J & J Sues the American Red Cross for Trademark Infringement
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The NY Times reported today that the New Jersey-based, health care giant, Johnson & Johnson has sued the American Red Cross for trademark infringement. According to the article, J & J actually owns the American Red Cross symbol–a fact that is not disputed by either party. Back in 1895, J & J and the American Red Cross agreed that the American Red Cross could use the J & J symbol for not-for-profit activities. Over the years since the agreement was struck, the American Red Cross symbol has become synonymous with disaster relief and humanitarian aid. However, over the past few years, the American Red Cross has entered into licensing agreements with several for-profit companies who use the Red Cross symbol to sell their products. Licensing fees from the sale of these goods has been reported to net the American Red Cross about $10.0 million per year (the American Red Cross purportedly uses the licensing revenues for disaster aid and other humanitarian activities). Nevertheless, it seems likely to me that the American Red Cross violated the original trademark agreement that it entered into with J & J over 100 years ago. Consequently, I believe that the American Red Cross ought to stop licensing its symbol (actually J & J’s symbol) for for-profit activities. After all, the American Red Cross is registered as a not-for-profit entity!
On the surface, the legal action taken by J & J against the American Red Cross may appear to be a PR nightmare for J & J– it looks as though a greedy, multi-national for-profit corporation is suing an American icon of disaster relief and humanitarian aid. However, in my opinion, business is business, and the American Red Cross appears to have violated a business agreement it made with J & J. Despite what the CEO of the American Red Cross may say publicly, the Red Cross has erred in this instance. As much as I hate to admit it, corporate America is right this time! Until next time…
