Last week, New Belgium Brewing Company and Oasis Texas Brewing Company settled a trademark dispute between the companies that began in 2014. The two breweries were disputing which of them had the right to use the name “Slow Ride” to market their respective ales. New Belgium applied to the USPTO for a trademark in 2014 and its application was granted in January 2015. Yet, Oasis claimed to have already been selling its Slow Ride Pale Ale in Texas before the USPTO granted New Belgium’s trademark application.

While “first use” of a trademark can act as a trump card over USPTO registration of a mark, the party asserting that it was the first to use a mark (in this case, Oasis) has the burden to show when it began using the name and that it was first to do so. Additionally, “first use” protection typically only applies territorially to the area where the first use is occurring. Registration with the USPTO, on the other hand, can offer nationwide protection of a mark.

In the end, the lawsuit between New Belgium and Oasis was voluntarily dismissed last week with the parties agreeing that Oasis could sell its beer as Slow Ride in Texas but under a different name outside the state. This, however, would have likely been a very different dispute: (1) if New Belgium did not have the good sense to register its mark with the USPTO in 2014; or (2) if Oasis had filed its application with the USPTO earlier (and did not have to rely on territorially-limited first use of the Slow Ride name). The lesson to be learned: Register your trademarks with the USPTO as soon as possible!