Viacom has succeeded in a dispute over IJR Capital Investment’s alleged infringement of Viacom’s “The Krusty Krab” trademark used on a restaurant of the same name.
Earlier this week, the Court of Appeals for the Southern District of Texas upheld the district court’s decision granting summary judgment to Viacom against IJR Capital Investments on its claim of trademark infringement based on IJR’s use of the trademark as the name of a chain of seafood restaurants named after the restaurant of the same name that appears in SpongeBob SquarePants. Despite the fact that no actual restaurant used the mark and that The Krusty Krab mark was not previously registered by Viacom at the US Patent & Trademark Office, the court nevertheless held that “The Krusty Krab mark identifies the source of products, which is Viacom, the creator of the 'SpongeBob SquarePants' fictional universe and its inhabitants…”
The court held in favor of Viacom that use of The Krusty Krab mark was likely to confuse consumers based on a number of factors such as: (1) the mark appears in over 80% of episodes of the TV show; (2) the mark plays a prominent role in the SpongeBob films and musical, is featured online, in video games, and on licensed merchandise; (3) that The Krusty Krab’s central role in the multi-billion dollar SpongeBob franchise is strong evidence that it is recognized in itself as an indication of origin for Viacom’s licensed goods and television services; and (4) that The Krusty Krab mark is distinctive enough to warrant protection. Find out more by clicking here.