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What happens when a junior trademark holder’s business becomes so popular and well known that it threatens to swamp the reputation of a senior mark holder? The senior mark holder brings a trademark infringement case alleging “reverse confusion” among its potential customers. This was the scenario the Ninth Circuit faced in its recent decision in:
Ironhawk Technologies, Inc. v. Dropbox, Inc. (decided April 20, 2021).
Ironhawk develops computer software that uses compression technology to allow for the efficient transfer of data, especially in “bandwidth-challenged environments.” It has marketed its software under the name “SmartSync” since 2004 and obtained a trademark for SmartSync in 2007. It sells its software primarily to the United States Navy but, in 2013, sold its software to at least one major pharmacy chain.