NATIONAL OFFICES: 461 FROM ROAD, PARAMUS, NJ 07652-3524 (201) 599-7880 - Phone (201) 262-9097 - Fax VIA DHL EXPRESS April 24, 1995 Mr. Miles O'Neil Johnson Road Austin, TX 78641 Re: ROADKILLS-R-US File No. TI95-082 Dear Mr. O'Neil: It has come to our attention that you are using the designation ROADKILLS-R-US in advertising as a slogan in connection with your goods and services. Your use of this term is likely to cause confusion with respect to our marks and, in addition, constitutes a dilution with respect to our marks under the laws of your state. We are the owner of numerous federal trademark registrations including TOYS "R" US, KIDS "R" US, PORTRAITS "R" US, and COMPUTERS "R" US, as well as a number of common law marks including SPORTS "R" US. CONSEQUENTLY, WE MUST ASK THAT YOU IMMEDIATELY DISCONTINUE YOUR USE OF ROADKILLS-R-US. Enclosed are copies of some of our federal registrations. Toys "R" Us, Inc. is engaged in the sale of a vast spectrum of items under a family of trademarks and service marks, all of which include the prominent and distinctive display of "R US". The fact that there are no other "R US" or "ARE US" marks on the Federal Register speaks for itself on the issue of Toys "R" Us, success in thwarting infringements of its marks. I am attaching a list of just some of the legal proceedings in the United States, and if reported, the citations to cases in which settlement was reached or judgments were rendered in favor of Toys "R" Us. In all cases, use of the marks which were objected to by Toys "R" Us were discontinued. Please be advised that in a number of different actions that we have instituted to protect our rights, the Court has consistently held that the dominant portion of our mark is the designation "R US". Accordingly, it has been held that marks such as BAGS "R" US, KIDS "R" US, LAMPS "R" US, PHONES-R-US, etc. have been considered to be an infringement of our marks. In addition, the United States District Court for the Central District of California held in Geoffrey, Inc. v. Douglas S. Stratton d/b/a PHONES-R-US, 16 U.S.P.Q.2d 1691 (C.D.Cal.1990) affld 951 F.2d 359 (9th Cir. 1991), _cert._denied_ U.S. #I 113 S. Ct. 153, 121 L.Ed.2d 103, _reh'g_denied_ U.S. _, 113 S. Ct. 679, 121 L.Ed.2d 601 (1992), that the "R US" marks were coined by and are exclusively associated with our company and that our company has a family of "`R' US" marks. As a result of our extensive promotion and use of the "R US" designation, it is associated with our company. For example, our goods and services have been associated with amusement park services, car service stations and credit card services. Thus, consumers would be likely to believe that TOYS "R" US endorsed, if not licensed, your business. Over the years, we have built significant good will in our "R US" marks through their use on thousands of items which we sell throughout our 618 TOYS "R" US stores and 209 KIDS "R" US stores nationwide. When a customer enters one of our TOYS "R" US or KIDS "R" US stores, they expect to find the finest in service and merchandise. You can therefore imagine what problems we would encounter if we were to allow an individual or entity to run a business utilizing the name ROADKILLS-R-US over which we would have no control as to its quality. People might easily believe that we were in some way sponsoring this entity and this could adversely effect our long-standing customer good will. While we have no reason to believe that yours is anything but a quality establishment, if we were to make an exception in this case and allow you to continue to infringe upon our registered trademarks, where would we stop? How could we pick and choose between who could infringe upon our trademarks and who could not? Under the general principles of trademark law, it makes no difference whether an entity uses a forward "R", a backwards "R", an "R" in quotes, an "R" without quotes, or "ARE", since all of these designations are pronounced in the exact same manner and thus would each be considered an infringement. The reasoning behind this principle is stated by the second circuit in Grotrain, Helfferich, Schultz, etc. v Steinway & Sons, 523 F.2d 1331, 1340 (1975), "Trademarks, like small children, are not only seen but heard." Thus, an infringement occurs if the marks are visually the same, if they sound the same or if they have the same meaning. Differences in spelling or overall appearance are irrelevant in this case because the two marks are pronounced the same way. For example, when spoken, there is no difference between "R" and "ARE". In further support of this position, I enclose a copy of McCarthy, Trademarks and Unfair Competition, Section 23:4. As you consider alternative slogans for your business, we ask that you avoid such names as ROADKILLS ARE US, ROADKILLS AND US, ROADKILLS BY US, ROADKILLS N US, ROADKILLS & US, etc. All of the foregoing are colorable imitations of our marks and are thus equally unacceptable. This letter is being sent by DHL Express Mail and we request that we have their response within two (2) weeks from April 25, 1995, the date of your receipt of this letter so that we can act accordingly. Very truly yours, TOYS-"R"-US. INC. Mavis Fowler Mavis Fowler MF:jg General Attorney enclosures: (1) Trademark Registrations (2) Citation of Cases (3) McCarthy, Trademarks and Unfair Competition S:\LEGAL\INF\TI95082.SA14
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