On December 2, 2024, President Joe Biden signed into law H.R. 1505, the “No Stolen Trademarks Honored in America Act of 2023,” an important measure to protect intellectual property rights and address the legacy of trademarks confiscated during government seizures, particularly in Cuba. This legislation strengthens prohibitions against enforcing or validating trademarks connected to confiscated businesses or assets.
Key Aspects of the Legislation
- Expanded Prohibition Scope: The law modifies the existing prohibition, which previously applied only to U.S. courts and restricted enforcement of confiscated trademarks when asserted by Cuban nationals in the United States. Now, the ban extends to both U.S. courts and executive branch agencies. This ensures broader safeguards against the misuse of trademarks tied to expropriated businesses or assets.
- Connection to Confiscated Businesses: The law specifically targets trademarks used in connection with businesses or assets that were confiscated by the Cuban government. It aims to prevent entities from leveraging U.S. legal systems to enforce rights over marks connected to these expropriations.
- Knowledge Requirement: To fall under the prohibition, the entity asserting the trademark must have known, or should have reasonably known, that the trademark is identical or substantially similar to one associated with a confiscated business or asset. This introduces an important standard of accountability for entities seeking to enforce rights over such marks.
- Owner Consent Exception: The law carves out an exception if the original owner of the trademark, or a legitimate successor, has expressly consented to the enforcement or validation of the trademark. This ensures that the original rights holders maintain agency over the fate of their intellectual property.
Implications for Intellectual Property and Trade
This legislation reflects a strong commitment to ethical business practices and respect for property rights. By closing gaps in existing laws, it ensures that trademarks connected to confiscated assets are not used to exploit U.S. legal and economic systems. It also strengthens protections for businesses and individuals who suffered losses due to confiscations, particularly in the Cuban context.
For businesses, this law underscores the importance of conducting thorough due diligence before acquiring trademark rights, especially in jurisdictions with histories of government expropriations. The knowledge requirement sets a clear expectation for entities asserting trademark rights to ensure they are not perpetuating the exploitation of stolen assets.