opinion

Brand News: How to Lose a Company's Trademark

Earlier this year, in a case of first impression before the Federal Circuit, the court directly addressed “whether the offering of a service, without the actual provision of a service, is sufficient to constitute use in commerce under Lanham Act § 45, 15 U.S.C. § 1127.” The court said no.

In 2008, David Couture filed a trademark application for Playdom for writing and production services. As part of the use based application pursuant to Lanham Act. § 1(a), Couture submitted a screenshot of a web page bearing the trademark to the U.S. Patent and Trademark Office as proof of use of the mark in connection with the identified services. That page simply had the Playdom name and stated “[w]e are proud to offer writing and production services for motion picture film, television, and new media.” The USPTO approved the application in 2009, but no services were actually provided until 2010.

The Couture decision emphasizes the importance of proper trademark use at the time of filing to support a resulting trademark registration.

One month after Playdom’s application was approved, Playdom Inc. (a different company) filed a trademark application for the identical trademark, Playdom. The new application for Playdom was refused based on the Couture application for Playdom. In response to the refusal, Playdom sought cancellation of Couture’s now issued registration for Playdom before the Trademark Trial and Appeal Board (TTAB). Despite Couture’s belief that the availability of the services was sufficient to support the claim of use, the TTAB granted the cancellation of the Couture registration stating that Couture “’had not rendered his services as of the filing date of his application’” because he had “’merely posted a website advertising his readiness, willingness and ability to render said services.’” Accordingly, the original application was void ab initio. Couture appealed to the Federal Circuit, which upheld the decision of the TTAB.

In discussing its decision, the Federal Circuit noted that in its prior decision, Aycock Eng’g, Inc. vs. Airflite, Inc., 560 F.3d 1350, 1357 (Fed.Cir.2009), it stated that “[a]t the very least, in order for an applicant to meet the use requirement, there must be an open and notorious public offering of the services to those for whom the services are intended.”

The Federal Circuit, however, went on to clarify that it did not suggest in Aycock that an open and notorious public offering alone is sufficient to establish use in commerce. Rather, the Federal Circuit stated that the “statute is clear that a mark for services is used in commerce only when both [1] ‘it is used or displayed in the sale or advertising of services and [2] the services are rendered.’” 15 U.S.C. § 1127. Thus, in the Couture case, the mere advertising of a service “that the applicant intends to perform in the future will not support registration.”

The Couture decision emphasizes the importance of proper trademark use at the time of filing to support a resulting trademark registration. Since the Couture application was based on use, the trademark had to have been in acceptable use on the date the application was filed. If there is no use on the filing date of an application, the application can be filed based on an-intent to use the trademark, wherein once perfected, trademark rights are protected as of the filing date. As seen from this case, the consequences for failing to file the appropriate application can be catastrophic.

This article is for educational purposes only and nothing in this article is intended to be, nor should be considered legal advice.

Attorney Anna Vradenburgh assists clients in patent and trademark prosecution, and represents clients in trademark opposition matters, domain name dispute matters, and patent and trademark litigation.  For more information, contact Vradenburgh at (818) 946-2300, or email her at anna@apogeelawgroup.com

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
opinion

From Compliance to Confidence: The Future of Safety in Adult Platforms

In numerous countries and U.S. states, laws now require platforms to prevent minors from accessing age-inappropriate material. But the need for safeguarding doesn’t end with age verification. Today’s online landscape also places adult companies at uniquely high risk for inadvertently facilitating exploitation, abuse or reputational harm, or of being accused of doing so.

Andy Lulham ·
opinion

What Adult Businesses Need to Know About Florida's Age Verification Law

The rise and proliferation of age verification laws has changed the landscape for the online adult industry. A recent and compelling example is the state of Florida, where Attorney General James Uthmeier has filed multiple complaints against major platforms as well as affiliates accused of violating the state’s AV law.

Corey D. Silverstein ·
opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
Show More