Tag Archives: Trademark Dispute

Microsoft forced to rebrand following BskyB’s trademark triumph

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RegisteredTrademark_jpgMicrosoft has renamed its cloud storage service SkyDrive to OneDrive following a trademark infringement dispute with BSkyB, as discussed previously on our Azrights blog.

The broadcaster first issued a complaint to the EU’s trademark office in June 2011, insisting Microsoft’s use of the word “sky” infringed its copyright.

Microsoft released SkyDrive, formerly known as Windows Live Folders and Windows Live SkyDrive, in 2007. The service has since acquired in excess of 250 million users.

While BskyB ceased its own cloud storage service at the end of 2011, it said Microsoft’s product was misleading for users of its continuing digital services, such as Sky Broadband and Sky Go.

Microsoft argued it was difficult to mistake its own cloud-based services with BskyB’s satellite, mobile and online services. However, a UK High Court ruling last summer held Microsoft would need to rename its product.

In arriving at the decision, the judge noted that customers experiencing problems with Microsoft’s SkyDrive had often called BskyB’s helpline, mistakenly believing it was responsible for providing the service.

Microsoft initially threatened to appeal the decision, but later backed down after the companies reached a settlement permitting the US computer giant a “reasonable period of time to allow for an orderly transition to a new brand,” as reported by Computer Weekly.

The rebrand has now taken place, but for Microsoft this case is all too reminiscent of its earlier dispute with Gernany’s Metro AG, which pushed the company to rename its Windows 8 Metro interface shortly after establishing itself as a household name.  Microsoft also risked losing the right to trademark Windows due its delay in trademarking the name.  Clearly, the company needs to make some changes to its practices.

Trademarks are important assets which add significant value to a brand. The lesson to take away from this case is the importance of checking that you can use a name before you launch a new product. It is so much easier to find a new name at that stage if your preferred one is problematic.

Then once a name has been identified as available, secure trademark registration in your main market straight away. It is not necessarily commercial at that stage to register in all other countries worldwide. However, if the product is successful, it’s important to have a strategy in place for registering in other markets over time to sustain the value of your brand identity. This is all too apparent following the recent European Trademark Office’s ruling that Pinterest doesn’t own rights to its name.

Hasbro Trade Mark Infringement Claim Stops Launch

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Alleged infringement of the TRANSFORMERS trade mark recently sparked a dispute between the leading computer technology company Asus and Hasbro, a multinational games business.

Hasbro is the maker of a line of toy alien robots named Transformers, able to disguise themselves as automobiles. The Transformers universe features two warring factions of these robots: the Autobots and the Decepticons. First introduced in 1984 the robots have, in the course of nearly thirty years, spawned comic books, animated TV series and a live-action movie franchise.

Filing suit for trade mark infringement, Hasbro alleges that Asus’ release of the Transformer Prime laptop takes advantage of the trade mark in order to make money, a representative stating that ‘Hasbro continues to aggressively protect its brands and products and the specific actions we are taking today against Asus underscores yet again Hasbro’s willingness to pursue companies who misappropriate our intellectual property for their own financial gain.’

So, why is a toy company concerned about a consumer electronics business using the word TRANSFORMERS?  After all, there seems to have been no quarrel between Hasbro and Boots over registration of TRANSFORMERS for cosmetics. How likely are consumers to be confused into linking Asus to the Autobots?  Tablet devices and toys do seem quite far removed from each other.  However, the combination of TRANSFORMER and PRIME does offer some support to Hasbro’s case as discussed below.

Asus has used the word TRANSFORMER when naming its products in the past, releasing the Eee Pad Transformer tablet device at the beginning of January. However, this time round the addition of the word ‘Prime’ has given rise to suspicion, as the leader of one of the robot factions is a character called ‘Optimus Prime’. Hasbro is not sure that this is just a coincidence.

Included in Hasbro’s trade mark portfolio are registrations and applications for the trade mark TRANSFORMERS PRIME in various jurisdictions.  While not yet registered in the US, Hasbro does own UK and European registrations for these words, originally filed in June 2010.  TRANSFORMERS PRIME is clearly a much closer match than just TRANSFORMERS, but is not registered against tablet devices.  It remains to be seen whether the notoriety of the TRANSFORMERS brand will tip the case in Hasbro’s favour despite differences in the goods sold under the mark.

Techweek draws a parallel between the tablet and the robots, noting that ‘the major selling point of the Asus Transformer Prime is that it converts [transforms?] into a form that closely resembles a laptop when the keyboard dock is used’, so mimicking the Transformers’ ability to disguise themselves as vehicles.  Still, the word ‘transformer’ is somewhat descriptive in this context, arguably referencing the functionality of the product rather than ripping off the robot franchise.  Dailytech further observes that ‘The Transformer Prime doesn’t convert into a truck, and the Transformer toys don’t offer the Android operating system with apps and Web-browsing capabilities.’

Asus claims that internal studies have shown ‘no issues’ with its use of the Transformer brand indicating an intention to stick with the name, but if Hasbro has its way it could be some time before the tablet reaches consumers.