299614 Alberta Ltd.v.Fresh Hemp Foods, Ltd.Download PDFTrademark Trial and Appeal BoardMar 27, 2014No. 91201475 (T.T.A.B. Mar. 27, 2014) Copy Citation Mailed: March 27, 2014 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ 299614 Alberta Ltd. v. Fresh Hemp Foods Ltd. _____ Opposition No. 91201475 to Serial No. 85245329 _____ Bianca L. Scheirer of Scheirer Law Office, for 299614 Alberta Ltd. Christopher D. Erickson and Eric Beach of Tonkon Torp LLP, for Fresh Hemp Foods Ltd. _____ Before Ritchie, Wolfson, and Hightower, Administrative Trademark Judges. Opinion by Ritchie, Administrative Trademark Judge: On February 17, 2011, Fresh Hemp Foods Ltd. (“applicant”) applied to register the mark Hemp Hearts and design, as shown below, on the Principal Register for “processed edible hemp seeds” in International Class 291: 1 Application Serial No. 85245329,filed on February 17, 2011, based on a bona fide intent to use the mark in commerce, and disclaiming the exclusive right to use the term “hemp hearts” apart from the mark as shown. THIS OPINION IS NOT A PRECEDENT OF THE T.T.A.B. Cancellation No. 91201475 2 On September 6, 2011, opposer, 299614 Alberta Ltd. (“opposer”) opposed the registration of applicant’s mark. In the notice of opposition, opposer asserts that it coined the term “HEMP HEARTS” “to refer to its shelled hemp seeds” and that it has used the term as a mark therefor since prior to the filing date of the application. (notice at para. 2). Opposer further alleged that it has priority by virtue of such common-law use, and that it would be damaged by the registration of applicant’s mark. Id. at paras. 4 and 9. Opposer additionally alleged the ground of fraud on two bases: 1) that applicant at the time of filing the application and signing its affidavit asserted that no one Cancellation No. 91201475 3 else “has the right to use the mark in commerce”; and 2) that applicant disclaimed the term “hemp hearts,” and referred to the term in response to an office action as being descriptive; and that both of these statements were “false, material misrepresentations of fact.” Id. at paras. 12-15. In its answer, applicant denied the salient allegations of the notice, and asserted several affirmative defenses, including the following: The alleged word mark cited by Opposer as the basis for filing the Notice of Opposition, namely “HEMP HEARTS” is merely descriptive of, and/or is a generic term for, the goods Opposer claims to offer and sell under such mark, namely shelled hemp seeds, as evidenced by USPTO precedent and widespread third party usage. As such, Opposer does not have sufficient trademark rights or standing to oppose Applicant’s design mark application for HEMP HEARTS (and design). Both parties filed briefs, and opposer filed a reply brief. The Record and Evidentiary Objection The record consists of the pleadings; the file of the involved application; and, by stipulation of the parties attached as Schedule A to opposer’s brief, the following affidavits, together with exhibits thereto: 1. Affidavit of Roger Snow, sole director and officer of opposer, dated June 3, 2013, submitted by opposer during its testimony period. Cancellation No. 91201475 4 2. Affidavit of Mike Fata, President and co-founder of applicant, dated August 1, 2013, submitted by applicant during its testimony period. 3. Affidavit of Roger Snow, dated September 12, 2013, submitted by opposer during its rebuttal period. We note applicant’s objection to opposer’s rebuttal testimony and evidence as “opinion evidence that lacks personal knowledge.” However, some of the rebuttal evidence does regard opposer’s product. To the extent the rebuttal evidence relates to other information, such as third-party reports analyzing the content of applicant’s product, we accord the evidence such probative value as it may have, including relevance to this proceeding. See Fed. R. Evid. 701. Petitioner’s Standing and Priority of Use Petitioner has alleged common-law rights in the mark “HEMP HEARTS.” In particular, Mr. Snow states that petitioner sells “shelled hemp seeds” under that mark. (Snow June 3 affid. at para 7). Mr. Snow further attested to sales in the U.S., including current shipments under the mark. Id. at paras. 33, 37, and Ex. H. Opposer has thus established its standing to bring this proceeding. Giersch v. Scripps Network Inc., 90 USPQ2d 1020, 1022 (TTAB 2009). To establish priority on a likelihood of confusion claim brought under Trademark Act §2(d), a party must prove Cancellation No. 91201475 5 that, vis-à-vis the other party, it owns “a mark or trade name previously used in the United States … and not abandoned….” Trademark Act Section 2, 15 U.S.C. §1052. A party may establish its own prior proprietary rights in a mark through ownership of a prior registration, actual use or through use analogous to trademark use, such as use in advertising brochures, trade publications, catalogues, newspaper advertisements and Internet websites which create a public awareness of the designation as a trademark identifying the party as a source. See Trademark Act §§2(d) and 45, 15 U.S.C. §§1052(d) and 1127. See also T.A.B. Systems v. PacTel Teletrac, 77 F.3d 1372, 37 USPQ2d 1879 (Fed. Cir. 1996); Giersch v. Scripps, 90 USPQ2d at 1022. It is well settled that in the absence of any evidence of earlier use, an intent-to-use applicant may rely on the filing date of its underlying application to establish constructive use of its mark on this date. See Trademark Act Section 7(c), 15 U.S.C. § 1057(c). See also Larami Corp. v. Talk to Me Programs, Inc., 36 USPQ2d 1840 (TTAB 1995). In this case, and as noted above, the application was accorded a filing date of February 17, 2011. It is an intent-to-use application, and applicant did not introduce evidence of an earlier use date. See Fata affid. at para. 14. (“In July 2011, Fresh Hemp began using the Heart Design on all its hemp heart product packaging and marketing.”) Cancellation No. 91201475 6 Inasmuch as opposer has not pleaded ownership of any registered trademark, opposer must rely on its common-law use of HEMP HEARTS as a trademark to prove priority. In order for a plaintiff to prevail on a claim of likelihood of confusion based on its ownership of common-law rights in a mark, the mark must be distinctive, inherently or otherwise, and plaintiff must show priority of use. See Otto Roth & Co. v. Universal Foods Corp., 640 F.2d 1317, 209 USPQ 40 (CCPA 1981). Applicant has raised, as an affirmative defense, that the asserted common-law mark is “merely descriptive of, and/or is a generic term for the goods Opposer claims to offer and sell under such mark.” In accordance with applicant’s assertion, we examine whether the term “hemp hearts” is generic and/or merely descriptive of the goods for which opposer claims priority under the mark “HEMP HEARTS,” that is, “shelled hemp seeds.” There is a two-part test used to determine whether a designation is generic: (1) what is the genus of goods at issue? and (2) does the relevant public understand the designation primarily to refer to that genus of goods? H. Marvin Ginn Corp. v. Int’l Assn. of Fire Chiefs, Inc., 782 F.2d 987, 990, 228 USPQ 528, 530 (Fed. Cir. 1986). The public’s perception is the primary consideration in determining whether a term is generic. Loglan Inst. Inc. v. Logical Language Group Inc., 902 F.2d 1038, 22 USPQ2d 1531, Cancellation No. 91201475 7 1533 (Fed. Cir. 1992). Evidence of the public’s understanding of a term may be obtained from any competent source, including testimony, surveys, dictionaries, trade journals, newspapers and other publications. Loglan Inst., 22 USPQ2d at 1533; Dan Robbins & Associates, Inc. v. Questor Corp., 599 F.2d 1009, 202 USPQ 100, 105 (CCPA 1979). We find that the category of goods for which opposer claims priority would be adequately characterized as “shelled hemp seeds.” See Snow June 3 affid. at paras. 4, 5, 15, 25, 39. (stating, inter alia, “Opposer has sold shelled hemp seeds under the mark ‘HEMP HEARTS’ since at least as early as January 2001 and has continuously done so to date.”)2 The second part of the genericness test is whether the relevant public understands the designation primarily to refer to that class of goods. The relevant public for a genericness determination is the purchasing or consuming public for the identified goods. Magic Wand Inc. v. RDB, Inc., 940 F.2d 638, 19 USPQ2d 1551, 1553 (Fed. Cir. 1991). Mr. Snow has testified that he sells his “shelled hemp seeds” to “offices, clinics, health foods stores and businesses in the health and nutrition industry” but that he targets, and reaches, “generally members of the public who are interested in healthy foods and related products.” 2 This is also the identification of goods that opposer sought when it applied for trademark protection in Canada. (Snow June 3 affid. at paras. 13-14, and Ex. C.) Cancellation No. 91201475 8 (Snow June 3 affid. at paras. 16 and 18). In this regard, applicant submitted numerous instances of competitive use of the term “hemp hearts” to refer to the genus “shelled hemp seeds.” Some examples from various generally-available websites with generic top-level-domains include the following: divavillage: Hemp Seed Nutrition: Those who regularly consume hemp hearts (shelled hemp seed) report a lowering of their blood pressure and often a drop in their bad cholesterol. [web archive 2008]3 Hemp Hearts for Health and Weight Loss: Hemp Hearts: Posted by admin: What are hemp hearts anyway? Simply put they are shelled hemp seeds. In fact, hemp hearts are the “heart” of a shelled hemp seed. They are comparable in size and consistency to chopped sesame seeds. [web archive 2009] Chic galleria -- Eat Hemp Seed-Get Healthy: Those who regularly consume hemp hearts (shelled hemp seed) report a lowering of their blood pressure and often a drop in their bad cholesterol. The proteins and enzymes in hemp hearts, which works to soothe inflammation and reduce swelling, can also help arthritis sufferers. www.chicgalleria.com WheatgrassKits.com: Organic Hemp Seed: 16 oz. resealable bag of organic hemp hearts (shelled hemp seeds). Perfect for tasting, eating raw, in cereals and much more. Excellent choice for making your own vegan hemp milk. www.wheatgrasskits.com 12 superfoods for 2012-Part Three: Hemp hearts: You might need a side trip to the healthy food store for hemp seed, but it’s worth it. Hulled hemp seeds are spectacularly high in omega-3 and 3 The web excerpts were submitted by Mr. Fata as exhibits to his affidavit. Several were submitted as Internet archives. See Fata affid. at paras. 12, 13; and Exs. 4-23. Cancellation No. 91201475 9 omega-6 fatty acids and are an excellent source of protein. The heart of the hemp seed is also extraordinarily rich in vitamin E, phosphorus, manganese, and magnesium. Throw hemp hearts in everywhere: smoothies, . . . http://blogs.vancouversun.com/2012 Nuts.com: Organic Hemp Seeds (Raw, No Shell): All natural organic hemp seeds out of the shell, also known as hemp hearts. These are one of the world’s most nutritious seeds. www.nuts.com Greenscope Health Solutions: organic hemp hearts: Filled with vitamins and nutrients, hemp hearts will help you jump-start your day. Looking to stay focused, curb your appetite and speed weight loss? Hemp hearts are the answer! Greenscopehealthsolutions.com Hippie Butter: Hippie Butter Organic Hulled Hemp Seeds (hemp hearts) provide all the nutritional benefits of whole hemp seeds without the crunchy hulls. www.hippiebutter.com Hemp Hearts and Weight Loss: Hemp hearts are hulled hemp seeds. They produce a smooth, white, nutty flavored seed meal. Hemp seeds are used in many food preparations, such as nutritional bars, nut butters, bread, pancakes and porridge, . . . www.livestrong.com The Miracle Food!: The food we’re talking about has different names, depending on who sells it. If you’re going to do an Internet search for it after you’ve read this article, search for dehulled hemp seed, shelled hemp seed, hemp nuts or hemp hearts. We know it as hemp hearts. www.articlesbase.com/diseases-and-conditions- articles Nutiva – nourishing people & planet® Hemp Hearts are a raw vegan, gluten-free, and certified organic source of protein, vitamins, minerals, and essential fatty acids. . . . Note hemp hearts and hempseed are the same delicious thing! [web archive 2011] Cancellation No. 91201475 10 Fri, November 10th, 2006 Wilted Kale Salad with a Creamy Chipotle Dressing Inspired by the classic kale & avocado salad, this dish was a hit in New York when I made it, almost on a daily basis, for everyone at The Plant. (Postscript: The Plant is no longer open.) Chipotle peppers are jalapenos that have been smoked, and so are not raw. However, I love to use them as they have such a great taste and you don’t need to use many! I have provided an alternative combination of ingredients in the recipe as a substitute to using jalapenos that will give a similarly distinctive taste. This is a really hearty meal with a kick that’s perfect for those cold winter days! Serves 2 FOR THE WILTED KALE 11 oz (300 g) kale 1/2 teaspoon fine Himalayan salt 1 cup baby tomatoes, sliced 1/2 cup hulled hemp seeds (hemp hearts) Sign up for a free account and get my 10 Most Popular Recipes, free. Create My Free Account Member Login the raw chef | Wilted Kale Salad with a Creamy Chipotle Dressi... http://www.therawchef.com/wilted-kale-salad-with-a-creamy-c... Opposer argues that these uses began after applicant filed its application in 2011, and therefore would not have been considered generic at the time of the filing of the application. However, we find that according to web archives and other noted dates in the excerpts, a number of the uses pre-date 2011. Furthermore, the issue at hand, as noted above, is that it is incumbent on opposer to prove that it has a distinctive mark – at the time of trial. See Otto Roth & Co. v. Universal Foods Corp., 209 USPQ 40. We find, on this record, that the designation “hemp hearts” is generic for “shelled hemp seeds,” and that therefore opposer has not established proprietary rights in its claimed mark. As we have found opposer’s asserted mark to be generic, we cannot find associated secondary meaning. See 2 J. Cancellation No. 91201475 11 Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 12:1 (4th ed. 2013). We note nevertheless, for purposes of discussing secondary meaning, that for the reasons discussed above, based on the evidence of record, we would find the term to be highly descriptive of “shelled hemp seeds.” The higher the level of descriptiveness, the greater the proportionate showing of acquired distinctiveness need be. Yamaha Int’l Corp. v. Hoshino Gakki Co. Ltd., 840 F.2d 1572, 6 USPQ2d 1001, 1008 (Fed. Cir. 1988). As such, we do not find that opposer has adequately established secondary meaning. Among other things, we note the substantial number of third-party uses of the term. In re Franklin County Historical Society, 104 USPQ2d 1085, 1093 (TTAB 2012); Nextel Communications Inc. v. Motorola Inc., 91 USPQ2d 1393, 1408 (TTAB 2009); Quaker State Oil Refining Corp. v. Quaker Oil Corp., 453 F.2d 1296, 172 USPQ 361, 363 (CCPA 1972). We note, moreover, that opposer admits to not being able to assert its claimed rights in “HEMP HEARTS,” with Mr. Snow stating that opposer contacted several alleged infringers in 2011 but received “varying responses” which included some “denying having infringed” and others which “did not respond.” (Snow June 3 affid. at para. 59 and Ex. O). It does not appear from the record that opposer has been able to police its claimed rights effectively to the extent that any competitors have Cancellation No. 91201475 12 acquiesced to opposer’s claimed rights to the term “HEMP HEARTS” for “shelled hemp seeds.” Id. Overall, we find that that there are significant third-party uses, and that opposer’s use has not been substantially exclusive such as to show acquired distinctiveness. Without priority of rights in a mark, opposer cannot prevail in its claim of likelihood of confusion. Fraud The second ground for the opposition is fraud. Specifically, opposer avers, on two different bases, that applicant made intentionally false statements during the prosecution of its application. The first of these statements was made in the application under oath: that applicant was “entitled to use the mark in commerce” and “to the best of his/her knowledge and belief no other person, firm, corporation, or association has the right to use the mark in commerce.”4 (notice at para 12). Second, applicant stated in its June 9, 2011 Response to Office Action that ‘HEMP HEARTS’ is sometimes used to describe the inner part of a hemp seed within the applicant’s industry.” Id. at para. 13. The Court in In re Bose Corp., 476 F.3d 1331, 91 USPQ2d 4 We note that opposer did not specifically assert that applicant was aware of opposer’s “superior” rights. For this reason, the fraud claim was not properly pleaded. See Qualcomm, Inc. v. FLO Corp., 93 USPQ2d 1768, 1771 (TTAB 2010). Cancellation No. 91201475 13 1938, 1939 (Fed. Cir. 2009), set out the relevant standard for proving fraud: Fraud in procuring a trademark registration or renewal occurs when an applicant knowingly makes false, material representations of fact in connection with his application.” Torres v. Cantine Torresella S.r.l., 808 F.2d 46, 48 [1 USPQ2d 1483] (Fed. Cir. 1986). A party seeking cancellation of a trademark registration for fraudulent procurement bears a heavy burden of proof. W.D. Byron & Sons, Inc. v. Stein Bros. Mfg. Co., 377 F.2d 1001, 1004 [153 USPQ 749] (CCPA 1967). Indeed, “the very nature of the charge of fraud requires that it be proven ‘to the hilt’ with clear and convincing evidence. There is no room for speculation, inference or surmise and, obviously, any doubt must be resolved against the charging party.” Smith Int'l, Inc. v. Olin Corp., 209 USPQ 1033, 1044 (TTAB 1981). As indicated above, we have found that the term “hemp hearts” is used generically to describe or to refer to shelled hemp seeds. Accordingly, applicant’s statement that it is entitled to use the term in its application for “processed edible hemp seeds,” goods that would be generically identified by the term, was not fraudulent. Likewise, its response to the Office action was not in derogation of opposer’s rights or misrepresentative of the nature of the term “hemp hearts” for these goods. Since opposer has failed to show that any of the alleged statements made by applicant were false, let alone proving this to the hilt, petitioner’s claim of fraud fails. Cancellation No. 91201475 14 DECISION: The opposition is dismissed. Copy with citationCopy as parenthetical citation