US: Why do some marks fail to function as trademarks?

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cookies Settings

US: Why do some marks fail to function as trademarks?

Sponsored by

katten.png

In In re TracFone Wireless, Inc., the Trademark Trial and Appeal Board (TTAB) issued yet another decision finding that a particular designation fails to function as a mark – the subject of over 21% of precedential rulings this year. These decisions highlight the importance of brand owners, marketing teams, advertising departments and legal counsel coordinating effectively.

TracFone Wireless, Inc. (TracFone) sought registration on the Principal Register of the proposed mark "unlimited carryover" covering various telecommunication services with a claim of acquired distinctiveness, after owning a registration for the same mark on the Supplemental Register since 2010. During prosecution, however, a USPTO examiner contended that "unlimited carryover", as shown on the specimen, failed to function as a mark because it did not identify the source of the services and distinguish it from others. The examiner found that due to its manner of use, and particularly, because of its placement on the specimen, the wording was "informational and common." After the examiner maintained the refusal to register, TracFone appealed the refusal to the TTAB.

The "critical inquiry" in determining whether a designation functions as a mark is how the designation would be perceived by the relevant public. To make this determination the TTAB looks to the specimens and other evidence of record showing how the designation is actually used in the marketplace. If a designation does not operate to indicate the source or origin of goods or services, and thus fails to distinguish them from those of others, it does not meet the statutory definition of a trademark and may not be registered, regardless of claims of acquired distinctiveness. Accordingly, the TTAB examined TracFone's specimen, dictionary definitions and marketplace uses to determine whether the phrase "unlimited carryover" would be perceived as a source indicator.

On appeal, TracFone pointed out to the TTAB that it was unaware of any other telecommunications providers using "unlimited carryover" as a source identifier, and that the phrase is not a common term nor used in everyday marketing. TracFone averred that the specimen for its registration on the Supplemental Register was identical to the one at issue, arguing: "This shows that not only is [unlimited carryover] capable of serving as a service mark, it actually does function as a service mark, as it is shown on the specimen of use."

Affirming the refusal to register on the Principal Register, the TTAB deemed TracFone's arguments "circular," explaining that TracFone's registration on the Supplemental Register is more than eight years old and consumer perception of "unlimited carryover" may have changed with the passage of time. As for TracFone's specimen, the TTAB noted that the wording "unlimited carryover" was displayed last in a list of features boasting "No-Contract Plans with Talk, Text, Data and Unlimited Carryover® starting at $15," and set in the midst of "other clearly informational matter, far from the TRACFONE logo." The TTAB held that the phrase would be perceived as part of the description of services rather than as a mark designating the source of the services.

The lesson is that if a brand owner intends to invest in and display its mark to the public, input from counsel on the appearance and placement of a mark in printed materials, among other factors, can save an otherwise successful mark from failing to function as a trademark.

ash-karen-artz.jpg
jakubovic.jpg

Karen Artz Ash

Jerry Jakubovic


Katten Muchin Rosenman LLP 

575 Madison Avenue

New York, NY 10022-2585

United States

Tel: +1 212 940 8554

Fax: +1 212 940 8671

karen.ash@kattenlaw.com

www.kattenlaw.com


more from across site and SHARED ros bottom lb

More from across our site

François Pochart, Grégoire Desrousseaux and Lionel Martin, long-standing figures in the firm’s patent litigation team, are set to help launch a Paris-based litigation offering
The Unitary Patent has passed 100,000 registrations, but new data raises the question of whether 30% uptake is a ceiling or a staging post for further growth, say Michael Nielsen and Darren Smyth of EIP and Andrew Samm at Patently
The new generation of in-house IP leaders want commercial judgment, accessibility and flexibility, with AI raising expectations around both fees and delivery
The firm launched a San Diego office earlier this month, but California investment and expansion is far from complete
The industry’s response to AI requires an unfamiliar ingredient as firms battle to shape their futures
The firm is looking beyond replacing recently departed talent, betting instead on senior leaders to strengthen and expand its patent litigation platform
Olga Partington, director in Sterne Kessler’s biotechnology and chemical practice group, shares why a patent's vulnerability peaks when it is young, rather than when it is most valuable, under the PTAB's new framework
IP experts gathered in San Francisco last week to discuss the changing global SEP landscape and new licensing models for AI infrastructure
SKW Schwarz partner Daniel Kendziur explains how new green claims rules are changing his workload and bringing him into direct contact with marketing, PR and government affairs teams
The government is targeting earlier resolution of SEP disputes while ruling out a standalone IPEC rate determination track and restrictions on injunctions
Gift this article