Many entrepreneurs looking to start up a business are often curious about the differences between filing as a corporation or as a limited liability company (LLC). The differences between the two vary from state to state. In California, an LLC operates as a sort of hybrid of a corporation and a partnership. It provides its owners – commonly referred to as “members” – with limited liability to identical to that enjoyed by corporate shareholders. There are several differences between corporations and LLCs, including formalities and certain tax variances, but for the most part, the entities are almost identical from the…
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Archives: Trademarks
Apple’s MULTI-TOUCH and the Descriptive Trademark Issue
October 12, 2011
Apple is known, among other things, for its impressive set of trademarks, and its vigorous defense of those marks. But even Apple doesn’t win every time. The company recently attempted to register the term MULTI-TOUCH as a trademark. The United States Patent and Trademark Office rejected the application on the grounds that it was “merely descriptive” of the product and not distinctive enough for people to immediately associate the phrase “multi-touch” with Apple’s products. Descriptiveness is a common issue in trademark law. A descriptive term, a term that is used to describe the functions, characteristics, size, or components of a…
Unzipping California’s Zip Code Restriction
September 28, 2011
When Can California Businesses Request a Customer’s Zip Code? In February, the California Supreme Court held that businesses are no longer allowed to request zip codes from customers. In Pineda v. Williams-Sonoma, Inc., the court held that a zip code is “personal identification information” under the 1971 Song Beverly Credit Card Act (California Civil Code § 1747.08). Under the Act, a business may not request or require the cardholder to give any personal identification information during a credit card transaction. The Act includes addresses and phone numbers under personal identification information, and the California Supreme Court held that zip codes…
A Case of Rum
September 22, 2011
A few months ago I discussed the potential legal implications of Anheuser Busch’s application to protect the 619 area code as a trademark for beer. Geographic trademarks appear to be increasingly attractive to marketers, as consumers tend to react positively to goods that purport to come from certain locations – think of Wisconsin for cheese. While it remains to see how the 619 trademark application will unfold, a recent case provides insight into using location as a marketing tool. Recently, rum giant Bacardi obtained a favorable ruling (link leads to the court opinion) in their legal dispute with Pernod (a…
