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Features

Nontraditional Trademarks: The Flavor of the Month

Erik Kahn & Patricia Werner

Recently, in a case of first impression, the Trademark Trial and Appeal Board refused to grant trademark protection to the flavor of an antidepressant tablet on the grounds that the flavor was functional and incapable of serving as a mark. <i>In re N.V. Organon</i>, 79 USPQ2d 1639 (TTAB 2006). The decision is a departure from the trend of extending protection to nontraditional trademarks. Although the Board left the door open to the possibility of registering flavor as a trademark, it made clear that future applicants will face significant challenges in registering such marks, including: 1) proving that a flavor has acquired secondary meaning; 2) overcoming the difficulties inherent in protecting a flavor due to the subjective nature of taste; and 3) proving that a flavor functions as a source indicator despite the fact that consumers are not exposed to a product's flavor prior to purchase.

Features

Is Software a Section 271(f) 'Component' of a Patented Invention?

Sean Chao

On Oct. 27, 2006, the Supreme Court granted certiorari in <i>Microsoft Corp. v. AT&amp;T Corp.</i> (No. 05-1056), preparing to elucidate the contours of patent infringement under 35 U.S.C. &sect;271(f) as applied to the exportation of software code. This case marks the first time in the 22 years since Congress enacted the provision that the Court will venture into this area. The outcome may have significant ramifications for the software industry because &sect;271(f) was widely assumed to apply only to the tangible components of a physical machine. If &sect;271(f) applies equally to software, then software companies will need to rethink their exposure to liability when exporting software abroad. Liability under &sect;271(f) may extend beyond the initial act of exporting and further include downstream activities, such as copying and installing that are done entirely outside of the United States.

Features

Case Briefs

ALM Staff & Law Journal Newsletters

Highlights of the latest insurance cases from around the country.

Features

Treesdale and Its Impact on Number-Of-Occurrences Analysis

Robert D. Goodman & Steve Vaccaro

The Third Circuit's <i>Treesdale</i> decision last year understandably drew considerable attention in coverage circles: It was apparently the first reported appellate decision holding that a years-long course of manufacturing asbestos products, resulting in numerous bodily injury claims, constituted a single occurrence. <i>Liberty Mutual Ins. Co. v. Treesdale, Inc.</i>, 418 F.3d 330 (3d Cir. 2005). The court's single-occurrence ruling was significant because it meant, in combination with other policy provisions, that the insurer was obligated to pay only a single per-occurrence limit under 10 consecutive policies in respect of its policyholder's entire asbestos liability. <i>Treesdale</i> has potentially broad application in a variety of long-tail liability contexts where per-occurrence limits may be the most important or even sole effective limit of liability. Add the fact that <i>Treesdale</i> was decided as a matter of law, and <i>Treesdale</i> qualifies as a landmark decision in the notoriously results-driven world of number-of-occurrences litigation.

Features

Extrinsic Evidence: Examining California's Rules

Kirk A. Pasich

Most insurance coverage litigation starts with a fundamental dispute over what an insurance policy means. Unfortunately, while California appellate courts have addressed the subject for decades, and while the California Supreme Court attempted to restate the basic principles, there still is considerable debate among litigants and courts as to how insurance policies are to be interpreted. Insurance carriers often contend that California is not as 'pro-insured' as it once was regarded. They often argue that insurance policies should be interpreted simply based on policy language, without reference to any external information, and that if the insured is 'sophisticated,' any ambiguity should be resolved against coverage. However, neither of these arguments is in accord with California law.

Flood of Litigation: The Water Damage Exclusion

Brad E. Harrigan

On Aug. 29, 2006, Hurricane Katrina, one of the deadliest and costliest natural disasters ever to strike the United States, hit New Orleans and Mississippi. With winds recorded at over 135 mph, the hurricane caused severe damage to much of New Orleans and the surrounding areas. The worst was yet to come, however. Following the storm, the levees built to protect the city, which is mostly below sea level, failed to retain the water. This resulted in more than 80% of the city being flooded. This catastrophic flooding caused billions in damages and sparked the current storm of insurance coverage litigation.

Court Watch

Darryl A. Hart & Griffith Towle

Highlights of the latest franchising cases from around the country.

District Court Interprets Kentucky Franchise Covenants Not-to-Compete

Jon Swierzewski

In <i>Papa John's International, Inc. v. Rezko et al.</i>, 2006 WL 1697134 (N.D. Ill.), the U.S. District Court for the Northern District of Illinois was called upon to determine whether a post-term covenant not-to-compete was reasonable in scope. The defendant alleged that the covenant would bar him from the restaurant business nearly everywhere in the country. In the limited procedural posture of the case (a motion to dismiss), the court allowed the claim of unreasonableness to go forward.

Policy and Regulatory Outlook: 2007 ' Franchise Industry Eyes New Congress

ALM Staff & Law Journal Newsletters

With the recent Congressional elections returning leadership of the U.S. Senate and House to Democrats for the first time in more than a decade, the business community is keenly interested in the priorities of the new Congress. While it is apparent that Congress will initially focus on issues outside the direct domain of franchising (Iraq, Congressional ethics, etc.), numerous matters of importance to franchisors and franchisees are on the table, too.

Features

Emfore v. Blimpie: License to Commit Fraud or Common-Sense Decision?

J. David Mayberry & Rupert M. Barkoff

Better ingredients, it is said, make for a better pizza, and, as <i>Emfore Corp. v. Blimpie Associates, Ltd.</i> (N.Y. Sup. Ct. Sept. 18, 2006) suggests, better documents make for better decisions, at least if you are the franchisor.

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