I feel like I'm in a constant state of 'motion to compel' more sleep.

✨ Enjoy an ad-free experience with LSD+

Legal Definitions - functional discount

LSDefine

Definition of functional discount

In trademark law, a functional feature refers to a design element or attribute of a product that is essential to its use, operation, or cost-effective manufacturing. This means the feature provides a practical benefit or is necessary for the product to work properly and efficiently, rather than serving purely as a decorative element to identify a brand.

Because functional features are necessary for a product's utility or commercial viability, they generally cannot be protected by a trademark. Trademark law aims to prevent consumer confusion about the source of goods by protecting distinctive brand identifiers. Allowing a company to trademark a functional feature would unfairly prevent competitors from making products that work as well or are as easy to manufacture, thereby hindering competition and innovation.

Here are some examples to illustrate what constitutes a functional feature:

  • The specific tread pattern on a car tire: While different tire manufacturers have unique designs, the fundamental arrangement of grooves, sipes, and blocks on a tire's surface is primarily engineered to provide traction, channel water away, and ensure safe handling. These patterns are essential for the tire's proper and successful operation on various road conditions. Therefore, the core functional aspects of a tire's tread pattern are considered functional features and cannot be trademarked by a single company, as it would prevent competitors from designing effective and safe tires.

  • The standard screw-top design of a plastic water bottle: The threaded neck and corresponding cap design on most plastic beverage bottles are physically necessary to create an airtight seal, prevent leaks, and allow for easy opening and re-sealing. This design is also commercially necessary for compatibility with standard bottling equipment and caps across the industry. Because this design is essential for the bottle's primary function (containing liquid securely) and efficient manufacturing, it is a functional feature and cannot be trademarked.

  • The ergonomic grip shape of a power tool: Many power tools, such as drills or saws, feature handles molded to fit the human hand comfortably and securely. This specific contouring is designed to reduce user fatigue, improve control, and enhance safety during operation. The shape is utilitarian, directly contributing to the tool's proper and successful use. While a company might have a distinctive color or logo on the grip, the underlying ergonomic shape that provides a functional benefit is considered a functional feature and cannot be exclusively trademarked, as it would prevent other manufacturers from designing comfortable and effective tools.

Simple Definition

A functional discount is a price reduction offered by a seller to a buyer based on the buyer's role or the specific functions they perform within the distribution chain. This discount compensates the buyer for undertaking services, such as warehousing or distribution, that the seller would otherwise have to provide.

It is better to risk saving a guilty man than to condemn an innocent one.

✨ Enjoy an ad-free experience with LSD+