The US House of Representatives has approved a bill that will tighten the law on trade mark dilution in the US, making it easier for trade mark holders to show that their mark has become blurred or tarnished.

The bill was introduced in the wake of a ruling by the Supreme Court which said that in order to succeed in a dilution action, a trade mark owner had to show evidence that a competitor caused actual harm by using a "sound-alike" or "knockoff name."

The case concerned lingerie retailer Victoria's Secret, which had brought an action against a small Kentucky-based sex shop called "Victor's Little Secret," claiming that the name diluted its trade mark.Ultimately, the Supreme Court found that use of the name "neither confused any customers or potential customers, nor was likely to do so."Trade mark owners were not pleased with the ruling, and as a result legislators are now seeking to change the law.The proposed Trademark Dilution Revision Act of 2005 therefore amends the 1995 Federal Trademark Dilution Act by providing that:
  • likely rather than actual dilution is necessary – creating a lower burden of proof for trade mark owners;
  • claimants do not need to show economic injury, competition or "actual or likely confusion";
  • the senior mark must be shown to be famous among the US public in general, rather than in a particular location, or market sector;
  • both blurring (where the distinctiveness of the famous mark is reduced) and 'tarnishment' (where the reputation of the famous mark is harmed) are covered by the Act; and
  • free speech rights – for news reporting or parodies, for example – are specifically protected.
The bill will now be considered by the Senate.
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