O.C. Seacrets, Inc.v.Hotelplan Italia S.p.A.Download PDFTrademark Trial and Appeal BoardMar 8, 2012No. 91190886 (T.T.A.B. Mar. 8, 2012) Copy Citation Mailed: March 8, 2012 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board ______ O.C. Seacrets, Inc. v. Hotelplan Italia S.p.A. _____ Opposition No. 91190886 to application Serial No. 79048720 filed on November 22, 2007 _____ Barth X. deRosa and Melissa A. Alcantara of Dickson Wright LLC for O.C. Seacrets. Mark Lebow of Young & Thompson for Hotelplan Italia S.p.A. ______ Before Kuhlke, Cataldo, and Mermelstein, Administrative Trademark Judges. Opinion by Kuhlke, Administrative Trademark Judge: Applicant, Hotelplan Italia S.p.A., seeks registration of the mark SECRETS LINE in standard characters on the Principal Register for goods and services identified in the application as: Travel books, travel magazines, travel pamphlets, printed matter, namely, travel brochures, maps and travel guides, in International Class 16; Advertising and promotional campaigns for third parties; business administration of hotels, THIS OPINION IS NOT A PRECEDENT OF THE T.T.A.B. Opposition No. 91190886 2 restaurants, pensions, residences, villas, holiday homes, hostels, camping sites for third parties; providing office functions; study, plan, realization, managing and organizing of fidelity programs for customers, namely, promoting the goods and services of others by means of a preferred customer benefit program featuring supporter fidelity cards that contain the personal data of the owner for use in conjunction with traveling; conducting incentive bonus schemes in the field of business administration, promotional and advertising campaigns for third parties through the distribution of prepaid stored value cards for the purpose of promoting and rewarding loyalty; market research and analysis services, in International Class 35; Monetary and financial affairs, namely, issuing of travel checks and letters of credit from brokers or travel agencies, in International Class 36; Telecommunications services, namely, local and long distance transmission of voice, data, graphics by means of telephone, telegraphic, cable, and satellite transmissions; transmission of messages, images, information, sounds and data by internet, by satellite and by cable, in International Class 38; Travel agencies and tour operators services, namely, organization and reservations of travel arrangement and travel tickets booking; arranging of cruises and excursions; escorting of travelers and tour conducting; organization and arrangement of sight-seeing tours; consultancy and information relating to travels, transportation and tourism, namely, timetables, airlines tariffs and organizing and cruises; organizing and rental of transportation services, namely, making reservations and bookings for transportation and transportation services by air, road, rail and sea, in International Class 39; Education services, namely, providing seminars, workshops and training courses in the fields of tourism and hotel trade; organization of sporting and cultural activities, namely, Opposition No. 91190886 3 triathlons, and sporting events pertaining to tennis, swimming, golf, gymnastics, volleyball, ski and painting; organizing educational courses, congresses, conventions, exhibitions and meetings, featuring the subject matter of tourism for training staff involved in tourist activities; organizing of sports competitions and sports events in the field of football, tennis, volleyball, swimming, golf, gymnastics and skiing for the entertainment of staff involved in tourist activities; recreation and entertainment services, namely, organizing sports competitions, sports competitions with prizes, conducting parties featuring party games, planning arrangement of showing movies, shows, plays or musical performances, organization of dancing events and organization of games for children; publication of books, magazines, travel magazines and travel guides, in International Class 41; and Reservation of hotel rooms for travelers, booking of campground facilities, hostels, arranging temporary housing accommodations, reservations of holiday villages for travelers, reservation of restaurants, in International Class 43. The application was filed on November 22, 2007, under Section 66 of the Trademark Act, 15 U.S.C. § 1141, with a foreign priority date of September 17, 2007. The application includes a disclaimer for the word LINE. Opposer, O.C. Seacrets, Inc., has opposed registration of applicant’s mark on the ground that, as applied to applicant’s goods and services in International Classes 16, 35, 39, 41 and 43, the mark so resembles opposer’s previously used and registered mark SEACRETS for, inter alia, restaurant, bar, hotel, nightclub and live entertainment services, and a wide variety of collateral Opposition No. 91190886 4 goods and services (e.g., a “credit card” for use on the property to encourage customer loyalty and cross-promotion campaigns for travel and hotel stays in Jamaica) as to be likely to cause confusion under Section 2(d) of the Trademark Act, 15 U.S.C. §1052(d). In addition, opposer asserts the ground that applicant’s mark falsely suggests a connection with opposer under Section 2(a) of the Trademark Act, 15 U.S.C. §1052(a).1 Applicant has filed an answer admitting that “it has not yet used its mark in the United States with respect to the goods and services identified in its application” and denying the remaining salient allegations. The Record By operation of the Trademark Rules, the pleadings herein and the file of the opposed application are of record. Opposer submitted the testimony, with accompanying exhibits, of Leighton Moore, opposer’s President and Owner, and Gary Figgs, opposer’s Vice President and Chief Financial Officer. In addition, opposer submitted, under 17 notices of reliance: (1) title and status copies of opposer’s pleaded registration for the mark SEACRETS for restaurant and bar services and several other registrations and 1 The opposition was not brought against the services listed in International Classes 36 and 38. On April 2, 2010, the Board entered judgment in favor of applicant on the fraud claim and denied opposer’s motion to add the claim of no bona fide intent to use the mark. Opposition No. 91190886 5 applications owned by opposer for SEACRET-formative marks for a variety of goods and services; (2) certain of opposer’s discovery requests and applicant’s responses thereto; (3) printed publications; (4) samples of opposer’s print advertising; (5) third-party registrations; (6) dictionary definitions; and (7) a prior Board decision involving opposer. Applicant submitted, under a notice of reliance, various documents (applicant’s brochures, invoices, photographs of promotional articles, etc.) described as “corresponding in part to Opposer’s Trial Exhibit No. 147,” which consists of applicant’s documentary response to opposer’s Interrogatory Nos. 8 and 9. Opposer, in its brief, did not object to the documents submitted under applicant’s notice of reliance. It is not clear if applicant intended to submit these documents under Trademark Rule 2.120(j)(ii)(5), wherein a party may submit its discovery responses “which should in fairness be considered so as to make not misleading what was offered by the receiving or inquiring party.” Many of the documents appear simply to be duplicates of those submitted by opposer under its notice of reliance. We have considered these documents for whatever probative value they may have. Applicant did not take any testimony, cross examine opposer’s witnesses or file a brief. However, opposer in Opposition No. 91190886 6 its brief, states that the parties “stipulated to Applicant having a ‘continuing objection to the introduction of evidence related to the mark SEACRET DESTINATIONS on the grounds that this mark, its registration and common law use was not pleaded by Opposer as a basis for opposing Applicant’s application.’” Br. p. 11. In general, because applicant did not file a brief, the objections would be considered waived; however, in view of the stipulation we consider the objection to be maintained. The mark SEACRET DESTINATIONS was not pleaded and applicant’s objection is sustained to the extent that we have not considered use of this mark. However, we have considered the evidence pertaining to applicant’s provision of travel agency services, albeit under a different mark, to the extent it shows that such services are related to opposer’s other services (restaurant, bar, hotel, travel promotion and entertainment services) and the complementary nature of these services. Standing and Priority Opposer has made its pleaded registration properly of record. Registration No. 2102604 is for the mark SEACRETS in typed form for “restaurant and bar services.” The registration issued on October 7, 1997, based on an application filed on October 31, 1995. Section 8 and 15 affidavits have been accepted and acknowledged, and the Opposition No. 91190886 7 registration has been renewed. In view thereof, opposer has established its standing to oppose registration of applicant’s mark. In addition, its priority is not in issue as to its restaurant and bar services. See King Candy Co., Inc. v. Eunice King’s Kitchen, Inc., 496 F.2d 1400, 182 USPQ 108 (CCPA 1974). Moreover, opposer has established prior use of its mark SEACRETS in connection with various other goods and services, in particular, hotel services. Applicant has admitted that it has not begun use of the mark in the United States.2 Therefore, the date of first use upon which applicant may rely is September 17, 2007. Opposer has established that it has used the mark SEACRETS in connection with the provision of nightclub and entertainment services since 1988,3 hotel services since at least as early as the spring of 1999,4 and promoting travel to other destinations since approximately 1994.5 Likelihood of Confusion Our likelihood of confusion determination under Section 2(d) is based on an analysis of all of the probative facts in evidence that are relevant to the factors set forth in In 2 Answer ¶ 2; Opp. Trial Exh. 142 (Applicant’s Response to Admission Request No. 6). 3 Moore Test. pp. 12, 87. 4 Moore Test. p. 92. Opposition No. 91190886 8 re E. I. du Pont de Nemours and Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973). See also, In re Majestic Distilling Co., Inc., 315 F.3d 1311, 65 USPQ2d 1201 (Fed. Cir. 2003). We begin with the factor of fame because fame “plays a ‘dominant’ role in the process of balancing the du Pont factors.” Recot Inc. v. Becton, 214 F.3d 1322, 54 USPQ2d 1894, 1897 (Fed. Cir. 2000). “[T]he fame of a mark may be measured indirectly, among other things, by the volume of sales and advertising expenditures of the goods traveling under the mark, and by the length of time those indicia of commercial awareness have been evident.” Bose Corp. v. QSC Audio Products, Inc., 293 F.3d 1367, 63 USPQ2d 1303, 1305 (Fed. Cir. 2002). Opposer has expended significant sums on a broad-based advertising program in a variety of media, including, print, cable television (e.g., ESPN, USA, MTV, CNN, TNT), radio (approximately 5000 radio spots per year), Internet and billboards. See Moore Test. pp. 154-171, and Figgs Test. pp. 105-124. The advertising, other than on the Internet, is only regional and not national in scale. For example, the print advertising only appears in publications circulated in the Delmarva (Delaware, Maryland, Virginia) Peninsula. In addition, the radio spots are limited to the same region. In keeping with this localized strategy, 5 Figgs Test. pp. 166-169; Moore Test. pp. 76-77. Opposition No. 91190886 9 opposer also routinely uses banner pulls on airplanes that traverse the beach and “bus wraps” on Ocean City, Maryland buses where the entire bus is dedicated solely to the promotion of the SEACRETS resort. Opposer has used its mark for more than 22 years and has generated significant income, hosting nearly one million people per year at its complex. It has received numerous awards, including, in 2010, being recognized as the 8th largest nightclub in the entire United States. We note, however, that its restaurants, bars, nightclub and hotel are in one location, on the Mid-Atlantic coast in Ocean City, Maryland. In addition, the record shows that opposer’s promotion and marketing of its services under this mark, is concentrated in the region around Ocean City, Maryland. However, by seeking a geographically unrestricted mark, we must consider that applicant seeks to market its goods and services throughout the United States, including in Ocean City, Maryland, and the surrounding region. Thus, while this evidence falls short of demonstrating nationwide fame, it does demonstrate that opposer has attained a substantial degree of renown in the Mid-Atlantic region surrounding Ocean City, Maryland. See ProQuest Information and Learning Co. v. Island, 83 USPQ2d 1351 (TTAB 2007). Strength is measured in degrees and while the record evidence does not show a level of consumer exposure and recognition to warrant Opposition No. 91190886 10 a finding of fame, it does establish SEACRETS as a strong mark with significant regional renown which should be accorded a wider scope of protection. Lacoste Alligator S.A. v. Maxoly Inc., 91 USPQ2d 1594, 1597 (TTAB 2009) (“Because of the extreme deference that we accord a famous mark in terms of the wide latitude of legal protection it receives, and the dominant role fame plays in the likelihood of confusion analysis, it is the duty of the party asserting that its mark is famous to clearly prove it”); Leading Jewelers Guild Inc. v. LJOW Holdings LLC, 82 USPQ2d 1901 (TTAB 2007). We now consider the similarity or dissimilarity of the marks when compared in their entireties in terms of appearance, sound, connotation and commercial impression. Palm Bay Imports, Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689, 1692 (Fed. Cir. 2005). The points of similarity between opposer’s mark SEACRETS and applicant’s mark SECRETS LINE are greater than the points of dissimilarity. The dominant portion of applicant’s mark is the first term SECRETS. Applicant has disclaimed the word LINE and the record shows that LINE is merely descriptive of applicant’s hotel related services wherein it “distributes hotel stays of affiliated hotels all Opposition No. 91190886 11 over the world,”6 because it immediately describes a feature of applicant’s services, namely, the provision of a line of hotels.7 Opposer’s mark SEACRETS is phonetically identical to the SECRETS portion of applicant’s mark. The only difference in appearance of the common term is the addition of the letter “A” to opposer’s mark, which merely serves as a play on its location near the ocean. While opposer’s mark, when viewed, has the additional connotation of the “sea,” it retains the connotation of “secrets” which is the same as applicant’s mark SECRETS. We note that opposer presented evidence to support this conclusion. Opposer conducted a study of the visitors to its website and found that 27% of them used the natural spelling “secrets” to locate SEACRETS. Figgs Test. pp. 145-150. The overall commercial impressions of SEACRETS and SECRETS LINE is very similar. Thus, we find the marks to be similar in appearance, sound, connotation and commercial impression and this factor weighs in favor of a likelihood of confusion. 6 Opp. Trial Exh. 143 (Answer to Interrogatory No. 7 wherein applicant defines LINE as “selection or collection of exclusive hotel properties”). 7 Opp. Trial Exhs. 171 (third-party registrations with LINE disclaimed) and 356 (definitions for the word LINE). Opposition No. 91190886 12 We turn then to a consideration of the goods and services, channels of trade and classes of purchasers. We must make our determinations under these factors based on the goods and services as they are recited in the registration and application. See In re Elbaum, 211 USPQ 639 (TTAB 1981). The goods and services need not be identical or directly competitive in order for there to be a likelihood of confusion. Rather, the respective goods and services need only be related in some manner or the conditions surrounding their marketing be such that they could be encountered by the same purchasers under circumstances that could give rise to the mistaken belief that the goods and services come from a common source. In re Martin’s Famous Pastry Shoppe, Inc., 748 F.2d 1565, 223 USPQ 1289 (Fed. Cir. 1984). As noted above, the opposition has been brought against the goods and services in International Classes 16, 35, 39, 41 and 43. It is opposer’s position that applicant’s goods and services are essentially hotel services that also include goods and services commonly associated with hotel, bar and restaurant services. The evidence of record shows that applicant “distributes hotel stays” by advertising and promoting third-party hotels or villas and taking reservations through its website.8 8 App. Trial Exhs. 4 and 5; Opp. Trial Exh. 142. Opposition No. 91190886 13 In addition to its registered restaurant and bar services, opposer provides entertainment and hotel services under the SEACRETS mark. Opposer also uses its SEACRETS mark in connection with a variety of ancillary goods and services relevant to each of the opposed classes. While opposer does not actually publish travel maps and brochures, it sponsors such publications and it places its advertisements in such publications which are distributed in the same channels as applicant’s identified travel maps and brochures in International Class 16. Opposer has for over a decade engaged in cooperative advertising with other companies such as Air Jamaica and Couples Resort and has promoted its own “Gold Card” to promote customer loyalty on its property. These services are similar to the “advertising and promotional campaigns for third parties” and “distribution of prepaid stored value cards for the purpose of promoting and rewarding loyalty” in International Class 35 of the application. With regard to applicant’s International Class 39 services, opposer submitted several third-party use-based registrations that include both restaurant, bar and/or hotel services, and the arranging of various types of transportation services to support a finding that opposer’s restaurant and bar services are related to applicant’s Opposition No. 91190886 14 various travel arranging services.9 Third-party registrations which individually cover the services in issue and are based on use in commerce may serve to suggest that the listed services are of a type which may emanate from a single source. See In re Albert Trostel & Sons Co., 29 USPQ2d 1783 (TTAB 1993). We find the third-party registrations probative on this issue. Moreover, we observe that in 2003, opposer, through a sister company, began offering its travel agency services which include making bookings for transportation.10 As to applicant’s services in International Classes 41 and 43, opposer has used its SEACRETS mark in connection with a multitude of entertainment services (hosting nightly concerts, parties, fireworks, beauty pageants, etc.) and has provided reservation services for its hotel services.11 In view thereof, we find opposer’s restaurant, bar, nightclub, hotel and affiliated services to be related to 9 Opp. Trial Exh. 172 (e.g., Reg. No. 3002499 for making reservations and bookings for transportation, arranging of cruises, hotel, restaurant and bar services; Reg. No. 3182547 for making reservations and bookings for transportation, booking seats for travel and escorting of travelers and restaurant services; Reg. No. 1866988 for arranging of excursions for others and hotel, restaurant and bar services; and Reg. No. 3021969 for travel reservation services, escorting of travelers, hotel and restaurant services) 10 Moore Test. pp. 54-57. 11 While taking reservations for its own hotel would not be registrable as a separate service, it supports the close relationship between the provision of hotel accommodations and a hotel reservation service. Opposition No. 91190886 15 applicant’s goods and services in each of the opposed classes. At a minimum, all of applicant’s goods and services are related to opposer’s restaurant, bar and hotel services as to be likely to cause confusion as to sponsorship. General Mills Inc. v. Fage Dairy Processing Industry SA, 100 USPQ2d 1584, 1594 (TTAB 2011), quoting Hilson Research, Inc. v. Society for Human Resource Management, 27 USPQ2d 1423, 1429 (TTAB 1993) (likelihood of confusion encompasses confusion of sponsorship, affiliation or connection). See also Visa International Service Ass’n v. Visa Hotel Group, Inc., 561 F. Supp. 984, 218 USPQ 261 (D.C.Nev. 1983) (“Although these financial and hotel services are different and noncompetitive, they exist as complementary products in the same general industry, i.e., the travel and entertainment industry, and they are definitely related.”) Moreover, because there are no limitations as to channels of trade or classes of purchasers in the application, we must consider all ordinary channels of trade and classes of purchasers for such goods and services. See Hewlett-Packard Co. v. Packard Press Inc., 281 F.3d 1261, 62 USPQ2d 1001 (Fed. Cir. 2002); Canadian Imperial Bank v. Wells Fargo Bank, 811 F.2d 1490, 1 USPQ2d 1813 (Fed. Cir. 1987); Genesco Inc. v. Martz, 66 USPQ2d 1260, 1268 (TTAB 2003) and In re Smith and Mehaffey, 31 USPQ2d 1531 (TTAB Opposition No. 91190886 16 1994). Thus, applicant’s channels of trade and classes of customers encompass opposer’s presumed and established channels of trade and classes of customers. In view of the above, the du Pont factors of the similarity of the goods and services, the channels of trade and classes of purchasers favor a finding of likelihood of confusion. On balance, the relevant du Pont factors weigh in favor of a likelihood of confusion. In view of the strength of opposer’s mark, the similarity of the marks, the related nature of the goods and services, and the overlap in the channels of trade and classes of customers, we conclude that there is a likelihood of confusion between opposer’s mark SEACRETS and applicant’s standard character mark SECRETS LINE such that registration of applicant’s mark is barred under Trademark Act Section 2(d). As noted above, applicant submitted very limited evidence, did not take any testimony or present any legal argument to rebut opposer’s showing. To the extent there is any doubt, we must resolve that doubt in favor of opposer as the prior user and registrant. Giant Food, Inc. v. Nation’s Foodservice, Inc., Giant Food, Inc. v. Nation’s Foodservice, Inc., 710 F.2d 1565, 218 USPQ 390, 395 (Fed. Cir. 1983). Opposition No. 91190886 17 In view of our decision on opposer’s claim of likelihood of confusion, we do not reach the claim of false suggestion of a connection. Decision: The opposition is sustained as to opposer’s claim of priority and likelihood of confusion under Section 2(d) of the Trademark Act. Registration is refused as to the goods and services in International Classes 16, 35, 39, 41 and 43. The application will proceed to registration in International Classes 36 and 38. Copy with citationCopy as parenthetical citation