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Legal Definitions - concurrent covenant

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Definition of concurrent covenant

Concurrent Registration

In trademark law, Concurrent Registration refers to a specific and somewhat unusual situation where the U.S. Patent and Trademark Office (USPTO) permits two or more different businesses to register and legally use the same or very similar trademarks. This is typically allowed only when:

  • Each business independently started using the mark commercially in good faithbefore any of them applied for federal registration.
  • The USPTO determines that, despite the similar marks, there is a very low likelihood that consumers will be confused about which business is the source of the goods or services.

To ensure consumer clarity and prevent any potential confusion, the USPTO often imposes specific limitations on how each business can use its mark. These restrictions might include limiting use to certain geographic areas, particular types of goods or services, or specific sales channels.

Here are a few examples to illustrate this concept:

  • Geographic Separation: Imagine "Mountain Peak Coffee," a small, independent coffee roaster that has operated exclusively in Colorado for 25 years, selling its beans locally. Separately, another independent coffee roaster, also named "Mountain Peak Coffee," has operated only in Vermont for 20 years, serving its local community. Both businesses decide to seek federal trademark registration. Because their operations are geographically distinct and have coexisted for a long time without consumer confusion, the USPTO might grant them concurrent registration, restricting each business's trademark rights to their respective states or regions. This prevents a customer in Colorado from mistakenly thinking their local "Mountain Peak Coffee" is connected to the one in Vermont.

  • Distinct Market Segments: Consider "Blue Sky Innovations," a company that has historically provided software development services to small businesses in the Midwest. At the same time, another company, also named "Blue Sky Innovations," has been manufacturing and selling specialized drones for agricultural use on the West Coast. Both apply for federal trademark registration. Given their long-standing, separate operations in completely different industries and customer bases, the USPTO might allow concurrent registration. They could impose restrictions, such as limiting the first company to "software development services" and the second to "agricultural drones," to prevent any confusion among consumers who would not expect a software company to sell drones, or vice-versa.

  • Limited Product Lines: Suppose "Golden Harvest" is a small, family-owned business that has been making and selling artisanal jams and preserves at farmers' markets in the Pacific Northwest for 15 years. Independently, another small business, also named "Golden Harvest," has been selling organic flour and baking mixes online for 10 years, primarily to home bakers. Both decide to seek federal trademark registration. The USPTO could grant concurrent registration, specifying that one "Golden Harvest" is for "jams and preserves" and the other is for "flour and baking mixes." This is because their products, while both food items, are distinct enough that a consumer looking for jam is unlikely to be confused by a company selling flour, especially if their marketing and customer bases are also different.

Simple Definition

A concurrent covenant is a type of promise or agreement within a contract where the performance of one party's obligation is due at the same time as the other party's. Neither party is required to perform their promise until the other is ready and willing to perform theirs simultaneously.

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