Interlego A.G. and Lego Systems, Inc.v.Inventure Development Corp.Download PDFTrademark Trial and Appeal BoardDec 28, 1999No. 91101119 (T.T.A.B. Dec. 28, 1999) Copy Citation THIS DISPOSITION IS NOT CITABLE AS PRECEDENT OF THE TTAB DEC. 28, 99 Skoro Opposition No. 101,119 Interlego A.G. & Lego Systems, Inc. v. Inventure Development Corp. Before Seeherman, Hairston and Walters Administrative Trademark Judges. By the Board: An application has been filed by Inventure Development Corp. for the mark ECOSYSTEM for “construction toy kits consisting primarily of tubes, nodes, and panels” in class 28.1 The application has been opposed by Interlego and Lego Systems, claiming priority of use and ownership of numerous federal registrations for SYSTEM, LEGO and LEGO SYSTEM for numerous goods, including a full line of construction toys.2 1 Serial No. 74/628766, filed February 2, 1995, alleging a date of first use and first use in commerce of December 5, 1994. 2 Opposer claims ownership of, inter alia, U.S. Reg. No. 1,834,745, issued on May 3, 1994, for SYSTEM and design for “construction toys; toy building blocks and connecting links; toy UNITED STATES DEPARTMENT OF COMMERCE Patent and Trademark Office Trademark Trial and Appeal Board 2900 Crystal Drive Arlington, Virginia 22202-3513 Opposition No. 101,119 2 Opposer alleges that applicant’s use of ECOSYSTEM in connection with the identified goods is likely to cause confusion, mistake, or to deceive; and further that applicant has not used the mark in connection with goods in interstate commerce sufficient for registration purposes. Applicant denied all of the salient allegations. This case now comes up on opposer’s renewed motion for summary judgment, filed January 21, 1998.3 As grounds for the motion, opposer states that through discovery responses and a discovery deposition opposer now has evidence that applicant has never used the mark in commerce. Applicant responds, without any supporting evidence, contending that opposer does not have standing to raise the issue of a failure to use the mark because there is no likelihood of confusion and opposer thereby has unclean hands in filing the opposition. In support of its renewed motion, opposer submitted applicant’s responses to opposer’s first set of interrogatories and the transcript of the deposition of Scott W. Voorhees, president and founder of applicant, to establish that applicant conceded that it has produced only construction kits; toy figures; vehicular toys; and accessories therefor” in Class 28. 3 On August 16, 1996, opposer filed a motion for partial summary judgment on the issue that applicant had not used its mark. That motion was denied on July 21, 1997, finding that genuine issues of material fact remained as to whether applicant Opposition No. 101,119 3 one product, a prototype box, a photograph of which applicant filed as a specimen of use with its application, and has not made a sale of the goods. Based on this evidence, opposer argues that applicant’s claimed use of the mark for goods is patently false, that its claimed date of use of December 1994 is unsupported, and without bona fide use in commerce of the mark on the goods, the mark cannot be registered. 15 U.S.C. ∋∋ 1051(a) and 1127. Applicant’s response, unsupported by any evidence or affidavit, challenges opposer’s standing.4 The burden is on the party moving for summary judgment to demonstrate the absence of any genuine issue of material fact, and that it is entitled to summary judgment as a matter of law. Fed. R. Civ. P. 56(c). See also, Celotex Corp. v. Catrett, 477 U.S. 317 (1986). The evidence of record and any inferences which may be drawn from the underlying undisputed facts must be viewed in the light most favorable to the non-moving party. See, Olde Tyme Foods Inc. v. Roundy’s Inc., 961 F.2d 200, 22 USPQ2d 1542 (Fed. Cir. 1992). In considering the propriety of summary judgment, the Board may not resolve issues of material fact against the non-moving party; it may only ascertain whether was using the mark as of the filing date of applicant’s application and the extent of such use. 4 Opposer has standing by virtue of its pleaded registration and belief that there is a likelihood of confusion. The evidence of Opposition No. 101,119 4 such issues are present. See, Opryland USA, Inc. v. Great American Music Show, Inc., 970 F.2d 847, 23 USPQ2d 1471 (Fed. Cir. 1993); and Lloyd’s Food Products Inc. v. Eli’s Inc., 987 F.2d 766, 25 USPQ2d 2027 (Fed. Cir. 1993). In certain cases, however, even though disputes remain with respect to certain material facts, summary judgment may be granted, so long as all factual disputes are resolved in favor of the non-moving party and inferences drawn from the undisputed facts are viewed in the light most favorable to the non-moving party. See, Larry Harmon Pictures Corp. v. The William’s Restaurant Corp., 929 F.2d 662, 18 USPQ2d 1292, 1293 (Fed. Cir. 1991); and Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986) (“The evidence of the non- movant is to be believed, and all justifiable inferences are to be drawn in his favor”). Opposer’s papers demonstrate that applicant has not sold in commerce under its mark any of the items identified in its application. Mr. Voorhees states in his deposition testimony that prior to filing the application, he personally created the ECOSYSTEM box and contents in Singapore (dep. at 28); that it was intended to be a sample of how the product might be constructed (dep. at 30); that applicant contacted a major toy company in December 1994 for development of the product (dep. at 31); that the box was its standing is the certified copy of its registration and the Opposition No. 101,119 5 presented to that company in Tokyo (dep. at 42); that that has been the only presentation made of the product (dep. at 32); and the only package made (dep. at 33). Further, Mr. Voorhees testified that no other promotional activity occurred (dep. at 38); that the box was shipped to applicant’s San Francisco office for a sales and marketing review also around December, 1994 (dep. at 44); that the box was returned to Singapore after the meeting (dep. at 44) and now cannot be located (dep. at 45). Additionally, in its response to interrogatories numbered 12 and 13, applicant states that the goods are not being sold at this time. Applicant filed its application on February 2, 1995. In response to the motion for summary judgment, applicant has only raised a question about opposer’s standing which, as previously indicated, opposer has established by making of record its registration and evidence as to its use of the marks. Applicant has not shown that there are any genuine issues about the use of the mark. Thus, there is no genuine issue of material fact as to applicant’s activities regarding use of the mark; rather the issue is whether applicant’s use of the mark is adequate, which is a matter of law. The Lanham Act requires that marks be used in commerce to qualify for registration. 15 U.S.C. ∋ 1051(a). Prior to examples of the use of the mark on the goods. Opposition No. 101,119 6 the amendment of the Lanham Act in 1989, token use of a trademark was enough for registration purposes. However, even under the previous token use system, the Board stated that “sporadic, casual or nominal shipments of goods [which] bear a mark” will not qualify a mark for registration. Bellanca Aircraft Corp. v. Bellanca Aircraft Engineering, Inc., 190 USPQ 158, 167 (TTAB 1976). When the Lanham Act was amended in 1989, it provided for the filing of applications based on an intent to use, thereby eliminating the necessity for a token use system to reserve a mark, and instituting the requirement that the use must be in the “ordinary course of trade”, 15 U.S.C. ∋ 1127. See, Paramount Pictures Corp. v. White, 31 USPQ2d 1768 (TTAB 1994), aff’d White v. Paramount Pictures Corp., No. 96-1096, slip op. at 6 (Fed. Cir. Feb. 21, 1997). In the instant case, applicant’s “use”, as shown by the undisputed facts, would not satisfy the old token use standard, much less satisfy the more stringent ordinary course of trade standard necessary to establish use in commerce. There have been no sales under the mark. There has been no use of the mark in advertising or promotion. We find, as a matter of law, that creating one sample5 of a product and shipping it to one’s own company in the United 5 See also, Gay Toys, Inc. v. McDonald’s Corp., 199 USPQ 722, 723 (TTAB 1978) (a plaster mock-up of a truck did not constitute Opposition No. 101,119 7 States is not adequate use of the mark in commerce to establish trademark rights and to support a basis for filing an application under 15 U.S.C. ∋ 1051(a). See, Bellanca Aircraft Corp. supra at 167. See also, 2 McCarthy on Trademarks and Unfair Competition ∋ 19.103 et seq. (1996). In light of the foregoing, opposer’s motion for summary judgment is granted and judgment is hereby entered against applicant, the opposition is sustained and registration to applicant is refused. E. J. Seeherman P. T. Hairston C. E. Walters Administrative Trademark Judges, Trademark Trial and Appeal Board “toy trucks” as set forth in the application and therefore are not “goods” within the meaning of the Act). Copy with citationCopy as parenthetical citation