5th Circuit Upholds Viacom Ruling in SpongeBob SquarePants Trademark Fight

Specific elements in a TV show, other than the title, can receive trademark protection, the 5th U.S. Circuit Court of Appeals said in a docket 17-20334 opinion Tuesday, upholding a lower court decision in a trademark infringement case by Viacom against a company wanting to open a chain of Krusty Krab seafood eateries. Judges Thomas Reavley, Jerry Smith and Priscilla Owen, with Owen penning the decision, said Viacom hadn't registered the Krusty Krab trademark when appellant IJR Capital Investments did, but Viacom had a common law trademark. The Krusty Krab is the restaurant where Nickelodeon's animated character SpongeBob SquarePants works. The court pointed to 2nd Circuit and 7th Circuit decisions extending trademark protection to elements of particular franchises and said the Krusty Krab "is analogous to protected marks like [Superman's] the Daily Planet, [Dukes of Hazzard's] General Lee and Conan the Barbarian," especially because the Krusty Krab is integral to SpongeBob and there would be a strong likelihood of confusion among consumers. IJR outside counsel didn't comment Wednesday.