Burnt Church Distillery, LLCv.Savannah Bourbon Company, LLCDownload PDFTrademark Trial and Appeal BoardJul 20, 202192074273 (T.T.A.B. Jul. 20, 2021) Copy Citation Webster July 20, 2021 Cancellation No. 92074273 Burnt Church Distillery, LLC v. Savannah Bourbon Company, LLC Before Zervas, Wolfson, and Larkin, Administrative Trademark Judges. By the Board: Burnt Church Distillery, LLC (“Petitioner”) seeks cancellation of the standard character mark SPIRIT OF THE LOWCOUNTRY for “alcoholic beverages, except beer” in International Class 33.1 As grounds for cancellation, Petitioner asserts nonuse of the mark and fraud. Both claims are based on allegations that Savannah Bourbon Company, LLC (“Respondent”) made only a single, “token” use of the goods under the subject mark prior to filing its statement of use on March 5, 2020, with no intention to use the mark in the ordinary course of trade.2 In its answer, Respondent denies the salient allegations of the petition. 4 TTABVUE. 1 Registration No. 6059120 issued on May 19, 2020 on the Principal Register with a claim of acquired distinctiveness under Trademark Act Section 2(f), 15 U.S.C. § 1052(f), in part, as to the term “LOWCOUNTRY.” 2 Petition for Cancellation ¶¶ 5A-5D, 15-18, 1 TTABVUE 5-6. UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 General Contact Number: 571-272-8500 General Email: TTABInfo@uspto.gov THIS ORDER IS NOT A PRECEDENT OF THE TTAB Cancellation No. 92074273 2 This proceeding comes up on Respondent’s motion, filed March 10, 2021, for summary judgment on both claims in the petition. The motion is fully briefed. As a preliminary matter, in its reply brief, Respondent argues that Petitioner’s brief in response to the motion should be stricken because it includes single-spaced text and would exceed the 25-page limit if it complied with the Board’s rules concerning the form of submissions to the Board. 10 TTABVUE 8. Trademark Rule 2.126(b), 37 C.F.R. § 2.126(b), requires all submissions to the Trademark Trial and Appeal Board to be printed “in at least 11-point type and double-spaced.” Although, as written, Petitioner’s response brief is within the 25-page limit for a brief in response to a motion under Trademark Rule 2.127(a), 37 C.F.R. § 2.127(a), without the improper formatting, the brief would clearly exceed the 25-page limit, as several pages of the brief are single-spaced in violation of Rule 2.126(b). See 9 TTABVUE 5- 10, 24-25. Because we find the error to be harmless, we exercise our discretion to consider Petitioner’s brief in response to the motion. Cf. Cornsorzio del Prosciutto di Parma v. Parma Sausage Prods. Inc., 23 USPQ2d 1894, 1896 (TTAB 1992) (Board considered brief within page limit despite excessive single-spaced footnotes containing discussion). However, because Petitioner failed to plead in the petition for cancellation that the mark is descriptive, generic, primarily geographically descriptive, and/or a geographical indication, and Petitioner has not filed a motion for leave to amend the petition to add such claims, we have not considered Petitioner’s arguments asserting the claims in Sections II, III, IV, and V of is brief. See Blansett Pharmacal Co. v. Cancellation No. 92074273 3 Carmrick Labs. Inc., 25 USPQ2d 1473, 1477 (TTAB 1992); Perma Ceram Enters. Inc. v. Preco Indus. Ltd., 23 USPQ2d 1134, 1135 n.2 (TTAB 1992) (no consideration given to three unpleaded grounds asserted by opposer in response to applicant’s motion for summary judgment).3 I. The Relevant Arguments and Evidence A. Respondent’s Arguments and Evidence Turning to Respondent’s motion, Respondent asserts that it has been using the subject mark in commerce since at least March 5, 2020, the deadline for filing its statement of use. 5 TTABVUE 5-6, 14. In support of its motion, Respondent has submitted the Declaration of Charles Barfield, managing member of Respondent, and the exhibits attached thereto. Mr. Barfield attests to the following, among other things: Respondent ordered 100 neck hangers from its marketing partner featuring the mark SPIRIT OF THE LOWCOUNTRY for use on bottles of its vodka and bourbon while waiting for final printing of labels containing the mark;4 The neck hangers were shipped to Respondent on February 19, 2020;5 3 In addition, because Petitioner has not provided any reason for its delay in asserting the additional claims, we decline to treat the response as a motion to amend the pleading under Fed. R. Civ. P. 15(a). See, e.g., Embarcadero Tech., Inc. v. Delphix Corp., 117 USPQ2d 1518, 1523 (TTAB 2016) (In deciding whether to grant leave to amend, the Board may consider, among other things, whether the party unduly delayed). 4 Barfield Decl. at ¶¶ 11, 12, 5 TTABVUE 20. 5 Id. at ¶ 13, 5 TTABVUE 20. Cancellation No. 92074273 4 Respondent placed the neck hangers on bottles of its alcoholic beverages that were available for purchase at retail liquor stores in Savannah, Georgia at least as early as March 5, 2020;6 A customer purchased a bottle of vodka bearing the SPIRIT OF THE LOWCOUNTRY neck hanger on March 5, 2020;7 and Later in March 2020, Respondent began shipping bottles of vodka with labels bearing the mark to liquor stores throughout Georgia and, in June 2020, Respondent began using new neck hangers displaying the mark on its bottles of vodka.8 Mr. Barfield also identifies the exhibits submitted with the declaration supporting the foregoing statements, including a copy of an invoice for the purchase of original neck hangers;9 a copy of a photograph showing the neck hangers bearing the mark on bottles of alchoholic beverages on display at a retail liquor store;10 Respondent’s email communications with the printing company regarding its order for labels and the printer’s proof for the labels;11 and copies of photographs of bottles of Respondent’s goods displaying the mark on a label and neck hanger.12 In addition, 6 Id. at ¶ 14, 5 TTABVUE 20. 7 Id. at ¶ 17, 5 TTABVUE 21 8 Id. at ¶¶ 20, 21, 5 TTABVUE 21. 9 Id. at ¶ 13, 5 TTABVUE 32-33 (Exhibit D). 10 Id. at ¶ 14, 5 TTABVUE 34-35 (Exhibit E). A truncated version of this photograph was submitted as the specimen of use with Respondent’s Statement of Use filed March 5, 2020. 11 Id. at ¶¶ 8-10, 5 TTABVUE 23-31 (Exhibits A-C). 12 Id. at ¶¶ 20, 21, 5 TTABVUE 40-43 (Exhibits H, I). Cancellation No. 92074273 5 Mr. Barfield testifies that Exhibit F is a photograph of a bottle displaying the mark being held by a purchaser on March 5, 2020 and Exhibit G is a copy of a photograph displaying a receipt for the sale of “a bottle of SBC’s vodka sold on March 5, 2020,” along with the driver’s license of the purchaser of the goods.13 Respondent argues that because the foregoing use of the mark constitutes bona fide use of the mark in commerce in the ordinary course of trade, Respondent is entitled to judgment as a matter of law on the nonuse in commerce claim. Id. at 10. With respect to Petitioner’s fraud claim, Respondent argues that not only did it not make a false statement regarding use of the mark in commerce, there is no evidence that Respondent intended to deceive the U.S. Patent and Trademark Office (USPTO). Id. at 11-14. B. Petitioner’s Arguments and Evidence In response, Petitioner argues that “Respondent made only de minimis token use of the Registered Mark prior to filing its Statement of Use on March 5, 2020 – presumably to improperly create a specimen of use to submit in connection therewith.” 9 TTABVUE 11. Petitioner alleges that Respondent’s evidence includes a “staged purchase of a product with a neck hanger,” id. at 9, and that “[n]othing in the record of the instant matter refutes this allegation of token use.” Id. at 11. Thus, Petitioner argues that “Respondent has been unable to substantiate bona fide use of the Registered Mark in commerce prior to the filing of its Statement of Use.” Id. at 11. 13 Id. at ¶ 19, 5 TTABVUE 38-39 (Exhibit G). Cancellation No. 92074273 6 Petitioner ’s evidence consists of side-by-side photos of Respondent’s Exhibit F (purchaser holding bottle of Respondent’s vodka displaying the mark on a hangtag) and the specimen of use in the application file, 9 TTABVUE 27 (Exhibit A), and photographs comparing unopened bottles of alcohol with a photo of Respondent’s Exhibit H (a bottle of Respondent’s vodka displaying the mark from “later in March 2020”). Id. at 28. In reply, Respondent argues that its sworn declaration testimony and supporting documentary evidence are sufficient to demonstrate that it made bona fide use of the mark in commerce and that Petitioner has not offered any evidence that raises a genuine dispute of material fact regarding Respondent’s use. 10 TTABVUE 3-6. II. Summary Judgment Standard Summary judgment is an appropriate method of disposing of cases in which there are no genuine disputes as to any material facts and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). In reviewing a motion for summary judgment, the evidentiary record must be viewed in the light most favorable to the non-moving party and all justifiable inferences to be drawn from the undisputed facts must be drawn in favor of the non-moving party. See Lloyd’s Food Prods. Inc. v. Eli’s Inc., 987 F.2d 766, 25 USPQ2d 2027, 2029-30 (Fed. Cir. 1993); Olde Tyme Foods Inc. v. Roundy’s Inc., 961 F.2d 200, 22 USPQ2d 1542, 1546 (Fed. Cir. 1992). We may not resolve disputes of material fact; we may only ascertain whether a genuine dispute regarding a material fact exists. See Lloyd’s Food Prods., 25 USPQ2d at 2029; Olde Tyme Foods, 22 USPQ2d at 1544. Cancellation No. 92074273 7 The party moving for summary judgment has the burden of demonstrating that a particular fact cannot be disputed by citing to particular parts of materials in the record, including affidavits or declarations, admissions or interrogatory answers, or showing that the cited materials do not establish the absence or presence of a genuine dispute, or that the adverse party cannot produce admissible evidence to support the fact. Fed. R. Civ. P. 56(c)(1). See generally Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). This burden may be met by showing “that there is an absence of evidence to support the nonmoving party’s case.” Id. at 323-24. If the moving party carries its burden, the nonmoving party may not rest on mere allegations, but must designate specific portions of the record or produce additional evidence showing the existence of a genuine dispute of material fact for trial. See Venture Out Props. LLC v. Wynn Resort Holdings LLC, 81 USPQ2d 1887, 1890 (TTAB 2007); see also Fed. R. Civ. P. 56(c)(1). III. Discussion Initially, we note that Petitioner, in the Petition for Cancellation, admits that Respondent made a single use of the subject mark prior to filing the statement of use.14 Kellogg Co. v. Pack’Em Enters. Inc., 14 USPQ2d 1545, 1548 n.6 (TTAB 1990) (pleadings have evidentiary value only to the extent they contain opponent’s admissions against interest), aff’d, 951 F.2d 330, 21 USPQ2d 1142 (Fed. Cir. 1991). Petitioner alleges, however, that because “Respondent made no other use of the 14 Petition for Cancellation ¶ 5A, 1 TTABVUE 5. Cancellation No. 92074273 8 Registered Mark … prior or subsequent to filing its Statement of Use,”15 Respondent only made “de minimis token use” of the mark.16 A. “Use in Commerce” – Relevant Law Under Trademark Act Section 45, 15 U.S.C. 1127, “use in commerce” is defined as “the bona fide use of a mark in the ordinary course of trade, and not made merely to reserve a right in a mark.” The foregoing language was added in 1988 as a result of the Trademark Law Revision Act (“TRLA”), Public Law 100-667, 102 Stat. 3935, to eliminate “token use,” which occurs “when an applicant uses a mark in conjunction with selling goods or offering services for the sole purpose of obtaining a registration and with no intention of legitimately using the mark in commerce until a later date.” Aycock Eng’g, Inc. v. Airflite, Inc., 560 F.3d 1350, 90 USPQ2d 1301, 1306 (Fed. Cir. 2009). The “bona fide use” language requires “commercial use of the type common to the particular industry in question.” Paramount Pictures Corp. v. White, 31 USPQ2d 1768, 1774 (TTAB 1994). Use of a mark in commerce may be established by the testimony of a witness with knowledge of the facts, where the testimony is clear and convincing, and has not been contradicted. Nat’l Blank Book Co. v. Leather Crafted Prods., Inc., 218 USPQ 827, 828 (TTAB 1983); see also Liqwacon Corp. v. Browning-Ferris Indus., Inc., 203 USPQ 305, 316 (TTAB 1979) (testimony may establish prior and continuous use if it is clear, convincing, consistent, and sufficiently circumstantial). Such oral testimony may be 15 Id. at ¶ 5D, 1 TTABVUE 6. 16 Id. at ¶ 5E, 1 TTABVUE 6. Cancellation No. 92074273 9 strengthened by corroborative documentary evidence. Automedx, Inc. v. Artivent Corp., 95 USPQ2d 1976, 1983 (TTAB 2010) (citing R.R. Baker Co. v. Lebow Bros., 150 F.2d 580, 66 USPQ 232, 236 (CCPA 1945)); see, e.g., Kohler Co. v. Baldwin Hardware Corp., 82 USPQ2d 1100, 1108 (TTAB 2007) (Oral testimony found sufficient because it was not characterized “by contradictions, inconsistencies and indefiniteness” and was “buttressed by the documentary evidence”). B. Whether Respondent’s Use Was in the Ordinary Course of Trade In this case, we find that Respondent has carried its burden of demonstrating that there is no genuine dispute that its use of the mark in commerce on or before the deadline for filing the statement of use, as extended, was bona fide use in the ordinary course of trade. Mr. Barfield’s testimony regarding Respondent’s initial display and sale of Respondent’s goods bearing the mark at a retail liquor store is clear, convincing and buttressed by the dated sales receipt and photographic evidence that is explained in the declaration. See Kohler Co., 82 USPQ2d at 1100. Respondent does not contend that such use of the mark on bottle neck hangers at retail liquor stores is uncommon to the alcoholic beverage industry. See Paramount Pictures, 31 USPQ2d at 1774. Mr. Barfield’s statements and the supporting evidence showing that Respondent ordered neck hangers bearing the mark and that Respondent sold at least one properly labeled bottle by March 5, 2020, and thereafter ordered labels and shipped bottles bearing the mark to “over 125 retail liquor stores,”17 at a minimum, establishes Respondent’s first use of the mark and its intent to continue to 17 Barfield Decl. at ¶¶ 20-22, 5 TTABVUE 21-22. Cancellation No. 92074273 10 legitimately use the mark in commerce. Thus, Respondent’s initial use was not solely for the purpose of obtaining a registration. Petitioner has failed to submit any evidence that rebuts Respondent’s declaration and evidence supporting its initial and continued use of the mark or that would raise a genuine dispute regarding Respondent’s intent to legitimately continue to use the mark after the first use. Because, as shown in the specimen of use in the application file, 9 TTABVUE 27 (Exhibit A), Respondent’s neck hangers may be used on different products, the fact that Respondent’s specimen is different than the evidence submitted with its motion does not permit, much less require, us to draw a negative inference that either the specimen or the transaction reflected in the evidence submitted with the motion was “staged.”18 In addition, the photograph of the bottle bearing a label with the mark in Respondent’s Exhibit H has probative value to the extent it supports Respondent’s statements that Respondent ordered and received labels bearing the mark for use on bottles of vodka to be sold or transported in commerce. Petitioner has not provided any reason why the label must be shown on an unopened bottle to have probative value as an example of how the label was used on the goods after the first sale. 18 The specimen of use in the application file shows the mark as used on or in connection with the goods in commerce such as on a label or tag. Trademark Rule 2.56(b), 37 C.F.R. § 2.56(b). There is no requirement that the specimen show use on all of the goods in the identification. See TRADEMARK MANUAL OF EXAMINING PROCEDURE (TMEP) §§ 904.01(a) and 904.03 (Oct. 2018). We note further that the alleged insufficiency of the specimen may not be used as a basis for cancellation. See Century 21 Real Estate Corp. v. Century Life of Am., 10 USPQ2d 2034, 2035 (TTAB 1989); Marshall Field & Co. v. Mrs. Fields Cookies, 11 USPQ2d 1355, 1358 (TTAB 1989). Cancellation No. 92074273 11 Petitioner’s response attacking Respondent’s evidence is comprised primarily of attorney argument, which is “‘no substitute for evidence,’” Cai v. Diamond Hong, Inc., 901 F.3d 1367, 127 USPQ2d 1797, 1371 (Fed. Cir. 2018) (quoting Enzo Biochem, Inc. v. Gen-Probe Inc., 424 F.3d 1276, 76 USPQ2d 1616, 1622 (Fed. Cir. 2005)), asking us to infer Respondent’s spoliation of evidence. Performance Open Wheel Racing, Inc. v. U. S. Auto Club Inc., 2019 USPQ2d 208901, at *8 n.62 (TTAB 2019) (attorney argument unsupported by any testimony or evidence does not have any probative value). In addition, Petitioner erroneously relies on its allegations as “fully set forth in the BCD petition.” 9 TTABVUE 7, 8, 9, 10. As the non-moving party, Petitioner “may not rest on the mere allegations of its pleadings and assertions of counsel, but must designate specific portions of the record or produce additional evidence showing the existence of a genuine issue of material fact for trial.” Venture Out Props., 81 USPQ2d at 1890; see also Fed. R. Civ. P. 56(e).19 Despite the completion of discovery in this proceeding, Petitioner has failed to come forth with evidence contradicting Respondent’s declaration and documentary evidence, such as discovery depositions or responses to discovery requests seeking specific information regarding Respondent’s use of the mark in commerce.20 See Fed. R. Civ. P. 56(c)(1); see also See Celotex Corp., 477 U.S. at 322-23 (summary judgment should be entered against a party who fails to make a showing after adequate time for discovery). In view of the foregoing we find that there is no genuine dispute of 19 We note that under Trademark Rule 2.122(c), 37 C.F.R. § 2.122(c), the exhibits attached to the Petition for Cancellation are not evidence on behalf of Petitioner. 20 Discovery closed on January 25, 2021. 2 TTABVUE 3. Cancellation No. 92074273 12 material fact that Respondent’s use of its mark prior to the deadline for filing the statement of use was use in the ordinary course of trade and not made merely to reserve a right in the mark. See Christian Faith Fellowship Church v. Adidas AG, 541 F.3d 986, 120 USPQ2d 1640, 1646 (Fed. Cir. 2016) (finding the sale of two hats not de minimis and sufficient to prove use in commerce); cf. Larry Harmon Pictures Corp. v. Williams Rest. Corp., 929 F.2d 662, 18 USPQ2d 1292, 12965 (Fed. Cir. 1991) (rejecting a minimum threshold level of activity for use in commerce for single location restaurant). C. Whether Respondent Committed Fraud in the Statement of Use With respect to Petitioner’s fraud claim, because the claim is also based on allegations that Respondent’s initial use of the mark was not bona fide use in the ordinary course of trade, and we have found that there is no genuine dispute of material fact regarding the issue of Respondent’s use of the mark in commerce, no genuine dispute of material fact remains for trial regarding an essential element of the fraud claim and Petitioner cannot prevail on the claim as a matter of law. Specifically, there is no genuine dispute that Respondent did not make a false statement in the statement of use regarding its use of the mark in commerce. See In re Bose Corp., 580 F.3d 1240, 91 USPQ2d 1938, 1941 (Fed. Cir. 2009). Further, even if we found that Respondent’s initial use of the mark does not meet the standard of use in the ordinary course of trade, Respondent’s declaration and supporting evidence establishes that Respondent honestly believed that its use of the mark prior to the deadline for filing the statement of use was bona fide use in Cancellation No. 92074273 13 commerce. Petitioner has failed to introduce any evidence that would raise a genuine dispute of material fact regarding Respondent’s deceptive intent to deceive the USPTO. Bose, 91 USPQ2d at 1942 (“There is no fraud if a false misrepresentation is occasioned by an honest misunderstanding or inadvertence without a willful intent to deceive.”). IV. Decision In view of the foregoing, and viewing all of the evidence in the light most favorable to Petitioner as the non-moving party, we find that no genuine disputes of material fact remain for trial with respect to Petitioner’s nonuse and fraud claims, which are the only pleaded grounds for cancellation. Accordingly, Respondent’s motion for summary judgement is granted and the Petition for Cancellation is denied. Copy with citationCopy as parenthetical citation