SRC-ARR S.B. 571 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 571
76R5766 WP-FBy: Shapiro
State Affairs
3/3/1999
As Filed


DIGEST 

Currently, in Texas, two suits have been brought by third parties under
Section 16.24, Business & Commerce Code, seeking judicial review of the
secretary of state's decision to register a trademark or service mark.
Essentially the suit sought a cancellation of the registered marks. It has
been the position of the secretary of state that Chapter 16, Business &
Commerce Code, does not require the secretary of state as a necessary party
in a suit seeking cancellation of a registered trademark and that a
specific judicial remedy is provided under Section 16.25. S.B. 571 would
amend Chapter 16, Business & Commerce Code, which deals with trademark and
service marks, clarifies the circumstances giving rise to a right of
action, thereby eliminating unnecessary lawsuits brought against  the
secretary of the state.  

PURPOSE

As proposed, S.B. 571 authorizes a judicial review of the secretary of
state's refusal to register or renew a trademark or service mark.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 16.24(a), Business & Commerce Code, to authorize
the applicant or registrant to file suit for review of the secretary of
state's decision in one of the Travis County district courts, if the
secretary of state takes final action refusing to register a mark under
Section 16.109 or to renew the registration of a mark under Section 16.14.
Deletes text authorizing final action  taken or a final decision made by
the secretary of state under this chapter to be reviewed by a suit. Make
conforming changes.  

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.