Abandonment of Trademarks

In the world of trademarks, the common saying is ''Use it or lose it,'' referring to the fact that trademark rights can be lost or abandoned through nonuse. In fact, nonuse of a mark for three years creates a presumption that a mark has been abandoned. Although the owner can rebut this presumption, usually clear and convincing evidence is required to show that one has not abandoned a mark. Abandonment can occur even earlier than three years if an intent to abandon is shown. For example, if a company announces publicly that it is changing the name of its financial reporting software from REPORT RIGHT to MONEY TRACK, a court may well hold that the owner showed a clear intent to abandon REPORT RIGHT, thus making the mark ...

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