Knobbe Martens attorneys Jeff Van Hoosear and Diana Wade discuss the dispute over the use of clearly iconic names associated with Yosemite National Park.
Yosemite Case Suggests No 'Iconic Names Exception' for TMs | Law360
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Yosemite Case Suggests No 'Iconic Names Exception' For TMs
Law360, New York (March 14, 2016, 10:49 AM ET) --
While it has not been as loud and flashy as other recent trademark cases in
the news (i.e., the Washington Redskins), the dispute over the use of clearly
iconic names associated with Yosemite National Park is fascinating from a
trademark perspective. Analysis is difficult, however, because there are
presently many more questions than answers. The allegations in the
complaint, amended complaint and answer suggest that there are widely
differing interpretations of the obligations laid out in a contract between the
plaintiff, DNC Parks & Resorts at Yosemite (“DNCY”), and the defendant, the
National Park Service (“NPS”). Yet, from the perspective of trademark law, the
dispute seems to center around one question: If DNCY is indeed the owner of
valid trademark registrations, does it have the presumptive right to prevent
others, such as NPS, from using the trademarks?
The short answer, assuming no countervailing contractual obligations, is
“yes.”
There is no question that the trademarks at issue in the dispute are iconic
names endowed with great cultural and popular significance. The
Ahwahnee hotel and Yosemite National Park: two national treasures bound
together in the American collective conscious. Could The Ahwahnee hotel
exist anywhere but in Yosemite National Park? Most people would say “no.”
If we remove this emotional element, however, the dispute is fairly
straightforward with respect to the trademark issues. A landowner leases a site to a tenant who builds a
hotel and gives it a name. The hotel becomes famous, and the tenant obtains a trademark registration
for the name. The lease subsequently expires or terminates, and the tenant moves to another location.
The first building remains, but subsequent tenants would not have the right to use the same name for
hotel services, just as a subsequent tenant in a shopping mall would not have the right to continue using
the name of a store that had previously occupied the space. The original tenant continues to own its
trademark registration, and the exclusive right to use its trademark. The law is clear that the first to
register, or the first to use, a trademark is the owner of the trademark.
It came as a surprise to many people that “Yosemite National Park” and “The Ahwahnee” are registered
trademarks, and that the owner of the trademark registrations is not the NPS. Several trademark
registrations for names appearing in the park have existed since the late 1980s. DNCY’s predecessor
(Yosemite Park & Curry Co.) owned registered trademarks in connection with hotel and restaurant
Jeff Van Hoosear
Diana Wade
2. services and other related goods and services. When DNCY took over the management of concessions in
the park in 1993, it also acquired many trademark registrations, including registrations for the name and
logo for The Ahwahnee hotel. DNCY maintained and renewed these registrations over the years.
DNCY filed additional applications for trademarks identical to, or including the names of, restaurants and
services in the Park. In 1995, the United States Patent and Trademark Office granted a registration to
the mark “Yosemite and Design” for use in connection with “providing recreational activities and
facilities in a national park.” In the early 2000s, DNCY filed applications for: “The Ahwahnee” for use on
dishware, blankets and clothing; “Yosemite National Park” for use on pens, mugs and shirts; “Curry
Village” for use with ice skating services; and “Wawona” for use with restaurant and hotel services. The
USPTO issued registrations for all of these marks.
Since DNCY is the owner of the registration for the trademark “The Ahwahnee,” it is the presumptive
owner of the trademark, and it can keep others, even the NPS, from using the mark in commerce.
Pursuant to Section 32 of the Lanham Act,[1] which governs federal registered trademarks, “any person”
who uses a reproduction of a mark in commerce without consent of the registrant is liable for trademark
infringement. Under the Lanham Act, “any person” includes “the United States, all agencies and
instrumentalities thereof, and all individuals, firms, corporations or other persons” acting on behalf or
with authorization of the United States.
The NPS did have an opportunity to prevent the “The Ahwahnee” or “Yosemite National Park” from
becoming registered trademarks. Section 13 of the Lanham Act[2] allows “any person who believes that
he would be damaged by registration of a mark” to file an opposition at the United States Patent and
Trademark Office within 30 days after publication of the mark in the Official Gazette. DNCY stated in its
complaint that the NPS brought no oppositions against the Yosemite-related trademarks. In its answer,
the NPS admitted that it did not file any opposition. However, NPS also claims that it was unaware of
what DNCY was doing and that DNCY had no right under the contract to file any application for
trademark registration without its consent.
In response to the lawsuit, the NPS has begun changing some of the names. The Ahwahnee hotel is now
the “Majestic Yosemite Hotel” and Curry Village is now “Half Dome Village.” However, the NPS will
continue to use “Yosemite National Park.” In its complaint, DNCY claimed that they offered the NPS and
the new concessionaire a royalty-free license to use the marks for the duration of the litigation. The NPS
did not accept the offer. It is speculated that the reason the NPS refused this seemingly generous offer is
that the evidence will show that lodging at “The Ahwahnee” hotel, even under another name, will still
remain at capacity and still require reservations a year or more in advance. As such, it is really the place
and location of the hotel and not the name that attracts the visitors.
One of DNCY’s stated goals in pursuing this lawsuit is to receive fair value for the transfer or assignment
of the Yosemite-related trademarks to the next concessioner, Aramark. DNCY claims that under its
contract with the NPS, the NPS is obligated to require DNCY’s successor to purchase its “operational
assets” which include the trademarks. In its answer to DNCY’s complaint, the NPS argued that even if
such a contractual obligation exits, the DNCY expert grossly overestimated the value of the trademarks
in issue. The NPS claims that goodwill in the trademarks is primarily the result of the use of the
trademarks in connection with the government-owned properties within Yosemite National Park.
According to the NPS, DNCY’s expert did not take this factor into consideration when preparing the
valuation estimate.
An interesting wrinkle to the lawsuit was a filing by the NPS at the USPTO on Feb. 26, 2016, which