DLE Network

WHAT IS A "COMMON LAW" TRADEMARK?

The term “common law” indicates that the trademark rights that are developed through use are not governed by statute. Instead, common law trademark rights have been developed under a judicially created scheme of rights governed by state law. Common law rights may be afforded to any word, phrase, image, etc. that a business uses in commerce to identify itself, its goods, or its services. To declare your ownership of a common law trademark, you should add a superscript “TM” to it. Such rights are granted automatically upon use and extended to whoever can prove the first actual use of the mark in a given geographical area (e.g., within a specific state or region).

An owner may establish rights in a mark without registering the mark, simply by using it in connection with a business or product. These common law rights provide an owner with the exclusive right to use a mark within a certain geographic area based on their priority use of the mark. When a trademark owner is the first to use a mark, they are referred to as the “senior user.” Anyone who starts using a confusingly similar mark thereafter is called the “junior user.” A senior user of a common law trademark can sue a junior user if the junior user is operating in the same geographic area and using the mark in connection with the same or related goods and/or services.

How are DLE’s Trademark’s Protected?

The trademarked designations that serve as surrogate identities at the core of DLE’s real estate agent branding platform, are all held by Mr. Cali, LLC which is an affilicate of DLE.  DLE licenses the trademarked brand names from Mr. Cali, and sublicenses them to DLE’s clients for their use. The brand names in the Designation Directory have been consistently used in commerce by Mr. Cali in the geographic areas aligned with the brand names. Hence, these trademarks are widely known in those communities.

Although the common law trademarks are effective in providing exclusivity in the relevant geographic locale, DLE goes a step further by also registering its trademarks with the relevant state authority after they’ve been sublicensed for use by a DLE member. This is an extra layer of protection that also increases the visibility of the trademark which makes it less likely to be infringed upon.

DLE commits in it’s sublicensing agreements to defend the exclusivity promised by a trademark, regardless of its basis.  Any infringement by a junior user will be met with protective actions.