Question

Learning Objective (8-7) What are the similarities and differences among the methods for protecting various types of intellectual property? 2. The plaintiff, Lone Star Steakhouse, operates over 30 Lone Star Steakhouse & Sa loon restaurants in the U.S. The trademarks "Lone Star Cafe" and "Lone Star Steak house & Saloon" are owned by Lone Star Steakhouse. Clothing and accessories with the logo are sold in restaurants. In 1991 the defendant, Alpha, opened a restaurant named "Lone Star Grill" in Arlington, Virginia. Alpha conducted extensive advertising in the Virginia and Washington, C.C., area. The advertisements featured coupons with the words Lone Star and a five point star similar to the one used by Lone Star Steak house. Lone Star Steakhouse operates four restaurants in Virginia and one restaurant in Washington, D.C. It testified that on several occasions customers presented coupons for Lone Star Grill. To prevent customer dissatisfaction, Lone Star Steakhouse would give customers free drinks, coupons, or meal discounts. Lone Star Steakhouse & Saloon brought a trademark infringement action against Lone Star Grill. Answer the following questions related to this case. Fully explain your answers. a. In whose favor do you think the court decided and why? b. Identify at least two (2) elements that helped form the basis for your decision.

Answer 1

1. The court is likely to decide in favor of the plaintiff lone star steakhouse. The lone star steak house owns the trademark "lone star cafe" and lone star steak house & saloon". Alpha, the defendant recently opened a restaurant in Virginia where lone star steak house operates its restaurant. The Alpha restaurant named it "lone star grill". It is said that customers get confused regarding both the names and lone star steak house reported cases of loss of reputation. While assessing the trademark infringement using the "likelihood of confusion" test, it will be evident. A new trademark will be an infringing on the existing one if the new one is very similar to the original that it makes consumers to confuse between the two and mistakenly purchase from the wrong  one. it is given that customers present lone star grill coupons to lone star cafes and lone star steak house & saloon. So it can be concluded that court will be deciding in favor of lone star steak houses.

2. The two firms are operating the in the same line of business. Both of them are operating restaurants in various parts of USA. Lone star steak houses owns the trademark "lone star cafe" and "lone star steakhouse & saloon". While applying the likelihood of confusion test it is clear that the trademarks of both firms hold similarities. The strength of the trademark, the proximity of goods, the similarity of the marks, evidence of actual confusion, similarity of marketing channels used, the defendants intent etc will be analysed. After examining all these factors the court can be clear to case of trademark infringement. The Alpha who started recently their restaurant in Virginia where lone star steak house already operates ones shows the intention of Alpha to acquire the customers using the name of lone star steak house. The use of identical mark on the same product would clearly constitute infringement.