Nettadoz Enterprisesv.Cintron Beverage Group, LLCDownload PDFTrademark Trial and Appeal BoardMar 29, 2013No. 91200692 (T.T.A.B. Mar. 29, 2013) Copy Citation RK Mailed: March 29, 2013 Opposition Nos. 91200692 (parent) 91200807 Nettadoz Enterprises v. Cintron Beverage Group, LLC Before Quinn, Kuhlke and Mermelstein, Administrative Trademark Judges By the Board: By the Board’s institution orders of July 14, 2011 (parent), and July 20, 2011 (child), discovery closed on March 20, 2012, and March 26, 2012, respectively, and opposer’s pretrial disclosures were due on May 4, 2012, and May 10, 2012, respectively. On May 4, 2012, applicant filed a motion for summary judgment on the issue of standing and further sought consolidation of the two proceedings. Proceedings herein were consolidated and further suspended on May 18, 2012, pending disposition of the motion for summary judgment. On June 4, 2012, opposer filed a response to applicant’s motion and further cross-moved for partial UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 Opposition Nos. 91200692 (parent) and 91200807 2 summary judgment on the issue of standing.1 Opposer concurrently filed a motion for leave to use testimony from another proceeding as evidence in support of its cross- motion.2 Applicant’s motion and opposer’s cross-motion are fully briefed. Background Opposer Nettadoz Enterprises filed notices of opposition against application Serial Nos. 778079413 and 778079464 for the mark CINTRON based on claims of fraud, and primarily merely a surname under Section 2(e)(4) of the Trademark Act.5 1 Opposer’s response and cross-motion, including the exhibits thereto, lack a certificate of service as required under Trademark Rule 2.119. As applicant has responded to the motion and has not raised any service-related objections, we have considered the filing. 2 Again, opposer has failed to include a certificate of service as required under Trademark Rule 2.119. To the extent that the testimony was included as Exhibit 25 to opposer’s response and cross-motion and applicant has not raised any objection thereto, the motion is moot. 3 Filed August 19, 2009, for CINTRON in standard characters for “tea-based beverages” in International Class 30 and “energy drinks, sports drinks, fruit flavored beverages” in International Class 32. Applicant has claimed ownership of Registration Nos. 3410949 (for CINTRON 21) and 3600401 (for CINTRON ENERGY ENHANCER) and has claimed acquired distinctiveness under Section 2(f). 4 Filed August 19, 2009, for CINTRON in stylized form for “tea- based beverages” in International Class 30 and “energy drinks, sports drinks, fruit flavored beverages” in International Class 32. Applicant has claimed ownership of Registration Nos. 3410949 (for CINTRON 21) and 3600401 (for CINTRON ENERGY ENHANCER) and has claimed acquired distinctiveness under Section 2(f). 5 As originally filed, the notice of opposition in the parent proceeding only set forth a surname claim. Opposer subsequently amended the notice of opposition as a matter of course on August 3, 2011, to also include a claim of fraud. See Fed. R. Civ. P. 15(a)(1)(A). Opposition Nos. 91200692 (parent) and 91200807 3 In its pleadings, opposer has alleged that it is a Nigerian business that has used the CINTRON mark in connection with beverage products in Nigeria, that it has applied to register the mark in Nigeria,6 that opposer and its “trading partners” have used the mark elsewhere in Africa, that opposer’s “trading partners” have filed applications to register the mark in Africa and the United States, and that applicant was aware of these activities yet failed to mention them to the USPTO during prosecution of applicant’s applications. Following discovery, applicant now seeks summary judgment on the issue of opposer’s standing, arguing that because opposer has admitted that “(1) it has not attempted to register the marks at issue in the United States; (2) it has not used the marks in the United States; and (3) it has no intent to use the marks in the United States,” opposer “has no real interest in this or any proceeding before the U.S. Patent and Trademark Office, will not be damaged by the registration of the trademarks at issue, and therefore lacks standing to assert [these] Oppositions.” Applicant’s Motion for Summary Judgment, pp. 1-2. For its part, opposer contends that it has standing to oppose because it is a competitor of applicant and will be 6 The mark has since registered in Nigeria as of November 9, 2011. Opposer’s Response and Cross-Motion (hereafter “Cross- Motion”), Ex. 34. Opposition Nos. 91200692 (parent) and 91200807 4 damaged to the extent that the grant of a U.S. registration to applicant will provide applicant with more leverage to impede applicant’s expansion “in Africa and elsewhere” and will serve to block third parties “from entering the US market, preventing the possibility of [opposer] entering into a business relationship with such an entity to access the US market indirectly in the future” and that opposer “would be forever barred from entering the US market in the future.” Cross-Motion, pp. 2, 4-5. Opposer further contends that since “the instant oppositions are not based on § 2(d)[,] ownership of competing US rights or use of a competing US mark is not required to establish standing under §§ 2(a), 2(b), 2(c), or 2(e) [or] on the basis of fraud.” Id., pp. 2-3. Discussion A motion for summary judgment is a pretrial device intended to save the time and expense of a full trial when the moving party is able to demonstrate, prior to trial, that there is no genuine dispute of material fact, and that it is entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317 (1986); Opryland USA Inc. v. Great American Music Show Inc., 970 F.2d 847, 23 USPQ2d 1471 (Fed. Cir. 1992); and Sweats Fashions Inc. v. Pannill Knitting Co. Inc., 833 F.2d 1560, 4 USPQ2d 1793 (Fed. Cir. 1987). The evidence must be viewed in a Opposition Nos. 91200692 (parent) and 91200807 5 light most favorable to the non-moving party, and all reasonable inferences are to be drawn in the non-movant's favor. Lloyd’s Food Products, Inc. v. Eli’s, Inc., 987 F.2d 766, 25 USPQ2d 2027, 2029 (Fed. Cir. 1993); Opryland USA, supra. That each party has requested entry of judgment in its favor does not dictate a finding that there is no genuine dispute of material fact and that entry of summary judgment is warranted. University Book Store v. University of Wisconsin Board of Regents, 33 USPQ2d 1385, 1389 (TTAB 1994). Only if there are no disputes of fact to be decided will a determination be made as to which party is entitled to prevail under the applicable law. Turning then to the question of standing, it is a threshold issue that must be proven by a plaintiff in every inter partes case so as to prevent litigation when there is no real controversy between the parties. See 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). To establish standing, the plaintiff must demonstrate that it has a “real interest,” i.e., a direct and personal stake, in the outcome of the proceeding and a reasonable basis for its belief of damage. Ritchie, 50 USPQ2d at 1025-26. The Trademark Trial and Appeal Board is an administrative tribunal of the United States Patent and Opposition Nos. 91200692 (parent) and 91200807 6 Trademark Office, empowered to determine only the right to register in the United States. See Trademark Act § 17. Therefore, when considering the question of standing in a Board proceeding, the plaintiff must demonstrate a “real interest” that bears some connection to the United States. See, e.g., Corporacion Habanos, S.A. v. Rodriguez, 99 USPQ2d 1873 (TTAB 2011)(notwithstanding strictures of Cuban embargo, Cuban plaintiffs found to have alleged standing based on allegations of advertising its goods in the United States and “United States consumer deception”); and Fiat Group Automobiles S.p.A. v. ISM, Inc., 94 USPQ2d 1111 (TTAB 2010)(foreign plaintiff that did not allege ownership of a United States registration or any use of the mark in the United States nonetheless found to have a basis for pleading its standing based on plaintiff’s Section 66(a) application in the United States that was provisionally refused in view of defendant’s United States application). In reviewing the record, opposer has explicitly indicated “that it has not attempted to register the CINTRON mark in the United States,”7 “that as of April 30, 2012, Opposer has not made any use of the CINTRON mark … in the 7 Applicant’s Motion for Summary Judgment, Ex. F - Opposer’s Response to Applicant’s First Set of Requests for Admission, Response to Request for Admission No. 4. Opposition Nos. 91200692 (parent) and 91200807 7 United States,”8 and that “[a]s of April 30, 2012, Opposer has no intention of utilizing Opposer’s Marks in the U.S.”9 In view thereof, we find that opposer does not have standing in these proceedings. While it is true that a proprietary right in the marks in the United States is not a requisite to standing to raise claims based on fraud and Section 2(e), see Corporacion Habanos, S.A., 99 USPQ2d at 1875 (TTAB 2011), that is not to say that a foreign plaintiff can establish standing based solely on its foreign rights without any claim or interest related to the U.S. market. Opposer’s attempts to explain or establish a connection to the United States and, thus, its “real interest,” are not persuasive and simply underscore the speculative nature of opposer’s standing to proceed with its claims. For instance, opposer’s allegations concerning its “trading partners” and “business partners” who have filed applications to register the mark in the United States do not demonstrate a “direct and personal” interest on the part of opposer. Indeed, there is nothing in the record to suggest that these “partners” are anything more than independent third parties. Even under the Board’s liberal standing 8 Applicant’s Motion for Summary Judgment, Ex. G - Opposer’s Supplemental Discovery Responses, Supplemental Response to Request to Admit 1. 9 Applicant’s Motion for Summary Judgment, Ex. G - Opposer’s Supplemental Discovery Responses, Supplemental Response to Interrogatory 11. Opposition Nos. 91200692 (parent) and 91200807 8 rules, a party cannot gain standing by asserting the rights of unrelated third parties. See Colony Foods, Inc. v. Sagemark, Ltd., 735 F.2d 1336, 222 USPQ 185 (Fed. Cir. 1984)(possible rights of third party does not give plaintiff standing to cancel defendant’s registration). Furthermore, opposer’s contentions that it may potentially enter into a business relationship with a third party that has applied to register identical marks in the U.S. should the involved applications be successfully opposed, and that such a potential relationship may be foreclosed should the applications be allowed to register, demonstrate neither an interest that is real nor a belief of damage that is reasonable. To find standing under such indirect and inchoate circumstances would permit any entity to establish standing by simply referencing a third party that has standing and reciting a future possibility of a business relationship with that entity. The threshold for standing may be low but it is not non-existent. As to opposer’s claim that it is a competitor of applicant in Nigeria, opposer has failed to demonstrate, let alone articulate, how such a claim, taken as true, bestows opposer with standing to oppose applicant’s applications for the marks in the United States, particularly where opposer has expressly indicated that it has no intention of using the marks in the United States. That there may be a future Opposition Nos. 91200692 (parent) and 91200807 9 possibility of using the marks or even applying for registrations in the United States should the involved applications not register is not a sufficient basis for standing. Cf. International Telephone and Telegraph Corp. v. International Mobile Machines Corp., 218 USPQ 1024, 1027 (TTAB 1983)(“an allegation that a party believes that an existing registration will present a bar to the registration of its own mark is not … sufficient to serve as a reasonable basis for a belief that it is or will be damaged by the continued existence of the registration where no such refusal to register has in fact been made.”). Finally, opposer’s claim that it has standing by virtue of applicant’s assertion, via an affirmative defense, that opposer is a distributor or subdistributor of applicant is not well-taken as the claim has not been established by any evidence. Indeed, it is not clear how opposer can claim a direct and personal stake and/or a reasonable belief in damage based on an allegation that opposer itself clearly believes to be false. Decision In view thereof, we find that there is no genuine dispute of material fact concerning opposer’s standing. Accordingly, applicant’s motion for summary judgment is hereby GRANTED and opposer’s cross-motion for partial summary judgment is hereby DENIED. Opposition Nos. 91200692 (parent) and 91200807 10 The oppositions herein are DISMISSED with prejudice and the involved applications will proceed to registration in due course. * * * Copy with citationCopy as parenthetical citation