Company Names:
Little guy wins trademark battle
with Victoria's Secret and gets to keep
his business name.
WASHINGTON,
D.C., April 2, 2003. In a serious upset for Victoria's Secret, the Supreme
Court made it tougher for companies with famous brand names to win lawsuits
against competitors they feel are riding on their coattails. In a unanimous
decision, the court ruled that a store in a strip mall in Kentucky named
Victor's Little Secret neither confused any consumers or potential consumers,
nor was likely to do so. The court disagreed with Victoria's Secret's
contention that the little store's company name blurred and tarnished
its reputation. The store, which sells lingerie and sex toys, was originally
known as Victor's Secret, after its owner, Victor Mosely. When Victoria's
Secret complained about the name, Victor and his wife Cathy changed the
name to Victor's Little Secret, but that apparently did not satisfy the
chain, which is owned by Limited Brands, Inc., Columbus, Ohio.
In 1995, Congress amended the
Trademark Act to cover the dilution of famous marks, Dilution was defined
as the lessening of the capacity of a famous mark to identify and distinguish
goods and services. Some trademark attorneys think the ruling will encourage
small companies to take a free ride on the backs of big consumer companies
that have spent hundreds of millions of dollars on brand building.
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