Booze Pops, LLCv.Indigo Ice CorporationDownload PDFTrademark Trial and Appeal BoardDec 30, 202092068413 (T.T.A.B. Dec. 30, 2020) Copy Citation MZL Mailed: December 30, 2020 Cancellation No. 92068413 Booze Pops, LLC v. Indigo Ice Corporation Before Kuczma, Larkin and Lebow, Administrative Trademark Judges. By the Board: This case now comes up on Petitioner’s (Booze Pop, LLC) motion for judgment on the pleadings or for summary judgment or, in the alternative, to strike Respondent’s (Indigo Ice Corporation) response to the Board’s order of April 29, 2020. The motion is fully briefed. I. Relevant Background Respondent owns a registration for the mark shown below for “Alcoholic cocktails in the form of frozen pops” in International Class 33 (“the Registration”):1 1 Registration No. 5201202, issued May 9, 2017, based on Respondent’s allegation of use in commerce under Section 1(a) of the Trademark Act, 15 U.S.C. § 1051(a), alleging a date of first use and first use in commerce of October 15, 2016. 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 THIS ORDER IS NOT A PRECEDENT OF THE TTAB Cancellation No. 92068413 -2- Petitioner filed a Petition to Cancel the Registration on grounds of nonuse of the mark prior to the expiration of time for filing the statement of use in support of registration under Section 1(a) of the Trademark Act, 15 U.S.C. § 1051(a); unlawful use of the mark based on a per se violation of the Federal Alcohol Administrative Act (“FAA”) and Alcohol and Tobacco Tax and Trade Bureau’s (“TTB”) regulations regulating the distribution and sale of Respondent’s goods; and deceptive misdescriptiveness under Section 2(e)(1) of the Trademark Act, 15 U.S.C. § 1052(e).2 Respondent denied the salient allegations in its answer to the petition, and asserted five purported “affirmative defenses” that we construe to be mere amplifications of Respondent’s denials of Petitioner’s claims.3 Following discovery, Petitioner moved for leave to add a claim of abandonment pursuant to Trademark Act Section 45, 15 U.S.C. § 1127, as a fourth ground for cancellation,4 which the Board granted as conceded.5 The Board allowed Respondent thirty days to file an answer to the amended 2 1 TTABVUE (Petition for Cancellation). 3 11 TTABVUE (Answer). 4 14 TTABVUE (Motion for Leave to Amend Petition to Cancel). 5 16 TTABVUE (Board order of April 2, 2019). In the same order, the Board also granted Respondent’s separately filed Motion to Amend to amend its Answer to add the affirmative defense of “unclean hands.” Cancellation No. 92068413 -3- petition.6 However, Respondent did not file an answer to the amended petition within that time frame and the case inadvertently proceeded to trial without an answer to the amended petition. Two weeks after the close of Petitioner’s testimony period and before the opening of its own testimony period, Respondent filed a motion to amend the identification of goods in the Registration.7 Specifically, Respondent sought to amend the identification from “Alcoholic cocktails in the form of frozen pops” to “Frozen pops with alcohol.”8 Because Petitioner did not consent to the proposed amendment, and in fact opposed the motion,9 the Board deferred consideration of the motion until final decision or summary judgment to allow the parties “to more appropriately develop the record and argue the effect of the amendment.”10 Respondent filed no testimony and presented no evidence during its testimony period. Approximately three months after the close of Respondent’s testimony period and two weeks before Petitioner’s trial brief was due, it came to the Board’s attention that Respondent had not filed an answer to the 6 Id. 7 23 TTABVUE (Respondent’s Motion to Amend Registration). On the same date, Respondent filed a Request to Amend the Registration with the Post-Registration division of the USPTO. September 27, 2019 Section 7 Request, TSDR 1-7. 8 Id. 9 24 TTABVUE (Petitioner’s Response to Respondent’s Motion to Amend Registration). 10 25 TTABVUE (Board order of November 27, 2019). See Trademark Rule 2.133(a), 37 C.F.R. § 2.133(a) (registration subject to a cancellation may not be amended except with the consent of the party or parties and approval of the Board, or upon motion granted by the Board). Cancellation No. 92068413 -4- amended petition within the allotted time. Accordingly, the Board issued an order requiring Respondent to file an answer to the amended petition within 30 days to avoid an order to show cause as to why default judgment should not be entered against Respondent.11 In the meantime, the proceeding was suspended.12 Respondent filed a response to the Board’s order on the same date, asking the Board to construe the preamble in Respondent’s first amended answer as a “continued general denial of the salient allegations set forth in all of Petitioner’s pleadings.”13 The Board construed Respondent’s answer as requested, albeit not until issuing its order approximately two and a half months later, wherein it also reset the parties’ final briefing dates.14 The proceeding remained suspended in the interim. Plaintiff’s motion for judgment on the pleadings or summary judgment, or in the alternative to strike Respondent’s response to the Board’s order of April 29, 2020, was filed approximately one week before the deadline to file its trial brief. Because Petitioner relies on statements made outside of the pleadings to support its motion, the Board, in its order of August 13, 2020, construed Petitioner’s motion as one for summary judgment. The motion is fully briefed.15 11 26 TTABVUE (Board order of April 29, 2020). 12 Id. 13 27 TTABVUE (Respondent’s Response to Board order of April 29, 2020). 14 28 TTABVUE (Board order of July 16, 2020). 15 Petitioner asserts in its motion that “[Respondent] pled that it abandoned its Mark, and has otherwise admitted abandonment.” 29 TTABVUE 5. Elsewhere in the motion, Petitioner states that “[Respondent] unequivocally admits in its own pleading that it has abandoned its Mark and Registration because it has discontinued its use in Cancellation No. 92068413 -5- II. Preliminary Issue – Respondent’s Motion to Amend Registration As noted, Respondent’s motion to amend the identification of goods in the Registration was deferred until final decision or summary judgment. Because the proposed amendment bears on our decision on the pending motion, we resolve the motion to amend now. Section 18 of the Trademark Act provides the Board with broad authority to limit, or otherwise modify, the goods or services in a registration or an application. 15 U.S.C. § 1068. However, a registration that is the subject of a Board inter partes proceeding may not be amended except with the consent of the other party or parties and the approval of the Board, or upon motion granted by the Board. Trademark Act Section 7(e), 15 U.S.C. § 1057(e); Trademark Rule 2.133(a), 37 C.F.R. § 2.133(a). As noted above, Respondent seeks to amend the identification of goods in the Registration from “Alcoholic cocktails in the form of frozen pops” to “frozen pops with alcohol.”16 Respondent contends that amendment of the registration is proper “under TMEP17 [§] 1402.07(c) because it is evolving technology where the previous description is no longer accurate and because of opinions that Registrant has received from the TTB regarding the category or lack thereof that the goods fit into.”18 According to Respondent, it “meets the criteria used in the [USPTO’s] evolving technology pilot program” because Respondent owns commerce (and, in fact, never used it in actual commerce).” Id. at 7. However, no such admissions are found in Respondent’s Amended Answer. 16 23 TTABVUE (Respondent’s Motion to Amend Registration). 17 TRADEMARK MANUAL OF EXAMINING PROCEDURE. 18 Id. Cancellation No. 92068413 -6- a registered trademark; provides goods in their evolved form with the same underlying content or subject matter as the original goods; no longer provides the original form of goods; and no longer provides any goods identified in the Registration that contain the same underlying content.19 Opposing the motion, Petitioner asserts that the proposed amendment “seems to be little more than a rearrangement of words.”20 Petitioner further notes that “[t]his amendment could have been filed by the Respondent at any time in the past year or more, but Respondent waited until the day that Respondent’s Pre-Trial Disclosures were due, and subsequent to Petitioner’s timely filing of its testimony and evidence.”21 In its request for reconsideration of the decision deferring consideration of the motion for “judicial efficiency,” Respondent stated that [Respondent] … cannot sufficiently argue its denials of Petitioner’s claims at trial without the evolved amended goods description. … As stated in the motion to amend, ‘[Respondent] no longer provide[s] the original form of [the] goods/services.’ On its face, Respondent has already admitted to recent abandonment. … Respondent further stated in the motion to amend, ‘[Respondent] feels they [sic] must abandon the registration since with the current description of goods the goods description no longer accurately describes the goods without this amendment.’ … For judicial efficiency, the subject registration should be evolved before trial briefs and before the Board has to wade through documents that have become irrelevant. Registrant cannot get TTB approval of what they used to make nor does registrant’s 19 Id. 20 24 TTABVUE 3 (Petitioner’s Response to Respondent’s Motion to Amend Registration). 21 Id. Cancellation No. 92068413 -7- former goods fit any per se categories. Registrant has already admitted to abandonment without the evolved goods description.22 There are various reasons why Respondent’s motion to amend must be denied, not the least of which is Respondent’s failure to file its motion early enough to provide Petitioner with sufficient notice of its proposed change before trial. See, e.g., Personnel Data Sys., Inc. v. Parameter Driven Software, Inc., 20 USPQ2d 1863, 1865 (TTAB 1991) (respondent’s Section 18 motion to restrict identification of goods in its registration denied because petitioner had not been put on notice before it presented its case that respondent intended to amend its identification of goods). Petitioner, therefore, did not have an opportunity to take discovery related to the purportedly “evolved” goods and could not prepare its case in view thereof. Moreover, Respondent provides no factual details or explanation regarding how the USPTO’s technology evolution pilot program, memorialized in TMEP § 1402.07(c), is applicable to its situation. As the USPTO explains, the technology evolution pilot program allows trademark owners the opportunity, under limited circumstances, to amend their registrations if they “provide the same fundamental goods/services through an updated means, method, or format.”23 Examples of amendments permitted under this provision include situations such as amending “printed children’s books” to downloadable 22 27 TTABVUE 2-3 (Respondent’s Response to Board order of April 29, 2020). 23 See “Amending your registration’s goods/services when technology evolves”: https://www.uspto.gov/trademarks-maintaining-trademark-registration/amending- your-registration-s-goodsservices-when (accessed December 29, 2020). Cancellation No. 92068413 -8- electronic children’s books”; “phonograph records featuring music” to “musical sound recordings”; “floppy discs for computers for word processing” to “providing on-line downloadable software for word process”; and “telephone banking services” to “on-line banking services.”24 However, Respondent provides no details regarding the purported change, and its arguments are in conflict with one another. On the one hand, Respondent asserts that the current identification of goods no longer accurately describes the goods.25 On the other hand, Respondent asserts that the purported change does not result in different goods: “[T]hey are products that are evolving to meet TTB regulations.”26 How the goods’ technology purportedly evolved—to change the manner or medium by which the goods are offered for sale or provided to customers—we are not told. Respondent’s assertions are meaningless without explanation. Dancing around the issue, Respondent asserts that the present description is no longer accurate “because of opinions [it] has received from the TTB”;27 yet Respondent does not provide us with copies of those opinions or even descriptions of their substance or the particular TTB regulations to which they purportedly pertain. We therefore have no basis upon which to find that Respondent’s goods involve any evolving technology, or that the goods have actually evolved in any manner, such that an amendment to the description of 24 Id. 25 23 TTABVUE 2-3 (Respondent’s Motion to Amend Registration). 26 31 TTABVUE 3-5 (Respondent’s Opposition to Motion for Summary Judgment). 27 23 TTABVUE 2 (Respondent’s Motion to Amend Registration). Cancellation No. 92068413 -9- goods would be warranted. While Respondent, for obvious reasons, may wish to reclassify its goods as a food (that happens to contain alcohol) rather than as an alcohol beverage (that happens to be provided in food form), that has no bearing on the actual nature of the goods, or Respondent’s eligibility to secure the requested amendment. Respondent’s motion to amend the identification of goods in the Registration is denied. III. Timeliness of Petitioner’s Motion for Summary Judgment Respondent challenges the timeliness of Petitioner’s motion for summary judgment. Specifically, Respondent asserts that “[t]he Board’s order on 7/16/2020 clearly identifies that we are already in the briefing stage of the proceeding and the deadline for pretrial disclosures is long past. The motion must be denied.”28 Petitioner replies that “[it] could not have filed the instant Motion before pretrial disclosures, because [Respondent] had not yet pleaded in response to the Amended Complaint for Cancellation and had not yet denied abandonment. Prior to July 16, 2020, the question of abandonment was not properly pleaded to permit a summary judgment motion. Petitioner acted with proper diligence in the filing of the instant Motion as soon as the issue became ripe for adjudication.”29 Petitioner also notes that the Board, in its order of 28 31 TTABVUE 2 (Respondent’s Objections to Motion for Summary Judgment, hereafter “Respondent’s Objections to Motion”). 29 32 TTABVUE 4-5 (Petitioner’s Reply in support of Motion for Judgment). Cancellation No. 92068413 -10- August 13, 2020, stated that it would exercise its discretion to consider the motion.30 Respondent correctly observes that the motion is untimely. Trademark Rule 2.127(e)(1) provides that “[a] motion for summary judgment, if filed, should be filed prior to the commencement of the first testimony period, as originally set or as reset, and the Board, in its discretion, may deny as untimely any motion for summary judgment filed thereafter.” 37 C.F.R. § 2.127(e)(1) (emphasis added). However, Petitioner is equally correct in noting that the Board stated in its August 13, 2020 order that it would exercise its discretion to consider the motion.31 Due to the unusual procedural circumstances of this case, where Respondent’s failure to file an answer to the amended petition was not noted by the Board until after Petitioner had presented its case-in-chief, Petitioner correctly argues that it could not have filed a motion for judgment at any time prior to trial. While the better practice would have been for Petitioner to have filed a timely motion for an order to show cause as to why judgment should not have been entered against Respondent for failure to file its amended answer, the fact remains that Respondent’s answer was delinquent and in violation of the Board’s order, which was issued more than a year prior to Respondent’s motion to amend. Based on the foregoing, and the fact that Respondent presented no 30 Id. 31 30 TTABVUE. Cancellation No. 92068413 -11- testimony or evidence during its testimony period, we find it to be in the interest of judicial economy to exercise our discretion not to deny the subject motion for summary judgment as untimely and to consider it on its merits. IV. Motion for Summary Judgment Although Petitioner briefly discusses its claims of nonuse and unlawful use in its motion, we find Petitioner’s evidence insufficient to establish that there is no genuine dispute of material fact related to those claims.32 The claim of deceptive descriptiveness is not addressed at all. Therefore, we focus only on the ground of abandonment. A. Entitlement to a Statutory Cause of Action We first consider Petitioner’s entitlement to bring a statutory cause of action. A plaintiff’s entitlement to a statutory cause of action, formerly referred to as “standing,” is a threshold issue in every inter partes case before the Board. See Corcamore, LLC v. SFM, LLC, 978 F.3d 1298, 2020 USPQ2d 11277 (Fed. Cir. Oct. 27, 2020). See also Australian Therapeutic Supplies Pty. Ltd. v. Naked TM, LLC, 965 F.3d 1370, 2020 USPQ2d 10837 (Fed. Cir. 2020); Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014); Spanishtown Enters., Inc. v. Transcend Resources, 32 For example, Petitioner’s argument and evidence related to nonuse are based on Respondent’s admissions during discovery that Respondent had not “sold” its goods in commerce or “transported” them for sale. However, a for-profit sale is not required under the Trademark Act. See, e.g., Capital Speakers Inc. v. Capital Speakers Club of Washington D.C. Inc., 41 USPQ2d 1030, 1034 n.3 (TTAB 1996); McDonald’s Corp. v. McKinley, 13 USPQ2d 1895, 1898 n.6 (TTAB 1989) (finding that goods need not be sold “in order to come within the ambit of the statute”). Cancellation No. 92068413 -12- Inc., 2020 USPQ2d 11388 (TTAB 2020). To establish entitlement to a statutory cause of action, Petitioner must demonstrate (i) an interest falling within the zone of interests protected by the statute (here, 15 U.S.C. § 1127), and (ii) a reasonable belief in damage proximately caused by continued registration of the mark. See Spanishtown, 2020 USPQ2d 11388 at *1 (citing Corcamore, 2020 USPQ2d 11277, at *4). See also 15 U.S.C. § 1063. Respondent challenges Petitioner’s standing, asserting that “Petitioner did not plead standing in its motion for summary judgment brief. Petitioner did not prove standing in its motion for summary judgment. Petitioner submitted no status copies of registrations with its motion, no refusal, no testimony. Registrant did not admit to Petitioner’s standing in its answer.”33 In reply, Petitioner argues that “the undisputed evidence shows that standing very clearly exists in this case.”34 In particular, Petitioner points to the testimony declaration of Woodrow Norris,35 the “controlling member” of Petitioner, which states inter alia that:36 4. [Respondent] applied for registration of the mark BOOZE POPS with the [USPTO] for services identified and [sic] mobile street vendor services featuring food and drink, as more fully shown in … Application Serial No. 87/681813 and Exhibit B. 5. The mark which is the subject of … Application Serial No. 33 31 TTABVUE 2 (Respondent’s Opposition to Motion for Summary Judgment). 34 32 TTABVUE 5 (Petitioner’s Reply Brief in support of Motion for Summary Judgment). 35 Id. Due to the unusual procedural posture of this proceeding, Petitioner has already presented testimony and other evidence during its testimony period, which is of record in this proceeding. As noted previously, Respondent did not present any testimony or evidence during its testimony period. 36 31 TTABVUE 2-3. Cancellation No. 92068413 -13- 87/681813 was refused registration due to the existence of … Registration No. 5,201,202 for the mark BOOZY POPS (plus design) as allegedly used to identify alcoholic cocktails in the form of frozen pops. 6. Prosecution of … Serial No. 87/681813 is suspended pending the disposition of this Cancellation. Exhibit C. Exhibit B of the declaration provides a copy of Petitioner’s application, and Exhibit C provides a copy of the Trademark Examining Attorney’s office action suspending action in Petitioner’s application pending disposition of this proceeding. Mr. Norris’ testimony that Petitioner owns a pending application that was refused based on Petitioner’s Registration, along with USPTO records in support, establishes that Petitioner has an interest falling within the zone of interests protected by the Lanham Act, and a reasonable basis for its belief of damage proximately caused by the continued registration of Respondent’s mark. Spanishtown, 2020 USPQ2d 11388 at *1 (citing Corcamore, 2020 USPQ2d 11277, at *4). This is sufficient to demonstrate that Petitioner is entitled to pursue its abandonment cause of action. B. Standard for Summary Judgment Summary judgment is appropriate only where there are no genuine disputes as to any material facts, thus allowing the case to be resolved as a matter of law. Fed. R. Civ. P. 56(a). The party seeking summary judgment bears the initial burden of demonstrating the absence of any genuine dispute of material fact, and the party is entitled to a judgment under applicable law. Cancellation No. 92068413 -14- See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986); Sweats Fashions, Inc. v. Pannill Knitting, 833 F.2d 1560, 4 USPQ2d 1793, 1796 (Fed. Cir. 1987). 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 Am. Music Show Inc., 970 F.2d 847, 23 USPQ2d 1471, 1472 (Fed. Cir. 1992); Olde Tyme Foods, Inc. v. Roundy’s, Inc., 961 F.2d 200, 22 USPQ2d 1542, 1544 (Fed. Cir. 1992). Evidence on summary judgment must be viewed in a light most favorable to the non-movant, and all justifiable inferences are to be drawn in the non- movant’s favor. Lloyd’s Food Prods., Inc. v. Eli’s, Inc., 987 F.2d 766, 25 USPQ2d 2027, 2029 (Fed. Cir. 1993); Opryland USA, 23 USPQ2d at 1472. The Board may not resolve genuine disputes as to material facts; it may only ascertain whether genuine disputes as to material facts exist. See Lloyd’s Food Prods., 25 USPQ2d at 2029; Olde Tyme Foods, 22 USPQ2d at 1544. C. The Law of Abandonment and the Parties’ Arguments Trademark Act § 45, 15 U.S.C. § 1127 defines “abandonment” of a mark as follows: “When its use has been discontinued with intent not to resume such use.” To prevail on its claim of abandonment, Petitioner must demonstrate by a preponderance of the evidence that there is no genuine dispute that Respondent has ceased use of the mark without intent to resume use. See Crash Dummy Movie LLC v. Mattel, Inc., 601 F.3d 1387, 94 USPQ2d 1315, Cancellation No. 92068413 -15- 1316 (Fed. Cir. 2010); Lewis Silkin LLP v. Firebrand LLC, 129 USPQ2d 1015, 1020 (TTAB 2018). Petitioner points to Respondent’s statements and admissions made in the motion to amend the Registration to support its argument that there is no genuine dispute of material fact that Respondent has abandoned the mark in the Registration with respect to the goods identified therein. Petitioner highlights the following statements by Respondent, discussed earlier, but which bear repeating here: [Respondent] no longer provides the original form of goods/services.37 [Respondent] no longer provides any goods/services identified in [the] registration that contain the same underlying content.38 If the amendment is improper procedurally or otherwise cannot be made and cannot be amended to meet requirements, [Respondent] feels they [sic] must abandon the registration since with the current description (sic) the goods description no longer accurately describes the goods without this amendment.39 On its face, Respondent has already admitted to recent abandonment.40 Respondent has already admitted to abandonment without the evolved goods description.41 Respondent does not dispute any of aforementioned statements. Indeed, Respondent’s sole argument in defense of the charge of abandonment is that 37 23 TTABVUE 2 (Respondent’s Motion to Amend Registration) (Respondent’s brackets omitted). 38 Id. 39 Id. at 2-3. 40 27 TTABVUE 3 (Respondent’s Response to Board order of April 29, 2020). 41 Id. Cancellation No. 92068413 -16- Petitioner has not made a claim that the changes that Respondent is requesting in its amendment have changed the product into a distinctly different product intended for a different ultimate purchaser. This is not a case of the chicken or the egg.42 It is Respondent’s position that changes from “Alcoholic cocktails in the form of frozen pops” to “frozen pop with alcohol” are not different products, they are products that are evolving to meet TTB regulations. A genuine dispute of material fact regarding the metes and bounds of frozen alcohol product evolution precludes summary judgment.43 As discussed in our consideration of Respondent’s motion to amend the Registration, Respondent has provided no evidence or explanation regarding its purportedly “evolved” goods. As such, we have no basis to find that the goods have evolved. Instead, we accept at face value Respondent’s statement that “Respondent has already admitted to the recent abandonment without the evolved goods description” and its other several admissions of abandonment, including its statement that it must surrender its registration if the motion to amend is not granted. Respondent has done nothing to rebut the prima facie case of abandonment arising from its own admissions. Accordingly, we find no genuine dispute of material fact regarding Respondent’s abandonment of the mark in the Registration. V. Decision In view of the foregoing, Petitioner’s motion for summary judgment on the ground of abandonment is granted, and the petition for cancellation is 42 Respondent’s “chicken or the egg” reference refers to Food Producers, Inc. V. Swift & Co., 194 USPQ 299 (TTAB 1977), which held that an egg was a distinctly different product than a chicken, an argument that is irrelevant in this case. 43 31 TTABVUE 3-4 (Respondent’s Response to Motion for Summary Judgment). Cancellation No. 92068413 -17- granted. Registration No. 5201202 for the mark BOOZYPOP and design will be cancelled in due course.44 44 Inasmuch as Petitioner’s motion for summary judgment is granted, the Board will not address Petitioner’s alternative motion to strike Respondent’s response to the Board’s order of April 29, 2020. Copy with citationCopy as parenthetical citation