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Due Diligence Can Mitigate Trademark Risk
Facebook's recent launch of "Meta" made legal news when it was widely reported that another technology company, Arizona-based Meta PC, had filed for a trademark application with the U.S. Patent and Trademark Office (USPTO) for "Meta" in August 2021. Facebook filed its own trademark application with the USPTO in October 2021. By November, it was reported that Meta PC may have demanded millions of dollars to settle a potential dispute over ownership of the name.
Not all disputes are avoidable. However, in the world of trademark law, risk can often be mitigated by proper due diligence prior to using a mark.
The USPTO is the gatekeeper of federal trademark registrations in the United States. Those seeking a federally registered trademark must apply to the USPTO and undergo a lengthy application process. To be registered, a potential trademark must meet a number of requirements. At issue in the Meta dispute — and in the majority of trademark disputes — is the concept of "likelihood of confusion."
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The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.