DivX, Inc.v.Calyptix Security CorporationDownload PDFTrademark Trial and Appeal BoardSep 23, 2010No. 91178083 (T.T.A.B. Sep. 23, 2010) Copy Citation Mailed: 9/23/10 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board ______ DivX, Inc. v. Calyptix Security Corporation _____ Opposition No. 91178083 to application Serial Nos. 78829354, 78868288 and 78868291 _____ Jane Shay Wald of Irell & Manella for DivX, Inc. James M. Harrington of The Harrington Practice for Calyptix Security Corporation. ______ Before Quinn, Bucher and Zervas, Administrative Trademark Judges. Opinion by Quinn, Administrative Trademark Judge: Calyptix Security Corporation (“applicant”) filed applications to register the marks DYVAX (standard characters),1 DYVAX PROTECTED (standard characters) (“PROTECTED” disclaimed),2 and the mark shown below (“PROTECTED” disclaimed)3 1 Application Serial No. 78829354, filed March 4, 2006, alleging a bona fide intention to use the mark in commerce. 2 Application Serial No. 78868291, filed April 24, 2006, alleging a bona fide intention to use the mark in commerce. 3 Application Serial No. 78868288, filed April 24, 2006, alleging a bona fide intention to use the mark in commerce. THIS OPINION IS NOT A PRECEDENT OF THE TTAB Opposition No. 91178083 2 all for the following goods: computer hardware; software for securing computer networks, namely, for preventing unauthorized access to and use of computer networks, for virus and malware prevention, for blocking and filtering unsolicited commercial e-mail and unauthorized content traffic, for enforcing network use policies, and for establishing virtual private networks. DivX, Inc. (“opposer”) opposed registration under Section 2(d) of the Trademark Act, 15 U.S.C. §1052(d), on the ground that applicant’s mark, when used in connection with applicant’s goods, so resembles opposer’s previously used and registered DIVX and DIVX “formative” marks for computer software and related services as to be likely to cause confusion. Applicant, in its answer, denied the salient allegations of likelihood of confusion. The record consists of the pleadings; the files of the involved applications; and trial testimony, with related exhibits, taken by opposer.4 Applicant neither took testimony nor offered any other evidence. Only opposer filed a brief. 4 Although opposer’s testimony deposition was marked “confidential,” in its brief opposer indicated that the testimony “is not filed under seal.” (Brief, p. 3). Opposition No. 91178083 3 Opposer is a digital media company engaged in the development of computer software, focusing on content security (as for example, digital rights management that protects files generated by the motion picture industry). Opposer commenced use of its DIVX mark in 2000. According to Lee Milstein, opposer’s vice president of business and corporate development, the term “DivX” is not derived from any words, and is not an acronym. Opposer’s encrypted content software is interoperable with computer hardware and consumer electronics. The manufacturers of consumer electronic products (e.g., Sony, Samsung and LG) work with opposer to create this interoperability and, after testing, these manufacturers may designate their goods as “DivX Certified.” These products that include the software, as for example, DVD players, digital televisions, digital cameras, mobile telephones and the like, are then sold to consumers through big-box retailers. Over 25 million hardware products incorporating opposer’s technology have been sold in the United States by opposer’s licensees; all of the products display one of opposer’s DIVX marks that is visible to consumers. Opposer also sells its software directly to consumers who are end-users desiring to create and play back files that are in the DivX format. Mr. Milstein estimates that consumers in the United States have downloaded opposer’s software approximately 80 million Opposition No. 91178083 4 times. Opposer also licenses use of the DivX format to the creators and sellers of online content. Opposer’s security solutions are used by the motion picture industry as opposer’s software protects copyright holders against unauthorized copying and illegal distribution without limiting where, how or when consumers may enjoy their video. Opposer’s security features are promoted on its own website as well as through third-party online retailers of content. Opposer has over 200 different business partners that are distributing opposer’s products in the United States; over one thousand different products currently are distributed under the marks via opposer’s partners and licensees. Opposer has established its standing. Mr. Milstein testified as to opposer’s use and registrations of its DIVX marks. In particular, opposer has properly made its pleaded registrations of record (see infra) and, further, has shown that it is not a mere intermeddler. Opposer’s use and registrations of its marks establish that opposer has standing. See Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842 (Fed. Cir. 2000); Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023 (Fed. Cir. 1999); and Lipton Industries, Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185 (CCPA 1982). Opposer owns the following registrations: Opposition No. 91178083 5 DIVX (typed form) for “on-line downloadable computer software for broadband video transfer” (in International Class 9), and “licensing of computer software” (in International Class 35);5 DIVX CERTIFIED (typed form)(“CERTIFIED” disclaimed) for “computer hardware and software for the receipt and display of broadcast video, audio, and digital data signals” (in International Class 9);6 and “testing, analysis and evaluation of the goods of others for the purpose of certification” (in International Class 42)7; DIVX ULTRA (standard character form) for “testing, analysis and evaluation of the goods of others for the purpose of certification” (in International Class 42);8 and DivX Connected (standard character form) for “computer hardware and software for downloading, transferring and sharing audio, video and other multimedia content among 5 Registration No. 2671143, issued January 7, 2003 under the provisions of Section 2(f); Section 8 affidavit accepted, Section 15 affidavit acknowledged. 6 Registration No. 3356851, issued December 18, 2007 pursuant to, in part as to “DIVX”, the provisions of Section 2(f). 7 Registration No. 2857603, issued June 29, 2004 pursuant, in part as to “DIVX”, to the provisions of Section 2(f); Section 8 affidavit accepted, Section 15 affidavit acknowledged. 8 Registration No. 3432805, issued May 20, 2008. Opposition No. 91178083 6 networked devices and devices that share a common communications protocol” (in International Class 9).9 In view of opposer’s ownership of these valid and subsisting registrations, there is no issue regarding opposer’s priority. King Candy, Inc. v. Eunice King’s Kitchen, Inc., 496 F.2d 1400, 182 USPQ 108 (CCPA 1974). Thus, the only issue to decide herein is likelihood of confusion. Our determination under Section 2(d) is based on an analysis of all of the facts in evidence that are relevant to the factors bearing on the likelihood of confusion issue. In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973). Opposer must establish that there is a likelihood of confusion by a preponderance of the evidence. In any likelihood of confusion analysis, however, two key considerations are the similarities between the marks and the similarities between the goods and/or services. See Federated Foods, Inc. v. Fort Howard Paper Co., 544 F.2d 1098, 192 USPQ 24 (CCPA 1976). These factors, and the other relevant du Pont factors in the proceeding now before us are discussed below. Opposer claims that “DIVX is an extremely well-known mark.” (Brief, p. 18). To the extent that this claim may 9 Registration No. 3552182, issued December 23, 2008, pursuant to, in part as to “DivX,” the provisions of Section 2(f). Opposition No. 91178083 7 be construed as a claim of fame, we begin with this du Pont factor. Fame of the prior mark plays a dominant role in likelihood of confusion cases featuring a famous mark. Bose Corp. v. QSC Audio Products Inc., 293 F.3d 1367, 63 USPQ2d 1303 (Fed. Cir. 2002); Recot Inc. v. M.C. Becton, 214 F.3d 1322, 54 USPQ2d 1894 (Fed. Cir. 2000); and Kenner Parker Toys, Inc. v. Rose Art Industries, Inc., 963 F.2d 350, 22 USPQ2d 1453 (Fed. Cir. 1992). Because of the extreme deference accorded to a famous mark in terms of the wide latitude of legal protection it receives, and the dominant role fame plays in the likelihood of confusion analysis, it is the duty of the party asserting fame to clearly prove it. Lacoste Alligator S.A. v. Maxoly Inc., 91 USPQ2d 1594, 1597 (TTAB 2009); and Leading Jewelers Guild Inc. v. LJOW Holdings LLC, 82 USPQ2d 1901, 1904 (TTAB 2007). The record establishes that opposer has enjoyed a degree of success with its goods and services sold under the DIVX marks, and that there has been appreciable promotion under the marks. However, opposer has not provided specific dollar figures for its sales or advertising expenses, nor has opposer placed its degree of success in any context. See Bose Corp. v. QSC Audio Products Inc., 63 USPQ2d at 1309. We find, therefore, that the record falls short of proving fame as contemplated by case law. Thus, while we find that opposer’s DIVX mark is well known in the software Opposition No. 91178083 8 field, we decline to confer on it, based on the record before us, the exalted status of “famous.” We next direct our attention to the ninth du Pont involving a “family” of marks. Opposer at various points in its brief refers to its “family” of DIVX marks. However, opposer did not plead in the notice of opposition ownership of a family of marks, and Mr. Milstein did not specifically make such a claim or otherwise testify as to any asserted family of marks. Accordingly, opposer’s claim in its brief that it owns a family of DIVX marks has not been considered in making our determination herein. We hasten to add that, in any event, opposer has not established a family of DIVX marks. In the past, the Board has looked at whether the marks asserted to comprise a “family” have been used and advertised in promotional material or used in everyday sales activities in such a manner as to create common exposure and, thereafter, recognition of common ownership based upon a feature common to each mark. American Standard, Inc. v. Scott & Fetzer Co., 200 USPQ 457, 461 (TTAB 1978). We obviously recognize that opposer uses no less than four different DIVX marks in connection with its software. The use of four DIVX marks is, of course, sufficient to comprise a family. This fact, however, is not the end of the story. That is, the mere fact of adoption, use and/or Opposition No. 91178083 9 registration of four DIVX marks does not in itself prove that a family of marks exists. J & J Snack Foods Corp. v. McDonald’s Corp., 932 F.2d 1460, 18 USPQ2d 1889 (Fed. Cir. 1991); Polaroid Corp. v. Richard Mfg. Co., 341 F.2d 150, 144 USPQ 419 (CCPA 1965); Trek Bicycle Corp. v. Fier, 56 USPQ2d 1527, (TTAB 2000); and Consolidated Foods Corp. v. Sherwood Medical Industries, Inc., 177 USPQ 279 (TTAB 1973). Although the record reveals some conjoint use of various combinations of opposer’s marks, the evidence falls short of showing that a family of marks has been promoted together. Accordingly, we find, based on the record before us, that opposer has not established a family of DIVX marks. Inasmuch as we are not considering opposer’s belated claim of a family of marks, the likelihood of confusion determination rests on a comparison of each of opposer’s marks, and the goods and/or services offered thereunder, with each of applicant’s marks and the goods set forth in the applications. However, for purposes of our decision in this proceeding, we will focus our analysis on opposer’s registered marks that cover software: DIVX for “on-line downloadable computer software for broadband video transfer”; DIVX CERTIFIED for “computer software for the receipt and display of broadcast video, audio, and digital data signals”; and DivX Connected for “computer software for downloading, transferring and sharing audio, video and other Opposition No. 91178083 10 multimedia content among networked devices and devices that share a common communications protocol.” In comparing the marks under the first du Pont factor, we examine the similarities and dissimilarities of the marks in their appearance, sound, meaning, and commercial impression. Palm Bay Imports Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689, 1694 (Fed. Cir. 2005). The test is not whether the marks can be distinguished when subjected to a side-by-side comparison, but rather whether the marks are sufficiently similar in their entireties that confusion as to the source of the goods offered under the respective marks is likely to result. In addition to the mark DIVX standing alone, opposer’s marks include DIVX CERTIFIED and DivX Connected. Applicant’s marks, in addition to the mark DYVAX standing alone, include DYVAX PROTECTED in both standard character form and in a logo. With respect to the parties’ composite marks, it is well settled that one feature of a mark may be more significant than another, and it is not improper to give more weight to this dominant feature in determining the commercial impression created by the mark. In re National Data Corp., 753 F.2d 1056, 224 USPQ 749, 751 (Fed. Cir. 1985) (“There is nothing improper in stating that, for rational reasons, more or less weight has been given to a Opposition No. 91178083 11 particular feature of a mark, provided the ultimate conclusion rests on consideration of the marks in their entireties. Indeed, this type of analysis appears to be unavoidable.”). As to opposer’s composite marks (all in typed or standard character form), each is dominated by DIVX, which is the first portion of the mark. Purchasers in general are inclined to focus on the first word or portion in a trademark. Presto Products, Inc. v. Nice-Pak Products, Inc., 9 USPQ2d 1895, 1897 (TTAB 1988) (“it is often the first part of a mark which is likely to be impressed upon the mind of a purchaser and remembered”). See Palm Bay Imports, Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 73 USPQ2d at 1692. Further, DIVX is likely the more distinctive portion relative to the respective “CERTIFIED” and “Connected” portions.10 The DIVX portion is the one most likely to be remembered by purchasers, and most likely to be used in calling for opposer’s computer software. The same type of analysis applies to each of 10 We take judicial notice of the following dictionary definitions: “certified”: “guaranteed; reliably endorsed”; and “connected”: “united, joined, or linked; having a connection.” The American Heritage Dictionary of the English Language (4th ed. 2006). The terms are at least highly suggestive, if not merely descriptive (“CERTIFIED” has been disclaimed). In the past, merely descriptive matter that is disclaimed has been accorded subordinate status relative to the more distinctive portions of a mark. In re Dixie Restaurants Inc., 105 F.3d 1405, 41 USPQ2d 1531, 1533-34 (Fed. Cir. 1997). Opposition No. 91178083 12 applicant’s composite marks, whether in standard characters or logo form. In each of these marks, DYVAX is the first portion and is the dominant portion, relative to the term “PROTECTED” and/or the other design features of applicant’s logo mark. In each instance, the word “PROTECTED” is disclaimed.11 See In re Dixie Restaurants Inc., 41 USPQ2d at 1533-34. In logo marks comprising words and a design, the words are normally accorded greater weight because the words are likely to make an impression upon purchasers, would be remembered by them, and would be used by them to request the goods. In re Appetito Provisions Co., 3 USPQ2d 1553, 1554 (TTAB 1987); and Kabushiki Kaisha Hattori Tokeiten v. Scuotto, 228 USPQ 461, 462 (TTAB 1985). See also Giant Food, Inc. v. Nation’s Food Service, Inc., 710 F.2d 1565, 218 USPQ 390 (Fed. Cir. 1983). In applicant’s logo mark, the word “PROTECTED” appears below DYVAX and in much smaller type font, clearly relegating the word to a subordinate role in the mark. Purchasers would be inclined to focus on the DYVAX portion in each of applicant’s composite marks, and is the portion most likely to be remembered by them, and most likely to be used in calling for applicant’s computer software. 11 The term “protected” is defined as “defended or guarded from attack.” The American Heritage Dictionary of the English Language (4th ed. 2006). Opposition No. 91178083 13 In view of the above, in considering the marks, the critical comparison is between opposer’s DIVX and applicant’s DYVAX, whether standing alone as a mark or as the dominant first portion of a composite mark. In terms of appearance, DIVX and DYVAX are similar, sharing three letters. As to sound, when asked how opposer’s DIVX mark is pronounced, Mr. Milstein indicated that the marks sound “very similar...regardless of how you pronounce the vowel.” (Milstein dep., p. 65). Although there is no correct pronunciation of a trademark, it is reasonable to expect that some consumers likely will vocalize them in a similar manner. The “DI-” portion of opposer’s mark, and the “DY-” portion of applicant’s mark can be pronounced similarly with an “eye” sound, as in “dye.” We also recognize that the “I” in opposer’s DIVX alternatively may be pronounced as a soft vowel, and in those cases, the marks may sound somewhat different. In any event, both DIVX and DYVAX end in the letter “X,” which further contributes to the similar sound of the marks. As to meaning, both DIVX and DYVAX would appear to be coined, and it is unknown what meaning purchasers are likely to ascribe to the respective marks. Given the similarities between the marks in sound and appearance, opposer’s DIVX marks and applicant’s DYVAX marks engender similar overall commercial impressions. Opposition No. 91178083 14 In sum, we find that the similarities between the parties’ marks outweigh any differences. Accordingly, the first du Pont factor supports opposer’s position that there is a likelihood of confusion. Insofar as the goods are concerned, it is well established that the goods of the parties need not be similar or competitive, or even offered through the same channels of trade, to support a holding of likelihood of confusion. It is sufficient that the respective goods of the parties are related in some manner, and/or that the conditions and activities surrounding the marketing of the goods are such that they would or could be encountered by the same persons under circumstances that could, because of the similarity of the marks, give rise to the mistaken belief that they originate from the same source. See Hilson Research, Inc. v. Society for Human Resource Management, 27 USPQ2d 1423 (TTAB 1993); and In re International Telephone & Telegraph Corp., 197 USPQ 910, 911 (TTAB 1978). The issue, of course, is not whether purchasers would confuse the goods, but rather whether there is a likelihood of confusion as to the source of the goods. In re Rexel Inc., 223 USPQ 830 (TTAB 1984). The question of likelihood of confusion herein must be determined based on an analysis of the goods recited in applicant’s applications vis-à-vis the goods identified in opposer’s pleaded registrations. Canadian Opposition No. 91178083 15 Imperial Bank v. Wells Fargo Bank, 811 F.2d 1490, 1 USPQ2d 1783 (Fed. Cir. 1992. As indicated earlier, we will focus on the parties’ software. Opposer’s registered marks cover the following: “on-line downloadable computer software for broadband video transfer; computer software for the receipt and display of broadcast video, audio, and digital data signals; and computer software for downloading, transferring and sharing audio, video and other multimedia content among networked devices and devices that share a common communications protocol.” Applicant is attempting to register its marks for “software for securing computer networks, namely, for preventing unauthorized access to and use of computer networks, for virus and malware prevention, for blocking and filtering unsolicited commercial e-mail and unauthorized content traffic, for enforcing network use policies, and for establishing virtual private networks.” Both parties’ computer software addresses security concerns. Although opposer’s identifications of goods do not specifically set forth a security function, software for downloading, transferring, sharing and displaying multimedia content often incorporates security features, a point confirmed by opposer. Mr. Milstein testified that every piece of software sold by opposer includes security features. According to Mr. Milstein, the opposer’s software Opposition No. 91178083 16 “incorporates the decryption end of the security chain.” Opposer further “license[s] our technology for encryption to customers in the United States so that their content can be encrypted. And we license the technology to the online retailers so that they can distribute content in the encrypted format, and that completes that portion of the security chain for software.” (Milstein dep., pp. 25-26). Exhibit 1 of Mr. Milstein’s testimony concerning “Content Distribution” reads, in part, as follows: The DivX® Digital Rights Management (DRM) solution enables secure digital distribution of DivX video through our content licensing platform for playback on the computer and the range of DivX Certified® consumer electronics products. It protects the copyright holders against unauthorized copying and illegal distribution without limiting where, how or when consumers may enjoy their video. Flexible, secure and nearly invisible to the end user, DivX DRM was developed with MPAA [Motion Picture Association of America] and Hollywood studios’ input to protect copyrights online and in devices while delivering a seamless user experience. Opposer owns patents relating to software security features, and opposer extensively promotes the security features of its software, especially to online retailers of content and to content providers like movie studios. In the words of Mr. Milstein, “[s]ecurity is an absolute requirement, and we push and market our features very strongly with them.” (Milstein dep., p. 29). The security Opposition No. 91178083 17 features are also part of each of the consumer electronic products that are sold with opposer’s technology as the hardware “incorporates the decryption aspects of the security protocols and the digital rights management.” (Milstein dep., p. 28). “[O]ur encryption solutions are for use across computer networks. It consists of several components. There’s a back-end encryption tool. There’s a storefront for the sale of content. There’s a domain-based rights management system, and those are all networked together and have to talk securely.” (Milstein sep., p. 60). Although the parties’ security software may be specifically different in overall purpose or function (security of content versus security of a computer network), the respective goods incorporate security features. And, applicant’s software functions, at least in part, to filter “unauthorized content traffic.” We find that the goods are sufficiently related for purposes of the likelihood of confusion analysis. Given that neither party’s identifications include limitations on trade channels, it is presumed that the identified goods are offered in all channels of trade which would be normal therefor, and that they would be purchased by all potential buyers thereof. In re Elbaum, 211 USPQ 639, 640 (TTAB 1981). Accordingly, we presume that the Opposition No. 91178083 18 parties’ software travels in the same or similar trade channels, as in direct sales to purchasers. As to classes of purchasers, applicant’s software, as identified in the applications, appears to be directed to entities with a computer network and, more specifically, to administrators of those computer networks. Because there are no limitations in opposer’s identifications of goods, purchasers of opposer’s software are presumed to include entities with a computer network and, more specifically, the network administrators. Based on the identifications of goods, the overlap in customers includes computer network administrators who deal, in all likelihood, both with network security and the security of online content. These administrators would be exposed to both types of software. To the extent that the common customers of the parties’ goods may be sophisticated, even careful purchasers are likely to be confused when encountering similar products offered under similar marks. As stated by our primary reviewing court, “[t]hat the relevant class of buyers may exercise care does not necessarily impose on that class the responsibility of distinguishing between similar trademarks for similar goods. ‘Human memories even of discriminating purchasers ... are not infallible.’” In re Research and Trading Corp., 793 F.2d 1276, 230 USPQ 49, 50 (Fed. Cir. 1986) quoting Carlisle Chemical Works, Inc. v. Hardman & Opposition No. 91178083 19 Holden Ltd., 434 F.2d 1403, 168 USPQ 110, 112 (CCPA 1970). The similarity between the marks and the goods in this proceeding outweigh any sophisticated purchasing decision. See HRL Associates, Inc. v. Weiss Associates, Inc., 12 USPQ2d 1819 (TTAB 1989), aff’d, Weiss Associates, Inc. v. HRL Associates, Inc., 902 F.2d 1546, 14 USPQ2d 1840 (Fed. Cir. 1990) (similarities of goods and marks outweigh sophisticated purchasers, careful purchasing decision, and expensive goods). In view of the above, the similarity between the goods, trade channels and class of purchasers weigh in favor of a finding of likelihood of confusion. Mr. Milstein testified that opposer is unaware of any actual confusion in the marketplace. (Milstein dep., p. 68). Mr. Milstein hinted at a reason, namely that applicant’s sales are “quite small.” Id. A showing of actual confusion would of course be highly probative, if not conclusive, of a likelihood of confusion. The opposite is not true, however. The lack of evidence of actual confusion carries little weight. J.C. Hall Co. v. Hallmark Cards, Inc., 340 F.2d 960, 144 USPQ 435, 438 (CCPA 1965). In any event, the involved applications are based on an intention to use the mark, and the record is devoid of probative evidence regarding the extent of use, if any, by applicant. Thus, we are unable to gauge whether there has been a Opposition No. 91178083 20 meaningful opportunity for confusion to have occurred in the marketplace. Moreover, as often stated, proof of actual confusion is not necessary to establish likelihood of confusion. Giant Food, Inc. v. Nation’s Foodservice, Inc., 218 USPQ at 396. Accordingly, the eighth du Pont factor of the length of time during and conditions under which there has been contemporaneous use without evidence of actual confusion is considered neutral. The du Pont factors, on balance, weigh in favor of a finding of likelihood of confusion. We conclude that opposer’s DIVX, DIVX CERTIFIED and DivX Connected marks and applicant’s DYVAX and DYVAX PROTECTED marks, and the computer software products sold under the marks, are sufficiently similar that purchasers thereof are likely to mistakenly believe that the goods originated with or are somehow associated with or sponsored by the same entity. Lastly, to the extent that there is any doubt about our finding of a likelihood of confusion, we resolve that doubt, as we must, in favor of opposer as the prior user and registrant. See Giant Food, Inc. v. Nation’s Foodservice, Inc., 218 USPQ at 395. Decision: The opposition is sustained, and registration to applicant is refused in each application. Copy with citationCopy as parenthetical citation