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Seeing Red: The Reemergence of Aesthetic Functionality

BY Jonathan E. Moskin
October 28, 2011

Although some will see new threats to trademark owners and the licensing industry and others will see new opportunities, trademark owners using creative designs will surely take notice of two decisions this summer: Fleischer Studios Inc. v. A.V.E.L.A. Inc., 97 USPQ2d 1833 (9th Cir. 2011) and Christian Louboutin SA v Yves Saint Laurent America, Inc., 11-cv-02381-VM 2011 WL 3505350 (S.D.N.Y. Aug. 10, 2011). The Aug. 19 decision in Fleischer modified an earlier decision, Fleischer Studios Inc. v. A.V.E.L.A Inc., 636 F.3d 1115 (9th Cir. 2010), which had found the unauthorized use of images of the Betty Boop character aesthetically functional, and hence not capable of infringing plaintiff's claimed trademark rights in the character. The withdrawal of the court's earlier opinion makes it difficult to assess the lasting significance of either decision to the uneven jurisprudence on aesthetic functionality. However, in Louboutin the district court held that the red sole of plaintiff's designer shoes, which the court repeatedly acknowledged was highly distinctive and widely recognized, was nonetheless unprotectable under the same oft-criticized theory. Although the district court ruling denying a preliminary injunction has already been appealed, pending further word from the Second Circuit, the court's reasoning echoes some of the questions so recently highlighted by Fleischer.

Tracing Roots

The concept that inherently creative or appealing designs are, for that very reason, unprotectable under trademark law traces its roots to a Ninth Circuit decision, Pagliero v. Wallace China Co., 198 F.2d 339 (9th Cir. 1952), which refused protection for a floral china pattern design for replacement dishes, and the Restatement (First) of Torts ' 742, which proposed a broad definition of functionality that would have swept away protection for any features, including aesthetic features, that “affect” the purpose or performance of a product (or, more specifically, when the aesthetics “contribute to the value” for which the goods are bought and sold). The underlying concern arises from the interplay between trademark law, on the one hand, and copyright and patent, on the other, as the potentially unlimited duration of a trademark is arguably inconsistent with the Constitutionally “limited times” protection of the latter. However, even the Supreme Court, while championing the “carefully crafted bargain” among the various intellectual property regimes, on the basis of which trademark rights theoretically could not exist in copyrighted subject matter once dedicated to the public domain, Dastar Corp. v. Twentieth Century Fox Film Co., 539 U.S. 23 (2003), has also expressly declined to rule out trademark protection for subject matter within the scope of an expired utility patent when the issue was squarely raised. TrafFix Devices, Inc. v. Marketing Displays, Inc., 532 U.S. 23, 35 (2001).

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