Unit III Assignment --BL

Running head: CASE ANALYSIS 1
Unit III Assignment: Burger King Case Analysis
Name
Professor
BBA 3210-15O-2B18-S1, Business Law
26
th
/11/2017
CASE ANALYSIS 2
Burger King of Florida, Inc. v. Hoots
Case presentation
Burger King, trademarked by the Federal Trade Mark Act, is barred from operating in
Mattoon, Illinois following Gene and Betty Hoots registration of the same trademark in Illinois
State. Hoots sued the national franchise when it decided to open a restaurant in Mattoon. The
Hoots Company won the case as the national chain was banned from opening a new business
within a twenty miles radius of Mattoon. Consequently, the national franchise was restrained
from using their trademark “Burger King” in Mattoon, but allowed to use any other place 20
miles away from this region. Similarly, the Hoots had the capacity of doing business with the
same title only in the Mattoon, Illinois region.
Reasons for the Decision
The reason for the courts’ decision to ban national chain due to the conflicts arising from
the federally registered and the state law. Both parties had used the name “Burger King”
prominently, but the federal registration of the trademark is prima facie registration validity and
ownership evidence. This notion means that the national franchise had acquired both a federal
law and a common law right in the trademark superior to the Hoots in the entire Illinois except
Mattoon, where Hoots used and adopted the trademark innocently. Therefore, the jurisdiction
protected Hoots by exclusively setting Mattoon as their market since they acquired it in good
faith.
The other reason for the decision ruled by the court was to reduce public confusion
arising from Hoots and national franchise products in Illinois. To protect the federally registered
trademarks applied in the interstate commerce, the Acts policy ensures that federal law may not
CASE ANALYSIS 3
be obstructed. When the two conflicts, the state law must yield to the federal law which is
superior (Burger King of Florida, Inc. v. Hoots, 1968). Despite the Hoots’ efforts to argue that
they should be given exclusive rights over the entire Illinois to avoid customers’ confusion with
their competitor’s products, the law maintained that the national Burger King could not be
denied access to this state. The Hoots did not prove that the public was likely to face the
confusion of the products, hence the court was not persuaded by this argument (Burger King of
Florida, Inc. v. Hoots, 1968). Therefore, the court distinctively separated the geographical
location of the two businesses to reduce public confusion to a minimum. Additionally, the
sections prohibited dual registration of the mark in the state of Illinois.
The article, Crime, Law and Social Change by Goyes elaborates on the different types of
intellectual property rights and their importance in the protection of innovation. Goyes (2016)
points out that protects the expression of the creative ideas. The author notes that copyrights
protect original ideas and compositions which further encourages creativity. However, under the
doctrine of the fair use, a portion of copyrighted work can be used for purposes such as
comments, teaching, news reporting, and criticism. The protection of an intrastate trademark is
done under the common law (Goyes, 2016; Kubasek et al., 2017). Registration of the trademark
at federal level gives more exclusive rights over the state registered marks. Consequently, the
article relates to the Burger King v. Hoots case where the federal registration was considered
superior to the state rule.
Significance of the case
Burger King of Florida, Inc. v. Hoots case clarifies the importance of the Trademark
registration, particularly the Federal Trademark registration. Trademarks, copyrights, patents,
trade secrets and other intellectual property should be regarded as an investment. A federal
CASE ANALYSIS 4
registration is superior and thus more powerful as compared to the state registration. For
instance, the state registration only extended to the geographical location where Hoots operated
in good faith. However, if Hoots had federally registered the trademark, then such limitation
would not occur. More so, if Hoots had acquired the federal registration prior Burger King
franchise, they would be positioned at a stronger bargaining power covering vast areas.
CASE ANALYSIS 5
References
Burger King of Florida, Inc. v. Hoots, 403 F.2d 904 (7th Cir. 1968).
Goyes, D. R., (2017). Crime, Law and Social Change; Dordrecht. Springer Science & Business
Media, Dordrecht. Retrieved from
http://dx.doi.org.libraryresources.columbiasouthern.edu
Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2016).
Dynamic business law: The essentials (3rd ed.). NY: McGraw-Hill Education.

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