Robin Singh Educational Services, Inc.v.Test Masters Educational Services, Inc.Download PDFTrademark Trial and Appeal BoardMar 31, 2011No. 91163136 (T.T.A.B. Mar. 31, 2011) Copy Citation al Mailed: March 31, 2011 Opposition No. 91163136 Opposition No. 91164627 Opposition No. 91171241 Robin Singh Educational Services, Inc. v. Test Masters Educational Services, Inc. Before Grendel, Wellington, and Mermelstein, Administrative Trademark Judges. Test Masters Educational Services, Inc. seeks to register the following marks: TESTMASTERS1 for “educational services, namely, providing courses of instruction and materials to prepare students to take and achieve higher scores on standardized tests” in International class 41. TESTMASTERS2 for “computer software featuring materials for standardized test preparation, school admissions, namely private secondary school, undergraduate and graduate school selection, electronic applications, scholarships and financial aid and careers, namely, interest assessment, job search, job planning, job selection and career development not including vocational training in the industrial arts” in International Class 9; “printed materials, namely workbooks, 1 Serial No. 76413999, filed May 24, 2002, alleging March 17, 1992, as the date of first use and first use in commerce. The application was amended to remove a geographic restriction on August 27, 2002. 2 Serial No. 76456163, filed October 7, 2002, under Section 1(b) of the Trademark Act. UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 2 textbooks, and instructors' guides for standardized test preparation” in International Class 16; and “providing temporary use of on-line, non-downloadable computer software for standardized test preparation” in International Class 42. TEST MASTERS3 for “educational services, namely, providing courses of instruction and materials to prepare students to take and achieve higher scores on standardized tests” in International Class 41. Robin Singh Educational Services, Inc. (“opposer”) opposes registration of these marks on the following three grounds: (1) Applicant is bound by a prior jury determination that the marks are merely descriptive, and that therefore registration should be denied under Lanham Act § 2(e)(1) because applicant has not shown that the marks have become distinctive of the identified goods and services under Section 2(f). (2) In the event the jury’s finding of descriptiveness is not binding here, and applicant’s mark is found to be inherently distinctive, then registration should be denied under Lanham Act § 2(d) because opposer was the prior user of the mark. (3) Assuming that the marks are merely descriptive, the applications must be denied under Lanham Act § 2(d) because opposer’s TESTMASTERS mark has acquired distinctiveness This case now comes up for consideration of the following three motions4: 3 Serial No. 76306308, filed August 28, 2001, alleging March 17, 1992, as the date of first use and first use in commerce. The application was amended to remove a geographic restriction on August 23, 2002. 4 The Board’s order of September 8, 2010 is modified to the extent that applicant’s consented motion (filed June 23, 2010) for discovery is granted. See TTABVUE Entry No. 84. 3 (1) applicant’s motion (filed August 11, 2009) for summary judgment asking the Board to: (a) deny opposer’s claim under Section 2(d) because opposer is barred by the doctrines of collateral estoppel and res judicata from proving priority as a matter of law; or (b) in the alternative, identify as a matter of law the date by which opposer must establish secondary meaning in order to prove its priority. (2) opposer’s motion (filed May 20, 2010) for summary judgment in its favor on the ground that the applied-for marks are merely descriptive and without secondary meaning (as to applicant, but not opposer). (3) applicant’s motion (filed November 5, 2010) to strike and exclude Paul Kanarek as an expert witness for opposer. Background A review of the parties’ wide-ranging, long-standing dispute over the use and registration of the mark TESTMASTERS for educational services is in order. Both opposer and applicant offer test preparation services under the marks TESTMASTERS and TEST MASTERS. Opposer began offering LSAT test preparation services in California in 1991, and in 1996 opposer began its expansion beyond California. Applicant began offering SAT, GMAT, MCAT and other test preparation services in Texas in 1992, and in 2002 applicant began its expansion beyond Texas. In recent years, the parties 4 have competed directly and nationally, with opposer offering test preparation services for the SAT, GRE and GMAT (as well as the LSAT), and applicant offering test preparation services for the LSAT (as well as the SAT, GMAT and MCAT).5 In 1999, when opposer attempted to develop its website, it discovered that applicant had already registered the Internet domain name “testmasters.com.” Opposer then sent a demand letter to applicant, which led to applicant filing suit in the U.S. District Court for the Southern District of Texas seeking, among other things, a declaratory judgment of non-infringement and a ruling that opposer’s TESTMASTERS mark is descriptive and is without secondary meaning. Opposer later filed its own suit against applicant for trademark infringement in California, the cases were consolidated and, in February 2001, the cases were tried to a Texas jury which found that opposer’s mark was descriptive but had acquired secondary meaning. The jury also found that applicant had infringed opposer’s mark and committed unfair competition in California, but that applicant was an innocent prior user which had the exclusive right to use its mark in Texas. Based on the jury’s findings, the Court ordered applicant to transfer the domain name to opposer and ordered the 5 On March 23, 1991, opposer’s predecessor, Robin Singh, was issued U.S. Registration No. 2234514 for the TESTMASTERS mark for “educational services, namely, providing courses of instruction and materials to prepare students to take and achieve higher scores on standardized admission tests for graduate and professional schools” in International Class 41. Such mark was subsequently cancelled on March 11, 2003. 5 USPTO to modify opposer’s Registration No. 2234514 for TESTMASTERS to exclude Texas and confer on applicant the exclusive right to use its mark in Texas (“judgment is GRANTED in favor of the Plaintiff as to its claim for concurrent use rights of the mark ‘TESTMASTERS’ in the State of Texas.”). On appeal, the U.S. Court of Appeals for the Fifth Circuit agreed that opposer’s mark was descriptive, but held that opposer did not introduce sufficient evidence to establish secondary meaning. The court vacated the judgment for opposer on its unfair competition claim and vacated the order requiring applicant to transfer the domain name. Test Masters Educational Services, Inc. v. Singh, 64 USPQ2d 1469 (5th Cir. 2002) (the “First Appeal”). The appellate court also remanded the case for an order that opposer’s trademark registration was invalid. On September 5, 2002, pursuant to the decision in the First Appeal, the district court ordered the USPTO to cancel opposer’s Registration No. 2234514, and the USPTO complied on February 10, 2003. On July 26, 2002, just two days after the Fifth Circuit ordered cancellation of opposer’s registration because TESTMASTERS is descriptive and without secondary meaning, opposer filed a new geographically restricted application for TESTMASTERS, Serial No. 78148012, claiming rights to all of the United States except for the State of Texas. Applicant then 6 sought modification of the final judgment, which led to the district court issuing an injunction on July 14, 2003, which barred opposer from seeking registration of TESTMASTERS or TEST MASTERS with the USPTO, interfering with or opposing applicant’s registration of TESTMASTERS or TEST MASTERS with the USPTO or using these marks or any confusingly similar marks within Texas or directed at Texas. The Court ordered opposer to withdraw its then-suspended application Serial No. 78148012, which opposer ultimately did. On June 23, 2003, less than one year after the Fifth Circuit’s decision in the First Appeal, opposer filed another federal suit against applicant, this time in the U.S. District Court for the Central District of California (“California case”). While the causes of action included unfair competition, trademark infringement, false designation of origin and deceptive advertising, the facts recited in opposer’s complaint were somewhat different from the earlier dispute decided by the Fifth Circuit in the First Appeal. In this California case, opposer focused on applicant’s alleged changes to its website which, according to opposer, resulted in a false suggestion that applicant was opposer. Opposer requested an injunction barring applicant from using TESTMASTERS outside of Texas, requiring a disclaimer of affiliation with opposer on applicant’s website and enjoining further acts of unfair competition. 7 The California court transferred the case to the Southern District of Texas, where applicant filed a motion to dismiss based on res judicata. The Texas district court granted applicant’s motion on October 7, 2004, specifically rejecting opposer’s argument that the recent growth and public exposure of its business justified re-litigating the issue of secondary meaning. This decision and the July 14, 2003, injunction were again appealed to the Fifth Circuit (the “Second Appeal”). On appeal, the Fifth Circuit stated that “[t]he issue of whether res judicata bars relitigating the issue of secondary meaning [based on changed circumstances] here is a difficult one,” but ultimately concluded “that our prior cases do not support allowing [opposer] to re-litigate his claim.” Test Masters Educational Services, Inc. v. Singh, 428 F.3d 559, 573- 74, 76 USPQ2d 1865, 1873 (5th Cir. 2005), cert. denied, 547 U.S. 1055 (2006). However, the Fifth Circuit recognized that changed circumstances could at some point in the future allow relitigation of the secondary meaning issue: “The case law has not developed, and we do not today decide, precise time contours for the re-litigation of secondary meaning.” Id. at 575. In any event, the Court affirmed the dismissal of opposer’s claims for infringement. In addition, the Fifth Circuit modified the district court’s order preventing opposer from challenging applicant’s attempts to register TESTMASTERS at the USPTO, finding that the order should have been circumscribed “to only 8 enjoin [opposer] from opposing or interfering with [applicant’s] right to the mark within Texas.” Id. at 578. On November 13, 2003, opposer filed yet another suit in California, alleging, inter alia, infringement of the mark TESTMASTERS by Excel Test Prep, Inc. (“Excel”),6 which was transferred to the Southern District of Texas. Excel filed a motion for summary judgment on res judicata and collateral estoppel grounds. The District Court granted Excel’s motion and found that opposer had not alleged or demonstrated through evidence that a significant intervening factual change had occurred. The district court dismissed opposer’s claims in its September 28, 2006, order. On appeal for the third time, the Fifth Circuit on April 16, 2008, again affirmed, finding opposer’s claims barred by collateral estoppel. Robin Singh Educ. Servs., Inc. v. Excel Test Prep Inc., 274 Fed. Appx. 399, 86 USPQ2d 1430, 1435 (5th Cir. 2008)(the “Third Appeal”). The Fifth Circuit found that opposer had not presented “allegations of any factual developments in its establishment of secondary meaning post-2003,…” and noted that opposer had once again presented “the same types of factual allegations that deal primarily with [opposer’s] recent business success,” which was not dispositive of the question of secondary meaning. Id. The Fifth Circuit stated that “Robin Singh failed to establish 6 The district court found that Excel and applicant herein are privies. 9 secondary meaning anywhere in the United States, and therefore is estopped from trying to re-establish ‘secondary meaning’ anywhere in the United States….” Id. at 405. At the same time the parties were fighting over TESTMASTERS in various federal courts, they were engaged in multiple proceedings before the Board which were eventually consolidated under this proceeding. In its order7 of August 30, 2007, issued after the Fifth Circuit’s decision in the Second Appeal but prior to the Fifth Circuit’s decision in the Third Appeal, the Board issued a decision with regard to several pending motions at the time which turned, at least in part, on whether the Fifth Circuit’s decision in the Second Appeal collaterally estopped opposer from proceeding with its opposition. The Board found that applicant had established that the threshold elements of collateral estoppel applied. However, the Board found that opposer was not collaterally estopped from trying to prove in these consolidated proceedings that its mark has acquired distinctiveness under an exception to the collateral estoppel doctrine. Under such exception, “[c]hanges in facts essential to a judgment will render collateral estoppel inapplicable in a subsequent action raising the same issues.” Montana v. United States, 440 U.S. at 159; see also, Opryland USA v. Great American Music Show, 970 F.2d 847, 853, 23. The Board noted that opposer relied on this 7 Entry No. 22 in TTABVUE. 10 exception, asserting that the facts essential to the issue of secondary meaning have changed significantly since issuance of the February 2001 order considered in the First Appeal. The Board also noted that opposer made the same arguments to the Fifth Circuit in the Second Appeal, arguing there that the facts had changed since issuance of the February 2001 order at issue in the First Appeal. The Board acknowledged that the Fifth Circuit rejected these arguments in the Second Appeal, but noted that the circuit court specifically stated that the question was “a difficult one.” Test Masters Educational Services, 428 F.3d at 573, 576, 76 USPQ2d at 1875. The Board also noted that the Fifth Circuit acknowledged that opposer “presented evidence that his Testmasters company has become more successful since the prior judgment,” Id., 428 F.3d at 574, 76 USPQ2d at 1875, and overturned the district court decision preventing opposer from pursuing its claims against applicant in the USPTO. In its August 30, 2007 order, the Board stated as follows: It is now almost two years after the decision in the Second Appeal, and almost four years after the decision by the district court which led to the Second Appeal, and opposer has alleged in its filings additional intervening factual changes which, opposer claims, establish that its mark has acquired distinctiveness. Whether the operative date is 2003 or 2005, the amount of time since the earlier litigation is relatively short. Applicant claims that the amount of time is too short for opposer to show an intervening factual change sufficient to overcome collateral estoppel. We do not agree, however, that the amount of time is too short for opposer to at least attempt to prove its claims. As our primary 11 reviewing court stated in finding that six months was enough time for the acquisition of secondary meaning, “[t]he effect of mass exposure achievable with today’s communications media can not be ignored in determination of secondary meaning.” L.A. Gear, Inc. v. Thom McAn Shoe Co., 988 F.2d 1117, 1130, 25 USPQ2d 1913, 1923 (Fed. Cir.), cert. denied, 510 U.S. 908 (1993); see also, Metro Kane Imports, Ltd. v. Federated Department Stores, Inc., 625 F. Supp. 313, 316, 228 USPQ 761 (S.D.N.Y. 1985), aff’d, 800 F.2d 1128 (2d Cir. 1986) (“While a relatively short period of time has expired since the previous litigation, there is no basis to hold that a party is precluded as a matter of law from demonstrating that secondary meaning can be acquired within a few months.”). Opposer’s Motion for Summary Judgment We turn first to opposer’s cross-motion for summary judgment in its favor on the ground that the applied-for marks are merely descriptive and without secondary meaning (as to applicant, but not opposer). As a threshold matter, we must first determine if opposer has standing to bring this opposition against applicant. In order to have standing, a plaintiff must have a real interest in the proceeding and a reasonable basis for its belief of damage. See Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023 (Fed. Cir. 1999). We find that opposer’s use of a nearly identical mark for similar or identical services is a sufficient basis for standing, notwithstanding the prior federal decisions finding opposer’s mark merely descriptive. In support of its motion, opposer argues that the applied- for marks are merely descriptive; that during the years of 12 litigation between the parties applicant “vociferously argued (successfully) that the TESTMASTERS mark is merely descriptive”; during the 1999 civil action, the parties litigated the inherent protectability of the TESTMASTER mark and the jury in 2001 found that the marks are descriptive; that applicant now seeks to register the TESTMASTERS and TEST MASTERS marks without any claim of secondary meaning, but the law of estoppel bars this argument; that applicant never pled secondary meaning in its applications or in any of these oppositions and it cannot raise the issue now on summary judgment because it is an unpleaded defense; that estoppel aside, applicant cannot, as a matter of law, prove secondary meaning; and that because applicant can never show that it has made “substantially exclusive” use of the mark, judgment should be entered for opposer. In response, applicant argues that opposer is precluded from attempting to prove that opposer has attained secondary meaning in the mark; that opposer wrongly asserts that applicant is estopped by the prior litigation from arguing that its TESTMASTERS marks are inherently distinctive; that the prior litigation established that opposer’s alleged mark is merely descriptive (without secondary meaning) for its LSAT prep services, and collateral estoppel clearly precludes opposer from arguing that its mark is inherently distinctive; that there has never been a finding that applicant’s marks, as it uses them for the goods and services in the applications opposed herein, are 13 merely descriptive; that the USPTO examined each application and approved it for publication without issuing a descriptiveness refusal; that if opposer carries its burden of establishing that applicant’s marks are merely descriptive, it would be clear error to find that applicant cannot, as a matter of law, establish secondary meaning in those marks; and that applicant has produced and will present at trial more than enough evidence to support a finding of secondary meaning. In reply, opposer asserts that the Board should enter summary judgment in favor of opposer because, as a matter of law, applicant cannot establish that it is the substantially exclusive user of the marks — a prerequisite for applicant to obtain registration; that opposer “wins by a landslide on every measure of acquired distinctiveness…”; and that there is no triable issue of fact as to whether applicant is the substantially exclusive user of the marks. Summary Judgment Standard Summary judgment is only appropriate when there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(a). The mere fact that cross-motions for summary judgment on an issue have been filed does not necessarily mean that there is no genuine dispute of material fact, and that trial is unnecessary. The Board may not resolve issues of material fact; it may only ascertain whether a genuine dispute regarding a 14 material fact exists. See, Lloyd’s Food Products, Inc. v. Eli’s, Inc., 987 F.2d 766, 766, 25 USPQ2d 2027, 2029 (Fed. Cir. 1993). A factual dispute is genuine if, on the evidence of record, a reasonable fact finder could resolve the matter in favor of the non-moving party. See Opryland USA Inc. v. Great American Music Show Inc., 970 F.2d 847, 23 USPQ 1471, 1472 (Fed. Cir. 1992); Old Tyme Foods, Inc. v. Roundy’s, Inc., 961 F.2d 200, 22 USPQ2d 1542, 1544 (Fed. Cir. 1992). Analysis We begin our analysis by first determining if the mark(s) have been found to be merely descriptive. We look to the eleven questions that were posed to the jury in the 1999 case, when the issue of descriptiveness was decided.8 TTAVUE Entry No. 6. Among these questions was the following: (1) “Did the plaintiff [applicant] prove by a preponderance of the evidence that the defendant’s [opposer’s] mark is merely descriptive?” The jury answered in the affirmative. There is no question that this issue was actually litigated as the parties disputed the issue, the jury resolved it, and it was affirmed in the First Appeal. Given that the parties’ marks are identical or virtually identical and the goods and services are essentially the same, we find that both parties’ marks are merely descriptive and, therefore, are not inherently distinctive. According to the 8 In the appeal of this case and the subsequent civil actions between the parties, the issue of the descriptiveness of the TESTMASTERS mark was not at issue. 15 transcript of the 2001 trial, applicant’s own founder, Haku Israni testified that applicant “picked [the name] TEST MASTERS because is is extremely descriptive. Test Masters means mastering the test. We don’t even have to explain to anybody what Test Masters is… [W]e thought that was the most logical name, most descriptive name one can think of.” See Opposer’s Reply Brief, Ex. 1, TTABVUE Entry No. 103. Given the prior jury verdict, applicant’s admissions of descriptiveness, and the parties’ usage of essentially identical marks for essentially identical services, there is no genuine dispute as to the descriptiveness of either parties’ mark for the services at issue here. Having determined that the marks are descriptive, we consider whether applicant has acquired distinctiveness in its marks. We note that applicant seeks to register the mark TESTMASTERS and TEST MASTERS without any claim of secondary meaning under Section 2(f) in its applications and that it has not pled secondary meaning in these opposition proceedings.9 But applicant, in its answer, denied paragraph 21 of the Amended Notice of Opposition which states, in relevant part, as follows: “The mark TESTMASTERS has not become distinctive of goods and services offered by Applicant.” Hence, opposer’s suggestion that 9 TBMP Section 314 (2d ed. rev. 2004) states as follows: “A party may not obtain summary judgment on an unpleaded issue, nor may a party defend against a motion for summary judgment by asserting the existence of genuine issues of material fact as to an unpleaded claim or defense.” 16 it was not put on notice of applicant’s acquired distinctiveness argument is incorrect. Although opposer did not have to state in its pleading that applicant’s mark has not acquired distinctiveness, its having done so, along with applicant’s denial of that allegation, is the equivalent of applicant’s having explicitly set out its own pleading of acquired distinctiveness under a heading identifying it as a defense. In support of its position (set forth in its brief in response) that if the marks are found to be merely descriptive its marks have acquired distinctiveness, applicant has submitted some evidence and indicates that it “can and will present” more evidence to show secondary meaning at trial. "Distinctiveness is acquired by 'substantially exclusive and continuous use' of the mark in commerce." In re Owens-Corning Fiberglass Corporation, 774 F.2d 1116, 227 USPQ 417, 424 n. 11 (Fed. Cir. 1985), citing Levi Strauss & Co. v. Genesco, Inc., 742 F.2d 1401, 222 USPQ 939, 942 (Fed. Cir. 1984). In order to establish acquired distinctiveness, applicant must show that the primary significance of the proposed marks in the minds of consumers is not the goods or services but the source of those goods and services. See In re Steelbuilding.com, 415 F.3d 1293, 75 USPQ2d 1420, 1422 (Fed. Cir. 2005); In re Ennco Display Systems Inc., 56 USPQ2d 1279 (TTAB 2000). Acquired distinctiveness may be shown by direct or circumstantial evidence. Direct evidence includes testimony, 17 declarations or surveys of consumers as to their state of mind. Circumstantial evidence is evidence from which consumer association might be inferred, such as years of use, extensive amounts of sales and advertising, and any similar evidence showing wide exposure of the mark to consumers. There is no fixed rule for the amount of proof necessary to demonstrate acquired distinctiveness; however, the evidence required is in proportion to the degree of non-distinctiveness of the mark at issue. Yamaha Int. Corp. v. Hoshino Gakki Co. Ltd., 840 F.2d 1572, 6 USPQ2d 1001, 1008 (Fed. Cir. 1988). Thus, even long periods of substantially exclusive use may not be sufficient to demonstrate acquired distinctiveness. Moreover, the burden is particularly heavy when that use has not been exclusive. In re Gibson Guitar Corp., 61 USPQ2d 1948, 1952 (TTAB 2001) (66 years of use not sufficient given similarity of configuration to other guitars). See also Flowers Industries Inc. v. Interstate Brands Corp., 5 USPQ2d 1580, 1588-89 (TTAB 1987) ("long and continuous use alone is insufficient to show secondary meaning where the use is not substantially exclusive"). After having carefully considered the evidence of record, we find that there is no genuine issue of material fact that applicant has failed to show the substantially exclusive use of the marks, which is a prerequisite for proving acquired 18 distinctiveness. See Levi Strauss, 222 USPQ at 942.10 Based on the record, we find opposer’s use has been substantial. Such use is fatal to applicant’s claim of acquired distinctiveness. Thus, we agree with opposer’s assessment that the effect of its use is so extensive that applicant’s use fails to qualify as “substantially exclusive.” “When the record shows that purchasers are confronted with more than one (let alone numerous) independent users of a term or device, an application for registration under Section 2(f) cannot be successful, for distinctiveness on which purchasers may rely is lacking under such circumstances.” Levi Strauss, 222 USPQ at 940-941. Conclusion In view thereof, opposer's motion for summary judgment on the basis that applicant's marks are descriptive and have not acquired distinctiveness is hereby GRANTED. Judgment is entered against applicant and registration of the marks in all three subject applications is refused. Having reached this conclusion, we need not reach the remaining pending motions.11 Applicant’s motion to strike, 10 Given the extent of evidence submitted by both parties, allowing a trial on this matter would not change our conclusion. There is no triable issue of fact as to whether applicant is the substantially exclusive user of the marks; it is clear that it is not. 11 In addition, inasmuch as opposer did not move for summary judgment on its 2(d) claim, we need not reach this remaining claim. 19 motion for summary judgment, and any requests of the parties not addressed herein are deemed moot.12 12 We have not considered or relied on the specific evidence at issue in applicant’s motion to strike in reaching our decision herein. Copy with citationCopy as parenthetical citation