Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

US Supreme Court Rules Booking.com Eligible for Trademark Registration

Author: Scarinci Hollenbeck, LLC

Date: July 10, 2020

Key Contacts

Back

In a landmark trademark decision, the U.S. Supreme Court held that Booking.com was entitled to federal trademark protection

In a landmark trademark decision, the U.S. Supreme Court held that Booking.com was entitled to federal trademark protection. In so ruling, the Court rejected the rule proffered by the U.S. Patent and Trademark Office (USPTO) under which combining a generic term with “.com” would yield a generic composite that may never be a valid trademark.

US Supreme Court Rules Booking.com Eligible for Trademark Registration

“Whether any given ‘generic.com’ term is generic, we hold, depends on whether consumers, in fact, perceive that term as the name of a class or, instead, as a term capable of distinguishing among members of the class,” Justice Ruth Bader Ginsburg wrote on behalf of the Court in United States Patent and Trademark Office v. Booking.com B.V.

Trademark Registration Dispute

Booking.com operates a website on which customers can book hotel accommodations. In 2012, the company filed four federal trademark-registration applications for marks that included or consisted of the term “Booking.com.” The applications sought registration for use of the marks in connection with “online hotel reservation services.”

The United States Patent and Trademark Office (USPTO) refused registration. It concluded that the term “booking” is generic for the services as to which Booking.com sought registration. Moreover, the addition of the generic top-level domain “.com” did not create a protectable mark.

On appeal, the U.S. District Court for the Eastern District of Virginia held that the term Booking.com was not generic. The Fourth Circuit Court of Appeals affirmed. It held that the public’s understanding of Booking.com, taken as a whole, establishes it as a descriptive mark rather than a generic term. In support, it cited the USPTO’s lack of evidence demonstrating that the public uses “booking.com” generically. The Fourth Circuit also placed great weight on Booking.com’s consumer survey, which found that 74.8% of respondents identified Booking.com as a brand name. According to the appeals court. “the survey is strong evidence that the public does not understand Booking.com to refer to the proposed mark’s generic meaning.”

SCOTUS Greenlights Generic.com Trademarks

By a vote of 8-1, the Supreme Court affirmed. It held that a term styled “generic.com” is a generic name for a class of goods or services—and thus ineligible for federal trademark protection—only if the term has that generic meaning to consumers.

According to the Court, whether a compound term is generic turns on whether that term, taken as a whole, signifies to consumers a class of goods or services. The Court further concluded that consumers do not in fact perceive the term “Booking.com” that way. As Justice Ginsburg explained:

[W]hether “Booking.com” is generic turns on whether the term, taken as a whole, signifies to consumers the class of hotel reservations services. … Consumers do not in fact perceive the term “Booking.com” that way, the courts below determined. … That should resolve the case: because “Booking.com” is not a generic name to consumers, it is not generic.

In reaching its decision, the Court rejected the USPTO’s proposed per se rule that when a generic term is combined with a generic Internet-domain-name suffix like “.com,” the resulting combination is generic. Justice Ginsburg explained:

A “generic.com” term might also convey to consumers a source-identifying characteristic: an association with a particular website. As the PTO and the dissent elsewhere acknowledge, only one entity can occupy a particular Internet domain name at a time, so “[a] consumer who is familiar with that aspect of the domain-name system can infer that BOOKING.COM refers to some specific entity.” Thus, consumers could understand a given “generic.com” term to describe the corresponding website or to identify the website’s proprietor. We therefore resist the PTO’s position that “generic.com” terms are capable of signifying only an entire class of online goods or services and, hence, are categorically incapable of identifying a source.

The Court also dismissed the USPTO’s concerns that trademark protection for “Booking.com” could exclude or inhibit competitors from using the term “booking” or adopting domain names like “ebooking.com” or “hotel-booking.com.” As Justice Ginsburg noted, “That concern attends any descriptive mark.” Ginsburg went on to explain that several doctrines ensure that registration of “Booking.com” would not yield its holder a monopoly on the term “booking.”

Finally, the Court addressed the USPTO’s doubts that owners of “generic.com” brands need trademark protection in addition to existing competitive advantages. It found that any competitive advantages do not inevitably disqualify a mark from federal registration. “All descriptive marks are intuitively linked to the product or service and thus might be easy for consumers to find using a search engine or telephone directory. The Lanham Act permits registration nonetheless,” Justice Ginsburg wrote. “And the PTO fails to explain how the exclusive connection between a domain name and its owner makes the domain name a generic term all should be free to use. That connection makes trademark protection more appropriate, not less.”

Justice Stephen Breyer was the lone dissenter, arguing that the majority’s decision is “inconsistent with trademark principles and sound trademark policy.” He wrote: “By making such terms eligible for trademark protection, I fear that today’s decision will lead to a proliferation of ‘generic.com’ marks, granting their owners a monopoly over a zone of useful, easy-to-remember domains.”

Key Takeaway

The Supreme Court’s decision in United States Patent and Trademark Office v. Booking.com B.V. provides assurance to brand owners that the Trademark Office may not apply a per se rule to reject trademark applications for “generic.com” marks.  Henceforth, each such trademark application must be evaluated to determine whether the applied-for term conveys a source-identifying meaning to consumers. The Court’s decision dramatically expands the availability of trademark protection for domain names. In addition, it significantly limits the number of such terms that will be deemed ineligible for trademark protection for being generic.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Don’t Overlook the Importance of Business License Management post image

Don’t Overlook the Importance of Business License Management

If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]

Author: Dan Brecher

Link to post with title - "Don’t Overlook the Importance of Business License Management"
Failing to Comply With NJ Rent Control Exemption May Prove Costly post image

Failing to Comply With NJ Rent Control Exemption May Prove Costly

What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing.  A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]

Author: Patrick T. Conlon

Link to post with title - "Failing to Comply With NJ Rent Control Exemption May Prove Costly"
Crypto Securities Law: When Tokens Become Investment Contracts post image

Crypto Securities Law: When Tokens Become Investment Contracts

The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Securities Law: When Tokens Become Investment Contracts"
The Due Diligence Process for NY Condominiums and Cooperatives post image

The Due Diligence Process for NY Condominiums and Cooperatives

While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]

Author: Jesse M. Dimitro

Link to post with title - "The Due Diligence Process for NY Condominiums and Cooperatives"
Smart Contract Legal Issues: Drafting Agreements for Blockchain post image

Smart Contract Legal Issues: Drafting Agreements for Blockchain

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]

Author: Bryce S. Robins

Link to post with title - "Smart Contract Legal Issues: Drafting Agreements for Blockchain"
Are Stay Interviews the Key to Retaining Top Talent? post image

Are Stay Interviews the Key to Retaining Top Talent?

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]

Author: Angela A. Turiano

Link to post with title - "Are Stay Interviews the Key to Retaining Top Talent?"

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!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!