83_FR_3083 83 FR 3068 - Rules and Regulations Under the Textile Fiber Products Identification Act

83 FR 3068 - Rules and Regulations Under the Textile Fiber Products Identification Act

FEDERAL TRADE COMMISSION

Federal Register Volume 83, Issue 15 (January 23, 2018)

Page Range3068-3071
FR Document2018-01202

The Commission amends the Rules and Regulations Under the Textile Fiber Products Identification Act (``Textile Rules'') to delete the requirement that an owner of a registered word trademark, used as a house mark, furnish the FTC with a copy of the mark's registration with the United States Patent and Trademark Office (``USPTO'') before using the mark on labels.

Federal Register, Volume 83 Issue 15 (Tuesday, January 23, 2018)
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Rules and Regulations]
[Pages 3068-3071]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01202]


=======================================================================
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FEDERAL TRADE COMMISSION

16 CFR Part 303

RIN 3084-AB47


Rules and Regulations Under the Textile Fiber Products 
Identification Act

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Final rule.

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SUMMARY: The Commission amends the Rules and Regulations Under the 
Textile Fiber Products Identification Act (``Textile Rules'') to delete 
the

[[Page 3069]]

requirement that an owner of a registered word trademark, used as a 
house mark, furnish the FTC with a copy of the mark's registration with 
the United States Patent and Trademark Office (``USPTO'') before using 
the mark on labels.

DATES: Effective on February 22, 2018.

FOR FURTHER INFORMATION CONTACT: Jock Chung, (202) 326-2984, Attorney, 
Division of Enforcement, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Textile Fiber Products Identification Act (``Textile Act'') \1\ 
and implementing Textile Rules require marketers to, among other 
things, attach a label to each covered textile fiber product 
disclosing: (1) The generic names and percentages by weight of the 
constituent fibers in the product; (2) the name under which the 
manufacturer or other responsible company does business, i.e., the 
product's marketer's name,\2\ or other specified identifier in lieu of 
that name,\3\ and (3) the name of the country where the product was 
processed or manufactured.\4\ Section 303.19(a) allows the owners of 
registered word trademarks who use these trademarks as house marks to 
disclose such trademarks in lieu of their names. However, before doing 
so, the company must file a copy of their USPTO registration with the 
Commission. The Commission imposed this requirement in 1959, presumably 
to obviate the need for the Commission to obtain paper copies of 
registrations from the USPTO. However, registered house marks now can 
be found by searching online or at the USPTO's website (www.uspto.gov).
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    \1\ 15 U.S.C. 70 et seq.
    \2\ 15 U.S.C. 70b(b)(3).
    \3\ 16 CFR 303.19.
    \4\ See 15 U.S.C. 70b(b).
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II. Amendments to the Textile Rules

    In a Notice of Proposed Rulemaking published on June 28, 2017,\5\ 
the Commission proposed amending Section 303.19 to: (1) Delete the 
requirement that an owner of a registered word trademark used as a 
house mark furnish the FTC with a copy of the mark's registration with 
the USPTO before using the mark on labels, and (2) no longer restrict 
the use of such trademarks to only those employed as house marks. The 
Commission received three comments in response.\6\
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    \5\ 82 FR 29251 (June 28, 2017).
    \6\ American Apparel & Footwear Association (AAFA) (#00005); 
Jonathan Appelbaum (#00003); and De La Cruz (#00002). See https://www.ftc.gov/policy/public-comments/2017/07/initiative-708.
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    As discussed below, based on the record, the Commission has 
determined to amend the Textile Rules to delete the requirement 
trademark owners furnish the FTC with a copy of the mark's USPTO 
registration before using the mark on labels. Based on the comments 
received, however, the Commission declines to eliminate the provision 
allowing only trademarks used as house marks.

A. Deleting the Registration Submission Requirement

    Comments: The AAFA and Appelbaum comments supported the 
Commission's proposal to eliminate the requirement that businesses 
provide the Commission with a copy of a word trademark's USPTO 
registration prior to using these marks. AAFA asserted that simplifying 
the Textile Rules would ``eliminate confusion, both for the business 
community and for consumers.'' \7\ De La Cruz, however, opposed this 
proposed amendment, arguing that the current Section 303.19(a) ``keeps 
trade in order'' and ``discourages trademark infringement,'' \8\ but 
did not offer support for these contentions.
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    \7\ AAFA, https://www.ftc.gov/system/files/documents/public_comments/2017/07/00005-141123.pdf, p. 1; Appelbaum, https://www.ftc.gov/system/files/documents/public_comments/2017/07/00003-141029.pdf, p. 1.
    \8\ De La Cruz, https://www.ftc.gov/policy/public-comments/2017/07/06/comment-00002, p. 1.
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    Discussion: Based on the record, the Commission amends Section 
303.19(a) of the Textile Rules to delete the requirement that an owner 
of a registered word trademark furnish the FTC with a copy of the 
mark's registration with the USPTO prior to using the mark in lieu of a 
marketer's name. Commenters and the Commission's experience indicate 
that eliminating the submission requirement will reduce compliance 
costs for marketers without reducing protections for consumers. 
Specifically, the Commission and consumers can readily identify a 
registrant by searching for a marketer's house mark on the USPTO's 
online database or other online resources.\9\ Moreover, Commission 
staff has not consulted the files of house marks submitted to the 
Commission for many years, if ever, nor has it received requests from 
the public to do so. The Commission therefore concludes that the 
current submission requirement is neither necessary nor useful to 
enable the Commission or consumers to identify marketers of textile 
fiber products.
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    \9\ As discussed below, however, although simple searches can 
determine registrants for house marks, it is far more difficult to 
determine relevant registrations for some word trademarks.
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B. Word Trademarks Other Than House Marks as Marketer Identifiers

    Comments: Commenters Appelbaum and De La Cruz opposed the 
Commission's proposal to eliminate the provision allowing only 
trademarks used as house marks to be used in lieu of marketers' names. 
Appelbaum asserted that the proposed amendment was premised on an 
assumption a word trademark is ``unique,'' when, in fact, word 
trademarks may be ``very similar,'' preventing consumers from 
effectively searching online for business owners.\10\ Appelbaum further 
noted that, in contrast, house marks did not present this problem 
because ``a house mark is more uniquely associated with a business and 
less likely to be imitated.'' \11\ De La Cruz stated without further 
analysis that the current Section 303.19(a) ``keeps trade in order'' 
and ``discourages trademark infringement.'' \12\ The AAFA supported 
this proposed amendment without explanation.\13\
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    \10\ Appelbaum, p. 1.
    \11\ Id.
    \12\ De La Cruz, p. 1.
    \13\ AAFA, p. 1.
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    Discussion: The Commission declines to amend Section 303.19(a) of 
the Textile Rules to permit the use of word trademarks other than house 
marks in lieu of marketers' names. The comments and staff research 
indicate that such an amendment would impose new burdens and additional 
costs on consumers and others to identify marketers of textile fiber 
products.
    In particular, the record indicates that it can be difficult to 
find the identity of a specific registrant using a word trademark, 
rather than a house mark. Word trademarks that are not house marks can 
be registered for specific goods or services, and identical word 
trademarks can be registered numerous times for different goods or 
services.\14\ Consequently, simple searches on the USPTO's online 
database can produce

[[Page 3070]]

hundreds or thousands of responses.\15\ Although sophisticated searches 
produce far fewer responses, such searches may require more training 
and expertise than many consumers are likely to possess.\16\ In 
contrast, to register a house mark as a trademark, the USPTO requires 
that an applicant indicate that it will use that house mark ``for a 
full line of products'' so that consumers can identify a manufacturer 
or seller from that house mark.\17\ Therefore, it is significantly 
easier to identify a house mark owner from a USPTO search.\18\
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    \14\ For example, the USPTO has 148 registrations for the 
trademark ``Acme'' for different types of goods, including boat 
propellers (AMG Operations), beer (North Coast Brewing Co., Inc.), 
and firearm targets (Clifford J. Brown). Three of these 
registrations are for products covered by the Textile Rules: T-
shirts (Acme Anvils, LLC), T-shirts (Time Warner Entertainment 
Company, L.P.), and quilts (Pillowtex Corp.).
    \15\ For instance, a simple search for ``Acme'' on the USPTO's 
website currently produces 527 registrations; a simplesearch for 
``Cotton'' produces 2,761 registrations. Similarly, searches on 
standard search engines for common word trademarks can produce 
enormous numbers of responses. Searching for ``Acme'' on Google 
returns almost 57 million results, with the first results 
referencing supermarkets, cartoons, packaging-supplies, pies, and 
furniture.
    \16\ For example, to search on the USPTO website for only 
``Acme,'' and exclude the 379 registrations for terms that include 
Acme, such as ``Pro Acme,'' a user must conduct a ``structured' 
search on the USPTO database and specify that the search is on the 
``FULL MARK'' field.
    \17\ USPTO ``Trademark Manual of Examining Procedure April 
2017'' 1402.03(b) House Marks, available at https://tmep.uspto.gov/RDMS/TMEP/current#/current/TMEP-1400d1e2208.html.
    \18\ For example, a simple search on the USPTO for the house 
mark ``Kirkland Signature'' returns 138 registrations, all owned by 
Costco Wholesale Corporation. Therefore, consumers can review any of 
the registrations and determine the house mark owner, even though 
only one of the registrations is for clothing. Online searches for 
``Kirkland Signature'' also readily return references to Costco 
Wholesale Corporation.
    RN numbers also already provide a free, convenient alternative 
to names for marketers that do not own house marks. The Commission 
has recently revised the RN Database at https://rn.ftc.gov/Account/BasicSearch, so consumers can easily identify companies from RN 
numbers.
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    Accordingly, the Commission will continue to allow only owners of 
registered word trademarks who use these trademarks as house marks to 
disclose such trademarks in lieu of their names.

III. Paperwork Reduction Act

    The Textile Rules contain various ``collection of information'' 
(e.g., disclosure and recordkeeping) requirements for which the 
Commission has obtained clearance from the Office of Management and 
Budget (``OMB'') under the Paperwork Reduction Act (``PRA'').\19\ The 
amended Textile Rules do not impose any additional collection of 
information requirements.
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    \19\ 44 U.S.C. 3501 et seq. In 2015, the Commission published 
its PRA burden estimates for the current information collection 
requirements under the Rules. See 80 FR 1411, 1413 (Jan. 9, 2015) 
and 80 FR 14387, 14388 (Mar. 19, 2015). In April 2015, OMB granted 
clearance through April 30, 2018, for these requirements and the 
associated PRA burden estimates. The OMB control number is 3084-
0101.
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IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
that the Commission provide an Initial Regulatory Flexibility Analysis 
(IRFA) with a Proposed Rule, and a Final Regulatory Flexibility 
Analysis (FRFA) with the final Rule, unless the Commission certifies 
that the Rule will not have a significant economic impact on a 
substantial number of small entities.\20\
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    \20\ 5 U.S.C. 603-605.
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    The Commission anticipates that the final amendment will not have a 
significant economic impact on a substantial number of small entities. 
In the Commission's view, the amendment should not increase the costs 
of small entities that manufacture or import textile fiber products, 
but may reduce costs associated with furnishing a copy of a registered 
word trademark used as a house mark to the FTC. Therefore, based on 
available information, the Commission certifies that amending the 
Textile Rules will not have a significant economic impact on a 
substantial number of small businesses. Although the Commission 
certifies under the RFA that the amendment will not have a significant 
impact on a substantial number of small entities, the Commission has 
determined, nonetheless, that it is appropriate to publish a Final 
Regulatory Flexibility Analysis to inquire into the impact of the 
proposed amendment on small entities. Therefore, the Commission has 
prepared the following analysis:
    Although the Commission has certified under the RFA that the 
amendments would not have a significant impact on a substantial number 
of small entities, the Commission has determined, nonetheless, that it 
is appropriate to publish an FRFA in order to explain the impact of the 
amendments on small entities as follows:

A. Description of the Reasons That Action by the Agency Is Being Taken

    The Commission is amending the Rules to provide greater flexibility 
in complying with the Rules' disclosure requirements by permitting 
textile fiber product marketers to use registered house marks to 
identify themselves without sending registration copies to the 
Commission.

B. Issues Raised by Comments in Response to the IRFA

    The Commission did not receive any comments specifically related to 
the impact of the final amendment on small businesses. In addition, the 
Commission did not receive any comments filed by the Chief Counsel for 
Advocacy of the Small Business Administration.

C. Estimate of Number of Small Entities To Which the Amendments Will 
Apply

    Under the Small Business Size Standards issued by the Small 
Business Administration, textile apparel manufacturers qualify as small 
businesses if they have 500 or fewer employees. Clothing wholesalers 
qualify as small business if they have 100 or fewer employees. The 
Commission's staff has estimated that approximately 22,642 textile 
fiber product manufacturers and importers are covered by the Textile 
Rules' disclosure requirements.\21\ A substantial number of these 
entities likely qualify as small businesses. The Commission estimates 
that the amendment will not have a significant impact on small 
businesses because it does not impose any new obligations on them, but 
may reduce filing costs associated with the Textile Rules.
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    \21\ 80 FR 1411, 1413 (Jan. 9, 2015).
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D. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The amendment deletes a filing requirement, thus providing greater 
flexibility to companies covered by the Textile Rules. The amendment is 
not expected to increase any reporting, recordkeeping, or other 
requirements associated with the Textile Rules, and is expected to 
decrease reporting requirements.

E. Description of Steps Taken To Minimize Significant Economic Impact, 
If Any, on Small Entities, Including Alternatives

    The Commission did not propose any specific small entity exemption 
or other significant alternatives because the amendment is expected to 
decrease reporting requirements and will not impose any new 
requirements or compliance costs. No comments identified any new 
compliance costs, and several comments argued the amendment will reduce 
compliance costs.

List of Subjects in 16 CFR Part 303

    Advertising, Labeling, Recordkeeping, Textile fiber products.

    For the reasons discussed in the preamble, the Commission amends 
part

[[Page 3071]]

303 of title 16, Code of Federal Regulations, as follows:

PART 303--RULES AND REGULATIONS UNDER THE TEXTILE FIBER PRODUCTS 
IDENTIFICATION ACT

0
1. The authority citation for part 303 continues to read:

    Authority:  15 U.S.C. 70 et seq.


0
2. Amend Sec.  303.19 by revising paragraph (a) to read as follows:


Sec.  303.19   Name or other identification required to appear on 
labels.

    (a) The name required by the Act to be used on labels shall be the 
name under which the person is doing business. Where a person has a 
word trademark, used as a house mark, registered in the United States 
Patent Office, such word trademark may be used on labels in lieu of the 
name otherwise required. No trademark, trade names, or other names 
except those provided for above shall be used for required 
identification purposes.
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2018-01202 Filed 1-22-18; 8:45 am]
 BILLING CODE 6750-01-P



                                              3068              Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations

                                              DC 20591; telephone: (202) 267–8783.                    will be published subsequently in the                  Lists of Subjects in 14 CFR Part 71
                                              The Order is also available for                         Order.                                                   Airspace, Incorporation by reference,
                                              inspection at the National Archives and                                                                        Navigation (air).
                                                                                                      Availability and Summary of
                                              Records Administration (NARA). For
                                                                                                      Documents for Incorporation by                         Adoption of the Amendment
                                              information on the availability of this
                                                                                                      Reference
                                              material at NARA, call (202) 741–6030,                                                                           In consideration of the foregoing, the
                                              or go to https://www.archives.gov/                         This document amends FAA Order                      Federal Aviation Administration
                                              federal-register/cfr/ibr-locations.html.                7400.11B, Airspace Designations and                    amends 14 CFR part 71 as follows:
                                                FAA Order 7400.11, Airspace                           Reporting Points, dated August 3, 2017,
                                              Designations and Reporting Points, is                   and effective September 15, 2017. FAA                  PART 71—DESIGNATION OF CLASS A,
                                              published yearly and effective on                       Order 7400.11B is publicly available as                B, C, D, AND E AIRSPACE AREAS; AIR
                                              September 15.                                           listed in the ADDRESSES section of this                TRAFFIC SERVICE ROUTES; AND
                                              FOR FURTHER INFORMATION CONTACT: John
                                                                                                      document. FAA Order 7400.11B lists                     REPORTING POINTS
                                              Fornito, Operations Support Group,                      Class A, B, C, D, and E airspace areas,
                                                                                                      air traffic service routes, and reporting              ■ 1. The authority citation for part 71
                                              Eastern Service Center, Federal Aviation
                                                                                                      points.                                                continues to read as follows:
                                              Administration, P.O. Box 20636,
                                              Atlanta, Georgia 30320; telephone (404)                 The Rule                                                 Authority: 49 U.S.C. 106(g); 40103, 40113,
                                              305–6364.                                                                                                      40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
                                                                                                        This action amends Title 14 Code of                  1963 Comp., p. 389.
                                              SUPPLEMENTARY INFORMATION:                              Federal Regulations (14 CFR) part 71 by
                                                                                                      correcting the geographic coordinates of               § 71.1       [Amended]
                                              Authority for This Rulemaking
                                                                                                      the heliport reference point and point in              ■ 2. The incorporation by reference in
                                                The FAA’s authority to issue rules                    space coordinates of Kane Community                    14 CFR 71.1 of Federal Aviation
                                              regarding aviation safety is found in                   Hospital Heliport in Class E airspace                  Administration Order 7400.11B,
                                              Title 49 of the U.S. Code. Subtitle 1,                  extending upward from 700 feet above                   Airspace Designations and Reporting
                                              Section 106, describes the authority of                 the surface to be in concert with the                  Points, dated August 3, 2017, effective
                                              the FAA Administrator. Subtitle VII,                    FAA’s aeronautical database.                           September 15, 2017, is amended as
                                              Aviation Programs, describes in more                      This is an administrative change and                 follows:
                                              detail the scope of the agency’s                        does not affect the boundaries, or
                                              authority. This rulemaking is                           operating requirements of the airspace,                Paragraph 6005 Class E Airspace Areas
                                              promulgated under the authority                                                                                Extending Upward From 700 Feet or More
                                                                                                      therefore, notice and public procedure                 Above the Surface of the Earth.
                                              described in Subtitle VII, Part A,                      under 5 U.S.C. 553(b) are unnecessary.
                                              Subpart I, Section 40103. Under that                                                                           *        *      *    *    *
                                              section, the FAA is charged with                        Regulatory Notices and Analyses
                                                                                                                                                             AEA PA E5 Kane, PA [Amended]
                                              prescribing regulations to assign the use                  The FAA has determined that this                    Kane Community Hospital Heliport, Kane,
                                              of airspace necessary to ensure the                     regulation only involves an established                     PA
                                              safety of aircraft and the efficient use of             body of technical regulations for which                  (Lat. 41°40′16″ N, long. 78°49′04″ W)
                                              airspace. This regulation is within the                 frequent and routine amendments are                    Point in Space Coordinates
                                              scope of that authority as it makes a                   necessary to keep them operationally                     (Lat. 41°39′58″ N, long. 78°52′09″ W)
                                              clerical correction to the geographic                   current. Therefore, this regulation: (1) Is              That airspace extending upward from 700
                                              coordinates of Kane Community                           not a ‘‘significant regulatory action’’                feet above the surface within a 6-mile radius
                                              Hospital Heliport, Kane, PA.                            under Executive Order 12866; (2) is not                of the Point in Space coordinates serving
                                                                                                      a ‘‘significant rule’’ under DOT                       Kane Community Hospital Heliport.
                                              History
                                                                                                      Regulatory Policies and Procedures (44                   Issued in College Park, Georgia, on January
                                                 The FAA Aeronautical Information                     FR 11034; February 26, 1979); and (3)                  16, 2018.
                                              Services branch found the Class E                       does not warrant preparation of a                      Ryan W. Almasy,
                                              airspace extending upward from 700                      regulatory evaluation as the anticipated               Manager, Operations Support Group, Eastern
                                              feet above the surface at Kane                          impact is so minimal. Since this is a                  Service Center, Air Traffic Organization.
                                              Community Hospital Heliport, Kane,                      routine matter that only affects air traffic           [FR Doc. 2018–01172 Filed 1–22–18; 8:45 am]
                                              PA, along with the related point in                     procedures and air navigation, it is                   BILLING CODE 4910–13–P
                                              space coordinates, were incorrect as                    certified that this rule, when
                                              published in FAA Order 7400.11B,                        promulgated, does not have a significant
                                              Airspace Designations and Reporting                     economic impact on a substantial
                                              Points. The latitude degree for the                                                                            FEDERAL TRADE COMMISSION
                                                                                                      number of small entities under the
                                              heliport and the longitude degree for the               criteria of the Regulatory Flexibility Act.            16 CFR Part 303
                                              point in space coordinates were
                                              incorrect in the Order.                                 Environmental Review                                   RIN 3084–AB47
                                                 A clerical amendment in the legal                       The FAA has determined that this
                                              description also is made to the airspace                action qualifies for categorical exclusion             Rules and Regulations Under the
                                              designation, removing the name of the                   under the National Environmental                       Textile Fiber Products Identification
                                              town listed before the airport name                     Policy Act in accordance with FAA                      Act
                                              description.                                            Order 1050.1F, ‘‘Environmental                         AGENCY:   Federal Trade Commission
sradovich on DSK3GMQ082PROD with RULES




                                                 Class E airspace designations are                    Impacts: Policies and Procedures,’’                    (‘‘FTC’’ or ‘‘Commission’’).
                                              published in paragraph 6005 of FAA                      paragraph 5–6.5.a. This airspace action                ACTION: Final rule.
                                              Order 7400.11B dated August 3, 2017,                    is not expected to cause any potentially
                                              and effective September 15, 2017, which                 significant environmental impacts, and                 SUMMARY:    The Commission amends the
                                              is incorporated by reference in 14 CFR                  no extraordinary circumstances exist                   Rules and Regulations Under the Textile
                                              part 71.1. The Class E airspace                         that warrant preparation of an                         Fiber Products Identification Act
                                              designations listed in this document                    environmental assessment.                              (‘‘Textile Rules’’) to delete the


                                         VerDate Sep<11>2014   15:56 Jan 22, 2018   Jkt 244001   PO 00000   Frm 00010   Fmt 4700   Sfmt 4700   E:\FR\FM\23JAR1.SGM    23JAR1


                                                                Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations                                                    3069

                                              requirement that an owner of a                          house marks. The Commission received                   requests from the public to do so. The
                                              registered word trademark, used as a                    three comments in response.6                           Commission therefore concludes that
                                              house mark, furnish the FTC with a                         As discussed below, based on the                    the current submission requirement is
                                              copy of the mark’s registration with the                record, the Commission has determined                  neither necessary nor useful to enable
                                              United States Patent and Trademark                      to amend the Textile Rules to delete the               the Commission or consumers to
                                              Office (‘‘USPTO’’) before using the mark                requirement trademark owners furnish                   identify marketers of textile fiber
                                              on labels.                                              the FTC with a copy of the mark’s                      products.
                                                                                                      USPTO registration before using the
                                              DATES:   Effective on February 22, 2018.                mark on labels. Based on the comments                  B. Word Trademarks Other Than House
                                                                                                      received, however, the Commission                      Marks as Marketer Identifiers
                                              FOR FURTHER INFORMATION CONTACT:   Jock
                                              Chung, (202) 326–2984, Attorney,                        declines to eliminate the provision                       Comments: Commenters Appelbaum
                                              Division of Enforcement, Bureau of                      allowing only trademarks used as house                 and De La Cruz opposed the
                                              Consumer Protection, Federal Trade                      marks.                                                 Commission’s proposal to eliminate the
                                              Commission, 600 Pennsylvania Avenue                     A. Deleting the Registration Submission                provision allowing only trademarks
                                              NW, Washington, DC 20580.                               Requirement                                            used as house marks to be used in lieu
                                              SUPPLEMENTARY INFORMATION:                                 Comments: The AAFA and                              of marketers’ names. Appelbaum
                                                                                                      Appelbaum comments supported the                       asserted that the proposed amendment
                                              I. Background                                                                                                  was premised on an assumption a word
                                                                                                      Commission’s proposal to eliminate the
                                                                                                      requirement that businesses provide the                trademark is ‘‘unique,’’ when, in fact,
                                                 The Textile Fiber Products
                                                                                                      Commission with a copy of a word                       word trademarks may be ‘‘very similar,’’
                                              Identification Act (‘‘Textile Act’’) 1 and
                                                                                                      trademark’s USPTO registration prior to                preventing consumers from effectively
                                              implementing Textile Rules require
                                                                                                      using these marks. AAFA asserted that                  searching online for business owners.10
                                              marketers to, among other things, attach
                                                                                                      simplifying the Textile Rules would                    Appelbaum further noted that, in
                                              a label to each covered textile fiber
                                                                                                      ‘‘eliminate confusion, both for the                    contrast, house marks did not present
                                              product disclosing: (1) The generic                                                                            this problem because ‘‘a house mark is
                                              names and percentages by weight of the                  business community and for
                                                                                                      consumers.’’ 7 De La Cruz, however,                    more uniquely associated with a
                                              constituent fibers in the product; (2) the                                                                     business and less likely to be
                                              name under which the manufacturer or                    opposed this proposed amendment,
                                                                                                      arguing that the current Section                       imitated.’’ 11 De La Cruz stated without
                                              other responsible company does                                                                                 further analysis that the current Section
                                              business, i.e., the product’s marketer’s                303.19(a) ‘‘keeps trade in order’’ and
                                                                                                      ‘‘discourages trademark infringement,’’ 8              303.19(a) ‘‘keeps trade in order’’ and
                                              name,2 or other specified identifier in                                                                        ‘‘discourages trademark
                                              lieu of that name,3 and (3) the name of                 but did not offer support for these
                                                                                                      contentions.                                           infringement.’’ 12 The AAFA supported
                                              the country where the product was                                                                              this proposed amendment without
                                              processed or manufactured.4 Section                        Discussion: Based on the record, the
                                                                                                      Commission amends Section 303.19(a)                    explanation.13
                                              303.19(a) allows the owners of
                                              registered word trademarks who use                      of the Textile Rules to delete the                        Discussion: The Commission declines
                                              these trademarks as house marks to                      requirement that an owner of a                         to amend Section 303.19(a) of the
                                              disclose such trademarks in lieu of their               registered word trademark furnish the                  Textile Rules to permit the use of word
                                              names. However, before doing so, the                    FTC with a copy of the mark’s                          trademarks other than house marks in
                                              company must file a copy of their                       registration with the USPTO prior to                   lieu of marketers’ names. The comments
                                              USPTO registration with the                             using the mark in lieu of a marketer’s                 and staff research indicate that such an
                                              Commission. The Commission imposed                      name. Commenters and the                               amendment would impose new burdens
                                              this requirement in 1959, presumably to                 Commission’s experience indicate that                  and additional costs on consumers and
                                              obviate the need for the Commission to                  eliminating the submission requirement                 others to identify marketers of textile
                                              obtain paper copies of registrations from               will reduce compliance costs for                       fiber products.
                                              the USPTO. However, registered house                    marketers without reducing protections                    In particular, the record indicates that
                                              marks now can be found by searching                     for consumers. Specifically, the                       it can be difficult to find the identity of
                                              online or at the USPTO’s website                        Commission and consumers can readily                   a specific registrant using a word
                                              (www.uspto.gov).                                        identify a registrant by searching for a               trademark, rather than a house mark.
                                                                                                      marketer’s house mark on the USPTO’s                   Word trademarks that are not house
                                              II. Amendments to the Textile Rules                     online database or other online                        marks can be registered for specific
                                                                                                      resources.9 Moreover, Commission staff                 goods or services, and identical word
                                                 In a Notice of Proposed Rulemaking                   has not consulted the files of house
                                              published on June 28, 2017,5 the                                                                               trademarks can be registered numerous
                                                                                                      marks submitted to the Commission for                  times for different goods or services.14
                                              Commission proposed amending                            many years, if ever, nor has it received
                                              Section 303.19 to: (1) Delete the                                                                              Consequently, simple searches on the
                                              requirement that an owner of a                             6 American Apparel & Footwear Association
                                                                                                                                                             USPTO’s online database can produce
                                              registered word trademark used as a                     (AAFA) (#00005); Jonathan Appelbaum (#00003);
                                                                                                                                                               10 Appelbaum,     p. 1.
                                              house mark furnish the FTC with a copy                  and De La Cruz (#00002). See https://www.ftc.gov/
                                                                                                      policy/public-comments/2017/07/initiative-708.           11 Id.
                                              of the mark’s registration with the                        7 AAFA, https://www.ftc.gov/system/files/             12 De  La Cruz, p. 1.
                                              USPTO before using the mark on labels,                  documents/public_comments/2017/07/00005-                 13 AAFA,    p. 1.
                                              and (2) no longer restrict the use of such              141123.pdf, p. 1; Appelbaum, https://www.ftc.gov/
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                                                                                                                                                               14 For example, the USPTO has 148 registrations
                                              trademarks to only those employed as                    system/files/documents/public_comments/2017/07/        for the trademark ‘‘Acme’’ for different types of
                                                                                                      00003-141029.pdf, p. 1.                                goods, including boat propellers (AMG Operations),
                                                                                                         8 De La Cruz, https://www.ftc.gov/policy/public-
                                                1 15                                                                                                         beer (North Coast Brewing Co., Inc.), and firearm
                                                     U.S.C. 70 et seq.                                comments/2017/07/06/comment-00002, p. 1.
                                                2 15
                                                                                                                                                             targets (Clifford J. Brown). Three of these
                                                     U.S.C. 70b(b)(3).                                   9 As discussed below, however, although simple      registrations are for products covered by the Textile
                                                3 16 CFR 303.19.
                                                                                                      searches can determine registrants for house marks,    Rules: T-shirts (Acme Anvils, LLC), T-shirts (Time
                                                4 See 15 U.S.C. 70b(b).
                                                                                                      it is far more difficult to determine relevant         Warner Entertainment Company, L.P.), and quilts
                                                5 82 FR 29251 (June 28, 2017).                        registrations for some word trademarks.                (Pillowtex Corp.).



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                                              3070               Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations

                                              hundreds or thousands of responses.15                   do not impose any additional collection                 B. Issues Raised by Comments in
                                              Although sophisticated searches                         of information requirements.                            Response to the IRFA
                                              produce far fewer responses, such                                                                                 The Commission did not receive any
                                              searches may require more training and                  IV. Regulatory Flexibility Act
                                                                                                                                                              comments specifically related to the
                                              expertise than many consumers are                          The Regulatory Flexibility Act (RFA),                impact of the final amendment on small
                                              likely to possess.16 In contrast, to                    5 U.S.C. 601–612, requires that the                     businesses. In addition, the Commission
                                              register a house mark as a trademark,                   Commission provide an Initial                           did not receive any comments filed by
                                              the USPTO requires that an applicant                    Regulatory Flexibility Analysis (IRFA)                  the Chief Counsel for Advocacy of the
                                              indicate that it will use that house mark               with a Proposed Rule, and a Final                       Small Business Administration.
                                              ‘‘for a full line of products’’ so that                 Regulatory Flexibility Analysis (FRFA)                  C. Estimate of Number of Small Entities
                                              consumers can identify a manufacturer                   with the final Rule, unless the                         To Which the Amendments Will Apply
                                              or seller from that house mark.17                       Commission certifies that the Rule will
                                              Therefore, it is significantly easier to                                                                           Under the Small Business Size
                                                                                                      not have a significant economic impact                  Standards issued by the Small Business
                                              identify a house mark owner from a
                                                                                                      on a substantial number of small                        Administration, textile apparel
                                              USPTO search.18
                                                                                                      entities.20                                             manufacturers qualify as small
                                                 Accordingly, the Commission will                                                                             businesses if they have 500 or fewer
                                                                                                         The Commission anticipates that the
                                              continue to allow only owners of                                                                                employees. Clothing wholesalers qualify
                                                                                                      final amendment will not have a
                                              registered word trademarks who use                                                                              as small business if they have 100 or
                                                                                                      significant economic impact on a
                                              these trademarks as house marks to                                                                              fewer employees. The Commission’s
                                              disclose such trademarks in lieu of their               substantial number of small entities. In
                                                                                                      the Commission’s view, the amendment                    staff has estimated that approximately
                                              names.                                                                                                          22,642 textile fiber product
                                                                                                      should not increase the costs of small
                                              III. Paperwork Reduction Act                            entities that manufacture or import                     manufacturers and importers are
                                                                                                      textile fiber products, but may reduce                  covered by the Textile Rules’ disclosure
                                                 The Textile Rules contain various                                                                            requirements.21 A substantial number of
                                                                                                      costs associated with furnishing a copy
                                              ‘‘collection of information’’ (e.g.,                                                                            these entities likely qualify as small
                                                                                                      of a registered word trademark used as
                                              disclosure and recordkeeping)                                                                                   businesses. The Commission estimates
                                                                                                      a house mark to the FTC. Therefore,                     that the amendment will not have a
                                              requirements for which the Commission
                                                                                                      based on available information, the                     significant impact on small businesses
                                              has obtained clearance from the Office
                                              of Management and Budget (‘‘OMB’’)                      Commission certifies that amending the                  because it does not impose any new
                                              under the Paperwork Reduction Act                       Textile Rules will not have a significant               obligations on them, but may reduce
                                              (‘‘PRA’’).19 The amended Textile Rules                  economic impact on a substantial                        filing costs associated with the Textile
                                                                                                      number of small businesses. Although                    Rules.
                                                15 For instance, a simple search for ‘‘Acme’’ on
                                                                                                      the Commission certifies under the RFA
                                                                                                      that the amendment will not have a                      D. Projected Reporting, Recordkeeping,
                                              the USPTO’s website currently produces 527
                                              registrations; a simplesearch for ‘‘Cotton’’ produces   significant impact on a substantial                     and Other Compliance Requirements
                                              2,761 registrations. Similarly, searches on standard    number of small entities, the                              The amendment deletes a filing
                                              search engines for common word trademarks can                                                                   requirement, thus providing greater
                                              produce enormous numbers of responses. Searching        Commission has determined,
                                              for ‘‘Acme’’ on Google returns almost 57 million        nonetheless, that it is appropriate to                  flexibility to companies covered by the
                                              results, with the first results referencing             publish a Final Regulatory Flexibility                  Textile Rules. The amendment is not
                                              supermarkets, cartoons, packaging-supplies, pies,
                                                                                                      Analysis to inquire into the impact of                  expected to increase any reporting,
                                              and furniture.                                                                                                  recordkeeping, or other requirements
                                                16 For example, to search on the USPTO website        the proposed amendment on small
                                              for only ‘‘Acme,’’ and exclude the 379 registrations    entities. Therefore, the Commission has                 associated with the Textile Rules, and is
                                              for terms that include Acme, such as ‘‘Pro Acme,’’      prepared the following analysis:                        expected to decrease reporting
                                              a user must conduct a ‘‘structured’ search on the                                                               requirements.
                                              USPTO database and specify that the search is on           Although the Commission has
                                              the ‘‘FULL MARK’’ field.                                certified under the RFA that the                        E. Description of Steps Taken To
                                                17 USPTO ‘‘Trademark Manual of Examining
                                                                                                      amendments would not have a                             Minimize Significant Economic Impact,
                                              Procedure April 2017’’ 1402.03(b) House Marks,
                                                                                                      significant impact on a substantial                     If Any, on Small Entities, Including
                                              available at https://tmep.uspto.gov/RDMS/TMEP/                                                                  Alternatives
                                              current#/current/TMEP-1400d1e2208.html.                 number of small entities, the
                                                18 For example, a simple search on the USPTO for
                                                                                                      Commission has determined,                                 The Commission did not propose any
                                              the house mark ‘‘Kirkland Signature’’ returns 138       nonetheless, that it is appropriate to                  specific small entity exemption or other
                                              registrations, all owned by Costco Wholesale                                                                    significant alternatives because the
                                              Corporation. Therefore, consumers can review any        publish an FRFA in order to explain the
                                              of the registrations and determine the house mark       impact of the amendments on small                       amendment is expected to decrease
                                              owner, even though only one of the registrations is     entities as follows:                                    reporting requirements and will not
                                              for clothing. Online searches for ‘‘Kirkland                                                                    impose any new requirements or
                                              Signature’’ also readily return references to Costco    A. Description of the Reasons That                      compliance costs. No comments
                                              Wholesale Corporation.
                                                                                                      Action by the Agency Is Being Taken                     identified any new compliance costs,
                                                RN numbers also already provide a free,
                                              convenient alternative to names for marketers that                                                              and several comments argued the
                                              do not own house marks. The Commission has
                                                                                                        The Commission is amending the                        amendment will reduce compliance
                                              recently revised the RN Database at https://            Rules to provide greater flexibility in                 costs.
                                              rn.ftc.gov/Account/BasicSearch, so consumers can        complying with the Rules’ disclosure
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                                              easily identify companies from RN numbers.              requirements by permitting textile fiber                List of Subjects in 16 CFR Part 303
                                                19 44 U.S.C. 3501 et seq. In 2015, the Commission

                                              published its PRA burden estimates for the current
                                                                                                      product marketers to use registered                       Advertising, Labeling, Recordkeeping,
                                              information collection requirements under the           house marks to identify themselves                      Textile fiber products.
                                              Rules. See 80 FR 1411, 1413 (Jan. 9, 2015) and 80       without sending registration copies to                    For the reasons discussed in the
                                              FR 14387, 14388 (Mar. 19, 2015). In April 2015,         the Commission.
                                              OMB granted clearance through April 30, 2018, for                                                               preamble, the Commission amends part
                                              these requirements and the associated PRA burden
                                              estimates. The OMB control number is 3084–0101.           20 5   U.S.C. 603–605.                                  21   80 FR 1411, 1413 (Jan. 9, 2015).



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                                                                Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations                                           3071

                                              303 of title 16, Code of Federal                        to 275 the maximum number of patients                  adverse physiological or psychological
                                              Regulations, as follows:                                that a practitioner may treat for opioid               effects incident to withdrawal from the
                                                                                                      use disorder without being separately                  continuous or sustained use of a
                                              PART 303—RULES AND                                      registered under the CSA for that                      narcotic drug,’’ with the ultimate goal of
                                              REGULATIONS UNDER THE TEXTILE                           purpose. The Drug Enforcement                          bringing a patient to a narcotic drug-free
                                              FIBER PRODUCTS IDENTIFICATION                           Administration (DEA) is hereby                         state (21 U.S.C. 802(30)).
                                              ACT                                                     amending its regulations to incorporate                   Specifically, section 303 of the CARA
                                                                                                      these statutory and regulatory changes.                temporarily expands the types of
                                              ■ 1. The authority citation for part 303                                                                       practitioners who may dispense a
                                                                                                      DATES: Effective: January 22, 2018.
                                              continues to read:                                                                                             narcotic drug in Schedule III, IV, or V
                                                                                                      FOR FURTHER INFORMATION CONTACT:
                                                  Authority: 15 U.S.C. 70 et seq.                     Michael J. Lewis, Diversion Control                    for the purpose of maintenance
                                              ■ 2. Amend § 303.19 by revising                         Division, Drug Enforcement                             treatment or detoxification treatment
                                              paragraph (a) to read as follows:                       Administration; Mailing Address: 8701                  without being separately registered as a
                                                                                                      Morrissette Drive, Springfield, Virginia               narcotic treatment program. Whereas
                                              § 303.19 Name or other identification                   22152; Telephone: (202) 598–6812.                      prior to the CARA, only qualified
                                              required to appear on labels.                                                                                  physicians were permitted to dispense
                                                                                                      SUPPLEMENTARY INFORMATION: It has been
                                                 (a) The name required by the Act to                  determined this is a major rule within                 narcotic drugs in this manner, the
                                              be used on labels shall be the name                     the meaning of the Congressional                       CARA now temporarily permits certain
                                              under which the person is doing                         Review Act (CRA). 5 U.S.C. 804(2).                     nurse practitioners and physician
                                              business. Where a person has a word                     Major rules generally cannot take effect               assistants to qualify to do so. The CARA
                                              trademark, used as a house mark,                        until 60 days after the date on which the              achieves this result by (1) inserting the
                                              registered in the United States Patent                  rule is published in the Federal                       term ‘‘qualifying practitioner’’ in place
                                              Office, such word trademark may be                      Register. 5 U.S.C. 801(a)(3). However,                 of ‘‘qualifying physician’’ in 21 U.S.C.
                                              used on labels in lieu of the name                      the CRA provides that ‘‘any rule for                   823(g)(2)(B)(i) and (2) defining
                                              otherwise required. No trademark, trade                 which an agency for good cause finds                   ‘‘qualifying practitioner’’ to include not
                                              names, or other names except those                      (and incorporates the finding and a brief              only a physician, but also (until October
                                              provided for above shall be used for                    statement of reasons therefor in the rule              1, 2021) a ‘‘qualifying other
                                              required identification purposes.                       issued) that notice and public procedure               practitioner,’’ which includes a nurse
                                              *      *    *     *    *                                thereon are impracticable, unnecessary,                practitioner or physician assistant who
                                                                                                      or contrary to the public interest, shall              meets certain qualifications set forth in
                                                By direction of the Commission.
                                                                                                      take effect at such time as the Federal                paragraph 823(g)(2)(G)(iv). More
                                              Donald S. Clark,
                                                                                                      agency promulgating the rule                           precisely, section 303 of the CARA
                                              Secretary.                                              determines.’’ 5 U.S.C. 808. As is                      defines ‘‘qualifying other practitioner’’
                                              [FR Doc. 2018–01202 Filed 1–22–18; 8:45 am]             discussed below, DEA finds there is                    as a nurse practitioner or physician
                                              BILLING CODE 6750–01–P                                  good cause to issue these amendments                   assistant who satisfies each of the
                                                                                                      as a final rule without notice and                     following criteria:
                                                                                                      comment, because these amendments                         (I) The nurse practitioner or physician
                                              DEPARTMENT OF JUSTICE                                   merely conform the implementing                        assistant is licensed under State law to
                                                                                                      regulations with recent amendments to                  prescribe schedule III, IV, or V
                                              Drug Enforcement Administration                         the CSA contained in CARA that have                    medications for the treatment of pain;
                                                                                                      already taken effect. Accordingly, DEA                    (II) The nurse practitioner or
                                              21 CFR Part 1301                                        has determined this rule will take effect              physician assistant must complete not
                                              [Docket No. DEA–450]                                    January 22, 2018.                                      fewer than 24 hours of initial training.
                                                                                                      Background and Legal Authority                            (III) The nurse practitioner or
                                              RIN 1117–AB42                                                                                                  physician assistant is supervised by, or
                                                                                                      Pertinent Provisions of the CARA                       works in collaboration with, a
                                              Implementation of the Provision of the
                                                                                                         On July 22, 2016, the President signed              qualifying physician, if the nurse
                                              Comprehensive Addiction and
                                                                                                      the Comprehensive Addiction and                        practitioner or physician assistant is
                                              Recovery Act of 2016 Relating to the
                                                                                                      Recovery Act (CARA) into law as Public                 required by State law to prescribe
                                              Dispensing of Narcotic Drugs for
                                                                                                      Law 114–198. Section 303 of the CARA                   medications for the treatment of opioid
                                              Opioid Use Disorder
                                                                                                      amended certain provisions of 21 U.S.C.                use disorder in collaboration with or
                                              AGENCY:  Drug Enforcement                               823(g)(2), which is the subsection of the              under the supervision of a physician;
                                              Administration, Department of Justice.                  Controlled Substance Act (CSA) that                    and
                                              ACTION: Final rule.                                     sets forth the conditions under which a                   The Secretary determines in
                                                                                                      practitioner may, without being                        collaboration with, a qualifying
                                              SUMMARY:   The Comprehensive                            separately registered under subsection                 physician, if the nurse practitioner or
                                              Addiction and Recovery Act (CARA) of                    823(g)(1), dispense a narcotic drug in                 physician assistant is supervised by, or
                                              2016, which became law on July 22,                      Schedule III, IV, or V for the purpose of              works in collaboration with, a
                                              2016, amended the Controlled                            maintenance treatment or detoxification                qualifying physician, if the nurse
                                              Substances Act (CSA) to expand the                      treatment. Maintenance treatment is the                practitioner can treat and manage
                                              categories of practitioners who may,                    dispensing of a narcotic drug, in excess               opiate-dependent patients. The
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                                              under certain conditions on a temporary                 of twenty-one days, for the treatment of               Secretary may, by regulation, revise the
                                              basis, dispense a narcotic drug in                      dependence upon heroin or other                        requirements for being qualifying other
                                              Schedule III, IV, or V for the purpose of               morphine-like drugs (21 U.S.C. 802(29)).               practitioner.
                                              maintenance treatment or detoxification                 A detoxification treatment is the term                    This section of the CARA further
                                              treatment. Separately, the Department of                given when a narcotic drug is dispensed                provides that the Secretary of Health
                                              Health and Human Services, by final                     in decreasing doses, not exceeding one                 and Human Services (HHS) may, by
                                              rule effective August 8, 2016, increased                hundred and eighty days, ‘‘to alleviate                regulation, revise the foregoing


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Document Created: 2018-01-23 01:08:50
Document Modified: 2018-01-23 01:08:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective on February 22, 2018.
ContactJock Chung, (202) 326-2984, Attorney, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
FR Citation83 FR 3068 
RIN Number3084-AB47
CFR AssociatedAdvertising; Labeling; Recordkeeping and Textile Fiber Products

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