Opinion ID: 76694
Heading Depth: 3
Heading Rank: 2

Heading: Federal Trademark Law

Text: 18 Dunlap alleges that the Dunlap I defendants breached an agreement to purchase the G&L Bank trademark from him and that they fraudulently induced him to sign away his rights in the mark for no consideration. The district court concluded that federal subject matter jurisdiction was present because Dunlap's claims raised essential federal questions concerning the parties' respective rights in a federally registered trademark. 11 R2-40 at 7. We disagree. 19 Specifically, the district court found three federal questions presented by Dunlap's claims regarding the G&L Bank trademark: 20 First, the determination of the plaintiff's rights in the trademark will require the application and interpretation of federal law concerning the use of the mark in commerce. Second, the validity of the transfer of the trademark will require consideration of the statutory requirements for the assignment of such a mark. Third, the plaintiff's claim for conversion may, in reality, amount to a claim for trademark infringement because the defendants' assumption of ownership of the trademark will be demonstrated either by the defendants' use of the trademark in commerce without the consent of the registrant contrary to federal law, or by the defendant's registration of the trademark with the United States Patent and Trademark Office. 21 Id. (internal citations omitted). As noted in the previous section, however, the need to apply, interpret, or consider federal law to determine whether the plaintiff is entitled to relief is not sufficient to confer federal subject matter jurisdiction—the implicated federal issue must be substantial. Franchise Tax Bd., 463 U.S. at 13, 103 S.Ct. at 2848; Merrell Dow, 478 U.S. at 814, 106 S.Ct. at 3235; Jairath, 154 F.3d at 1283; City of Huntsville, 24 F.3d at 174. 22 The Dunlap I defendants maintain that Dunlap must prove that he owned the trademark in accordance with federal trademark law to succeed on his state-law claims involving the G&L Bank trademark. 15 U.S.C. § 1051. The Dunlap I defendants assert that this ownership determination is a sufficiently substantial federal question to confer subject matter jurisdiction. 12 However, while Dunlap may have to prove ownership of the G&L Bank trademark in accordance with federal law (and we need not decide that issue in this appeal), such a determination would not raise disputed questions of federal law sufficient to confer removal jurisdiction.