It is indicated by the common law that the rights of trademark that are established out of utilization are not under the governance of the statute. Instead, the trademark rights of common law have been established within a scheme of rights have judicial creation and under the governance of the state law. A system established by the federal government, federal registration will not be needed for the establishment of common law rights within a mark, and it is also not needed to begin with the utilization of a mark. However, if available, federal registration is most of the time recommended as it provides the owner of trademark substantial extra rights that are not provided under the common law.
The rights of trademark under common law are restricted to the geographical location across which there is use of the mark. Thus, if there is sale of a coffee blend in California only under the name of “Blaster”, the rights of trademark under this name will exist in California only. If another retailer of coffee starts the marketing of a different blend under the same name in New York, under the assumption that they had no information about the company in California, then there seemed to be no infringement of trademark. However, if the company of New York put in efforts of selling their blend of coffee all across the nation, they would consider discovering that the common law rights of the company in California to mark for preventing them to enter the market of California.
Even though the courts hold the tendency of viewing that preventing the utilization of a color will put a competitors at a certain limitation, the color should pass the test of functionality. Considering this bar of functionality, it has been specifically stated in the Lanham Act that no trademark considering which there can be differentiation of applicant’s good from the goods of others will not be able to register over the principle registration on accounting the nature, until or unless it will consist of a mark, which will comprise of matter that can be considered as functional on the whole.