Thursday, November 7, 2019

Comic Con or Comical Conflict?


Introduction:

How important is our name to us? Do we view it as just a sound people make in order to get our attention, or is it really important to us? A celebrity may change their name when it’s already taken by another celebrity or if they want to sound more professional in the artistic world. There are shortened versions of long names and elongated versions of short names. But if someone started using a nickname that you gave yourself, would you sue them for it? To quote Professor Dryer, spending time on that would sound like “a bunch of piddlyshit,” wouldn’t it? Who would spend time debating such a thing? Well, one corporation, in particular.


Background:

At the July 2014 San Diego Comic Convention (“comic con,” for short), an Audi R8 was seen driving around the convention skinned with the name “Salt Lake Comic Con” on the hood of the car, promoting the yearly, Utah-based convention that had started in the Fall of the previous year. San Diego Comic Con, not wanting their trademark to be used without their consent, subsequently filed a lawsuit against the founders of Salt Lake Comic Con.

San Diego Comic Convention (SDCC) is a non-profit organization that brings together a large group of people who share an “appreciation for comics and related popular art forms, including participation in and support of public presentations, conventions, exhibits, museums and other public outreach activities which celebrate the historic and ongoing contribution of comics to art and culture.”1
Salt Lake Comic Convention (SLCC, currently known as “FanX”) is “Dan Farr Productions’ annual event, and is now the most attended convention in the state of Utah and the largest comic convention in North America per capita. . . [and] is dedicated to producing spectacular celebrations of popular culture that lead the market in providing exceptional and rewarding experiences for our consumers, fans, celebrity guests, vendors and partners.”2


The Case:

In August of 2014, SDCC filed a lawsuit against Daniel Farr and Bryan Bradenburg, co-founders of Dan Farr Productions (DFP) and SLCC/FanX, on two complaints:

1. Federal Trademark Infringement (under 15 U.S.C. s 1114); and

2. False Designation of Origin (under 15 U.S.C. s 1125(a))3

Since 1970, SDCC has held its Comic Convention every year in San Diego, California. DFP, however, has only held its Comic Convention every year since 2013 in Salt Lake City, Utah. The SDCC trademarks at issue in this case are:

1. Comic-Con;

2. Comic-Con International;

3. Anaheim Comic-Con; and

4. [symbol]5




SDCC proposed that the court in San Diego, California had personal jurisdiction over DFP. The jurisdiction was classified as personal due to “information and belief” that DFP “advertise[d] and transact[ed] business throughout the United States, including in the State of California;” that DFP has “purposely availed [itself] of doing business . . . by, among other things, advertising and promoting the convention in this district;” and that DFP “[has] also engaged in continuous acts of trademark infringement . . ., and [has] caused injury to SDCC in this district as a result of such conduct.”3



The question of this case is whether or not DFP infringed SDCC’s trademarks. The actual jury trial lasted eight days and on December 8, 2017, the jury found that DFP had infringed SDCC’s trademarks through the use of advertisement. As to false designation of origin, the jury ruled in favor of DFP. Although SDCC owns the trademark, the judge denied SDCC’s request to bar DFP from using the term “Comic Convention,” saying such an order would “prohibit legal conduct.” 4



As a result of the jury ruling, the judge ordered DFP to pay $20,000 for infringing the federally registered marks of SDCC. 4 In a separate order, the judge granted a motion from SDCC and ordered DFP to pay SDCC $4 million in attorney fees and costs.5 The judge granted the motion for attorneys' fees based on the reasoning found under Section 35(a) of the Lanham Act, 15 U.S.C. s 1117(a) regarding “exceptional cases.”6
The nonexclusive factors in determining if a case is “exceptional” include: “frivolousness, motivation, objective unreasonableness (both in the factual and legal components of the case) and the need in particular circumstances to advance considerations of compensation and deterrence. . . . [Examining] the totality of the circumstances, the Court finds that this case is not a dime a dozen. Instead, it is a trademark infringement lawsuit that stands out from others based on the unreasonable manner it was litigated and thus an award of attorneys' fees and costs to SDCC is justified.”5



Questions:

1. Do you agree with the court’s decision that this case qualified as “exceptional” and that the award for attorneys’ fees and costs to SDCC was “justified”?

2. Who is your favorite superhero or comic book character?



Cited Sources
1. San Diego Comic Con International

2. FanX Salt Lake Comic Con

3. Original Complaint (2014) 2014 WL 3953967

4. Comic-Con's trademark enforced, infringement defenses ruled out (2018)
2018 IPDBRF 0084

5. Order Granting Plaintiff’s Motion for Attorneys' Fees (2018)
2018 WL 4078639

6. Recovery for Violation of Rights 15 U.S.C. s 1117(a)


Other Sources
1. WAR OF THE WORDS: San Diego Comic-Con officially files lawsuit against Salt Lake Comic Con (2014)
https://www.heraldextra.com/entertainment/special/comic-con/san-diego-comic-con-officially-files-lawsuit-against-salt-lake/article_332b66d3-0f69-5a0f-908c-dae3ce94dddd.html

2. Salt Lake Comic Con infringed on San Diego Comic-Con’s name, should pay $20K, jury says (2017) https://www.sltrib.com/news/2017/12/09/jury-sides-with-san-diego-in-comic-con-trademark-infringement-dispute/

3. FanX ordered to pay San Diego Comic-Con's $4 million legal fees for trademark lawsuit (2018) https://www.deseret.com/2018/8/24/20651976/fanx-ordered-to-pay-san-diego-comic-con-s-4-million-legal-fees-for-trademark-lawsuit

16 comments:

  1. Dan, just a quick off-topic comment to stir the pot:
    The originators of Comic-Con should have become the licence holders for the name Comic-Con and then leased the name to any entity seeking to have their own Comic-Con, like the group in Salt Lake.

    ReplyDelete
    Replies
    1. Georgi,
      That would have been a very good decision for them to do this because it would have potentially prevented future issues such as this and would have generated an unimaginable amount of revenue. Great comment.

      Delete
  2. Okay, Dr. Arcula, I am back!
    So it appears that SDCC's trademark is valid, thus making the lawsuit real and having teeth.
    I do agree that the case is exceptional. I think we need to put the term, exceptional, into context.
    SDCC was asked by the Plaintiff's stop using "Salt Lake Comic-Con."
    The San Diego group has used the trademark for more than 50 years and has invested resources to the promotion of the popular arts convention resulting in world-wide recognition of the Comic-Con convention held in San Diego annually. (1)
    According to the ruling, however, the San Diego group was only awarded $20,000. Exceptional, considering that the San Diego group was seeking up to $12 million in damages.
    I am genuinely confused at this point.
    The case seems on its face to be worthy of a multi-million dollar settlement. Yes, Dr. Arcula, I do feel that the case is justified.
    Have you ever purchased something at the Dollar Store that looked just like the name brand at Walgreens, only to get home and realize it was a knock-off? Nuff said.
    Fun post,Dan. I wish I had gone to law school so that I could really tear this apart for us!

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    Replies
    1. I agree with Georgi...I am confused! The SDCC had the trademark and have been having the Comic-con event for years. In my opinion (maybe it's the Californian in me) but I do not think the lawsuit that SDCC brought was ridiculous as all. And I don't understand why they were only awarded $20,000.00 but the SDCC was awarded millions in attorney's fees. If I had started something that had been pretty much exclusive to San Diego for 30 years I would want compensation if other people started using it and making money. I don't know what they did or did not have but like Georgi stated they should have become the license holder and leased the use of it. It is a bit like a franchise. The corporation does all the leg work, advertisement, and sometimes creation/inception of an idea/product. The franchisee pays a fee to start and then pays a monthly or yearly royalty to the Corporation. Now the law is the law and under the exception it sounds like they were within their right. I would have dive deeper into the case but I am not a fan of comics or anything related so it would not peak my interest and that would also be the reason that I do not have an answer for a favorite character or superhero either.

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    2. It is a confusing thing, for sure! It's interesting that it took 3 years for this thing to settle, but I think it's a good example of a bunch of things we're learning in class.
      Also, Georgi, it cracks me up every time you call me Dr. Acula! Haha.

      Delete
  3. 1. https://i09.gizmodo.com/sna-diego-comic-con-wins-lawsuit-over-comic-con-tradema-1821150395

    ReplyDelete
  4. Great post Dan. I do think it was exceptional as the CA based Comic Con had a large following, lengthy history and name recognition along with a clear trademark. I am not familiar with the net worth, holdings or liquidity of either party but some of these decisions are based on the litigating parties financial imbalance. It is very easy to run up millions of dollars in legal fees during a 3 year case between multiple states and media attention. This validates the point of weighing the pros and cons of a potential case and choosing your battles in business.

    ReplyDelete
    Replies
    1. Thanks, Cain! Yeah, that's true. The case went on for a long time, so a large amount of legal fees isn't exactly unexpected.

      Delete
  5. I followed this case pretty closely as I thought it was pretty ridiculous. Part of the reason i disagree with the ruling in favor of SDCC was that they until that time completly ignored all the other cons. There were about 10 or more comic cons that happened yearl and other groups that used the "con". https://www.techdirt.com/articles/20180906/10085140589/more-comic-conventions-change-their-names-after-crazy-sdcc-attorneys-fees-injunction-ruling.shtml
    At this time we are now seeing other cons switching out due to fear about being sued.

    It was my belief that since they were letting other groups use the con so freely until that point that they gave up on holding the rights to con much like the use of easements. So i wouldn't think that not only forcing them to change their name but awarding legal fees was justified, SDCC i don't believe had any actual harm and were not losing out on other Cons existing especially SLCC. It really was mostly them being incredibly petty...but thats just my opinion.

    As for your second question ifor me it was always Captain AMerica.

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    Replies
    1. I followed it as well. I thought it was interesting because SDCC never bat an eye at the other Cons, but then SLCC started to actually give them a good amount of competition and I think it scared them.

      And Cap is always a good choice!

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  6. Dan I love that you wrote about this. I think this whole case was a little ridiculous. For years, when I thought of Comic-Con, I only thought of San Diego, but when Salt Lake started it’s own comic con I thought it was such a great idea for our city’s economy, but I questioned if there would be a lawsuit. However, not being super familiar with comic conventions I didn’t know there were other locations also using the name “Comic Con.”

    In San Diego, this event is one of the biggest moneymakers for the city and they take a lot of pride and ownership in it, so when a lawsuit was filed I was not surprised. If you’ve ever been to San Diego for this event you know that during Comic Con the San Diego Convention Center is filled with people wall to wall. Streets are blocked off through the downtown Gas Lamp district where bars and restaurants also get involved in the theme and fun of it all. People are dressed up everywhere and the city caters to this event. For 2019, it’s estimated to have had 135,000 attendees and generated $149 million in regional impact to San Diego, with a direct attendee spend of $88 million. Hotels and sales tax generate $3 million because people from all over the world travel to San Diego for this massive event.

    Money wise, I don’t’ think San Diego’s Comic Con suffered much damages, but it was risky of DFP to use the name in the first place. However, in my opinion, Salt Lake’s Comic Con Convention was a threat to San Diego Comic Con and that is why they sued. Salt Lake Comic Con grew quickly and continues to grow even with the name change to Fan X Salt Lake Comic Convention. However, based on how long the San Diego Comic Con has gone on and all that goes into the event I do agree with the courts decision, but I don’t agree with the attorney fees. I think the fees should have been denied or reduced because it seemed unfair to DFP. I also question how fair the jury was, seeing how they were all from San Diego.

    https://visitsandiego.com/2019/07/breaking-down-comic-con-2019-numbers


    ReplyDelete
    Replies
    1. Geez. I'm gonna have to go to San Diego for comic Con one of these years! I agree that SLCC started to become a threat or give SDCC some competition, and they didn't like it.
      I didn't think about the jury being from San Diego! That's a good point!

      Delete
  7. Clearly names matter to parties on both sides of this issue. “Rather than just settling the kerfuffle out of court, Farr and Brandenburg not only pursued and were granted a patent on the name “Salt Lake Comic Con,” but dove into a legal battle with the (SDCC) convention in part to defend other events with similar names.” (1) In other words, it isn’t fair to trademark common or descriptive words like “comic” and “con.” SDCC or SLCC as a trademark event is totally fine. But trying to own the English language through trademarks of common words is infused with economic and power disparity. While this case has some merit on general trademark issues, I do not agree that this case qualified as exceptional and the award of attorney fees and costs is not justified in my view. In fact, there have been numerous other trademark cases that would be considered more “exceptional” in my view such as Facebook v Teachbook over the use of the word “book” (2). Or more importantly in Sam Buck’s case where the court decided “There is no right to use an individual’s own name in business where the use confuses the public.” (3) I agree with some of the other comments made that it seems SDCC motive to finally file an infringement lawsuit was prompted more by the competition factor rather than the use of the term comic con. “Comic conventions aren’t a new concept. Finding the same success with them as Dan Farr and Bryan Brandenburg have with Salt Lake Comic Con, however, is entirely unheard of.” (4) Additionally it was noted in SLCC’s appeals that “SDCC was not the first to produce a comic con … in 1995 SDCC began, in ineffective fits and starts, trying to corner the market on terminology by claiming exclusive rights in the standalone, generic term “comic con” … Comic cons are held in nearly every state of the United States including New York Comic Con, Amazing Arizona Comic Con, Emerald City Comic Con, and Tampa Bay Comic Con. … Over 100 competitors use the unhyphenated form of Plaintiff’s trademark against petitioners.” (5) Overall, I find it disturbing the trend of companies trying to copyright generic terms such as comic con, footlong, backcountry, o.j., sky, book, and other common words. What if dryer sheets became Dryer Sheets? The basic English language should not be owned or carved out with exclusive rights by companies or individuals that can afford to litigate the protection of such. Trademark protection has grown into an multiheaded villain and it will probably take the likes of Wonder Woman to once again restore justice and fairness to the purpose of trademark laws.

    (1) https://www.heraldextra.com/entertainment/special/comic-con/dan-farr-and-bryan-brandenburg-gearing-up-for-another-record
    (2) Facebook Inc v Teachbook.com. (2010, August). Justia Dockets and Filings http://dockets.justia.com/docket/california/candce/5:2010cv03654/231036/
    (3) Starbucks vs. Sambucks Coffee: Beverage Giant Wants Shop Owner to Change Her Name. ABC News/ 20/20 http://abcnews.go.com/2020/GiveMeABreak/story?id=1390867
    (4) https://www.heraldextra.com/entertainment/special/comic-con/dan-farr-and-bryan-brandenburg-gearing-up-for-another-record
    (5) https://static.reuters.com/resources/media/editorial/20171027/comicconpriorrestraint--Utahbrief.pdf

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    Replies
    1. Hahaha, that was the best segue from question 1 into question 2 that I've ever seen! I agree, Wonder Woman is definitely one that could help in this situation!

      Delete
  8. Dan,
    why does it not surprise me that your blogpost was about this? I do agree that the judge ruled correctly because not only was SLC notified of the trademark infringement, they continued to use it thus leading to litigation. If they had changed the even name to somewhat resemble San Diego's Comic-Con to Comi-Convention etc, then they may have gotten away with it. I think since other cities have done the same thing yet were not taken to court over the matter, I feel this lawsuit was a form of cease and desist to the public to prevent ongoing use of the long standing convention name. Great post!

    My favorite comic book character would have to be HQ. She's just misunderstood. Plus superheroes are overrated.

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  9. I honestly thought the whole case was ridiculous. I know there were other places that used the term "comic Con" as part of their name such as;Rose City Comic, New York Comic Con, Emerald City Comic Con, etc, and they never had a problem. When I heard the judge made a permanent injunction prohibiting FanX from using the term “comic con” in promotional material, I couldn't believe it. I don't think this case should have happened at all, but I'm glad SDCC only got $20,000 in damages for breach of trademark, instead of the $12 million. When SDCC appealed wanting to seek reimbursement of legal fees for the case too, that sounded very petty to me. Esspecially since this lasted about 3 years due to the motions, filings and inability to settle. I was honestly more disappointed in the fact that these corporations were fighting over this term that brought people together in my mind, yet this case was doing the exact opposite. In a way, I've used/c used Comic con in generic ways all the time without correlating it to SDCC. I definitely think this was meant to set precedent to other cities.

    My favorite is Captain America.

    ReplyDelete

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