1-1     By:  Ratliff                                          S.B. No. 1302

 1-2           (In the Senate - Filed March 12, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on International Relations,

 1-4     Trade, and Technology; April 17, 1997, reported favorably by the

 1-5     following vote:  Yeas 9, Nays 0; April 17, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the filing of a certain instrument and registration of

 1-9     a trademark or service mark with the secretary of state; providing

1-10     a criminal penalty.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 16.10, Business & Commerce Code, is

1-13     amended to read as follows:

1-14           Sec. 16.10.  APPLICATION FOR REGISTRATION.  (a)  Subject to

1-15     the limitations prescribed by this chapter, a [A] person may

1-16     [shall] file an [his] application to register a mark in the office

1-17     of the secretary of state on a form prescribed by the secretary of

1-18     state.

1-19           (b)  The applicant shall include in the application:

1-20                 (1)  the name and business address of the applicant;

1-21                 (2)  if the applicant is a corporation, limited

1-22     partnership, limited liability company, or other business entity,

1-23     the state of incorporation or organization [of the applicant if the

1-24     applicant is a corporation];

1-25                 (3)  an appointment of the secretary of state as the

1-26     applicant's agent for service of process only in suits relating to

1-27     the registration which may be issued if the applicant:

1-28                       (A)  is or becomes a:

1-29                             (i)  nonresident individual, partnership,

1-30     or association; or

1-31                             (ii)  foreign corporation, limited

1-32     partnership, or limited liability company without a certificate of

1-33     authority to do business in this state; or

1-34                       (B)  cannot be found in this state;

1-35                 (4)  the names or a description of the goods or

1-36     services in connection with which the mark is being used;

1-37                 (5)  the manner in which the mark is being used in

1-38     connection with the goods or services;

1-39                 (6)  the class in which the applicant believes the

1-40     goods or services belong;

1-41                 (7)  the date on which the applicant first used the

1-42     mark anywhere in connection with the goods or services;

1-43                 (8)  the date on which the applicant first used the

1-44     mark in this state in connection with the goods or services;

1-45                 (9)  a statement that the applicant [believes he] is

1-46     the owner of the mark, and that, to the best of the applicant's

1-47     [his] knowledge, no other person is entitled to use the mark in

1-48     this state:

1-49                       (A)  in the identical form used by the applicant;

1-50     or

1-51                       (B)  in a form that is likely, when used in

1-52     connection with the goods or services, to cause confusion or

1-53     mistake, or to deceive, because of its resemblance to the mark used

1-54     by the applicant; [and]

1-55                 (10)  a narrative description of the mark; and

1-56                 (11)  such additional information or documents as the

1-57     secretary of state may reasonably require.

1-58           (c)  The applicant shall:

1-59                 (1)  prepare and file the application and a copy of the

1-60     application with the secretary of state; and

1-61                 (2)  submit as part of the application to the secretary

1-62     of state:

1-63                       (A)  two identical specimens or facsimiles of the

1-64     mark as actually used, one specimen or facsimile with the original

 2-1     application and one specimen or facsimile with the copy; [and,]

 2-2                       (B)  a drawing of the mark that complies with any

 2-3     requirement specified by the secretary of state; and

 2-4                       (C)  an application [a filing] fee of $50 payable

 2-5     to the secretary of state.

 2-6           (d)  The applicant or the applicant's [his] agent shall sign

 2-7     [and verify] the application.

 2-8           SECTION 2.  Subchapter B, Chapter 16, Business & Commerce

 2-9     Code, is amended by adding Sections 16.105 through 16.109 to read

2-10     as follows:

2-11           Sec. 16.105.  EXAMINATION OF APPLICATION.  (a)  On the filing

2-12     of an application for registration and payment of the application

2-13     fee, the secretary of state shall examine the application for

2-14     compliance with this chapter.

2-15           (b)  The applicant shall provide to the secretary of state

2-16     additional pertinent information requested by the secretary of

2-17     state.

2-18           (c)  The secretary of state shall examine applications in the

2-19     order in which the applications are filed, including applications

2-20     concurrently processed for registration of the same or confusingly

2-21     similar marks used in connection with the same or similar goods or

2-22     services.

2-23           Sec. 16.106.  AMENDMENT TO APPLICATION.  (a)  The applicant

2-24     may make an amendment to the application as reasonably requested by

2-25     the secretary of state or in response to a rejection or objection

2-26     to the registration by the secretary of state.

2-27           (b)  An amendment to the application, other than an amendment

2-28     to the date on which the applicant first uses the mark, may be made

2-29     by the applicant's agent.  The secretary of state may require the

2-30     applicant to execute and submit a new application instead of making

2-31     an amendment.

2-32           (c)  An amendment to the application made to the date on

2-33     which the applicant first used the mark  may not specify a date of

2-34     use that is after the date on which the application was filed.

2-35           Sec. 16.107.  DISCLAIMER OF UNREGISTRABLE COMPONENT.  The

2-36     secretary of state may require the applicant to disclaim or the

2-37     applicant may voluntarily disclaim an unregistrable component of a

2-38     mark that is otherwise registrable.  A disclaimer may not prejudice

2-39     or affect the:

2-40                 (1)  rights of the applicant or registrant in the

2-41     disclaimed matter; or

2-42                 (2)  rights of the applicant or registrant to make an

2-43     application to register a mark if the disclaimed matter is

2-44     distinctive of the goods or services of the applicant or

2-45     registrant.

2-46           Sec. 16.108.  CONCURRENT APPLICATIONS FOR SAME OR SIMILAR

2-47     MARK.  (a)  When concurrently processing applications for the same

2-48     or confusingly similar marks used in connection with the same or

2-49     similar goods or services, the secretary of state shall give

2-50     priority to the application that was filed first.  If the

2-51     previously filed application is registered, the secretary of state

2-52     shall reject the other application.

2-53           (b)  The applicant may bring an action for cancellation of

2-54     the previously issued registration on the ground that the applicant

2-55     has a prior or superior right to the mark under this chapter.

2-56           Sec. 16.109.  DENIAL OF REGISTRATION.  (a)  If the secretary

2-57     of state finds that the applicant is not entitled to register the

2-58     mark, the secretary of state shall:

2-59                 (1)  notify the applicant of the reason for the denial

2-60     of the application; and

2-61                 (2)  give the applicant a reasonable amount of time as

2-62     prescribed by the secretary of state in which to:

2-63                       (A)  issue a response to the denial; or

2-64                       (B)  amend the application.

2-65           (b)  The applicant may repeat the examination procedures

2-66     described by Subsection (a) until the earlier of:

2-67                 (1)  the expiration of the period prescribed by the

2-68     secretary of state under Subsection (a)(2); or

2-69                 (2)  the date on which the secretary of state finally

 3-1     refuses registration of the application.

 3-2           (c)  If the secretary of state finally refuses registration

 3-3     of the mark, the applicant may seek a review of the decision of the

 3-4     secretary of state in accordance with the procedures prescribed by

 3-5     this chapter.

 3-6           SECTION 3.  Section 16.11, Business & Commerce Code, is

 3-7     amended to read as follows:

 3-8           Sec. 16.11.  REGISTRATION BY SECRETARY OF STATE.  If the

 3-9     application satisfies the requirements of this chapter, and the

3-10     application [filing] fee has been [is] paid, the secretary of state

3-11     shall:

3-12                 (1)  endorse on the original and the copy of the

3-13     application:

3-14                       (A)  the word "filed"; and

3-15                       (B)  the date on which the application was filed;

3-16                 (2)  file the original in his office;

3-17                 (3)  issue a certificate of registration evidencing

3-18     registration on the date on which the application was filed;

3-19                 (4)  attach the copy to the certificate of

3-20     registration; and

3-21                 (5)  deliver the certificate of registration with the

3-22     attached copy of the application to the applicant.

3-23           SECTION 4.  Section 16.14, Business & Commerce Code, is

3-24     amended by amending Subsection (a) and adding Subsection (d) to

3-25     read as follows:

3-26           (a)  The registration of a mark under this chapter may be

3-27     renewed for an additional 10-year term by filing a renewal

3-28     application within six months before the day the registration

3-29     expires [on a form prescribed by the secretary of state].  The

3-30     registrant shall submit [as part of his renewal application] to the

3-31     secretary of state:

3-32                 (1)  a renewal application [an affidavit] stating that:

3-33                       (A)  the mark is still in use in this state; or

3-34                       (B)  nonuse of the mark in this state:

3-35                             (i)  is due to special circumstances which

3-36     excuse the nonuse; and

3-37                             (ii)  is not due to an intention to abandon

3-38     the mark in this state; and

3-39                 (2)  a renewal application fee of $25 payable to the

3-40     secretary of state.

3-41           (d)  The renewal application must be signed by the registrant

3-42     or the registrant's agent.

3-43           SECTION 5.  Subsection (a), Section 16.15, Business &

3-44     Commerce Code, is amended to read as follows:

3-45           (a)  The secretary of state shall keep for public examination

3-46     a record of all:

3-47                 (1)  marks registered, reregistered, or renewed under

3-48     this chapter; [and]

3-49                 (2)  assignments recorded under Section 16.18 of this

3-50     code; and

3-51                 (3)  other instruments recorded under Section 16.19 of

3-52     this code.

3-53           SECTION 6.  Subchapter B, Chapter 16, Business & Commerce

3-54     Code, is amended by adding Sections 16.19, 16.20, and 16.21 to read

3-55     as follows:

3-56           Sec. 16.19.  RECORDATION OF OTHER INSTRUMENTS.  (a)  An

3-57     instrument that is related to the ownership of a mark registered

3-58     under this subchapter, including articles of merger or conversion

3-59     or a document effecting a name change, may be recorded with the

3-60     secretary of state by:

3-61                 (1)  filing a certified copy of the instrument; and

3-62                 (2)  paying a filing fee in the amount established for

3-63     the filing of an assignment under Section 16.18.

3-64           (b)  This section does not apply to the recording of a

3-65     mortgage or a security interest or other instrument that is

3-66     recordable under the Uniform Commercial Code.

3-67           (c)  A license agreement related to a mark registered under

3-68     this chapter may not be recorded under this section.

3-69           Sec. 16.20.  TRANSFER OF MARK; CHANGE OF REGISTRANT'S NAME.

 4-1     (a)  If ownership of a registered mark is transferred or a

 4-2     registrant's name is changed during the unexpired term of a

 4-3     registration,  a new certificate of registration may be issued for

 4-4     the remainder of the unexpired term of the mark's registration in

 4-5     the name of the transferee or in the new name of the registrant at

 4-6     the request of the registrant or transferee.

 4-7           (b)  A request for a new certificate must be signed by the

 4-8     registrant or transferee and accompanied by a fee in the amount set

 4-9     by Section 405.031(a), Government Code, for an official

4-10     certificate.

4-11           Sec. 16.21.  POWERS OF SECRETARY OF STATE.  (a)  The

4-12     secretary of state may adopt rules relating to the filing of

4-13     documents under this subchapter.

4-14           (b)  The secretary of state may prescribe forms for use in

4-15     filing documents under this subchapter.

4-16           SECTION 7.  Subchapter C, Chapter 16,  Business & Commerce

4-17     Code, is amended by adding Section 16.31 to read as follows:

4-18           Sec. 16.31.  CRIMINAL PENALTY.  (a)  A person commits an

4-19     offense if the person knowingly or intentionally signs and presents

4-20     or causes to be presented for filing a document that may be or is

4-21     required to be filed under this chapter and that:

4-22                 (1)  indicates that the person signing the document has

4-23     the authority to act on behalf of an applicant or registrant when

4-24     the person is not authorized to act on behalf of the applicant or

4-25     registrant;

4-26                 (2)  contains a material false statement; or

4-27                 (3)  is forged.

4-28           (b)  An offense under this section is a Class A misdemeanor

4-29     unless the actor's intent is to defraud or harm another, in which

4-30     event the offense is a state jail felony.

4-31           SECTION 8.  Subsection (b), Section 16.12, and Subsection

4-32     (c), Section 16.14, Business & Commerce Code, are repealed.

4-33           SECTION 9.  This Act takes effect September 1, 1997.

4-34           SECTION 10.  The importance of this legislation and the

4-35     crowded condition of the calendars in both houses create an

4-36     emergency and an imperative public necessity that the

4-37     constitutional rule requiring bills to be read on three several

4-38     days in each house be suspended, and this rule is hereby suspended.

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