Au-Tomotive Gold, Inc. v. Volkswagen of America, Inc.

This case centers on the trademarks of two well-known automobile manufacturers' — Volkswagen and Audi. The question is whether the Lanham Act prevents a maker of automobile accessories from selling, without a license or other authorization, products bearing exact replicas of the trademarks of these famous car companies. Au-Tomotive Gold, Inc. (“Auto Gold”) argues that, as used on its key-chains and license plate covers, the logos and marks of Volkswagen and Audi are aesthetic functional elements of the product — that is, they are “the actual benefit that the consumer wishes to purchase”— and are thus unprotected by the trademark laws.

Accepting Auto Gold’s position would be the death knell for trademark protection. It would mean that simply because a consumer likes a trademark, or finds it aesthetically pleasing, a competitor could adopt and use the mark on its own products. Thus, a competitor could adopt the distinctive Mercedes circle and tri-point star or the well-known golden arches of McDonald’s, all under the rubric of aesthetic functionality.

The doctrine of aesthetic functionality has a somewhat checkered history. In broad strokes, purely aesthetic product features may…