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

profile

Ricci Levy on Standing Up for the Right to Be Heard

When Ricci Levy speaks about human rights, she does not use detached, academic language. She speaks with urgency, emotion and the kind of passion that immediately makes it clear just how deeply personal this work is for her.

Women In Adult ·
opinion

Lessons From Decades of Building the Adult Internet

After my first year of college, I needed a job. So I did what people did back then: I opened the newspaper and started scanning the classifieds. One listing stood out: “Image Librarian.” I had no idea what that meant, but I applied, and got the job.

Tanguy ·
opinion

How to Build a Cross-Border Payment Strategy

Pull up your analytics and you’ll likely find that international traffic is already on your site. Some of those visitors convert, but a lot more bounced at checkout — and a meaningful chunk tried to pay but were declined.

Jonathan Corona ·
opinion

The KPIs That Keep Payment Processing Humming While You're Away

I always look forward to the summer as my kids are home and I can plan little trips with them to reconnect and have some fun. If you’re like me, however, you probably never go on vacation without your laptop, so you can check in or lurk in the background to make sure all systems remain go.

Cathy Beardsley ·
opinion

What Utah's SB 73 Means for Compliance Requirements

Utah has once again positioned itself at the center of the national battle over online age verification and adult-content regulation.

Corey D. Silverstein ·
profile

Clips4Sale's Christy on Backing Creators and Fueling Growth

Understanding the industry from within goes beyond data. For Christy, Manager of Creator Experience at Clips4Sale, that insight is shaped by front-line conversations and years spent listening not just to trends, but to people.

Women In Adult ·
opinion

Breaking Down AI-Powered Moderation and Platform Safety

Adult platforms, including content sites, cam services and dating apps, consistently face a range of high-risk challenges. These include verifying consent, particularly for user-uploaded content, addressing nonconsensual material such as leaks and so-called revenge porn, and ensuring effective age verification and protection for minors. At the same time, platforms must manage content moderation at scale while addressing payment fraud, scams, harassment and user abuse.

Christoph Hermes ·
opinion

How to Optimize Subscription Billing for Compliance and Stability

The Federal Trade Commission’s “click to cancel” rule is coming back around. Last year, a federal appeals court vacated the FTC’s Negative Option Rule, aimed at addressing deceptive or unfair practices and making it easier for consumers to cancel online subscriptions.

Jonathan Corona ·
opinion

Key Strategies for Streamlining Payment Processing Approval

Why is it taking so long to get my account approved? It's frustrating for everyone involved, but it's all part of the process. Over the past year, timelines have stretched to 60 days or more for merchants to complete onboarding, from internal compliance review to banking partner approval and final card brand registration.

Cathy Beardsley ·
opinion

What to Know About Alabama's Regulatory Push on Adult Content

Over the past two years, Alabama has quietly but aggressively transformed itself into one of the most restrictive and unfriendly jurisdictions for the adult entertainment industry. Through the enactment of House Bill 164 and related enforcement mechanisms, the state has layered taxation, compliance burdens and content restrictions in a way that goes far beyond traditional regulation.

Corey D. Silverstein ·
Show More