Facts: The National Chapter of the Jaycees sued the Philadelphia chapter of the Jaycees for trademark infringement. The Philadelphia Jaycees defended by claiming abandonment.
Procedural History: Appellants, national and state organizations, alleged that the district court abused its discretion in granting a narrow injunction the local organization to continue using the national's trademark. On appeal, the court vacated and remanded the district court judgment with directions to permanently enjoin the local organization from using the trademark.
Issue: Whether the National Chapter abandoned the trademark by allowing the Philadelphia chapter to continue its use without suing them?
Holding: The Third Circuit held that the Philadelphia Jaycees cannot show either the non-use or the intent to abandon simply from the lack of litigation from the national charter.
Discussion: The Philadelphia Jaycees argued that because the National chapter revoked their charter yet did not sue them for trademark infringement for 5 years the National chapter had abandoned the trademark. However, the Court said that to establish the defense of abandonment it is necessary to show not only acts indicating a practical abandonment, but an actual intent to abandon. Acts which unexplained would be sufficient to establish an abandonment may be answered by showing that there never was an intention to give up and relinquish the right claimed. In this case the Philadelphia chapter was unable to show non-use or the intent to abandon.
Procedural History: Appellants, national and state organizations, alleged that the district court abused its discretion in granting a narrow injunction the local organization to continue using the national's trademark. On appeal, the court vacated and remanded the district court judgment with directions to permanently enjoin the local organization from using the trademark.
Issue: Whether the National Chapter abandoned the trademark by allowing the Philadelphia chapter to continue its use without suing them?
Holding: The Third Circuit held that the Philadelphia Jaycees cannot show either the non-use or the intent to abandon simply from the lack of litigation from the national charter.
Discussion: The Philadelphia Jaycees argued that because the National chapter revoked their charter yet did not sue them for trademark infringement for 5 years the National chapter had abandoned the trademark. However, the Court said that to establish the defense of abandonment it is necessary to show not only acts indicating a practical abandonment, but an actual intent to abandon. Acts which unexplained would be sufficient to establish an abandonment may be answered by showing that there never was an intention to give up and relinquish the right claimed. In this case the Philadelphia chapter was unable to show non-use or the intent to abandon.