Latest / Earn Your Leisure / One TRADEMARK Error BOXED IN Burger King
Transcript
- 0:00Speaker 1: So why do business owners need to trademark their business
- 0:02Speaker 1: before launching? So I always ask people, will you build
- 0:07Speaker 1: a house on land you don't own? I'm gonna ask
- 0:09Speaker 1: you guys, will you build a house on land you
- 0:10Speaker 1: don't own? I didn't no, right, right cause it makes sense, right,
- 0:16Speaker 1: you're gonna before we build houses in America, right, we
- 0:20Speaker 1: go and we do a title search on the land
- 0:21Speaker 1: and make sure no one owns the lands. There's no
- 0:24Speaker 1: leans on a land or anything like that, because if
- 0:26Speaker 1: we go and we just start building the house on
- 0:28Speaker 1: land and we haven't cleared the land, the owner of
- 0:31Speaker 1: the land can come tear that house down.
- 0:32Speaker 2: Right.
- 0:33Speaker 1: It's the same equivalent when it comes to building a
- 0:36Speaker 1: business on a brand name and you don't own the name.
- 0:39Speaker 2: Right.
- 0:39Speaker 1: And so being that I have been practicing this law
- 0:42Speaker 1: for ten years, I have seen where people have invested
- 0:45Speaker 1: their four one K plans or took out money, you know,
- 0:49Speaker 1: from their retirement to invest in product and marketing material,
- 0:53Speaker 1: only for it to be torn down by the rifle owner.
- 0:56Speaker 2: Right.
- 0:57Speaker 1: So I tell people, before we build brands and we
- 1:00Speaker 1: build businesses, we want to make sure we're clearing the
- 1:02Speaker 1: name and we're actually owning that name, so everything that
- 1:05Speaker 1: we're building on top of it is ours now.
- 1:08Speaker 3: Okay, So if we got to get the name to
- 1:11Speaker 3: make sure that we own it, what where are we
- 1:13Speaker 3: going to search for this?
- 1:14Speaker 1: Like?
- 1:14Speaker 3: Are there specific sites? I feel like most people have
- 1:17Speaker 3: no idea. They'll just type in trade and whatever Google
- 1:19Speaker 3: tells them that's what we're using. It might not be
- 1:22Speaker 3: the most accurate thing. So what sites are we going
- 1:24Speaker 3: through to ensure that if we use this name, we
- 1:26Speaker 3: can own this name.
- 1:27Speaker 2: That's a great question.
- 1:28Speaker 1: So what I would first start is with the USPTO
- 1:31Speaker 1: dot gov and make sure it says dot gov and
- 1:34Speaker 1: not dot com, right, because there can be some you know,
- 1:37Speaker 1: fraudulent sites and things like that. So start with the
- 1:40Speaker 1: USPTO dot gov. And you want to start broad because
- 1:43Speaker 1: you want to see does anybody own the name? But
- 1:45Speaker 1: also too, this is where it's important to hire an
- 1:48Speaker 1: attorney because under the law, it's not about what's the same,
- 1:52Speaker 1: but what can be deemed confusingly similar. So if you
- 1:54Speaker 1: go to the USPTO dot gov and you search Starbucks, right,
- 1:59Speaker 1: probably nothing will come up and you'll be like, oh,
- 2:01Speaker 1: I'm good, I can go start a coffee company. Well,
- 2:04Speaker 1: Starbucks is gonna have a problem with that because under
- 2:06Speaker 1: the law, it's not about what's the same, but what
- 2:08Speaker 1: can be deemed confusingly similar. So first I would start there,
- 2:12Speaker 1: and then I would start with Google, and then possibly
- 2:15Speaker 1: social media handles as well, and then just searching domains.
- 2:18Speaker 1: But it's also important that we understand the nuances of
- 2:22Speaker 1: the law. Right, there's forty five different classes under trademark law,
- 2:26Speaker 1: and sometimes you can have brands that co exist in
- 2:29Speaker 1: a marketplace. That's why we have the chocolate, Doft Soap,
- 2:32Speaker 1: Mac Makeup, Mac Computer, Delta Airline, Delta Falset, Pandora Jewelry,
- 2:36Speaker 1: Pandora Music. So your name might come up, but if
- 2:40Speaker 1: it's a plumbing industry and you're in a beauty industry,
- 2:42Speaker 1: you make and coexist.
- 2:44Speaker 2: Right.
- 2:44Speaker 1: But where a lot of times people fall short entrepreneurs
- 2:47Speaker 1: is they will say, Okay, my name is available, I'm
- 2:51Speaker 1: gonna file the name, and they just pick a class
- 2:54Speaker 1: and now they think they own that name in its entirety.
- 2:58Speaker 1: You know.
- 2:58Speaker 2: Recently I seen an interview from Caesar from.
- 3:00Speaker 1: Black Ink, and he talked about how he actually was
- 3:04Speaker 1: surprised when he had his dog fighting issue that he
- 3:07Speaker 1: was let go from a show, the show that he
- 3:10Speaker 1: thought he owned because he created black Ink and a
- 3:13Speaker 1: black Ink brand. Well, what Caesar didn't know was and
- 3:16Speaker 1: he filed his own trademarks too, and he thought he
- 3:19Speaker 1: had his trademarks register, but he filed him for Tattooon
- 3:22Speaker 1: Services and I think for a peril. But when he
- 3:25Speaker 1: did his deal with Viacom with the reality show, they
- 3:29Speaker 1: went and filed the name for entertainment services. And so
- 3:33Speaker 1: there's a big difference there. So it's important that you
- 3:35Speaker 1: understand those nuances.
- 3:37Speaker 3: And so inside that we shouldn't do this on our own.
- 3:39Speaker 3: So some people will say, I can do I can
- 3:42Speaker 3: figure this out by myself.
- 3:43Speaker 2: Get an attorney, Get an attorney. I have about five
- 3:47Speaker 2: thousand clients.
- 3:48Speaker 1: And a fourth of them either did in themselves first
- 3:51Speaker 1: and then they had to come to us later, or
- 3:53Speaker 1: they went to one of these inner internet sourcing companies
- 3:57Speaker 1: right thinking they're hiring someone who will guide them and
- 4:00Speaker 1: lead them. But they're just really data transfer companies where
- 4:04Speaker 1: they'll take your data and transfer it into the information system.
- 4:07Speaker 1: So why isn't an LLC or corporation enough to have
- 4:11Speaker 1: for ownership in the business. And so that is also
- 4:14Speaker 1: a great question and the reason is is because as
- 4:17Speaker 1: business owners, I always say an educated entrepreneur is a
- 4:20Speaker 1: successful one.
- 4:22Speaker 2: We have to understand the different legal vehicles and why
- 4:25Speaker 2: they're here. Right.
- 4:27Speaker 1: And a lot of times people think, oh, if I
- 4:28Speaker 1: got an LLC, I'm good. But the LLC might not
- 4:31Speaker 1: even be the best entity type for you.
- 4:33Speaker 2: Right.
- 4:34Speaker 1: But what we need to understand is what comes with
- 4:37Speaker 1: that formation of an entity. So under the law, when
- 4:41Speaker 1: we file our entities, whether it's an LLC or a
- 4:44Speaker 1: corporation or partnership, under the law under our Secretary of State,
- 4:49Speaker 1: we're forming in it within our state. But that says
- 4:52Speaker 1: that by us creating that company, it's going to give
- 4:55Speaker 1: us a legal shield to protect us the individual owned,
- 5:00Speaker 1: from any legal liability that is to arise out of
- 5:02Speaker 1: our business. We also may get some tax benefits from
- 5:06Speaker 1: that as well.
- 5:07Speaker 2: Right. But nowhere in the law.
- 5:09Speaker 1: Does it says it's going to give you exclusive ownership
- 5:11Speaker 1: rights to that name. Right, So you could form your
- 5:14Speaker 1: business let's say in the state of Illinois, but if
- 5:17Speaker 1: someone owns the trademark, and Illinois said you can have
- 5:21Speaker 1: this business name. But if someone owns the trademark, let's
- 5:24Speaker 1: say in the state of Florida. They can shet your
- 5:27Speaker 1: business now in Illinois. So that's why it's important as
- 5:31Speaker 1: business owners we understand these different legal vehicles and how
- 5:34Speaker 1: they work and how they're set up to protect us.
- 5:37Speaker 1: The trademark is there to protect our name, our logos,
- 5:41Speaker 1: our slogans, and not a lot of people know. But
- 5:43Speaker 1: you can also trademark a sound as well.
- 5:46Speaker 3: Like you got mail interesting, so you brought up the
- 5:49Speaker 3: state things. So now it makes me wonder there's a
- 5:52Speaker 3: difference between filing the trademark and the state. Can we
- 5:56Speaker 3: file federally as well? So like talk about the nuances,
- 6:00Speaker 3: that's a.
- 6:00Speaker 1: Great question as well, because you can file your trademark
- 6:04Speaker 1: on the state level, right, but when you file it federally,
- 6:08Speaker 1: you get a lot more coverage. And I always say
- 6:11Speaker 1: technology is moving faster than the law. So back in
- 6:14Speaker 1: the day, you used to have to prove interstate commerce
- 6:18Speaker 1: in order.
- 6:18Speaker 2: To give federal registration.
- 6:20Speaker 1: So a lot of people use the state law system
- 6:23Speaker 1: to file their trademarks when before the internet, right, because
- 6:26Speaker 1: now that we have the Internet, as long as your
- 6:29Speaker 1: business is a ww dot com or you're on social
- 6:32Speaker 1: media and you're offering your services or your products to
- 6:36Speaker 1: anyone across the royal Basically, now you have interstate commerce.
- 6:40Speaker 1: So with the Internet, it kind of took that away.
- 6:43Speaker 1: So you want to go for the broader coverage most
- 6:47Speaker 1: as possible because you know. There is a case and
- 6:51Speaker 1: it arise out of the state of Illinois, and it
- 6:54Speaker 1: was in the nineteen fifties where there was this restaurant,
- 6:57Speaker 1: a small mom and pop restaurant. They sold burger shakes
- 7:01Speaker 1: and fries, right, and so then there was a Florida
- 7:05Speaker 1: restaurant that adopted the same name and they sold burger
- 7:08Speaker 1: shakes and fries as well. And so the Florida restaurant
- 7:12Speaker 1: began to grow very.
- 7:14Speaker 2: Fast and very rapidly, and.
- 7:17Speaker 1: There was supposed to be an agreement that they will
- 7:19Speaker 1: never come into the state of Illinois. Well, we know
- 7:22Speaker 1: money talk and boy Craft walk, and they came in
- 7:25Speaker 1: the state of Illinois. Well, the State of Illinois restaurant
- 7:28Speaker 1: filed a declaratory judgment under federal law to kick them
- 7:31Speaker 1: out of the state of Illinois. And the court asked
- 7:34Speaker 1: them in the state of Illinois, they were the first users, right.
- 7:38Speaker 1: The court actioned them, well, how far does your customers
- 7:42Speaker 1: come to your restaurant?
- 7:43Speaker 2: And this is a restaurant.
- 7:44Speaker 1: It's like in Mattoon, Illinois, which is like maybe like
- 7:48Speaker 1: two hundred miles south of Chicago, but it's right off
- 7:51Speaker 1: a major highway in Illinois. And they said, well, they
- 7:56Speaker 1: come from about a twenty mile radius. And so the
- 7:59Speaker 1: court said, okay, well this company cannot come within a
- 8:02Speaker 1: twenty mile radius of your restaurant. But now you can't
- 8:06Speaker 1: go outside of twenty mile radius of your restaurant because
- 8:09Speaker 1: they have the federal registration and unfortunately federal trump state.
- 8:14Speaker 1: So at do you know, like they boxed them in.
- 8:17Speaker 1: But what's the name of that company? Can you guys imagine,
- 8:20Speaker 1: like what was the name of that restaurant?
- 8:24Speaker 2: McDonald's. That's my first I McDonald's. What's the other one?
- 8:29Speaker 2: Burger Burger King.
- 8:32Speaker 1: So if you google right now the original Burger King,
- 8:36Speaker 1: it's still gonna come up today and it's twenty twenty
- 8:39Speaker 1: four and that restaurant in Withtoon, Illinois is still open
- 8:42Speaker 1: as the original Burger King.
- 8:44Speaker 3: Oh, so explain story again.
- 8:46Speaker 2: There was another Burger King before Burger King, exactly in Illinois.
- 8:50Speaker 1: So the big corporation Burger King, it originated out of Florida, Florida,
- 8:54Speaker 1: out of the state of Florida, but the state of Illinois.
- 8:58Speaker 1: Burger King they were the first users, but they didn't
- 9:00Speaker 1: have federal registration. So that's why it's so important that
- 9:05Speaker 1: we are there. They're still there to this day store
- 9:09Speaker 1: it's just one store because they can never grow outside
- 9:12Speaker 1: of that twenty mile radius.
- 9:13Speaker 3: They could put like four stores inside the twenty miles,
- 9:15Speaker 3: but they don't make sense.
- 9:16Speaker 2: They wouldn't even.
- 9:18Speaker 3: Is not burger King.
- 9:19Speaker 2: It's a restaurant, a fast fool.
- 9:20Speaker 1: It's a restaurant and they sell burger shakes and fries.
- 9:24Speaker 1: And it's called the original burger King. So if you
- 9:27Speaker 1: ever google burger King with Illinois, it will come up.
- 9:30Speaker 3: So with the I mean, that's an incredible story, but
- 9:33Speaker 3: it makes more sense to file federally or is it?
- 9:36Speaker 1: Yes?
- 9:36Speaker 3: I think it's more expensive as well.
- 9:38Speaker 1: Well it is, but sometimes the state registration is not
- 9:42Speaker 1: as it's effective and impact of as you need it
- 9:45Speaker 1: to be, especially in a day and age where the
- 9:47Speaker 1: internet is here. Right and see, another thing why that
- 9:50Speaker 1: story is so important is because trademarks are legacy builders. Right,
- 9:55Speaker 1: A trademark can outlive you. Coca Cola been registered since
- 9:58Speaker 1: eighteen ninety three. Mercedes since nineteen oh three, right, and
- 10:02Speaker 1: so a trademark can like so the original people who
- 10:06Speaker 1: created that burger king that was a family owned business.
- 10:10Speaker 1: So imagine what they could have did and expanded with
- 10:13Speaker 1: their company. But they are now attached to this judgment
- 10:16Speaker 1: out of federal court since the nineteen sixties.
- 10:19Speaker 2: So it limited their legacy.
- 10:21Speaker 1: So I always tell people you want to secure your brand,
- 10:23Speaker 1: not only to secure your bag, but you want to
- 10:25Speaker 1: secure your brand so you can secure your legacy.