SNC Industria de Cosmetics Ltdav.Jalmar AraujoDownload PDFTrademark Trial and Appeal BoardJan 29, 202192072680 (T.T.A.B. Jan. 29, 2021) Copy Citation MW January 29, 2021 Cancellation No. 92072680 SNC Industria de Cosmetics Ltda v. Jalmar Araujo Before Cataldo, Shaw, and Dunn, Administrative Trademark Judges. By the Board: SNC Industria de Cosmetics Ltda (“Petitioner”) seeks cancellation of the registration for the standard character mark KANECHOM for “hair care creams” in International Class 3.1 In the petition for cancellation, Petitioner asserts the following grounds for cancellation: (1) likelihood of confusion based on prior common law use of the mark KANECHOM; (2) lack of use in commerce; (3) fraud based on nonownership of the mark; and (4) misrepresentation of source. 1 TTABVUE. In his answer to the petition, Jalmar Araujo (“Respondent”) denies the salient allegations in the petition and asserts affirmative defenses, including abandonment of Petitioner’s pleaded mark. 4 TTABVUE. 1 Registration No. 5661571 issued on January 22, 2019. The underlying application for registration was filed on July 12, 2018. 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 OPINION IS NOT A PRECEDENT OF THE TTAB Cancellation No. 92072680 2 This proceeding now comes up on Petitioner’s motion, filed August 25, 2020, for partial summary judgment on the likelihood of confusion claim. The motion is fully briefed. The Board also notes Respondent’s request for reconsideration (filed October, 2020) of the Board’s October 6, 2020 order denying his contested motion for a 60 day extension of the discovery period.2 I. The Parties’ Arguments and Evidence3 A. Petitioner’s Arguments and Evidence In support of its motion for summary judgment, Petitioner has submitted, among other items, the Declaration of Ayorton Ricardo Vargas, Director of Petitioner, and exhibits attached thereto.4 Mr. Vargas attests that Petitioner, a company organized in Brazil, has used the mark KANECHOM in United States commerce in connection with hair care creams since at least as early as December 5, 2005.5 Mr. Vargas states that the goods are sold to customers and distributors in the U.S. and online through Amazon.com.6 2 In the October 6, 2020 order, the Board granted Respondent’s contested motion (filed June 12, 2020) to extend the discovery period to the extent the discovery deadline was extended by 30 days. 10 TTABVUE 3. The Board, however, denied Respondent’s motion for a 60 day extension of the discovery period for failure to provide detailed facts showing good cause for the requested extension. We do not construe Respondent’s request for reconsideration as a motion for discovery under Fed. R. Civ. P. 56(d) because, among other reasons, the motion was not filed within thirty days of the date of service of the summary judgment motion. See Trademark Rule 2.127(e)(1), 37 C.F.R. § 2.127(e)(1). 3 The Board has considered the arguments and evidence submitted in connection with the motion, but does not repeat or discuss all of the arguments and submissions, and does not address irrelevant arguments. Guess? IP Holder L.P. v. Knowluxe LLC, 116 USPQ2d 2018, 2019 (TTAB 2015). 4 8 TTABVUE 20-93. 5 Vargas Declaration at ¶ 7, 8 TTABVUE 21. 6 Id. at ¶¶ 8, 10, 8 TTABVUE 21. Cancellation No. 92072680 3 The exhibits introduced by Mr. Vargas include: (i) sales invoices for products sold to Petitioner’s U.S. customers and distributors between 2005 and 2007;7 (ii) bills of lading with “Registry Export (RE) summary … documenting the export and sale of KANECHOM products” to Panamerican Foods Corp. between 2013 and 2016;8 (iii) copies of screenshots from Petitioner’s website advertising KANECHOM hair and body care products;9 (iv) and Respondent’s responses to Petitioner’s first set of interrogatories and requests for admission.10 Petitioner argues that there is no genuine dispute that the subject mark is identical in sound, appearance, and commercial impression to Petitioner’s pleaded mark, and that both parties use the marks on the same type of hair care products. Id. at 13-14. Petitioner also argues that because both parties sell their products to U.S. consumers through online retailers such as Amazon, the parties’ channels of trade are similar. Id. at 14. 7 Exhibits S-1 and S-2 to Vargas Declaration, 8 TTABVUE 25-34. We note that the mark at the top of the invoices is spelled “KANECHOMN.” 8 Vargas Declaration at ¶ 8 and attached Exhibit S-3, 8 TTABVUE 39-45. 9 Exhibit S-4, 8 TTABVUE 50-59. We also note that the web page screenshots are not self- authenticating because they do not include the date the materials were accessed and their source (URL). See Trademark Rule 2.122(e), 37 C.F.R. § 2.122(e). In addition, the materials have not been authenticated by an affidavit or declaration of a person who can properly identify the nature, source and date of the materials. See TRADEMARK TRIAL AND APPEAL BOARD MANUAL OF PROCEDURE (TBMP) § 528.05(e) (2020). However, because Respondent has not objected to the evidence on the basis that it cannot be admissible at trial, we have considered the evidence for the limited probative value of what is shown on the face of the materials. See Fed. R. Civ. P. 56(c)(2) (Advisory Committee notes) (2010 amendment) (allowing a court to consider unauthenticated documents on summary judgment); see also Akers v. Beal Bank, 845 F. Supp. 2d 238, 243 (D.D.C. 2012). 10 8 TTABVUE 131-49. Cancellation No. 92072680 4 With respect to priority, Petitioner argues that in view of its evidence of use and Respondent’s admission that he did not use the subject mark prior to 2016,11 there is no genuine dispute that Petitioner has priority of use of the mark KANECHOM. 8 TTABVUE 10-11. In addition, Petitioner argues that Respondent cannot establish that he is the prior user of the KANECHOM mark because he is “merely reselling products manufactured and owned by Petitioner.” Id. at 11. According to Respondent’s responses to Petitioner’s interrogatories, Respondent purchases its products through Panamerican Foods, one of Petitioner’s distributors.12 As further support, Petitioner submitted the declaration of Michelle Calheiros, managing member of Lunaria LLC, Petitioner’s current North American distributor and retailer, who attests that she purchased a KANECHOM branded product from Respondent’s Amazon account and received a unit of Petitioner’s product that contained Petitioner’s name on one of its old labels.13 B. Respondent’s Arguments In response to the motion, Respondent argues that there is a material dispute of fact as to the similarity or dissimilarity of the marks because Respondent has not received any discovery responses from Petitioner and, thus, “it remains to be seen how the Petitioner uses it marks in US commerce, if at all.” 9 TTABVUE 8. With 11 Respondent’s responses to Petitioner’s Requests for Admission Nos. 35, 37, 46, and 51, 8 TTABVUE 147-48. 12 See Respondent’s Responses to Petitioner’s First Set of Interrogatories Nos. 4, 5, 29 and 30. 8 TTABVUE 133, 37-38. 13 Calheiros Declaration at ¶¶ 1-13, 8 TTABVUE 95-97. Cancellation No. 92072680 5 respect to the similarity of the parties’ goods, Respondent argues that because he has received no evidence from Petitioner showing that it uses its mark in commerce in connection with hair care cream or any other hair care preparations, “it has not been established what goods and services Petitioner provides.” Id. at 9. Respondent proposes similar arguments regarding additional factors in the likelihood of confusion analysis. In essence, Respondent contends that without Petitioner’s responses to Respondent’s discovery requests, genuine disputes of material fact remain regarding the similarity or dissimilarity of the channels of trade, sophistication of the purchasers, the number and nature of similar marks in use on similar goods, and “whether Petitioner has used its mark in commerce as early as claimed, if at all.” Id. at 9-12.14 With respect to Petitioner’s claim that Respondent is merely a reseller of Petitioner’s goods, Respondent argues that “[e]ven if it is assumed that the Registrant does not manufacture the products itself, this does not mean that Registrant has not used the marks within the meaning of the Lanham Act … Registrant still exercises control over the nature and quality of the goods bearing Registrant’s Mark, thus allowing Registrant to acquire a right of ownership to a trademark.” Id. at 13.15 14 Respondent also argues that the motion should be denied because disputes of material fact exist regarding Respondent’s own use of the mark in commerce. 9 TTABVUE 13. Because Petitioner does not seek summary judgment on the nonuse claim, these arguments are not relevant to the instant motion. 15 Respondent has not submitted any evidence to support his statement that he exercises control over the nature and quality of the goods. In fact, the only materials submitted with Respondent’s brief in response to the motion are Respondent’s own responses to Petitioner’s discovery requests, which were already submitted into the record by Petitioner, and communications between the parties regarding discovery. 9 TTABVUE 16-63. Cancellation No. 92072680 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. 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 Cancellation No. 92072680 7 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. Analysis A. Petitioner’s Entitlement to a Statutory Cause of Action Entitlement to a statutory cause of action is a threshold issue in every inter partes proceeding. Australian Therapeutic Supplies Pty. Ltd. v. Naked TM, LLC, 965 F.3d 1370, 2020 USPQ2d 10837 at *3 (Fed. Cir. 2020) (citing Lexmark Int’l, Inc. v. Static Control Components, Inc., 572 U.S. 118, 125-26 (2014)). To establish entitlement to a statutory cause of action under Sections 13 and 14 of the Trademark Act, 15 U.S.C. §§ 1063 and 1064, a plaintiff must demonstrate that cancellation of the registration is within the zone of interests protected by the statute and that plaintiff has a reasonable belief of damage proximately caused by continued registration of the mark. Corcamore, LLC v. SFM, LLC, 978 F.3d 1298, 2020 USPQ2d 11277 at *6-7 (Fed. Cir. 2020); see also Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058 (Fed. Cir. 2014); Coach Servs., Inc. v. Triumph Learning LLC, 668 F.3d 1356, 101 USPQ2d 1713, 1727 (Fed. Cir. 2012).16 Petitioner has established the absence of a genuine dispute as to its entitlement to a cause of action through the declaration, and related exhibits, of Mr. Vargas who 16 Board decisions have previously analyzed the requirements of Sections 13 and 14 of the Trademark Act, 15 U.S.C. §§ 1063-64, under the rubric of “standing.” Despite the change in nomenclature, our prior decisions and those of the Court of Appeals for the Federal Circuit interpreting Sections 13 and 14 remain applicable. See Spanishtown Enters., Inc. v. Transcend Res., Inc., 2020 USPQ2d 11388 at *2 (TTAB 2020) Cancellation No. 92072680 8 attests that Petitioner has sold and continues to sell hair care cream under the mark KANECHOM in the United States and that Respondent’s registered mark is likely to cause confusion. See First Niagara Ins. Brokers Inc. v. First Niagara Fin. Grp. Inc., 476 F.3d 867, 81 USPQ2d 1375, 1378 (Fed. Cir. 2007) (intrastate use by foreign opposer sufficient for standing); Double Coin Holdings Ltd. v. Tru Dev., 2019 USPQ2d 377409, at *4 (TTAB 2019) (standing established by testimony with exhibits of use of confusingly similar mark). In addition, Mr. Vargas’ testimony that its U.S. distributor’s account through Amazon was suspended “due to multiple claims and complaints of infringement and counterfeiting filed by Registrant,” along with the supporting exhibits,17 establish that Petitioner has a reasonable basis for its belief that it is being damaged by the registration and that the belief in damage is proximately caused by Respondent’s registration. Accordingly, there is no genuine dispute that Petitioner has established its entitlement to a statutory cause of action, i.e., to bring this cancellation. B. Likelihood of Confusion Petitioner is entitled to summary judgment if it shows “that there is no genuine dispute as to any material fact” as to its claim of likelihood of confusion under Trademark Act Section 2(d), 15 U.S.C. § 1052(d). Fed. R. Civ. P. 56(a). Consideration of likelihood of confusion in the context of summary judgment is based on an analysis of all of the undisputed facts in evidence that are relevant to the thirteen evidentiary factors set forth in In re E.I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 17 Vargas Declaration at ¶¶ 23, 24 and Exhibit S-8, 8 TTABVUE 70-79. Cancellation No. 92072680 9 563, 567 (CCPA 1973) (“DuPont”). Any of the DuPont factors “may from case to case play a dominant role.” Id. Not all of the DuPont factors are relevant in every case and only those factors for which there is evidence in the record must be considered. Cai v. Diamond Hong, Inc., 901 F.3d 1367, 127 USPQ2d 1797, 1801 (Fed. Cir. 2018). Therefore, we look to whether there are genuine disputes with respect to any of the DuPont factors which would be material to a decision on the merits.18 Here, the declaration testimony of Petitioner’s witnesses and corresponding exhibits showing use of Petitioner’s mark on and in connection with the goods demonstrate Petitioner’s common law use of the mark KANECHOM in connection with hair care creams and other hair care products. Thus, we find that that Petitioner has carried its burden to establish that there is no genuine dispute that its pleaded mark is identical to the subject mark in sight, sound, and commercial impression and that the marks are used on or in connection with the same type of goods, namely, hair care creams.19 With respect to the channels of trade, because there is no limitation in the involved registration to the channels of trade or class of purchasers, Respondent’s goods are presumed to travel in all normal channels of trade and to all prospective purchasers 18 To the extent there are other relevant factors, in the absence of any evidence, we treat them as neutral. Lebanon Seaboard Corp. v. R&R Turf Supply Inc., 101 USPQ2d 1826, 1831 (TTAB 2012) (treating certain DuPont factors as neutral when no evidence provided by the parties). 19 Because the subject mark is presented in standard characters, the mark is not limited to any particular depiction of the mark. Cf. Cunningham v. Laser Golf Corp., 222 F.3d 943, 950, 55 USPQ2d 1842, 1847 (Fed. Cir. 2000) (“Registrations with typed drawings are not limited to any particular rendition of the mark and, in particular, are not limited to the mark as it is used in commerce.”). Cancellation No. 92072680 10 for the relevant goods. Coach Servs., Inc. v. Triumph Learning LLC, 668 F.3d 1356, 101 USPQ2d 1713, 1722 (Fed. Cir. 2012); see also Packard Press, Inc. v. Hewlett- Packard Co., 227 F.3d 1352, 1357 (Fed. Cir. 2000) (“When the registration does not contain limitations describing a particular channel of trade or class of customer, the goods or services are assumed to travel in all normal channels of trade.”). In addition, Petitioner’s witnesses attest that both parties’ products are sold through online retailer Amazon.com.20 In view of the foregoing, we find that there is no genuine dispute that the parties’ goods travel in the same channels of trade and are sold to the same class of purchaser. Turning to the issue of priority, Petitioner must show that there is no genuine dispute that it has established priority through prior common law use of its mark in the United States as a trademark, or prior use analogous to trademark use. See Giersch v. Scripps Networks Inc., 90 USPQ2d 1020, 1023 (TTAB 2009) (in absence of a pleaded registration, petitioner must show prior common law use); see also T.A.B. Sys. v. PacTel Teletrac, 77 F.3d 1372, 37 USPQ2d 1879, 1881 (Fed. Cir. 1996). Oral testimony of a witness may be sufficient to prove first use of a party’s mark when it is based on personal knowledge of the facts and the testimony is clear, convincing, and has not been contradicted. See Kohler Co. v. Baldwin Hardware Corp., 82 USPQ2d 1100, 1108 (TTAB 2007) (oral testimony, if “sufficiently probative,” may be sufficient to prove priority); Nat’l Blank Book Co. v. Leather Crafted Prods., Inc., 218 20 See Vargas Declaration at ¶ 23 and Exhibit S-8, 8 TTABVUE 70-79; Declaration of Michelle Calheiros at ¶¶ 8-13, 8 TTABVUE 96-97. Cancellation No. 92072680 11 USPQ 827, 828 (TTAB 1983); Liqwacon Corp. v. Browning-Ferris Indus., Inc., 203 USPQ 305, 316 (TTAB 1979) (oral testimony may be sufficient to establish both prior use and continuous use when the testimony is proffered by a witness with knowledge of the facts and the testimony is clear, convincing, consistent, and sufficiently circumstantial to convince the Board of its probative value). In his declaration, Mr. Vargas identifies his duties as Director of Petitioner and attests to his personal knowledge of the facts therein. He attests that Petitioner has used the mark KANECHOM for hair care cream in U.S. commerce “since at least as early as December 5, 2005”; he specifically identifies several of Petitioner’s customers and distributors; and he describes and explains the materials submitted in connection with the declaration.21 The declaration testimony of Mr. Vargas is clear, convincing, and has not been contradicted by Respondent. Taken in combination with the supporting materials, we find Petitioner’s testimony sufficient to establish use of its mark in commerce prior to the filing date of the Respondent’s underlying application for registration which, in the absence of actual evidence of use, is the earliest date upon which Respondent may rely. See, e.g., Liqwacon Corp., 203 USPQ at 316 (Board finding witness testimony clear and convincing and probity of documents dependent on the testimony). See also Media Online Inc. v. El Clasificado Inc., 88 USPQ2d 1285, 1288 (TTAB 2008) (respondent may rely on filing date of registration at issue as constructive date of first use).22 21 Vargas Declaration at ¶¶ 7-8. 22 We note that Petitioner’s documentary exhibits alone are insufficient to establish prior use in commerce. Petitioner’s sales invoices display the mark KANECHOMN, as opposed to its Cancellation No. 92072680 12 In view of the foregoing and viewing all evidence in the light most favorable to Respondent as the non-moving party, we find that Petitioner, as the party moving for summary judgment, has carried its burden of demonstrating that there are no genuine disputes of material fact regarding its priority of use and likelihood of confusion. Accordingly, the burden of production shifts to Respondent to demonstrate that a genuine dispute exists for trial. See Celotex Corp. v. Catrett, 477 U.S. at 331 (Brennan, J., dissenting). Respondent, as the non-moving party, must produce countering evidence, as provided in Fed. R. Civ. P. 56(c)(1), showing that there is a factual dispute for trial regarding any of the DuPont factors relevant to this case. See Enbridge, Inc. v. Excelerate Energy L.P., 92 USPQ2d 1537, 1540 (TTAB 2009) (nonmovant must proffer countering evidence to show existence of genuine factual dispute for trial). Despite Respondent’s statement that he “possesses evidence demonstrating that the marks in question are not likely to cause confusion,” 9 TTABVUE 8, Respondent has failed to produce any evidence in response to the motion for summary judgment that would, at a minimum, challenge the sufficiency of the evidence submitted in connection with Petitioner’s motion or raise a genuine dispute of material fact regarding the likelihood of confusion claim. Respondent merely asserts that genuine pleaded mark KANECHOM. In addition, while some of the Registry Export summaries show Petitioner’s pleaded mark, the summaries have little probative value because they are in a non-English language and Petitioner did not submit English translations of the documents. See Swiss Watch Int’l, Inc. v. Fed’n of the Swiss Watch Indus., 101 USPQ2d 1731, 1734 n.8 (TTAB 2012); see also TBMP § 104 (If a translation of a non-English submission is not filed with submission, the Board may not consider the submission). Cancellation No. 92072680 13 disputes of material fact remain because he has not received responses to his discovery requests. To the extent Respondent believed that he could not effectively oppose Petitioner’s motion without first taking discovery, it was incumbent on Respondent to file a motion for additional discovery under Fed. R. Civ. P. 56(d) in response to Petitioner’s motion. In Adickes v. S. H. Kress & Co., the Supreme Court described the failure to proffer any evidence countering a motion for summary judgment or file an affidavit under Rule 56(d) as “perilous for the opposing party.” 398 U.S. 144, 161 (1970) (quoting 6 J. MOORE, FEDERAL PRACTICE 56.22(2) pp. 2824-25 (2d ed. 1966)). A motion for discovery must be supported by an affidavit or declaration showing that the nonmoving party cannot, for reasons stated therein, present facts essential to justify its opposition to the motion. See Fed. R. Civ. P. 56(d); TBMP § 528.06 (2020). The affidavit or declaration must identify the specific facts that discovery would reveal, and explain why those facts would preclude summary judgment. Keebler Co. v. Murray Bakery Prods., 866 F.2d 1386, 9 USPQ2d 1736, 1739 (Fed. Cir. 1989) (“[T]he Rule requires that each request for discovery be adequately supported by a showing of need”). Here, Respondent’s response to the motion is not supported by an affidavit or declaration and Respondent has failed to identify any specific facts that discovery would uncover that would preclude summary judgment. Thus, the Board cannot construe the response as a motion for discovery under Rule 56(d). See Sweats Fashions Inc. v. Pannill Knitting Co., 833 F.2d 1560, 4 USPQ2d 1793, 1799 (Fed. Cir. Cancellation No. 92072680 14 1987) (mere assertion in brief that discovery is necessary is insufficient); see, e.g., Nature’s Way Prods. Inc. v. Nature’s Herbs Inc., 9 USPQ2d 2077, 2081 (TTAB 1989) (Rule 56(f) motion, to the extent it could be construed as such, was not supported by required affidavit); see also J.I. Case Co. v. F.L. Indus., Inc., 229 USPQ 697, 701 (TTAB 1986) (statement by applicant of need to take discovery on validity of assignment was unsupported speculation); see also TBMP § 528.06 (a request for discovery filed in combination with a response on the merits of the summary judgment motion will ordinarily be deemed moot). IV. Decision In view of the foregoing, we find that, based on the record herein, no genuine disputes of material fact remain for trial regarding Petitioner’s likelihood of confusion claim. Accordingly, Petitioner’s motion for partial summary judgment on the claim of likelihood of confusion is GRANTED. Summary judgment is entered on the claim and Registration No. 5661571 will be cancelled in due course. Respondent’s request for reconsideration of the Board’s October 10, 2020 order is, therefore, moot. Copy with citationCopy as parenthetical citation