Concept Cyclery, Inc.v.Concept Cycles, LLCDownload PDFTrademark Trial and Appeal BoardDec 13, 2012No. 92055282 (T.T.A.B. Dec. 13, 2012) Copy Citation jk Mailed: December 13, 2012 Cancellation No. 92055282 Concept Cyclery, Inc. v. Concept Cycles, LLC Before Ritchie, Lykos and Shaw, Administrative Trademark Judges. By the Board: Concept Cycles, LLC (“respondent”)1 owns a registration on the Supplemental Register for the mark CONCEPT CYCLES (standard characters; CYCLES disclaimed) for “bicycles” in International Class 12.2 Concept Cyclery, Inc. (“petitioner”) filed a petition to cancel, and filed a first amended petition to cancel (consisting of two additional paragraphs) as a matter of course, on the ground of priority pursuant to Trademark Act Section 2(d). Petitioner alleges priority based on common law usage of the mark CONCEPT CYCLERY. In addition, petitioner 1 The Board has updated its records for this proceeding to reflect counsel for respondent’s correspondence information. 2 Registration No. 3687731, issued September 22, 2009, from an underlying intent-to-use application filed July 14, 2008, wherein respondent filed, on July 30, 2009, an amendment to allege use asserting a date of first use anywhere, and date of first use in commerce, of July 30, 2009, and filed, on July 31, 2009 an amendment to seek registration on the Supplemental Register. UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 Cancellation No. 92055282 2 claims ownership of two pending applications to register on the Principal Register the marks CONCEPT CYCLERY (standard characters; CYCLERY disclaimed),3 and CONCEPT CYCLERY and design (shown below; CYCLERY disclaimed),4 both for “retail store services in the field of bicycles and bicycle parts and accessories” in International Class 35, and “repair and servicing of bicycles” in International Class 37 which were refused registration under Section 2(d) based on respondent’s registered mark (second amended petition, para. 3). In its answer, respondent denied the salient allegations in the petition to cancel. Petitioner moved for leave to file a second amended petition, to add allegations that (1) respondent abandoned the mark CONCEPT CYCLES “in the three consecutive years since July 30, 2009” (second amended petition, para. 8); and (2) the underlying application was void ab initio for non-use of the mark CONCEPT CYCLES for bicycles, as of the July 30, 2009 3 Application Serial No. 85322211, filed May 16, 2011, asserting a date of first use anywhere of “01/00/2007” and date of first use in commerce of “10/00/2007,” construed, respectively, as January 31, 2007 and October 31, 2007. See TMEP § 903.06 (October 2012). Cancellation No. 92055282 3 effective filing date on which respondent filed its amendment to allege use to seek registration on the Supplemental Register (second amended petition, para. 9). This case now comes before the Board for consideration of (1) respondent’s motion for summary judgment on priority (filed August 1, 2012); (2) petitioner’s cross-motion for summary judgment on its claims of priority and likelihood of confusion, as well as abandonment and non-use (filed September 5, 2012). The motions have been fully briefed. Preliminary pleading matters Respondent did not file a brief in opposition to the motion for leave to amend, and did not set forth arguments in opposition thereto in its brief in response to petitioner’s cross-motion for summary judgment. In view thereof, petitioner’s motion is granted as conceded. See Trademark Rule 2.127(a). The second amended petition to cancel is petitioner’s operative pleading. We note, however, that the second amended petition, as with the prior pleadings, does not allege likelihood of confusion pursuant to Section 2(d), but rather merely priority. In this manner, the pleading is deficient. To state a claim under Section 2(d), petitioner must sufficiently allege (1) its standing; (2) that it has 4 Application Serial No. 85322124, filed May 16, 2011, asserting a date of first use anywhere of January 31, 2007, and date of first use in commerce of October 31, 2007. See fn 3. Cancellation No. 92055282 4 registered or previously used a mark; and (3) that contemporaneous use of the parties’ respective marks on or in connection with their respective goods or services would be likely to cause confusion, mistake or to deceive consumers. See Hornblower & Weeks, Inc. v. Hornblower & Weeks, Inc., 60 USPQ2d 1733, 1735 (TTAB 2001). However, inasmuch as petitioner argues in the summary judgment motions the issue of likelihood of confusion on its merits, and respondent did not object on the basis that the issue was not pleaded, the Board deems the petition to be amended by agreement of the parties to allege likelihood of confusion. Thus, the pleading sets forth both the grounds of priority and likelihood of confusion. See Paramount Pictures Corp. v. White, 31 USPQ2d 1768, 1772 (TTAB 1994). See also TBMP § 528.07(a). Analysis Summary judgment is appropriate where the movant shows that there is no genuine dispute as to any material fact and that it is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). A party asserting that a fact cannot be true or is genuinely disputed must support its assertion by either (1) citing to particular parts of materials in the record, or (2) showing that the materials cited do not establish the absence or presence of a genuine dispute, or Cancellation No. 92055282 5 that an adverse party cannot produce admissible evidence to support the fact. Fed. R. Civ. P. 56(c). With regard to each respective motion, the party seeking judgment in its favor carries the burden of proof. See Celotex Corp. v. Catrett, 477 U.S. 317, 323-24 (1986). In deciding a summary judgment motion, the function of the Board is not to try issues of fact, but to determine if there are any genuine disputes of material fact to be tried. See TBMP § 528.01, and cases cited therein. Merely because both parties have moved for summary judgment does not necessarily mean that there are no genuine disputes of material fact, and does not dictate that judgment should be entered. See University Book Store v. University of Wisconsin Board of Regents, 33 USPQ2d 1385, 1389 (TTAB 1994). Priority and Likelihood of Confusion For petitioner to prevail, it must prove that it has standing,5 that it has registered or previously used its mark as of the July 30, 2009 effective filing date of the application from which respondent’s registration issued, and that contemporaneous use of the parties’ respective marks on or 5 Regarding petitioner’s standing, petitioner pleaded and has shown that its two applications have each been refused registration under Trademark Act Section 2(d) on the basis of respondent’s involved registration. Thus, as a threshold matter, petitioner has proven its standing to be heard on its claims. See, e.g., Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (CCPA 1982). Cancellation No. 92055282 6 in connection with their respective goods or services is likely to cause confusion, mistake or to deceive consumers. See Hornblower & Weeks, Inc. v. Hornblower & Weeks, Inc., supra. Priority Respondent does not contest that petitioner has priority, and rather identifies itself as “a junior user” (motion, p. 13). In its pleading, petitioner asserts a priority date of “at least as early as October 2007” (second amended petition, para. 5). In order for petitioner to prevail on its Section 2(d) claim on summary judgment, it must prove the absence of a genuine dispute of material fact that it has a proprietary interest in the mark, and that that interest was obtained prior to either the filing date of respondent's application for registration or respondent's date of first use in commerce. See Herbko International Inc. v. Kappa Books Inc., 308 F.3d 1156, 64 USPQ2d 1375, 1378 (Fed. Cir. 2002); Otto Roth & Co., Inc. v. Universal Corp., 640 F.2d 1317, 209 USPQ 40, 43 (CCPA 1981); Miller Brewing Co. v. Anheuser-Busch Inc., 27 USPQ2d 1711, 1714 (TTAB 1993). To demonstrate priority, petitioner submits with its motion, inter alia, the following: 1) a May 31, 2007 purchase invoice for $79,268.55 of merchandise, indicating shipment of the merchandise to Concept Cyclery prior to the opening of its store (Exh. B) Cancellation No. 92055282 7 2) a Register Summary Report covering January 1, 2007 through December 31, 2007, indicating a breakdown of sales transactions and net sales of $132,111.73 (Exh. E) 3) an advertising contract and invoice for 11 consecutive print advertisements for petitioner’s Morgan Hill, California store, which ran commencing in an October 2007 issue of Cycle California! Magazine, as well as a copy of said advertisement bearing petitioner’s word and design marks (Exh. F) 4) a Register Summary Report covering January 1, 2007 through July 30, 2009, indicating a breakdown of sales transactions and net sales of $1,488,585.46 (Exh. G) 5) a “Customer List (Customer Report)” covering January 1, 2007 through July 30, 2009, listing the names and addresses of over 5000 customers as of July 30, 2009 (Exh. H) 6) Register Summary Reports covering January 1, 2008 through December 31, 2008, indicating net sales of $864,580.17; covering January 1, 2009 through December 31, 2009, indicating net sales of 806,864.27; covering January 1, 2010 through December 31, 2010, indicating net sales of 674,531.37; and covering January 1, 2011 through December 31, 2011, indicating net sales of 707,931.87 (Exh. K) 7) a printout from the Internet Archive Wayback Machine which depicts a graph of the number of times the site www.conceptcyclery.com was crawled, and which includes several years, including the years 2007 and 2008, prior to July 30, 2009 (Exh. O) Furthermore, with its motion, respondent submitted petitioner’s responses to respondent’s first discovery requests, wherein Interrogatory No. 1 reads, in pertinent part: INTERROGATORY No. 1: Please describe in detail your adoption and initial use of the trademark, CONCEPT CYCLERY, in both word and logo format. RESPONSE TO INTERROGATORY No. 1: … Petitioner’s website at www.conceptcyclery.com was available to the public since at least as early as August of 2007. Petitioner Cancellation No. 92055282 8 sold its first bicycle under the CONCEPT CYCLERY name in August of 2007. Petitioner advertised in print publications using the CONCEPT CYCLERY word mark and design mark in September of 2007. The Concept Cyclery retail store opened on October 20, 2007. On this record, we find that there is no genuine dispute that petitioner has established common law use of the mark CONCEPT CYCLERY as a service mark for “retail store services in the field of bicycles and bicycle parts and accessories” prior to July 30, 2009, the effective filing date of respondent’s underlying application.6 According to the record, respondent’s use of its mark on its goods is limited to two sales transactions, one in July 2009 and one in January 2012; specifically, petitioner submitted respondent’s answer to Interrogatory No. 6, which reads: 6. Please describe in detail the amount of sales per month of products sold under the CONCEPT CYCLES trademark to date, indicating the month and year of such sales. ANSWER: … In July 2009, Concept Cycles traded an eQuadz cycle for custom made, hand machined aluminum cycle transmission and hub parts. Lon Mathews, North Bend, Washington. In January 2012, Concept Cycles sold an 6 We note respondent’s assertions that petitioner has not produced in discovery evidence of advertising or marketing outside of the San Francisco, California region, that petitioner’s common law rights in its mark are limited to that geographic area, and that prior use of a mark in a remote or different geographic region does not warrant cancellation of a junior user’s registration. Such assertions are in error. Moreover, to the extent that respondent’s arguments going to the parties’ respective rights in the mark focus on the purported geographic areas of use, it is manifest that the Board will consider and determine issues regarding geographic limitations only in the context of a concurrent use proceeding. See Trademark Act Sections 2(d), 17 and 18; Trademark Rules 2.99(h) and 2.133(c); TBMP § 309.03(a)(1) and Chapter 1100 generally. A party seeking a concurrent use registration must also satisfy jurisdictional as well as other statutory requirements. Cancellation No. 92055282 9 eQuadz on a contract layaway plan for $5500. Jodi Beth Orliss, Cresskill, New Jersey. In view of these findings on summary judgment, petitioner’s cross-motion for summary judgment, with respect to the issue of priority, is granted. Likelihood of Confusion Respondent asserts that petitioner cannot demonstrate likelihood of confusion, specifically arguing that petitioner cannot prove that CONCEPT CYCLERY is inherently distinctive for its services, or that it had acquired such distinctiveness, before respondent adopted its mark. It argues that “CONCEPT CYCLERY cannot be considered to be inherently distinctive for bicycles or bicycle related services” (motion, p. 11). In support thereof, it sets forth, inter alia, a list of marks which contain the term CONCEPT of CONCEPTS, and their accompanying Supplemental Registration numbers (respondent’s reply brief, p. 6-7). Respondent also argues that petitioner has not demonstrated that the mark CONCEPT CYCLERY has acquired distinctiveness, arguing that petitioner has not submitted any surveys or affidavits related to secondary meaning (respondent’s reply brief, p. 6). Petitioner maintains that it is not required to show acquired distinctiveness, but that if it is so required, its marks are at least suggestive of its services inasmuch as it “is not selling and servicing what could be called ‘concept’ bicycles” (petitioner’s reply, p. 8), and it has acquired Cancellation No. 92055282 10 rights in CONCEPT CYCLERY inasmuch as this wording is also its trade name used to identify itself to the public. It further states that the third-party registrations respondent lists are not the same as petitioner’s mark and do not involve petitioner’s services. Regarding the factors which the Board applies that bear on the likelihood of confusion analysis, as defined in In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563, 567 (CCPA 1973) (“du Pont”), respondent does not address these factors in either its brief on motion or its reply brief. For its part, petitioner argues, in cursory fashion, that four of the du Pont factors weigh in its favor: the similarity of the marks, the similarity of the goods and services, the trade channels through which the goods and services travel, and the conditions under which and buyers to whom sales are made. On this record, there is a genuine dispute with respect to the factual issue of likelihood of confusion. To prevail on likelihood of confusion based on ownership of common-law rights, the mark must be distinctive, inherently or otherwise. Giersch v. Scripps Networks Inc, 90 USPQ2d 1020, 1023 (TTAB 2009), citing Otto Roth & Co., v. Universal Foods Corp., 209 USPQ at 45 (Board must require opposer to prove secondary meaning in its merely descriptive or deceptively misdescriptive mark before applying the test of likelihood of confusion as to source). See also Herbko Int’l, Inc. v. Kappa Books, Inc., 64 Cancellation No. 92055282 11 USPQ2d at 1378; Towers v. Advent Software Inc., 913 F.2d 942, 16 USPQ 1039, 1042 (Fed. Cir. 1990) (Board did not err in requiring petitioner to show that his descriptive term had acquired secondary meaning before respondent adopted its mark). On the record before us, there is a genuine dispute with respect to whether petitioner’s asserted common law mark CONCEPT CYCLERY is inherently distinctive, or has acquired distinctiveness. Respondent has raised the issue of the distinctiveness of petitioner’s mark, at a minimum, by setting forth arguments directed to the distinctiveness of the term CONCEPT in the context of its appearance in third-party registrations, and its registration on the Supplemental Register. Cf. Giersch v. Scripps Networks Inc., 90 USPQ2d at 1023. Moreover, notwithstanding that the likelihood of confusion analysis will involve comparing the marks in their entireties, we note that respondent’s mark was found to only be registrable on the Supplemental Register. Inasmuch as the non-disclaimed word element in both parties’ marks is identical – CONCEPT – in assessing the similarity of the marks, the weight to be given this term in creating a commercial impression in the marketplace for the goods and services is at issue. See In re Nat’l Data Corp., 753 F.2d 1056, 224 USPQ 749, 751 (Fed. Cir. 1985). Cancellation No. 92055282 12 Based on these findings, the issue of whether CONCEPT CYCLERY has inherent or acquired distinctiveness in connection with petitioner’s services remains in genuine dispute. In view thereof, the parties’ cross-motions with respect to likelihood of confusion are denied. Petitioner’s motion: abandonment; non-use Trademark Act Section 45, 15 U.S.C. § 1127, defines “abandonment” of a mark as follows: When its use has been discontinued with intent not to resume such use. Intent not to resume may be inferred from circumstances. Nonuse for 3 consecutive years shall be prima facie evidence of abandonment. “Use” of a mark means the bona fide use of such mark made in the ordinary course of trade, and not made merely to reserve a right in a mark. To prevail on its claim of abandonment, petitioner must demonstrate that there is no genuine dispute with respect to its allegation that respondent abandoned use of CONCEPT CYCLES as a mark for “bicycles” in the three consecutive years since July 30, 2009, such as would establish a prima facie case and rebuttable presumption that respondent has abandoned the mark without intent to resume use. See Crash Dummy Movie LLC v. Mattel Inc., 601 F.3d 1387, 94 USPQ2d 1315, 1316 (Fed. Cir. 2010); On-line Careline Inc. v. America Online Inc., 229 F.3d 1080, 56 USPQ2d 1471, 1476 (Fed. Cir. 2000); Cerveceria Centroamericana S.A. v. Cerveceria India Inc., 892 F.2d 1021, 13 USPQ2d 1307, 1309 (Fed. Cir. 1989). Cancellation No. 92055282 13 To prevail on its claim of non-use as of the effective filing date of respondent’s underlying application, petitioner must prove that on July 30, 2009, respondent was not using CONCEPT CYCLES as a mark for “bicycles.” With respect to both claims, petitioner’s core argument is that the only products on which respondent has used the mark are not bicycles, but rather are four-wheeled cycles known as “quadracycles” that do not fall under the definition of, are not recognized as, and are not commonly referred to as “bicycles.” It relies on, inter alia, definitions of “bicycle” taken from the Free Merriam-Webster Online Dictionary and Wikipedia,7 respondent’s answers to Interrogatory Nos. 4 and 5 wherein respondent describes all products which have been offered for sale or sold as of July 30, 2009, and following that date, under its mark (Exh. I), as well as printouts from respondent’s website identifying and depicting the goods as “four-wheeled pedal cycles” (Exh. J). In opposition, respondent argues that the definition of “bicycles” on which petitioner relies is narrow and is not in accord with consumer perception of and usage of that term. It argues that “bicycle” is a term that “encompasses 7 The definitions that petitioner offers are not submitted as printouts from the original source, or under declaration or affidavit, but rather are merely set forth in its brief. Cancellation No. 92055282 14 four-wheeled bikes” (brief, p. 8), and offers the affidavit of Sandy Pomeroy, its Managing Member, which introduces (1) a Wikipedia article which, inter alia, identifies a four- wheeled human powered land vehicles as a “four-wheeled bicycle” and states that “[T]here is no consensus amongst manufacturers of four-wheeled, human powered vehicles as to what this class of vehicle should be called;” and (2) various web pages to show that manufacturers and consumers use “bicycle,” “four wheel bike,” “4-wheel bicycles” and “4- wheel pedal bike” to describe products of the type that respondent offers under the mark. On this record, there remains a genuine dispute with respect to two key issues of fact, namely, (1) whether respondent was using the CONCEPT CYCLES as a mark on “bicycles” as of the July 30, 2009 effective filing date of its application (relevant to petitioner’s non-use claim), and (2) whether respondent so used its mark in the three consecutive years since July 30, 2009 (relevant to petitioner’s abandonment claim). Accordingly, petitioner’s cross-motion for summary judgment with respect to abandonment and non-use is denied. Summary Cancellation No. 92055282 15 Petitioner’s cross-motion for summary judgment, with respect to the issue of priority, is granted. Respondent’s motion and petitioner’s cross-motion with respect to likelihood of confusion are denied. Petitioner’s cross- motion for summary judgment with respect to abandonment and non-use is denied. Accelerated Case Resolution This proceeding appears to be suitable for resolution via the Board’s Accelerated Case Resolution (“ACR”) procedure. The parties are encouraged to give serious consideration to stipulating to resolution of the issues of likelihood of confusion, abandonment and non-use on the current record, as supplemented by further briefing to take place by an agreed-upon date certain, not to be beyond the deadline as reset (indicated below) for petitioner to serve its pretrial disclosures. Pursuing resolution by ACR will require the parties to stipulate, at a minimum, (1) that the Board will treat their cross-motions for summary judgment and evidence, and any supplementation thereto filed within the agreed-upon period, as the final record and briefs herein; (2) to forego trial; and (3) that the Board may make determinations of genuine disputes of material fact on the basis of the final record, and may issue a final ruling based thereon in accordance with the evidentiary burden at Cancellation No. 92055282 16 trial, that is, by a preponderance of the evidence. For additional and detailed information regarding ACR, the parties are referred to TBMP § 528.05(a)(2), as well as the following web page, under the heading “ACR & ADR…”: http://www.uspto.gov/trademarks/process/appeal/index.jsp If the parties stipulate to determination by ACR, they are directed to advise the Board by filing a notice to that effect prior to the deadline for petitioner to serve its pretrial disclosures, as reset below, and concurrently phoning the assigned interlocutory attorney (571-272-9183).8 Schedule Proceedings are resumed. Remaining disclosure, discovery and trial dates are reset as follows: Expert Disclosures Due 3/15/2013 Discovery Closes 4/14/2013 Plaintiff's Pretrial Disclosures due 5/29/2013 Plaintiff's 30-day Trial Period Ends 7/13/2013 Defendant's Pretrial Disclosures due 7/28/2013 8 If the parties do not opt to have the Board decide the remaining factual issues by ACR, they are advised that the evidence submitted in connection with the motions for summary judgment is of record only for consideration of those motions. To be considered at final hearing, any such evidence must be properly introduced in evidence during the appropriate trial period. See, e.g., Drive Trademark Holdings LP v. Inofin, 83 USPQ2d 1433, 1438 n.14 (TTAB 2007); Levi Strauss & Co. v. R. Josephs Sportswear Inc., 28 USPQ2d 1464 (TTAB 1993). The fact that we have identified certain issues in dispute should not be construed as a finding that these are necessarily the only issues which remain for trial. Cancellation No. 92055282 17 Defendant's 30-day Trial Period Ends 9/11/2013 Plaintiff's Rebuttal Disclosures due 9/26/2013 Plaintiff's 15-day Rebuttal Period Ends 10/26/2013 In each instance, a copy of the transcript of testimony, together with copies of documentary exhibits, must be served on the adverse party within thirty days after completion of the taking of testimony. Trademark Rule 2.l25. Briefs shall be filed in accordance with Trademark Rules 2.128(a) and (b). An oral hearing will be set only upon request filed as provided by Trademark Rule 2.l29. Copy with citationCopy as parenthetical citation