Dark Storm Industries, LLCv.Hurricane Butterfly Manufacturing, LLCDownload PDFTrademark Trial and Appeal BoardMay 1, 202091239079 (T.T.A.B. May. 1, 2020) Copy Citation Mailed: May 1, 2020 UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board ———— Dark Storm Industries, LLC v. Hurricane Butterfly Manufacturing, LLC ___ Opposition No. 91239079 ___ James J. Lillie, Lillie Law, LLC for Dark Storm Industries LLC. Eric G. Maurer of Thomas│Horstemeyer, LLP for Hurricane Butterfly Manufacturing, LLC. ______ Before Taylor, Adlin and Goodman, Administrative Trademark Judges. Opinion by Adlin, Administrative Trademark Judge: Applicant Hurricane Butterfly Manufacturing, LLC seeks registration of the mark TYPHOON, in standard characters, for “shotguns and parts thereof.”1 In its notice of opposition, Opposer Dark Storm Industries, LLC alleges prior use of, and ownership of an application to register, the identical mark (TYPHOON in standard characters) 1 Application Serial No. 87283973, filed December 29, 2016 under Section 1(a) of the Trademark Act, alleging first use on February 1, 2013 and first use in commerce on October 1, 2013. This Opinion is not a Precedent of the TTAB Opposition No. 91239079 2 for “firearms; rifles.”2 As grounds for opposition, Opposer alleges that use of Applicant’s mark is likely to cause confusion with, and dilute, Opposer’s mark, and that the application is void because Applicant did not use its mark prior to filing its use-based application.3 In its answer, Applicant denies the salient allegations in the notice of opposition, and asserts “affirmative defenses” which merely amplify its denials.4 I. The Record The record consists of the pleadings and, by operation of Trademark Rule 2.122(b), the file of Applicant’s involved application. In addition, Opposer introduced: Testimony Deposition of Brett Snider, one of its employees who works in outside sales and marketing, and the exhibits thereto. 9 TTABVUE.5 Testimony Deposition of Edward J. Newman, one of its founders/owners, and the exhibits thereto. 10 TTABVUE. 2 Application Serial No. 87593126, filed September 1, 2017 under Section 1(a) of the Trademark Act, based on first use dates of November 21, 2014. 3 Opposer also alleges fraud based on mere “information and belief.” This fails to sufficiently plead the claim, because Opposer failed to allege facts upon which its belief is based. Exergen Corp. v. Wal-Mart Stores Inc., 575 F.3d 1312, 91 USPQ2d 1656, 1670 (Fed. Cir. 2009); Asian and Western Classics B.V. v. Selkow, 92 USPQ2d 1478, 1479 (TTAB 2009). Moreover, Opposer does not allege that Applicant had a subjective intent to deceive the Office, alleging instead only that “[a]bsent evidence to the contrary, it would be reasonable if not compelling to conclude the requisite intent.” In any event, Opposer did not pursue the claim, which is therefore waived. See Swatch AG (Swatch SA) (Swatch Ltd.) v. M.Z. Berger & Co., 108 USPQ2d 1463, 1465 n.3 (TTAB 2013), aff’d, 787 F.3d 1368, 114 USPQ2d 1892 (Fed. Cir. 2015). 4 Applicant’s assertion that the notice of opposition fails to state a claim for relief is not an affirmative defense, but rather an allegation that Opposer’s pleading is defective. In any event, Applicant did not file a motion to dismiss on that basis. 5 Citations to the record reference TTABVUE, the Board’s online docketing system. The number preceding “TTABVUE” corresponds to the docket entry number(s), and any number(s) following “TTABVUE” refer to the page number(s) of the docket entry where the cited materials appear. Opposition No. 91239079 3 Testimony Deposition of Peter Morrisey, its other founder/owner, and the exhibits thereto. 11 TTABVUE. Applicant introduced: Testimony Deposition of Jason M. Wong, its principal and general counsel, and the exhibits thereto. 22 TTABVUE. II. Relevant Facts Each party claims that it was the first to use TYPHOON for firearms in the United States. Opposer relies on evidence of traditional sales, while Applicant argues that the activities it undertook before its first sale of a TYPHOON shotgun establish prior rights in the mark. A. Opposer Mr. Morrisey and Mr. Newman got their start in the firearms industry in 2012, after working together for a security firm which “provided electronic and physical security for large commercial government industrial clients.” 10 TTABVUE 6; 11 TTABVUE 18-24. At the time, they both already had an interest in guns, and they found that the demand for guns was increasing following Hurricane Sandy hitting the New York area, where they both lived. Later in 2012, demand for firearms increased even further due to the fear of increased gun regulation which took hold in the wake of the Sandy Hook mass shooting. 11 TTABVUE at 24-25; 10 TTABVUE 10- 15. Initially, Morrisey and Newman focused on selling gun parts rather than manufacturing firearms. 11 TTABVUE 25-27; 10 TTABVUE 15-16, 20. In early 2013, Morrisey and Newman formed Opposer and acquired space for their store later that year. 11 TTABVUE 28-29; 10 TTABVUE 18-19. By early 2014, Opposition No. 91239079 4 Opposer moved into the space and was assembling and selling guns from parts manufactured by others. 11 TTABVUE 29-30, 34; 10 TTABVUE 23-25. Later that year, Opposer began “manufacturing” guns itself. 10 TTABVUE 27-28, 32. Opposer chose the mark TYPHOON for one of its “manufactured” guns as a play on its corporate name Dark Storm Industries: At that point now we are in probably spring 2013. The idea came up to start to build on the storm part of the name and the first two model names we came up with were lighting and thunder building off of that Dark Storm. At that point we then started looking for what other names fit into this and using the weather terminology as the part of the brand. The next two that came up was hurricane and typhoon for the models of rifles we were planning at that point. 10 TTABVUE 22. Opposer’s TYPHOON model “went into production in late summer, early fall 2014. I believe the press release, grand announcement so to speak was late fall 2014.” Id. at 33. Opposer did not introduce evidence showing a specific sale of a TYPHOON- branded gun on any particular date, such as an invoice or purchase order. Nonetheless, Opposer submitted general testimony sufficient to satisfy us that at some point between the “press release, grand announcement” of its TYPHOON model guns, and the filing of Applicant’s involved application in December 2016, Opposer sold TYPHOON-branded guns in the United States. 10 TTABVUE 43-44 (agreeing that Opposer “has used its trademarks including Typhoon … well before December 29, 2016 …”); see also id. at 25, 33, 39-41. Applicant does not argue to the contrary. See 29 TTABVUE 6. Opposition No. 91239079 5 B. Applicant Applicant imports and exports firearms. Before “taking over” Applicant, Mr. Wong “practiced law for the firearms industry doing regulatory work.” 22 TTABVUE 9-12. In connection with that work, he became familiar with Qiqihar Hawk, a Chinese firearms manufacturer, and one of its shotguns which Mr. Wong believed would sell well in the United States. Id. at 13. Beginning in February 2013, through Mr. Wong’s connections, Applicant started negotiating with Qiqihar Hawk, and eventually Qiqihar Hawk manufactured a modified version of the shotgun Mr. Wong was interested in as a prototype. Applicant Hurricane Butterfly named the shotgun TYPHOON because the word means a hurricane originating in the South Pacific, and the shotgun comes from China. Id. at 13-15. Before it could import the TYPHOON shotgun for sale in the United States, Applicant had to comply with regulatory requirements: The Typhoon was an imported shotgun, and as a result certain regulatory processes had to be completed to get the shotgun into the U.S. We had to apply for an ATF6 Form 6, which is an import permit. Because the Typhoon had not been examined by the ATF Firearms Technology and Industry Services branch, ATF would not allow me to import a large quantity of them for sale. ATF wanted to examine the shotgun to determine whether or not it was suitable for importation. I submitted an import permit requesting a single unit for that examination process, and ATF approved the import permit. 6 ATF is an acronym for the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. Opposition No. 91239079 6 Id. at 17. More specifically, Applicant first had to submit the gun’s receiver7 for ATF inspection. Applicant’s ATF Form 6 submission for the receiver, which is dated June 27, 2013 and indicates that it is for a “provisional import for examination by ATF Firearms Technology Branch” is reproduced below on the left, and the ATF’s October 1, 2013 approval of the application is reproduced below on the right: Id. at 18-19, 100, 114. After ATF approved the import permit for the receiver to be inspected, and approved the receiver following inspection, the next step was for Applicant to submit the complete shotgun for ATF approval. Id. at 20. ATF approved Applicant’s sending 7 The receiver on a firearm is analogous to the chassis on a car, as it serves as housing for many of a gun’s components. Opposition No. 91239079 7 of the firearm directly to ATF for inspection. Id. at 43. Applicant’s ATF Form 6 submission for the complete shotgun, which is dated February 13, 2014, indicates that it is for an “examination by ATF Firearms Technology Branch,” and was approved on April 29, 2014. It is reproduced below: Id. at 21-22, 117. The approved complete shotgun arrived in the United States on November 29, 2014. Id. at 24. ATF ultimately found the complete shotgun “generally recognized as Opposition No. 91239079 8 particularly suitable for or readily adaptable to sporting purposes” and “importable into the United States” on October 19, 2015. Id. at 26-27; 32 TTABVUE 2-5. Next, in December 2015, Mr. Wong “took the shotgun with me to a trade show in Phoenix. I showed it to a couple of individuals within the firearms industry. I asked them how they might improve upon the design or what changes they might make?” Id. at 27. Mr. Wong clarified that the shotgun he brought to the trade show was the same one ATF inspected, as “it was the only Typhoon we had in the country at that time.” Id. at 28. Around the same time Applicant “submitted a new import permit to import the first 300 Typhoon shotguns into the U.S.” Id. at 28. However, Mr. Wong testified that Applicant did not start our advertising campaign until the first 300 units had been received. There are many examples when, within the firearm industry where a product will be announced, there will be a huge buzz about it, but it never hits the market. In some cases the product may hit the market, but not for several or even many years after the initial announcement. In my experience in the industry that – in my experience announcing the product before it’s ready for sale is a recipe for disaster … So we waited to start our advertising campaign until the first 300 units came… [in] late 2017. Id. at 29-30. While originally indicating in his testimony that the 300 units arrived in “late 2017,” Mr. Wong later stated that they arrived “I believe during 2016.” Id. at 52. In any event, Mr. Wong claimed that Applicant’s initial advertising for TYPHOON shotguns may have been distributed shortly before it filed its involved application in late 2016. Id. at 33-34. Opposition No. 91239079 9 This is apparently consistent with documentary evidence showing that Appli- cant’s TYPHOON shotgun was not shipped to dealers until January 2017: 10 TTABVUE 115. As Mr. Wong explained in connection with how long the importation approval process typically takes, “[i]n the international sphere, at least in terms of firearms, when you’re moving firearms internationally, nothing moves quickly.” 22 TTABVUE 25; see also id. at 29-30 (“We created advertising, both print and electronic. But we did not start our advertising campaign until the first 300 units had been received.”). Ultimately, Mr. Wong could not remember when Applicant made its first sale of a TYPHOON firearm in the United States. Id. at 54. Opposition No. 91239079 10 Applicant alleged in the involved application that its date of first use in commerce was October 1, 2013 because that is “the approved date for the original ATF Form 6 application for importation of firearms.” Id. at 32. However, Mr. Wong did not remember when Applicant made its first sale of a TYPHOON-branded firearm. Id. at 54. III. Standing Opposer has established its use of the mark TYPHOON for firearms. 10 TTABVUE 43-44 (agreeing that Opposer “has used its trademarks including Typhoon … well before December 29, 2016 …”); see also id. at 25, 33, 39-41. Thus, Opposer has standing. Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014); Giersch v. Scripps Networks, Inc., 90 USPQ2d 1020, 1022 (TTAB 2009) (“Petitioner has established his common-law rights in the mark DESIGNED2SELL, and has thereby established his standing to bring this proceeding.”); Syngenta Crop Prot. Inc. v. Bio-Chek LLC, 90 USPQ2d 1112, 1118 (TTAB 2009) (testimony that opposer uses its mark “is sufficient to support opposer’s allegations of a reasonable belief that it would be damaged …” where opposer alleged likelihood of confusion). IV. Likelihood of Confusion The parties are using the same mark for legally identical goods because Opposer’s “firearms” encompass Applicant’s “shotguns.” There is therefore a likelihood of confusion. Hornblower & Weeks, Inc. v. Hornblower & Weeks, Inc., 60 USPQ2d 1733, 1735 (TTAB 2001) (“Use of identical marks for virtually identical services would create a likelihood of confusion.”). Applicant does not argue otherwise. 29 TTABVUE Opposition No. 91239079 11 5 (“The only disputed issue for the Board to decide in ruling upon this pending opposition matter is which party to the opposition has first use ….”) and 16. V. Priority Therefore, this case boils down to priority. Applicant is entitled to December 29, 2016, the filing date of its involved application, as its constructive priority date. Cent. Garden & Pet Co. v. Doskocil Mfg. Co., 108 USPQ2d 1134, 1140-41 (TTAB 2013) (“for when an application or registration is of record, the party may rely on the filing date of the application for registration, i.e., its constructive use date”); Syngenta, 90 USPQ2d at 1119 (“applicant may rely without further proof upon the filing date of its application as a ‘constructive use’ date for purposes of priority”). Opposer has established that it used its mark prior to that date. 10 TTABVUE 43-44 (agreeing that Opposer “has used its trademarks including Typhoon … well before December 29, 2016 …”); see also id. at 25, 33, 39-41. Applicant seeks to rely, however, on its importation of a single TYPHOON receiver/shotgun into the United States for purposes of the ATF inspection to establish its priority. Indeed, Applicant alleged in the involved application that its claimed date of first use in commerce was October 1, 2013 because that is “the approved date for the original ATF Form 6 application for importation of firearms.” 22 TTABVUE 32. Applicant specifically argues that its efforts to comply with the ATF’s inspection regime and regulatory prerequisites for importing and selling firearms in the United States is analogous to efforts undertaken by pharmaceutical companies to comply with United States pharmaceutical regulations. In the pharmaceutical context, Opposition No. 91239079 12 efforts to obtain regulatory approval have in certain circumstances been considered trademark “use” sufficient to justify or maintain registration. For example, Applicant cites our final decision in Alfacell Corp. v. Anticancer, Inc., 71 USPQ2d 1301 (TTAB 2004). While priority of use was not at issue in that final decision, abandonment was at issue earlier in the case, at the summary judgment phase. On summary judgment, as explained in the Alfacell final decision, we “found that Congress intended the term ‘use in commerce’ to encompass shipments of pharmaceuticals for pre-clinical trials in this country … prior to receiving FDA approval,” and therefore that the respondent’s shipments for pre-clinical trials were sufficient “use” to avoid abandonment. Id. at 1303. Courts have similarly found that under certain circumstances, sales or shipments of pharmaceuticals for purposes of clinical trials may be sufficient to establish priority of use, or to at least constitute “sufficient facts” to state a claim or create a genuine dispute of material fact. See Kythera Biopharmaceuticals, Inc. v. Lithera, 998 F.Supp.2d 890, 899 (C.D. Cal. 2014) (“The Court first finds that Plaintiff has alleged sufficient facts to show that it has a protectable interest. Shipments of drugs for clinical testing may be a sufficient use in commerce to show a protectable interest.”); G.D. Searle & Co. v. Nutrapharm, Inc., No. Civ. 6890 TPG, 1999 WL 988533 (S.D.N.Y. 1999). The Trademark Law Revision Act of 1989’s legislative history provides some support for this theory of “use.” For example, the House Judiciary Committee Report “recognizes that the ‘ordinary course of trade’ varies from industry to industry,” and indicates that a pharmaceutical company’s “shipment to clinical investigators during Opposition No. 91239079 13 the Federal approval process will often be in the ordinary course of trade.” H.R. No. 100-1028, p. 15 (Oct. 3, 1988) (emphasis added). Similarly, the Senate Judiciary Committee Report indicates the Committee’s intention that “use in commerce” be interpreted: (1) “to mean commercial use which is typical in a particular industry;” and (2) “to encompass various genuine, but less traditional, trademark uses such as … ongoing shipments of a new drug to clinical investigators by a company awaiting FDA approval.” S. Rep. No. 100-515, p. 44-45 (Sept. 15, 1988). We do not agree that Applicant’s analogy to clinical testing of pharmaceuticals is apt here. In this case, in sharp contrast to pharmaceutical clinical trials, Applicant’s efforts to obtain regulatory approval prior to the filing date of its involved trademark application consisted of nothing more than transmitting a single receiver, followed by a single complete shotgun, to ATF. In other words, there was no public exposure to the mark as a result of Applicant’s efforts to obtain regulatory approval. In fact, Applicant made a specific decision to not promote its TYPHOON firearms at that time. Indeed, according to Mr. Wong, “we waited to start our advertising campaign until the first 300 units came” to the United States, at the end of 2016 at the earliest. 22 TTABVUE 29-30. This is different than the clinical trials situation, in which doctors or others investigating a pharmaceutical product, and test subjects, who could all be potential consumers, are exposed to the product, and presumably on at least some occasions, its trademark. In other words, there is commercial activity associated with the product. Here, by contrast, Applicant sent a single receiver, followed by a single Opposition No. 91239079 14 complete shotgun, to a federal agency only, for the non-commercial purpose of inspection, years prior to actually offering the product to the consuming public, or publicly promoting it in any way. Furthermore, in contrast to Alfacell, here Applicant does not have an existing registration for its mark, and does not claim any “use” prior to its filing date other than its efforts to obtain ATF approval. Instead, Applicant is seeking registration in the first instance; it is not seeking to defeat an abandonment claim. Moreover, Applicant does not argue, must less cite any authority for the proposition, that the mere shipment of a product to a regulatory agency, years prior to sales or public use of the mark, is sufficient “use” to qualify for registration or establish priority. As the House Judiciary Report states, “shipment to clinical investigators during the Federal approval process will often be in the ordinary course of trade,” which means that it will not always be in the ordinary course of trade. Perhaps more importantly, shipments to “clinical investigators” would involve more public exposure to the mark, by at least investigators and subjects/patients, i.e., potential consumers, than shipments to a single agency for a one-off inspection of the product for purposes of granting importation approval. Applicant’s alternative argument that its activities constitute “use analogous to trademark use” is not well taken. Use analogous to trademark use must be pleaded or tried by implied consent. Cent. Garden, 108 USPQ2d at 1142. Here, it was neither. Neither Applicant’s answer nor its “affirmative defenses” mention use analogous to trademark use. While Applicant’s answer makes clear its intention to rely on the Opposition No. 91239079 15 ATF’s October 1, 2013 approval of the importation of the receiver to establish earlier use than its filing date, at the same time, Applicant refers to this as “bona fide use” rather than use analogous to trademark use. 4 TTABVUE 4-5. Furthermore, there is no basis upon which to conclude that the issue of analogous use was tried by implied consent. Indeed, as a result of Applicant’s claim in its answer that the ATF’s approval of Applicant’s request to import the receiver constituted “bona fide use,” Opposer may understandably have assumed that Applicant’s trial evidence concerning the approval was an attempt to support an erroneous claim of actual use rather than use analogous to trademark use. See TBMP §507.03(b) (June 2019). In any event, even if we were to find that Applicant pleaded use analogous to trademark use or that the issue was tried by implied consent, the claim would fail. Before a prior use becomes an analogous use sufficient to create proprietary rights, the [party] must show prior use sufficient to create an association in the minds of the purchasing public between the mark and the [party’s] goods … A showing of analogous use does not require direct proof of an association in the public mind … Nevertheless, the activities claimed to create such an association must reasonably be expected to have a substantial impact on the purchasing public before a later user acquires proprietary rights in a mark …. Herbko Int’l, 308 F.3d at 1156, 64 USPQ2d at 1378; T.A.B. Systems v. PacTel Teletrac, 77 F.3d 1372, 37 USPQ2d 1879 (Fed. Cir. 1996). Here, there is no evidence that any of Applicant’s activities prior to its filing date created an association in the minds of the purchasing public between TYPHOON and Applicant’s shotguns. Opposition No. 91239079 16 There is no evidence that the ATF’s importation approvals and inspections were anything other than a private matter between Applicant and the ATF.8 That is not good enough − only uses of the mark or uses analogous to trademark use “directed to customers or to potential customers” would be sufficient to confer prior rights. See Liqwacon Corp. v. Browning-Ferris Industries, Inc., 203 USPQ 305, 308-09, 316 (TTAB 1979); see also Computer Food Stores Inc. v. Corner Store Franchises, Inc., 176 USPQ 535, 539 (TTAB 1973). Nor did Applicant begin promoting its TYPHOON shotguns until after Opposer’s date of first use. In fact, Mr. Wong testified that Applicant made a considered choice to avoid promoting what would essentially be the firearm equivalent of “vaporware,”9 testifying that “announcing the product before it’s ready for sale is a recipe for disaster.” 22 TTABVUE 29-30. While Applicant brought the complete shotgun approved by ATF to a trade show in 2015, the purpose of doing so was to solicit suggestions for improving the gun. In other words, Mr. Wong indicated to the “couple of individuals within the firearms industry” whose help he solicited that the gun was not the final version to be offered 8 Cf. Automedx, Inc. v. Artivent Corp., 95 USPQ2d 1976 (TTAB 2010) (test sales to potential customers constitute bona fide use). 9 Merriam-Webster dictionary defines “vaporware” as “a computer-related product that has been widely advertised but has not and may never become available.” (merriam- webster.com/dictionary/vaporware). The Board may take judicial notice of dictionary definitions, including online dictionaries that exist in printed format or have regular fixed editions. In re Cordua Rests. LP, 110 USPQ2d 1227, 1229 n.4 (TTAB 2014), aff’d, 823 F.3d 594, 118 USPQ2d 1632 (Fed. Cir. 2016); Threshold TV Inc. v. Metronome Enters. Inc., 96 USPQ2d 1031, 1038 n.14 (TTAB 2010). Opposition No. 91239079 17 to the consuming public. 22 TTABVUE 27. A “couple of individuals” who may not even be potential customers is not nearly enough to establish use analogous to trademark use. T.A.B. Systems, 77 F.3d at 1372, 37 USPQ2d at 1882-84 (“Nor can there be any doubt that purchaser perception must involve more than an insubstantial number of potential customers. For example, if the potential market for a given service were 10,000 persons, then advertising shown to have reached only 20 or 30 people as a matter of law could not suffice.”); Westrex Corp. v. New Sensor Corp., 83 USPQ2d 1215, 1219 (TTAB 2007). Furthermore, Applicant did not show the final product to these individuals. Rather, it sought their help to develop the final product. Cf. Hydro-Dynamics, Inc. v. George Putnam & Co., 811 F.2d 1470, 1 USPQ2d 1772, 1774-75 (Fed. Cir. 1987) (“Subsequent adoption of the mark does not convert a shipment for the purpose of advisory consultation on the merits of a proposed trademark into a bona fide use of the mark in commerce.”). VI. Conclusion Of course, we must weigh the evidence of record as a whole, rather than considering each piece of evidence in isolation. West Florida Seafood Inc. v. Jet Restaurants Inc., 31 F.3d 1122, 31 USPQ2d 1660, 1663 (Fed. Cir. 1994) (“However, whether a particular piece of evidence by itself establishes prior use is not necessarily dispositive as to whether a party has established prior use by a preponderance. Rather one should look at the evidence as a whole, as if each piece of evidence were part of a puzzle which, when fitted together, establishes prior use.”). Here, applying this standard, we find that the whole of Applicant’s activities before the filing date of Opposition No. 91239079 18 its application − consisting of seeking ATF approval for importations and soliciting suggestions for improving Applicant’s goods before they are offered to the public − do not establish any “substantial impact on the purchasing public.” Herbko Int’l, 64 USPQ2d at 1378. In the absence of evidence that relevant consumers were exposed to and substantially impacted by the use of Applicant’s mark in connection with Applicant’s goods, Applicant’s analogy to pharmaceutical clinical trials fails. Because Opposer has established that it has priority of use and that there is a likelihood of confusion between the marks, the opposition is sustained. Decision: The opposition is sustained on Opposer’s Section 2(d) claim, and we therefore need not reach Opposer’s other claims. Multisorb Tech., Inc. v. Pactiv Corp., 109 USPQ2d 1170, 1171 (TTAB 2013). Registration of Applicant’s mark is refused. Copy with citationCopy as parenthetical citation