Understanding the Definition of ‘Use in Commerce’ in Trademark Law
Trademark law can be complex and confusing, especially when it comes to the requirements for obtaining and maintaining a trademark. One important concept in trademark law is the requirement for "use in commerce," which refers to the actual use of a mark in the sale or transportation of goods or services. The definition of "use in commerce" was amended by the Trademark Law Revision Act of 1988 (TLRA) to include the phrase "the bona fide use of a mark in the ordinary course of trade, and not made merely to reserve a right in a mark." This amendment was primarily intended to eliminate the practice of "token use," or using a mark solely to reserve rights in that mark without any real intent to use it in business. The TLRA's legislative history makes it clear that the meaning of "use in the ordinary course of trade" will vary from one industry to another. For example, an industry that sells expensive or seasonal products may make infrequent sales, but these sales would still be considered "in the ordinary course of trade." Similarly, a pharmaceutical company that markets a rare disease treatment may make few sales, but these sales would still be considered "in the ordinary course of trade" because they are part of the company's business. There are several factors to consider when determining whether a mark is being used in the "ordinary course of trade." These include the amount of use, the nature or quality of the transaction, and what is typical use within a particular industry. For example, in the case of Automedx Inc. v. Artivent Corp., the sale of demonstration models of portable medical ventilators to the military was found to be a [...]