Eek! “Naked licensing” leads to lost trademarks

Description

Abstract: “Freecyclers” are people who encourage others to pass on their goods rather than disposing of them. But this generous approach to life doesn’t always fly in the world of intellectual property. This article describes a case in which an umbrella nonprofit organization ordered a member to cease using its trademarks. The member responded with a declaratory action seeking a finding of noninfringement based on a defense of “naked licensing,” in which the owner loses the right to enforce its marks after failing to enforce their quality. FreecycleSunnyvale v. The Freecycle Network, No. 08-16382, Nov. 24, 2010 (9th Cir.)