Trademark co-ownership: Balancing the single-source doctrine and property rights in the American context

This article explores the issue of trademark co-ownership, which arises due to the contradiction between the individualizing function of a trademark and the proprietary nature of exclusive rights. On the one hand, the single-source doctrine requires that a trademark be associated with a single source in the minds of consumers, preventing consumer confusion. On the other hand, the right of co-ownership allows multiple parties to manage the trademark at their discretion, which can disrupt the connection between the mark and its source. The aim of this study is to determine the extent to which models of trademark co-ownership can maintain a balance between these conflicting interests in the modern economy. The development of digital technologies, global platforms, and joint branding has changed consumer behavior, making consumers more informed and less susceptible to confusion. In this context, strict limitations on trademark co-ownership, based on traditional notions of consumer protection, may require reconsideration. The research methodology includes a comparative legal analysis of case law, legislative provisions, and doctrinal sources, as well as elements of economic analysis of law. The article examines contemporary legal approaches to trademark co-ownership, including U.S. case law precedents such as East West Tea Co., LLC v. Puri, as well as alternative regulatory models in other jurisdictions (for example, the German model, which requires the consent of all co-owners for licensing). The study’s findings indicate that existing approaches to trademark co-ownership in the U.S. provide co-owners with significant freedom but may also create risks of bargaining power imbalances and opportunistic behavior. However, in the digital economy, where consumers are more knowledgeable, strict protections against brand confusion may be losing relevance. This opens the possibility for more flexible regulations, where co-ownership of exclusive trademark rights becomes a more sustainable and predictable ownership model.

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