We admit we are talking about Adidas a lot lately, but that is because (i) we truly love their gear, and (ii) they have really been active.
After some bruising encounters with United States trademark law, Adidas SA recently found itself on the ropes again, this time at the hands of a church in Zion, Illinois. The marks in question are a study in phonics:
ZAGREB , CROATIA – 19 FEBRUARY 2015 – Close up logo of sport brand Adidas printed on textile , product shot
ADIZERO running shoes by Adidas vs. ADD A ZERO hats by Christian Faith Fellowship.
In 2005 a small congregation by the name of Christian Faith Fellowship, based in Zion, Illinois, registered a wordmark and a logo mark with the United States Patent and Trademark Office for hats emblazoned with the phrase “ADD A ZERO.” The hats were not a big seller, with only two of them recorded as being sold-critically, with one being paid for by a check drawn on a Wisconsin bank.
In 2009, Adidas was ready to roll out its new, lightweight running shoes, which it dubbed “ADIZERO.” Upon petitioning the USPTO for protection, Adidas’ claim was denied based on the the existence of Christian Faith Fellowship’s prior registration. The USPTO found there to be a likelihood of confusion.
Adidas appealed this decision to the Trademark Trial and Appeal Board (TTAB), arguing that Christian Faith Fellowship’s hats are not a source identifier and that they had sold a very limited number of the hats without showing any significant use in commerce which generally denotes interstate commerce. Christian Faith Fellowship then produced the Wisconsin bank check mentioned earlier, claiming that it indeed had engaged in interstate commerce, even if only for two sales. The TTAB ultimately decided in favor of Adidas, citing the small number of hats that were sold.
Christian Faith Fellowship appealed the TTAB’s decision and found itself battling Adidas before the Federal Circuit. In an effort to get the case thrown out, Adidas argued for a de minimis exception because only two hats had been sold, and Christian Faith Fellowship did not truly engage in interstate commerce. Its argument was denied and the court went on to nullify the TTAB’s decision because case law was clear that the sale of two hats was sufficient to establish interstate commerce.
The circuit court remanded the case back to the TTAB where it is currently under review.
This case is interesting because many practitioners disagree with the Federal Circuit’s ruling. They say it sets a very low standard for interstate commerce and sets up too many obstacles for large producers of trademarked products. What’s your ruling?
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
