Team Health, Inc.Download PDFTrademark Trial and Appeal BoardMay 17, 2011No. 77737393 (T.T.A.B. May. 17, 2011) Copy Citation Mailed: May 17, 2011 UNITED STATES PATENT AND TRADEMARK OFFICE ________ Trademark Trial and Appeal Board ________ In re Team Health, Inc. ________ Serial No. 77737393 _______ Mark S. Graham of Leudeka, Neely & Graham for Team Health, Inc. Jay C. Besch, Trademark Examining Attorney, Law Office 108 (Andrew Lawrence, Managing Attorney). _______ Before Walters, Bergsman and Wolfson, Administrative Trademark Judges. Opinion by Bergsman, Administrative Trademark Judge: Team Health, Inc. filed a use-based application for the mark HEALTH CARE FINANCIAL SERVICES OF TEAMHEALTH, in standard character form, for the services ultimately identified below. Medical billing services for emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers; medical coding services in the nature of assigning predetermined codes for purposes of identifying medical diagnoses and procedures for emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers; interactive record-keeping services for THIS OPINION IS NOT A PRECEDENT OF THE T.T.A.B. Serial No. 77737393 2 use in risk management and rules/regulation compliance by emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers; business consulting services for emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers; account management services, namely, patient account management services in the nature of medical account receivable services for emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers, in Class 35; and Regulatory compliance consulting in the field of health care for emergency and other physician groups, hospitals and hospital emergency departments, clinics, and health care providers; reviewing standards and practices to assure compliance with health care rules and regulations, in Class 45. Applicant claimed first use of the mark anywhere and in commerce as of October 3, 2005. The Examining Attorney required applicant to disclaim the exclusive right to use the term “Health Care Financial Services” “because it merely describes applicant’s services, namely, providing billing and other financial services for healthcare providers.”1 See Section 6(a) of the Trademark Act of 1946, 15 U.S.C. §1056(a) (“The 1 August 28, 2009 Office Action. Serial No. 77737393 3 Director may require the applicant to disclaim an unregistrable component of a mark otherwise registrable”). In response, applicant argued that when used in connection with the services set forth in the application, the term “Health Care Financial Services” is suggestive. In the alternative, applicant claimed that the term “Health Care Financial Services” had acquired distinctiveness by virtue of applicant’s substantially exclusive and continuous use of the mark since October 3, 2005.2 In a subsequent response, applicant agreed to disclaim the exclusive right to use the terms “Health Care” and “Financial Services,” but not the entire phrase “Health Care Financial Services.”3 The Examining Attorney issued a final requirement that applicant disclaim the entire unitary phrase “Health Care Financial Services” and a final refusal to register the mark under the provisions of Section 2(f) on the ground that applicant failed to establish that the term “Health Care Financial Services” has acquired distinctiveness. The issues on appeal are as follows: 2 Applicant’s January 20, 2010 Response. 3 Applicant’s March 3, 2010 Response. Serial No. 77737393 4 1. Whether the term “Health Care Financial Services” is merely descriptive when used in connection with the services identified in the application?; 2. Whether applicant’s claim of five years substantially and exclusive use of the term “Health Care Financial Services” is sufficient to support a claim of acquired distinctiveness under the provisions of Section 2(f) of the Trademark Act?; and 3. Whether applicant may disclaim the exclusive right to use the individual terms “Health Care” and “Financial Services” rather than the entire phrase “Health Care Financial Services”? Applicant’s specimen of use displays the mark as set forth below and provides the following information: Health Care Financial Services of TeamHealth Overview Wouldn’t you like to collect more of the money your physician practice is legitimately owed, faster? * * * Medical Billing. From enrolling your physicians to preparing patient statements, HCFS provides reliable, full service management of your entire revenue cycle. Our extensive national experience in medical billing, coding and managed care contracting generates the horsepower need to optimize revenue and keep days in A/R below average. Serial No. 77737393 5 Business Intelligence and Reporting. … We leverage the power of technology to bring you a clear, meaningful snapshot of your physician productivity and fiscal health. Coding and Documentation. Poor documentation or coding not only costs you dearly in lost revenue; it places your practice in danger of fines or worse. We train all our client providers to documents properly and all coding is then performed with high accuracy by our trained experienced professionals. Compliance Expertise. … We’ve implemented strategies to meet HIPAA privacy requirements and safeguard all our clients’ information; and our standards-based coding methodology and pre-billing audit programs are second to none. Dedicated Account Management. Your account manager will provide you with timely updates, answer any questions you may have, and look for opportunities to optimize your revenue. In an excerpt from applicant’s website describing the HEALTH CARE FINANCIAL SERVICES OF TEAMHEALTH, applicant states that “we’ve been successfully helping emergency medicine practices create a healthier financial future.”4 The Examining Attorney submitted the following definition of the term “Health Care” from the Yahoo! Education website (yahoo.com):5 4 March 26, 2010 Office Action. 5 Id. Serial No. 77737393 6 Noun: The prevention, treatment, and management of illness and the preservation of mental and physical well-being through the services offered by the medical and allied health professionals. Adjective: Of or relating to health care: the health care industry. The Examining Attorney also submitted the entry for the term “Financial Services” from the Wikipedia website.6 That entry states that “Financial Services refer to services provided by the financial industry” that deal with the management of money. A. Whether HEALTH CARE FINANCIAL SERVICES is merely descriptive? A multiple-class application may be viewed as a group of applications for registration of a mark in connection with goods or services in each class, combined into one application. Each class of goods or services must be considered separately. See G&W Laboratories, Inc. v. G W Pharma Ltd., 89 USPQ2d 1571, 1574 (TTAB 2009) (an applicant for a multiple class application is in the same position it would be had it filed several single-class applications). 6 Id. Serial No. 77737393 7 There is no evidence that the term HEALTH CARE FINANCIAL SERVICES is descriptive when used in connection with the services identified in Class 45 (i.e., regulatory compliance services and reviewing standards and practices to assure compliance with health care rules and regulations). Moreover, the Examining Attorney contends that the term HEALTH CARE FINANCIAL SERVICES is a unitary term.7 In view of the foregoing, the requirement for a disclaimer of the term HEALTH CARE FINANCIAL SERVICES for the services in Class 45 is reversed. Also, the refusal to register the term HEALTH CARE FINANCIAL SERVICES TEAMHEALTH without a showing of acquired distinctiveness for the term HEALTH CARE FINANCIAL SERVICES for the services in Class 45 is reversed. With respect to the services identified in Class 35, the Examining Attorney required applicant to disclaim the exclusive right to use the term “Health Care Financial Services” on the ground that it is merely descriptive. A term is merely descriptive of services within the meaning of Section 2(e)(1) of the Trademark Act of 1946, 15 U.S.C. §1052(e)(1), if it directly conveys an immediate idea of an ingredient, quality, characteristic, feature, function, purpose or use of the goods at issue. In re Abcor 7 Examining Attorney’s Brief, unnumbered pages 5-13. Serial No. 77737393 8 Development Corp., 588 F.2d 811, 200 USPQ 215, 217-218 (CCPA 1978). Whether a term is merely descriptive is not determined in the abstract, but in relation to the services for which registration is sought, the context in which it is being used on or in connection with the services, and the possible significance that the term would have to the average purchaser of the services because of the manner of its use; that a term may have other meanings in different contexts is not controlling. In re Bright-Crest, Ltd., 204 USPQ 591, 593 (TTAB 1979). In other words, the question is not whether someone presented with only the mark could guess what the services are. Rather, the question is whether someone who knows what the services are will immediately understand the mark as directly conveying information about them (i.e., whether someone familiar with applicant’s “account receivable services” or “medical billing services” will understand that the term “Health Care Financial Services” directly conveys information about them). In re Tower Tech Inc., 64 USPQ2d 1314, 1317 (TTAB 2002); In re Patent and Trademark Services, Inc., 49 USPQ2d 1537, 1539 (TTAB 1998). The term HEALTH CARE FINANCIAL SERVICES is composed of two terms, HEALTH CARE and FINANCIAL SERVICES, which when combined maintain their original meanings (i.e., the Serial No. 77737393 9 management of money in the health care industry). When two descriptive terms are combined and each component retains its descriptive significance in connection with the services at issue, the combination is descriptive. In re Petroglyph Games, Inc., 91 USPQ2d 1332, 1341 (TTAB 2009) (BATTLECAM is merely descriptive for computer game software because the combination of the terms “Battle” and “Cam” does not result in a composite that alters the meaning of either term); In re Carlson, 91 USPQ2d 1198, 1200 (TTAB 2009) (URBANHOUZING is merely descriptive of real estate brokerage, real estate consultation and real estate listing services because the compression of the word URBAN HOUSING into a single term, URBANHOUZING, still conveys the commercial impression of two words). See also TMEP §1209.03(d) (7th ed. 2010). The descriptive character of the term HEALTH CARE FINANCIAL SERVICES is so obvious, if not glaring, that prospective clients would recognize it for what it is without any analysis, that is, a designation that describes financial services for the health care industry. It is well settled that the fact that the composite term HEALTH CARE FINANCIAL SERVICES is not found in a dictionary is not controlling on the question of whether a composite mark is merely descriptive. See In re Zanova Serial No. 77737393 10 Inc., 59 USPQ2d 1300, 1305 (TTAB 2001) (ITOOL held merely descriptive of providing custom services for web sites and the design of web sites); In re Orleans Wines, Ltd., 196 USPQ 516, 517 (TTAB 1977) (BREADSPRED held merely descriptive of jellies and jams).8 Applicant argues that the term HEALTH CARE FINANCIAL SERVICES “has an air of incongruity due to the use of ‘health care’ as an adjective for ‘financial services.’”9 We disagree. There is nothing incongruous about the combination of the terms “health care” and “financial services.” In fact, as indicated above, applicant’s website describing HEALTH CARE FINANCIAL SERVICES OF TEAMHEALTH states that “we’ve been successfully helping emergency medicine practices create a healthier financial future.” Thus, applicant uses the term HEALTH CARE 8 Applicant also asserts that “[a] search of the Google database shows that the only results for a search of the wording “Health Care Financial Services” are uses of the wording in Applicant’s mark and in the names of a small handful of other subsequent users of similar marks for their businesses.” (Applicant’s Brief, pp. unnumbered pages 6-7). However, because applicant did not submit the Google search results, they are not of record and we cannot give them any consideration. Nevertheless, even if applicant had submitted the search results, the fact an applicant may be the first and/or only user of a descriptive term does not justify registration if the only significance conveyed by the term is merely descriptive. In re Hunter Fan Co., 78 USPQ2d 1474, 1476 (TTAB 2006). 9 Applicant’s Brief, unnumbered page 7. Serial No. 77737393 11 FINANCIAL SERVICES to describe its medical billing services and accounts receivable services. In view of the foregoing, we find that the term HEALTH CARE FINANCIAL SERVICES when used in connection with the services identified in Class 35 is merely descriptive. B. Whether applicant has established that the term HEALTH CARE FINANCIAL SERVICES has acquired distinctiveness? Applicant, in the alternative, claimed that the term HEALTH CARE FINANCIAL SERVICES had acquired distinctiveness by virtue of its substantially exclusive and continuous use of that term since 2005. The Examining Attorney refused to accept applicant’s claim of acquired distinctiveness based solely on a claim of substantially exclusive and continuous use since 2005 and required additional evidence. Section 2(f) of the Trademark Act, 15 U.S.C. §1052(f), provides that “proof of substantially exclusive and continuous use” of a designation “as a mark by the applicant in commerce for the five years before the date on which the claim of distinctiveness is made” may be accepted as prima facie evidence that the mark has acquired distinctiveness as used with the applicant’s goods or services in commerce. See also 37 C.F.R. §2.41(b). Accordingly, for marks refused registration as being merely descriptive, whether the statement of five years’ Serial No. 77737393 12 use is sufficient in and of itself to establish acquired distinctiveness depends on the degree to which the mark is descriptive. If the mark is highly descriptive of the services named in the application, the statement of five years’ use alone will be deemed insufficient to establish acquired distinctiveness. See In re Gray Inc., 3 USPQ2d 1558, 1559 (TTAB 1987) (“[T]o support registration of PROTECTIVE EQUIPMENT [for burglar and fire alarms and burglar and fire alarm surveillance services] on the Principal Register a showing considerably stronger than a prima facie statement of five years’ substantially exclusive use is required”); In re Quatomatic, Inc., 185 USPQ 59, 60-61 (TTAB 1974) (considering the nature of the term STRIPPERS for treatment of wooden and metallic elements and products in order to remove existing finishes therefrom a declaration of distinctiveness based on use alone is not persuasive); In re Hayes, 154 USPQ 493, 494 (TTAB 1967) (depending on the nature of the mark involved, the mere length of time an applicant may have had exclusive use of the term is not necessarily determinative of its right to register). Cf. In re Synergistics Research Corp., 218 USPQ 165 (TTAB 1983) (applicant’s declaration of five years’ use held sufficient to support registrability under §2(f) of BALL DARTS for equipment sold as a unit for Serial No. 77737393 13 playing a target game, in view of lack of evidence that the term is highly descriptive (e.g., no dictionary evidence of any meaning of BALL DARTS and no evidence of use of the term by competitors or the public)). In view of our finding that the elements of the composite term HEALTH CARE FINANCIAL SERVICES maintain their original meanings (i.e., the management of money in the health care industry) and applicant’s assertion that “a small handful of other subsequent users of similar marks for their businesses,” we find no error in the Examining Attorney requiring applicant to support its claim of acquired distinctiveness with more than a declaration of substantially exclusive and continuous use. Thus, we conclude that applicant has not established that HEALTH CARE FINANCIAL SERVICES has acquired distinctiveness in connection with the identified services in International Class 35. C. Whether applicant may disclaim the exclusive right to use the terms “Health Care” and “Financial Services,” rather than the entire phrase “Health Care Financial Services”? Applicant has disclaimed the exclusive right to use the terms “Health Care” and “Financial Services,” but refuses to disclaim the exclusive right to use the entire term “Health Care Financial Services.” Serial No. 77737393 14 Disclaimers of individual components of complete descriptive phrases are improper. Unitary terms should be disclaimed as a composite. For example, when requiring a disclaimer of terms that form a grammatically or otherwise unitary expression (e.g., “SHOE FACTORY, INC.”), the examining attorney must require that they be disclaimed in their entirety. See, e.g., In re Medical Disposables Co., 25 USPQ2d 1801 (TTAB 1992) (MEDICAL DISPOSABLES is a unitary expression that must be disclaimed as a composite); In re Wanstrath, 7 USPQ2d 1412, 1413 (Comm’r Pats. 1987) (denying petitioner’s request to substitute separate disclaimers of “GLASS” and “TECHNOLOGY” for the disclaimer of “GLASS TECHNOLOGY” in its registration of GT GLASS TECHNOLOGY in stylized form, the Commissioner finding “GLASS TECHNOLOGY” to be a unitary expression and noting, “Disclaimers of individual components of complete descriptive phrases are improper”); American Speech- Language-Hearing Ass’n v. National Hearing Aid Society, 224 USPQ 798, 804 n.3 (TTAB 1984) (“CERTIFIED HEARING AID AUDIOLOGIST” found to be “a unitary expression that should be disclaimed in its entirety”); In re Surelock Mfg. Co., Inc., 125 USPQ 23, 24 (TTAB 1960) (proposed disclaimer of “THE” and “RED” and “CUP” held unacceptable to comply with requirement for disclaimer of “THE RED CUP,” the Board Serial No. 77737393 15 concluding, “A disclaimer of the individual components of the term ‘THE RED CUP,’ under the circumstances, is meaningless and improper”). However, separate disclaimers of adjacent components of a mark may be accepted where they do not form a grammatically or otherwise unitary expression, and each component retains its separate descriptive significance. In re Grass GmbH, 79 USPQ2d 1600 (TTAB 2006) (in the mark SNAP ON 3000 AIRMATIC, the Board reversed requirement for unitary disclaimer of “SNAP ON 3000,” and accepted separate disclaimers of “SNAP ON” and “3000”). Accordingly, our determination in this case depends on whether the term HEALTH CARE FINANCIAL SERVICES is a grammatically or otherwise unitary expression. If so, the requirement for a disclaimer of the entire term is proper. As indicated above, the term HEALTH CARE FINANCIAL SERVICES is merely descriptive because the individual terms HEALTH CARE and FINANCIAL SERVICES retain their descriptive significance when combined into the composite term. Furthermore, the term HEALTH CARE FINANCIAL SERVICES is a grammatically coherent and unitary expression. The term HEALTH CARE modifies the term FINANCIAL SERVICES thereby describing the type of financial services. Under these circumstances, a disclaimer of the components of the Serial No. 77737393 16 descriptive term would be meaningless and improper. In this regard, applicant has impliedly conceded that HEALTH CARE FINANCIAL SERVICES is a unitary term by arguing that “[i]t has an air of incongruity due to the use of ‘health care’ as an adjective for ‘financial services.’”10 Decision: With respect to the services in Class 45, the requirement for a disclaimer of the term HEALTH CARE FINANCIAL SERVICES is reversed and the refusal to register the mark HEALTH CARE FINANCIAL SERVICES OF TEAM HEALTH for failure to establish that the term HEALTH CARE FINANCIAL SERVICES has acquired distinctiveness is reversed. The application in Class 45 will be published for opposition in due course without a disclaimer of the exclusive right to use the term HEALTH CARE FINANCIAL SERVICES or claim of acquired distinctiveness for that term. With respect to the services in Class 35, the refusal to register the mark HEALTH CARE FINANCIAL SERVICES OF TEAMHEALTH for failure to establish the term HEALTH CARE FINANCIAL SERVICES has acquired distinctiveness is affirmed and the requirement for a disclaimer of the unitary term HEALTH CARE FINANCIAL SERVICES is affirmed and, therefore, registration to applicant is refused in Class 35. However, in the event that applicant submits the required disclaimer 10 Applicant’s Brief, unnumbered page 7. Serial No. 77737393 17 within thirty days from the mailing date of this decision, the refusal to register in Class 35 will be set aside and the application will proceed to publication.11 See Trademark Rule 2.142(g). 11 A proper disclaimer would read: "No claim is made to the exclusive right to use Health Care Financial Services apart from the mark as shown." Copy with citationCopy as parenthetical citation