The U.S. 2nd Circuit Court of Appeals ruled that U.K.-based Virgin Group Ltd.’s trademark covers its wireless phone service, and the company can seek an order to stop U.S.-based Virgin Wireless from selling phones at mall kiosks and stores.
The appeals court ruling overturned a U.S. District Court ruling that found Virgin Group’s trademark registration did not cover wireless phones, and Virgin Group failed to show a likelihood of consumer confusion.
“[Virgin Group] is entitled to a broad scope of protection precisely because the use of the mark by others in connection with stores selling reasonably closely related merchandise would inevitably have a high likelihood of causing consumer confusion,” the court said in its ruling.
Virgin Group offers prepaid youth-oriented wireless services in the United States through its Virgin Mobile USA L.L.C. mobile virtual network operator joint venture with Sprint Corp. Virgin Wireless is a wireless service retailer.
