diff --git a/lib/active_shipping/shipping/carriers/usps.rb b/lib/active_shipping/shipping/carriers/usps.rb
index 12f99a123..0aa6811c3 100644
--- a/lib/active_shipping/shipping/carriers/usps.rb
+++ b/lib/active_shipping/shipping/carriers/usps.rb
@@ -315,7 +315,10 @@ def rates_from_response_node(response_node, packages)
           
           package_node.each_element(service_node) do |service_response_node|
             service_name = service_response_node.get_text(service_name_node).to_s
-            
+
+            # workaround for USPS messing up and including unescaped html in their rate names since Jan 2, 2011
+            service_name.gsub!(/<sup>®<\/sup>/, '')
+
             # aggregate specific package rates into a service-centric RateEstimate
             # first package with a given service name will initialize these;
             # later packages with same service will add to them
diff --git a/test/fixtures/xml/usps/2011_rates_response.xml b/test/fixtures/xml/usps/2011_rates_response.xml
new file mode 100644
index 000000000..29a6eabcd
--- /dev/null
+++ b/test/fixtures/xml/usps/2011_rates_response.xml
@@ -0,0 +1,101 @@
+<?xml version="1.0"?>
+<RateV3Response>
+  <Package ID="0">
+    <ZipOrigination>83843</ZipOrigination>
+    <ZipDestination>70001</ZipDestination>
+    <Pounds>0</Pounds>
+    <Ounces>32.0</Ounces>
+    <Container/>
+    <Size>REGULAR</Size>
+    <Machinable>FALSE</Machinable>
+    <Zone>8</Zone>
+    <Postage CLASSID="3">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt;</MailService>
+      <Rate>34.70</Rate>
+    </Postage>
+    <Postage CLASSID="2">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Hold For Pickup</MailService>
+      <Rate>34.70</Rate>
+    </Postage>
+    <Postage CLASSID="23">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Sunday/Holiday Delivery</MailService>
+      <Rate>47.20</Rate>
+    </Postage>
+    <Postage CLASSID="13">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Flat Rate Envelope</MailService>
+      <Rate>18.30</Rate>
+    </Postage>
+    <Postage CLASSID="27">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Flat Rate Envelope Hold For Pickup</MailService>
+      <Rate>18.30</Rate>
+    </Postage>
+    <Postage CLASSID="25">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Sunday/Holiday Delivery Flat Rate Envelope</MailService>
+      <Rate>30.80</Rate>
+    </Postage>
+    <Postage CLASSID="30">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Legal Flat Rate Envelope</MailService>
+      <Rate>18.30</Rate>
+    </Postage>
+    <Postage CLASSID="31">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Legal Flat Rate Envelope Hold For Pickup</MailService>
+      <Rate>18.30</Rate>
+    </Postage>
+    <Postage CLASSID="32">
+      <MailService>Express Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Sunday/Holiday Delivery Legal Flat Rate Envelope</MailService>
+      <Rate>30.80</Rate>
+    </Postage>
+    <Postage CLASSID="1">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt;</MailService>
+      <Rate>10.20</Rate>
+    </Postage>
+    <Postage CLASSID="22">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Large Flat Rate Box</MailService>
+      <Rate>14.95</Rate>
+    </Postage>
+    <Postage CLASSID="17">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Medium Flat Rate Box</MailService>
+      <Rate>10.95</Rate>
+    </Postage>
+    <Postage CLASSID="28">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Small Flat Rate Box</MailService>
+      <Rate>5.20</Rate>
+    </Postage>
+    <Postage CLASSID="16">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="44">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Legal Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="29">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Padded Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="38">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Gift Card Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="42">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Small Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="40">
+      <MailService>Priority Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt; Window Flat Rate Envelope</MailService>
+      <Rate>4.95</Rate>
+    </Postage>
+    <Postage CLASSID="4">
+      <MailService>Parcel Post&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt;</MailService>
+      <Rate>8.09</Rate>
+    </Postage>
+    <Postage CLASSID="6">
+      <MailService>Media Mail&amp;lt;sup&amp;gt;&amp;amp;reg;&amp;lt;/sup&amp;gt;</MailService>
+      <Rate>2.77</Rate>
+    </Postage>
+    <Postage CLASSID="7">
+      <MailService>Library Mail</MailService>
+      <Rate>2.63</Rate>
+    </Postage>
+  </Package>
+</RateV3Response>
diff --git a/test/unit/carriers/usps_test.rb b/test/unit/carriers/usps_test.rb
index 3057482ae..fc8b17676 100644
--- a/test/unit/carriers/usps_test.rb
+++ b/test/unit/carriers/usps_test.rb
@@ -136,6 +136,42 @@ def test_maximum_weight
     assert Package.new((70 * 16) - 0.01, [5,5,5], :units => :imperial).mass < @carrier.maximum_weight
   end
   
+  def test_updated_rate_name_format_with_unescaped_html
+    mock_response = xml_fixture('usps/2011_rates_response')
+    @carrier.expects(:commit).returns(mock_response)
+    rates_response = @carrier.find_rates(
+      @locations[:beverly_hills],
+      @locations[:ottawa],
+      @packages[:book],
+      :test => true
+    )
+    rate_names = [
+      'USPS Express Mail',
+      'USPS Express Mail Flat Rate Envelope',
+      'USPS Express Mail Flat Rate Envelope Hold For Pickup',
+      'USPS Express Mail Hold For Pickup',
+      'USPS Express Mail Legal Flat Rate Envelope',
+      'USPS Express Mail Legal Flat Rate Envelope Hold For Pickup',
+      'USPS Express Mail Sunday/Holiday Delivery',
+      'USPS Express Mail Sunday/Holiday Delivery Flat Rate Envelope',
+      'USPS Express Mail Sunday/Holiday Delivery Legal Flat Rate Envelope',
+      'USPS Library Mail',
+      'USPS Media Mail',
+      'USPS Parcel Post',
+      'USPS Priority Mail',
+      'USPS Priority Mail Flat Rate Envelope',
+      'USPS Priority Mail Gift Card Flat Rate Envelope',
+      'USPS Priority Mail Large Flat Rate Box',
+      'USPS Priority Mail Legal Flat Rate Envelope',
+      'USPS Priority Mail Medium Flat Rate Box',
+      'USPS Priority Mail Padded Flat Rate Envelope',
+      'USPS Priority Mail Small Flat Rate Box',
+      'USPS Priority Mail Small Flat Rate Envelope',
+      'USPS Priority Mail Window Flat Rate Envelope'
+    ]
+    assert_equal rate_names, rates_response.rates.collect(&:service_name).sort
+  end
+  
   private
   
   def build_service_node(options = {})