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- SUPREME COURT OF THE UNITED STATES
- --------
- No. 91-971
- --------
- TWO PESOS, INC., PETITIONER v. TACO CABANA,
- INC.
- on writ of certiorari to the united states court of
- appeals for the fifth circuit
- [June 26, 1992]
-
- Justice Stevens, concurring in the judgment.
- As the Court notes in its opinion, the text of 43(a) of the
- Lanham Act, 15 U. S. C. 1125(a), -does not mention
- trademarks or trade dress.- Ante, at 11. Nevertheless, the
- Court interprets this section as having created a federal
- cause of action for infringement of an unregistered trade-
- mark or trade dress and concludes that such a mark or
- dress should receive essentially the same protection as
- those that are registered. Although I agree with the Court's
- conclusion, I think it is important to recognize that the
- meaning of the text has been transformed by the federal
- courts over the past few decades. I agree with this trans-
- formation, even though it marks a departure from the
- original text, because it is consistent with the purposes of
- the statute and has recently been endorsed by Congress.
- I
- It is appropriate to begin with the relevant text of
- 43(a). See, e.g., Moskal v. United States, 498 U. S. ---
- (1990); K Mart Corp. v. Cartier, Inc., 486 U. S. 281, 291
- (1988); United States v. Turkette, 452 U. S. 576, 580 (1981).
- Section 43(a) provides a federal remedy for using either
- -a false designation of origin- or a -false description or
- representation- in connection with any goods or services.
- The full text of the section makes it clear that the word
- -origin- refers to the geographic location in which the goods
- originated, and in fact, the phrase -false designation of
- origin- was understood to be limited to false advertising of
- geographic origin. For example, the -false designation of
- origin- language contained in the statute makes it unlawful
- to represent that California oranges came from Florida, or
- vice versa.
- For a number of years after the 1946 enactment of the
- Lanham Act, a -false description or representation,- like -a
- false designation of origin,- was construed narrowly. The
- phrase encompassed two kinds of wrongs: false advertis-
- ing and the common-law tort of -passing off.- False
- advertising meant representing that goods or services
- possessed characteristics that they did not actually have
- and passing off meant representing one's goods as those of
- another. Neither -secondary meaning- nor -inherent
- distinctiveness- had anything to do with false advertising,
- but proof of secondary meaning was an element of the
- common-law passing-off cause of action. See, e.g., G. & C.
- Merriam Co. v. Saalfield, 198 F. 369, 372 (CA6 1912) (-The
- ultimate offense always is that defendant has passed off his
- goods as and for those of the complainant-).
- II
- Over time, the Circuits have expanded the categories of
- -false designation of origin- and -false description or
- representation.- One treatise identified the Court of
- Appeals for the Sixth Circuit as the first to broaden the
- meaning of -origin- to include -origin of source or manufac-
- ture- in addition to geographic origin. Another early case,
- described as unique among the Circuit cases because it was
- so -forward-looking,- interpreted the -false description or
- representation- language to mean more than mere -palming
- off.- L'Aiglon Apparel, Inc. v. Lana Lobell, Inc., 214 F. 2d
- 649 (CA3 1954). The court explained: -We find nothing in
- the legislative history of the Lanham Act to justify the view
- that [43(a)] is merely declarative of existing law. . . . It
- seems to us that Congress has defined a statutory civil
- wrong of false representation of goods in commerce and has
- given a broad class of suitors injured or likely to be injured
- by such wrong the right to relief in the federal courts.- Id.,
- at 651. Judge Clark, writing a concurrence in 1956, pres-
- ciently observed: -Indeed, there is indication here and
- elsewhere that the bar has not yet realized the potential
- impact of this statutory provision [43(a)].- Maternally
- Yours, Inc. v. Your Maternity Shop, Inc., 234 F. 2d 538, 546
- (CA2). Although some have criticized the expansion as
- unwise, it is now -a firmly embedded reality.- The
- United States Trade Association Trademark Review
- Commission noted this transformation with approval:
- -Section 43(a) is an enigma, but a very popular one.
- Narrowly drawn and intended to reach false designations or
- representations as to the geographical origin of products,
- the section has been widely interpreted to create, in
- essence, a federal law of unfair competition. . . . It has
- definitely eliminated a gap in unfair competition law, and
- its vitality is showing no signs of age.-
- Today, it is less significant whether the infringement falls
- under -false designation of origin- or -false description or
- representation- because in either case 43(a) may be
- invoked. The federal courts are in agreement that 43(a)
- creates a federal cause of action for trademark and trade
- dress infringement claims. 1 J. Gilson, Trademark Protec-
- tion and Practice 2.13, p. 2-178 (1991). They are also in
- agreement that the test for liability is likelihood of confu-
- sion: -[U]nder the Lanham Act [43(a)], the ultimate test is
- whether the public is likely to be deceived or confused by
- the similarity of the marks . . . . Whether we call the
- violation infringement, unfair competition or false designa-
- tion of origin, the test is identical-is there a `likelihood of
- confusion?'- New West Corp. v. NYM Co. of California, Inc.,
- 595 F. 2d 1194, 1201 (CA9 1979) (footnote omitted). And
- the Circuits are in general agreement, with perhaps the
- exception of the Second Circuit, that secondary meaning
- need not be established once there is a finding of inherent
- distinctiveness in order to establish a trade dress violation
- under 43(a).
- III
- Even though the lower courts' expansion of the categories
- contained in 43(a) is unsupported by the text of the Act,
- I am persuaded that it is consistent with the general
- purposes of the Act. For example, Congressman Lanham,
- the bill's sponsor, stated: -The purpose of [the Act] is to
- protect legitimate business and the consumers of the
- country.- 92 Cong. Rec. 7524 (1946). One way of
- accomplishing these dual goals was by creating uniform
- legal rights and remedies that were appropriate for a
- national economy. Although the protection of trademarks
- had once been -entirely a State matter,- the result of such
- a piecemeal approach was that there were almost -as many
- different varieties of common law as there are States- so
- that a person's right to a trademark -in one State may
- differ widely from the rights which [that person] enjoys in
- another.- H. R. Rep. No. 944, 76th Cong., 1st Sess., 4
- (1939). The House Committee on Trademarks and Patents,
- recognizing that -trade is no longer local, but . . . national,-
- saw the need for -national legislation along national lines
- [to] secur[e] to the owners of trademarks in interstate
- commerce definite rights.- Ibid.
- Congress has revisited this statute from time to time, and
- has accepted the -judicial legislation- that has created this
- federal cause of action. Recently, for example, in the
- Trademark Law Revision Act of 1988, Pub. L. 100-667, 102
- Stat. 3935, Congress codified the judicial interpretation of
- 43(a), giving its imprimatur to a growing body of case law
- from the Circuits that had expanded the section beyond its
- original language.
- Although Congress has not specifically addressed the
- question whether secondary meaning is required under
- 43(a), the steps it has taken in this subsequent legislation
- suggest that secondary meaning is not required if inherent
- distinctiveness has been established. First, Congress
- broadened the language of 43(a) to make explicit that the
- provision prohibits -any word, term, name, symbol, or
- device, or any combination thereof'' that is -likely to cause
- confusion, or to cause mistake, or to deceive as to the
- affiliation, connection, or association of such person with
- another person, or as to the origin, sponsorship, or approval
- of his or her goods, services, or commercial activities by
- another person.- 15 U. S. C. 1125(a). That language
- makes clear that a confusingly similar trade dress is
- actionable under 43(a), without necessary reference to
- -falsity.- Second, Congress approved and confirmed the
- extensive judicial development under the provision, includ-
- ing its application to trade dress that the federal courts had
- come to apply. Third, the legislative history of the 1988
- amendments reaffirms Congress' goals of protecting both
- businesses and consumers with the Lanham Act. And
- fourth, Congress explicitly extended to any violation of
- 43(a) the basic Lanham Act remedial provisions whose
- text previously covered only registered trademarks. The
- aim of the amendments was to apply the same protections
- to unregistered marks as were already afforded to regis-
- tered marks. See S. Rep. No. 100-515, p. 40 (1988). These
- steps buttress the conclusion that 43(a) is properly
- understood to provide protection in accordance with the
- standards for registration in 2. These aspects of the 1988
- legislation bolster the claim that an inherently distinctive
- trade dress may be protected under 43(a) without proof of
- secondary meaning.
- IV
- In light of the general consensus among the Courts of
- Appeals that have actually addressed the question, and the
- steps on the part of Congress to codify that consensus, stare
- decisis concerns persuade me to join the Court's conclusion
- that secondary meaning is not required to establish a trade
- dress violation under 43(a) once inherent distinctiveness
- has been established. Accordingly, I concur in the judg-
- ment, but not in the opinion of the Court.
-