Blinded Veterans Ass'n v. Blinded American Veterans Foundation
Opinion of the Court
Opinion for the Court filed by Circuit Judge RUTH BADER GINSBURG.
The Blinded Veterans Association (BVA or the Association) sought to enjoin the Blinded American Veterans Foundation (BAVF or the Foundation) from using the words “blinded” and “veterans” in its name and from using the initials “BAV” as an acronym. BVA contended that BAVF’s name was confusingly similar to BVA’s and would deceive the public into thinking BAVF was BVA. The district court agreed, concluding that BAVF had infringed BVA’s trademark. That court therefore enjoined BAVF from using the name “Blinded American Veterans Foundation,” the initials “BAV” or “BAVF,” and “any name in which the words ‘veterans,’ and ‘blind’ or ‘blinded,’ are employed as noun and modifying adjective.” Blinded Veterans Ass’n v. Blinded Am. Veterans Found., 680 F.Supp. 442, 446 (D.D.C. 1988). We hold that BVA’s name is not a protecta-ble trademark because the term “blinded veterans” is generic. BVA, however, may be entitled to protection against BAVF’s passing itself off as BVA. We therefore vacate the judgment of the district court and remand for consideration of BVA’s “passing off” claim.
I.
Appellee Blinded Veterans Association is a nonprofit organization founded in 1945 by a group of blinded World War II veterans. BVA was incorporated in New York in 1947 and was chartered by an act of Congress in 1958. Id. at 443. The Association has used the initials “BVA” as its logo since 1945. Id. at 445. BVA provides services for veterans who originally could see but have lost their sight, even if their blindness is not service-connected. Id. at 443. The Association’s services and activities for its constituency include arranging for rehabilitation and job training and placement, advising on claims for government benefits, testifying before Congress, joining litigation likely to benefit blinded veterans, sponsoring events to publicize the plight of blinded veterans, and publishing a newsletter, the “BVA Bulletin,” containing information of interest to blinded veterans. Id. at 444.
BVA has approximately 6,500 members; it employs sixteen persons on its head
Appellant BAVF is a nonprofit District of Columbia corporation founded in September 1985 by three former officials of BVA.
BAVF’s charter defines the Foundation’s purpose broadly as assisting veterans with “sensory disabilities such as visual impairment, hearing impairment, speech impediments, etc.” Id. at 443. Nevertheless, the Foundation has so far directed its efforts exclusively toward sightless former ser-vicemembers. Id. at 444. BAVF has held Flag Day celebrations; it has presented awards to journalists and members of Congress for demonstrating an interest in handicapped veterans’ issues; and it commissioned a recorded reading of the Constitution, which it mailed postage free to 17,-500 blinded veterans nationwide. Id. In addition to these principal activities, BAVF found employment for three blinded veterans, and donated some “trial lenses” to the Veterans Administration. Id. BAVF plans to develop an inexpensive “folding cane” and to set up an outreach program for veterans blind in one eye and suffering from diabetes. Id. BAVF also “aspires someday to build a rehabilitation center.” Id.
According to BAVF’s president, it never occurred to the three BAVF founders that the name “Blinded American Veterans Foundation” resembles the name of the founders’ former employer, “Blinded Veterans Association.” See Joint Appendix (J.A.) at 389.
In 1986, BAVF applied to 552 local campaign organizations involved in the Combined Federal Campaign (CFC). Those organizations listed BAVF, alphabetically ahead of BVA, as a prospective recipient of CFC funds. Id. at 444. Despite its lack of significant accomplishments at that point, BAVF did rather well in its initial fundrais-ing foray: the Foundation’s 1986 income totalled between $35,000 and $40,000, half from CFC pledges and half from corporate contributions. Id.
On June 5, 1986, BVA filed an action in the district court under section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (1982),
On March 8, 1988, the district court decided that BAVF had infringed BVA’s trademark. The court therefore enjoined BAVF from using the name “Blinded American Veterans Foundation,” the initials “BAV” or “BAVF,” and any name in which “veterans” and “blind” or “blinded” appear as noun and modifying adjective. 680 F.Supp. at 446.
The district court ruled first that the term “blinded veterans” is not a “generic term ... incapable of acquiring trademark significance.” Rather, the term is “at the least, a ‘descriptive term’ in trademark parlance, which is entitled to protection against infringement if it has, over time, acquired in the mind of the relevant public a ‘secondary meaning.’ ” Id. at 445. The court next concluded that “Blinded Veterans Association” has acquired a secondary meaning. As evidence, the court relied on the effort and expense that have gone into BVA’s continuous promotion of itself “as the preeminent private voluntary proponent of the interests of blinded former U.S. service personnel” and of its services for blinded veterans. Id. The court added that its conclusion concerning secondary meaning was “reinforced ... by both BAVF’s startling success in its maiden fundraising venture with no history of significant accomplishment, and by the tenacity with which it seeks to preserve its right to use the name it has chosen for itself.” Id.
Finally, the district court found it likely that potential contributors would confuse BVA and BAVF. BVA’s name is “easily misapprehended by intending benefactors even when no alleged imposter is on the scene,” the court observed, citing mistaken variations of BVA’s name on contributions and bequests clearly intended for the Association. Id. at 446 & n. 3. “When [BAVF’s] name is offered as an alternative,” the court reasoned, “the potential for confusion approaches totality.” Id. at 446. The court also credited the results of a survey conducted by a University of Maryland professor of English and linguistics. That survey presented three lists of organizational names, one with only BVA’s and BAVF’s names and two with other names as well, to groups of between thirty and fifty-eight college students. The results of these tests “demonstrated that a substantial majority of the subjects either did not perceive a distinction between BVA and BAVF, or so garbled their names as to create a genuine doubt as to which they had in mind.” Id. The court acknowledged that the tests were not a “market survey.” Id. It doubted whether such a survey would be “practicable” in this case, however; and it concluded that, in any event, a market survey “would add little to the commonsense [sic] inference (which the test results confirm) that ordinary contributors believe one organization soliciting for sightless veterans is as good as another, because the ultimate beneficiaries are ostensibly the same.” Id.
BAVF appealed, arguing that “blinded veterans” is a generic term incapable of acquiring trademark protection even if the term has acquired secondary meaning. Alternately, if secondary meaning is relevant, the Foundation faults the district court for not requiring survey evidence and for focusing on the duration of BVA’s use of its
BVA offers three separate grounds for affirming the district court’s decision: trademark infringement, violation of BVA’s congressional charter, and “passing off.” We hold that the term “blinded veterans” is generic and therefore not entitled to trademark protection. We further conclude that BVA’s charter does not prohibit other organizations’ use of that term in their names or their use of the initials “BAV” or “BAVF.” BVA’s passing off claim, however, remains viable. We therefore vacate the district court’s judgment and remand for that court’s determination whether BAVF is passing itself off as BVA.
II.
A. Trademark Infringement
The existence and extent of trademark protection for a particular term depends on that term’s inherent distinctiveness. Courts have identified four general categories of terms: (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or fanciful. These groupings are not airtight, however. As the Fifth Circuit cautioned:
These categories, like the tones in a spectrum, tend to blur at the edges and merge together. The labels are more advisory than definitional, more like guidelines than pigeonholes. Not surprisingly, they are somewhat difficult to articulate and to apply.
Zatarains, Inc. v. Oak Grove Smokehouse, Inc., 698 F.2d 786, 790 (5th Cir. 1983). The rough contours of the categories, however, can be drawn from the array of trademark controversies in which courts have endeavored to characterize or classify terms.
The first category consists of “generic” terms.
Descriptive terms, which compose the second category, directly describe a partic
The third category consists of “suggestive” terms. These are terms that do not directly describe a product or service, but suggest some quality of the article.
A term is suggestive if it requires imagination, thought and perception to reach a conclusion as to the nature of goods. A term is descriptive if it forthwith conveys an immediate idea of the ingredients, qualities or characteristics of the goods.
Stix Prods. Inc. v. United Merchants & Mfrs., Inc., 295 F.Supp. 479, 488 (S.D.N.Y. 1968); see also General Shoe Corp. v. Rosen, 111 F.2d 95, 98 (4th Cir.) (suggestive terms “shed some light upon the characteristics of the good” only “through an effort of the imagination on the part of the observer”), reh’g denied, 112 F.2d 561 (1940) (per curiam). Because suggestive terms only indirectly convey an impression of the products or services, they are considered inherently distinctive; suggestive terms therefore are protectable without proof of secondary meaning. See McCarthy § 11:20 at 488.
“Arbitrary” and “fanciful” terms compose the fourth category. An arbitrary term is one which is commonly used in the language, but has no intrinsic connection to the product.
The threshold issue for this court is whether “blinded veterans” is generic, and therefore unprotectable as a trademark,
Because “blinded veterans” is not a registered trademark, the burden was on BYA to prove that the term is not generic. See id.; Reese Publishing Co. v. Hampton Int’l Communications, Inc., 620 F.2d 7, 11 (2d Cir. 1980); McCarthy § 12:2 at 528. BVA failed to shoulder that load. Indeed, BVA’s own witnesses and exhibits effectively demonstrated the genericness of “blinded veterans,” for they employed the term repeatedly to denote formerly sighted former warriors. E.g., J.A. at 75-76, 189-90, 337-38; see Reese Publishing, 620 F.2d at 11-12 (such usage is probative of gener-icness); McCarthy § 12:2 at 529 & n. 12 (same). The district court itself, we note, used the term generically. E.g., 680 F.Supp. at 444 (observing the BAVF’s founders “are themselves blinded veterans” and reporting that BAVF mailed recorded readings of the Constitution to “17,-500 blinded veterans”).
A term need not be the sole designation of an article in order to be generic, see McCarthy § 12:2 at 525-26; the test for genericness is whether the public perceives the term primarily as the designation of the article, see id. § 12:2 at 522-23. “Blinded veterans” appears to fit that test. It is difficult to imagine another term of reasonable conciseness and clarity by which the public refers to former members of the armed forces who have lost their vision.
Just as “blinded” would be generic when used with “the blinded persons association,” or “veterans” with “the veterans association,” 680 F.Supp. at 445, so “blinded veterans” is generic when used to refer to once-sighted persons who served in the armed forces. Separately or together, the terms denote particular types of individuals; “blinded veterans” simply designates the twice-circumscribed category of people who are both blinded and veterans. We conclude, then, that the district court
B. BVA’s Congressional Charter
BVA argues that, regardless of whether “blinded veterans” is protectable as a trademark, this court can affirm the district court’s injunction on the basis of BVA’s congressional charter. That charter provides:
[BVA] and its duly authorized regional groups and other local subdivisions shall have the sole and exclusive right to have and use in carrying out its purposes the name Blinded Veterans Association and such seals, emblems, and badges as the corporation may lawfully adopt.
36 U.S.C. § 867 (1982). The Association asserts that this charter grants BVA not only the exclusive use “of the precise name ‘Blinded Veterans Association’ (and the letters ‘BVA’), but also the right to prevent anyone else from using a confusingly similar name or logo.” Brief for Appellee at 14. For support, BVA relies on San Francisco Arts and Athletics, Inc. v. United States Olympic Committee, 483 U.S. 522, 107 S.Ct. 2971, 97 L.Ed.2d 427 (1987) (SFAA). That case involved a congressional charter granting the United States Olympic Committee (USOC) the exclusive use of the word “Olympic.” See 36 U.S.C. § 380(c) (1982). Based on the congressional act, the Supreme Court upheld an injunction preventing San Francisco Arts and Athletics from using the word “Olympic” in conjunction with the “Gay Olympic Games.”
A comparison of BVA’s and USOC’s charters readily reveals a crucial distinction between SFAA and this case. USOC’s charter grants it the exclusive use not only of its name per se, but also of the word “Olympic.” See id.
C. Passing Off
Even if “blinded veterans” is generic, BVA asserts, BAVF may be enjoined from passing itself off as BVA. Case law in this area is not perspicuous; there is, however, support for BVA’s contention. For the reasons stated herein, we conclude that BVA
If the name of one manufacturer’s product is generic, a competitor’s use of that name, without more, does not give rise to an unfair competition claim under section 43(a) of the Lanham Act. See Liquid Controls Corp. v. Liquid Control Corp., 802 F.2d 934, 939 (7th Cir. 1986). Nevertheless, such a claim “might be supportable if consumer confusion or a likelihood of consumer confusion arose from the failure of the defendant to adequately identify itself as the source of the product.” Id. (citing Miller Brewing Co. v. Jos. Schlitz Brewing Co., 605 F.2d 990, 997 (7th Cir. 1979), cert. denied, 444 U.S. 1102, 100 S.Ct. 1067, 62 L.Ed.2d 787 (1980)); see also Technical Publishing Co. v. Lebhar-Friedman, Inc., 729 F.2d 1136, 1142 (7th Cir. 1984); London v. Carson Pirie Scott & Co., 4 U.S.P.Q.2d 1148, 1151 n. 1, 1987 WL 11382 (N.D.Ill. 1987).
In either situation, the subsequent competitor cannot be prevented from using the generic term to denote itself or its product, but it may be enjoined from passing itself or its product off as the first organization or its product. Thus, a court may require the competitor to take whatever steps are necessary to distinguish itself or its product from the first organization or its product. In the paradigm case, Kellogg Co. v. National Biscuit Co., 305 U.S. 111, 59 S.Ct. 109, 83 L.Ed. 73 (1938), for example, the Supreme Court held that the term “shredded wheat” is generic; the National Biscuit Company therefore was not entitled to exclusive use of the term. Id. at 116, 59 S.Ct. at 112. Because National Biscuit had been the only manufacturer of shredded wheat for many years, however, the public had come to associate the product and the term “shredded wheat” with that company. The Court therefore stated that the Kellogg Company, which also produced a shredded wheat cereal, could be required to “use reasonable care to inform the public of the source of its product.” Id. at 119, 59 S.Ct. at 113-14;
In speaking of “passing off,” we do not mean to insinuate that the complaining party must prove intent on the part of the passer off. Because passing off developed as an offshoot of the common law of fraud and deceit, some courts in the past required proof that the defendant intended to deceive consumers. See, e.g., O. & W. Thum Co., 245 F. at 621 (“The essence of unfair competition consists in palming off, either directly or indirectly, one person’s goods as the goods of another, and this, of course, involves an intent to deceive.”); see generally McCarthy § 25:1 at 232-33; R. Call-man, Unfair Competition, Trademarks & Monopolies § 21.40 at 159 (4th ed. 1983) [hereafter Callman]; cf. Liquid Controls, 802 F.2d at 940 (“Passing off is a type of fraud. We have defined it as trying to get sales from a competitor by making consumers think that they are dealing with that competitor when actually they are buying from the passer off.”). Today, however, the predominant view is that, “[w]hen used in connection with passing off, the term ‘fraud’ is understood to mean the result of the defendant’s act, i.e., deception of the public, rather than his intent.” Callman § 2.02 at 6; see also id. § 21.40 at 158-60; McCarthy § 25:1 at 234; id. § 23:30 at 139-40; cf. FTC v. Algoma Lumber Co., 291 U.S. 67, 81, 54 S.Ct. 315, 321, 78 L.Ed. 655 (1934) (“Indeed there is a kind of fraud, as courts of equity have long perceived, in clinging to a benefit which is the product of misrepresentation, however innocently made.”).
Although the district court did not credit the testimony advanced by BAVF concerning the Foundation’s conception, that court reported no conclusion, drawn from the evidence, that BAVF passed itself off as BVA. The court stated only that it disbelieved BAVF’s president’s testimony that it “never occurred” to him that BAVF’s name was similar to BVA’s and that BAVF did not plan to compete with BVA:
The Court ... finds that BAVF was deliberately named, and presently refuses to change its name, to enable it to capitalize upon the association in the mind of the charitable public between the words “blinded” and “veterans” (and the understandable sympathy they engender), and, thus, to compete with [BVA] for the funds of those inclined to give to such a cause.
680 F.Supp. at 444-45. The Lanham Act, of course, does not proscribe competition per se. Nor is the competition described by the district court unfair merely because BAVF intended to capitalize upon the public’s sympathetic association of the words “blinded” and “veterans.” Only if BAVF was capitalizing on the public’s association of “blinded” and “veterans” with BVA, and therefore reaping the benefits of BVA’s goodwill, would the Foundation’s actions constitute unfair competition.
True, the district court’s opinion is somewhat ambiguous on this score. In a footnote, for example, the district court adverted to the evident similarity of BAVF’s original logo — “ ‘BAV’ in large type, followed by the word ‘foundation’ in small-type subscript” — to BVA’s logo. Id. at 445 n. 1. The court also noted that, while the Foundation “professes to be concerned with veterans’ ‘sensory disabilities’ generally, its founders selected a name which adverts only to blindness.” Id. Although these findings, along with the fact that BAVF’s founders all had worked for BVA, suggest that BAVF’s founders purposely sought to create confusion, the court did not expressly find so.
Moreover, even if BAVF’s founders had intended to pass BAVF off as BVA, such an intent, although probative, would not conclusively establish unfair competition. Cf. Schwinn Bicycle Co. v. Ross Bicycles, Inc., 870 F.2d 1176, 1184 (7th Cir. 1989) (holding that district court erred in presuming consumer confusion on basis of defendant’s intent to copy plaintiff's trade dress because intent “is but one of the factors ‘bearing on the likelihood of confusion issue’ ”) (citation omitted). Ultimately, to succeed on its passing off claim, BVA must prove that the likely effect of BAVF’s actions is to induce the public to think that BAVF is BVA. The evidence now in the record appears insufficient to establish this type of confusion. The district court noted that local CFC authorities had confused BAVF and BVA in processing their applications to be listed as beneficiary organizations in 1986, that BVA’s name is often misstated by intending contributors even without the compounding presence of BAVF, and that college students in three experiments were unable to distinguish between the parties’ names. 680 F.Supp. at 446 & n. 3. To prevail in this action, however, it is not enough for BVA to show confusion that is the natural consequence of the two organizations’ use of generic names. See Liquid Controls, 802 F.2d at 940 (proof falls short if it does not show confusion results or is likely to result “from anything other than the similarity of names”). What is essential, we underscore, is evidence that people associate “blinded veterans” with BVA per se
Taking into account the opacity of some of the decisional law in this area, and
If the district court, on remand, finds from the evidence that BAVF is passing itself off as BVA, the court may order that BAVF distinguish itself from BVA to avoid confusion. This case obviously differs from Kellogg and other cases cited above because it involves the name of an organization rather than the name of a particular product. This difference precludes such a ready remedy as attaching the manufacturer’s name to the generic name of the product. The district court could, however, require BAVF to attach a prominent disclaimer to its name alerting the public that it is not the same organization as, and is not associated with, the Blinded Veterans Association.
Conclusion
“Blinded veterans” is a generic term; BVA’s name and logo therefore are not entitled to trademark protection. BVA’s congressional charter also fails to provide a basis for relief; that charter protects BVA’s own name and logo, but it does not prevent BAVF’s use of a similar name and logo. BVA may be entitled to protection against passing off, however. If the district court determines that people will likely think that BAVF is BVA, it can fashion equitable relief in accordance with the considerations set forth in this opinion.
For the reasons stated, we vacate the judgment of the district court and remand for further proceedings.
It is so ordered.
.John Fales, President of BAVF, was a BVA employee from 1974 to 1982 and served as BVA's National Outreach Employment Director from 1976 to 1982. Don E. Garner, BAVF’s Treasurer, worked at BVA for over three years, and was the National Field Service Director of BVA until 1976. Dennis R. Wyant, BAVF’s Secretary, worked at BVA for over four years, serving as President of BVA in 1977. Brief for Appellee at 5. All three men are blinded veterans. Blinded Veterans Ass’n v. Blinded Am. Veterans Found., 680 F.Supp. 442, 444 (D.D.C. 1988).
. The district court disbelieved this testimony. See 680 F.Supp. at 444-45 & n. I.
. That section provides:
Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation of origin, or any false description or representation, including words or other symbols tending falsely to describe or represent the same, and shall cause such goods or services to enter into commerce, and*1038 any person who shall with knowledge of the falsity of such designation of origin or description or representation cause or procure the same to be transported or used, shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region in which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of any such false description or representation.
15 U.S.C. § 1125(a) (1982).
.Generic terms are also called "common descriptive" terms, as distinguished from "merely descriptive” terms. See Park 'N Fly, Inc. v. Dollar Park and Fly, Inc., 469 U.S. 189, 193-94, 105 S.Ct. 658, 661, 83 L.Ed.2d 582 (1985); National Conf. of Bar Examiners v. Multistate Legal Studies, 692 F.2d 478, 487 (7th Cir. 1982), cert. denied, 464 U.S. 814, 104 S.Ct. 69, 78 L.Ed.2d 83 (1983); compare 15 U.S.C. § 1052(e), (f) (a "merely descriptive" term may be registered if it has "become distinctive of the applicant’s goods in commerce") with id. § 1064(c) (registration may be cancelled if mark has become "the common descriptive name of an article"). For the sake of clarity, we will use "descriptive" to refer only to those terms capable of acquiring trademark protection upon proof of secondary meaning. See infra 1039-40.
. See, e.g., National Conf. of Bar Examiners, 692 F.2d at 488 ("Multistate Bar Examination" denotes bar examination given in several states); Miller Brewing Co. v. G. Heileman Brewing Co., 561 F.2d 75 (7th Cir. 1977) (“Light Beer” or "Lite Beer" denotes low-calorie beer), cert. denied, 434 U.S. 1025, 98 S.Ct. 751, 54 L.Ed.2d 772 (1978); see generally J. McCarthy, Trademarks and Unfair Competition § 12:3 at 533-37 (2d ed. 1984) [hereafter McCarthy] (providing examples of generic terms); Greenbaum, Ginsburg, & Weinberg, A Proposal for Evaluating Genericism After Anti-Monopoly, 73 Trademark Reporter 101 (1983).
. Moreover, if a registered trademark becomes a generic denotation of a particular product or service, the mark's registration may be can-celled. See 15 U.S.C. § 1064(c).
. See, e.g., Application of Keebler Co., 479 F.2d 1405 (Ct. Cust. & Pat.App. 1973) ("Rich ‘N Chips" chocolate chip cookies); Metromedia, Inc. v. American Broadcasting Cos., 210 U.S.P.Q. 21 (S.D.N.Y. 1980) ("Rocktober” rock music broadcast in October); see generally McCarthy § 11:8 at 449-53 (providing examples of descriptive terms).
. See, e.g., American Home Prods. Corp. v. Johnson Chem. Co., 589 F.2d 103 (2d Cir. 1978) (“Roach Motel" insect trap); Q-Tips, Inc. v. Johnson & Johnson, 206 F.2d 144 (3d Cir.) ("Q-Tips" cotton swabs), cert. denied, 346 U.S. 867, 74 S.Ct. 106, 98 L.Ed. 377 (1953); see generally McCarthy § 11:23 at 499-502 (providing examples of suggestive terms).
. See, e.g., Fleischmann Distilling Corp. v. Maier Brewing Co., 314 F.2d 149 (9th Cir.) ("Black & White" scotch whiskey), cert. denied, 374 U.S. 830, 83 S.Ct. 1870, 10 L.Ed.2d 1053 (1963); Mustang Motels, Inc. v. Patel, 226 U.S.P.Q. 526 (C.D.Cal. 1985) ("Mustang” motels); see generally McCarthy § 11:4 at 440-41 (providing examples of arbitrary terms).
. See, e.g., Polaroid Corp. v. Polaroid, Inc., 319 F.2d 830 (7th Cir. 1963) ("Polaroid" optical devices and photographic equipment); Clorox Chem. Co. v. Chlorit Mfg. Corp., 25 F.Supp. 702 (E.D.N.Y. 1938) (“Clorox” bleach); see generally McCarthy § 11:3 at 438 (providing examples of fanciful terms).
.The name of a business enterprise, in contrast to the name of a product or service, is often referred to as a "trade name” rather than a "trademark.” We use "trademark” here for two reasons. First, the protection accorded names of business enterprises and names of products and services are governed by the same basic principles. See McCarthy § 9:1 at 300-05. Second, "trade name" was sometimes used to refer generally to “nontechnical trademarks"— i.e., terms which could not, under the common law, be appropriated to the use of one party or, under the Lanham Act, be registered as a trademark. See R. Callman, Unfair Competition, Trademarks & Monopolies § 17.05 at 21-22 (4th ed. 1983) [hereafter Callman]. Consistent with contemporary understanding and usage, we denote as a "trademark" the name of a product, service, or business enterprise that may be appropriated to the use of one party under the common law or the Lanham Act.
. We need not deal separately with the question whether the initials "BVA” are generic; if the full name is generic, an abbreviation is treated similarly. See National Conf. of Bar Examiners, 692 F.2d at 488; F.S. Serv., Inc. v. Custom Farm Serv., Inc., 471 F.2d 671, 674 (7th Cir. 1972).
. The district court took pains to refer to blinded veterans by other terms, e.g., "sightless former servicepeople” and "blinded former U.S. service personnel." 680 F.Supp. at 444, 445. We, too, have endeavored to employ other terms in this opinion. See supra p. 1041, infra p. 1041. The awkwardness of the alternate terminology reinforces our conclusion that the public uses "blinded veterans” generically.
.The only relevant case cited by the district court on this question, American Diabetes Association v. National Diabetes Association, 533 F.Supp. 16 (E.D.Pa. 1981), aff'd mem., 681 F.2d 804 (3d Cir. 1982), does not persuade us otherwise. In that case, a district court held that "American” in "American Diabetes Association" is geographically descriptive, that the whole term had acquired secondary meaning, and that there was a likelihood of confusion between that organization and the defendant, the National Diabetes Association. Id. at 19-20. The court ruled on a motion for a preliminary injunction; the matter, therefore, was decided only tentatively, not definitively. Id. at 19. Moreover, the court did not offer much analysis, making it difficult to decipher, and therefore extrapolate, the court’s reasoning.
. USOC’s charter also grants it the exclusive use of the word "Olympiad,” the motto "Citius Altius Fortius,” the familiar symbol of the International Olympic Committee — five interlocking rings — and the less familiar symbol of USOC— an escutcheon with a blue chief, red and white vertical bars on the base, and the five interlocking rings on the chief. See 36 U.S.C. § 380(c).
. Interpreting BVA’s charter as granting BVA the exclusive use of the term “blinded veterans" would require us to decide the constitutional question whether Congress may grant a private entity exclusive use of a generic term. The Supreme Court sidestepped this question in SFAA, apparently because it considered “Olympic” not generic. See 107 S.Ct. at 2979.
. "Passing off” is also referred to as "palming off.”
. In Miller Brewing Co. v. Falstaff Brewing Co., 655 F.2d 5, 7 (1st Cir. 1981), the First Circuit stated broadly that “[u]nder no circumstances is a generic term susceptible of de jure protection under § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) or under the law of unfair competition." A fuller reading of the case, however, indicates that the court was endeavoring only to state the now-familiar proposition that a generic term cannot acquire trademark protection — i.e., that a generic term may not be appropriated from the public domain for the exclusive use of one party. See id. at 8; cf. Technical Publishing Co. v. Lebhar-Friedman, Inc., 729 F.2d 1136, 1142 (7th Cir. 1984) (suggesting that Falstaff's holding may be limited to trademark protection). The court made no mention of passing off. We therefore do not read Falstaff as contrary to our decision.
. The Court further said that "[f|airness requires that [Kellogg exercise its right to use the name 'Shredded Wheat’] in a manner which reasonably distinguishes its product from that of [National Biscuit].” 305 U.S. at 120, 59 S.Ct. at 114. The Court then determined that Kellogg had sufficiently distinguished its product by selling it in cartons different from National Biscuit’s in size, form, and color, with a different label, a different number of biscuits in each carton, and the name "Kellogg” displayed prominently. Id. at 120-21, 59 S.Ct. at 114.
. In Kellogg and Singer, the plaintiffs’ patents on the products had expired. Upon expiration of the patents, the Supreme Court held in both cases, the right to make the products passed to the public. Kellogg, 305 U.S. at 117-18, 59 S.Ct. at 113; Singer, 163 U.S. at 185-86, 16 S.Ct. at 1008-09. In King-Seeley Thermos and DuPont Cellophane, the courts held that formerly exclusive trademark rights had been lost because the terms "thermos” and "cellophane,” respectively, had become generic. King-Seeley Thermos, 321 F.2d at 579; DuPont Cellophane, 85 F.2d at 80-81. A court’s authority to require competitors to distinguish themselves or their products is not limited, however, to instances in which the plaintiff once enjoyed an exclusive legal right to make a product or to use a particular name. But cf. Liquid Controls, 802 F.2d at 940 (distinguishing King-Seeley Thermos and DuPont Cellophane on this ground). Regardless of how a generic term becomes associated with a particular source, once it does, late-coming competitors may be required to distinguish themselves or their products sufficiently to prevent confusion. See Brown Chem. Co. v. Meyer, 139 U.S. 540, 547, 11 S.Ct. 625, 628, 35 L.Ed. 247 (1890) (holding, in case not involving expired patent or lost trademark, that defendant had right to use generic words “Iron Bitters" “unless he uses them in such connection with other words or devices as to operate as a deception upon the public") (emphasis added); cf. Trinidad Asphalt Mfg. Co. v. Standard Paint Co., 163 F. 977, 982 (8th Cir. 1908) ("It is immaterial that names like ‘Singer’ ... became public property by acquiescence of those who first employed them, instead of being naturally so by reason of structure and original meaning_ The important thing is that they are public property, not how they become so. If they are, it follows from that quality alone that all may truthfully apply them to their products, and that no one can lawfully monopolize them.... [UJnfair competition cannot arise from the mere use of words belonging to the public, accompanied by a fair and truthful statement of the ownership and source of manufacture.’’) (emphasis added), aff’d, 220 U.S. 446, 461, 31 S.Ct. 456, 460, 55 L.Ed. 536 (1911).
. One commentator explains the results in some of these cases as predicated on the terms’ "dual usage”: one portion of the relevant market recognized a term as the mark of a particular source, whereas another portion used the term generically. See McCarthy § 12:16 at 565-68. Although this explanation accurately accounts, in part, for some of the judgments, see, e.g., DuPont Cellophane, 85 F.2d at 82 (requiring that defendant attach disclaimer only when dealing with consumers who associate "cellophane” with DuPont), it is underinclusive. In neither Kellogg nor Singer, for example, did the Supreme Court base its holding on a division in the public’s understanding of the terms. Rather, the term in each case had a “dual usage" in another sense: the public in general used each term generically, but it also associated each term with a particular company because that
. Commentators sometimes refer to this association between a generic term and one particular source, arising normally from that source’s monopoly for an extended period, as “de facto secondary meaning." See, e.g., McCarthy § 12:15 at 562-65. A generic term that acquires de facto secondary meaning is still not afforded trademark protection. See id. Nevertheless, as the cases cited above establish, a generic term with de facto secondary meaning may be protected against passing off, e.g., by requiring fair notice that a newcomer’s product or service does not come from the original source.
. Some courts, uneasy with abandoning the intent touchstone altogether, adopted the notion of "constructive fraud," i.e., presuming intent from the results of the defendants’ actions. See Callman § 21.40 at 160.
. Because we have ruled out the question of trademark protection, BVA is not called upon to show "secondary meaning” in that setting. BVA nevertheless must show, analogously, what has been called "de facto secondary meaning” — i.e., that people associate the generic term "blinded veterans” with BVA. See supra note 22.
. Disclaimers may sometimes have the counterproductive effect of generating the impression "that the defendant is anxious to avoid being confused with an inferior competitor and that he himself is the original bearer of the famous name." Callman § 20.35 at 296. To avoid such an impression in this case, the district court could require that the disclaimer state, for example, that BVA has been in existence since 1945, or was chartered by Congress in 1958.
. BAVF apparently offered to change its name to any one of six variations, all of which contained the terms "Blind" or "Blinded” and "American" and "Veterans" and "Foundation.” See Reply Brief for Appellant at 16. The Foundation, however, “refuse[d] to adopt another [name] which does not also include the words ‘blinded’ and ‘veterans.’ ’’ 680 F.Supp. at 445 n. 1. Because "blinded veterans” is generic, BAVF cannot be forced to forego the use of those words. If, however, BAVF is currently willing to adopt a less confusingly similar name, albeit one containing those words, the need for further proceedings may be avoided. At oral argument, for example, BAVF’s counsel stated that the Foundation is willing to change its name to one that would not have an “A” in its initials, such as "National Foundation of Blind[ed] Veterans"; dropping the "A” would at least lessen, by one letter, the similarity between the two organizations’ acronyms.
. BVA also urges this court, somewhat ambiguously, to consider the effect of the District of Columbia nonprofit corporation statute, which provides that the name of any corporation organized under the statute "[s]hall not be the same as, or deceptively similar to, the name of ... any corporation created pursuant to any special act of Congress to transact business or conduct affairs in the District.” D.C.Code § 29-507(2) (1981). BVA made no claim, and the district court made no findings, under this provision. In any event, the statute does not appear to create a private right of action for trademark infringement or unfair competition, but simply governs the mayor’s approval of articles of incorporation. Thus, a person or corporation may appeal the mayor’s disapproval to a court, see id. § 29-595, but the structure of the statute as a whole does not suggest that, under D.C. Code § 29-507, another corporation may sue a D.C. corporation with a deceptively similar name.
Reference
- Full Case Name
- BLINDED VETERANS ASSOCIATION v. BLINDED AMERICAN VETERANS FOUNDATION
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- 74 cases
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- Published