How Can Ford Motor Company do this??

Discussion in 'Legal Issues' started by rick sample, Jun 2, 2006.

  1. #1
    The Question:
    Is Ford suing because Mustang plus is an aftermarket retailer or? I'm developing this website (RankMyMustang.com) (Not live yet) and it will feature a Mustang forum and a Mustang rating system. I won't sell or produce any parts at all. Should I be concerned about trouble???




    STOCKTON - Mustangs Plus Inc., which has spent 25 years building up its specialty parts business under the Mustang moniker, now must tear that trademark from its business and Internet domain names or face a suit by Ford Motor Co.

    Compliance with Ford's demands will negatively impact company value in the present and company sales in the future, said Ron Bramlett, a partner in family-owned Mustangs Plus at 2353 N. Wilson Way in Stockton.

    "I was a young man when I started this. You work half your life and then have it snatched," said Bramlett, 52.

    Ford also is trying to protect the value of the business it has built since 1903, said Gregory Phillips, a partner in the firm that drafted the cease and desist letter.

    "The courts have recognized that a trademark name such as Mustang is an important asset of Ford Motor Co.," Phillips said.

    The Feb. 16 letter from Howard, Phillips and Andersen, a Utah law firm representing Ford on intellectual property enforcement matters, asked Mustangs Plus to:

    » Transfer to the automaker the registration for mustangsplus.com.

    » Submit to government offices all forms necessary to discontinue registration of the Mustangs Plus name.

    » Cancel Internet and telephone directory listings and advertising under the Mustangs Plus name.

    » Turn over for destruction all signs, banners, business cards and collateral materials.

    » Issue a check to Ford for $10,000 in damages.

    Since 2000, the firm has sent "hundreds" of similar letters to businesses perceived to have trampled on Ford trademarks, Phillips said.

    Ford has been successful in collecting damages in most of those cases.

    While most businesses settle out-of-court, about 50 lawsuits have been filed, and all of those were resolved in Ford's favor, according to Phillips.

    The scope of trademark infringement actions could be widened to include publications and organizations that use Mustang and other Ford trademarks, he said.

    In the 1990's, Ford sent guidelines to selected restoration parts manufacturers, wholesalers and retailers, including Mustangs Plus, authorizing the use of trademarked names as long the business name was accompanied by a qualifying word or phrase such as "vintage" or "classic."

    Bramlett and his partners believed Mustangs Plus met that criteria, and a decade of silence from Ford quarters deemed confirmation.

    Bramlett believes that the use of the Mustang name by those unaffiliated with Ford amounts to free advertising.

    Mustangs Plus owner Ron Bramlett sits in his golf cart Tuesday at his business that provides parts for the sports car. Ford Motor Co. is cracking down on independent companies, including the Wilson Way store, using its Mustang trademark. "I have to believe in those years Mustang was glad to have people use the name," Bramlett said.

    That argument has been rejected by the courts, Phillips said.

    Harry Pulliam, owner of Mustang and Muscle Parts in Oakdale, in the mid-1980's received a letter similar to the one recently delivered to Mustangs Plus.

    "I told them a long time ago I would be willing to sell Chevy parts," he said.

    Now, two decades later, a legal battle would hardly be worth his while. "I would just quit," he said.

    Intellectual property is a gray area of the law, said Gregg Meath, a Stockton attorney who teaches Internet and computer law at University of the Pacific's McGeorge School of Law.

    Meath said that Mustang Plus' use of the trademark is likely fair since it is descriptive and does not imply affiliation with Ford.

    "How else are they to tell people what it is they do?" he said.

    But, he said, a court battle would be a "big guy vs. little guy" fight that would cost Mustangs Plus tens of thousands of dollars.

    "We try to wear the white hats and be reasonable," Phillips said. "It's already bad when you have a big company come after a little company."

    For now, Mustangs Plus and Ford are at a stalemate.

    "We've spent some time with our attorney, who has spent some time with them. It's very costly and it's going nowhere," Bramlett said.

    Phillips also voiced frustration with the lack of resolution.

    "Ford is not trying to put this guy out of business. We've offered Mustangs Plus a reasonable transition period of three to six months.

    Mustangs Plus partners, who include Bramlett's brother, David, will likely not sign the Ford agreement, viewing such an action as an admission of guilt,

    But they have decided to rename the business using the word "restomod," a term referring to car restoration and modification that Mustangs Plus copyrighted.

    The wording of the final name has yet to be ironed out, though: That decision must wait for another business to relinquish its hold on the "restomod" moniker.
     
    rick sample, Jun 2, 2006 IP
  2. digitalpoint

    digitalpoint Overlord of no one Staff

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    #2
    They can do it because Ford Motor Company has the legal trademark for "Mustang" when used in the automotive industry.
     
    digitalpoint, Jun 2, 2006 IP
  3. Colbyt

    Colbyt Notable Member

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    #3
    Any time you use a trademarked name that you don't own you should be concerned.

    The sole exception is a parody site and you might lose even that.
     
    Colbyt, Jun 2, 2006 IP
  4. mdvaldosta

    mdvaldosta Peon

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    #4
    I wouldn't worry too much about it, Ford's been doing that since the 90's. I think Ford is more concerned with businesses than enthusiast sites. There are some pretty big name Mustang enthusiast sites that have been around for many years and never has one of them been given a C&D. Besides, enthusiast sites drive more car and parts sales to Ford than any other way.
     
    mdvaldosta, Jun 2, 2006 IP
  5. rick sample

    rick sample Peon

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    #5
    So if I launched my Mustang rating website and they didn't aprove, would I get a notice to be in court or would they say something such as "If you don't hand over the domain and company, we will sue for XXXX"?
     
    rick sample, Jun 2, 2006 IP
  6. Lever

    Lever Deep Thought

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    #6
    Well if BP can trademark the colour green in Australia, technically anything like this is possible with a fat wad of cash and numerous top-flight lawyers at your disposal.

    Personally i think Ford suck - this does their brand more damage than the guys who are keeping the Mustang spirit alive. If I were that Bramlett guy, I'd flog all my stock and focus on chevy parts instead.
     
    Lever, Jun 2, 2006 IP
  7. Catnabbit

    Catnabbit Peon

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    #7
    Ford will most likely try to issue you a Cease & Desist letter before they take you to court. It costs way too much to take every single thing to court.

    Ford is probably suing people who sell parts under the Mustang name because it creates direct competition between Ford and the Mustang company. People may have trouble understanding the difference between the two companies. Stuff like that.

    If you have a forum where Mustang fans talk about the Mustang car, you probably won't be in nearly as much trouble as someone who is using the mustang name to sell car parts. But yes, you could be at risk regardless. Ford owns the trademark.
     
    Catnabbit, Jun 2, 2006 IP
  8. iowadawg

    iowadawg Prominent Member

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    #8
    Yeah, that's the ticket!

    Oh wait, I have boycotted ford since the 60's, when as a young man I drove with my new bride into a ford lot and while looking at new fords, had some salesman come up to me and asked me to please remove my piece of junk from the lot.
    I did, and have never gone back to a ford dealership since.

    Doubt if they ever knew they lost a customer then or now or in the future.
     
    iowadawg, Jun 2, 2006 IP
    orlady likes this.
  9. mykoleary

    mykoleary Peon

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    #9
    They might ask for it first, they may not. Either way, they'll dispute your ability to own the domain through ICANN's domain dispute resolution process. And they would likely win. Even if they approve, at some point they'll come kncking on your door. If they don't actively enforce their trademarks, they lose the right to do so at all.
     
    mykoleary, Jun 2, 2006 IP
  10. BamaStangGuy

    BamaStangGuy Notable Member

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    #10
    BamaStangGuy, Jun 3, 2006 IP
  11. EveryQuery

    EveryQuery Well-Known Member

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    #11
    Dugg the article and hope Ford wises up on the lawsuits. Why would they sue sites that are PROMOTING their product? :rolleyes:
     
    EveryQuery, Jun 3, 2006 IP
  12. BamaStangGuy

    BamaStangGuy Notable Member

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    #12
    Thanks for the Digg. Did not see this thread, thanks to whoever merged it.
     
    BamaStangGuy, Jun 3, 2006 IP
  13. mykoleary

    mykoleary Peon

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    #13
    Because if they don't, they aren't enforcing their trademark, and they lose the right to go after the ones that AREN'T promoting their products. It's a tough place for all businesses to be in, but one they have to face.
     
    mykoleary, Jun 3, 2006 IP
  14. COUME

    COUME Peon

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    #14
    Nice one :)
     
    COUME, Jun 4, 2006 IP
  15. dsrlolok

    dsrlolok Peon

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    #15
    They own "mustang" as a trademark and can probably get your site taken down, sorry
     
    dsrlolok, Jun 12, 2006 IP