Posted by Eugene Volokh:
Court Order Seizing Copies of Mongol Biker Gang Symbol:
http://volokh.com/archives/archive_2008_10_19-2008_10_25.shtml#1224876663


   The federal government is prosecuting many members of the Mongols
   biker gang for a wide range of very serious crimes. But the unusual
   twist is that the Mongols symbol was apparently officially trademarked
   by the Mongols, the federal government is seizing the trademark as an
   asset, and a federal court has just [1]ordered the criminal
   defendants, plus their "family members[] and those persons in active
   concert or participation with them," to

     surrender for seizure all products, clothing, vehicles,
     motorcycles, books, posters, merchandise, stationery, or other
     materials bearing the Mongols trademark.

   This strikes me as unjustified by trademark law, and violative of the
   First Amendment. The First Amendment first: The court is ordering the
   seizure of certain expressive materials -- materials that contain a
   particular symbol -- precisely because they contain that symbol. These
   materials don't constitute commercial advertising, which is less
   protected under the First Amendment than is other speech. (Trademark
   law is often justified because it tends to apply to commercial
   advertising, but this isn't so here.) Nor do they fit within any First
   Amendment exception.

   It's true that the symbols could be used in certain ways that are
   constitutionally unprotected, for instance if someone is using the
   symbol to communicate to people in a particular criminal conspiracy
   (e.g., "you'll know your drug courier because he'll be wearing a
   Mongols patch on his right front pocket"), or to convey what the law
   views as a "true threat" to a particular person. The same can be said
   of swastikas, Confederate flags, or peace symbols. But that would
   justify punishing the people who are using the symbol in a particular
   illegal way, upon proof that they are so using it -- not a demand that
   all copies of the symbol be surrendered. (Likewise, if someone is
   convicted of a crime, his speech may be restricted even while he's not
   in prison but is out on probation or parole. But that, too, requires a
   criminal conviction, and not just being indicted, or being a family
   member of an indicted person.)

   Now courts do allow the seizure of trademarked goods, generally goods
   that are intended to be sold, when the goods were produced without the
   trademark owner's permission. In some situations, that's clearly
   constitutionally permissible, for instance if a store is selling
   counterfeit trademarked clothing. The counterfeit trademark conveys
   false information to the consumer about the origin of the clothing,
   and thus the products as they are displayed by the seller qualify as
   constitutionally unprotected false commercial advertising (here, the
   trademark displayed on the clothing in the store is itself advertising
   for the clothing).

   In other situations, the First Amendment justification for seizures of
   trademarked goods may be less clear. But in any case, the rationale is
   that the goods were produced without the trademark owner's permission,
   and are thus contraband. Here, unless I'm missing something, the goods
   were produced with the Mongol Nation's blessing; it's just that the
   new temporary (and perhaps eventually permanent) owner of the
   trademark now wants to stop their use.

   I'm not a trademark law expert, but I'm pretty sure the new owner --
   whether government or not -- isn't authorized by trademark law to bar
   such uses. For instance, if you bought a USC T-shirt with USC's
   permission (or got it for free from USC), and now USC's trademark is
   acquired by someone else who doesn't want the T-shorts worn, the new
   owner can't retroactively claim all the shirts are contraband.

   The new owner might be able to bar the commercial manufacturing and
   distribution of new shirts with the symbol. But it certainly can't
   stop the wearing of shirts that had already been produced and
   distributed with USC's blessing. And it probably can't even stop the
   resale of such shirts (or other materials), because the first sale
   doctrine allows someone who lawfully acquired trademarked goods to
   resell them (at least so long as the resale isn't misleading).

   Nor does trademark law, to my knowledge, have any doctrine that
   somehow avoids these results when the initial trademark owner
   committed various crimes, or when the trademark symbolizes
   criminality. At most, trademarks that are associated with crime could
   be denied registration because they are "immoral or scandalous," but
   that would limit the rights of trademark owners who want to sue for
   infringement -- it wouldn't increase anyone's power to block the
   wearing of such marks.

   It's not clear to me that the government can ever use intellectual
   property law simply to suppress symbols that the government thinks
   (even rightly thinks) are supporting and promoting evil behavior. In
   such a case, the Court's justifications for essentially recognizing
   intellectual-property-based exceptions to First Amendment protection
   (e.g., preventing consumer confusion, maintaining some commercial
   property owners' rights to control the associations of their
   trademark, providing an incentive to create, and the like) wouldn't
   apply, and I don't think the exceptions should apply either.

   But in any event, even if the government has exactly the same power to
   enforce seized trademarks, for any reason it wishes, as a private
   property owner would have to enforce its trademarks, I don't see how
   the power would extend to this situation.

   Finally, I should stress that none of this is a criticism of the
   general prosecution of the Mongols -- it sounds like many of them
   committed very serious crimes, and they should be seriously punished
   for them. But I don't want to see this case become the occasion for
   further broadening of intellectual property-based speech restrictions,
   or for the recognition of a government power to suppress symbols (even
   ones that symbolize bad organizations, and that are often used by bad
   people).

   For a newspaper account of the matter, see [2]here.

References

   1. http://volokh.com/files/mongols.pdf
   2. 
http://www.nytimes.com/aponline/us/AP-Biker-Gang-Busts.html?_r=2&oref=slogin&oref=slogin

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