In 2014, Javier Ramos decided to open seafood restaurants in California and Texas. Ramos claims that he

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In 2014, Javier Ramos decided to open seafood restaurants in California and Texas. Ramos claims that he was describing the crusted glaze applied to cooked seafood to his friend Ivan Murillo when Murillo suggested naming the restaurant Crusted Crab. This name eventually morphed into The Krusty Krab, and Ramos filed a trademark application for the name through his company, IJR Capital Investments. There was just one problem: The Krusty Krab is also the name of a restaurant that plays a prominent role in the animated television series SpongeBob Squarepants that is shown on Viacom’s Nickelodeon network. The Krusty Krab has appeared in 166 of the 203 episodes of SpongeBob Squarepants and is frequently featured in the show’s merchandise and advertisements. In 2015, Viacom sent IJR a cease-anddesist letter that demanded the withdrawal of IJR’s trademark. IJR refused to cease use, stating that the business plan for The Krusty Krab makes no reference to the SpongeBob franchise and that there was no likelihood for customer confusion. IJR further claimed that Viacom does not actually use The Krusty Krab as a trademark in the first place. Can Viacom hold the trademark for a fictional restaurant? How do you think the court ruled? 

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Dynamic Business Law

ISBN: 9781260733976

6th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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