Studio van Goghv.Annie Sloan Interiors, Ltd.Download PDFTrademark Trial and Appeal BoardJun 15, 2015No. 92056853 (T.T.A.B. Jun. 15, 2015) Copy Citation wbc Mailed: June 15, 2015 Opposition No. 91208788 (parent) Annie Sloan Interiors, Ltd. v. Studio van Gogh Cancellation No. 92056853 Studio van Gogh v. Annie Sloan Interiors, Ltd. Before Seeherman, Wellington and Shaw, Administrative Trademark Judges. By the Board: In Cancellation No. 92056853, Studio van Gogh (“SVG”) seeks to cancel Annie Sloan Interiors, Ltd.’s (“ASI”) registration No. 4232734 for the mark CHALK PAINT in standard characters for “paints for arts and crafts; paints for decorative purposes”1 asserting claims of genericness and descriptiveness. In Opposition No. 91208788, ASI opposes SVG’s application Serial No. 95600814 for the mark KATHY VAN GOGH CHALK PAINT COLLECTION in standard characters for “coatings for 1 Registration No. 4232734 issued October 30, 2012. 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 This Decision is not a Precedent of the TTAB Opposition No. 91208788 and Cancellation No. 92056853 2 wood as paints,”2 asserting claims of likelihood of confusion, dilution and lack of bona fide intent to use. This case now comes before the Board on ASI’s motion for summary judgment3 (filed February 10, 2015) based on res judicata or alternatively, licensee estoppel, in Cancellation No. 92056853 only. The motion has been fully briefed. Entry of summary judgment is appropriate only where there are no genuine disputes as to any material facts, thus allowing the case to be resolved as a matter of law. Fed. R. Civ. P. 56(a). A factual dispute is genuine if, on the evidence of record, a reasonable fact finder could resolve the matter in favor of the non-moving party. See Opryland USA Inc. v. Great Am. Music Show Inc., 970 F.2d 847, 23 USPQ2d 1471, 1472 (Fed. Cir. 1992); Olde Tyme Foods, Inc. v. Roundy’s, Inc., 961 F.2d 200, 22 USPQ2d 1542, 1544 (Fed. Cir. 1992). Evidence on summary judgment must be viewed in a light favorable to the non-movant, and all justifiable inferences are to be drawn in the non-movant’s favor. Lloyd’s Food Prods., Inc. v. Eli’s, Inc., 987 F.2d 766, 25 USPQ2d 2027, 2029 (Fed. Cir. 1993); Opryland USA, 23 USPQ2d at 1472. The Board may not resolve genuine disputes as to material facts on 2 Filed April 18, 2012 based on a claim of intent to use under Section 1(b). 3 Although SVG argues that the “issue of licensee estoppel cannot be raised prior to [ASI’s] filing of Initial Disclosures,” the Board notes that the deadline for making initial disclosures was November 22, 2014. Response at p. 4. Because ASI’s motion for summary judgment was filed February 10, 2015 and ASI asserts, in its reply, that it served initial disclosures on August 5, 2013, the motion is timely. See TBMP § 528.02 and cases cited therein. Additionally, with respect to ASI’s claim of res judicata, a party may file its motion for summary judgment based on res judicata even if prior to making its initial disclosures. See Trademark Rule 2.127(e)(1); Zoba Int’l Corp. v. DVD Format/LOGO Licensing Corp., 98 USPQ2d 1106, 1108 n.4 (TTAB 2011). Opposition No. 91208788 and Cancellation No. 92056853 3 summary judgment; it may only ascertain whether genuine disputes as to material facts exist. See Lloyd’s Food Prods., 25 USPQ2d at 2029; Olde Tyme Foods, 22 USPQ2d at 1542. Res Judicata - Claim Preclusion ASI asserts, inter alia, that its Application Serial No. 85408522 was opposed by SVG in Opposition No. 91207306 (the “’306 opposition”), a proceeding which involved the same parties and was based on the same claims, namely, descriptiveness and genericness. Upon motion by ASI to dismiss the ‘306 opposition pursuant to Fed. R. Civ. P. 12(b)(6) alleging that SVG failed to state a claim upon which relief can be granted, the Board dismissed the opposition with prejudice in its March 15, 2015 decision.4 ASI asserts that these undisputed facts establish that this cancellation proceeding is barred by the doctrine of res judicata. In its response to the motion for summary judgment, SVG argues, inter alia, that “there are several different material facts between the two cases, the most glaring of which is the issue of fraud on the part of ASI in their declaration regarding Use in Commerce”; and that the ‘306 opposition was not a decision on the merits. Response at p. 4. Under the doctrine of claim preclusion, “a judgment on the merits in a prior suit bars a second suit involving the same parties or their privies based on the same cause of action.” Jet Inc. v. Sewage Aeration Sys., 55 USPQ2d 1854, 1856 (Fed. Cir. 2000) (quoting Parklane Hosiery Co. v. Shore, 439 U.S. 322, 326 n.5 (1979)). 4 The application then issued as Registration No. 4322847 on April 23, 2013. Opposition No. 91208788 and Cancellation No. 92056853 4 For claim preclusion to apply, therefore, there must be: (1) identity of parties (or their privies); (2) an earlier final judgment on the merits of a claim; and (3) a second claim based on the same set of transactional facts as the first. Id. First Factor – Identity of Parties There is no dispute that the parties involved in the current cancellation and the ‘306 opposition are the same. Second Factor – An Earlier Final Judgment on the Merits of a Claim In its dismissal with prejudice of the ‘306 opposition, the Board granted ASI’s motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6) as conceded. Whether the judgment in a prior proceeding was the result of a dismissal with prejudice or even default, claim preclusion may still apply. See, e.g., Orouba Agrifoods Processing Co. v. United Food Import, 97 USPQ2d 1310 (TTAB 2010) (granting summary judgment to registrant on claim preclusion where petitioner’s opposition had been dismissed with prejudice); La Fara Importing Co. v. F. Lli de Cecco di Filippo Fara S. Martino S.p.a., 8 USPQ2d 1143, 1146 (TTAB 1988) (“Issue preclusion operates only as to issues actually litigated, whereas claim preclusion may operate between the parties simply by virtue of the final judgment.”); Flowers Indus. Inc. v. Interstate Brands Corp., 5 USPQ2d 1580, 1583 (TTAB 1987) (claim preclusion applies “even when the prior judgment resulted from default, consent, or Opposition No. 91208788 and Cancellation No. 92056853 5 dismissal with prejudice”); USOC v. Bata Shoe Co., 225 USPQ 340, 342 (TTAB 1984) (“default judgments generally operate as res judicata”). In view thereof, there can be no dispute that the Board’s dismissal with prejudice for failure to state a claim in the ‘306 opposition was a final judgment which gives rise to claim preclusion. Third Factor – A Second Claim Based on the Same Set of Transactional Facts as the First This case implicates the defensive doctrine of “bar,” wherein the Board must analyze whether a plaintiff can bring a subsequent action against a defendant. See Jet Inc., 55 USPQ2d at 1856 (stating that the doctrine of claim preclusion “has come to incorporate common law concepts of merger and bar, and will thus also bar a second suit raising claims based on the same set of transactional facts”) (citing Migra v. Warren City School Dist. Bd. of Educ., 465 U.S. 75, 77 n.1 (1984)). RESTATEMENT (SECOND) OF JUDGMENTS § 19 (1982) provides that “a valid and final personal judgment rendered in favor of the defendant bars another action by the plaintiff on the same claim.” This bar extends to relitigation of “claims that were raised or could have been raised” in an earlier action. Allen v. McCurry, 449 U.S. 90, 94 (1980) (emphasis added); Migra, 465 U.S. at 77 n.1. Thus, under claim preclusion, a plaintiff is barred from a “subsequent assertion of the same transactional facts in the form of a different cause of action or theory of relief.” Vitaline Corp. v. General Mills Inc., 891 F.2d 273, 13 USPQ2d 1172, 1173 (Fed. Cir. 1989). Opposition No. 91208788 and Cancellation No. 92056853 6 The Court of Appeals for the Federal Circuit has stated that it is guided by the analysis set forth in the Restatement of Judgments in determining whether a plaintiff’s claim in a particular case is barred by claim preclusion. See Jet Inc., 55 USPQ2d at 1856; Chromalloy American Corp. v. Kenneth Gordon (New Orleans), Ltd., 736 F.2d 694, 222 USPQ 187, 189-90 (Fed. Cir. 1984). Section 24 of the Restatement, which addresses splitting claims, provides that: (1) When a valid and final judgment rendered in an action extinguishes the plaintiff's claim pursuant to the rules of merger or bar . . . the claim extinguished includes all rights of the plaintiff to remedies against the defendant with respect to all or any part of the transaction, or series of connected transactions, out of which the action arose. (2) What factual grouping constitutes a “transaction”, and what grouping constitutes a “series”, are to be determined pragmatically, giving weight to such considerations as whether the facts are related in time, space, origin or motivation, whether they form a convenient trial unit, and whether their treatment as a unit conforms to the parties' expectations or business understanding or usage. Furthermore, Section 25 of the Restatement provides that the rule of Section 24 applies to extinguish a claim by the plaintiff against the defendant even though the plaintiff is prepared in the second action (1) To present evidence or grounds or theories of the case not presented in the first action, or (2) To seek remedies or forms of relief not demanded in the first action. To assess whether the claims are based on the same set of transactional facts, comment b to Section 24 of the Restatement considers whether there is a common nucleus of operative facts. As noted, relevant factors include whether the facts are so woven together as to constitute a single claim in their relatedness in time, space, Opposition No. 91208788 and Cancellation No. 92056853 7 origin, or motivation, and whether, taken together, they form a convenient unit for trial purposes. Id. The same comment notes that: Though no single factor is determinative, the relevance of trial convenience makes it appropriate to ask how far the witnesses or proofs in the second action would tend to overlap the witnesses or proofs relevant to the first. If there is a substantial overlap, the second action should ordinarily be held precluded. But the opposite does not hold true; even when there is not a substantial overlap, the second action may be precluded if it stems from the same transaction or series. Id. Courts have defined “transaction” in terms of a “core of operative facts,” the “same operative facts,” or the “same nucleus of operative facts,” and “based on the same, or nearly the same, factual allegations.” Jet Inc., 55 USPQ2d at 1856 (quoting Herrmann v. Cencom Cable Assoc., Inc., 999 F.2d 223, 226 (7th Cir. 1993)); see also United States v. Haytian Rep., 154 U.S. 118, 125 (1894) (“One of the tests laid down for the purpose of determining whether or not the causes of action should have been joined in one suit is whether the evidence necessary to prove one cause of action would establish the other.”). Applying this analysis, we note that SVG, in the ESTTA coversheet5 and body of the complaint in the ‘306 opposition,6 opposed application Serial No. 85408522 for the stylized mark: 5 The ESTTA coversheet is read in conjunction with the notice of opposition as an integral component. See PPG Industries Inc. v. Guardian Industries Corp., 73 USPQ2d 1926, 1928 (TTAB 2005) (“Since ESTTA’s inception, the Board has viewed the ESTTA filing form and any attachments thereto as comprising a single document or paper being filed with the Board”). Here, the ESTTA coversheet also indicates a claim of functionality under Section 2(e)(5) as a ground for opposition. However, the body of the complaint does not specifically address this ground. Opposition No. 91208788 and Cancellation No. 92056853 8 for “house paint; interior paint; paints for arts and crafts” in International Class 2 alleging, inter alia, that “’Chalk’ is far too generic a term to be given exclusive rights to anyone”; that “[c]halk has been used as an ingredient in paint”; and indicating in the ESTTA coversheet that SVG was asserting the grounds of descriptiveness under Section 2(e)(1) and genericness under Section 23. ‘306 Notice of Opposition at p. 1. In the cancellation proceeding7 now before us, SVG seeks to cancel Registration No. 42327348 for the mark CHALK PAINT in standard characters for “paints for arts and crafts; paints for decorative purposes” in International Class 2, indicating in the ESTTA coversheet that it is asserting the grounds of descriptiveness under Section 2(e)(1) and genericness under Section 23 and alleging, inter alia, that “the mark CHALK PAINT is merely descriptive of [ASI’s] products”; that “the term CHALK PAINT is commonly used in the painting and crafting industry to describe an ingredient found in the paint”; and that CHALK PAINT is not entitled to protection because it is generic. Petition to Cancel, ¶¶ 4-9. 6 Filed October 4, 2012. 7 Filed March 4, 2013. 8 The application was filed November 22, 2011 and resulting registration issued October 30, 2012, all during the pendency of the ‘306 opposition. Opposition No. 91208788 and Cancellation No. 92056853 9 Both the ‘306 opposition and the current cancellation involve CHALK PAINT marks. Although the ‘306 opposition involved a slightly stylized version and the present mark is shown in standard characters, the marks create substantially the same commercial impression for purposes of claim preclusion – both marks are for the term CHALK PAINT and the stylized version does not contain a distinctive design and the font is only minimally stylized—unless one were to examine it carefully it would appear to be only block capital letters. See Aromatique, Inc. v. Arthur H. Lang, 25 USPQ2d 1359, 1361 (TTAB 1992); Miller Brewing Co. v. Coy International Corp., 230 USPQ 675, 678 (TTAB 1986); J. I. Case Company v. F.L. Industries, Inc., 229 USPQ 697, 700 (TTAB 1986). Additionally, each proceeding involves the same or highly similar goods in International Class 2; and each proceeding involves claims of descriptiveness and genericness.9 Furthermore, prior to the institution of the ‘306 opposition, ASI filed the application which resulted in Registration No. 4232734, which is the subject of the current proceeding. As noted, during the pendency of the ‘306 opposition, this registration issued to ASI. SVG could have included this application and resulting registration in the ‘306 opposition, but did not. Considering the pleadings in the ‘306 opposition and the instant cancellation, it is clear that SVG’s claims of descriptiveness and genericness are based on the same 9 SVG’s argument that the proceedings involve different transactional facts because of alleged fraud on the part of ASI in its use declaration is unavailing. SVG has neither pled fraud in the petition to cancel nor has it sought to amend the petition to cancel. See Fed. R. Civ. P. 15(a). In view thereof, the Board gives this argument no further consideration. Opposition No. 91208788 and Cancellation No. 92056853 10 set of transactional facts, specifically, whether the terms CHALK PAINT as used by ASI on various types of paint are descriptive or generic. In short, the evidence necessary to prove descriptiveness and genericness in the ‘306 opposition would establish descriptiveness and genericness in the current cancellation. Said another way, the ‘306 opposition and this cancellation are based on the same, or nearly the same, factual allegations. Decision Based on the record before us, we find that there is no genuine dispute as to the facts underlying the allegation of claim preclusion in this case in light of the Board’s March 15, 2015 decision rendered in the ‘306 opposition. ASI’s motion for summary judgment is granted. Judgment is entered against SVG and the petition for Cancellation No. 92056853 is dismissed with prejudice.10 Cancellation No. 92056853 and Opposition No. 91208788 are no longer consolidated. Opposition No. 91208788 is resumed and dates are reset as follows: Expert Disclosures Due 7/6/2015 Discovery Closes 8/5/2015 Plaintiff's Pretrial Disclosures 9/19/2015 Plaintiff's 30-day Trial Period Ends 11/3/2015 Defendant's Pretrial Disclosures 11/18/2015 Defendant's 30-day Trial Period Ends 1/2/2016 Plaintiff's Rebuttal Disclosures 1/17/2016 Plaintiff's 15-day Rebuttal Period Ends 2/16/2016 10 In view of the Board’s order herein, the Board need not and does not reach a decision regarding the claim of licensee estoppel. Opposition No. 91208788 and Cancellation No. 92056853 11 In each instance, a copy of the transcript of testimony together with copies of documentary exhibits, must be served on the adverse party within thirty days after completion of taking of testimony. Trademark Rule 2.125. Briefs shall be filed in accordance with Trademark Rules 2.128(a) and (b). An oral hearing will be set only upon request filed as provided by Trademark Rule 2.129. Copy with citationCopy as parenthetical citation