Step aside, Hollywood – trademark protection is the real star! This week's BL Business Branding Newsletter tackles a new lawsuit filed by tech industry leader Apple Inc. against a growing movie theater chain it claims is taking a bite out of its well-protected brand identity.
At the start of August, tech and streaming giant Apple Inc. filed a lawsuit in Massachusetts against a growing network of Apple Cinemas movie theaters (and their parent company, Sand Media Corp, Inc.), claiming they are deliberately infringing on Apple's trademarks and misleading consumers into believing the theater chain is affiliated with the massive Apple brand.
Apple is no stranger to the movie and entertainment market, growing from creating video editing software in the 1990s, to supporting downloadable video content on iTunes, all the way to producing original streaming movies and shows on APPLE TV+ in 2019. As Apple has grown its entertainment empire, it has maintained an active list of trademarks, making it one of the most recognizable brands in the world today.
Until recently, Apple Cinemas was a limited movie theater chain that began in 2013 and operated primarily in the Northeastern U.S.. The small scale of the theater and its geographic limitations are likely how the chain avoided running afoul of Apple's trademark defense until last year.
Now, it is reportedly looking to expand, aiming for 100 locations nationwide over the next decade as it looks to become one of the largest theater chains in the country. Just this week, Apple Cinemas announced a deal with IMAX to add five premium screens over the next two years. As part of these expansion efforts, Apple Cinemas attempted to trademark its name in early 2024. The application was denied by the USPTO in October 2024, which unsurprisingly cited a "likelihood of confusion" with several of Apple's existing trademarks as the basis for the application's suspension. Apple then sent a cease-and-desist letter to Apple Cinemas, which Apple claims was entirely ignored.
Apple Cinema has nevertheless opened several new locations this year, including one in the San Francisco Bay area, right in Apple's backyard. According to the lawsuit, Apple believes this was no coincidence, alleging that Apple Cinemas has deliberately targeted theater locations that intersect with Apple's key places of business, increasing the likelihood that consumers will think the two companies are connected.
Apple claims that Apple Cinemas is attempting to profit off the brand recognition and consumer trust the tech company has carefully curated over the past few decades. It has asked the court to prevent Apple Cinemas from using the "Apple" name, along with requesting monetary damages. Apple Cinemas has not yet responded to the lawsuit.
What Can Businesses Learn From This?
From Apple's perspective, this lawsuit is a strong defensive move to protect the image and strength of its brand and trademark. This is far from the first case we've discussed where a likelihood of confusion has come into play when attempting to enforce a trademark infringement action. However, Apple's lawsuit deliberately includes actual examples of consumers being confused about the relationship between the two companies throughout the complaint. By featuring screenshots and quotes of real consumers, rather than making unsubstantiated claims, Apple is laying a strong foundation for its accusation that it is being harmed by Apple Cinema's actions. Maintaining strong records and tracking the impact that potentially infringing actions have on your business can help support your claim if and when the need to file a lawsuit arises.
From Apple Cinema's perspective, this issue was completely avoidable. Despite being in operation since 2013, the company did not file for a trademark until 2024 – 11 years after it opened its doors and had already cooked up new plans to expand. Now that the trademark was refused, after it's plans to scale are already in motion, the theater chain is in a tough spot, and is now facing a lawsuit from one of the most powerful companies on earth.
Had a trademark application for the same name been filed closer to the business's inception, even though it would likely have still been denied for the same reasons, the company would have had more time to pivot and possibly rebrand before beginning plans to expand without any trademark protections in place. Securing timely intellectual property protections for your business's name is extremely important and should not be left to the last minute – it should be one of the foundational pieces of your intellectual property portfolio. Otherwise, you could face a potential rebranding crisis in the middle of your growth.
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