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Dell Accuses Psion of "Fraud" Over Netbook

Barence writes "Dell has issued court papers in the US, accusing Psion of fraudulently laying claim to the term netbook. Psion sent out warning letters late last year to PC manufacturers, retailers and bloggers alike, asking them to stop using the term netbook, which the company registered as a trademark in the late 1990s. But in a Petition for Cancellation of Psion's trademark, the PC manufacturer accuses Psion of abandoning the term and fraudulently claiming it was still in use. 'Psion is not currently offering laptop computers under the Netbook trademark,' Dell's petition claims. The petition also claims that Psion made false statements about its use of the term Netbook in a sworn declaration to the US Trademark Office."

34 of 167 comments (clear)

  1. Hooray for trademark law! by TinBromide · · Score: 4, Informative

    A trademark registration is generally regarded as prima facie evidence of a legitimate interest. However, if the mark is not used in substantial interstate commerce after a period of time, the mark can be invalidated with a successful court challenge.

    However, if they were using the mark, or intending to use the mark in a good faith effort, Dell can lose and open themselves to paying Psion's legal fees as well as a counter suit, cessation of use in commerce, and a healthy share of any profits used under that term. (i.e. i can defend a trademark on a device i'm designing even if i haven't sold a single unit).

    One final thing, IANAL, but I talk to them when I'm feeling masochistic.

    --
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    1. Re:Hooray for trademark law! by zappepcs · · Score: 2, Insightful

      Yeah, this should work out well. Just about as well as NCR's right to use 'Tower' ... sigh

      These marketing people might as well start trying to trademark things like 'desk' 'pen' or 'screen'.

      Now, if it were about the trademark "Dell NetBook" or "Dellnetbook" or something similar that would be a different matter. Netbook is just too generic and descriptive to even be given a trademark. period. Why do we keep doing this?

      We all call them Kleenex, but they are facial tissues. If someone had tried to trademark 'facial tissue' we would be in the same ballpark here.

      It is sad that people argue over such things, even more sad that they have the money to waste arguing over it.

    2. Re:Hooray for trademark law! by TinBromide · · Score: 2, Interesting

      Netbook is a sufficiently unique way to describe a "IC 009. US 021 023 026 036 038. G & S: LAPTOP COMPUTERS" Source, if the link evaporates, search TESS for Netbook, its serial number 75215401

      Well, its as unique as iPhone or powerbook. And back then, in 1996, (November 6, 1996 to be exact), I remember notebook computers browsing the net, but not a notebook designed for internet connectivity as its primary purpose.

      --
      Is it sad that I am more likely to recognize you and your posts by your sig than your name or UID?
    3. Re:Hooray for trademark law! by erroneus · · Score: 2, Insightful

      Screw all this! Let's just call them all Kleenex!

      I sort of mean that as a joke, but at the same time, the word "NetBook" has become so commonly used that it doesn't actually matter if PC makers stop using the term -- PEOPLE will continue using the term. Psion already lost unless of course they are actually interested in collecting money and not using the mark. This, of course, would be bad faith...

    4. Re:Hooray for trademark law! by adamchou · · Score: 2, Insightful

      What about RollerBlade? AquaLung? I'm sure there are many more if you search hard enough. Those are two generic words combined to be unique and trademarked name. Netbook was a valid trademark name too. Whether it is today is a whole different story.

    5. Re:Hooray for trademark law! by TheLink · · Score: 3, Interesting

      But netbook was indeed a unique enough term (given the usual trademarks - just add capitalization like NetBook etc).

      Now you know why trademark owners have to go about suing or threatening to sue people who use their trademarks. If they don't, a few years later it becomes a generic term and people can claim you abandoned it.

      To me this is a borderline case. So good luck to the Judge and court :).

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    6. Re:Hooray for trademark law! by Zordak · · Score: 3, Informative

      However, if they were using the mark, or intending to use the mark in a good faith effort, Dell can lose and open themselves to paying Psion's legal fees as well as a counter suit, cessation of use in commerce, and a healthy share of any profits used under that term. (i.e. i can defend a trademark on a device i'm designing even if i haven't sold a single unit).

      Not quite correct. You can apply for the mark if you have a bona fide intent to use, but it won't issue until you use it, and once the mark is registered, you must continue to use it in all of the goods and services listed. If you file a statement of use to renew your registration, and there is even one good or service in the list for which you are not actually using the mark, your statement of use is fraudulent, and the whole mark is subject to being canceled.

      The "fraud" allegation is actually not that big a deal. It's very common to assert that in a cancellation because that's one of the ways you get the mark canceled. Also, remember that a cancellation is not a federal court proceeding. It's an administrative proceeding in the USPTO. They just cancel the mark. It's not a damages proceeding.

      IAAL, but I'm not your lawyer and I don't represent you yadda yadda.

      --

      Today's Sesame Street was brought to you by the number e.
    7. Re:Hooray for trademark law! by Zordak · · Score: 2, Informative

      Whoa, slow down sparky. Fraud in a cancellation proceeding could mean something as simple as the trademark registration lists "sale of ice cream, ice cream novelties, milkshakes, malts, frozen yogurt, frozen yogurt-based drinks, and smoothies," but when you renewed your registration, you no longer had malts on your menu. Sure, you still screwed up, but I don't think you deserve to go to Club Fed.

      Also, our "corporate masters" (i.e., companies with lots of money) account for only a fraction of trademark registrants. There are millions of registered marks, and most are owned by little mom & pop shops. And guess which ones are most likely to have "fraud" in their statements of use? Not the big guys. Their armies of lawyers make sure that doesn't happen, because their marks are really, really valuable. They're not going to risk their marks over silly stuff like this.

      --

      Today's Sesame Street was brought to you by the number e.
  2. Interesting by Rival · · Score: 4, Interesting

    This may be interesting to watch play out. On the one hand, Psion did actually use the trademark in the past, and the letters it sent could be considered a defense of trademark. On the other hand, if they intentionally falsified information, there ought to be repercussions.

    Beside those legal grounds for making a decision, the question of "buzzword-squatting" will likely come into play here. I don't know if that label necessarily applies in this case, but to the extent that Dell uses the concept in its argument, it becomes relevant.

  3. Psion is still around???!??!?!? by damn_registrars · · Score: 2, Interesting

    I used to sell the Psion Series 5 back when I worked at CompUSA. I really thought the company had gone belly-up.

    Which leaves me to wonder, how many others saw the article and thought for sure that Psion was already no longer?

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
    1. Re:Psion is still around???!??!?!? by hhedeshian · · Score: 4, Funny

      Hmmm... And I thought their cars looked pretty bad. I can't imagine what a milk-carton-on-its-side shaped netbook with customizable accessories would look like.

    2. Re:Psion is still around???!??!?!? by Hal_Porter · · Score: 4, Interesting

      Hmm I found this

      http://www.mtpt.co.uk/2008/12/a-netbook-by-any-other-name-or-how-psion-is-going-discover-you-have-to-use-it-or-lose-it.html

      It was reported earlier this week that lawyers acting for Psion were writing out to those using the term "netbook" to describe mini-laptops optimised for web/internet use. They were politely - indeed curiously politely - inviting people to 'transition' to using another name.

      Transition? Politely? Since when do commercial IP lawyers behave like that?

      [Declaration of interest: I'm a commercial lawyer, and IP, especially trademark law, is a significant part of what I do.]

      There's something going on here which could prove very interesting if Psion proceeds to do anything silly. Like actually trying to enforce the rights they're asserting.

      Some basics (skip this if you're familiar with trademark law):

      A trademark is sign (normally but not exclusively words or images) which indicate the origin of goods or services.

      In general (and specifically in the EU) they acquire protection in one of two ways; by being used - acquiring reputation and goodwill, i.e. people knowing the trademark and there being sufficient economic activity associated with it - or by being registered with the state.

      An unregistered trademark has to be used to come into existance. A registered trademark doesn't have to be used, but if it is ever unused for a continuous period of five years it can be revoked for non-use.

      Generally, trademarks give the owner a exclusive right to use the trademark for specific goods, and a right to prevent people using similar marks for the same goods or the same mark for similar goods.

      The goods and services for trademarks are classified into one of 45 classes. Class 9, for example, covers electronic equipment and includes computers.

      Way back when, when laptops were expensive, slow, and heavy, Psion was knocking out a successful range of palmtops. In the late nineties they obtained trademark registrations for the word NETBOOK covering electronics and printed goods, and used the brand for a device called the Psion Netbook (more familiar in it's consumer version, the Psion 7).

      Several years ago - as they generally moved to an enterprise focus - they stopped producing the Psion Netbook, and Psion's lawyers now admit that these days all they do in connection with that product is produce accessories for extant equipment.

      Psion still has valid trademark registrations. In the EU, for example, Community Trademark 428050 for the mark NETBOOK, covering a variety of electronic equipment and printed materials, is still in full force, was last renewed by Psion in December 2006, and will stay in force until 2016.

      Unless, that is, it gets cancelled.

      Anyone can apply to cancel a registered trademark on grounds of non-use, but as they'll only succeed if they can demonstrate that the mark hasn't been used for specific goods for 5 years.

      Tantalisingly, Psion's own website admits that the "end of life" was in November 2003.

      Game over? Maybe. Whilst the same document states that the last maintenance coverage from Psion will not be until 31 December 2008, maintenance services are not goods in Class 9. Psion might be able to argue their maintenance services were branded as "Netbook", or involved the supply of parts under the mark NETBOOK but from my experience of IT service provision I'd be surprised if that was the case.

      So the tm is on the borderline of being considered abandoned. Hence the lawsuit presumably.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  4. meh by indi0144 · · Score: 2, Insightful

    meh, everyone and the dog use the term netbook referring to small laptops. once is in the public domain manufacturers can call it pre-laptop chiqui-laptop pico-laptop pixie-laptop and still when someone goes into the store he will be asking for netbooks.

  5. Miniature timeline by phantomfive · · Score: 5, Informative

    1989 - First known use of the word 'netbook' (registered trademark by Asymetrix corp)
    1991 - Trademark abandoned by Asymetrix
    1996 - Psion applies to the USPTO for the trademark for netbook
    1999 - First reference I can find to a Psion netbook
    2003 - Netbook Pro is released (doesn't seem to be for sale anymore, it was a 'clamshell PDA')
    2008 - Claimed genericization of the term netbook by Asus and others.
    December 2008 - Psion sends cease and desist letters to a bunch of companies
    Now - Dell retaliates, files court papers claiming that Psion is not planning on producing a product called a netbook (which is probably true, it's not really their target market, but they seem to like expanding so who knows).

    The fact that the term in and of itself is generic may not be enough, after all we have apple computer, and apples are pretty common. It does look like it could be an expensive fight, and I would be surprised if Psion decides to fight it out to the end. IANAL

    --
    Qxe4
    1. Re:Miniature timeline by icannotthinkofaname · · Score: 3, Insightful

      Wow. That timeline just makes this whole thing completely retarded. Asymetrix abandoned it in much less time than it took for Psion to hand out these letters. And when Psion wasn't even the first company to take this word, I wouldn't expect a reasonable person to see any sort of strength in these letters (IANAL, but I did do a law intro course in high school).

      The term "netbook" hasn't been associated with Psion for as long as I can remember. I first heard the term "netbook" when it became an accepted generic term for halfway between a laptop and a thin client a few years back.

      People seem surprised that Psion is still around, and I bet this lawsuit just runs them the rest of the way into the ground when they have to pay losing legal costs.

      --
      Let q be a radix > 1. I am in ur base-q, killing 10 d00ds.
    2. Re:Miniature timeline by phantomfive · · Score: 2, Informative

      I agree, I would much prefer it if Netbook were a generic term, but on the other hand, they did actually have a product, and it was called 'Netbook.' The fact that you or I didn't hear the word until later isn't necessarily a legal defense, you have probably never heard of Gulbransen before, but if you started making piano accessories with that name, they would be annoyed.

      A more famous example would be "Apple Computer" and "Apple Records," which I don't think anyone got confused, but Apple Records had their day in court anyway.

      The point is, it would be unfair for a big company to try to steal a trademark from a small company by using it everywhere in advertising, then once all the people associate it with a certain object, to claim it has become generic. It may truly have become generic, but it wouldn't have if the larger company hadn't stolen the name........

      And personally, I don't really care. I am just as happy to call it a small underpowered laptop or whatever the term becomes. That's probably an unpopular opinion, but there are really many more important things in the world, like the difference between a hacker and a cracker for example. I like the word hacker, and it got distorted by the public. These things happen, and you have to adjust.

      --
      Qxe4
    3. Re:Miniature timeline by D4C5CE · · Score: 2, Interesting

      2003 - Netbook Pro is released (doesn't seem to be for sale anymore, it was a 'clamshell PDA')
      2008 - Claimed genericization of the term netbook by Asus and others.

      The half-a-decade without anything to continue that line in between is the saddest part of all:

      With its rock-solid system and well thought-out functionality, a Psion 5mx with built-in bluetooth (they did have working prototypes already AFAIK), an upgraded touchscreen (black&white ePaper would do), processor and memory (preventing catastrophic loss when both types of battery run out after lasting weeks) would be a great device even today.

  6. genericization by TheSHAD0W · · Score: 3, Interesting

    It's come quickly, but I think it's too late; the term "netbook" is now in common use as a generic term, which invalidates trademarks. Now excuse me, I gotta put the milk back in the fridge.

    1. Re:genericization by Xuranova · · Score: 3, Informative

      tell that to the owners of Kleenex, xerox, and Q-tip, and coke, and they'll laugh you all the way to the courtroom.

      --
      "There is no real right or wrong, just what the majority accepts at the time."
    2. Re:genericization by steelfood · · Score: 3, Insightful

      The difference is those guys vigoriously defended their trademark as soon as they saw it being misused.

      Psion sent out C&D letters only after netbook became widely used. There's a case for Psion abandoning their trademark and for the term being generic.

      Trademark isn't like patents. You can't troll a trademark. You need to nip trademark infringement in the bud, or if it becomes too widespread, you can be perceived to have abandoned it, and the term can become generic. In fact, you can protect your trademark from abandonment by acknowledging and allowing 3rd parties to use your trademark. But you'd still run the risk of it becoming generic.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
  7. Damn by hamburgler007 · · Score: 2, Funny

    Why the hell did Dell have to be the voice of reason here?

  8. What are you talking about? by adam · · Score: 5, Informative
    I get the distinct impression you are speaking for a complete lay perspective rather than from ANY experience with trademark law.

    FYI, it's generally accepted there are five different categories of trademark, each more defensible than the next. The least most defensible mark is a "descriptive" mark. Like "facial tissue." Had the Kleenex brand chosen "Facial Tissue[tm]" for their mark, they may well have lost control of the mark because generic terms cannot function as trademarks.

    We all call them Kleenex, but they are facial tissues. If someone had tried to trademark 'facial tissue' we would be in the same ballpark here.

    The most defensible mark is a fanciful one, that is a word which does not otherwise exist (Kodak, Xerox, Pepsi, etc). Afaik, Kleenex actually is the best possible name one could choose to associate with tissues, since it is entirely fanciful (and Kleenex company has done a good job associating their name with tissues). As an aside, it is possible for a diluted mark to lose its protected status (such as with Bayer's "Aspirin" analgesic).

    These marketing people might as well start trying to trademark things like 'desk' 'pen' or 'screen'.

    Netbook would probably fall under the "Suggestive" trademark category (the third most defensible category, behind Arbitrary and Fanciful). Net and Book both exist as words, but were previously not widely applied to this sort of device.

    So, in conclusion, "Netbook" is nothing like "pen" or "desk," as far as trademarks go. Neither of these examples would even be registerable, unless they were referring to something they weren't (you could make a ketchup product called "DESK" or a cell phone called "PEN").

    --
    I am Jack's complete lack of surprise.
    1. Re:What are you talking about? by servognome · · Score: 2, Interesting

      How does the similarity of 'netbook' to the generic 'notebook' enter into this?

      Wouldn't it fall in the same category as 'iBook', 'PowerBook', or 'MacBook'. Back when first registered it would have been a unique moniker while still associated with the notebook style form factor.

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    2. Re:What are you talking about? by XanC · · Score: 2, Informative

      I thought Bayer lost its trademark to Aspirin as part of World War I reparations.

    3. Re:What are you talking about? by Matt+Perry · · Score: 4, Informative

      As an aside, it is possible for a diluted mark to lose its protected status (such as with Bayer's "Aspirin" analgesic).

      That's a bad example. The US trademark on aspirin was given up as part of Treaty of Versailles at the end of World War I. It was never diluted in the US and remains a trademark in other parts of the world.

      --
      Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
  9. OP Does have a good question... by Zancarius · · Score: 3, Insightful

    Can you really make someone not talk about your product on a blog? Simply using the word netbook on your blog can get you in trouble?

    Some moderators must really be in a foul mood today--it seems nearly everything's being labeled as "Offtopic." I think your question is valid since most people who skimmed the posting might be compelled to wonder the same thing (and this is Slashdot, after all, so no one's going to bother reading the article, right?).

    What I'm curious about is why Psion waited so long to start sending out notices. I always thought that if a company felt it had reasonable grounds for defensibility with regards to a trademark, they wouldn't sit on their hands for months at a time. It's almost as if they were waiting to see how well netbooks performed in the market before deciding it was time to vie for a cut of the profits (probably via lawsuits). It's a conspiratorial notion, sure, but in this day and ages where patent trolling firms sit on mountains of paperwork vaguely describing some generic mechanism without any capacity for manufacturing the product on their own, sue others who "infringe," and then make their profits from settlements or royalties... it's not too far fetched!

    --
    He who has no .plan has small finger. ~ Confucius on UNIX
  10. TARR links persist by tepples · · Score: 4, Informative

    Source, if the link evaporates, search TESS for Netbook, its serial number 75215401

    PROTIP: TESS links expire, but each TESS result has a persistent link under the "TARR Status" button. See TARR: Serial #75215401

  11. Save the Netbooks grassroots campaign by savethenetbooks · · Score: 2, Interesting

    It's unfortunate the Save the Netbooks campaign was not credited in the summary (nor many of the resulting articles) for uncovering Dell's petition to cancel (note that the linked document is in our account), even if only because we have the most complete collection of information and research on the topic.

    We've been working hard over the last days to overturn Psion's trademark and it was actually in the course of filing the petition to cancel that we discovered Dell had beaten us to it by a day! We're happy they're playing the white knight this time (after last year's "cloud computing" claim), and especially for their having added the "fraud" angle to our pleadings for abandonment and genericness.

    Anyway we wish them the best of luck, even though we don't think they'll need it.

    Save the Netbooks

  12. Psion Should Sell More Stuff by bricktower · · Score: 2, Insightful

    Psion, for over a decade, sold cool PDAs that were well ahead of their time and very useful. Then Windows CE came along, Psion ran away and Windows CE almost totally abandoned the keyboarded PDA concept. That's why we've had a five year gap, followed by a line of machines that badly implement the concept with X86 processors and XP or Linux. It's good Psion have noticed this. But they have done the wrong thing. Notable examples of Psion wonderfullness: AA battery compatibility, programming language on-board, basic office suite, communications support. Given this was in 1990 - that's cool. And it was all in a package half the size of a book. Now we have 'netbooks' that are just small laptops...

  13. Netbook vs Sub-notebook by Fri13 · · Score: 2

    I hear more than usually, netbooks referred to "minilaptops". I try to use "netbook" if needed officially, but the "minilaptop" does sound nicer.

    And when I searched littlebit around Internet, I found that there has always be a computer class called "Sub-notebook". And that is class where actually the "netbook" goes. You can find computers from toshiba and others, from 90's what are smaller than current netbooks sold, but ain't called netbooks but sub-notebooks. And they run Windows 95 or Windows 98 (newer models) easily.

    So what happend when I first saw the Asus EeePC, that it is just resurecting the old Class, I tought they should get better name than "netbook". And for me the sub-notebook does sound better in the techinical view and "minilaptop" in daily talk.

  14. Psion built and trademarked the 1st Netbook by Qbertino · · Score: 3, Interesting

    While the trademark is older, it is cleary the Psion Netbook that implemented the actuall concept. And implemented it very well actually - Psion Netbooks have/had a lightweight OS (Epoc for Netbook) a custom browser and a own Java 1.1 implementation back when Java was really new. The enclosure and the keyboard are to date unmatched. Their battery uptime was around 40 hrs.
    The pure and simple fact is this: Psion concepted, built and trademarked the first Netbook. Period.

    That aside, I find this lawsuit totally silly, it will probably fail. And rightfully so. They should simply build an upgrade of the original Netbook in the very same enclosure with the very same keyboard, put Xubuntu on it and center their marketing around how they built the first Netbook in 1999 and how the concept has become so popular. Tagline "The inventors of the Netbook present: The Netbook 2.0" or something of the sorts. They would get huge press and attention. And the Psion Netbook really does deserve a redo.

    --
    We suffer more in our imagination than in reality. - Seneca
    1. Re:Psion built and trademarked the 1st Netbook by hattig · · Score: 2, Informative

      Yes, I found reviews of the Netbook Pro 4 years old, and even Ars Technica's Jon Stokes was talking about them *as new products* in September 2005.

      The only claim that any of these people have is that it is a generic term, and to be honest it isn't (most people won't know what one is), and there's plenty of time to stop it being generic if companies that currently use 'netbook' desist from using that term. The fact that some companies used "mininote", etc, shows that they were aware of the trademarked term, or that 'netbook' wasn't a common term even a year ago.

    2. Re:Psion built and trademarked the 1st Netbook by BasilBrush · · Score: 2, Informative

      I actually had a Psion Netbook at work. There was only one thing "Netbook" meant at that time and that was it. The smallest laptops at the time were called notebooks. There was no generic "netbook".

  15. it was actually diluted in the U.S., in addition by Trepidity · · Score: 2, Informative

    After World War I, the Bayer trademarks in the U.S. were reincarnated in a new company, confusingly also called Bayer, owned by the American firm Sterling Drug. They attempted to enforce the trademarks, but a 1921 court ruling invalidated the "aspirin" mark on grounds that it had come to be used as a generic term for the class of drugs for too long to be recaptured.