Solstice Corporationv.Cypris Medical, Inc.Download PDFTrademark Trial and Appeal BoardMay 6, 202091242553 (T.T.A.B. May. 6, 2020) Copy Citation Mailed: May 6, 2020 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Solstice Corporation v. Cypris Medical, Inc. _____ Opposition No. 91242553 _____ Jeffrey C. Joyce of Eaton Peabody PA for Solstice Corporation. Jessica A. Ekhoff of Pattishall, McAuliffe, Newbury, Hilliard & Geraldson LLP for Cypris Medical, Inc. _____ Before Wellington, Kuczma, and Coggins, Administrative Trademark Judges. Opinion by Wellington, Administrative Trademark Judge: Cypris Medical, Inc. (“Applicant”) filed an application to register the standard character mark Xact on the Principal Register for “Medical suturing device and parts and fittings therefor” in International Class 10.1 1 Application Serial No. 87624372, filed September 27, 2017, under Section 1(b) of the Trademark Act, 15 U.S.C. § 1051(b), based on Applicant’s claim of a bona fide intent to use the mark in commerce. This Opinion Is Not a Precedent of the TTAB Opposition No. 91242553 - 2 - Solstice Corporation (“Opposer”) filed a Notice of Opposition against the registration of Applicant’s mark under Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d), based on its registration for the typed mark XACT for “radiopaque markers for use in X-ray photography” in International Class 9.2 Applicant, in its Answer, admits that the marks are identical,3 but denies the other salient allegations in the Notice of Opposition. The parties have briefed the proceeding, including a reply brief filed by Opposer. I. The Record The record includes the pleadings, and, by operation of Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), the file of the subject application. The record also includes: Opposer’s testimony and evidence: 1. Testimony declaration and rebuttal testimony declaration, with exhibits, of Danforth Desena, Opposer’s president.4 2. Notice of Reliance on Applicant’s admission authenticating Applicant’s documents produced in response to discovery; Applicant’s responses to Opposer’s first requests for production (Nos. 1-22); and Applicant’s admission response to Opposer’s request No. 19.5 3. Notice of Reliance on “printed publications.”6 4. Notice of Reliance on “official records,” including a USPTO electronic database (TSDR) printout for Opposer’s pleaded registration.7 2 Registration No. 2124251 issued on December 23, 1997, and has been twice renewed. 3 5 TTABVUE 3 (¶ 12 of Answer). A “typed” mark is the equivalent of a standard character mark. See Trademark Rule 2.52(a), 37 C.F.R. § 2.52(a). 4 9 TTABVUE and 15 TTABVUE (rebuttal testimony declaration). 5 7 TTABVUE and 8 TTABVUE (“Confidential” copy). 6 10 TTABVUE. 7 11 TTABVUE. Opposition No. 91242553 - 3 - Applicant’s testimony and evidence: 1. Trial declaration, with exhibits, of Daniel Holton, Applicant’s co-founder, president and CEO.8 2. Notice of Reliance on copies of third-party registrations for marks containing the terms (E)XACT; printouts from websites to “show . . . there is a crowded field of registrations for XACT marks for goods in the medical industry . . . meaning Solstice’s rights in the XACT mark are weak”; copies of Opposer’s answers to Applicant’s interrogatory Nos. 1, 2, 11, 25-26, 28, and 30-31; copies of documents produced by Opposer in response to Applicant’s production requests and authenticated by Opposer in response to an admission request; and Opposer’s responses to Applicant’s admission requests Nos. 1-2, 4, 8-10, and 14-15.9 II. Standing and Priority Standing is a threshold issue in every inter partes case. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014). To establish standing in an opposition or cancellation proceeding, the plaintiff must prove that it has a “real interest” in the proceeding and a “reasonable” basis for its belief of damage. See Empresa Cubana, 111 USPQ2d at 1062; Ritchie v. Simpson, 170 F.3d 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). Opposer’s pleaded registration, which has been properly made of record,10 establishes its standing. See Empresa Cubana, 111 USPQ2d at 1062; Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000). Moreover, because the registration is valid and unchallenged, priority of use is not an issue with 8 12 TTABVUE. 9 13 TTABVUE and 14 TTABVUE (“Confidential” copy). 10 11 TTABVUE 5-9. Opposition No. 91242553 - 4 - respect to the mark and goods identified in the registration vis-à-vis the involved application. King Candy Co. v. Eunice King’s Kitchen, 496 F.2d 1400, 182 USPQ 108, 110 (CCPA 1974). III. Likelihood of Confusion Our determination under Trademark Act Section 2(d) is based on an analysis of all of the probative facts in evidence that are relevant to the factors bearing on the likelihood of confusion. In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563, 567 (CCPA 1973) (“DuPont”); see also In re Majestic Distilling Co., 315 F.3d 1311, 65 USPQ2d 1201, 1203 (Fed. Cir. 2003). In any likelihood of confusion analysis, two key considerations are the similarities between the marks and the similarities between the goods or services. See In re Chatam Int’l Inc., 380 F.3d 1340, 71 USPQ2d 1944, 1945-46 (Fed. Cir. 2004); Federated Foods, Inc. v. Fort Howard Paper Co., 544 F.2d 1098, 192 USPQ 24, 29 (CCPA 1976) (“The fundamental inquiry mandated by § 2(d) goes to the cumulative effect of differences in the essential characteristics of the goods and differences in the marks.”); see also In re i.am.symbolic, LLC, 866 F.3d 1315, 123 USPQ2d 1744, 1747 (Fed. Cir. 2017) (“The likelihood of confusion analysis considers all DuPont factors for which there is record evidence but ‘may focus … on dispositive factors, such as similarity of the marks and relatedness of the goods’”) (quoting Herbko Int’l, Inc. v. Kappa Books, Inc., 64 USPQ2d 1375, 1380 (Fed. Cir. 2002)). Opposition No. 91242553 - 5 - A. Identity of Marks The first DuPont factor requires consideration of “[t]he similarity or dissimilarity of the marks in their entireties as to appearance, sound, connotation and commercial impression.” DuPont, 177 USPQ at 567. The involved marks are identical and, as noted supra, Applicant admitted this in its Answer. Applicant, in its brief, further acknowledges that the marks are “visually and phonetically the same.”11 The mix of upper and lowercase letters in Applicant’s mark makes no difference because Applicant seeks to register it in standard character format and, as such, it is not limited to any particular font style. See Trademark Rule 2.52(a) (setting forth requirements for standard character mark); see also In re Calphalon Corp., 122 USPQ2d 1153, 1158-61 (TTAB 2017) (applicant’s amendment of mark from SHARPIN to “SharpIn” did not transform mark from standard character to special form). Applicant argues, however, that the term XACT will impart different connotations when viewed in the context of the parties’ respective goods. Specifically, Applicant asserts that its use of XACT is “suggestive of a plastic surgeon’s ability to place a suture in the ‘exact’ location desired, and also, of the way in which the vectors from the pull created by the XACT Suturing Device form an ‘X’ on the patient’s skin.”12 Applicant argues that Opposer’s use of XACT, on the other hand, “does not suggest the way in which a patient’s skin is stretched during the product’s use.”13 11 17 TTABVUE 34. 12 Id., citing to the Holton Dec. ¶ 20 (12 TTABVUE 6). 13 Id. at 35. Opposition No. 91242553 - 6 - The term XACT, itself, will likely be understood as an intentional misspelling of the word “exact.” The record further shows that both parties use the term XACT to help convey a precision quality of the respective goods. That is, Applicant touts its “New Technology – XACT Device . . . allows surgeons to secure tissue in a precise and minimally invasive manner.”14 (Bold in original). Opposer’s goods, radiopaque markers for use in X-ray photography, are placed on and used specifically for identifying various parts of the human body.15 Opposer’s use of XACT on these goods is likely to be interpreted as suggests an ability to identify a precise or “exact” location on the body. Based on the nature and purpose of both parties’ goods, the term has the same possible suggestive meaning, namely, conveying that the respective goods involve precision. Because the marks are identical in appearance and sound, and share the same connotation, this DuPont factor weighs heavily in favor of a finding of likelihood of confusion. B. Alleged Commercial Weakness of the Term XACT Applicant argues that Opposer’s mark is “weak and entitled to limited protection because the record includes 26 third-party XACT and EXACT-formative marks in the medical industry, including six registrations covering goods that are used in medical imaging.”16 In support, Applicant references evidence it submitted comprising “25 third-party registrations and one common law use of XACT and EXACT-formative 14 12 TTABVUE 18. 15 See, e.g., 13 TTABVUE 200-201 (advertisement for Opposer’s goods). 16 Id. at 24. Opposition No. 91242553 - 7 - marks in the medical industry . . ., including six third-party registrations covering goods for use in medical imaging, which are much more closely related to Opposer’s goods than [Applicant’s goods].”17 Applicant, in support of the weakness argument, cites, inter alia, the Federal Circuit decision Jack Wolfskin Ausrustung Fur Draussen GmbH & Co. KGAA v. New Millennium Sports, S.L.U., 797 F.3d 1363, 1373 (Fed. Cir. 2015) and J. THOMAS MCCARTHY, 2 MCCARTHY ON TRADEMARKS AND UNFAIR COMPETITION § 11:85 (5th ed.). As to the third-party registrations, Applicant specifically points to the following ones in its brief:18 Reg. No. Mark Goods/ Services 3372521 XACT Medical devices, namely, stents 3159792 XACT Intraocular lenses for surgical implantation into the eye, and injectors for inserting intraocular lenses into the eye 5778380 XACT LABORATORIES (LABORATORIES disclaimed) Diagnostic laboratory services in the field of precision medicine, excluding diagnostic and screening tests and laboratory services for disease or predisease detection, monitoring or surveillance 4673494 XACTMATCH Medical imaging apparatus and instruments for use in generating a 3D image of at least a portion of a subject 5516461 EXACT IMAGING (IMAGING disclaimed) Medical ultrasound and biopsy apparatus; ultrasound scanners, ultrasound imaging devices, ultrasound machines, ultrasound transducers, ultrasound probes, ultrasound transducer accessories, ultrasound probe accessories, ultrasound consoles, ultrasound biopsy apparatus, all for medical use 17 Id. 18 17 TTABVUE 25-29 (copies made of record at 13 TTABVUE). Although we only list the third-party registrations that Applicant identifies in its brief, we have considered all that were made of record for their full probative value. Opposition No. 91242553 - 8 - Reg. No. Mark Goods/ Services 5516460 EXACTVU [Same owner and goods as the above-listed registration.] 2892318 EXACT Medical apparatus for patient positioning in connection with radiotherapy treatment, patient imaging and diagnosis using scanning devices, and treatment simulation; medical apparatuses for maintaining patient positioning between or among treatment, imaging, diagnostic and simulation systems 3369756 CONEXACT X-ray computed tomography apparatus for medical use 5624828 EXACTRAC Image presenting instruments and apparatus for medical and surgical purposes and for image guided patient positioning and monitoring; intra-operative image guided localization instruments and apparatus The record also includes evidence of a single third-party common law use, consisting of directions for use and ordering forms for a “MAGNA-FINDER® Xact” needle infusion set that is described as an “external locating device contain[ing] rare- earth, permanent magnets for an accurate injection system.”19 A determination regarding the weakness of Opposer’s mark, XACT, essentially involves an analysis that relates to the scope of protection to which this mark is entitled. We consider both conceptual weakness or strength, based on the intrinsic nature of the mark itself, as well as any commercial strength or weakness in the mark. In re Chippendales USA Inc., 622 F.3d 1346, 96 USPQ2d 1681, 1686 (Fed. Cir. 2010) (“A mark’s strength is measured both by its conceptual strength (distinctiveness) and its marketplace strength (secondary meaning).”). We make 19 13 TTABVUE 128-173. Opposition No. 91242553 - 9 - these findings under the fifth DuPont factor involving the “fame” or strength of the prior mark, and under the sixth DuPont factor involving the number and nature of similar marks in use for similar goods or services. DuPont, 177 USPQ at 567. The third-party registered marks that include the terms (E)XACT for various medical devices and services, including those that specifically are in the medical imaging field, help corroborate the previously-discussed suggestive nature of the term. That is, the registrations indicate how this term can be suggestive of a precision quality in the field of medical goods and services. Jack Wolfskin, 116 USPQ2d 1135- 36; Juice Generation, Inc. v. GS Enters. LLC, 794 F.3d 1334, 115 USPQ2d 1671, 1674 (Fed. Cir. 2015). Several of the registrations, either by the additional term in the mark or the nature of the goods and services, make clear that the terms (E)XACT will evoke such a meaning, e.g., XACTMATCH, EXACTVU, and XACT LABORATORIES for services “in the field of precision medicine.” The term is therefore conceptually less distinctive than an otherwise wholly arbitrary term in the context of Opposer’s goods. We do not, however, find the mark is commercially weak because there is no evidence showing excessive third-party use of the terms (E)XACT. Rather, the record reflects only one other entity actually uses the term XACT in commerce in connection with medical goods. There is no evidence showing any of the third-party registered marks are actually in use in commerce or that the public is even familiar with those marks. In re Albert Trostel & Sons Co., 29 USPQ2d 1783, 1785-86 (TTAB 1993) (third- party registrations are not evidence that the marks shown are in commercial use, or Opposition No. 91242553 - 10 - that the public is familiar with them). As Professor McCarthy points out, “merely introducing a list of third party uses alone is not particularly informative or persuasive as to the probable impact of such uses.” MCCARTHY § 11:88. In sum, the term XACT is suggestive of a quality of medical goods that involve precise or “exact” positioning, including Applicant’s and Opposer’s identified goods. This reduces the distinctiveness of the marks which, in turn, reduces the scope of protection accorded to Opposer’s mark. On the other hand, there is no evidence of excessive third-party use of this term or that it is commercially weak. C. Relatedness of the Goods and Trade Channels We now address the DuPont factors involving the similarity or dissimilarity of the involved goods, their trade channels and the classes of purchasers. As to the goods, they need not be identical or even directly competitive for there to be a likelihood of confusion, but the evidence must establish that the goods are related in some manner, or the conditions surrounding their marketing are such, that they could be encountered by the same purchasers under circumstances that could give rise to the mistaken belief that the goods come from a common source. Hewlett-Packard Co. v. Packard Press Inc., 281 F.3d 1261, 62 USPQ2d 1001, 1003-04 (Fed. Cir. 2002). It is also well settled that when making our determinations with respect to the goods, their trade channels, and classes of purchasers, we must look to the goods as they are identified in the application and Opposer’s registration. See Stone Lion Capital Partners, LP v. Lion Capital LLP, 746 F.3d 1317, 1321, 110 USPQ2d 1157, 1161 (Fed. Cir. 2014); Octocom Sys., Inc. v. Houston Comput. Servs., Inc., 918 F.2d Opposition No. 91242553 - 11 - 937, 16 USPQ2d 1783, 1787 (Fed. Cir. 1990). We do not read limitations into the identification of goods. Squirtco v. Tomy Corp., 697 F.2d 1038, 216 USPQ 937, 940 (Fed. Cir. 1983) (“There is no specific limitation and nothing in the inherent nature of Squirtco’s mark or goods that restricts the usage of SQUIRT for balloons to promotion of soft drinks. The Board, thus, improperly read limitations into the registration”). Many of Applicant’s arguments run contrary to the aforementioned principal that we must give full consideration to the goods as they are described in the involved application and registration. Specifically, Applicant argues there is no overlap of trade channels and purchasers of the involved goods because Applicant “only sells its XACT Suturing Device directly to aesthetic plastic surgeons and aesthetic facial plastic surgeons and the surgery centers at which these surgeons operate.”20 Applicant also contends that there is no “overlap between the end-users” of the involved goods and that “due to the sophistication and complexity of the procedures performed using the XACT Suturing Device, Applicant intends to require surgeons to undergo specialized training or perform a set number of procedures under the supervision of a clinical specialist employed by Applicant before they can re-order the device.”21 Applicant’s goods, however, are described in its application as simply “medical suturing device[s] and parts and fittings therefor,” and the types of limitations 20 17 TTABVUE 17, citing Holton Dec. at 12 TTABVUE 5-6 (regarding “Sales and Marketing of the XACT Suturing Device”). 21 Id. at 18. Opposition No. 91242553 - 12 - Applicant seeks to place on the manner in which and to whom these goods are sold are not present in the identification of goods. We must assume that Applicant’s goods will include all types of medical suturing devices and will be sold to the usual classes of purchasers in all normal trade channels for these goods. Although Applicant introduced evidence to support its assertions with respect to its own particular goods, we cannot resort to extrinsic evidence of its and Opposer’s actual uses of their marks to restrict or limit the scope of the identifications of goods. Again, we must “focus on the application and registrations rather than on real-world conditions, because ‘the question of registrability of an applicant’s mark must be decided on the basis of the identification of goods set forth in the application.’” Stone Lion, 110 USPQ2d at 1162 (quoting Octocom Sys., Inc., 16 USPQ2d at 1787). “This is so ‘regardless of what the record may reveal as to the particular nature of an applicant’s goods, the particular channels of trade or the class of purchasers to which sales of the goods are directed.’” Id. (quoting Octocom, 16 USPQ2d at 1787). Opposer, on the other hand, has submitted evidence showing that medical suturing devices may be purchased by the same medical facilities as radiopaque markers for use in X-ray photography. Specifically, Opposer’s witness and President, Danforth Desena, testified that the involved goods are “found in all forms of medical facilities including medical clinics, hospitals, medical imaging centers, out-patient facilities, surgical centers, medical and research laboratories, and private doctors’ offices.”22 Dasena further testified that these types of facilities frequently employ 22 9 TTABVUE 4, 6 (Desena Dec. ¶¶ 13 and 27). Opposition No. 91242553 - 13 - “medical purchasing or procurement specialists” who are “often business-trained individuals who are often employed in a business area quite removed from the clinical setting and generally have little to no communication with the clinicians.”23 These purchasing or procurement specialists may purchase medical supplies through medical supply distributors, including Cardinal Health, Henry Schein Medical, and McKesson Medical-Surgical Inc.24 Printouts from the Henry Schein medical supply distributor indeed show that it offers Opposer’s XACT-branded markers as well as a particular “suturing device” and various suture-related products.25 McKesson likewise offers various suture-related products, including several types of “suturing devices,” and Opposer’s XACT-branded markers.26 Desena also testified that the “end-users of Opposer’s Goods also apply sutures and use medical suturing devices. For example, it is common for masses or lesions to be marked with radiopaque markers and then be operated on by medical professionals who use the markings to identify the surgical targets and later close the surgical site with sutures using some type of medical suturing device.”27 Materials in the record help corroborate this testimony. In particular, Applicant’s own promotional materials tout its XACT-branded goods as “allow[ing] surgeons to simplify suturing” during “breast reconstruction surgery” and that its goods have 23 Id. at 4 (Desena Dec. ¶ 14). 24 Id. at 6 (Desena Dec. ¶¶ 29-30). 25 10 TTABVUE 19-21. 26 Id. at 24-26. 27 9 TTABVUE 6 (Desena Dec. ¶ 31). Opposition No. 91242553 - 14 - other “potential applications” that include additional plastic surgical procedures as well as general surgery.28 Opposer markets its goods as mammography mole, nipple and scar markers.29 This manner of marketing helps substantiate Desena’s testimony that an end-user, such as a plastic surgeon, may use Opposer’s goods to mark a surgical area and a suturing device to close the surgical site. Ultimately, although the parties’ goods are neither competitive with one another nor do they serve the same medical purpose, we find that they are related because they may be marketed through the same trade channels to the same purchasers and be used in connection with the same medical procedures. The record shows that a procurement specialist in charge of ordering supplies for a medium or larger plastic surgery practice would have the need to purchase both suturing devices and mammography radiopaque markers and could encounter both types of goods from the same medical supply distributor. These are circumstances that, when those goods are sold under the same mark, could give rise to the procurement specialist mistakenly believing that they come from the same source. Accordingly, the DuPont factors involving the relatedness of the goods, their trade channels and classes of purchasers favor a finding of confusion being likely. D. Other Factors Argued – Fame of Opposer’s Mark and Actual Confusion Applicant, in its brief, argues that Opposer failed to establish that its mark is famous and that there is no evidence of actual confusion between the parties’ use of 28 11 TTABVUE 49. 29 9 TTABVUE 3-5 (Desena Dec. ¶¶ 8-9, 11, 19, 21); 10 TTABVUE 19. Opposition No. 91242553 - 15 - the same mark, XACT.30 Applicant argues that these factors favor a finding that confusion is not likely. Neither of these arguments help Applicant here show that confusion is not likely. First, we note that Opposer did not argue in its brief that its mark was famous, and, in any event, it is well settled that marks need not be famous in order to be entitled to protection. See Cunningham, 55 USPQ2d 1847. Moreover, in our discussion supra regarding weakness of the term XACT, we have already pointed out that the term is suggestive of a quality of the goods and thus not as distinctive as an arbitrary term. As to Applicant’s contention that there are no known instances of actual confusion between the parties’ marks, there is insufficient evidence for us to gauge whether this assertion, true or not, has any real significance. See Citigroup Inc. v. Capital City Bank Grp., Inc., 94 USPQ2d 1645, 1660 (TTAB 2010), aff’d, 637 F.3d 1344, 98 USPQ2d 1253 (Fed. Cir. 2011) (the absence of any reported instances of confusion is meaningful only if the record indicates appreciable and continuous use by Applicant of its mark for a significant period in the same markets as those served by Opposer under its marks); Gillette Can. Inc. v. Ranir Corp., 23 USPQ2d 1768, 1774 (TTAB 1992). In this case, the involved application is based on a bona fide intent to use the mark in commerce and Applicant acknowledges that it only very recently began to use its mark in commerce. That is, Applicant’s witness Daniel Holton testified that Applicant made a presentation regarding its XACT-branded goods in 2018 and began 30 17 TTABVUE 32-36. Opposition No. 91242553 - 16 - selling its goods on June 4, 2019, during Opposer’s testimony period.31 Given these facts, there has not been a significant opportunity for confusion to occur. Barbara’s Bakery Inc. v. Landesman, 82 USPQ2d 1283, 1287 (TTAB 2007) (the probative value of the absence of actual confusion depends upon there being a significant opportunity for actual confusion to have occurred); Red Carpet Corp. v. Johnstown Am. Enter. Inc., 7 USPQ2d 1404, 1406-1407 (TTAB 1988); Cent. Soya Co., Inc. v. N. Am. Plant Breeders, 212 USPQ 37, 48 (TTAB 1981) (“[T]he absence of actual confusion over a reasonable period of time might well suggest that the likelihood of confusion is only a remote possibility with little probability of occurring.”). Accordingly, the DuPont factors involving the fame of Opposer’s mark and any instances of actual confusion remain neutral in our likelihood of confusion analysis. E. Conclusion Because the marks are identical and the goods may be offered in the same trade channels to the same types of purchasers, namely medical practice procurement specialists, we find that Applicant’s use of the mark XACT for medical suturing devices and parts therefor is likely to cause confusion with Opposer’s registered mark XACT for radiopaque markers for use in x-ray photography. We make this conclusion bearing in mind that the term XACT is suggestive of a quality of those goods and Opposer’s scope of protection for its registered mark is not as expansive as that provided to an arbitrary term. While there are instances where a single DuPont factor is dispositive, that is not the case here, especially given the identity of marks, trade 31 12 TTABVUE 3, 5 (Holton Dec. ¶¶ 10 and 15). Opposition No. 91242553 - 17 - channels and classes of customers. See, e.g., HRL Assoc’s, Inc. v. Weiss Assoc’s, Inc., 12 USPQ2d 1819, 1823 (TTAB 1989), aff’d, 902 F.2d 1546, 14 USPQ2d 1840 (Fed. Cir. 1990) (similarities of goods and marks outweigh sophisticated purchasers, careful purchasing decision, and expensive goods). In sum, we have weighed these factors and find confusion is likely. Decision: The opposition is sustained on the ground of likelihood of confusion. Copy with citationCopy as parenthetical citation