J.T. Colby & Company, Inc. et al v. Apple, Inc.

Filing 42

AMENDED AND SUPPLEMENTAL COMPLAINT amending 1 Complaint against Apple, Inc. with JURY DEMAND.Document filed by Publishers LLC, J.T. Colby & Company, Inc., Ipicturebooks LLC, J.Boyston & Company. Related document: 1 Complaint, filed by J.Boyston & Company, J.T. Colby & Company, Inc., Publishers LLC, Ipicturebooks LLC. (Attachments: # 1 Exhibit A-D, # 2 Exhibit E, # 3 Exhibit F, # 4 Exhibit G-M, # 5 Exhibit N-Q, # 6 Exhibit R-T, # 7 Exhibit U-X, # 8 Exhibit Y-Z)(lmb)

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World's largest book publisher Random House may soon join Apple's iBookstore

~-Random House, the world'o _,,"I book publisher -.1d mosl high pl"oflle
IlokIouI from AppM'. e8o<* digital OOwnIoed, could soon bring Its

cso"log 01 top seiling no..,." 10 lhe electronic. meksr'.1OS _ ) ' I. . . .

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n. brief statemelll to the m«Iia Monday, RItIdom House said 1haI it has
aoreed to '!he agency model lor ,-book sales" in the U.S. '1tecIivI TUltd.I~ .
Thai means thai going torward. "Random House will sel <XMlStWllll" priou for

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!he e· books we publish. and I...) will provide retellers with a commission for each sale," the publisher Uicl.
The concession COJId bring to an end. near yell·klng standoff between Random House and Apple's iTunes-baMd i8ookstore,
which operates on the so called 'egency moder that alklws the company "riling tile <XMltent 10 take a CUI of sales. For its
iBookstore, Apple employs tile same 10·30 spl~ lhalllas seen renowned success on ~s App Store lor soltwar, on tile IPIlone and

IPod lOuctl.

"The agency model guarantees a Iligller margin for retailers than did our previous sales Ierms," Random

Hou$e said. "We are

makng this change both as an investment in the suc:cessIul digital uansition 01 our existing partners and in order 10 give us the
opporl.Inity 10 Iorge new retail ..lationst'Ops."

The statament appears 10 inlpIy lhat .... publisher ccuId be onl!le . . . . 01 ~ plans 10 bMg its QlIaIog 10 Appls" iDS
deYices flougIl\tle iPtlone and iPld IT\iIker'$ i8cxlkslore. CU"renlty, iDS (!Ie¥iQe . . - . can only purchase and dowf*-l from

Ratxt:m House's digiIaJ QltaIog fVough Amazon's ~ 3W lor ~ deYDs.

., !he lAd up 10 I!le Iaundl 01 Appe.. iPld last Apri, Flandom House . ~ __ said 10 be exp6oo'VIg \tie ~ 01 !tie
~

model with their authors snd agents before lIlIJfeeing to Appe.. 1elTnI, wI'kto dic:tl* that Appe r ~ • 30'S. wi 01 ..
. . . on the iBookAont. N.1he lime, ctIief ,xla/li¥e Markus DohIs said his oompIItIy hedn' lUIed out reactMng. daalllekn the
AfIril3fd, 201 0 Iauneh 0I1he IabIM dlIYlos, but edl*llhat he was proceeding with caulion.

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l.JnOer '" II1Idilional ~" model. ,eseIets IIave boo.9ht boI:b !rom pubis/len, III o:beounl prion a"Id IheI'I maII<ed lhem ~ to
make a pro/iIlIvough sales. EluI: Apple's aoentY appIoach has !he pubi$hIIs sel '" prieM pM! by c:onu.wners _ 8OITI8Ihing
Random House axlll::UM' __a concerned cwld lead to aIIlsid&lably lower prices. a"Id 1l'Ius bweI pIOIits.
WOIdlllal Random Hous8 could join on !he i8ookstola fiv'Il 01 its biggesl COfI'Il)8IilOI. _ Ha~, HacheIIa, Penguin,
M8cmiIllIland

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AAPl: 3£3.83 (+4.64)
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Random House books come to Apple's iBookstore for iPad, iPhone

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Day. In_ publltn.r R.ldom HoUle ...nounced II would adopt I". ~y modeollor I'book ..Jet;, content trOllllhe
world'. Iarge.1 consumer I..-M publl.her _ tneludlng '"The De Vinci

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second.generalion IPacl. Some rurTl()l'1, tLave SUlI98sted that tile newde'lice willllave In Improved dl.play wittl superiol anti.
IIIIectIo4 propeme•. IllowIng for easier reacflrlg 01 conlentike e-books in sunliQht.
wtlen the iBooks appiK:a1ion launched Ia" April, Random Hou$e waslhe most noteWo<1l1y llbll8flCfllrom Apple's new digital
storefront. Other rnajot' pubislle<s, including HarperCo"&1s, Hachelte, Penguin, Macmillan and Simon & Schuster made thei!'

oontent avaaablflirom day one.

to be sold on the iBookslOre now because the world's largest publisher announCfld on Mon(lay
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Ranclom Hou.... content Is ablll
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l-bQoj(s II publlslles, and provides retailers w/Ih a commission lor each sale.
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Slore. Random Houle con~l was prllliously llI/ailablB on the ,Pad onty lhrough !he Amazon Kindle application and separate

stor,lIon!.

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Exhibit S

I" I 1IlI~101 11111I

RADEMARV U·lW OFF I cr 1.'
Serial Number:
7~/5~4~JJ
M",rk:
.I BOOK
:t<*Pl€ills€:: PI ~-=~ ·;.n UPPI<::f

1DJ

:t"'of

Re5F'OnS~

\ ( "}Kl!i1ht Cor-r'ler**

t.o Offica Act.ion ONLY ... ~

07-22-1999

u.'....~.l...,ICI1MN .. _.O'-'SO HE UNITED SfATES PATENT AND TRADEMARK
In re application of:

)
)
)

Apple Computer, Inc.

)
)
)
)
)

Serial No.: 75/584233
Filed: November 6, 1998
For: mOOK

Examining Attomey:

Mary Boagni
Trademark Law Office 112

)
)

RESPONSE TO OFFlCE ACTION
<<=

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Assistant Commissioner for Trademarks
Box Responses
No Fee
2900 Crystal Drive

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Arlington, VA 22202-3513

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Dear Ms. Boagni:
This communication is responsive to the outstanding Office Action mailed

on june 23, 1999.

CONSENT AGREEMENT
The Examining Attorney has suspended prosecution of the above application
based upon the existence of prior application number 75-182820 for the mark [BOOK
as filed by Family Systems Limited. Company. In response thereto, the Applicant
hereby submits a duly executed consent agreement between these parties which

defmes the respective Irade channels, styLizations, goods the marks will be used

f

upon and provides details of the parties on-going efforts to avoid any likelihood of
confusion between their respective uses of the mark mOOK. As such, it is

respectfully submitted that the present application should be removed from
suspension at the Examining Attorney's earliest convenience, thus allowing the
mark to proceed to publication.

CONCWSION
]t is

respectfully submitted that as aIL the outstanding requirements have been

addressed., the present application is in condition for publication.

If the Examining Attorney has any further questions, she is urged to
telephone the undersigned.

Respectfully submitted,
APPLE COMPUTER, INC.

1 lnfinite Loop

Michael W. Hicks

MS: 38-TM
Cupertino, CA 95014
[phone]

2

,

CONSENT AGREEMENT
This Agreement is made as of this 7th day of May, 1999, by and between Apple
CompUler, Inc., a California corporation, with its principal place of business at I Infinite Loop.

Cupertino, California 9S014(hereinafter referred to as "APPLE"), and Family Systems Limited, a
United Kingdom company. located and doing business at 8 St. George's Street, Douglas, [sle of
Man IMI IAH, (hereinafter referred to as "FAMD..Y SYSTEMS").
WHEREAS, prior to APPLE's adoption and use offfiOOK. FAL\{[LY SYSTEMS
adopted and used the mark £BOOK for computer software used to support and create interactive,
user-modifiable electronic books and related goods and services and has filed trademark
applications for and intends to use the mark mOCK for computer hardware and software or
specifically computer hardware and software used to support and create interactive, llser-

modifiable electronic books, in the United States and in many other countries; and
WHEREAS, APPLE has adopted and is using the trademark !BOOK in cofUlectioD with
computer hardware, namely, notebook computers and has filed trademark applications therefor;
and
WHEREAS, the parties to this Agreement are desirous of entering into an agreement that
sets forth both parties' rights to use and register their marks for the identified goods and services.
NOW. TIlEREFORE, in view of the foregoing and in consideration oftbe mutual covenants

hereinafter set forth and other good and valuable consideration including that specified in

- 1 -

Appendix A attached hereto, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:
I.

APPLE uses or intends to use the mark IBooK in association with computer

hardware, namely, notebook computers and related goods and services used in connection with
said notebook computers bearing APPLE's mooK mark, excluding software and software
related goods and services.
2.

The products and services provided or to be provided by FAMTI...Y SYSTEMS

under the mark mooK are computer hardware and software used to support and create
interactive, user·modifiable electronic books and related goods and services.
3.

APPLE shall limit its use oftbe mark !BOOK to the following two stylizations:

(I) the "I" component of the mark in lowercase and the "BOOK" component of the mark in
uppercase or (2) the "I" componem of the mark in lowercase, the "B" component of the mark in
uppercase and the "OOK" component of the mark in lowercase. APPLE sball ensure that any
notebook computer or goods or services used in connection therewith displaying the IBOOK
mark will also display, somewhere on said product and in the advertising of said product or
service, the word APPLE or a design of an apple. APPLE shall further limit its use of the mark

,.'

to products and services that come within the description in Paragraph I above and will
specifically not Use or attempt to register tbe mark: mOOK.. or any mark similar thereto, on any
products or services coming within the description in Paragraph 2 above. APPLE shall limit its
registration of the ISOOK mark or any mark similar thereto to notebook computers and related

- 2 -

•

computer hardware and peripherals used in connection with the notebook computers and users
manuals sold therewith.
4.

FAMILY SYSTEM.S shall limit its use of the mark mOCK to products and

services that come within the description in Paragraph 2 above. Additionally, Family Systems
shall specifically not use or anempt to register the mark mOOK, or aoy mark similar thereto, on
any products or services coming within the description in Paragraph 1 above.
5.

APPLE shall provide a link on the mOOK portion of the APPLE Intemet web-

site to the FAMILY SYSTEMS web-site which will identify FA1YrILY SYSTEMS as the owner
of the CSOOK mark in connection with the F AM1L Y SYSTEMS' goods and services. as
specified in Paragraph 2 above.
6.

The parties shall not object to. contest, seek cancellation of. or in any way

inteliere with, directly or indirectly, the other's use and/or registration of their respective mOOK
marks, provided that such use and/or registration is in accordance with the teons oftms
Agreement. In addition, the parties expressly consent to the concurrent use and/or registration of
their respective marks, provided that the marks are used and/or registered in accordance with the
tClDls of this Agreement

7.

APPLE and FAMILY SYSTEMS shall notify the other of any violation ofrighls

pertaining to the IBOOK marks lhat comes to such party's attention and which such party deems
to be a violation of Doe or both of the partics' rights in their respective mOOK marks. Each
party shall promptly cooperate with the other, at the other's expense., in any action brought by the

- 3 -

other against a third party seeking to enforce and/or protect one or both of the parties' rights in
their respective mOOK marks.
8.

Either party shall have the right, but not the obligation, at its own expense, to join

Lhe other party in any action or proceeding taken against a third party to enforce or protect the
parties' rights in their respective IBOOK marks. In the event that either party, after receiving

notice of any infringement or violation, declines to take action against the alleged infringing third
party, the other party may elect to take legal action against such third party.

9.

The parries agree that their respective products and services, as defined in

Paragraphs I and 2 ofWs Agreement, are distinctly different and, if used in accordance with this

Agreement, the parties' use of their respective IBOOK marks are not likely to create a likelihood
of confusion. Should actual confusion arise between the parties' use of their respective marks,
the parties agree to cooperate and find ways to eliminate or further reduce the likelihood of
confusion.
10.

This Agreement shall not be changed, modified or discharged in whole or in part

except by an instrument in writing duly signed by authorized individuals of both parties. A
waiver of any provision hereof under any circumstances will not constitute a general waiver of
any rights hereunder. Nothing herein shall be deemed to prevent either or both of the respective
parties from pursuing any remedies available to it in case ora material breach oflhis Agreement.
However, jf one pany believes that the other party has materially breached this Agreement, said

-

.

-

one party shall provide written notice of such breach to said other party and said other party shall
be afforded thiny days to correct such breaclt
11.

11tis Agreement shall be binding upon the parties hereto and each of them, and

will inure to the benefit of, and will be binding upon the agents, representatives, heirs, panners,
directors, officers, employees, affiliates, subsidiaries, predecessors, successors and assigns of the
parties to this Agreement. The panies agree that it is in their commercial interest to be bound by
the tenns oftrus AgreemenL This Agreement will be governed by the laws of the State of
California.
12.

If any provision of this Agreement is or becomes or is deemed invalid, illegal or

unenforceable under the applicable laws or regulations of any jurisdiction, either such provision
will be deemed amended to conform to such laws or regulations without materially altering the
intention of the parties or it will be stricken and the remainder of this Agreement will remain in
full force and effect.
13.

All notices shall be scnt to the addresses set forth above, and if to APPLE to tbe

attention of Trademark counsel, and if to FAMILY SYSTEMS, to the attention of Tradernark
Counsel. All notices shall be sent by certified mail, return receipt requested.
14.

Notwithstanding the foregoing provisions, APPLE recognizes and acknowledges

that F Al\oflLY SYSTEMS has filed or may file applications for registration of the mOOK mark

in many coWltries and that certain applications may have an identification of goods and/or
services which is broader in scope than is provided for elsewhere in this Agreement. in the

- 5 -

,.

event, however, that APPLE is unable to obtain registration of its IBOOK mark in any country
for goods which conform to the restrictions to which it has agreed in this Agreement, FAMILY
SYSTEMS agrees to amend its application or registration in that country to conform to the
restrictions to which it has agreed in the foregoing paragraphs, and. so long as APPLE does not
materially breach this Agreement, FAMILY SYSTEMS agrees to take no action against APPLE
applications and registrations for £BOOK which conform to the restrictions to which APPLE has
agreed in the foregoing paragraphs. APPLE agrees to restrict the identification of goods in any

application for mOOK which it files or has filed as provided in the foregoing paragraphs and,
under all circumstances, to amend the identifications of goods in its applications and registrations
in any country however as may be necessary forFAMD..Y SYSTEMS to obtain registration of its

mOOK mark for goods andlor services which conform to the restrictions to which FAMILY
SYSTEMS has agreed in the foregoing paragraphs. APPLE hereby further states and agrees that

it has taken no action and, so long as FAMILY SYSTEMS docs not materially breach this
Agreement, will take no action which would interfere in any way with the FAMll..Y SYSTEMS
applications and registrations for its [BOOK mark.
15.

This Agreement shall be considered worldwide in effect.

I

This Agreement has been executed on behalf of each party by a duly authorized
representative of such party, on the dates hereinafter indicated, in duplicate, each of which shall

I
I'

- 6 -

be considered an original, and this Agreement shaU be deemed effective as of the date the
transfer referred to in Appendix A attached hereto is completed.

APPLE COMPUTER,INC.
Date: May,

:r 1999

By~Cl;Jr
Michael C. Wyat.t

Name:
Title:

_
Associat.e General Counsel & Assistant Secretar:

FAMILY SYSTEMS LrMITED
Date: May,.z 1999

By

L~.4£O:::-c-

Name: I . ,«_gr_
Title:

- 7 -

__

L.t_d.:.-,~

a Cae c :6z---=

Exhibit T

Page 1 of2

ibook

Conlrlbulor:~ Dalt:

Revise Qr email this

Mon Dec 23 09:51 :33 PST 2002 Prtvlout M.,.lilolll R,,'lIlon llidu

p-ag~

Content: linde. 23111 Q295133.htm

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