When Logos Lead to Lawsuits
The infamous Nittany Lion is often associated with The Pennsylvania State University (“Penn State”).[1] In November 2024, Penn State secured a legal victory in a trademark infringement lawsuit against Vintage Brand, a company that sells vintage-style merchandise featuring logos from various universities.[2] Penn State, which has been using the Nittany Lion as their mascot for decades, filed suit in 2021, arguing that Vintage Brand’s products were misleading customers into believing they were officially licensed.[3] Vintage Brands was selling products using Penn State’s logo without their permission.[4] Other schools, such as Purdue and Stanford, have also sued Vintage Brand on the same grounds, but Penn State was the first school to go to trial over the matter.[5]
Vintage Brand admitted that it did not have a license to use Penn State’s trademarks but unsuccessfully claimed that the logos featured on its merchandise were in the public domain and not subject to trademark protection.[6] While the company’s website included disclaimers stating that its designs were not “affiliated with, licensed, or sponsored by any college, team or league”.[7] Nonetheless, a Pennsylvania jury awarded Penn State $28,000 in damages.[8]
A trademark is a word, phrase, symbol, or design that represent a company’s goods or services; it helps customers recognize a brand and distinguish it from competitors.[9] Developing a logo is an effective way to establish and reinforce a company’s identity.[10] Trademarking a logo starts with confirming its available by searching the U.S. Patent and Trademark Office (USPTO) database to ensure no similar trademarks are already registered.[11] The next step is choosing between state or federal registration; state registration protects the trademark within that state only, while federal registration with the USPTO grants nationwide protection and exclusive rights to use the logo across the U.S.[12] Securing a trademark is not the last step; it is also essential to regularly monitor for unauthorized use of the logo to prevent infringement.[13]
If a trademark application is rejected, it may be due to generic design, similarity to an existing trademark, ornamental rather than identifying use, offensive language or imagery, or geographically misleading elements that falsely suggest a specific origin.[14] When one designs their own logo, they automatically own the trademark rights.[15] If a designer is hired, the ownership transfers once it is purchased, usually through a Transfer Agreement.[16] Trademarking a logo typically takes six to nine months, but can stretch up to three years.[17] The costs for federal registration with the USPTO can cost between $275 and $660 and state registration ranges from $50 to $150.[18]
Trademarking a logo grants priority rights to its use, so unauthorized use of the logo may mislead customers into believe that another logo is the same.[19] When an individual or company incorporates elements that closely resemble an existing logo, it can create confusion among customers, constituting trademark infringement.[20] Using a registered trademark without permission violates the owner’s legal rights and may lead to legal action.[21] Trademark owners typically start by sending a cease and desist letter which demands the unauthorized use to stop and warns of potential legal consequence if ignored.[22]
A trademark is a valuable business asset that represents a brand and distinguishes from competitors.[23] When a logo trademark is infringed upon, the unauthorized party is exploiting the business for personal gain.[24] This can result in lost business opportunities by misleading customers into believing the infringing party is the rightful brand.[25] Additionally, it can damage the business’s reputation, whether through misleading online activity, inappropriate customer interactions, or other harmful actions conducted under the brand’s name.[26] Accordingly, Vintage Brands was selling merchandise featuring Penn State’s logo, likely profiting from customers who mistakenly assumed the brand was affiliated with the school.[27] Trademarks play a crucial role, particularly for Penn State, where they are considered “critical” to the university’s brand.[28]
Footnotes
