Supreme Court Weighs Booking.com Trademark Battle
Hotel reservation company Booking.com Monday urged the Supreme Court
to grant the company trademark protection for its name, even though
generic terms are typically not eligible for trademarks.
At a first-of-a-kind hearing conducted via telephone and broadcast in real-time on C-SPAN, Booking.com
lawyer Lisa Blatt contended that consumers recognize the phrase
“Booking.com” as referring to a specific company. Therefore, Blatt
argued, the business is entitled to a trademark, despite the generic
nature of “booking.”
While the outcome of the case is hard to
predict, several judges expressed concerns that allowing a company to
trademark a generic term followed by “dot-com” would enable that company
to monopolize language.
“You are seeking a degree of monopoly
power that nobody could have had prior to the Internet age,” Justice
Samuel Alito told Blatt. “I take it a company could not have registered
'booking company,' but because of the Internet, you have Booking.com,
which gives you an advantage over other companies that are in that
business. And now you want to get even more advantage by getting
trademark protection for that.”
Justice Sonia Sotomayor said she was also “troubled” by “the monopoly situation.”
She
additionally raised practical concerns over how the U.S. Patent and
Trade Office would determine whether consumers associated a generic name
with a particular company.
“Are they required now to run their
own consumer perception surveys before they determine that a particular
name is generic?” she asked Blatt.
Sotomayor also wondered
whether tying trademark protection for names like Booking.com to
consumers' perceptions would “lead inevitably to the registration of
every single common name of every business and then a expensive legal
fight on whether it's become generic or not.”
Blatt responded
that the Patent and Trademark Office was “up to the task,” adding that
the agency had granted trademarks to other other common words followed
by dot.com, such as “weather.com.”
“When they let in weather.com,
they looked at different evidence and said, wow, weather.com has a big
consumer fan base and has the primary significance of being a brand,”
Blatt said.
“That's good for consumers,” she added. “You want
consumers to know when they go to weather.com they're getting
weather.com and not accuweather.com.”
The battle over the site's
name dates to 2016, when the U.S. Patent and Trademark Office rejected
Booking.com's request for trademark. Booking.com then challenged that
decision in court.
U.S. District Court Judge Leonie Brinkema in
Alexandria, Virginia sided with the company in 2017, ruling that even
though the word "booking" is generic, adding the top-level domain ".com"
entitled the company to trademark protection.
The Patent and
Trademark Office appealed to the 4th Circuit Court of Appeals, which
also sided with Booking.com -- but for slightly different reasons. The
appellate judges said the agency failed to prove that consumers believe
“booking.com” refers in general to online hotel reservation services.
The
agency then appealed to the Supreme Court, where it argued that
conferring trademark protection on Booking.com could enable the company
to prevent competitors from using the word “Booking” in a domain name.
Booking.com
countered that a survey showed nearly 75% of consumers recognize
Booking.com as a brand, and not a generic service. The company also said
that trademark protection would allow it to more easily police
typosquatting and fraud.
Among other arguments, Booking.com
argued in its written papers that trademark protection would allow the
company “to prevent competitors from opening storefront Booking.com
travel agencies, or from diluting its brand by selling
Booking.com-themed travel products in airport shops.”
On Monday,
Justices Stephen Breyer and Ruth Bader Ginsburg both suggested that
Booking.com did not need a trademark to deal with those concerns,
because it could sue typosquatters or fraudsters for unfair competition.
The court is expected to announce a decision within a few months.
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