1402.11(j) Issuing Awards
Services that involve the issuance of awards are usually classified in Classes 35 and 41. Classification depends upon the purpose of the award program. If the award program is an employee incentive rewarding excellence in job-related performance that actually furthers the business of an employer (e.g., safety, quality, productivity, customer service), then the service is classified in Class 35. For example, the following identifications are acceptable in Class 35:
Conducting employee incentive award programs to promote {indicate specific area, e.g. on the job safety, quality and productivity}, in Class 35
Incentive award programs to promote the sale of products and services of others, in Class 35
If the award program is to recognize excellence or achievement unrelated to the participants’ business or professional endeavors (e.g., achievements in community service, excellence in country music performance), then the service should be classified in Class 41. For example, the following identifications are acceptable in Class 41:
Providing recognition and incentives by the way of awards to promote reading by middle school students, in Class 41
Arranging and conducting incentive award programs to encourage the frequent, continued and effective practice of physical exercise, in Class 41
The distinction is that Class 35 award programs do further the business interests of an employer by encouraging positive business-related performance, while Class 41 award programs reward excellence for endeavors that do not further the business interests of an employer.