Step aside, Hollywood – trademark protection is the real
star! This week’s BL Business Branding Newsletter tackles a new
lawsuit filed by tech industry leader Apple Inc. against a growing
movie theater chain it claims is taking a bite out of its
well-protected brand identity.
At the start of August, tech and streaming giant Apple Inc.
filed a lawsuit in Massachusetts against a growing network of Apple
Cinemas movie theaters (and their parent company, Sand Media Corp,
Inc.), claiming they are deliberately infringing on Apple’s
trademarks and misleading consumers into believing the theater
chain is affiliated with the massive Apple brand.
Apple is no stranger to the movie and entertainment market,
growing from creating video editing software in the 1990s, to
supporting downloadable video content on iTunes, all the way to
producing original streaming movies and shows on APPLE TV+ in 2019.
As Apple has grown its entertainment empire, it has maintained an
active list of trademarks, making it one of the most recognizable
brands in the world today.
Until recently, Apple Cinemas was a limited movie theater chain
that began in 2013 and operated primarily in the Northeastern U.S..
The small scale of the theater and its geographic limitations are
likely how the chain avoided running afoul of Apple’s trademark
defense until last year.
Now, it is reportedly looking to expand, aiming for 100
locations nationwide over the next decade as it looks to become one
of the largest theater chains in the country. Just this week, Apple
Cinemas announced a deal with IMAX to add five premium screens over
the next two years. As part of these expansion efforts, Apple
Cinemas attempted to trademark its name in early 2024. The
application was denied by the USPTO in October 2024, which
unsurprisingly cited a “likelihood of confusion” with
several of Apple’s existing trademarks as the basis for the
application’s suspension. Apple then sent a cease-and-desist
letter to Apple Cinemas, which Apple claims was entirely
ignored.
Apple Cinema has nevertheless opened several new locations this
year, including one in the San Francisco Bay area, right in
Apple’s backyard. According to the lawsuit, Apple believes this
was no coincidence, alleging that Apple Cinemas has deliberately
targeted theater locations that intersect with Apple’s key
places of business, increasing the likelihood that consumers will
think the two companies are connected.
Apple claims that Apple Cinemas is attempting to profit off the
brand recognition and consumer trust the tech company has carefully
curated over the past few decades. It has asked the court to
prevent Apple Cinemas from using the “Apple” name, along
with requesting monetary damages. Apple Cinemas has not yet
responded to the lawsuit.
What Can Businesses Learn From This?
From Apple’s perspective, this lawsuit is a strong defensive
move to protect the image and strength of its brand and trademark.
This is far from the first case we’ve discussed where a
likelihood of confusion has come into play when attempting to
enforce a trademark infringement action. However, Apple’s
lawsuit deliberately includes actual examples of consumers being
confused about the relationship between the two companies
throughout the complaint. By featuring screenshots and quotes of
real consumers, rather than making unsubstantiated claims, Apple is
laying a strong foundation for its accusation that it is being
harmed by Apple Cinema’s actions. Maintaining strong records
and tracking the impact that potentially infringing actions have on
your business can help support your claim if and when the need to
file a lawsuit arises.
From Apple Cinema’s perspective, this issue was completely
avoidable. Despite being in operation since 2013, the company did
not file for a trademark until 2024 – 11 years after it
opened its doors and had already cooked up new plans to expand. Now
that the trademark was refused, after it’s plans to scale are
already in motion, the theater chain is in a tough spot, and is now
facing a lawsuit from one of the most powerful companies on
earth.
Had a trademark application for the same name been filed closer
to the business’s inception, even though it would likely have
still been denied for the same reasons, the company would have had
more time to pivot and possibly rebrand before beginning plans to
expand without any trademark protections in place. Securing timely
intellectual property protections for your business’s name is
extremely important and should not be left to the last minute
– it should be one of the foundational pieces of your
intellectual property portfolio. Otherwise, you could face a
potential rebranding crisis in the middle of your growth.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.