The cartoon TV series SpongeBob Squarepants emerged victorious against a legal battle with a Texas company that applied for the name "Krusty Krab" to be trademarked in accordance to its plan of opening a restaurant under the said name.
The company behind "SpongeBob Squarepants'' animated series, Viacom has learned that in November 2015, Texas company IJR Capital Investments had filed to trademark the "Krusty Krab" for its supposed restaurant. However, a federal court ruling in a case which involves "SpongeBob Squarepants" indicates that a fictional business does not need to be trademarked just to gain from trademark protection.
Viacom disputes that although it didn't register a separate trademark for Krusty Krab, the name was so tightly connected with the "SpongeBob" brand that it has been used many times in officially licensed toys, clothes, merchandise as well as the book "Jokes from the Krusty Krab". In addition, Viacom had progressively registered the "Krabby Patties" trademark, which is a fictional restaurant's trademark dish.
Consumerist reported that this week, Judge Gray Miller of the U.S. District Court favored Viacom, acknowledging summary judgment in favor of the cartoon company, documenting that "ownership of a mark is established by use in the market, not by registration."
In short, because Viacom originally used "Krusty Krab" for commercial purposes, the media company has the right to prevent others from making use of the said term. Besides, Viacom's use of the term was so distinguishing as to honor trademark protection.
According to World Intellectual Property Review, before Viacom filed a complaint against IJR, they sent a cease-and-desist letter to the company in 2015 requesting to change the supposed name of the restaurant. Aside from that, the media business company also asked them to cease from using any of the Spongebob marks and revoke its pending trademark application.
Viacom appealed nine trademark violation claims against IJR Capital Investments which plans to put up a restaurant under the name "Krusty Krab". Judge Miller favored Viacom stating that the mark could cause confusion among consumers and ruled that IJR copied the "Krusty Krab" mark.
"Krusty Krab" is a restaurant in the cartoon series "Spongebob Squarepants" owned by Eugene H. Krabs. It is the place where Spongebob and Squidward work as crews.
