Copyright law, trademark registrations, searches and contracts.

Contract dispute over allocation of trademark rights between parties is insufficient for federal question jurisdiction – International Armor & Limousine Co v. Moloney Coachbuilders, Inc., 272 F.3d 912 (7th Cir. Nov. 26, 2001)

Earle F. Moloney sold his limousine business and the name "Moloney Coach Builders" to Jacques Moore who used Moloney Coachbuilders, Inc. as his corporate name. In addition to the corporate name, Moore used "Moloney Coach Builders" as a trademark. Moloney asserted that under the agreement Moore could only use this phrase as a corporate name, not as a trademark. Eventually, Moloney’s new company, International Armor, filed suit for a declaratory judgment that it could use the "Moloney" name without violating section 43 of the Lanham Act. The court decided that the essence of the dispute was over the provisions in the contract of sale between the parties that dealt with the disposition of the "Moloney" name and that this dispute presented a state law contract interpretation issue outside the limits of federal jurisdiction.

This case reinforces the concept that state law will govern contract disputes even when the subject matter of the contract deals with federal intellectual property rights.

Caution:

This abstract summarizes the cited case only. The legal effect of a particular case can change for various reasons including the outcome of an appeal, a later court decision, or new legislation. This abstract is provided as an illustration of a specific outcome under the specific conditions and laws in effect at the time of the decision. You should not rely on this abstract or this case as representing current law without conducting further research. To request further information about this case or a related issue, contact us at 301.332.4850 or click here to send us an email.

Can't find what you're looking for?
Try the Site Map.