EMPLOYERS: MAKE WORKPLACE SAFETY A PRIORITY

Innovation is a constant in the business world. The events of this past couple years has pushed businesses to strategize and innovate to continue to serve consumers and earn a profit. However, in some cases the innovation and growth of one entity or industry can put others at risk if they do not adhere to business laws. One such case came to light near the end of 2020, but it is still critical to understand the details involved. GRUBHUB CASE SHOWS RISKS BUSINESS OWNERS FACE NOWADAYS In October 2020, several restaurants across the nation filed a lawsuit against the food delivery company Grubhub. They claimed that the app listed nearly 150,000 restaurants participating in Grubhub’s delivery that had not given their permission to be listed in the app or affiliated with the company. According to CBS News, the restaurants claimed in the lawsuit that Grubhub: Violated federal laws by falsely advertising their partnership with these restaurants, in turn misleading consumers Infringed on their trademarks in using the restaurants’ names, logos and menus The restaurant owners state they did not agree to enter a partnership arrangement with Grubhub. And yet, they claim that by listing these restaurants, Grubhub unfairly profited. NEW FRONTIERS REQUIRE NEW STRATEGIES Business owners must be diligent when they face innovations like this. The Grubhub case highlights a significant challenge many businesses are facing in the current environment. It is not just restaurants dealing with these legal issues either, though they are more susceptible to it with the rise of third-party delivery apps like Grubhub. This is why California business owners must ensure they: Monitor the online presence of their business Protect their trademark rights Review their rights under state and federal laws The current environment of the business world is one that owners of companies large and small did not see coming. That is why it is all the more important for business owners to be on their guard now and with every step forward.

Back in 2021, we discussed the difference between trademark infringement and trademark dilution. Business and trademark owners know that both issues can have a considerable impact on their reputations. However, the main concern when it comes to dilution often lies in determining whether or not it is truly a dilution of a trademark or a parody. In that previous blog post, we addressed the particular case involving Jack Daniels’s trademark whiskey bottle design. This case – and the effect parodies have – remains at the center of this complex matter. ONGOING BATTLE OVER DILUTION WENT TO THE SUPREME COURT This legal battle has gone back and forth over the last few years. Some courts determined that the dog toy shaped like the well-known whiskey bottle is indeed a parody, and therefore the company that created it has First Amendment protections. However, in 2023 the Supreme Court ruled that it is not quite a parody. The Supreme Court determined that the toy reflects the trademark enough that it violates trademark protections and rules. The different opinions on this matter illustrate just how complicated it is. So, what must business owners consider? TAKE A CLOSER LOOK AT DILUTION The definition of trademark dilution is quite broad. The federal Trademark Dilution Revision Act of 2006 does not actually consider the risk of confusion or negative economic impacts – as trademark infringement does. The law defines dilution as the use of a mark that might tarnish the mark itself or the reputation tied to it. In short, this law focuses only on protecting the trademark. It is not necessary to prove that consumers may be confused when it comes to a claim of dilution. This allows businesses to protect their image. After all, a business’s public image is an important factor in gaining and maintaining consumer approval. Any mark that would sully or degrade that image the business worked hard to build could be a considerable concern and risk. DILUTION V. PARODY: A SUBJECTIVE ISSUE Of course, the law also explicitly states that parodying is not dilution. These cases are often quite subjective, as the differing opinions also indicate. This subjectivity can just as easily work in favor of businesses trying to safeguard their intellectual property, as it can against them. Protecting a trademark requires vigilance. However, it is also beneficial to obtain skilled legal counsel in order to effectively protect the brand and business in such subjective situations.

It should be simple: you provide a service, and your customer pays you for that service. Unfortunately, it is not always so simple. Not getting paid for your work can be one of the most frustrating issues, especially for small businesses. It also does not take much for money matters to lead to larger disputes. So, what should small business owners do in these cases? 1. START WITH A REMINDER NOTICE Most sources, including the U.S. Chamber of Commerce, agree that business owners should not begin by escalating the situation. Take time to review and fully understand the circumstances of this individual case. Then, begin with resending the invoice or sending reminders to pay. 2. BE OPEN TO NEGOTIATIONS After sending any reminders – and depending on the response you receive – you should then consider scheduling time for negotiations. As much as obtaining that income is important, you do not want to lose a customer or have this issue impact your business’s reputation. Moving forward with a negotiation can show you are serious about obtaining proper payment, but also understanding a customer’s situation. For example, you can arrange a meeting or a call with the customer to discuss the payment. It is not uncommon for customers and other businesses to face financial troubles, especially in today’s market. If this is the case, you could establish a payment plan that will work for both parties. 3. OBTAIN HELP If there is no response to any reminders or offers to negotiate, then you can and should explore the other options to obtain payment. This could involve working with a collections agency to recover the debt owed. However, it is also critical to speak with a knowledgeable California attorney to ensure you understand your rights, as well as the customer’s rights. 4. REVIEW YOUR PROCEDURES Small businesses new and old work hard to gain customers. You may want to protect the relationships you build with them. However, you must also protect your business. It will often help to take another look at your payment policies. Perhaps you make them stricter, to prevent the risk of non-payment issues. A business attorney can also help craft policies to secure finances and the business’s future.