Document: 505 U.S. 763 112 S.Ct. 2753 120 L.Ed.2d 615 TWO PESOS, INC., Petitionerv.TACO CABANA, INC. No. 91-971. Argued April 21, 1992. Decided June 26, Rehearing Denied Sept. 4, See , 113 S.Ct 20. Syllabus * Respondent, the operator of a chain Mexican restaurants, sued petitioner, similar chain, for trade dress infringement under § 43(a) Trademark Act 1946 (Lanham Act), which provides that "[a]ny person who . use[s] in connection with any goods or services false description representation shall be liable to damaged by [such] use." The District Court instructed jury, inter alia, respondent's was protected if it either inherently distinctive—i.e., not merely descriptive had acquired secondary meaning—i.e., come through use uniquely associated specific source. court entered judgment respondent after jury found, among other things, is distinctive but has meaning. In affirming, Appeals ruled instructions adequately stated applicable law, held evidence supported jury's findings, and rejected petitioner's argument finding no meaning contradicted inherent distinctiveness. Held: Trade protectable without showing meaning, since such itself capable identifying products as coming from This rule generally trademark, see, e.g., Restatement (Third) Unfair Competition 13, pp. 37-38, protection trademarks serves same statutory purpose preventing deception unfair competition. There textual basis applying different analysis two. Section mentions neither does contain concept concept, where appear Lanham Act, requirement applies only marks ones. Engrafting onto also would make more difficult identification producer its product thereby undermine Act's purposes securing mark's owner goodwill his business protecting consumers' ability distinguish competing producers. Moreover, could have anticompetitive effects creating burdens on start-up small business. Petitioner's suggestion businesses briefly dispensing at outset dress' rejected, there 43(a). Pp. ____. 932 F.2d 1113, affirmed. WHITE, J., delivered opinion Court, REHNQUIST, C.J., BLACKMUN, O'CONNOR, SCALIA, KENNEDY SOUTER, JJ., joined. filed concurring opinion. STEVENS, THOMAS, opinions judgment. Kimball J. Corson, Phoenix, Ariz., petitioner. Richard G. Taranto, Washington, D.C., respondent. Justice WHITE Court. 1 issue this case whether dress1 restaurant may 60 Stat. 441, 15 U.S.C. 1125(a) (1982 ed.), based distinctiveness, proof 2 Respondent Taco Cabana, Inc., operates fast-food restaurants Texas. serve food. first Cabana opened San Antonio September 1978, five been 1985. describes 3 "a festive eating atmosphere having interior dining patio areas decorated artifacts, bright colors, paintings murals. includes exterior being sealed off outside overhead garage doors. stepped building vivid color scheme using top border paint neon stripes. Bright awnings umbrellas continue theme." 1117 (CA5 1991). 4 December 1985, Two Pesos, Houston. Pesos adopted motif very foregoing Cabana's dress. expanded rapidly Houston markets, did enter Antonio. 1986, Austin markets into Texas cities, including Dallas El Paso doing 5 1987, United States Southern ed.),2 theft secrets common law. tried return verdict form answers questions propounded trial judge. were: dress; taken whole, nonfunctional; distinctive;3 meaning4 market; alleged creates likelihood confusion part ordinary customers source association restaurant's services. Because, told, awarding damages Cabana. course calculating damages, intentionally deliberately infringed dress.5 6 law findings. particular, 7 so holding, below followed precedent Fifth Circuit. Chevron Chemical Co. v. Voluntary Purchasing Groups, 659 695, 702 1981), noted trademark requires demonstration when claimed sufficiently identify producer; principles should apply dresses. approach conflicts decisions courts, particularly holding Second Circuit Vibrant Sales, Inc. New Body Boutique, 652 299 (1981), cert. denied, 455 909, 102 1257, 71 448 (1982), protects unregistered designs shown. Chevron, supra, 702. We granted certiorari resolve conflict Courts question meaning.6 502 ----, 964, 117 130 (1992). find is, we therefore affirm. II 8 Act7 intended "actionable deceptive misleading marks" "to protect persons engaged commerce against competition." 45, 1127. "prohibits broader range practices than 32," registered marks, Inwood Laboratories, Ives 456 844, 858, 2182, 2190-2191, 72 606 ground qualifying general mark registration are most determining an entitled A.J. Canfield Co., Honickman, 808 291, 299, n. 9 (CA3 1986); Thompson Medical Pfizer 753 208, 215-216 (CA2 1985). A defined 1127 "any word, name, symbol, device combination thereof" used her goods, unique product, those manufactured sold others indicate even unknown." order registered, must distinguishing applicant's others. 1052. Marks often classified categories increasing distinctiveness; following classic formulation set out Judge Friendly, they (1) generic; (2) descriptive; (3) suggestive; (4) arbitrary; (5) fanciful. Abercrombie & Fitch Hunting World, 537 1976). classification petitioner accepts it. Brief Petitioner 11-15. latter three because their intrinsic nature particular deemed protection. contrast, generic marks—those "refe[r] genus species," Park' N Fly, Dollar Park 469 189, 194, 105 658, 661, 83 582 (1985), citing Fitch, 9—are registrable trademarks. U.S., S.Ct., 661-662. 10 distinctive. When describe do source, hence cannot protected. However, acquire distinctiveness will allow them Act. otherwise "has become commerce." §§ 2(e), (f), 1052(e), (f). 196, 661-662-663. called "secondary meaning." ibid.; 851, 11, 2187; Kellogg National Biscuit 305 111, 118, 59 ,S.Ct. 109, 113, L.Ed. 73 (1938). applied actions See, University Georgia Athletic Assn. Laite, 756 1535 (CA11 1985); supra. 11 regarding clear: Competition, Comment (Tent. Draft 2, Mar. 23, 1990). Cf. It clear eligibility depends nonfunctionality. 863, 2193 (WHITE, result); see also, Brunswick Corp. Spinit Reel 832 513, 517 (CA10 1987); First Brands Fred Meyers, 809 1378, 1381 (CA9 Stormy Clime Ltd. ProGroup, 971, 974 AmBrit, Kraft, Inc.,812 1531, American Greetings Dan-Dee Imports, 807 1136, 1141 1986). course, undisputed liability confusion. Corp., 516-517; 1535; Brands, 1381; Clime, 974; Greetings, 1141. 12 determined Court's were consistent verdict. Both courts thus rather distinctive, functional. None these rulings before us case, present assume, deciding, each correct. going affirm respondent, Appeals, prior decision despite lack decision, agree resolution Appeals. persuasive reason odds suits devotes much briefing arguing issues us, address arguments relevant essential qualify 13 argues shows conclusively 9. Appeals' disposition sound: 14 "Two Pesos' argument—that contradicts market—ignores circuit. While necessarily imperfect (and prohibitively difficult) methods assessing empirical current consumer association, legal recognition acknowledges owner's legitimate proprietary interest valuable informational device, regardless substantial yet bestows additional F.2d, 1120, 7. Although makes above argument, appears concede elsewhere possible dress, eligible 10-11, 17-18; Reply 10-14. Recognizing imposes "an prospect [or] financial loss" developer fanciful arbitrary use, suggests receive limited 10. temporary subject defeasance over time failed vulnerable reasons given If available earliest functional nor product. Such mark, copying concerns equal opportunity choose own To terminate failure gain some unspecified retain fanciful, arbitrary, suggestive nature, user successful enough marketplace. valid ineligible able maintain what competitive position seek wider potential customers. 16 brings line unavailable absent concedes modified recognized. plaintiff whose features defendant allegedly copied. enjoy "presumptive association" enjoyed Id. 303, 304. court's rationale seemingly denied all kinds, words symbols design. accept making kind statement 17 considerable tension provisions verbal symbolic design "by applicant distinguished others," 428, unless disqualified. Since condition registering plainly These remain users marks. Furthermore, copier seen falsely claiming thought originating plaintiff. 18 Some years Vibrant, announced 208 1985), deciding 43(a), follow Friendly Hence, descriptive, proved be, required; however, "[s]uggestive between presumed." 216. nevertheless continued deny fact Union Mfg. Han Baek Trading 42, 48 (1985); LeSportsac, K Mart 754 71, 75 (1985). 19 quite right classifications consistently inquire required. "proposition shown [is] wrong, explained Rubin Chevron." Blau Plumbing, S.O.S. Fix-It, 781 604, 608 (CA7 Eleventh follows 805 974, 979 (1986), Ninth think superfluous Fuddruckers, Doc's B.R. Others, 826 837, 843 (1987). 20 matter treating differently But none. section mention generic, suggestive, Nor text Where statute, 1052 requiring words, symbols, devices producer's 21 Protection less trademarks, "secure consumers desirable, Congress concluded, foster competition maintenance quality benefits good reputation." 198, 663, S.Rep. 1333, 79th Cong., 2d Sess., 3-5 (1946) (citations omitted). By nondescriptive hinder improving maintaining position. 22 Suggestions Circuit's initial shape cut like persuasive. Only nonfunctional, holds legally functional, unprotectable, one number equally efficient options competitors free unduly hindered according Sicilia Di R. Biebow Cox, 732 417, 426 1984). assure stifled exhaustion 23 On hand, adding effects, companies. special difficulties business, seeks start new area then expand markets. Denying nonfunctional until established competitor, own, appropriate originator's deter originator expanding areas. 24 As above, inception critical entrants market withholding contrary goals specifically suggests, solution dispense reasonable, brief period 11-12. require business' adoption statute support comes time. III 25 required prevail claim accordingly 26 ordered. 27 concurring. 28 I write separately note my complete agreement THOMAS's explanation how language common-law derivation broad embrace Nevertheless, complementary inconsistent with) opinion, concur latter. 29 30 notes 1125(a), "does dress." Ante, interprets created federal cause action concludes essentially registered. conclusion, important recognize transformed past few decades. transformation, though departure original text, recently endorsed Congress. 31 begin 43(a).1 Moskal States, 498 111 461, 449 (1990); Cartier, 486 281, 108 1811, 1817-1818, 100 313 (1988); Turkette, 452 576, 580, 101 2524, 2527, 69 246 (1981). 43(a)2 remedy designation origin" "false representation" full word "origin" refers geographic location originated, fact, phrase understood advertising origin. For example, contained unlawful represent California oranges came Florida, vice versa.3 32 enactment representation," origin," construed narrowly. encompassed two kinds wrongs: advertising4 tort "passing off."5 False meant representing possessed characteristics actually passing one's another. Neither meaning" "inherent distinctiveness" anything advertising, element passing-off action. C. Merriam Saalfield, 198 F. 369, 372 (CA6 1912) ("The ultimate offense always passed complainant"). 33 Over time, Circuits representation." One treatise6 identified Sixth broaden include "origin manufacture" addition origin.7 Another early described cases "forward-looking,"8 interpreted mean mere "palming off." L'Aiglon Apparel, Lana Lobell, 214 649 1954). explained: "We nothing legislative history justify view [§ ] declarative existing seems civil wrong class suitors injured likely relief courts." Id., 651. Clark, writing concurrence 1956, presciently observed: "Indeed, indication here bar realized impact provision ]." Maternally Yours, Your Maternity Shop, 234 538, 546(CA2). criticized expansion unwise,9 now firmly embedded reality."10 Association Review Commission transformation approval: "Section enigma, popular one. Narrowly drawn reach designations representations geographical origin products, widely create, essence, definitely eliminated gap vitality signs age."11 34 Today, significant falls representation"12 invoked. claims. Gilson, Practice 2.13, p. 2-178 (1991). They test confusion: "[U]nder ], public deceived confused similarity Whether call violation infringement, origin, identical—is 'likelihood confusion?' " West NYM California, 595 1194, 1201 1979) (footnote And agreement,13 perhaps exception Circuit,14 need once establish 35 Even lower courts' unsupported am persuaded Congressman Lanham, bill's sponsor, stated: "The [the Act] country."15 92 Cong.Rec. 7524 (1946). way accomplishing dual uniform rights remedies national economy. "entirely State matter," result piecemeal almost "as many varieties States" person's "in differ [that person] enjoys another." H.R.Rep. 944, 76th 1st (1939). House Committee Trademarks Patents, recognizing "trade longer local, .national," saw "national legislation along lines [to] secur[e] owners interstate definite rights." Ibid.16 36 revisited accepted "judicial legislation" Recently, Law Revision 1988, Pub.L. 100-667, 3935, codified judicial interpretation giving imprimatur growing body beyond language. 37 addressed steps subsequent suggest established.17 First, broadened explicit prohibits term, "likely confusion, mistake, deceive affiliation, connection, another person, sponsorship, approval services, commercial activities person." 1125(a). That confusingly actionable necessary reference "falsity." Second, approved confirmed extensive development provision, application apply.18 Third, 1988 amendments reaffirms Congress' both Act.19 fourth, explicitly extended basic remedial previously covered trademarks.20 aim protections already afforded 100-515, 40 (1988). buttress conclusion properly provide accordance standards 2. aspects bolster IV 38 light consensus question, codify consensus, stare decisis persuade me join established. Accordingly, judgment, 39 STEVENS decide today well terms "common ground," fails explain why might so, decides textually insupportable, worthy nonetheless adherence. ante, ____ (opinion Court); (STEVENS, judgment). answering presented move back forth sections adopt misconstruction akin decisis. rely, instead, 41 made (before amended) representation, tending represent," "use[d] services." ed.). codified, related torts technical off, 861, 2192, (1982) 701 457 1126, 2947, 1342 causes descriptions concerning good's service's production. Yale Electric Robertson, 972, 973 1928); Washboard Saginaw 103 284-286 1900). 42 At (called "inherently distinctive" "trademarks") presumed sue show symbol represented product's fact. Heublein Adams, 125 782, 784 (CC Mass.1903). presumption attach personal names names"), name obtain he showed just (that service developed meaning"). Florence J.C. Dowd 178 73, 74-75 1910). consists packaging (or "image," broadly), incapable ever theory ways package finite. Thus, Crescent Tool Kilborn Bishop 247 300-301 1917); Flagg Holway, Mass. 83, 91, N.E. 667 (1901); Philadelphia Novelty Rouss, 585, 587 SDNY 1889); Hopkins, Trademarks, Tradenames 54, 140-141 (3d ed. W. Browne, Trade-Marks 89b, 89c, 106-110 (2d 1885); 16, b 1990) (hereinafter Third Restatement). 43 judges conclude packages images numbers human imagination. 812 1536 1986) ("square size, coloring, pebbled texture, polar bear sunburst images" "Klondike" ice cream distinctive), 481 1041, 107 1983, 95 822 (1987); 16. then, considered fully serving "representation designation" result, package, represents him follows, view, regard rules deal registration. 44 Because reaches reasons, syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 50 499 (1906). jury: '[T]rade total image appearance restaurant, sign, kitchen floor plan, decor, menu, equipment food, servers' uniforms reflecting restaurant." App. 83-84. definition quoted Blue Bell Bio-Medical Cin-Bad, 864 1253, 1256 1989): 'trade overall appearance." 1118 "involves shape, combinations, graphics, sales techniques." John H. Harland Clarke Checks, 711 966, 980 1983). (Tent.Draft provides: "Any affix, apply, annex, container containers same, commerce, knowledge falsity procure transported deliver carrier used, locality indicated region said situated, believes 441. superseded 132 3946, 1121. found descriptive. Secondary source." e "To manufacturer that, minds public, primary significance feature term itself." 2187, (1982). agreed: weight persuades Singleton, brazenly copied proceeded manner foreclosed several within natural zone expansion." 1127, our grant conflict. second petition, challenged acceptance here, substantially amended suit brought. consider amendments; replaced coverage 1920, Ch. 104, 534, amended. destined oblivion largely referred articles merchandise, excluding occurred "willfully intent deceive." Ibid. "[a]lmost reported can foreign party newly remedy." Derenberg, Federal End Decade Act: Prologue Epilogue?, N.Y.U.L.Rev. 1029, 1034 (1957). 1, deleterious commentator follows: "[A] campaign completely discredit industry, destroy confidence impair communal will. Less tangible real injury suffered honest dealer finds meet price inferior glamorously misdescribed unscrupulous merchant. liar dangerous exact susceptible precise proof." Handler, Iowa L.Rev. 175, 193 (1936). "Beginning about 1803, English slowly offshoot fraud deceit 'passing off' 'palming off.' Simply stated, 1842 Lord Langdale wrote: 'I principle equity proceed understood. man sell pretense man. .' "In 19th century cases, embodied elements developed. fraudulent emphasized objective facts confusion." McCarthy, 5.2, 133 1984) (McCarthy) (footnotes id., 27:3, 345. Federal-Mogul-Bower Bearings, Azoff, 405, 408 1963). N.Y.U.L.Rev., 1047, 1049. Germain, Practices Under You've Come Long Way Baby—Too Far, Maybe?, 64 Rep. 193, 194 (1974) ("It submitted situations cover designed function"). McCarthy Report Recommendations USTA President Board Directors, 77 375, Indeed, count complaint, "is continuing o[f] same," designated same. ." 44-45; Tr. Oral Arg. 37. 1986), 604 re Morton-Norwich Products, 671 1332, 1343 (C.C.P.A.1982); 695 (1982); 843-844 M. Kramer Manufacturing Andrews, 783 421, 449, (CA4 Consistent background traded plaintiff's (1917). knowledge, substitute case. Most involve findings issue—a velcro belt —was lacked non-functional feature." 305. Similarly, 977 (1987), functionality continuum, placed contested rainjacket closer end end. lightweight bag concluded nonfunctionality clearly erroneous, 74, Senate elaborated goals: underlying trade-mark twofold. confident purchasing bearing favorably knows, get asks wants get. Secondly, spent energy, money presenting investment misappropriation pirates cheats. well-established owner." hoped deceit, fair competition, secure community advantages reputation diversion not. bill directed." 4. Forty later, assessed state reached testimonial success achieving goal uniformity: decide, disputes. influential ever. Today paramount exclusively Commission, Rep., 377. "When acts touching subject-matter, assist upon subject." Tiger Western Investment 221 286, 309, 578, 583-584, 55 738 (1911); NLRB Aerospace 416 267, 275, 94 1757, 1762, 134 (1974); Red Lion Broadcasting FCC, 395 367, 380-381, 89 1794, 1801-1802, 371 (1969); Stafoff, 260 477, 480, 197, 199, 67 358 (1923) Holmes, J.). explained, revision courts. fills committee expects interpret section. "As written, 1946, creating, involving violations certain configurations claims." (1988) U.S.Code Cong. Admin.News 5577, 5605. "Trademark brands prefer purchase misled. laws protec[t] owners. conside[r]able bringing marketplace, counterfeiters." 1114, 1116-1118.

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