Friday, July 1, 2011

Feds Try to Take Logo From Motorcycle Gang

            In order to find evidence of the importance of trademarks, look no further than to a recent Los Angeles Times Article, there was a report that Federal prosecutors were asking a judge to enjoin a motorcycle gangs' use of a trademark.  Even more recently, though, the court decided to reject the attempt to seize the logo.  The judge found that there were members of the gang who were not being indicted, and therefore, the judge could not take the property (trademark) away from those not indicted.  Trademarks are a property right and, if used in the commission of a crime(s), may be found to be part of the "ill-gotten" gains of any such crime(s).  However, as the court indicated, it would be wrong to deny a property right of the unindicted members of the gang.  Nevertheless, this can be a powerful arrow in a prosecutors quiver in fighting crime.  Gang signs and trademarks have just as much recognition as a "normal" trademark and can provide the same benefits to gangs or groups of people that any trademark provides to a business or consumers. 
            According to the article, the Mongols were formed by a small group of Latinos in the 1970s after being rejected by the Hells Angels.  In 2008, Federal prosecutors obtained an indictment against several members of the Mongols for racketeering, murder, assault, drug trafficking, and robbery.  While serving as President of the gang, Ruben "Doc" Cavazos registered the ponytailed man riding a chopper logo with the United States Patent and Trademark Office ("USPTO").  The USPTO issued a registration for the logo on April 4, 2006:

            On January 11, 2005, the USPTO issued a registration for the trademark "MONGOLS" to Mongol Nation.  When Cavazos pleaded guilty to racketeering conspiracy charges, the Federal prosecutors realized that they could seize the trademark because it was the gang's property and used while the gang was involved in criminal activity.  Apparently, Cavazos flipped to become an informant for the government in exchange for pleading guilty to one count of the indictment.  He also apparently confessed that the registered trademark "afforded a source of influence over the RICO enterprise that [he] admits he established, operated, controlled, conducted and participated in the conduct of . . ."
            An interesting take on the intersection of crime and intellectual property law.  It sounds like the judge wanted to grant the seizure of the trademark, but could not find support in the law for denying the "innocent" (i.e. the unindicted) their property rights.  This may be an issue the Legislature would be interested in reviewing and researching to see if an amendment to the law would be appropriate. 

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