Allegis Group, Inc.Download PDFTrademark Trial and Appeal BoardJul 27, 2018No. 87340089 (T.T.A.B. Jul. 27, 2018) Copy Citation This Opinion is not a Precedent of the TTAB Mailed: July 27, 2018 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ In re Allegis Group, Inc. _____ Serial No. 87340089 _____ Sherry Flax of Saul Ewing Arnstein & Lehr LLP, for Allegis Group, Inc. Alex Seong Keam, Trademark Examining Attorney, Law Office 114, Laurie Kaufman, Acting Managing Attorney. _____ Before Bergsman, Shaw, and Heasley, Administrative Trademark Judges. Opinion by Heasley, Administrative Trademark Judge: Allegis Group, Inc. (“Applicant”) seeks registration on the Principal Register of the mark MSP DIRECT (in standard characters, with “MSP” disclaimed) for: Business management consultation in the field of business processes and expansion; Business management and consultation in the field of payroll processing, tax deposit filing and reporting, human resources management, employee time and attendance record keeping; Business management consultation in the field of capturing and analyzing information and data for the purpose of improving business processes and marketing campaigns; Employment hiring, recruiting, placement, staffing and career networking services; Market research; Personnel placement and recruitment; Supply chain management services; Business marketing Serial No. 87340089 - 2 - consulting services; Promotion and marketing services and related consulting in International Class 35.1 The Trademark Examining Attorney has refused registration of Applicant’s proposed mark under Section 2(e)(1) of the Trademark Act, on the ground that the proposed mark is merely descriptive of Applicant’s identified services. 15 U.S.C. §§ 1052(e)(1) and 1053. When the refusal was made final, Applicant twice requested reconsideration. After the Examining Attorney denied the requests for reconsideration, Applicant brought this appeal. We affirm the refusal to register. I. Applicable Law A term is unregistrable as a service mark on the Principal Register if, when used in connection with the identified services of the applicant, it is merely descriptive of them. 15 U.S.C. §§ 1052(e)(1) and 1053. See Apollo Med. Extrusion Tech., Inc. v. Med. Extrusion Tech., Inc., 123 USPQ2d 1844, 1848 (TTAB 2017). A term is merely descriptive within the meaning of Section 2(e)(1) “if it immediately conveys knowledge of a quality, feature, function, or characteristic of the goods or services with which it is used.” In re Chamber of Commerce of the U.S., 675 F.3d 1297, 102 USPQ2d 1217, 1219 (Fed. Cir. 2012) (quoting In re Bayer AG, 488 F.3d 960, 82 USPQ2d 1828, 1831 (Fed. Cir. 2007)); see also In re TriVita, Inc., 783 F.3d 872, 114 USPQ2d 1574, 1575 (Fed. Cir. 2015). 1 Application Serial No. 87340089 was filed on February 17, 2017, based upon Applicant’s allegation of a bona fide intention to use the mark in commerce under Section 1(b) of the Trademark Act. 15 U.S.C. § 1051(b). Page references to the application record are to the .pdf version of the USPTO’s Trademark Status & Document Retrieval (TSDR) system. References to the briefs, motions and orders on appeal are to the Board’s TTABVUE docket system. Serial No. 87340089 - 3 - It is the Examining Attorney’s burden to show that a term is merely descriptive of an applicant’s goods or services. In re Gyulay, 820 F.2d 1216, 3 USPQ2d 1009, 1010 (Fed. Cir. 1987). Once a prima facie case is established, the burden of rebuttal shifts to Applicant. In re Pacer Tech., 338 F.3d 1348, 67 USPQ2d 1629, 1632 (Fed. Cir. 2003). The Board resolves doubts as to the mere descriptiveness of a mark in favor of the applicant. In re Fat Boys Water Sports LLC, 118 USPQ2d 1511, 1512 (TTAB 2016). Here, Applicant has applied to register MSP DIRECT for services it summarizes as “employment hiring and staffing, business management, and market research services.”2 At the Examining Attorney’s request, Applicant has disclaimed MSP because it is the acronym for “Managed Service Providers,” which refers to businesses that manage the staffing needs of organizations, among other services.3 The disclaimer of a term pursuant to a requirement by the Examining Attorney is a concession that the term is at best merely descriptive. See In re Pollio Dairy Prods. Corp., 8 USPQ2d 2012, 2014 n.4 (TTAB 1988) (“By its disclaimer of the word LITE, applicant has conceded that the term is merely descriptive as used in connection with applicant’s goods.”) (citing State Oil Refining Corp. v. Quaker Oil Corp., 161 USPQ 547 (TTAB 1969), aff’d, 453 F.2d 1296, 172 USPQ 361 (CCPA 1972)). 2 Applicant’s brief, 4 TTABVUE 2. 3 May 17, 2017 Office Action TSDR p. 3; June 27, 2017 Response to Office Action TSDR p. 2. Applicant did not pursue the Examining Attorney’s advice to amend the application to seek registration on the Supplemental Register. May 17, 2017 Office Action TSDR p. 4. Serial No. 87340089 - 4 - The essential issue, then, is whether adding the word DIRECT to MSP renders the applied-for mark inherently distinctive. Whether a mark is merely descriptive is determined in relation to the services for which registration is sought and the context in which the mark is used, not in the abstract or on the basis of guesswork. In re Abcor Dev. Corp., 588 F.2d 811, 200 USPQ 215, 218 (CCPA 1978); In re Remacle, 66 USPQ2d 1222, 1224 (TTAB 2002). In other words, we evaluate whether someone who knows what the services are will understand the mark to convey information about them. DuoProSS Meditech Corp. v. Inviro Med. Devices Ltd., 695 F.3d 1247, 103 USPQ2d 1753, 1757 (Fed. Cir. 2012). “The analysis requires consideration of the possible significance that the mark would have to the average purchaser of the identified goods or services in the relevant marketplace. In re Chamber of Commerce, 102 USPQ2d at 1219; Bayer, 82 USPQ2d at 1831; Abcor, 200 USPQ at 218.” In re Well Living Lab Inc., 122 USPQ2d 1777, 1779 (TTAB 2017). According to the evidence of record, businesses and other organizations often use the services of managed service providers to recruit and manage their outsourced staffing needs, although the MSPs provide other outsourcing services, as well. For example: • Humera advertises, “As your MSP, we become your partner by taking an active role in managing your contingent workforce….”4 • Volt Consulting Group’s website states, “MSPs provide workforce management expertise for their clients’ contingent labor programs by securing talent from a 4 MyHumera.com 8/1/2017, Aug. 18, 2017 Office Action TSDR p. 10. Serial No. 87340089 - 5 - wide range of sources including staffing suppliers, outsourced service providers, independent contractors, and other talent pools.”5 • Solarwinds msp website defines “Managed Service Provider – An IT company that provides services, such as server monitoring and maintenance, for a number of different clients.”6 • Allegis Global Solutions’ website advertises “SIGMA: AGS’s new mid-market contingent workforce solution … Businesses are increasingly using contingent labor for their talent needs. More than 40% of the United States workforce now falls into the contingent category and companies of all sizes are embracing non- employee talent.”7 Hence, the average purchasers of MSP services would tend to be managers and other officers of client companies. These corporate purchasers, to whom the aforementioned advertising is directed, would, by virtue of their positions and managerial experience, be knowledgeable about the various types of MSP services. In the eyes of these purchasers, the Examining Attorney contends, “DIRECT is not a source identifying wording in the context of the applicant’s services and 5 VoltConsultingGroup.com 8/18/2017, Aug. 18, 2017 Office Action TSDR p. 17. 6 SolarWindsMSP.com 5/15/2017, May 17, 2017 Office Action TSDR p. 18. 7 AllegisGlobalSolutions.com 5/17/2017, May 17, 2017 Office Action TSDR p. 42. The Examining Attorney also cites to the definition of “Managed Services Provider” in Wikipedia, en.Wikipedia.org 8/18/2017, Aug. 18, 2017 Office Action TSDR p. 30. “[T]he Board will consider evidence taken from Wikipedia so long as the non-offering party has an opportunity to rebut that evidence by submitting other evidence that may call into question the accuracy of the particular Wikipedia information.” In re IP Carrier Consulting Grp., 84 USPQ2d 1028, 1032 (TTAB 2007). Serial No. 87340089 - 6 - therefore the applicant cannot claim exclusive rights to use the wording.”8 “Businesses and competitors should be free to use descriptive language when describing their own goods and/or services to the public in advertising and marketing materials,” he maintains,9 citing In re Abcor Dev. Corp., 200 USPQ at 217 (“The major reasons for not protecting such [merely descriptive] marks are: (1) to prevent the owner of a mark from inhibiting competition in the sale of particular goods; and (2) to maintain freedom of the public to use the language involved, thus avoiding the possibility of harassing infringement suits by the registrant against others who use the mark when advertising or describing their own products.”) and In re Styleclick.com Inc., 58 USPQ2d 1523, 1527 (TTAB 2001) (“The intent of Section 2(e)(1) is to protect the competitive needs of others, that is, descriptive words must be left free for public use”) (internal punctuation and citation omitted). In support of this position, the Examining Attorney quotes several pertinent dictionary definitions of “direct”, including “to supervise, manage…” and “by the shortest way…,”10 as well as “to manage or regulate the business or affairs of; be in charge of” and “having no intervening persons, conditions, or agencies, immediate.”11 In the context of MSP services, then, “MSP DIRECT describes the specified services as featuring or using Managed Service Providers directly to hire staff or in the direct 8 Examining Attorney’s brief, 6 TTABVUE 7. 9 May 17, 2017 Office Action p. 3. 10 YourDictionary.com 5/17/2017, May 17, 2017 Office Action TSDR p. 22. 11 AHDictionary.com 8/18/2017, Aug. 18, 2017 Office Action TSDR pp. 62-64; Examining Attorney’s brief, 6 TTABVUE 7. Serial No. 87340089 - 7 - management of an organization’s business needs. MSPs may assimilate into a company and act as the recruitment office that would directly hire staff,” the Examining Attorney concludes.12 Applicant protests that “DIRECT has many definitions that could be understood by consumers to apply to Applicant’s services.”13 It continues: Merriam Webster provides the following definitions: to impart orally; to regulate the activities or course of; to carry out the organizing, energizing, and supervising of; to follow a straight course; to point out. …. Any of these definitions are easily ascribed to Applicant’s services as they might be understood by relevant consumers in connection with MSP. MSP DIRECT might refer to Applicant itself providing business consulting services, organizing the activities of third party contractors, or holding in person meetings. It might also refer to Applicant placing third party consultants to perform services, or to the quick provision of any of these services. Because DIRECT does not necessarily refer to the “managing or supervising work” interpretation (that is not found in the dictionary), consumers cannot immediately understand its meaning. It requires some operation of the imagination to connect the term DIRECT to a feature of Applicant’s MSP services. The need for additional information to understand the meaning of DIRECT renders it suggestive, not merely descriptive, of Applicant’s services.14 However, “[s]o long as any one of the meanings of a word is descriptive, the word may be merely descriptive.” In re IP Carrier Consulting Grp., 84 USPQ2d 1028, 1034 (TTAB 2007). As we have noted above, we must consider the descriptiveness of a mark in the context of the relevant services. In re Chamber of Commerce of the U.S., 102 USPQ2d at 1219. The evidence the Examining Attorney has adduced from third party usage indicates that Management Service Providers can essentially step into the 12 Examining Attorney’s brief, 6 TTABVUE 7. 13 Applicant’s brief p. 5, 4 TTABVUE 6. 14 Applicant’s brief p. 3, 4 TTABVUE 4; Applicant’s June 27, 2017 Response to Office Action TSDR pp. 2, 6. See also Applicant’s reply brief p. 2, 7 TTABVUE 3. Serial No. 87340089 - 8 - shoes of their client companies and directly recruit, hire, and supervise contingent staff for the benefit of the client companies. For example: • Allegis Global Solutions states: 15 • Volt Consulting Group states: 16 15 AllegisGlobalSolutions.com 5/17/2017, May 17, 2017 Office Action TSDR p. 44. 16 VoltConsultingGroup.com 8/18/2017, Aug. 18, 2017 Office Action TSDR p. 17. Serial No. 87340089 - 9 - • Humera states: 17 Applicant argues that Humera began using the term “MSP Direct” after Applicant filed its subject application.18 That argument misses the point. Even if Applicant were the first to combine these descriptive terms (which has not been shown) trademark law does not countenance someone obtaining “a complete monopoly on use of a descriptive term simply by grabbing it first.” KP Permanent Make-Up, Inc. v. Lasting 17 MyHumera.com 8/1/2017, Aug. 18, 2017 Office Action TSDR p. 11. 18 Applicant’s reply brief pp. 2-3, 7 TTABVUE 3-4. Serial No. 87340089 - 10 - Impression I, Inc., 543 U.S. 111, 72 USPQ2d 1833, 1838 (2004) quoted in In re Fat Boys Water Sports, 118 USPQ2d at 1514-15. Such terms can quickly spread in general parlance. In re Styleclick.com, 58 USPQ2d at 1527. As the examples above demonstrate, that is the way the Management Service Providers advertise their services to client companies, and the way those client companies’ officers would understand the term DIRECT in the context of those services: direct recruitment and supervision of the contingent workforce. DuoProSS Meditech v. Inviro Med. Devices, 103 USPQ2d at 1757; In re Chamber of Commerce, 102 USPQ2d at 1219 (consider significance of term from perspective of average purchaser of identified services in the relevant marketplace). This evidence supports a finding that the term is not source-identifying, and cannot be appropriated by one MSP; it is descriptive, and must be available to competitors. In re Abcor, 200 USPQ at 217; In re Styleclick.com Inc., 58 USPQ2d at 1527.19 In further support of his position, the Examining Attorney submits evidence of seven third-party registrations featuring business services, some of which are similar to Applicant’s, with DIRECT disclaimed or the mark is registered on the 19 The Examining Attorney adds that “DIRECT is also merely descriptive of the marketing services because businesses market or sell goods directly to consumers rather than through retailers.” Examining Attorney’s brief, 6 TTABVUE 7; Sept. 8, 2010 Office Action TSDR p. 20. We find it unnecessary to reach this interpretation in view of the evidence establishing that Managed Service Providers directly recruit and supervise contingent staff. “A term need not immediately convey an idea of each and every specific feature of the applicant’s goods or services in order to be considered merely descriptive; it is enough that the term describes one significant attribute, function or property of the goods or services. In re Chamber of Commerce, 102 USPQ2d at 1219.” In re Highlights for Children, Inc., 118 USPQ2d 1268, 1270 (TTAB 2016). Serial No. 87340089 - 11 - Supplemental Register. These include: ENGINE DIRECT, Reg. No. 4119207 for inter alia “marketing consulting and marketing plan development in the field of business development; business development services in the fields of product innovation, marketing strategy, advertising, customer acquisition, customer retention, customer service” in Class 35 (DIRECT disclaimed);20 LATAM DIRECT, Reg. No. 4137133 for inter alia “distributorship services in the field of computer software and technology solutions services, and professional business consultation services relating to technology solutions in the fields of business, education, healthcare and government” in Class 35 (Supplemental Register; DIRECT disclaimed);21 CAPSTONE DIRECT, Reg. no. 4691823 for “business consultation and management regarding marketing activities and launching of new products” in Class 35 (DIRECT disclaimed);22 JMFA DIRECT, Reg. No. 2964000 for inter alia “business management services for financial institutions; business consulting in the field of economic, regulatory, earnings improvement and strategic planning for financial institutions” in Class 35 (DIRECT disclaimed);23 TOP SHELF DIRECT, Reg. No. 4897761 for “business management consulting and advisory services” in Class 35 (DIRECT disclaimed).24 Applicant counters this third-party registration evidence with 17 registrations in which DIRECT is not disclaimed.25 For example: DIRECT SOURCE, Reg. No. 5064026 for “employment staffing consultation services; employment agency services, namely, filling the temporary and permanent staffing needs of businesses; employment hiring, recruiting, placement, staffing and career networking services; professional staffing and recruiting services; employment recruiting services; executive recruiting services; executive search and placement 20 May 17, 2017 Office Action TSDR pp. 33-35. 21 Id. at 36-38. 22 Id. at 39-40. 23 July 18, 2017 Office Action TSDR pp. 8-10. 24 Id. at 18-19. 25 Applicant’s brief pp. 3-4, 4 TTABVUE 4-5. Serial No. 87340089 - 12 - services; professional staffing and recruiting services” in Class 35;26 TMAC DIRECT & Design, Reg. No. 4889063 for “employment recruiting, placement, and staffing in the fields of health care, medicine, medical device development, pharmacology and biotechnology” in Class 35;27 PHARM TECH DIRECT, Reg. No. 5235961 for “employment hiring, recruiting, placement, staffing and career networking services” in Class 35 (PHARM TECH disclaimed);28 ISSUER DIRECT & Design, Reg. No. 5169309 for “platform as a Service (PAAS) featuring computer software platforms to enable companies to produce, disclose, and distribute financial documents, namely, disclosure documents sent to federal agencies for compliance purposes, and press releases and other similar communications to financial professionals for business purposes” (ISSUER disclaimed) in Class 42;29 BACKHAUL DIRECT, Reg. No. 4987366 for inter alia “freight logistics management; transportation logistics services, namely, arranging the transportation of goods for others; business management consultation in the field of freight transportation logistics” (BACKHAUL disclaimed) in Class 35.30 Applicant argues that these registrations “demonstrate that the USPTO recognizes that the term DIRECT is not merely descriptive in connection with business services, including the employment and staffing services that Applicant provides.” Citing In re Morinaga Nyugyo Kabushiki Kaisha, 120 USPQ2d 1738, 1745 (TTAB 2016); In re Box Sols. Corp., 79 USPQ2d 1953, 1955 (TTAB 2006).31 The Examining Attorney rejoins that “The applicant’s registration evidence is not 26 Aug. 18, 2017 Response to Office Action TSDR p. 4. 27 June 27, 2017 Response to Office Action TSDR p. 19. 28 July 28, 2017 Response to Office Action TSDR p. 5. 29 June 27, 2017 Response to Office Action TSDR p. 12. 30 Id. at 15. 31 Applicant’s brief p. 4, 4 TTABVUE 5. Serial No. 87340089 - 13 - compelling because the third party registrations proffered by the applicant do not contain the same or similar services as in the instant case.”32 Although not controlling, “[t]hird-party registrations can be used in the manner of a dictionary definition to illustrate how a term is perceived in the trade, industry, or ordinary parlance. Juice Generation, Inc. v. GS Enters. LLC, 794 F.3d 1334, 115 USPQ2d 1671, 1675 (Fed. Cir. 2015).” RxD Media, LLC v. IP Application Development LLC, 125 USPQ2d 1801, 1812 (TTAB 2018). “Such third party registrations show the sense in which the word is used in ordinary parlance and may show that a particular term has descriptive significance as applied to certain goods or services.” Inst. Nat’l des Appellations D’Origine v. Vintners Int’l Co., 958 F.2d 1574, 22 USPQ2d 1190, 1196 (Fed. Cir. 1992). In this case, the third-party registration evidence is inconclusive. The most the registrations demonstrate is that the term DIRECT is merely descriptive in some contexts, and not so in others. Some of the registrations involve unrelated services, such as freight transportation management or distribution of computer software; others involve traditional employment staffing services for employers who directly hire and supervise the employees. Each application must be considered on its own record. In re Cordua Rests., Inc., 823 F.3d 594, 118 USPQ2d 1632, 1635 (Fed. Cir. 2016) (citing In re Shinnecock Smoke Shop, 571 F.3d 1171, 91 USPQ2d 1218, 1221 (Fed. Cir. 2009)). In this case, the third party website evidence above is more on point. It shows how 32 Examining Attorney’s brief, 6 TTABVUE 14. Serial No. 87340089 - 14 - Management Service Providers recruit and supervise a contingent workforce directly. Management Service Providers advertise their direct provision of services to client companies, and those client companies’ officers would perceive the term DIRECT that way, in the context of the trade, industry, or ordinary parlance. On this record, the preponderance of evidence indicates that MSP DIRECT is merely descriptive of Applicant’s services. II. Conclusion For the foregoing reasons, on consideration of all of the evidence of record, including parts we have not mentioned, we find that Applicant’s applied-for mark, MSP DIRECT, is merely descriptive under Section 2(e)(1). 15 U.S.C. § 1052(e)(1). Decision: The refusal to register Applicant’s applied-for mark MSP DIRECT is affirmed. Copy with citationCopy as parenthetical citation