Members of the National Association of Realtors® know – or at least they have been told – that the words Realtor® and Realtors® are registered trademarks. They can only be used to denote persons who are members of the National Association of Realtors®.

In fact, as most Realtors® know, those words are supposed to be written in all caps. As in REALTOR® and REALTORS®. (So, why, it might be asked, are they not in all caps here? Actually, appearances of those words in the news media are specifically given a pass under NAR rules, although they are still supposed to appear with the first letter capitalized and with the ® sign.)

What is less known among both members and the general public is that NAR expends considerable effort and financial resources to protect those trademarks. That is, the association will send letters of warning to persons and organizations who persistently misuse the trademarks or who use them without proper authorization. Were NAR not vigilant in defense of these trademarks they would become generic – available for anyone to use in any manner they might choose.

Many already think the term Realtor® is generic and that its use cannot be controlled. They would be wrong, as more than a few courts have ruled.

We are reminded of these facts by a recent memo from the legal department of NAR. A recently-decided case (National Association of Realtors® v. Champions Real Estate Services, Inc., U.S. District Court, Western District of Washington) dealt with the use of Realtor® and Realtors® by brokers and agents who were not members of the National Association of Realtors®.

Prior to 2009, Champions' offices were all Realtor® offices. "In late 2008, however, Champions' brokers in the Lynnwood and Edmonds offices voted not to renew their membership in NAR for 2009." The broker-owner of Champions notified the staff to remove the Realtor® logo from all materials, and that they "discontinue the use of the word 'Realtor' and remove the word 'from business cards, letter head, web sites, CMA's, signatures, fax cover sheets, etc.'" However, in April of 2009, NAR learned that some of the brokers in those offices were continuing to identify themselves as Realtors® and that they were using the term on their web sites and marketing materials. NAR sent cease and desist letters to the various brokers. Some of the brokers ceased to use the terms, but others persisted.

Finally, in January of 2010 NAR filed a lawsuit. The facts of the brokers' use of the terms were not disputed. Neither were the facts that had been introduced to show that the trademarks were "strong" and non-generic. According to declarations made to the court, "The Marks [the terms] are used by approximately 1,000,000 individuals in the real estate business in 1,400 local and state associations throughout the United States. NAR also expends nearly $30 million per year in advertising to inform consumers as to the advantages of working with a licensed real estate agent who is a NAR member (and thus a REALTOR®)." NAR prevailed on summary judgment.

While NAR members might be gratified that their trademarked designation has been upheld by the courts, they also should be aware that their own uses of the terms are subject to constraints. This is particularly relevant with respect to uses of Realtor® on the Internet.

On the one hand, NAR has recognized the fact that capitalization is effectively outmoded with respect to domain names. So, it is ok to have www.bobhuntrealtor as opposed to www.BobHuntREALTOR. On the other hand, just as in traditional print media, Realtors® can use the mark in direct conjunction with their names or the names of their firm (e.g. Bob Hunt, Realtor® or The Hunt Company, Realtors®; but they may not use the term(s) with a descriptive word or phrase. Nor may the terms be used to denote an occupation or type of business. For example uses such as Number1realtor.com or OrangeCountyrealtor.com are prohibited.

The rules for using the trademarked terms are all available on the NAR web site. Members are well-advised to be acquainted with them.

Published: September 20, 2011

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Bob Hunt is a former director of the National Association of Realtors and is author of the recently published book, "Real Estate the Ethical Way." A graduate of Princeton with a master's degree from UCLA in philosophy, Hunt has served as a U.S. Marine, Realtor association president in South Orange County, and director of the California Association of Realtors, and is an award-winning Realtor. Contact Bob at .