Trade dress protection is generally limited to non-functional features. Trade dress rights cannot be used to keep somebody from competing effectively by tying up the functional features of products. The most important thing about trademarks in the United States is that they identify to consumers the source or sponsor of the goods. For example most American consumers recognize that every bottle of Pepsi Cola is sponsored by a single source. Although there are many Pepsi Cola bottling plants around the country, Americans recognize that all of them are authorized or licensed by Pepsi Cola, Inc. to use the mark.
Trademarks are protectable to the first user of the mark.
Although trademarks may be registered at the state or federal level, registration is not necessary to obtain rights in the United States. However, as detailed below, registration of a mark is extremely valuable in protecting rights. The importance of trademarks in the United States economy cannot be overstated. For many organizations, a trademark is its most valuable asset. The trademarks represent to U.S. consumers quality products with a dependable and reliable company standing behind the products.