Nacre v. Silynx (or QuietPro v. QuietOps): Garnering Lots of Attention

     Of the many IP cases summarized on the Maryland IP Law blog recently, two have garnered the most attention from site visitors: Technology Patents LLC v. Deutsche Telekom, which I summarized in November, and Nacre v. Silynx Communications, which I discussed in October. I can understand why the Technology Patents case has received attention: the patent infringement allegations involve popular text messaging technology, and the number of defendants that have been sued (131) makes the lawsuit one of the largest ever filed in the District Court for the District of Maryland.

     It is not as apparent, however, why the Nacre v. Silynx case has received the attention that it has. Perhaps it is the subject matter of the lawsuit, which, according to Nacre's complaint involves “two-way radios and wireless communicators for use in combat, in battlefield conditions, in military, military special forces, and law enforcement activities.” This would seem to be a huge market today.

     Or perhaps it is the competitiveness between the parties, both of which claim on their respective websites to be the "world's leader" in communications equipment that incorporates sophisticated noise canceling/noise protection technology. Nacre sells to the U.S. and foreign governments. Rockville, MD-based Silynx Communications states on its website that its headsets are used by the U.S. Special Operations Command (USSOCOM), U.S. Army, USMC and the world’s elite Special Forces.

     I'll track the docket and maybe learn other reasons why many are drawn to the case.

Update:

  • Silynx filed is answer to Nacre’s complaint on November 28, 2007. In it, Silynx makes the standard denials of Nacre’s allegations, affirmative defenses, and counterclaims (i.e., declaration of trademark and patent non-infringement, trademark and patent invalidity, and patent unenforceability).

  • Silynx also asserted a defense of “government contractor immunity” under 28 U.S.C. § 1498 (that statute has been used by private parties to establish that they cannot be held liable for infringement for any goods “used or manufactured by or for the United States”).

  • Silynx’s unenforceability allegation is based on claims that “those involved in patent prosecution failed to disclose to the U.S. Patent and Trademark Office at least one publication by one of the inventors entitled “Active Noise Reduction In An Ear Terminal” given on March 18, 1999 at the Technical University of Berlin as part of the 137th Regular Meeting of the Acoustical Society of America 2nd Convention of the European Acoustics Association: Forum Acousticum 99 integrating the 25th German Acoustics DAGA Conference.”

Comments:

  • Plaintiff Nacre AS is a Norwegian company that claims to own the U.S. registered trademark QUIETPRO, U.S. Patent No. 7,039,195 (“Ear Terminal”) and U.S. Patent No. 6,567,524 (“Noise Protection Verification Device”).

  • Silynx is reportedly seeking a federal trademark for its QUIETOPS mark

  • Nacre is represented by Andrew Kopsidas of DC's Fish & Richardson (with Gregory A. Madera, Ahmed J. Davis, Adam J. Kessel, and Charles Hieken admitted pro hac).

  • Silynx is represented by Paul J. Lambert of DC’s Bingham McCutchen (with Robert C. Bertin, Timothy A Molino, and Richard S. Taffet admitted pro hac)

Sen. Baucus to the PTO: Don't Register "The Last Best Place"

Question: What do Montana's slogan “'The Last Best Place” and federal appropriations legislation have in common?  One was used to stop the other from becoming the trademark of a Nevada company.


    Sec. 206 of the Science, State, Justice, Commerce, and Related Agencies Appropriations Act of 2006 prohibits the use of federal funds to "register, issue, transfer, or enforce any trademark of the phrase THE LAST BEST PLACE." It was added to the 2006 and 2007 federal appropriations legislation by Montana Sen. Conrad Burns (Sen. Max Baucus continued the tradition for the 2008 bill) in response to attempts by Last Best Beef, LLC, a Nevada company, to trademark the phrase in connection with a variety of different products and services. The phrase, however, happens to be Montana’s slogan. When President Bush signed the appropriations acts into law, the PTO withdrew registration for several of the Last Best Beef’s trademark applications. Last Best Beef responded by filing a civil lawsuit against the PTO (see Senate approves ‘Last Best' measure). 

    The Eastern District of Virginia that found Sec. 206 invalid, and thus a legal nullity, on the grounds that it contradicted but did not constitute an implied repeal or suspension of the Lanham Act. In The Last Best Beef, LLC v. Dudas, No. 06 Civ. 2219 (4th Cir. Oct. 24, 2007), the Court of Appeals for the Fourth Circuit reversed, finding that Sec. 206 was not invalid. In reaching its decision, the Court refused to adopt a per se rule that Congress cannot amend or suspend prior legislation through appropriations riders, stating:

     “While the district court expressed the view that it was unwilling to see the Lanham Act punctuated by the types of exceptions that characterize such complex bodies of law as the Internal Revenue Code, the wisdom of tradeoffs between simplicity and complexity is for Congress to decide, not the federal courts. What may seem inadvisable on the part of Congress is not unconstitutional.”

Comments:

  • So what’s the lesson? Don’t fret with the PTO's trademark opposition rules. You can always seek intervention from your Senator, especially where the trademark involves a well-known slogan. Just goes to show the power of the legislative branch in wielding the appropriations axe.

  • So how does this case affect Maryland?  Because the Fourth Circuit includes Maryland, the Last Best Beef v. Dudas is a precedential opinion in this state, so don't tread on the Old Line State or mess with The Free State.

  • In dicta, the Circuit Court Judges stated that Last Best Beef "certainly has a point," revealing the Court's appreciation for the positions advanced by Last Best Beef in this case.

  • Other trademarks Congress has removed from the trademark application process:

    • SMOKEY BEAR (exclusive rights given to the Dept. of Interior)
    • THE GIRL SCOUTS OF AMERICA (exclusive rights to emblems, badges)
    • LITTLE LEAGUE (exclusive rights given to Little League Baseball)
    • UNITED STATES OLYMPIC COMMITTEE (exclusive rights given to the U.S. Olympic Committee)  

Around the Blogosphere

     There is so much IP news to talk about these days, it's hard to keep up.  Although a lot of what's going on in the IP world and online blogosphere only indirectly affects Marylanders, it is nontheless still interesting, informative, and often very useful to IP practitioners in this state. So, here is a brief roundup, as it were:


Patent Troll Tracker: the anonymous, often-attacked blogger who runs the Troll Tracker (who are you?!) has an interesting post today called "Patent Troll Sues Fish & Richardson," which describes how a BigLaw lawyer can get into hot water when bitten by the invention bug (I'll be adding Troll Tracker to the blogroll on this blog soon; always an interesting read).


Patently-O: popular, prolific, and not anonymous blogger Dennis Crouch over at long-running Patently-O posted some comments from patent practitioners yesterday, which he collectively entitled "Rule Changes Triage: Dealing with already pending claims prior to November 1." I've already put some of those informative comments to good use.


Recording Industry vs. The People: The good people running the Recording Industry vs. The People blog posted "Jammie Thomas to Appeal!!!" yesterday. For those not following the Record Industry Association of America (RIAA) legal blitz (23,000 sued/threatened so far), Ms. Thomas' case was the first to make it through to a trial verdict (she lost), and so the case was watched by many in the industry. See my related post here. The blog is run by veterans Ty Rogers and Ray Beckerman over at Vandenberg & Feliu, LLP.


Copyright Office:  The Copyright Office (not the blog) issued an announcement yesterday that should appeal to those thirsty for copyright news. Entitled "Copyright Office Announces Customized Email Subscription Services," it describes an optional email-based news source. Subscribe here. Let's just hope that service is more timely than the announcement, which is shown with an October 2, 2007, date, but my feedreader didn't pick it up (i.e., it wasn't posted on-line) until October 8, 2007.


The Big Lead: Okay, so this site, which I warn you is at times a bit, how should I say this?-salacious, is not an IP blog, but a colleague turned me on to this increasingly-popular sports blog run by two anonymous, self-described "twenty-somethings," and it serves to make a point. As blogs and blogging in general become more and more popular (replacing traditional web sites in many cases), I'm betting that law firms and lawyers, including IP practitioners, will increadingly view this as an opportunity to market a niche practice area, one devoted to legal issues affecting blogs and bloggers. Such a practice area would involve specialty IP issues--copyrights, trademarks, domain disputes, and (to a lesser extent) patents--as well as general areas of the law, like corporate, first amendment, defamation, privacy, and employment law, to name a few.  Hmm, that gives me an idea...

     I'll be back later this week (hopefully, tomorrow) with coverage of last week's flurry of new litigation cases filed in the Federal District Court here in Maryland (all trademark cases). Plus, I have some new patent filing statistics for Maryland.

About

Brian Wm. Higgins, J.D., P.E.

 

I represent authors, artists, and educators, as well as engineers, doctors, scientists, small not-for-profit companies and multi-billion dollar international corporations. My law practice focuses on patent litigation and patent procurement in the life sciences sector (drugs, nutritional supplements, and medical devices), but I also provide patent, copyright, trademark, and trade secret counseling in the financial, telecommunications, automotive, environmental protection, and consumer electronics industries, to name a few. As a registered patent attorney and professional engineer, I help companies maximizing the value of their technology assets in the United States and around the world by strategically identifying and managing the business risks associated with procuring, maintaining, licensing, and enforcing intellectual property assets.

 

 

Education

 

J.D., University of Maryland School of Law

M.S., Johns Hopkins University, Whiting School of Engineering (environmental engineering)

B.S., Arizona State University (chemical engineering)

 

 

Admissions and Registrations

 

U.S. Court of Appeals for the Federal Circuit

U.S. District Court for the District of Maryland

U.S. Patent and Trademark Office

Maryland Court of Appeals

District of Columbia

Professional Engineer (P.E.)

 

 

Professional Career

 

Blank Rome, LLP: Attorney

Science Applications International Corporation: Engineer

Woodward-Clyde Consultants: Engineer

U.S. Army Center for Health Promotion and Preventive Medicine (CHPPM); Captain/Engineer

 

 

Community Service

 

In addition to blogging for this web site, I volunteer my time as an ad hoc peer reviewer for the Journal of Environmental Health (a National Environmental Health Association publication) and other association publications.