[malandrew]

    "If I took ten people off the street, in San Francisco 
    itself, and asked them who made an iPhone app called 
    "Paper" a majority would probably already tell me 
    Facebook."

Actually I think the majority would say "I don't know". Facebook Paper was released a few days ago, so how could the majority of people already know that Facebook makes it.

Furthermore, Facebook also has an app called Messenger and Camera•. They've been around awhile and I'd be surprised if you surveyed people that they would be able to tell you that Facebook makes either. For both, I would expect people to tell you that those are actually the generic name for any phone's build in messenging app and camera app, respectively.

TBH, I really which we'd move to a trademark system that makes all dictionary words untrademarkable. You should have to come up with an original name if you want protection and if you want the generic name you should be able to use it knowing full well that you will have no protection when doing so. Companies should not just be allowed to highjack single words like Paper, Camera, Messenger, Candy, Saga, etc. etc. etc.