II.    Trademarks (Cont'd)

        P.    Contributory infringement

        Q.    Defenses to trademark infringement

                1.    Prior useb by D

                2.    No likelihood of confusion, mistake or deception

                3.    Unprotectable mark

                4.    Fraudulent registration

                5.    Incontestability

                6.    Fair use and parody  -- See Rock and Roll Hall of Fame and Museum, Inc. v. Gentile, 134 FR.3d 749 (6th Cir. 1998)

                7.    Unclean hands

                8.    Laches, acquiescence, estoppel

                9.    Lack of competition between the parties

                10.  Antitrust violation

                11.    Amount of use by D

                12.    Abandonment

                          a.    HYPO:

                                 X uses CUTSY on animal shaped coffee mugs
                                 X ceases use for 18 months
                                 Y begins to use during hiatus

                        b.    Factors to judge whether abandonment occurred

                                1.    Non-use,

                                2.    Intent to abandon, an d

                                3.    Motive

                      c.    HYPO:

                            Z has been using same mark for 5 years

                            X ceases use for 3 1/2 years

                    d.    Section 45(a) presumption of abandonment = 3 years consecutive nonuse

                    e.    HYPO:

                            X starts using mark on plates, bowls and ceases using it on mugs

                            Goods stay the same but the mark is altered

        R.  Transfers of trademarks

                1.    Assignments transfer ownership

                        a.    Must be in writing

                        b.    Assignee mut continue to produce goods/services previously produced under mark

                        c.    Must transfer goodwill with the mark (no transfers in gross)

                        d.    Sugar Busters v. Brennan, 58 P.T.C.J. 144 (5th Cir. 1999)

                2.    Licensing

                        a.    Does not transfer ownership

                        b.    HYPO:

                                X owns service mark COFFEE BAR
                                X licenses Y to produce T-shirts with the mark on them

                        c.    Mark does not always indicate physical source but also may indicate quality

                                1.    Control is the issue

                                2.    Andy Warhol's Campbell's Soup Can

                        d.    Abandonment through loss of distinctiveness

                        e.    Franchising

                                1.    Manufacturing franchises

                                2.    Distribution franchises

                                3.    Licensing or business format franchises

        S.    Resources

                1.    McCarthy on Trademarks and Unfair Competition, 3d ed. 1992 (5 vols, looseleaf)

                2.    Callman (mentioned in unfair competition)