James Douglas, the founder of OBX-Stock, Inc., cleverly
invented "OBX" as an abbreviation for the "Outer Banks" of
North Carolina. OBX-Stock began using the letters OBX on
oval stickers for automobiles to indicate that the automobile
was from or had visited the Outer Banks. The letters were also
attached to souvenirs and other sundries to indicate that they
were sold at the Outer Banks.
OBX-Stock has been successful in making money selling
products with the OBX letters affixed to them, and it obtained
trademark registrations from the Patent and Trademark Office
for "OBX" for use in connection with a range of goods and
services. Nonetheless, today, virtually every kind of business advertising at the Outer Banks identifies the Outer Banks geographical
area with the "OBX" abbreviation.
When Bicast, Inc., began selling stickers with the text "OB
Xtreme," OBX-Stock commenced this trademark infringement
action, requesting an injunction prohibiting the defendant
from using "OB Xtreme" and demanding damages. The
district court granted summary judgment in favor of Bicast,
finding that "OBX" was either generic or a descriptive mark
without secondary meaning and therefore was not a valid
trademark, but the court declined to order cancellation of the
trademark registrations. We affirm.
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