Source: http://supreme.justia.com/cases/federal/us/483/522/case.html
Timestamp: 2014-04-24 20:38:45
Document Index: 23719118

Matched Legal Cases: ['§ 110', '§ 110', '§ 110', '§ 110', '§ 371', '§ 380', '§ 1051', '§ 380', '§ 110', '§ 1115', '§ 34', '§ 1116', '§ 110', '§ 110', '§ 110', '§ 110', '§ 2', '§ 1052', '§ 110', '§ 380', '§ 110', '§ 110', '§ 2', '§ 110', '§ 110', '§ 1101', '§ 371', '§ 380']

S.F. Arts & Athletics, Inc. v. USOC - 483 U.S. 522 (1987) :: Justia US Supreme Court Center
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S.F. Arts & Athletics, Inc. v. USOC - 483 U.S. 522 (1987)
Case	U.S. Supreme CourtS.F. Arts & Athletics, Inc. v. USOC, 483 U.S. 522 (1987)San Francisco Arts & Athletics, Inc. v.United States Olympic CommitteeNo. 86-270Argued March 24, 1987Decided June 25, 1987483 U.S. 522CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
1. There is no merit to the SFAA's contention that § 110 grants the USOC nothing more than a trademark in the word "Olympic," and precludes its use by others only when it tends to cause confusion. Nor is there any merit to the argument that § 110's reference to Lanham Act remedies should be read as incorporating traditional defenses as well. Section 110's language and legislative history indicate that Congress intended to grant the USOC exclusive use of the word "Olympic" without regard to whether use of the word tends to cause confusion, and that § 110 does not incorporate defenses available under the Lanham Act. Pp. 483 U. S. 528-530 Page 483 U. S. 523
4. The SFAA's claim that the USOC has enforced its § 110 rights in a discriminatory manner in violation of the Fifth Amendment fails, because the USOC is not a governmental actor to whom the Fifth Amendment applies. The fact that Congress granted it a corporate charter does not render the USOC a Government agent. Moreover, Congress' intent to help the USOC obtain funding does not change the analysis. Nor does the USOC perform functions that are traditionally the exclusive Page 483 U. S. 524 prerogative of the Federal Government. The USOC's choice of how to enforce its exclusive right to use the word "Olympic" simply is not a governmental decision. Pp. 483 U. S. 542-547.
In this case, we consider the scope and constitutionality of a provision of the Amateur Sports Act of 1978, 36 U.S.C. §§ 371-396, that authorizes the United States Olympic Committee to prohibit certain commercial and promotional uses of the word "Olympic." Page 483 U. S. 525
Petitioner San Francisco Arts & Athletics, Inc. (SFAA), is a nonprofit California corporation. [Footnote 1] The SFAA originally sought to incorporate under the name "Golden Gate Olympic Association," but was told by the California Department of Corporations that the word "Olympic" could not appear in a corporate title. App. 95. After its incorporation in 1981, the SFAA nevertheless began to promote the "Gay Olympic Games," using those words on its letterheads and mailings and in local newspapers. Ibid. The games were to be a 9-day event to begin in August, 1982, in San Francisco, California. The SFAA expected athletes from hundreds of cities in this country and from cities all over the world. Id. at 402. The Games were to open with a ceremony "which will rival the traditional Olympic Games." Id. at 354. See id. at 402, 406, 425. A relay of over 2,000 runners would carry a torch from New York City across the country to Kezar Stadium in San Francisco. Id. at 98, 355, 357, 432. The final runner would enter the stadium with the "Gay Olympic Torch" and light the "Gay Olympic Flame." Id. at 357. The ceremony would continue with the athletes marching in uniform into the stadium behind their respective city flags. Id. at 354, 357, 402, 404, 414. Competition was to occur in 18 different contests, with the winners receiving gold, silver, and bronze medals. Id. at 354-355, 359, 407, 410. To cover the cost of the planned Games, the SFAA sold T-shirts, buttons, bumper stickers, and other merchandise bearing the title "Gay Olympic Games." Id. at 67, 94, 107, 113-114, 167, 360, 362, 427-428. [Footnote 2] Page 483 U. S. 526
Section 110 of the Amateur Sports Act (Act), 92 Stat. 3048, 36 U.S.C. § 380, grants respondent United States Olympic Committee (USOC) [Footnote 3] the right to prohibit certain commercial and promotional uses of the word "Olympic" and various Olympic symbols. [Footnote 4] In late December, 1981, the executive Page 483 U. S. 527 director of the USOC wrote to the SFAA, informing it of the existence of the Amateur Sports Act, and requesting that the SFAA immediately terminate use of the word "Olympic" in its description of the planned Games. The SFAA at first agreed to substitute the word "Athletic" for the word "Olympic," but, one month later, resumed use of the term. The USOC became aware that the SFAA was still advertising its Games as "Olympic" through a newspaper article in May, 1982. In August, the USOC brought suit in the Federal District Court for the Northern District of California to enjoin the SFAA's use of the word "Olympic." The District Court granted a temporary restraining order and then a preliminary injunction. The Court of Appeals for the Ninth Circuit affirmed. After further proceedings, the District Court granted the USOC summary judgment and a permanent injunction.
The Court of Appeals affirmed the judgment of the District Court. 781 F.2d 733 (1986). It found that the Act granted the USOC exclusive use of the word "Olympic" without requiring the USOC to prove that the unauthorized use was confusing and without regard to the defenses available to an entity sued for a trademark violation under the Lanham Act, 60 Stat. 427, as amended, 15 U.S.C. § 1051 et seq. It did not reach the SFAA's contention that the USOC enforced its rights in a discriminatory manner, because the court found that the USOC is not a state actor bound by the constraints of the Constitution. The court also found that the USOC's "property righ[t] [in the word 'Olympic' and its associated Page 483 U. S. 528 symbols and slogans] can be protected without violating the First Amendment." 781 F.2d at 737. The court denied the SFAA's petition for rehearing en banc. Three judges dissented, finding that the panel's interpretation of the Act raised serious First Amendment issues. 789 F.2d 1319, 1326 (1986).
"* * * *" "(4) the words 'Olympic,' 'Olympiad,' 'Citius Altius Fortius,' or any combination or simulation thereof tending to cause confusion, to cause mistake, to deceive, or to falsely suggest a connection with the [USOC] or any Olympic activity;"
36 U.S.C. § 380(a). The SFAA argues that the clause "tending to cause confusion" is properly read to apply to the word "Olympic." But Page 483 U. S. 529 because there is no comma after "thereof," the more natural reading of the section is that "tending to cause confusion" modifies only "any combination or simulation thereof." Nevertheless, we do not regard this language as conclusive. We therefore examine the legislative history of this section.
"Section 110(a)(4) makes actionable not only use of the words 'Olympic.' 'Olympiad,' 'Citius Altius Fortius,' and any combination thereof, but also any simulation or confusingly similar derivation thereof tending to cause confusion, to cause mistake, to deceive, or to falsely Page 483 U. S. 530 suggest a connection with the [USOC] or any Olympic activity. . . ."
The SFAA further argues that the reference in § 110 to Lanham Act remedies should be read as incorporating the traditional trademark defenses as well. See 15 U.S.C. § 1115(b). [Footnote 5] This argument ignores the clear language of the section. Also, this shorthand reference to remedies replaced an earlier draft's specific list of remedies typically available for trademark infringement, e.g., injunctive relief, recovery of profits, damages, costs, and attorney's fees. See Lanham Act §§ 34, 35, 15 U.S.C. §§ 1116, 1117. This list contained no reference to trademark defenses. 124 Cong.Rec. 12865, 12866 (1978) (proposed § 110(c)). Moreover, the USOC already held a trademark in the word "Olympic." App. 378-382. Under the SFAA's interpretation, the Act would be largely superfluous. In sum, the language and legislative history of § 110 indicate clearly that Congress intended to grant the USOC exclusive use of the word "Olympic" without regard to whether use of the word tends to cause confusion, and that § 110 does not incorporate defenses available under the Lanham Act. Page 483 U. S. 531
The protection granted to the USOC's use of the Olympic words and symbols differs from the normal trademark protection in two respects: the USOC need not prove that a contested use is likely to cause confusion, and an unauthorized user of the word does not have available the normal statutory defenses. [Footnote 6] The SFAA argues, in effect, that the differences between the Lanham Act and § 110 are of constitutional dimension. First, the SFAA contends that the word "Olympic" is a generic [Footnote 7] word that could not gain trademark protection under the Lanham Act. The SFAA argues that this Page 483 U. S. 532 prohibition is constitutionally required, and thus that the First Amendment prohibits Congress from granting a trademark in the word "Olympic." Second, the SFAA argues that the First Amendment prohibits Congress from granting exclusive use of a word absent a requirement that the authorized user prove that an unauthorized use is likely to cause confusion. We address these contentions in turn.
There is no need in this case to decide whether Congress ever could grant a private entity exclusive use of a generic word. Congress reasonably could conclude that the commercial Page 483 U. S. 533 and promotional value of the word "Olympic" was the product of the USOC's "own talents and energy, the end result of much time, effort, and expense." Zacchini v. Scripps-Howard Broadcasting Co., 433 U. S. 562, 433 U. S. 575 (1977). The USOC, together with respondent International Olympic Committee (IOC), have used the word "Olympic" at least since 1896, when the modern Olympic Games began. App. 348. Baron Pierre de Coubertin of France, acting pursuant to a government commission, then proposed the revival of the ancient Olympic Games to promote international understanding. D. Chester, The Olympic Games Handbook 13 (1975). De Coubertin sought to identify the "spirit" of the ancient Olympic Games that had been corrupted by the influence of money and politics. See M. Finley & H. Pleket, The Olympic Games: The First Thousand Years 4 (1976). [Footnote 9] De Coubertin thus formed the IOC, that has established elaborate rules and procedures for the conduct of the modern Olympics. See Olympic Charter, Rules 26-69 (1985). In addition, these rules direct every national committee to protect the use of the Olympic flag, symbol, flame, and motto from unauthorized use. Id. Bye-laws to Rules 6 and 53. [Footnote 10] Under the IOC Page 483 U. S. 534 Charter, the USOC is the national olympic committee for the United States, with the sole authority to represent the United States at the Olympic Games. [Footnote 11] Pursuant to this authority, the USOC has used the Olympic words and symbols extensively in this country to fulfill its object under the Olympic Charter of "ensur[ing] the development and safeguarding of the Olympic Movement and sport." Id., Rule 24.
The history of the origins and associations of the word "Olympic" demonstrates the meritlessness of the SFAA's contention that Congress simply plucked a generic word out of the English vocabulary and granted its exclusive use to the USOC. Congress reasonably could find that, since 1896, the word "Olympic" has acquired what in trademark law is known as a secondary meaning -- it "has become distinctive of [the USOC's] goods in commerce." Lanham Act, § 2(f), 15 U.S.C. § 1052(f). See Park 'N Fly, Inc. v. Dollar Park and Fly, Inc., 469 U.S. at 469 U. S. 194. The right to adopt and use such a word "to distinguish the goods or property [of] the person whose mark it is, to the exclusion of use by all other persons, has been long recognized." Trade-Mark Cases, supra, at 100 U. S. 92. Because Congress reasonably could conclude that the USOC has distinguished the word "Olympic" through its own efforts, Congress' decision to grant the USOC a limited property right in the word "Olympic" falls Page 483 U. S. 535 within the scope of trademark law protections, and thus certainly within constitutional bounds.
Congress also acted reasonably when it concluded that the USOC should not be required to prove that an unauthorized use of the word "Olympic" is likely to confuse the public. [Footnote 12] To the extent that § 110 applies to uses "for the purpose of trade [or] to induce the sale of any goods or services," 36 U.S.C. § 380(a), its application is to commercial speech. Commercial speech "receives a limited form of First Amendment protection." Posadas de Puerto Rico Assoc. v. Tourism Company of Puerto Rico, 478 U. S. 328, 478 U. S. 340 (1986); Central Hudson Gas & Electric Corp. v. Public Service Comm'n of New York, 447 U. S. 557, 447 U. S. 562-563 (1980). Section 110 also allows the USOC to prohibit the use of "Olympic" for promotion of theatrical and athletic events. Although many of these promotional uses will be commercial speech, some uses may go beyond the "strictly business" context. See Friedman v. Rogers, 440 U. S. 1, 440 U. S. 11 (1979). In this case, the SFAA claims that its use of the word "Olympic" was intended to convey a political statement about the status of homosexuals in society. [Footnote 13] Thus, the SFAA claims that, in this case, § 110 suppresses political speech. Page 483 U. S. 536
By prohibiting the use of one word for particular purposes, neither Congress nor the USOC has prohibited the SFAA from conveying its message. The SFAA held its athletic event in its planned format under the names "Gay Games I" and "Gay Games II" in 1982 and 1986, respectively. See n 2, supra. Nor is it clear that § 110 restricts purely expressive uses of the word "Olympic." [Footnote 14] Section 110 restricts only the manner in which the SFAA may convey its message. The restrictions on expressive speech properly are characterized as incidental to the primary congressional purpose of encouraging and rewarding the USOC's activities. [Footnote 15] The appropriate Page 483 U. S. 537 inquiry is thus whether the incidental restrictions on First Amendment freedoms are greater than necessary to further a substantial governmental interest. United States v. O'Brien, 391 U. S. 367, 391 U. S. 377 (1968). [Footnote 16]
One reason for Congress to grant the USOC exclusive control of the word "Olympic," as with other trademarks, is to ensure that the USOC receives the benefit of its own efforts, so that the USOC will have an incentive to continue to produce a "quality product" that, in turn, benefits the public. See 1 J. McCarthy, Trademarks and Unfair Competition § 2-1, pp. 44-47 (1984). But in the special circumstance of the USOC, Congress has a broader public interest in promoting, through the activities of the USOC, the participation of amateur athletes from the United States in "the great four-yearly sport festival, the Olympic Games." Olympic Charter, Rule 1 (1985). The USOC's goal under the Olympic Charter, Rule 24(B), is to further the Olympic movement, that has as its aims: "to promote the development of those physical and moral qualities which are the basis of sport"; "to educate young people through sport in a spirit of better understanding between each other and of friendship, thereby helping to build a better and more peaceful world"; and "to spread the Olympic principles throughout the world, thereby creating international goodwill." Id., Rule 1. See also id., Rule 11 (aims of the IOC). Congress' interests in promoting the USOC's activities include these purposes as well as those Page 483 U. S. 538 specifically enumerated in the USOC's charter. [Footnote 17] Section 110 directly advances these governmental interests by supplying the USOC with the means to raise money to support Page 483 U. S. 539 the Olympics and encourages the USOC's activities by ensuring that it will receive the benefits of its efforts.
In this case, the SFAA sought to sell T-shirts, buttons, bumper stickers, and other items, all emblazoned with the title "Gay Olympic Games." The possibility for confusion as to sponsorship is obvious. Moreover, it is clear that the SFAA sought to exploit the "commercial magnetism," see Mishawaka Rubber & Woolen Mfg. Co. v. S. S. Kresge Co., 316 U. S. 203, 316 U. S. 205 (1942), of the word given value by the USOC. There is no question that this unauthorized use could undercut the USOC's efforts to use, and sell the right to use, the word in the future, since much of the word's value comes from its limited use. Such an adverse effect on the USOC's activities is directly contrary to Congress' interest. Page 483 U. S. 540 Even though this protection may exceed the traditional rights of a trademark owner in certain circumstances, the application of the Act to this commercial speech is not broader than necessary to protect the legitimate congressional interest, and therefore does not violate the First Amendment.
Section 110 also extends to promotional uses of the word "Olympic," even if the promotion is not to induce the sale of goods. Under § 110, the USOC may prohibit purely promotional uses of the word only when the promotion relates to an athletic or theatrical event. The USOC created the value of the word by using it in connection with an athletic event. Congress reasonably could find that use of the word by other entities to promote an athletic event would directly impinge on the USOC's legitimate right of exclusive use. The SFAA's proposed use of the word is an excellent example. The "Gay Olympic Games" were to take place over a 9-day period, and were to be held in different locations around the world. They were to include a torch relay, a parade with uniformed athletes of both sexes divided by city, an "Olympic anthem" and "Olympic Committee," and the award of gold, silver, and bronze medals, and were advertised under a logo of three overlapping rings. All of these features directly parallel the modern-day Olympics, not the Olympic Games that occurred in ancient Greece. [Footnote 18] The image the SFAA Page 483 U. S. 541 sought to invoke was exactly the image carefully cultivated by the USOC. The SFAA's expressive use of the word cannot be divorced from the value the USOC's efforts have given to it. The mere fact that the SFAA claims an expressive, as opposed to a purely commercial, purpose does not give it a First Amendment right to "appropriat[e] to itself the harvest of those who have sown." International News Service v. Associated Press, 248 U.S. at 248 U. S. 239-240. [Footnote 19] The USOC's right to prohibit use of the word "Olympic" in the promotion of athletic events is at the core of its legitimate property right. [Footnote 20] Page 483 U. S. 542
The SFAA argues that, even if the exclusive use granted by § 110 does not violate the First Amendment, the USOC's enforcement of that right is discriminatory in violation of the Fifth Amendment. [Footnote 21] The fundamental inquiry is whether the USOC is a governmental actor to whom the prohibitions of the Constitution apply. [Footnote 22] The USOC is a "private corporatio[n] Page 483 U. S. 543 established under Federal law." 36 U.S.C. § 1101(46). [Footnote 23] In the Act, Congress granted the USOC a corporate charter, § 371, imposed certain requirements on the USOC, [Footnote 24] and provided for some USOC funding through exclusive use of the Olympic words and symbols, § 380, and through direct grants. [Footnote 25]
The fact that Congress granted it a corporate charter does not render the USOC a Government agent. All corporations Page 483 U. S. 544 act under charters granted by a government, usually by a State. They do not thereby lose their essentially private character. Even extensive regulation by the government does not transform the actions of the regulated entity into those of the government. See Jackson v. Metropolitan Edison Co., 419 U. S. 345 (1974). Nor is the fact that Congress has granted the USOC exclusive use of the word "Olympic" dispositive. All enforceable rights in trademarks are created by some governmental act, usually pursuant to a statute or the common law. The actions of the trademark owners nevertheless remain private. Moreover, the intent on the part of Congress to help the USOC obtain funding does not change the analysis. The Government may subsidize private entities without assuming constitutional responsibility for their actions. Blum v. Yaretsky, 457 U. S. 991, 457 U. S. 1011 (1982); Rendell-Baker v. Kohn, 457 U. S. 830, 457 U. S. 840 (1982).
This Court also has found action to be governmental action when the challenged entity performs functions that have been "traditionally the exclusive prerogative'" of the Fe