Following last week’s post where Arnold J found Marks & Spencer liable for buying ads on the keyword INTERFLORA because of the initial interest confusion, the 10th Circuit Court of Appeals in the USA has heavily qualified when (perhaps that should be “if” or “if ever”) initial interest confusion can constitute trade mark infringement in the USA.
The case is 1-800 Contacts, Inc. v. Lens.com, Inc., 2013 WL 3665627 (10th Cir. July 16, 2013).
It involved Lens.com buying ads on the keyword, 1800contacts, for contact lenses.
The 10th Circuit upheld the trial judge’s exclusion of a consumer survey proferred by 1-800 Contacts to establish confusion. There were a number of reasons for its rejection including its flawed methodology. The 10th Circuit went on to conclude that the approximately 7% confusion shown by the survey would be insufficient to rise to trade mark infringement under US law. Accepting that each case depended on its own facts, the 10th Circuit endorsed the general proposition that:
The great weight of authority appears to be that “[w]hen the percentage results of a confusion survey dip below 10%, they can become evidence which will indicate that confusion is not likely.” 6 McCarthy § 32:189 at 32-440 (emphasis added by 10th Circuit).
One wonders whether an Australian court, which must ascertain whether a [substantial][OR a significant] number of the relevant audience might be caused to wonder, would be so robust as to conclude that 5% or 7% of the market was not a substantial (or significant) number?
Professors Goldman and Tushnet identify a range of reasons to regret the 10th Circuit’s decision not to drive a stake through the heart of initial interest confusion. Prof. Goldman does speculate, in particular, whether measuring “click-throughs” as a proxy for confusion could ever cross the 10% threshold.