BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1484
                                                                  Page  1

          Date of Hearing:   May 9, 2007

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                  AB 1484 (Krekorian) - As Amended:  April 16, 2007 

          Policy Committee:                               
          JudiciaryVote:10-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill repeals the existing trademark law and enacts the  
          Model State Trademark Law, as drafted by the International  
          Trademark Association and adopted by 30 other states.  
          Specifically, this bill:

          1)Expands the information required to be provided to the  
            Secretary of State (SOS) with an application for registration  
            to include, among other things, a drawing of the mark and  
            three specimens of that mark as it is actually used.   
            Applications must be signed and verified under penalty of  
            perjury. 

          2)Expands the grounds upon which the SOS shall cancel a  
            registration and specifies procedures for actions to compel  
            registration or cancel a registration.

          3)Implements a number of changes designed to bring California  
            law into greater conformity with federal law and recent  
            develops in trademark case law, including: 

             a)   Reducing the duration of state trademark registrations  
               from 10 years to 5 years, and providing that renewal  
               periods for registrations shall similarly be reduced from  
               10 years to 5 years.

             b)   Providing that state registration may be cancelled  
               because a mark has become "generic," and defining that  
               term.

             c)   Permitting the SOS to require a trademark applicant to  








                                                                  AB 1484
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               state whether it previously sought to register the mark  
               with the U.S. Patent and Trademark Office and, if  
               registration was refused, to disclose why.

           FISCAL EFFECT  

          The SOS will incur minor absorbable costs and a minor revenue  
          increase due to changing the renewable period from 10 years to 5  
          years.

           COMMENTS  

           Background and Purpose  . A "trademark" or "service mark," for  
          goods and services respectively, may consist of any word, name,  
          symbol, or device, or any combination thereof, that is adopted  
          and used by a person to identify the goods or services  
          manufactured or provided by that person. Most importantly, the  
          trademark or service mark is used to distinguish those goods or  
          services from goods or services manufactured or provided by  
          others. 

          California's existing trademark law was first adopted in 1941.  
          In 1967, it was repealed and replaced with one based on the  
          Model State Trademark Bill (MSTB), which was drafted by the  
          INTA. Since that time, the INTA has issued major revisions of  
          the bill in 1992 and again in 1996 in order to codify important  
          developments in trademark case law and adapt to ever changing  
          business conditions and practices. AB 1484 repeals California's  
          existing trademark law and replace it one based on the 1996 INTA  
          model bill. This will bring California into alignment with  
          federal trademark law and the 30 other states that have adopted  
          the Model Trademark Law.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081