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Keywords

defendantappealsummary judgmentwilltrademarkgood faith
summary judgmentwillcopyrightpatenttrademarkcorporationgood faith

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International Stamp Art, Inc. v. U.S. Postal Service, 456 F.3d 1270, 79 U.S.P.Q.2d 1513, 19 Fla. L. Weekly Fed. C 808

Facts

International Stamp Art, Inc. (ISA), a greeting card manufacturer, brought a trademark infringement action against the United States Postal Service (Postal Service) regarding ISA's perforated border trademark. The Postal Service used images of its stamps, including the perforated border, on greeting cards. The district court granted summary judgment in favor of the Postal Service, ruling that its use constituted fair use. ISA appealed, challenging the finding of good faith in the Postal Service's use of the trademark.

ISA, a for-profit corporation engaged in the production of note cards, greetings cards, posters, and prints, was founded in 1985. For most of these products, ISA has used a perforated border design that evokes the functional flat-edged perforation of an older postage stamp. In October 1994, ISA filed an application with the United States Patent and Trademark office seeking to register the perforated border design as a trademark and, in 1996, was granted U.S. Registration No. 1,985,086 for that mark for use on printed note cards and greeting cards.

Issue

Did the Postal Service's use of ISA's perforated border trademark on greeting cards constitute trademark infringement or was it protected under the fair-use defense?

Did the Postal Service's use of ISA's perforated border trademark on greeting cards constitute trademark infringement or was it protected under the fair-use defense?

Rule

The fair-use defense in trademark law requires that the defendant's use of the mark is (1) other than as a mark, (2) in a descriptive sense, and (3) in good faith. The standard for good faith in this context is whether the alleged infringer intended to benefit from the goodwill associated with the trademark owner, creating confusion as to the source of the goods.

Analysis

The court analyzed whether the Postal Service's use of the perforated border was in good faith. It found that the Postal Service's use was descriptive and did not intend to create confusion regarding the source of the greeting cards. The evidence indicated that the Postal Service prominently displayed its own trademark on the products and had a long history of using perforated edges on stamps. ISA failed to provide evidence that the Postal Service intended to mislead consumers.

Applying this standard here, we observe that the record indicates that the image both copyrighted and licensed by the Postal Service with respect to each stamp includes a perforated edge when the original stamp was produced with perforated edges. The record shows that the overwhelming majority of stamps the Postal Service produces include perforated edges and have long done so. The Postal Service has also provided affirmative evidence of good faith in showing that it prominently places its own familiar Eagle trademark on the backs of its stamp art products thereby identifying them as Postal Service products rather than the products of anyone else in the marketplace.

Conclusion

The court affirmed the district court's ruling, concluding that the Postal Service's use of the perforated border was in good faith and constituted fair use, thus not infringing ISA's trademark.

Because we see no evidence in the record to support the allegation that the Postal Service, in producing cards depicting images of its stamps, intended to benefit from the good will associated with ISA's perforated border trademark, we AFFIRM the district court's grant of summary judgment in favor of the Postal Service on the basis of its fair-use defense.

Who won?

The United States Postal Service prevailed in this case because the court found that its use of the perforated border was protected under the fair-use defense. The court determined that the Postal Service did not use the mark as a trademark but rather descriptively, and there was no intent to confuse consumers regarding the source of the greeting cards. The Postal Service's longstanding practice of using perforated edges on stamps and its clear identification of products with its own trademark supported the conclusion of good faith.

The Postal Service prevailed in this case because the court found that its use of the perforated border was in good faith and constituted fair use. The court noted that there was no evidence that the Postal Service intended to mislead consumers or benefit from ISA's goodwill, and it emphasized the Postal Service's clear identification of its products with its own trademark.

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