Old Scottsdale Sign by kmaschke from Flickr

Whenever I ask my friends where I should take my quasi-foodie parents when they visit, one of the most common answers I get is FnB. This little restaurant in Scottsdale has won a bunch of awards and gotten a lot of good press since it opened three years ago, including a mention in Food & Wine magazine. The owners Charleen Badman and Pavle Milic recently announced that they’re moving FnB to a new location at the beginning of 2013. Shortly after that, FnB’s soon-to-be former landlord, Peter Kasperski, announced he wanted to keep the name “FnB.”

According to Phoenix New Times, he came up with the name and he likes it, but does that give him ownership rights in the name?

Probably not.

A trademark is the mark used with a product or service that distinguishes it from its competition and informs consumers about the source and quality of what they’re buying. In regards to a restaurant, a mark could be the name, the way the restaurant is decorated (trade dress), logos, and/or slogans. When you have a trademark, you have the exclusive right to use it on your products or services in your established market. If your register your company’s trademark with the U.S. Patent and Trademark Office, you get the exclusive right to use your mark on your products and services nationwide. No one can start a business or create a similar product with a mark that is similar to yours.

Unfortunately, no one has registered “FnB” with the USPTO for use with a restaurant. If Badman and Milic did that, they would have exclusive control over who could open an FnB restaurant anywhere in the U.S.

All is not lost in this story. If Badman and Milic can argue that they are known nationwide, they can make the argument that their established market is the entire country so no one can call their restaurant “FnB” without their consent. There was a case in 1948 about a fancy New York restaurant called “The Stork Club.” They had spent thousands of dollars in nationwide advertising and had been featured in news articles in newspapers throughout the country. They were able to force a small tavern in San Francisco called “Stork Club” to change its name because they made the argument that consumers might think the tavern was affiliated with the restaurant, which could hurt the restaurant’s reputation.

What about Kasperski’s statement that he thought of the name? Trademark rights come from using the mark in commerce. From what I can tell, he’s leased property to a company that used the name. If he didn’t use it himself, he has no trademark rights in the name.

According to Phoenix New Times, Kasperski claims he’s partners with Badman and Milic. I looked up Badman and Milic’s LLC and he’s not listed as an owner, so I’ve seen no evidence that supports that claim.

Kasperski also said Badman and Milic will be successful without the FnB name. Given their success so far, that is probably true; however, that doesn’t change their rights in their business’ name. They were the ones who used the name in their business and build a stellar reputation. Unless there are contracts that explicit give Kasperski rights in the FnB name, I foresee him struggling to make a valid claim in the trademark rights.

The take away lesson: If you want to avoid problems like this, talk with an intellectual property attorney about registering your trademark with the USPTO.

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