“Defendant’s conduct has, and will continue to have, an adverse effect on the value of and distinctive quality of the INTEL mark.” —Wieking, District Judge 

Facts: Intel Corporation is a large company that distributes its entire line of products and services under the registered trademark and service mark INTEL. The company also owns numerous marks that incorporate its INTEL marks as a permanent component, such as the marks INTEL INSIDE, INTEL SPEEDSTEP, INTEL XEON, and INTEL NETMERGE. Intelsys Software, LLC, which is owned by another party, develops software applications for network utilities and wireless applications. Intelsys uses the mark Intelsys Software and maintains a website at www.intelsys.com. Intel Corporation brought an action in U.S. district court against Intelsys Software, LLC, alleging that Intelsys infringed on Intel’s trademarks and service marks, in violation of the Lanham Act. Intel filed a motion for judgment and a permanent injunction against Intelsys’s use of the mark INTEL in any of its company, product, or service names. 

Issue: Is there trademark infringement that warrants the issuance of a permanent injunction against Intelsys? Language of the Court Defendant uses the mark “Intelsys Software,” which incorporates Plaintiff’s INTEL trademark and adds the generic term “sys”—a common abbreviation for “systems”—and the generic term “software.” Defendant’s unauthorized use of the Intelsys Software name and trademark falsely indicates to consumers that Defendant’s products and services are in some manner connected with, or related to, Plaintiff. Defendant’s use of the mark allows it to benefit from the goodwill established by Plaintiff. Defendant’s conduct has, and will continue to have, an adverse effect on the value of and distinctive quality of the INTEL mark. 

Decision: The U.S. district court granted judgment to Intel and issued a permanent injunction prohibiting Defendant from using the name Intelsys as a trade name or name of any products or services. 

Ethics Questions: Do you think that the defendant Intelsys intended to take advantage of Intel’s strong trademarks and service marks? Have you ever engaged in trademark infringement?