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State Representative Joyce Peppin
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7806
For more information contact: House GOP Communications 651-296-5520
NEWS RELEASE
Rep. Joyce Peppin Introduces Small Business Protection Act
St. Paul – (April 5, 2012) – State Representative Joyce Peppin (R-Rogers) today introduced House File 2996, the Small Business Trademark Protection Act. The bill seeks to provide an alternative settlement process for trademark disputes between large and small companies that are claiming rights to the same or similar trademarks.
Currently, small businesses have little ability to fight an expensive legal battle if a large and well-known corporation sends a cease and desist letter demanding that the smaller company stop using a trademark similar to that of the larger company’s trademark. Due to the excessive cost of waging a legal battle, small business owners usually capitulate and stop using their trademarks, even if they have been marketing their company trademark for years. The financial impact can be devastating to a small business owner trying to build market share.
House File 2996 would allow small businesses to bring legal action to a state court -- the Office of Administrative Hearings -- at a much lower cost. If the larger company refuses to participate in the settlement conference, an Administrative Law Judge could issue an order recommending the Secretary of State revoke that company’s license to conduct business in Minnesota.
“There are already so many obstacles and costs associated with starting a small business and making it profitable,” Representative Peppin explained. “Leveling the playing field so that small businesses can defend themselves in frivolous and expensive trademark disputes is one thing we can do to help small businesses thrive in Minnesota.”
Peppin said she expects that small business owners and individuals interested in trademark protection will support the bill. "I fully support the Small Business Trademark Protection Act," said Professor Kenneth Port, Director of William Mitchell College of Law's Intellectual Property Institute. "This legislation is necessary because by closely analyzing all 2,700 trademark cases since the inception of the Lanham Act in 1947, I have come to the conclusion that trademark bullying is happening in the United States and it is suppressing development. Only 1.5% of all trademark cases filed reach a trial on the merits. That is largely because small companies can't afford to fight the case in a court of law. This legislation will address that inequity."
The Small Business Trademark Protection Act was also introduced today in the Minnesota Senate as Senate File 2598. Senate File 2598 is sponsored by Senator Geoff Michel. If the bill doesn't pass this session, the authors plan to work on the bill during the interim and re-introduce it next session.
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Representative Peppin encourages constituents to contact her with questions or opinions on any state legislative issue. She may be reached at rep.joyce.peppin@house.mn or 651.296.7806. Mail should be sent to Rep. Joyce Peppin, 503 State Office Building, 100 Martin Luther King Jr. Blvd., St. Paul, MN 55155.
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