Transformational Trademark Law in Cyberspace*
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RUTGERS LAW REVIEW VOLUME 60 Summer 2008 NUMBER 4 SPACE PIRATES, HITCHHIKERS, GUIDES, AND THE PUBLIC INTEREST: TRANSFORMATIONAL TRADEMARK LAW IN CYBERSPACE* Thomas C. Folsom" "I aim to misbehave"1 ABSTRACT Modern trademark law has come of age. Like copyright and patent, it not only has a metaphysic of its own, but it also has the capacity to take goods and services out of the commons. The (©Thomas C. Folsom 2008. Associate Professor, Regent University School of Law; B.S., United States Air Force Academy; J.D., Georgetown University Law Center. I am grateful to Peter K. Yu and the participants at the Drake University Intellectual Property Scholars Roundtable before whom I presented a version of this paper in February, 2008 (none of whom should be blamed for the conclusions advanced herein, though each spurred me to clarify them). I thank my Graduate Assistants who have helped on earlier versions of the manuscript over the years: Dean Scharnhorst, M. Joanna Craine, Benjamin Miller, and Jeremy Pryor, and also Timothy Creed, Toni Duncan, Joshua Jewett, Leo Lestino, and Ryan McPherson. A version of the glossary appended to this Article previously appeared in Missing the Mark in Cyberspace: Misapplying Trademark Law to Invisible and Attenuated Uses, 33 RUTGERS COMPUTER & TECH. L.J. 137, 240 (2007), and I thank the staff and editors of that journal, especially Thomas Wilhelm. Finally, I thank all my colleagues and students, former clients, partners, and associates who gave me the chance to learn something about trademark law. All remaining errors, omissions, and oversights are mine alone. 1. As spoken by the space pirate, Captain Malcolm Reynolds, in SERENITY (Universal Pictures & Barry Mendel Productions 2005). Cf. DOUGLAS ADAMS, THE ULTIMATE HITCHHIKER'S GUIDE 243 (Wings Books ed. 1996) (characterizing the space traveler's guide, The Hitchhiker's Guide to the Galaxy, as having a "compendious and occasionally accurate glossary"). "Pirates" are discussed infra Part III.A; two glossaries are appended to this Article at 909-18. RUTGERS LAW REVIEW [Vol. 60:4 tendency of modern trademark law to diminish, waste, or spoil the commons is nowhere more apparent than in cyberspace. My prior analytic, descriptive, and doctrinal articles asserted the leading cases either overprotect or underprotect marks in space, and both extremes are wrong. The cases reach the wrong results at the critical margin because they neither define cyberspace nor distinguish the mark-type conflicts typically occurring among the characteristic users there. This normative article specifies a recognizably trademark-style solution to mark-type conflicts in an objective cyberspace. The solution is to add a transforming factor appropriateto the new environment: the "natureand place of use." This new factor is specified for rule-based application.It extends trademark-like protection to invisible, attenuated, and expropriating users, including such uses by way of addresses, magnets, markers, roadblocks, and detours in cyberspace, requiring a reasonable technological accommodation as a flexible remedy in favor of the mark proprietor. The remedy preserves the public interest in a robust cyberspace. It permits the value-added indexer to map cyberspace and to sell advertising to pay for the resulting hitchhiker's guide. The new factor avoids extremes, leaves trademark law transformed but undamaged, and provides a principled, practical, and predictable way to distinguish space pirates from guides, disarming the one while supporting the other. IN TRODU CTION .....................................................................................827 1. DESCRIBING THE PROBLEM ....................................................... 829 A . Cyberspace ......................................................................... 832 1. Current Confusion about Cyberspace ........................ 833 2. Defining an Objective Cyberspace and its Characteristic Values .................................................. 837 B. W hat H appens There ......................................................... 842 1. O verprotection ............................................................. 845 2. U nderprotection .......................................................... 848 3. Antimony, Paradox, and Conflict Within the L eading C ases .............................................................. 850 4. In-between or Ad Hoc Cases ....................................... 852 C. OrdinaryPrinciples of Applicable Law ............................ 855 1. Ordinary Principles of Trademark-Related Law ...... 856 2. Ordinary Trademark Law .......................................... 857 3. Doctrinal Creep, Reverse Creep, Equivocation, and Feedback Loops .................................................... 864 4. Trademark-Related Laws, Rules, and Norms ........... 869 D. This Is a Systemic Failure,Predicted by New Institutional Econom ics .................................................... 873 II. ANALYZING THE PROBLEM (OBJECTIVE FACTORS) .................... 877 A. Positinga First Statement: Cyberspace ........................... 878 2008] SPACE PIRATES B. Positinga Second Statement: Cyberspace Interventions...................................................................... 880 C. Positinga Third Statement: The Nature and Place of Use (G eneral) ..................................................................... 884 D. Summary: The Limits of Analysis (Incomplete A naly tics) ...........................................................................886 III. DESIGNING A SOLUTION: SPACE PIRATES, GUIDES, AND THE PUBLIC INTEREST ...................................................................... 887 A. Choosing to Disarm Pirates(Broad Liability)................. 887 B. Serving the Public Interest (Narrowly Tailored, F lexible R em edies) ............................................................. 890 C. Designing Useful Law: Deriving a Fully Specified F a ctor ................................................................................. 8 9 7 D. The Advantages of Designed Law (Making Sense of Cybersp ace) ........................................................................ 901 E. What Remains to Be Done................................................. 903 C ON CLU SION .............................................................................. 905 APPENDIX A: CYBERSPACE PROPOSITIONS AND FACTORS ......... 909 APPENDIX B: CYBERSPACE GLOSSARY ....................................... 912 INTRODUCTION This Article asserts there is a systemic problem with invisible, attenuated, and expropriating users in cyberspace.2 It claims the leading cases are not only in conflict, but wrongly decided and likely either to diminish the value of cyberspace or disfigure the law itself. One line of cases diminishes the value of cyberspace by overprotecting to the point of retarding navigation in space. Another and opposite line of cases diminishes cyberspace by underprotecting 2. That is, uses of a designation by an actor that include a trademarked term of another and which serve as an invisible or attenuated address or magnet to draw users to the actor rather than to the other (a "marker"), or which operate as a roadblock or detour effectively expropriating and preventing the other from employing its own marks (a "spoiler"). Such invisible, attenuated, or expropriating addresses, magnets, roadblocks, and detours function as markers or spoilers rather than, or in addition to, serving "as" a mark on the Internet or elsewhere in cyberspace. An example of an invisible and attenuated use would be an embedded tag or other marker within a Web site, ordinarily invisible to a user, but which is designed to reach a search engine, such as Google, to draw traffic to a site of someone other than the mark proprietor. Another example would be a keyword marker based on a trademarked expression that triggers targeted advertising for goods or services offered by a competitor of the mark proprietor. An example of an expropriating use would be the preemptive registration of another's mark in an address, a vanity phone number, or a vanity domain name. See Appendix B, Cyberspace Glossary (explaining "attenuated, invisible, and expropriating" uses, and other terms used in this Article). RUTGERS LAW REVIEW [Vol. 60:4 to the point of reducing cyberspace to an outlaw zone. Together, these cases diminish or spoil cyberspace and disfigure trademark-related law by contorting "initial interest" confusion when overregulating and by distorting a "use" requirement when underregulating. Part I of this Article describes the current problems with markers and spoilers in cyberspace. Part II analyzes and reframes the existing materials using recognizable principles of trademark- related law and discerns an objective pattern by which the materials can be factored to derive a generalized solution: a new factor, the "nature and place of use," for trademark-related problems in cyberspace. Part III extends the analysis by designing a more complete and normative solution. This solution distinguishes pirates from guides; takes into account the public interest in a limited remedy for invisible, attenuated, and expropriating uses; and expands the "nature and place of use" into a more robust and rule- specific form. There are two cooperating features to the solution: one is the liability factor (nature and place of use) and the other is a limited and flexible remedy. The fully specified solution combines the two. The final resolution is at once a more careful