex as a principal authority on the functionality doctrine.113 The TrafFix Court defined a functional feature as one that is “‘essential to the use or purpose of the article or [that] affects the cost or quality of the article,’” and “the ‘exclusive use of [which] 109. Qualitex, 514 U.S. at 165. 110. Id. at 169-70 (collecting cases). 111. 532 U.S. 23, 121 S. Ct. 1255, 149 L. Ed. 2d 164 (2001). 112. Id. at 29. 113. The TrafFix Court also cited Inwood Laboratories, Inc. v. Ives Laboratories, Inc., 456 U.S. 844, 102 S. Ct. 2182, 72 L. Ed. 2d 606 (1982), which, like Qualitex, dealt only indirectly with the question of functionality. Justice O’Connor, the author of the majority opinion in Inwood, framed the issue as involving “the circumstances under which a manufacturer of a generic drug, designed to duplicate the appearance of a similar drug marketed by a competitor under a registered trademark, can be held vicariously liable for infringement of that trademark by pharmacists who dispense the generic drug.” Id. at 846. While the functionality of the colors of the tablets at issue in Inwood was part of the decision under review, the Supreme Court focused its attention on the appellate court’s improper disregard, under the “clearly erroneous” standard of Rule 52(a) of the Federal Rules of Civil Procedure, of the trial court’s factual findings on that and other issues. The Court did not analyze the law of functionality in any detail. 1032 Vol. 94 TMR would put competitors at a significant non-reputation-related disadvantage.’”114 The Court criticized the Sixth Circuit’s analysis in the decision under review115 as having misread Qualitex as standing for the proposition that a necessary test for functionality was “‘whether the particular product configuration is a competitive necessity.’”116 The Court held that where a product feature was essential to the use or purpose of the device, or affected its cost or quality, it was unnecessary to consider whether there was a competitive need to use the feature.117 In reaching that conclusion, the opinion in TrafFix suggested that there was a distinction between traditional (utilitarian) functionality and “aesthetic functionality, the question involved in Qualitex.”118 According to the Court, in cases of “aesthetic functionality,” “[i]t is proper to inquire into a ‘significant nonreputation-related disadvantage,’” but “[w]here the design is functional under the Inwood formulation there is no need to . . . consider if there is a competitive necessity for the feature.”119 In the view of the TrafFix Court, even though the Qualitex decision had cited the “Inwood formulation” as the test for functionality, the case itself involved “aesthetic functionality” because there was “no indication that the green-gold color of the laundry press pad had any bearing on the use or purpose of the product or its cost or quality.”120 The TrafFix Court’s reading of Qualitex was troubling for two reasons. First and foremost, of course, the question in Qualitex was not aesthetic functionality, but rather “whether the . . . Lanham Act . . . permits the registration of a trademark that consists, purely and simply, of a color.”121 The Qualitex Court found that the doctrine of functionality provided a judicial check on the possible anticompetitive consequences of protecting aesthetic product features such as single colors,122 but “aesthetic functionality was not the question in any way in Qualitex, let alone the ‘central question.’”123 As a result, the Court’s comments on it were dicta,124 114. TrafFix, 532 U.S. at 32 (quoting Qualitex, 514 U.S. at 165) (internal citations omitted). 115. Marketing Displays, Inc. v. TrafFix Devices, Inc., 200 F.3d 929 (6th Cir. 2000). 116. TrafFix, 532 U.S. at 32 (quoting TrafFix, 200 F.3d at 940). 117. Id. at 33. 118. Id. 119. Id. 120. Id. 121. Qualitex, 514 U.S. at 160. 122. Id. at 169-70. 123. 1 J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 7.80, at 7-202 (4th ed. 2003) [hereinafter McCarthy]. Professor McCarthy characterized Justice Vol. 94 TMR 1033 but through the Court’s TrafFix opinion, Qualitex morphed into the leading word on the doctrine of functionality and its supposed subspecies, aesthetic functionality. Second, while the Qualitex decision mentioned aesthetic functionality in passing,125 the real-world applications of the functionality doctrine to color marks discussed by the Court all involved the possible effect of color on the use or purpose of the goods at issue under the Inwood formulation.126 Nothing in the opinion’s discussion of precedent supported the notion that some sort of different standard should be applied when assessing whether an aesthetic (as opposed to utilitarian) feature was functional, or that the mere attractiveness of a color could render it functional.127 Indeed, in one portion of the opinion, Justice Breyer specifically noted that color could be protected as a trademark notwithstanding the functionality doctrine where it “is not essential to a product’s use or purpose and does not affect cost or quality. . . .”128 Kennedy’s observation to the contrary in TrafFix as an “amazing and incomprehensible statement.” See also Valu Eng’g, Inc. v. Rexnord Corp., 278 F.3d 1268, 1276 (Fed. Cir. 2002). 124. See Antioch Co. v. Western Trimming Corp., 347 F.3d 150, 155 (6th Cir. 2003) (“the Supreme Court has never directly addressed aesthetic functionality . . .”). 125. The Court cited Section 17 of the Restatement (Third) of Unfair Competition for the proposition that “the ‘ultimate test of aesthetic functionality . . . is whether the recognition of trademark rights would significantly hinder competition.’” Qualitex, 514 U.S. at 170 (quoting Restatement (Third) of Unfair Competition § 17 cmt. c, at 176 (1993)). 126. Qualitex, 514 U.S. at 169-70 (citing Inwood, 456 U.S. at 853, 858 n.20 (colors can be used to differentiate medications)); Deere & Co. v. Farmhand, Inc., 560 F. Supp. 85, 98 (S.D. Iowa 1982), aff’d, 721 F.2d 253 (8th Cir. 1983) (green functional for farm equipment because it enabled farm equipment to match); Brunswick Corp. v. British Seagull Ltd., 35 F.3d 1527, 1532 (Fed. Cir. 1994) (black functional for outboard motors because it made motors appear smaller and was compatible with different boat colors); Nor-Am Chem. v. O.M. Scott & Sons Co., 4 U.S.P.Q.2d 1316, 1320 (E.D. Pa. 1987) (blue functional for fertilizer because it indicates the presence of nitrogen). The TTAB later read the Federal Circuit’s Brunswick decision as involving “the use of color [to] serve[] a primarily utilitarian purpose. . . .” In re Orange Communications, Inc., 41 U.S.P.Q.2d 1036, 1042 (T.T.A.B. 1996). 127. Justice Breyer mused that color could serve a significant nontrademark function where it “satisf[ied] the ‘noble instinct for giving the right touch of beauty to common and necessary things.’” Qualitex, 514 U.S. at 170 (quoting G. Chesterton, Simplicity and Tolstoy 61 (1912)). Given the nature of the “authority” upon which it was based, this curious statement, which was juxtaposed with the observation that color also serves a function where it “distinguish[es] a heart pill from a digestive medicine,” id., is most plausibly read as a perhaps unintended reference to the “ornamentation” doctrine of trademark law. As Professor McCarthy notes, “‘[a]esthetic functionality’ is an inappropriate response to a valid concern. The concern is over features that are merely ornamental and therefore not perceived by customers as indicia of origin—trademarks. However, trademark law has long had a rule to deal with that situation: the ‘merely ornamental’ rule. The ‘merely ornamental’ rule is simply a facet of the basic trademark question: is the disputed feature in fact perceived by customers as a trademark or not?” 1 McCarthy, supra note 123, § 7:81, at 7-213. 128. Qualitex, 514 U.S. at 165 (emphasis added). 1034 Vol. 94 TMR Professor McCarthy has correctly observed that “Justice Kennedy’s confusing dictum in Traffix [regarding Qualitex] only further clouded and obscured the issue of whether aesthetic functionality is in fact to be given any weight.”129 The Trademark Manual of Examining Procedure reflects this uncertainty in noting that “[a]lthough the references to aesthetic functionality in the TrafFix decision are dicta, the Court’s use of this terminology appears to indicate that the concept of aesthetic functionality—at least when used properly—is a viable legal principle.”130 The Sixth Circuit (from which the TrafFix case had originated) read the reference in TrafFix to the Qualitex “aesthetic functionality” concept to “identi[fy] two forms of functionality.”131 “The first, traditional functionality, deems a feature functional when “‘it is essential to the use or purpose of the device or when it affects the cost or quality of the device.’”132 In the view of the Sixth Circuit, Qualitex “‘expand[ed] upon the meaning of the phrase [by] observing that a functional feature is one the “exclusive use of which would put competitors at a significant non-reputationrelated disadvantage,”’” explaining “the policy underlying the functionality doctrine in a way readily adaptable to the problem of aesthetic functionality, the issue presented in Qualitex.”133 “Thus, the ‘significant non-reputation-related disadvantage’ to competitors approach is the second form of trade dress functionality.”134 Most courts, however, have rejected the doctrine of aesthetic functionality hinted at in TrafFix, at least where it is expressed as “the notion that a purely aesthetic feature can be functional.”135 Although there have been few reported post-Qualitex cases discussing when color is functional, that issue has been sensibly analyzed in those decisions,136 and the USPTO appears properly to 129. 1 McCarthy, supra note 123, § 7:80, at 7-202. 130. TMEP § 1202.02(a)(iii)(C). 131. Abercrombie & Fitch Stores, Inc. v. American Eagle Outfitters, Inc., 280 F.3d 619, 641 (6th Cir. 2002). 132. Id. (quoting Qualitex, 514 U.S. at 165). 133. Id. (citing TrafFix, 121 S. Ct. at 1261-62). 134. Id. 135. Clicks Billiards, Inc. v. Sixshooters, Inc., 251 F.3d 1252, 1260 (9th Cir. 2001). See 1 McCarthy, supra note 123, § 7.80, at 7-202-12 (collecting cases). 136. See L.D. Kichler Co. v. Davoil, Inc., 192 F.3d 1349, 1353 (Fed. Cir. 1999) (“rusttype” appearance of finish of backplate for lighting fixtures not functional as a matter of law where it was admittedly color-compatible with interior furnishings because district court failed to examine competitive need to use this color. “Mere taste or preference cannot render a color—unless it is ‘the best, or at least one, of a few superior designs’—de jure functional”); In re Orange Communications, 41 U.S.P.Q.2d at 1042 (bright orange and yellow functional for pay telephone cabinets because it made the goods more visible in emergencies); In re Vol. 94 TMR 1035 have synthesized and harmonized the confusing principles from Qualitex and TrafFix in the portion of the Trademark Manual of Examining Procedure dealing with aesthetic functionality. While paying lip service to the existence of such a separate doctrine, the Trademark Manual of Examining Procedure sets forth a reasonable way to evaluate the functionality of color and other similarly “aesthetic” features, or to avoid the aesthetic functionality morass entirely by applying the established prohibition on registration of ornamental subject matter: The Supreme Court’s use of the term “aesthetic functionality” in the TrafFix case appears limited to cases where the issue is one of actual functionality, but where the nature of the proposed mark makes it difficult to evaluate the functionality issue from a purely utilitarian standpoint. This is the case with color marks and product features that enhance the attractiveness of the product. The color or feature does not normally give the product a truly utilitarian advantage (in terms of making the product actually perform better), but may still be found to be functional because it provides other real and significant competitive advantages and thus should remain in the public domain. . . . Generally speaking, examining attorneys should exercise caution in the use of the term “aesthetic functionality,” in light of the confusion that historically has surrounded this issue. In most situations, reference to aesthetic functionality will be unnecessary, since a determination that the matter sought to be registered is purely ornamental in nature will result in an ornamentation refusal under §§1, 2 and 45, and a determination that the matter sought to be registered is functional will result in a functionality refusal under §2(a)(5).137 This approach suggests that the Supreme Court’s misreading of Qualitex in TrafFix has not done much permanent damage to Howard S. Leight and Assocs., Inc., 39 U.S.P.Q.2d 1058, 1060 (T.T.A.B. 1996) (orange functional for industrial earplugs because it increased ease of safety checks and monitoring of employee compliance with health and safety regulations); In re Ferris Corp., 59 U.S.P.Q.2d 1587, 1591 (T.T.A.B. 2000) (pink functional for bandages because it was “one of the best or at least one of the few superior ‘flesh colors’ available for wound dressings”); see also M-5 Steel Mfg., Inc v. O’Hagin’s Inc., 61 U.S.P.Q.2d 1086 (T.T.A.B. 2001) (designs of metal ventilating ducts for concrete and tile roofs functional for a combination of utilitarian and aesthetic reasons because, inter alia, designs were compatible with various roof designs and were unobtrusive in nature). 137. TMEP § 1202.02(a)(iii)(C). The Trademark Manual of Examining Procedure also provides specifically that “[t]he doctrine of ‘aesthetic functionality’ may apply in some cases where the evidence indicates that the color at issue provides specific competitive advantages that, while not necessarily categorized as purely ‘utilitarian’ in nature, nevertheless dictate that the color remain in the public domain.” Id. § 1202.05(b). 1036 Vol. 94 TMR the law of functionality and that courts and the USPTO are able properly to apply the functionality doctrine to color marks and other marks whose nature is such that the traditional Inwood analysis is difficult to apply. VII. CONCLUSION Qualitex decided a relatively unusual issue in trademark law that had a direct impact on very few practitioners and trademark owners. Although the United States trademark bar (at least most of it) applauded the holding of the case itself as a correct interpretation of the Lanham Act, it got more than it bargained for when the Supreme Court used Qualitex (probably for lack of anything else) as the basis for the creation of judge-made rules on more fundamental issues of distinctiveness and functionality. It is in these areas of trademark law that the decision has had an unintended, but fortunately relatively benign, impact.