Manga Entertainment Trademark - A Statement

A letter entitled: "A MESSAGE TO ALL JAPANESE MANGA AND ANIME FANS AND COMPANIES" date May 15, 1994 and written by ANIME UK editor Helen McCarthy has been brought to may attention by several concerned Japanese artists, producers, distributors and publishers. For those of you who have not read the letter, it makes a number of serious allegations about Manga Entertainment Ltd., its company trademark applications and its general business practices. Theses allegations, together with my responses are set out below but firstly I would like to point out, that at no time has Ms McCarthy or any of her staff contacted me or our legal representatives for comment or clarification regarding her allegations.

1.) ALLEGATION: Ms. McCarthy states that Manga Entertainment Ltd. made an application on the June 10, 1993 to register the word MANGA and the company logo.

REPLY: In fact this is incorrect. The actual registration is for the company's unique logo, which contains the word MANGA.

2.) ALLEGATION: Ms. McCarthy makes reference to the Dark Horse (UK) magazine MANGA MANIA, inferring that Manga Entertainment Ltd's trademark application was prompted by the publication of that magazine.

REPLY: Not only was Manga Entertainment's trademark application made prior to the launch of "Manga Mania" but Manga Entertainment Ltd (formerly Island World Communications Ltd) has been using the name "Manga" and the logo since the beginning of 1992. Furthermore, the fact that Manga Entertainment has been one of "Manga Mania" magazine's biggest and most consistent advertisers would suggest that we have been supportive of the magazine not, as I can only assume Ms. McCarthy implies, that Manga Entertainment perceived the publication of "Manga Mania" as some kind of threat.

3.) ALLEGATION: Ms. McCarthy states, "they (Manga Entertainment) have applied to use the word "manga" as their exclusive trademark on a huge range of items and goods. This includes all published materials - books, comics, magazines etc; clothing such as t-shirts and caps; toys and games; videotapes and many other items."

REPLY: Firstly, the application is not for the WORD "manga", it is for the company logo which contains the name "Manga" and secondly, registrations have only been made in the USA, Canada, Europe (including the UK) and Australia/New Zealand - clearly an application in Japan would be ridiculous. Trademark registration and protection is a very complex legal process and it varies from country to country (even within the EEC). I am therefore enclosing a report from Denton Hall Burgin & Warrens (Manga Entertainment Ltd's legal counsel for trademark applications). This sets out the legal position concerning Manga Entertainment Ltd's trademark applications.

DENTON HALL REPORT:

Manga Entertainment Ltd - Trade Mark Protection

In parallel with the European launch of its videos, Manga Entertainment Ltd filed a series of trade mark applications in Europe, Australia and North America in order to protect their rights in the logo which they had developed to identity their brand. The logo consists if the name MANGA or MANGA VIDEO in Roman script incorporated in a special designed rising sun device with Japanese characters also reading "MANGA". No filing was made in Japan because the term "Manga" already has a special meaning there.

The purpose of obtaining registered trade mark protection is to ensure that the owner has exclusive rights in relevant markets for the brand or label appearing on its products. It is not to obtain a monopoly over the products themselves.

The reaction of different trademark registries to the application has varied enormously not least because the word has a range of different meanings in different languages but also because others have already applied to file marks containing the word MANGA or similar words in respect of the same or associated classes of goods and services.

Trade Mark Agents acting for Manga Entertainment Ltd are confident that they will be able to secure registrations to protect their brand but in many countries the protection will not prevent use of the word MANGA outside the context of the Manga Entertainment logo. The precise scope of protection will depend on the policy and practice of the trade mark office in question.

Manga Entertainment Ltd. has been advised that, regardless of the outcome of its registered trade mark application, the reputation already established by virtue of their promotional activities and the success of the brand will give the company common Law rights which will entitle them to bring action against anyone adopting the brand or one which is confusingly similar in the same or a similar business in the UK and elsewhere

Denton Hall
May 23, 1994

END REPORT DENTON HALL

4.) ALLEGATION: Ms. McCarthy states: "This means that if any company in the UK or Europe wishes to use the word "manga" to market their products, they would have to get permission from Manga Entertainment Ltd. to do so.

REPLY: It is my understanding (from Ms. McCarthy and others) that the word "manga" means comics in Japanese and its general meaning outside Japan is "Japanese comics". In fact, when we launched "MANGA VIDEO" an article was written in ANIME UK magazine in which it was written: "the confusingly named Manga Video". If it is confusing to associate the word "manga" with videos (or presumably any goods other than Japanese comics) why should any other company want to market their goods (other than Japanese comics) using the word "manga"?

I believe that we have demonstrated, through our support for "Manga Mania" magazine and through our association with the Italian publisher of "Mangazine", that we have no desire or intention to prevent or restrict the business of commercial usage of the word "manga" in its "true" context (ie: with Japanese comics, books, magazines or the like). However, Manga Entertainment Ltd. has spent millions of pounds over the last two and a half years marketing Japanese animation in the UK, Europe and Australia under the name "Manga". Therefore, in its association primarily with audio-visual material and ancillary spin-offs, Manga Entertainment will vigorously defend its unique logo, name and reputation within its territory, whether a trade mark application has been upheld or not. For example, even if the UK trademark office decides not to grant our application for the class relating to video goods etc., we would not stand by and watch another company begin trading under the name "New Manga Video" (for example).

It may also be worth pointing out at this point, that in Spanish the word "manga" means "sleeve" (as in shirt or jacket sleeve). I also believe that it has a slang usage in Greek language, meaning "tough guy" or "strong guy". It may also be worth noting that "manga" has been a registered trademark in France for several years, covering a range of goods including video/electronic and publishing goods and the principle owner of that mark is a company primarily involved in the manufacture of radiators.

Notwithstanding the forgoing, of course it is ridiculous to assume that any individual or company can trademark a name or word to the extent that Ms. McCarthy implies. Even owners of the most well known and protected trademarks in the world (eg: Coca Cola, Disney etc) cannot prevent someone writing or saying their names (in fact I've just done it here).

5.) ALLEGATION: Ms. McCarthy stated: "Manga Entertainment Ltd seems to be trying to achieve monopoly control over European manga and anime markets, as their recent acquisition of the magazine "Manga Mania" and their many attempts to negotiate European licence deals demonstrates". She also adds the following comment later: "To allow one company to dominate the market does not simply reduce choice and variety for fans, but also restricts the ability of Japanese companies to negotiate the best price and release terms for their product".

REPLY: Firstly, Manga Entertainment Ltd has not acquired "Manga Mania" as Ms. McCarthy states, it has however reached an agreement with Dark Horse Comics (US) to purchase the UK based subsidiary Dark Horse Comics (UK) International and such acquisitions includes the magazine "Manga Mania" as well as several other magazines. How does Ms. McCarthy see our acquisition as an attempt to monopolize or threaten the industry? We are not only keeping several people in employment but also attempting to breathe new life into what is undoubtedly one of the worst comic book markets in the world. Secondly, almost all of our "many attempts" (as she states) to acquire European audio-visual rights have been successful. Personally, I would put this down to the fact that the many Japanese companies with which we deal, acknowledge our extensive Europeans distribution network and are able to evaluate the best deal for their company on a case by case basis. For Ms. McCarthy to suggest that Manga Entertainment's position as market leader is detrimental to Japanese companies is totally without meaning or substance. We have worked hard to establish European recognition and success for Japanese animation and it is largely down to the efforts and marketing skills of Manga Entertainment that there are suddenly dozens of other companies "waiting to join the boom".

Anyone with even the vaguest idea of the Japanese business would recognize what a ridiculous allegation it is to suggest that Manga Entertainment is "trying to achieve a monopoly" distributing Japanese animation in Europe. The vast number and variety of different animation films, ova's and TV series produced in Japan each year would mean we would have to spend hundreds of million (if not billions) of dollars "tying up" product, the vast majoritry of which we would be unable to release of commercially exploit. Alternatively, we would have to acquire every Japanese company involved with or associated with animation!!!

6.) ALLEGATION: Ms. McCarthy states that: "Manga Entertainment Ltd. have been instrumental in creating the view that "manga movies are all violent and sexually exploitative".

REPLY: In my opinion, this is probably the most serious and spurious allegation made against Manga Entertainment and the films it has released. whilst it is certainly true Manga Entertainment has concentrated on the acquisition, release and marketing of action (often sci-fi) orientated films, it is absolutely not true that we have created the view "that manga movies are all violent and sexually exploitative." We have deliberately targeted a specific market (primarily males aged between 17 and 28) just as most book, magazine or comic imprints would attempt to do and I make no apology or excuse for that. But, the suggestion that all of the films released or acquired by us are violent or sexually exploitative or are portrayed by us as such, is grossly demeaning to the works of artist such as Katsuhiro Otomo, Masamune Shirow, Buichi Terasawa and Monkey Punch, to name but a few and I would call upon the entire anime and manga industry for Ms. McCarthy to make a public apology for such a grossly offensive comment.

Finally, I would like to thank those companies and individuals in Japan who have brought this matter to my attention and for the support you have shown to Manga Entertainment Ltd. To those many other individuals and companies who have a vested interest in anime and manga and may not know Manga Entertainment Ltd directly, I would like to ask you to evaluate Ms. McCarthy's allegations very carefully. Ms. McCarthy claims to be an ardent manga & anime fan and to be committed to the continued growth and success of manga and anime in Europe. However, Ms. McCarthy also has her own business interests to consider and I would suggest that the motivation behind her letter of objections and allegations against Manga Entertainment Ltd. and her clear attempt to damage the company's reputation and standing within the Japanese animation and manga publishing community is perhaps more than just the motivation of a committed fan.

Manga Entertainment Ltd. is a company run by professionals who love what they do, love the product and are committed to the success of the company and its products. Manga Entertainment Ltd. is wholly owned division of the Island International Group, a multimillion dollar company which has maintained an excellent reputation within the entertainment industry for more than thirty years. The company's relationship with both the business and creative communities is almost without equal and it is on this footing that Manga Entertainment Ltd. conducts its business.

As I feel sure the many Japanese publishers, distributors and producers who know us would testify, Manga Entertainment is genuinely committed to the growth and success of Japanese animation and Japanese comics in Europe and beyond. The company has not only spent millions of dollars on the acquisition and marketing of anime in Europe but is now embarking on several co-production ventures for new animated feature films, as it is our firm belief that through the additional investment of international co-production and effective worldwide distribution, the Japanese animation and comics industries can truly become a major force in worldwide entertainment.

I apologise for writing so many words but I feel compelled not only to defend the company's position regarding our trademark application but also to dispel the spurious allegations with which we have been accused.

I thank all of you who find time to read this letter and I hereby grant permission to any individual, company or publication to reprint any or all of its contents as they may see fit.

Yours sincerely,
ANDY FRAIN
MANAGING DIRECTOR
MANGA ENTERTAINMENT LTD.