Trademark bill gets first 2010 veto

By David Montgomery
Capital Journal staff
Published/Last Modified on Wednesday, Mar 03, 2010 - 10:05:39 pm CST

PIERRE — Gov. Mike Rounds issued his first veto of the 2010 legislative session — but it might not hold up for long.

The governor vetoed HB1137, which allowed the secretary of state to cancel trademark or service marks when the holder of the trademark requested the cancellation within 12 months of the registration being issued.

The intent of the bill, Rounds said in his veto message, was to allow the secretary of state to cancel a trademark granted in error without going through the courts.

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But Rounds objected to the lack of due process in the bill.

“While the bill is intended to eliminate the need for court litigation, the only remedy for a registrant who has had their trademark or service mark cancelled is to file an action in circuit court,” Rounds wrote.

The governor also said the one year time period in the bill for the secretary of state to cancel a registration to be too long.

“While I believe this bill is well intentioned, the bill needs improvement to accomplish the goals of the sponsors,” Rounds wrote.

The governor also promised to work with the Legislature to enact the legislation if lawmakers override his veto.

That may be likely to happen. HB1137 passed two committees and both houses of the Legislature without a dissenting vote.

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