Instagram, LLCv.Brian Sherman HaightDownload PDFTrademark Trial and Appeal BoardAug 16, 2018No. 92063830 (T.T.A.B. Aug. 16, 2018) Copy Citation This Opinion is Not a Precedent of the TTAB Mailed: August 16, 2018 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Instagram, LLC v. Brian Sherman Haight _____ Cancellation No. 92063830 _____ Larry McFarland, Peter Kidd, and Gia L. Cicone of Kilpatrick Townsend & Stockton, LLP, for Instagram, LLC. Michael L. Rodenbaugh of Rodenbaugh Law, for Brian Sherman Haight. _____ Before Zervas, Bergsman, and Gorowitz, Administrative Trademark Judges. Opinion by Bergsman, Administrative Trademark Judge: Instagram, LLC (“Petitioner”) filed a petition to cancel the registration of the mark INSTA (standard characters) for “promoting the sale of goods and services of others by providing instant QR-code1 generated coupons and discounts to a mobile device,” 1 A “QR-code” is defined as a “matrix bar code.” Dictionary.com based on the Random House Unabridged Dictionary (2018). The Board may take judicial notice of dictionary definitions, including online dictionaries that exist in printed format. 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); In re Cancellation No. 92063830 - 2 - in Class 35, owned by Brian Sherman Haight (“Respondent”).2 Petitioner alleges that Respondent has abandoned the mark with no intent to resume use. Respondent, in his Answer, denies the salient allegations in the Petition for Cancellation. I. Preliminary Issue Both parties have lodged numerous objections. None of the evidence sought to be excluded is outcome determinative. Moreover, the Board is capable of weighing the relevance and strength or weakness of the objected to testimony and evidence, including any inherent limitations. As necessary and appropriate, we will point out any limitations in the evidence or otherwise note that the evidence cannot be relied upon in the manner sought. In doing so, we have kept in mind the various objections raised by the parties and we have accorded whatever probative value the subject testimony and evidence merit. See Luxco, Inc. v. Consejo Regulador del Tequila, A.C., 121 USPQ2d 1477, 1479 (TTAB 2017). Red Bull GmbH, 78 USPQ2d 1375, 1378 (TTAB 2006). An image of a QR-code is reproduced below from Respondent’s discovery deposition, Exhibit 2 (11 TTABVUE 64). 2 Registration No. 4341689, registered May 28, 2013. - Cancellation No. 92063830 - 3 - II. The Record The record includes the pleadings and, by operation of Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), Respondent’s registration file. The parties introduced the testimony and evidence listed below: A. Petitioner’s testimony and evidence 1. A notice of reliance on the following items: a. A copy of Petitioner’s application Serial No. 86725463 for the mark INSTA and design, shown below,3 for the services listed below, printed from the USPTO electronic database. Marketing, advertising and promotion services; Dissemination of advertising for others via computer and communication networks; Promoting the goods and services of others via computer and communication networks; Marketing and advertising consultation services; Market research services; Provision of market research information; Providing online advertising services for others; Providing online advertising on computer networks, in Class 35. 3 11 TTABVUE 6. The application includes the following description of the mark: The color(s) white, black, brown, red, yellow, green and blue is/are claimed as a feature of the mark. The mark consists of a stylized image of the front of a brown and white camera with a black lens in the center, a black viewfinder in the upper-right portion, and the white letters “I”, “N”, “S”, “T”, “A” inside a brown oval to the left of the lens. Above the letters are vertical lines which are red, yellow, green and blue. Cancellation No. 92063830 - 4 - b. A copy of the December 4, 2015 Office Action in Petitioner’s above- noted application Serial No. 86725463 citing Respondent’s registration as a Section 2(d) bar to registration.4 c. Respondent’s responses to Petitioner’s first set of interrogatories.5 d. Excerpts from Respondent’s discovery deposition.6 e. Copies of screen shots from the cleantalk.org website.7 2. Testimony declaration of Carlo Vogel, a private investigator specializing in intellectual property related investigations.8 3. Rebuttal testimony declaration of Cliff Petrovsky, President of Investigative Network, Inc., an investigative firm specializing in trademark and intellectual property matters.9 B. Respondent’s testimony and evidence. 1. Respondent’s testimony declaration.10 2. Notice of reliance on the following items: a. Excerpts from Respondent’s discovery deposition which pursuant to Trademark Rule 2.120(k)(4), 37 C.F.R. § 2.120(k)(4), “should in fairness be considered so as to make not misleading what was offered by the submitting party.”11 b. Respondent’s LinkedIn profile.12 4 11 TTABVUE 11. 5 11 TTABVUE 22. 6 11 TTABVUE 30. 7 11 TTABVUE 76. 8 12 TTABVUE. 9 16 TTABVUE. 10 14 TTABVUE. 11 15 TTABVUE 6. 12 15 TTABVUE 39. Cancellation No. 92063830 - 5 - c. Excerpts from the instastuff.com website (April 2017).13 d. Cross-examination of Carlo Vogel.14 e. Excerpt from the Marksmen.com website.15 III. Standing A threshold issue in every inter partes case is the plaintiff's standing to challenge registration. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014); John W. Carson Found. v. Toilets.com Inc., 94 USPQ2d 1942, 1945 (TTAB 2010). To establish its standing, Petitioner must prove that it has a “real interest,” i.e., a “reasonable” basis for its belief of damage. See Empresa Cubana, 111 USPQ2d at 1062; Ritchie v. Simpson, 170 F.3rd 1092, 50 USPQ2d 1023, 1025 (Fed. Cir. 1999); Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (TTAB 1982). We find that Petitioner has adequately established a real interest in this proceeding through its evidence that it filed a trademark application with the USPTO for the mark INSTA and design for services in International Class 35, and that the USPTO issued a refusal to register the application based on likelihood of confusion with Respondent’s registration under Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d).16 See SaddleSprings Inc. v. Mad Croc Brands Inc., 104 USPQ2d 1948, 1950 (TTAB 2012) (standing supported by allegation that petitioner’s intent-to-use application has been refused based on 13 15 TTABVUE 48. 14 15 TTABVUE 75. 15 15 TTABVUE 142. 16 11 TTABVUE 11. Cancellation No. 92063830 - 6 - respondent’s registrations); ShutEmDown Sports Inc. v. Lacy, 102 USPQ2d 1036, 1043 (TTAB 2012) (standing shown by evidence that plaintiff’s application was refused registration in view of defendant’s registration); Fiat Grp. Autos. S.p.A. v. ISM Inc., 94 USPQ2d 1111, 1112 (TTAB 2010) (the filing of opposer’s application and the Office’s action taken in regard to that application provide opposer with a basis for pleading its standing). Respondent, in his brief, does not challenge Petitioner’s standing. We find that Petitioner has established its standing to bring the petition for cancellation. IV. Abandonment A. Statement of the Law The Trademark Act provides for the cancellation of a registration if the registered mark has been abandoned. See Section 14 of the Trademark Act, 15 U.S.C. §1064. Under Section 45 of the Trademark Act, 15 U.S.C. §1127, a mark is considered abandoned when “its use has been discontinued with intent not to resume such use.” The definition of abandonment is found in this provision, as follows: A mark shall be deemed to be “abandoned” if either of the following occurs: (1) When its use has been discontinued with intent not to resume such use. Intent not to resume may be inferred from circumstances. Nonuse for 3 consecutive years shall be prima facie evidence of abandonment. “Use” of a mark means the bona fide use of such mark made in the ordinary course of trade, and not made merely to reserve a right in a mark. … Cancellation No. 92063830 - 7 - 15 U.S.C. §1127. Because registrations are presumed valid under the law, the party seeking their cancellation bears the burden of proving a prima facie case of abandonment by a preponderance of the evidence. See On-Line Careline Inc. v. Am. Online Inc., 229 F.3d 1080, 56 USPQ2d 1471, 1476 (Fed. Cir. 2000); Cerveceria Centroamericana S.A. v. Cerveceria India Inc., 892 F.2d 1021, 13 USPQ2d 1307, 1309 (Fed. Cir. 1989); Exec. Coach Builders, Inc. v. SPV Coach Co., 123 USPQ2d 1175, 1180-81 (TTAB 2016). If the petitioner presents a prima facie case of abandonment, the burden of production (i.e., going forward), then shifts to the trademark holder to rebut the prima facie showing with evidence. Cerveceria Centroamericana, 13 USPQ2d at 1311. Abandonment is a question of fact. See Stock Pot Rest., Inc. v. Stockpot, Inc., 737 F.2d 1576, 222 USPQ 665, 667 (Fed. Cir. 1984). Thus, any inference of abandonment must be based on proven fact. Section 45 of the Trademark Act. See also Cerveceria Centroamericana S.A. v. Cerveceria India Inc., 13 USPQ2d at 1310 (“The protection due the registrant is provided by requiring that the inference have an adequate foundation in proven fact. Whenever an inference is based on pure speculation and ‘there is no basis … to infer nonuse,’ a prima facie case of abandonment must fail.”) (quoting P.A.B. Produits et Appareils de Beaute v. Satinine Societa in Nome Collettivo di S.A. e. M. Usellini, 570 F.2d 328, 332-33, 196 USPQ 801, 804-05 (CCPA 1978)); Stetson v. Howard D. Wolf & Assoc's, 955 F.2d 847, 21 USPQ2d 1783, 1785 (2d Cir. 1992) (A party claiming that a mark has been abandoned must show “non-use of the mark by the legal owner and no intent by that person or entity to resume use.”). Cancellation No. 92063830 - 8 - Proof of non-use for three consecutive years, however, constitutes prima facie evidence of abandonment, because it supports an inference of a lack of intent to resume use. Section 45 of the Trademark Act. See also Yazhong Investing Ltd. v. Multi-Media Tech. Ventures, Ltd., 126 USPQ2d 1526, 1533 (TTAB 2018); On-line Careline Inc. v. Am. Online Inc., 56 USPQ2d at 1476 (“The party seeking cancellation establishes a prima facie case of abandonment by showing proof of nonuse for three consecutive years.”); Emergency One, Inc. v. Am. FireEagle, Ltd., 228 F.3d 531, 56 USPQ2d 1343 (4th Cir. 2000). As noted above, if the plaintiff establishes non-use for three consecutive years, the burden shifts to defendant to rebut the prima facie case by either disproving the three years of nonuse or showing an intent to resume use. Cerveceria Centroamericana, 13 USPQ2d at 1312. B. Evidence of Abandonment Respondent had only two merchants providing coupons for his promotional services: (i) Bruno’s Pizzeria from November 2012 through January 2013; and (ii) Paris Jewelry from January 2013 through March 2013.17 Respondent generated revenue only from January through March 2013.18 Q. So as of April 2013, you had no clients? A. I had no clients after that point. No active clients… * * * 17 Respondent’s response to Petitioner’s Interrogatory No. 2 (11 TTABVUE 23); see also Respondent’s Discovery Dep., pp. 31 and 33-34 (11 TTABVUE 35 and 37-38). 18 Respondent’s response to Petitioner’s Interrogatory No. 5 (11 TTABVUE 25). Cancellation No. 92063830 - 9 - Q. Did you have customers registered during that time between April 2013 and, I think you said, April 2016? A. Yeah. There were a handful that registered, just to check out the service. Q. Did they get any sort of service when they registered? A. It – they would have if I had open retail sites, but I didn’t. So, no. But they could read about it and kind of generate interest and that kind of thing. Get familiar with the - - with the service and the name and what it does.19 * * * Q. So is it fair to say that after April 2013, you were not actually providing instant QR-code-generated coupons and discounts to a mobile device? A. I would say I was - - I was planning on doing that more, but at the - - at that time, I was not. But I’m still planning on keeping it going, getting it back up and running. Q. But as of April 13 [2013] – since April 13 [2013], you have not actually provided the services that are listed in this registration [Registration No. 4341689 at issue herein]? A. I mean, the website is up and running, the - - you can clearly visit and find out what the service is, but I didn’t have any active clients at that point. Q. So no services - - A. So - - Q. - - correct? 19 Respondent’s Discovery Dep., pp. 37-38 (11 TTABVUE 41-42). Cancellation No. 92063830 - 10 - A - - no active clients, I would say. But, I mean, you know, in that time frame, no, I didn’t have an active service.20 This testimony directly contradicts Respondent’s assertion that “[h]e still has offered a free service to end-user customers in association with the mark.”21 Because Respondent did not have any participating retailers after April 13, 2013, it was impossible for him to offer promotional services in the nature of providing instant QR-code generated coupons and discounts. When considering the evidence of Respondent’s use of his INSTA mark, we bear in mind that Section 45 of the Trademark Act states that: The term “use in commerce” means the bona fide use of a mark in the ordinary course of trade, and not made merely to reserve a right in a mark. For purposes of this chapter, a mark shall be deemed to be in use in commerce — (2) on services when it is used or displayed in the sale or advertising of services and the services are rendered in commerce, or the services are rendered in more than one State or in the United States and a foreign country and the person rendering the services is engaged in commerce in connection with the services. (Emphasis added). Petitioner has established a prima facie case of abandonment based on at least three consecutive years of nonuse from April 13, 2013 through April, 13, 2016 by reliance on Respondent’s testimony and responses to Petitioner’s interrogatories. Thus, the burden of going forward and rebutting the prima facie showing, with evidence, shifts to Respondent. Societe Des Produits Marnier Lapostolle v. Distillerie 20 Respondent’s Discovery Dep., pp. 38-39 (11 TTABVUE 42-43). 21 Respondent’s Brief, p. 7 (21 TTABVUE 8). Cancellation No. 92063830 - 11 - Moccia S.R.L., 10 USPQ2d 1241, 1244 (TTAB 1989) (evidence of non-use for two year is sufficient to raise presumption of abandonment and shift the burden to respondent to rebut the inference of abandonment). C. Respondent’s intent not to resume use In analyzing the evidence regarding whether Respondent discontinued use of his mark with no intent to resume use, we are mindful that a “registrant’s proclamations of his intent to resume or commence use in United States commerce during the period of nonuse are awarded little, if any, weight.” Rivard v. Linville, Rivard v. Linville, 133 F.3d 1446, 45 USPQ2d 1374, 1376 (Fed. Cir. 1998); (citing Imperial Tobacco Ltd. v. Philip Morris, Inc., 899 F.2d 1575, 14 USPQ2d 1390, 1394 (Fed. Cir. 1990) (“In every contested abandonment case, the respondent denies an intention to abandon its mark; otherwise there would be no contest.”)). [A]n affirmative desire by the registrant not to relinquish a mark is not determinative of the intent element of abandonment under the Lanham Act. Nothing in the statute entitles a registrant who has formerly used a mark to overcome a presumption of abandonment arising from subsequent nonuse by simply averring a subjective affirmative “intent not to abandon.” * * * Intent to resume use in abandonment cases has been equated with a showing of special circumstances which excuse a registrant's nonuse. … If a registrant's nonuse is excusable, the registrant has overcome the presumption that its nonuse was coupled with an “intent not to resume use,” or, as Imperial would have it, an “intent to abandon.” If the activities are insufficient to excuse nonuse, the presumption is not overcome. [Internal citations omitted] Imperial Tobacco, 14 USPQ2d at 1395. Cancellation No. 92063830 - 12 - Insofar as the steps Respondent has taken to resume use, Respondent has introduced the testimony and evidence listed below: • From September 2012 through April 2016, Respondent estimated that he spent in excess of 120 hours on website design and implementation, in excess of 120 hours on “SEO” analysis and marketing, and 20 hours on creating sales presentations.22 • Respondent’s instastuff.com website has remained active and, since 2013, he has had 6,000 visitors.23 I mean I had 6,000 visitors between 2013 and 2016. I had 66 visitors in April of 2015 itself. And there would - - it’s just traffic there, checking out the service and seeing what I’m doing. Just kind of driving interest.24 • Since April 2013, Respondent has been too busy to recruit new clients himself,25 and “was not actively marketing the service to retailers.”26 To find sales people, Respondent “talked to friends and family and people that I’ve worked with in the past,” including former colleagues.27 However, Respondent “just couldn’t find 22 Respondent’s response to Petitioner’s Interrogatory No. 4 (11 TTABVUE 24-25). 23 Respondent’s Discovery Dep., p. 37 (11 TTABVUE 41); see also id. at p. 39 (11 TTABVUE 43) (“I mean, the website is up and running, the - - you can clearly visit and find out what the service is, but I didn’t have any active clients at that point.”). 24 Id. at p. 37 (11 TTABVUE 41); see also Respondent’s Testimony Decl. ¶4 (14 TTABVUE 3). 25 Respondent’s Discovery Dep., pp. 71-71 (11 TTABVUE 60-61). 26 Respondent’s Testimony Decl. ¶5 (14 TTABVUE 3). 27 Respondent’s Discovery Dep., p. 43 (11 TTABVUE 44); see also id. at p. 69 (15 TTABVUE 24) (Respondent recalled conversations with three different friends at various times ranging from a “couple of months ago” [from February 3, 2017], “last year,” and “probably two years ago”). Cancellation No. 92063830 - 13 - somebody to really help me try to figure out how to sell this thing.”28 Respondent does not recall any email communications regarding his seeking sales help because “[m]ostly, it was a - - it was a - - just trying to sit down and have lunch with somebody and talk to them about it.”29 • Respondent made content changes on his website. Q. What sorts of changes? A. Just tweaking the copy and the keywords and the meta tags here and there to try to make sure that the content is relevant. There’s not a ton of copies. So just tweaks to the copy.30 * * * A. But there are lots of things that changed, including the alt image tags and the meta description, the meta keywords that are in the source code that you wouldn’t see [on screen shots of the website].31 • Respondent removed his website on April 22, 2016 to save money and to revise the design.32 He relaunched the website in November 2016, after Petitioner filed the petition to cancel.33 28 Respondent’s Discovery Dep., p. 44 (11 TTABVUE 45). 29 Respondent’s Discovery Dep., p. 45 (11 TTABVUE 46); see also id. at p. 71 (11 TTABVUE 60). 30 Respondent’s Discovery Dep., pp. 45-46 (11 TTABVUE 46-47). 31 Respondent’s Discovery Dep., p. 48 (11 TTABVUE 49). 32 Respondent’s Discovery Dep., p. 50 (11 TTABVUE 51). 33 Id. Cancellation No. 92063830 - 14 - • Respondent has been taking classes since the middle of 2016 to learn programming language to create an application for a smartphone.34 The testimony or evidence that Respondent had an intent to resume use of the mark after he stopped using it in April 2013 is insufficient to rebut Petitioner’s prima facie case of abandonment. Respondent did not take any steps to market his service to participating retailers, or to consumers, other than maintaining his website. Thus, Respondent has not engaged in the type of activity necessary to resume his promotional services using QR-code generated coupons and discounts. See Volkswagewerk Aktiengesellschaft v. Advance Welding and Mfg. Corp., 193 USPQ 673, 676-77 (TTAB 1976) (because respondent failed to take meaningful steps to raise the capital necessary to manufacture the products, respondent was unable to show an intent not to abandon its mark); Hamilton Burr Publ’g Co. v. E. W. Commc’n, Inc., 216 USPQ 802, 807 (TTAB 1982) (where reuse of the mark is speculative, defendant failed to rebut the presumption of an intent not to resume use). Respondent’s interrogatory response that he has spent, in excess of 120 hours on “SEO” analysis and marketing is an unsubstantiated assertion of a vaguely defined effort. Moreover, it is contradicted by Respondent’s testimony that he has been too busy to recruit new clients and actively market to retailers. 34 Respondent’s Discovery Dep., p. 50-51 (11 TTABVUE 51-52); see also Respondent’s Testimony Decl. ¶¶7 and 10 (14 TTABVUE 3 and 4). Respondent’s discovery deposition was taken on February 3, 2017 and he testified that he started taking online programming classes “mid last year” (i.e., June 2016). Respondent’s Discovery Dep., p. 51 (11 TTABVUE 52). Cancellation No. 92063830 - 15 - Further, there is no testimony or evidence as to when Respondent intended to resume use of his mark. See Yazhong Investing, 126 USPQ2d at 1539 (potential use at some unknown point in the future is insufficient to show an intent to resume use); Exec. Coach Builders, Inc. v. SPV Coach Co., 123 USPQ2d at 1198-99 (plans to resume use must be within the reasonably foreseeable future); Emergency One, Inc. v. Am. FireEagle, Ltd., 56 USPQ2d at 1348 (“Once the challenger shows discontinued use, the owner must produce evidence of intent to resume use ‘within the reasonably foreseeable future.’ … Of course, what is meant by the ‘reasonably foreseeable future’ will vary depending on the industry and the particular circumstances of the case … it might be reasonable for a fire truck manufacturer to spend five or six years considering the reintroduction of a brand, even though the same passage of time would be unreasonable for a maker of a more ephemeral product, say potato chips.”). Suffice it to say, Respondent failed to show any evidence of a specific and consistent plan to resume use. Accordingly, we find that Respondent abandoned his mark because there was nonuse from at least April 2013 through April 2016 with no intent to resume use. Decision: The petition to cancel Registration No. 4341689 for the mark INSTA is granted. Copy with citationCopy as parenthetical citation