The Battle of the Reelz® : Instagram Reels May Be In Trouble

Instagram rolled out their new video sharing reels this August, but what folks might now know is that a Minnesota broadcasting company, Hubbard’s, owns a trademark for REELZ®. Now, when you own it, you protect it. Hubbard’s has filed a federal lawsuit against Facebook and Instagram to demand they stop using the name Reels. The claims: trademark infringement, trademark dilution, and unfair competition.

Basically:

1. Trademark infringement: IG is encroaching on their trademark rights to exclusivity in the marketplace aka the reason they filed the trademark

2. Trademark dilution: IG’s use of the term Reels and infringement, dilutes the worth of the trademark because of how famous IG is and distinctiveness of REELZ® trademark

3. Unfair competition: REELZ® now has to unfairly compete with Facebook and IG and potentially having people questing which one?

As a CEO, it’s important you check that you can use that name before you launch. Facebook and Instagram may be able to foot the bill for a lawsuit like this. Can you?

Sign up for the Start-up 101: Foundations Bootcamp. Learn how to do a due diligence check for the product, service, or brand name before you launch to clear it for use. ENROLL HERE: BIT.LY/STARTUP101BOOTCAMP

Got Legal Questions?

This is a popular question and one that trademark attorneys will disagree on.

Here’s my answer:

No. You do not need to trademark your business, brand name, logo, or slogan when you register your business.

First, you are starting out and many entrepreneurs make changes and pivot from their original idea in business to see what is viable in the market.

Until you are sure that the brand, logo, slogan, or business name is the one you plan to build on, save your $200+ on trademarking.

Now, if you know that you don’t want anyone to steal your idea and you are sold on it. Trademark it. Trademarks afford you with broader protection to enforce exclusivity to the use of your trademark for the class you file in.

There are two ways to file: under Section 1(a) Use in Commerce or Section 1(b) Intent to Use.

The first, you must be actually using it in commerce (business) and the second, you intend to use it. If you file under the latter, you will have to pay more fees and file additional paperwork.

So short answer: No, you do not have to file for your trademark at the same time you register your business.

Truthfully, once you know you have gold worth protecting, protect it. This is where I recommend you get a trusted Intellectual Property lawyer to help you navigate the process and file correctly. There are no refunds with USPTO.

See you next Friday for Got Biz Legal Questions?