Raygun Limitedv.Planet 9 Studios, Inc. and SapientX Inc.Download PDFTrademark Trial and Appeal BoardMay 27, 202092064727 (T.T.A.B. May. 27, 2020) Copy Citation KIM May 27, 2020 Cancellation No. 92064727 Raygun Limited v. Planet 9 Studios, Inc. and SapientX Inc. (joined as party-defendant)1 Before Mermelstein, Bergsman and Larkin, Administrative Trademark Judges By the Board: This matter comes up on Petitioner’s combined motion2 for summary judgment on its pleaded claim of abandonment and for discovery sanctions in the form of judgment for Respondent’s failure to comply with an order of the Board.3 The motion is fully briefed. 1 An assignment of the registration at issue from Planet 9 Studios, Inc. (“Planet 9”) to SapientX Inc. (“SapientX”) was executed on May 1, 2018, and recorded in the Assignment Recordation Branch at Reel/Frame 6324/0448. As the registration was assigned after the commencement of this proceeding, SapientX Inc., as assignee, has been joined as a party defendant in accordance with the Board’s usual practice. See W. Worldwide Enters. Grp., Inc. v. Qinqdao Brewery, 17 USPQ2d 1137, 1138 n.4 (TTAB 1990) (assignee joined based on assignment executed after commencement of proceeding). Planet 9 and SapientX will jointly be referred to as Respondent. 2 16 TTABVUE. 3 10 TTABVUE. UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 General Contact Number: 571-272-8500 General Email: TTABInfo@uspto.gov THIS ORDER IS NOT A PRECEDENT OF THE TTAB Cancellation No. 92064727 2 Background On October 28, 2016, Petitioner filed a petition4 to partially cancel Registration No. 40497325 as to the goods in International Class 9 on the ground of abandonment. A discovery conference was held on January 11, 2017, with the Board’s participation.6 As part of the conference and in view of Respondent’s pro se status, the Board discussed with Respondent7 the technical and highly specialized nature of Board practice, that the Board does not provide legal advice, and that the Board holds pro se parties to the same standards and deadlines applicable to parties represented by counsel.8 Notwithstanding, Respondent confirmed that it would proceed pro se in this matter.9 On February 24, 2017, discovery opened,10 and Respondent filed an amended answer denying the salient allegations of the petition for cancellation.11 Petitioner served its initial disclosures on February 27, 2017, and its first set of interrogatories, 4 1 TTABVUE. 5 For the mark RAYGUN in standard characters for, in relevant part, “computer application software for mobile phones” in International Class 9. The underlying application was filed on July 16, 2009, under Section 1(a) of the Trademark Act, 15 U.S.C. § 1051(a), for the Class 9 goods and registered on the Principal Register on November 1, 2011. Section 8 affidavit accepted. 6 6 TTABVUE. 7 The Board in its institution order advised Respondent that unrepresented parties secure the services of an attorney in prosecuting or defending matters before the Board. See 2 TTABVUE 5. 8 6 TTABVUE. 9 Id. 10 Id. at 6. 11 7 TTABVUE. Cancellation No. 92064727 3 requests for production of documents and requests for admission on February 28, 2017.12 On April 4, 2017, Respondent untimely served responses to Petitioner’s requests for admission and otherwise declined to respond to the interrogatories and requests for production on the grounds that “they are exceedingly onerous and may take many months to respond to as is.”13 After attempting, without success, to meet and confer with Respondent concerning the outstanding discovery,14 Petitioner moved on May 10, 2017, to compel responses from Respondent.15 Respondent did not respond to Petitioner’s motion. Instead, on May 31, 2017, after the expiration of the time for responding to the motion, Respondent served responses, with objections, to Petitioner’s interrogatories and requests for production.16 On August 9, 2017, the Board granted Petitioner’s motion to compel as conceded and ordered Respondent to respond to Petitioner’s outstanding discovery requests in full and without objection on the merits no later than September 11, 2017.17 Despite this directive, Respondent failed to do so. One week following the expiration of the 12 17 TTABVUE 3. 13 Id. at 40. 14 Id. at 38-40. 15 8 TTABVUE. 16 16 TTABVUE 6; 17 TTABVUE 4. 17 10 TTABVUE. Cancellation No. 92064727 4 deadline and forty days after issuance of the Board’s order, Respondent filed an untimely request for reconsideration of the order,18 which the Board denied.19 Petitioner’s Motions Petitioner seeks summary judgment on its claim of abandonment based on the deemed admissions of Respondent as well as Respondent’s failure to adduce evidence of bona fide use of the subject mark in commerce for at least the three years immediately preceding the filing of the petition for cancellation. Alternatively, Petitioner seeks terminating sanctions in the form of judgment for Respondent’s failure to comply with a Board order compelling responses to Petitioner’s interrogatories and requests for production.20 Summary Judgment Standard 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, 18 11 TTABVUE. 19 20 TTABVUE. 20 By the Board’s order of April 29, 2019, Respondent was allowed thirty days to respond to Petitioner’s motion. 20 TTABVUE. Respondent filed a response on May 29, 2019, but attached no evidence in support thereof. 21 TTABVUE. Instead, Respondent provided a hyperlink to a Google Drive folder to which Respondent presumably uploaded evidence. Since the contents of such a drive are subject to change, Respondent cannot make the drive contents of record by simply providing an Internet link to the drive. See TV Azteca, S.A.B. de C.V. v. Martin, 128 USPQ2d 1786, 1790 n.15 (TTAB 2018) (“The Board does not accept Internet links as a substitute for submission of a copy of the resulting page.”); In re Olin Corp., 124 USPQ2d 1327, 1332 n.15 (TTAB 2017) (“Because the information displayed at a link’s Internet address can be changed or deleted, merely providing a link to a website is insufficient to make information from that site of record.”). However, on June 29, 2019, Respondent re-filed its response with exhibits, 23 TTABVUE, and on July 9, 2019, Petitioner filed a reply. 24 TTABVUE. Although the exhibits filed as part of Respondent’s renewed response are untimely, in view of Petitioner’s reply brief in support of its motion addressing the exhibits, we find that Petitioner has waived any timeliness objection to the exhibits and we have considered them as part of our determination of Petitioner’s motion. Cancellation No. 92064727 5 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 Am. Music Show Inc., 970 F.2d 847, 23 USPQ2d 1471 (Fed. Cir. 1992); and Sweats Fashions Inc. v. Pannill Knitting Co., 833 F.2d 1560, 4 USPQ2d 1793 (Fed. Cir. 1987). The evidence on summary judgment is viewed in a light most favorable to the nonmoving party, and all reasonable inferences are drawn in the nonmovant’s favor. Lloyd’s Food Prods., Inc. v. Eli’s, Inc., 987 F.2d 766, 25 USPQ2d 2027, 2029 (Fed. Cir. 1993). A factual dispute will be deemed genuine if, on the evidence of record, a reasonable fact finder could resolve the matter in favor of the nonmoving party. See Olde Tyme Foods, Inc. v. Roundy’s, Inc., 961 F.2d 200, 22 USPQ2d 1542, 1544 (Fed. Cir. 1992). The Board does not resolve disputes of material fact on summary judgment; rather, the Board only ascertains whether disputes of material fact exist. See Univ. Book Store v. Univ. of Wis. Bd. of Regents, 33 USPQ2d 1385, 1389 (TTAB 1994); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986) (“at the summary judgment stage the judge’s function is not himself to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.”). Where, as here, the party moving for summary judgment on a claim bears the burden of proof at trial on that claim, the moving party “must lay out the elements of its claim, citing the facts it believes satisfies those elements, and demonstrating why the record is so one-sided as to rule out the prospect of the nonmovant prevailing.” Cancellation No. 92064727 6 10A C. WRIGHT, A. MILLER & M. KANE, FEDERAL PRACTICE AND PROCEDURE Civil § 2727.1 (4th ed. 2019). If the moving party is able to meet this initial burden of production, the burden shifts to the nonmoving party to demonstrate the existence of specific genuinely disputed facts that must be resolved at trial. The nonmoving party may not rest on mere allegations or assertions but must designate specific portions of the record or produce additional evidence showing the existence of a genuine dispute of material fact. Should the nonmoving party fail to raise a genuine dispute of material fact as to an essential element of the moving party’s case, judgment as a matter of law may be entered in the moving party’s favor. Abandonment A claim of abandonment requires a showing that the party against whom the claim of abandonment is made “is not using the mark with its goods and services, and has no intent to resume use.” Lewis Silkin LLP v. Firebrand LLC, 129 USPQ2d 1015, 1020 (TTAB 2018). A showing of three consecutive years of nonuse is sufficient to establish a prima facie case of abandonment. See Trademark Act Section 45, 15 U.S.C. § 1127; Double Coin Holdings Ltd. v. Tru Dev., 2019 USPQ2d 377409, *15 (TTAB 2019). Thus, in order for Petitioner to prevail on its claim of abandonment on summary judgment, Petitioner must establish that there is no genuine dispute of any material fact that it has standing to maintain the proceeding and that (1) there has been no bona fide use of the mark in commerce by Respondent for three consecutive Cancellation No. 92064727 7 years, or (2) that Respondent has ceased using its mark in commerce and has no intent to resume such use. Standing Standing is a threshold issue that must be proven by a plaintiff in every Board inter partes case. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014); Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023 (Fed. Cir. 1999). 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. Petitioner has pleaded that its Application Serial No. 87009692 was refused registration based on Respondent’s registration21 and has submitted copies of its application and the Office’s refusal of registration based on Respondent’s registration.22 Additionally, Respondent has admitted in its answer that Petitioner’s “proposed registration was denied by the USPTO.”23 Accordingly, there is no genuine dispute of material fact that Petitioner has standing to petition to cancel the subject registration. See Parfums Nautee Ltd. v. Am. Int’l Indus., 22 USPQ2d 1306, 1307 (TTAB 1992) (petitioner has standing to seek cancellation of registration cited against its application). 21 1 TTABVUE 4. 22 17 TTABVUE 18-35. 23 7 TTABVUE 2. Cancellation No. 92064727 8 Motion for Summary Judgment Petitioner initially seeks summary judgment based on its requests for admission, which Respondent failed to timely answer. By operation of Fed. R. Civ. P. 36(a)(3), a requested admission is deemed admitted unless a written answer or objection to the request is served within thirty days of service of the request. See Fram Trak Indus. v. Wiretracks LLC, 77 USPQ2d 2000, 2005 (TTAB 2006). That Respondent ultimately served responses to Petitioner’s requests for admission does not cure the untimeliness of Respondent’s response and the requests will stand admitted unless Respondent can demonstrate that its failure to timely respond to the requests was the result of excusable neglect, or Respondent moves to withdraw or amend the admissions pursuant to Fed. R. Civ. P. 36(b). Respondent has done neither. Instead, Respondent merely claims that it attempted to participate in the discovery process in good faith and contends that Petitioner’s discovery requests were served on “a San Francisco residence that I have not lived at for (at that point) five years.”24 This argument is not well taken. First, it is the responsibility of Respondent to maintain current and accurate correspondence information for its registration. See Trademark Rule 2.18(c), 37 C.F.R. § 2.18(c). It is neither the responsibility of Petitioner nor the Board to verify that the correspondence information reflected on the registration is the most current for Respondent. Indeed, if, as Respondent contends, it had relocated to a new address at least five years prior to when Petitioner served its discovery requests on February 24 21 TTABVUE 3. Cancellation No. 92064727 9 28, 2017, Respondent had well over four years prior to the filing of the petition to update its physical address but failed to do so and did not raise the issue or otherwise mention any change in its address to either the Board or Petitioner during the parties’ discovery conference on January 11, 2017.25 Notwithstanding, it appears that Respondent’s email address remained unchanged and that Respondent received both the petition for cancellation and the Board’s institution order as evident from Respondent’s filing of its initial answer on the deadline for doing so.26 Moreover, in view of the changes to the Board’s rules of practice as of January 14, 2017, including the requirement for service by email, of which Respondent was apprised during the discovery conference,27 Respondent is incorrect in its claim that it “was never properly served.”28 The certificates of service accompanying Petitioner’s discovery requests show that service was properly made on Respondent’s email address of record,29 the accuracy of which is not disputed by Respondent. In view thereof, Petitioner’s requests for admission stand admitted. Pursuant to those admissions, in particular Requests for Admission Nos. 1-4, Petitioner has 25 Although Respondent alleges in its response that it “corrected my address with the USPTO multiple times,” id., the statement is neither verified nor supported by any evidence. 26 2 TTABVUE 3; 4 TTABVUE. 27 6 TTABVUE 1, 8-9. 28 21 TTABVUE 3. 29 17 TTABVUE 51, 59 and 69. Cancellation No. 92064727 10 established that Respondent did not use the mark RAYGUN in the sale of its Class 9 goods in interstate commerce from 2013 to 2016.30 In addition to these admissions, Petitioner has also put forth evidence in further support of its claim that there was no use of the mark in commerce by Respondent for the three years immediately preceding the filing of the petition for cancellation, i.e., October 2013 through October 2016.31 Specifically, Petitioner points out that Respondent “has produced no documents showing sales of goods or services of any kind in connection with the Mark between 2013 and the present” despite requests for documents directed to such information and that Respondent has “steadfastly refuse[d] to answer interrogatories directly asking when and how it has used the Mark in commerce.”32 For instance, in its untimely response to Document Request Nos. 9, 15 and 18, which respectively sought “[a]ll invoices, contracts or other sales documents evidencing sales of goods or services bearing Registrant’s Mark from 2011 to the present, by year,” “[a]ll documents, records, and things that illustrate, reflect, relate, or refer to the pricing of any goods and/or services that have been sold under Registrant’s Mark, and the dates of applicability of such prices,” and “[p]roof of sales of products or services using Registrant’s Mark to [companies] as set forth in 30 Requests for Admission Nos. 1-4. 17 TTABVUE 61-62. 31 Since the underlying application that matured into Respondent’s registration was filed under Section 1(a), the period of nonuse may be measured from no earlier than the filing date of the application, i.e., July 16, 2009. See ShutEmDown Sports, Inc. v. Lacy, 102 USPQ2d 1036, 1042 (TTAB 2012). 32 16 TTABVUE 11. Cancellation No. 92064727 11 paragraph 4 of your Answer to Cancellation Petition filed on December 12, 2016,”33 Respondent declined to produce any responsive documents on grounds that the requests were “exceedingly burdensome, time consuming and costly to produce” and further added in response to Request No. 18 that Respondent “purge[s] most records beyond 7 years … includ[ing] most of what you ask for.”34 Similarly, in response to an interrogatory seeking sales information under the subject mark, Respondent was unable to provide the information requested.35 Under Section 45 of the Trademark Act, three consecutive years of nonuse gives rise to the presumption of an intent not to resume use. See Lewis Silkin, 129 USPQ2d at 1020. Petitioner’s showing is sufficient to discharge its initial burden on summary judgment to demonstrate the absence of a genuine dispute of material fact on its claim of abandonment, shifting the burden of production to Respondent to demonstrate the existence of a genuine dispute of material fact.36 As there are two elements to an 33 Id. at 9-10. 34 Id. Because Respondent designated the whole of its discovery responses as confidential, Petitioner submitted the responses as exhibits under seal but has quoted in its brief Respondent’s objections without redaction. Accordingly, we have not cited directly to the confidential exhibits but instead have cited to the excerpts quoted in Petitioner’s brief insofar as they have been accurately reproduced. 35 Id. at 11. 36 While the sale of goods is not the only means by which use in commerce may be shown, see Section 45 of the Trademark Act (mark deemed to be in use in commerce when goods bearing the mark “are sold or transported in commerce”), Respondent has admitted in its answer that its goods are in the nature of “white-label” software which is not branded with the RAYGUN mark. 7 TTABVUE 3; see, e.g., CEATS, Inc. v. Continental Airlines, Inc., 526 Fed. Appx. 966, 107 USPQ2d 1606, 1608 (Fed. Cir. 2013) (observing that “white-label” products are “versions sold without branding so the purchasing entity can brand the product itself”). Since a “required element of use in commerce is some element of open or public use,” 3 J. Thomas McCarthy, MCCARTHY ON TRADEMARKS AND UNFAIR COMPETITION § 19:118 (5th ed. 2020), that Petitioner may not have presented evidence of Respondent’s failure to adduce evidence Cancellation No. 92064727 12 abandonment claim, i.e., nonuse of the mark and intent not to resume use, Respondent can avoid summary judgment by demonstrating the existence of a genuine dispute as to either element. See ShutEmDown Sports, 102 USPQ2d at 1042. For its part, Respondent references “43 documents”37 it has produced to Petitioner that putatively demonstrate sales of its goods under the RAYGUN mark.38 Of those documents, only five fall within the relevant 2013-2016 time period, with the remainder pre-dating 2013.39 Two of the five are of no probative value as there is no mention of the mark or indication that they concern “computer application software for mobile phones,”40 and the third is merely a set of agreements to assign and transfer, inter alia, the subject mark from Planet 9 to SapientX41 which, while perhaps probative of title, is not probative of Respondent’s use of the mark in commerce. of use based on transport of the goods will not preclude Petitioner from meeting its initial burden on summary judgment. 37 While we have not undertaken to confirm the accuracy of Respondent’s count, all of the documents provided as part of Respondent’s response have been considered. 38 21 TTABVUE 5. 39 Alexa + White Paper Draft [23 TTABVUE 14-24], Watts Towers contract with the Los Angeles County Museum of Art [Id. at 46-47], Visteon email correspondence from March 2016 [Id. at 51-54], assignment and transfer and stock purchase agreements between Planet 9 and SapientX wherein David Colleen, Planet 9’s representative, is listed as President of each company [Id. at 124-146], and an Internet Archive capture from October 31, 2014 [Id. at 50]. 40 Watts Towers contract and Visteon email. 41 Curiously, Planet 9 contends that SapientX is not a wholly owned subsidiary [21 TTABVUE 5] yet the document “Action by Unanimous Written Consent of the Board of Directors of Planet 9 Studios, Inc.” [23 TTABVUE 137] identifies SapientX as a wholly owned subsidiary of Planet 9. Cancellation No. 92064727 13 As to the two remaining documents, the Alexa + White Paper appears to be no more than a draft white paper or proposal wholly unrelated to the goods in question and internal to Respondent with no indication that it was presented or otherwise disseminated to potential consumers. The Internet Archive capture is insufficient, standing alone, to demonstrate use of the mark in commerce in connection with the subject goods. Such documents, like other Internet documents, are of limited probative value and may be used to demonstrate what they show on their face but cannot be relied on for the truth of the matters asserted therein. See Safer, Inc. v. OMS Invs., Inc., 94 USPQ2d 1031, 1039-40 (TTAB 2010). Respondent has presented no declarations or proof concerning the nature of the page, the goods offered therein, whether the page was made available to the public, and, if so, the extent to which the page was viewed. Accordingly, we find none of the evidence provided by Respondent competent to show use of the mark in commerce during the statutory three-year period. On the question of Respondent’s intent not to resume use, Respondent points to documents “used in discussions with Intel’s investment arm” for the purpose of attracting investment.42 These documents are not probative of Respondent’s intent during the period in question as they are from 2008 and 2009. Additionally, only the emails between Respondent and Intel mention the RAYGUN mark but, like the other documents, have nothing to do with Respondent’s Class 9 goods. The documents are, 42 Although not specifically identified by Respondent, we have identified three sets of Intel- related documents: 1) Intel Promotional Material Release (“PMR”) Form dated September 1, 2009 [23 TTABVUE 59], 2) correspondence dated June 22, 2009 and revised August 4, 2009 [id. at 60-62], and 3) emails from October 2008 to August 2009 [id. at 164-171]. Cancellation No. 92064727 14 therefore, insufficient to establish that a genuine dispute exists on the question of Respondent’s intent. As Respondent has failed to raise a genuine dispute of material fact on Petitioner’s claim of abandonment, Petitioner’s motion for summary judgment is GRANTED on its claim of abandonment as to the Class 9 goods. Discovery Sanctions in the Form of Judgment Finally, even if we were to find a genuine dispute sufficient to preclude summary judgment, judgment in favor of Petitioner is warranted in light of Respondent’s failure to comply with the Board’s order compelling Respondent’s discovery responses in full and without objection. Under Trademark Rule 2.120(h)(1), 37 C.F.R. § 2.120(h)(1), sanctions, including judgment, may be imposed for a party’s failure to comply with an order of the Board relating to discovery. By the clear terms of the Board’s order of August 9, 2017, Respondent was required to serve Petitioner with responses to Petitioner’s interrogatories and requests for production in full and without objection by September 11, 2017.43 Respondent failed to do so, choosing instead to file, one week after the Board-imposed deadline for response, an untimely request for reconsideration of the Board’s order. In both the request for reconsideration and the response to Petitioner’s motion for summary judgment, Respondent has raised its pro se status, its unfamiliarity with Board rules and procedure, its alleged good faith in its attempts to respond, its attempts to seek assistance from the Board, and the Board’s putative unwillingness 43 10 TTABVUE 2. Cancellation No. 92064727 15 to assist Respondent, as exculpatory circumstances that, in essence, should preclude the imposition of sanctions against Respondent. Notwithstanding Respondent’s claimed difficulty in navigating the Board’s rules and procedures, the Board’s directive was uncomplicated and the deadline was clear, yet Respondent failed to timely comply. Furthermore, Respondent was placed on notice at the start of this proceeding of the potential difficulties that lay ahead for a pro se litigant. Nevertheless, Respondent made a conscious choice to continue to proceed without counsel and therefore cannot avoid the adverse consequences of that choice. See Yanopoulos v. Dep’t of Navy, 796 F.2d 468, 470 (Fed. Cir. 1986) (“Petitioner chose to proceed pro se and must accept the consequences of that decision.”). Additionally, we must comment on Respondent’s less than exemplary interactions with opposing counsel in this matter. Despite being explicitly advised during the parties’ discovery conference of the parties’ duty to cooperate and to deal with one another in good faith,44 Respondent failed to observe discovery deadlines, refused to meet and confer with opposing counsel, and responded to counsel’s attempts to obtain Respondent’s discovery responses with unilateral demands and ad hominem attacks.45 This type of behavior is unwarranted, unjustified and unacceptable. 44 6 TTABVUE 2. 45 In a series of email correspondence between Petitioner’s counsel and Respondent that began with Petitioner’s service of its discovery requests, Respondent untimely emailed counsel characterizing counsel’s attempts to obtain discovery as “play[ing] games.” 17 TTABVUE 40. When counsel attempted to explain the Board’s rules and procedures as they relate to discovery and conveyed her willingness to meet and confer on the issues, id. at 39- 40, Respondent responded as follows: “Well you do play games and you continue to play them. Making absurd discovery requests is one of them. Making obtuse and long winded citations to Cancellation No. 92064727 16 Respondent’s failure to cooperate in discovery thus far casts grave doubt on Respondent’s willingness or ability to cooperate in any further discovery or in the conduct of any trial of this matter, should one be held. Since there is no dispute that Respondent failed to comply with the Board’s order compelling discovery responses and in view of Respondent’s conduct during the course of discovery, Petitioner’s motion for sanctions in the form of judgment as to the Class 9 goods is also GRANTED. See PolyJohn Enters. Corp. v. 1-800-Toilets, Inc., 61 USPQ2d 1860, 1862 (TTAB 2002) (Board is justified in enforcing procedural deadlines). Registration No. 4049732 will be cancelled in due course by the Commissioner for Trademarks as to the goods in International Class 9 only, but will otherwise remain unaffected as to the goods and services in International Classes 28, 39, 41 and 45. * * * a lay person is another. I find your game playing counter-productive, insulting and a sign of inexperience. … I will respond separately to reasonable discovery requests. If you will not respond in a professional manner about what is reasonable, I will make that decision for you.” Id. at 38-39. Copy with citationCopy as parenthetical citation