California Assembly Bill AB1281

California 2023-2024 Regular Session

• Introduced: 2/16/23
• Failed: 2/1/24

Caption

Business rights: trademarks: violations.

Impact

Under the proposed amendments, a person who uses, reproduces, or imitates a registered trademark without authorization may face civil actions initiated by the trademark's registered owner. The bill specifies that an individual acts knowingly when previously notified of their infringing actions via formal communication, providing a clear mechanism for trademark owners to address potential violations effectively. This legislative effort aims to foster a fair business environment by providing robust protection for trademark owners whilst defining the parameters of what constitutes an infringement.

Summary

Assembly Bill 1281, introduced by Assembly Member Essayli, seeks to amend Section 14245 of the Business and Professions Code in California. The bill primarily aims to update and clarify provisions related to trademark violations as defined under the Model State Trademark Law. This legislation outlines scenarios in which individuals may be held accountable for using trademarks without consent, particularly emphasizing incidences that could mislead consumers about the source of goods or services. It seeks to establish a more structured approach towards enforcing trademark laws in the state.

Contention

Key points of contention surrounding AB 1281 include the definition of an 'innocent infringer' and limitations on remedies available to the trademark owner. For instance, if a violation is part of paid advertising, the remedies for publishers would be restricted primarily to injunctions against future presentations of the infringing content, potentially diminishing the litigation power of trademark owners. Supporters of the bill argue that these amendments are necessary to streamline enforcement and protect businesses, while critics may view the limitations on remedies as undermining the registered owners' rights and a potential loophole for violators.