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Full Opinion
Opinion for the court filed by Circuit Judge MOORE, in which Chief Judge PROST and Circuit Judges NEWMAN, OâMALLEY, WALLACH, TARANTO, CHEN, HUGHES, and STOLL join.
Concurring opinion filed by Circuit Judge. OâMALLEY, in which Circuit Judge WALLACH joins.
Opinion concurring in part and dissenting in part filed by Circuit Judge DYK, in which Circuit Judges LOURIE and REYNA join with respect to parts I, II, III, and IV.
Dissenting opinion filed by Circuit Judge LOURIE.
Dissenting opinion filed by Circuit Judge REYNA.
Section 2(a) of the Lanham Act bars the Patent and Trademark Office (âPTOâ) from registering scandalous, immoral, or disparaging marks. 15 U.S.C. § 1052(a). The government enacted this law â and defends it today â because it disapproves of the messages conveyed by disparaging marks. It is a bedrock principle underlying the First Amendment that the government may not penalize private speech merely because it disapproves of the message it conveys. That principle governs even when the governmentâs message-discriminatory penalty is less than a prohibition.
Courts have been slow to appreciate the expressive power of trademarks. Words â even a single word â can be powerful. Mr. Simon Shiao Tam named his band THE SLANTS to make a statement
The government cannot refuse to register disparaging marks because it disapproves of the expressive messages conveyed by the marks. It cannot refuse to register marks because it concludes that such marks will be disparaging to others. The government regulation at issue amounts to viewpoint discrimination, and under the strict scrutiny review appropriate for government regulation of message or viewpoint, we conclude that the disparagement proscription of § 2(a) is unconstitutional. Because the government has offered no legitimate interests justifying § 2(a), we conclude that it would also be unconstitutional under the intermediate scrutiny traditionally applied to regulation of the commercial aspects of speech. We therefore vacate the Trademark Trial and Appeal Boardâs (âBoardâ) holding that Mr. Tamâs mark is unregistrable, and remand this case to the Board for further proceedings.
Background
I. The Lanham Act
Congress enacted the Lanham Act in 1946 to provide a national system for registering and protecting trademarks used in interstate and foreign commerce. Congressâs purpose in enacting the Lanham Act was to advance the two related-goals of trademark law. First, the purpose of the Lanham Act is to âprotect the public so it may be confident that, in purchasing a product bearing a particular trade-mark which it favorably knows, it will get the product which it asks for and wants to get.â Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 782 n. 15, 112 S.Ct. 2753, 120 L.Ed.2d 615 (1992) (Stevens, J., concurring) (quoting S.Rep. No. 791333, at 3 (1946)). Second, the Lanham Act ensures that a markholder can protect âhis investment from ... misappropriation by pirates and cheats.â Id.; see also Inwood Labs., Inc. v. Ives Labs., Inc., 456 U.S. 844, 854 n. 14, 102 S.Ct. 2182, 72 L.Ed.2d 606 (1982) (âBy applying a trademark to goods produced by one other than the trademarkâs owner, the infringer deprives the owner of the goodwill which he spent energy, time, and money to obtain. At the same time, the infringer deprives consumers of their ability to distinguish among the goods of competing manufacturers.â (citations omitted)).
âRegistration is significant. The Lanham Act confers important legal rights and benefits on trademark owners who register their marks.â B & B Hardware, Inc. v. Hargis Ind., Inc., â U.S. -, 135 S.Ct. 1293, 1300, 191 L.Ed.2d 222 (2015) (quotation marks omitted). These benefits â unavailable in the absence of federal registration â are numerous, and include both substantive and procedural rights. The holder of a federal trademark has a right to exclusive nationwide use of that mark where there was no prior use by others. See 15 U.S.C. §§ 1072, 1115. Because the common law grants a markholder the right to exclusive use only in the geographic areas where he has actually used his mark, see 5 J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 26:32 (4th ed.) (hereinafter âMcCarthyâ), holders of a federally registered trademark have an important substantive right they could not otherwise obtain. Also, a registered mark is presumed
Under the Lanham Act, the PTO must register source-identifying trademarks unless the mark falls into one of several categories of marks precluded from registration. Id. § 1052 (âNo trademark by which the goods of the applicant may be distinguished from the goods of others shall be refused registration on the principal register on account of its nature unless .... â (emphasis added)). Many of these categories bar the registration of deceptive or misleading speech, because such speech actually undermines the interests served by trademark protection and, thus, the Lanham Actâs purposes in providing for registration. For example, a mark may not be registered if it resembles a registered mark such that its use is likely to âcause confusion, or to cause mistake, or to deceive,â § 2(d), or if it is âdeceptively misdescriptive,â § 2(e). These restrictions on registration of deceptive speech do not run afoul of the First Amendment. See Cent. Hudson Gas & Elec. Corp. v. Pub. Serv. Commân, 447 U.S. 557, 563, 100 S.Ct. 2343, 65 L.Ed.2d 341 (1980) (âThe government may ban forms of communication more likely to deceive the public than to inform it.â); see also Friedman v. Rogers, 440 U.S. 1, 13, 15-16, 99 S.Ct. 887, 59 L.Ed.2d 100 (1979); Ohralik v. Ohio State Bar Assân, 436 U.S. 447, 462-63, 98 S.Ct. 1912, 56 L.Ed.2d 444 (1978).
Section 2(a), however, is a hodgepodge of restrictions. Among them is the bar on registration of a mark that â[cjonsists of or comprises immoral, deceptive, or scandalous matter; or matter which may disparage or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt or disrepute.â Section 2(a) contains proscriptions against deceptive speech, for example, the prohibition on deceptive matter or the prohibition on falsely suggesting a connection with a person or institution. But other restrictions in § 2(a) differ in that they are based on the expressive nature of the content, such as the ban on marks that may disparage persons or are scandalous or immoral. These latter restrictions cannot be justified on the basis that they further the Lanham Actâs purpose in preventing consumers from being deceived. These exclusions from registration do not rest on any judgment that the mark is deceptive or likely to cause consumer confusion, nor do they protect the markholderâs investment in his mark. They deny the protections of registration for reasons quite separate from any ability of the mark to serve the consumer and investment interests underlying trademark protection. In fact, § 2(a)âs exclusions can undermine those interests because they can even be employed in cancellation proceedings challenging a mark many years after its issu-
This case involves the disparagement provision of § 2(a).
A disparaging mark is a mark which âdishonors by comparison with what is inferior, slights, deprecates, degrades, or affects or injures by unjust comparison.â Getter, 751 F.3d at 1358 (alterations omitted). To determine if a mark is disparaging under § 2(a), a trademark examiner of the PTO considers:
*1331 (1) What is the likely meaning of the matter in question, taking into account not only dictionary definitions, but- also the relationship of the matter to the other elements in the mark, the nature of the goods or services, and the manner in which the mark is used in the marketplace in connection with the goods or services;, and
(2) If that meaning is found to refer to identifiable persons, institutions, beliefs or national symbols, whether that meaning may be disparaging to a substantial composite of the referenced group.
Trademark Manual of Exam. Proc. (âTMEPâ) § 1203.03(b)© (Jan.2015 ed.) (citing Getter, 751 F.3d at 1358). If the examiner âmake[s] a prima facie .showing that a substantial composite, although not necessarily a majority, of the referenced group would find the proposed mark, as used on or in connection with the relevant goods or services, to be disparaging in the context of contemporary attitudes,â the burden shifts to the applicant for rebuttal. Id. If the applicant fails to rebut the prima facie case of disparagement, the examiner refuses to register the mark. The Trademark Manual of Examining Procedure does not require an examiner who finds a mark disparaging to consult her supervisor or take any further steps to ensure the provision is applied fairly and consistently across the agency. Compare TMEP § 1203.03 (no discussion of action to take if examiner finds mark disparaging), with TMEP § 1203.01 (requiring examiner who finds a mark scandalous or immoral to consult his supervisor). A single examiner, with no input from her supervisor, can reject a mark as disparaging by determining that it would be disparaging to a substantial composite of the referenced group.
II. Facts of This Case
Mr. Tam is the âfront manâ for the Asian-Ameriean dance-rock band The Slants. Mr. Tam named his band The Slants to âreclaimâ and âtake ownershipâ of Asian stereotypes. J.A. 129-30. The band draws inspiration for its lyrics from childhood -slurs and mocking nursery rhymes, J.A. 130, and its albums include âThe Yellow Albumâ and âSlanted Eyes, Slanted Hearts.â The band âfeel[s] strongly that Asians should be proud of their cultural heri[ta]ge, and not be offended by stereotypical descriptions.â J.A. 52. With their lyrics, performances, and band name, Mr. Tam and his band weigh in on cultural and political discussions about race and society that are within the heartland of speech protected by the First Amendment.
On November 14, 2011, Mr. Tam filed the instant application (App. No. 85/472,-044) seeking to register the mark THE SLANTS for âEntertainment in the nature of live performances by a musical band,â based on his use of the mark since 2006.
The Board affirmed the examinerâs refusal to register the mark. The Board wrote that âit is abundantly clear from the record not only that THE SLANTS ... would have the âlikely meaningâ of people of Asian descent but also that such meaning has been so perceived and has prompted significant responses by prospective attendees or hosts of the bandâs performances.â In re Tam, No. 85472044, 2013 WL 5498164, at *5 (T.T.A.B. Sept. 26, 2013) (âBoard Opinion â). To support its finding that the mark likely referred to people of Asian descent, the Board pointed to dictionary definitions, the bandâs website, which displayed the mark next to âa depiction of an Asian woman, utilizing rising sun imagery and using a stylized dragon image,â and a statement by Mr. Tam that he selected the mark in order to âownâ the stereotype it represents. Id. The Board also found that the mark is disparaging to a substantial component of people of Asian descent because â[t]he dictionary definitions, reference works and all other evidence unanimously categorize the word âslant,â when meaning a person of Asian descent, as disparaging,â and because there was record evidence of individuals and groups in the Asian community objecting to Mr. Tamâs use of the word. Id. at *7. The Board therefore disqualified the mark for registration under § 2(a).
Mr. Tam appealed, arguing that the Board erred in finding the mark disparaging and that § 2(a) is unconstitutional. On appeal, a panel of this Court affirmed the Board determination that the mark is disparaging.
The panel also found that substantial evidence supported the Boardâs finding that the mark is disparaging to a substantial composite of people of Asian descent. Panel Op. at 571. It noted that the definitions in evidence universally characterize the word âslantâ as disparaging, offensive, or an ethnic slur when used to refer to a person of Asian descent, including the dic
Having found the mark disparaging under § 2(a), the panel held that binding precedent foreclosed Mr. Tamâs arguments that § 2(a) is unconstitutional, including Mr. Tamâs argument that § 2(a) violates the First Amendment on its face. Panel Op. at 572-73. As the panel explained, in McGinley, our predecessor court held that the refusal to register a mark under § 2(a) does not bar the applicant from using the mark, and therefore does not implicate the First Amendment. Id. at 572 (citing In re McGinley, 660 F.2d 481, 484 (C.C.P.A.1981)). The entirety of the McGinley analysis was:
With respect to appellantâs First Amendment rights, it is clear that the PTOâs refusal to register appellantâs mark does not affect his right to use it. No conduct is proscribed, and no tangible form of expression is suppressed. Consequently, appellantâs First Amendment rights would not be abridged by the refusal to register his mark.
660 F.2d at 484 (citations omitted). In subsequent cases, panels of this Court relied on the holding in McGinley. See In re Fox, 702 F.3d 633, 635 (Fed.Cir.2012); In re Boulevard Entmât, Inc., 334 F.3d 1336, 1343 (Fed.Cir.2003); In re Mavety Media Grp., 33 F.3d 1367, 1374 (Fed.Cir.1994). Additional views by the panelâs authoring judge questioned whether the en banc court should reconsider the constitutionality of § 2(a) en banc. Panel Op. at 573-85 (Moore, J., additional views).
More than thirty years have passed since the decision in McGinley, and in that time both the McGinley decision and our reliance on it have been widely criticized.
Other courtsâ reliance on the reasoning in McGinley further reinforces the importance of taking this case en banc. Without analysis, the Fifth Circuit wrote that â[w]e join our sister circuit in rejecting [the applicantâs] argument that prohibiting him from registering a mark with the PTO violates his [F]irst [A]mendment rights.â Test Masters Educ. Servs., Inc. v. Singh, 428 F.3d 559, 578 n. 9 (5th Cir.2005). And a district court in the Eastern District of Virginia relied upon McGinley when it concluded that the cancellation of trademark registrations under § 2(a) did not implicate the First Amendment. Pro-Football, Inc., 112 F.Supp.3d at 454-57, 2015 WL 4096277, at *8-10 (â[T]he Court agrees with the Federal Circuit and Fifth Circuit and holds that Section 2(a) of the Lanham Act does not implicate the First Amendment.â).
For these reasons, we sua sponte ordered rehearing en banc. We asked the parties to file briefs on the following issue:
Does the bar on registration of disparaging marks in 15 U.S.C. § 1052(a) violate the First Amendment?
En Banc Order at 775. In addition to the partiesâ briefs, we received ten amicus briefs. We heard oral argument on October 2, 2015.
Discussion
I. Section 2(a)âs Denial of Important Legal Rights to Private Speech Based on Disapproval of the Message Conveyed Is Subject to, and Cannot Survive, Strict Scrutiny
Strict scrutiny is used to review any governmental regulation that burdens private speech based on disapproval of the message conveyed. Section 2(a), which denies important legal rights to private speech on that basis, is such a regulation. It is therefore subject to strict scrutiny. It is undisputed that it cannot survive strict scrutiny.
A. The Disparagement Provision, Which Discriminates Based on Disapproval of the Message, Is Not Content or Viewpoint Neutral
âContent-based regulations are presumptively invalid.â R.A.V. v. City of St. Paul, 505 U.S. 377, 382, 112 S.Ct. 2538, 120 L.Ed.2d 305 (1992); see also Ashcroft v. ACLU, 542 U.S. 656, 660, 124 S.Ct. 2783, 159 L.Ed.2d 690 (2004). âContent-based laws â those that target speech based on its communicative content â are presumptively unconstitutional and may be justified only if the government proves that they are narrowly tailored to serve compelling state interests.â Reed v. Town of Gilbert, â U.S. -, 135 S.Ct. 2218, 2226, 192 L.Ed.2d 236 (2015); see also Police Depât of Chi. v. Mosley, 408 U.S. 92, 95, 92 S.Ct. 2286, 33 L.Ed.2d 212 (1972) (â[A]bove all else, the First Amendment means that the government has no power to restrict expression because of its message, its ideas, its subject matter, or its content.â). A regulation is content based even when its reach is defined simply by the topic (subject matter) of the covered speech. See Reed, 135 S.Ct. at 2230.
Viewpoint-based regulations, targeting the substance of the viewpoint
It is beyond dispute that § 2(a) discriminates on the basis of content in the sense that it âapplies to particular speech because of the topic discussed.â Reed, 135 S.Ct. at 2227. Section 2(a) prevents the registration of disparaging marks â it cannot reasonably be argued that this is not a content-based restriction or that it is a content-neutral regulation of speech. And the test for disparagementâ whether a substantial composite of the referenced group would find the mark disparaging â makes clear that it is the nature of the message conveyed by the speech which is being regulated. If the mark is found disparaging by the referenced group, it is denied registration. âListenersâ reaction to speech is not a content-neutral basis for regulation.â Forsyth Cty. v. Nationalist Movement, 505 U.S. 123, 134, 112 S.Ct. 2395, 120 L.Ed.2d 101 (1992).
And § 2(a) does more than discriminate on the basis of topic. It also discriminates on the basis of message conveyed, âthe idea or message expressed,â Reed, 135 S.Ct. at 2227; it targets âviewpoints [in] the marketplace,â Simon & Schuster, 502 U.S. at 116, 112 S.Ct. 501. It does so as a matter of avowed and undeniable purpose, and it does so on its face.
The legal significance of viewpoint discrimination is the same whether the government disapproves of the message or claims that some part of the populace will disapprove of the message. This point is recognized in the Supreme Courtâs longstanding condemnation of government impositions on speech based on adverse reactions among the public. See, e.g., Snyder v. Phelps, 562 U.S. 443, 460-61, Additional Information