Threshold Enterprises Ltd.v.Renew Life Formulas, Inc.Download PDFTrademark Trial and Appeal BoardJun 19, 2015No. 91200928 (T.T.A.B. Jun. 19, 2015) Copy Citation Mailed: June 19, 2015 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Threshold Enterprises Ltd. v. Renew Life Formulas, Inc. _____ Opposition No. 91200928 _____ Erica Connolly and Monty Agarwal of Arnold & Porter LLP, for Threshold Enterprises Ltd. James B. Lake, James J. McGuire, and Mark R. Caramanica of Thomas & Locicero PL, for Renew Life Formulas, Inc. _____ Before Wellington, Ritchie, and Kuczma, Administrative Trademark Judges. Opinion by Ritchie, Administrative Trademark Judge: On January 10, 2011, Renew Life Formulas, Inc. (“Applicant”) applied to register ARCTIC NATURALS, in standard character form, for “naturally derived dietary and nutritional supplements,” in International Class 5.”1 On July 28, 2011, Threshold Enterprises, Ltd. (“Opposer”), filed an opposition to the registration of Applicant’s mark on the ground that Applicant’s mark is 1 Application Serial No. 85214143, filed under Section 1(b), and disclaiming the exclusive right to use the term “NATURALS” apart from the mark as shown. THIS OPINION IS NOT A PRECEDENT OF THE T.T.A.B. Opposition No. 91200928 likely to cause confusion with Opposer’s marks. Opposer asserted in its Notice of Opposition, that it owns the mark SOURCE NATURALS in typed drawing format2 for “vitamins, herbs and nutritional supplements,” in International Class 53 and in standard character format for “cosmetics, namely, ointments, gels, creams, lotions, moisturizers, oils, serums, salves and bath oils, all of which are used for the skins,” in International Class 3,4 as well as the mark ARCTICPURE, in standard character format, for “dietary supplements,” in International Class 5.5 Opposer argues that it uses the two marks SOURCE NATURALS and ARCTICPURE conjointly, and as such, Applicant’s mark ARCTIC NATURALS is confusingly similar thereto, or in the alternative that Applicant’s mark is confusingly similar to Opposer’s ARTICPURE mark.6 In its Answer, Applicant denied the salient allegations of the Notice of Opposition. Applicant also asserted various affirmative defenses, including: “Numerous third parties use the term NATURALS or ARCTIC in connection 2 “Prior to November 2, 2003, ‘standard character’ drawings were known as ‘typed’ drawings. The mark on a typed drawing was required to be typed entirely in capital letters. A typed mark is the legal equivalent of a standard character mark.” TMEP § 807.03(i) (January 2015). 3 Registration No. 1909705, registered August 8, 1995. Sections 8 and 15 affidavits accepted and acknowledged. Renewed. 4 Registration No. 3930397, registered March 15, 2011, and disclaiming the exclusive right to use the term “NATURALS” apart from the mark as shown. 5 Registration No. 3203797, registered January 30, 2007. Sections 8 and 15 affidavits accepted and acknowledged. 6 Although the assertion of conjoint use was not expressly pleaded in the Notice of Opposition, it was discussed in the testimony and other documents submitted during the parties’ trial period, and it was argued in substance by both parties on brief. Accordingly, we deem the pleadings amended to assert both bases. Fed. R. Civ. P. 15(b). 2 Opposition No. 91200928 with a wide variety of goods, including goods similar to Threshold’s and Renew Life’s.” (Answer at Affirm. Def. No. 3; 5 TTABVUE 4). Both parties filed briefs, and Opposer filed a reply brief. The Record The record consists of the pleadings; the file of the involved application; and the following evidence submitted by the parties: By Opposer: 1. The testimonial declaration of Barry Sugarman, consultant to Opposer’s President, dated January 19, 2014;7 2. Opposer’s Notice of Reliance on May 22, 2013 discovery depositions for Don Pollo, Applicant’s Chief Financial Officer; and Stan Watson, Applicant’s Chief Executive Officer; 3. Opposer’s Notice of Reliance on April 19, 2013 discovery depositions for Barry Sugarman, Opposer’s Consultant to the President, and Ira Goldberg, Opposer’s Chief Executive Officer; 4. Opposer’s Notice of Reliance on written discovery responses from Applicant; 5. Opposer’s Notice of Reliance on registration documents; 6. Opposer’s Notice of Reliance on official records (Complaint in Renew Life v. Nordic Naturals, Inc., Case No. 12-cv-449 (M.D. Fla)); 7. Opposer’s Notice of Reliance on request for judicial notice (dictionary definitions); 7 The parties filed two stipulations regarding the submission of evidence, on December 12, 2013, and January 21, 2014, in which they agreed that testimony may be introduced “by sworn declaration in lieu of live deposition-subject to objection, as well as to live cross examination” as well as that “discovery depositions of a witness may be offered as testimony.” 38 TTABVUE 3-4. The parties further stipulated that a “party may introduce as evidence, and rely on at trial, document or things [sic] it produced in discovery by Notice of Reliance alone without further evidence of authentication.” 46 TTABVUE 3. 3 Opposition No. 91200928 8. Opposer’s Notice of Reliance on Internet materials; and 9. Opposer’s Notice of Reliance on Applicant’s responses to discovery. By Applicant: 1. Applicant’s Notice of Reliance on documents produced in response to third party subpoenas. 2. Applicant’s Notice of Reliance on discovery responses from Opposer; 3. Applicant’s Notice of Reliance on the prosecution history of the application that issued as 3930397; 4. Applicant’s Notice of Reliance on online publications, parts 1 and 2; 5. Applicant’s Notice of Reliance on the testimony declaration of Stan Watson, Executive Chair of Applicant, dated March 24, 2014; 6. Applicant’s Notice of Reliance on May 22, 2013 discovery depositions of Pollo and Watson; and 7. Applicant’s Notice of Reliance on April 19, 2013 discovery depositions of Sugarman and Goldberg. Priority and Standing Standing is a threshold issue that must be proven in every inter partes case. See Lipton Industries, Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (CCPA 1982) (“The facts regarding standing . . . must be affirmatively proved. Accordingly, [plaintiff] is not entitled to standing solely because of the allegations in its [pleading].”). To establish standing in an opposition, opposer must show both “a real interest in the proceedings as well as a ‘reasonable’ basis for his belief of damage.” See Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023, 1025 (Fed. Cir. 1999). 4 Opposition No. 91200928 Opposer’s witness Barry Sugarman, consultant to the president for twenty years, who oversees trademark matters for Opposer, offered testimony regarding Opposer’s continuing use of the marks SOURCE NATURALS and ARCTICPURE. See Sugarman decl. 49 TTABVUE 3. He further states that ARCTICPURE is used “for fish oil products,” and has been since 2001. Id., and Ex. D (showing the label). The declaration further attests to use of SOURCE NATURALS on dietary supplements, since at least 1987. See Id. at Ex. C. Based on this testimony, we find that Opposer has shown a sufficient basis for standing.8 See Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000). The dates of use attested to by Opposer predate any dates of use claimed by Applicant, which states that it first used the ARCTIC NATURALS mark in or about January 2012. See Appl’s Response to Interrogatory No. 1; See also Watson discovery depo. 62 TTABVUE 77. Applicant argues that Opposer does not have standing in this action, based on a statement made by Barry Sugarman during his discovery deposition, as follows: “And we believe Arctic Naturals isn’t a threat to our 8 Opposer also submitted copies of its pleaded registrations. However, these are not “status and title” copies as required by Trademark Rule 2.122(d), and thus Opposer cannot rely on them to establish its standing or remove priority as an issue with respect to the marks and goods covered by the registrations. No witness testified as to the status and title of the pleaded registrations. 5 Opposition No. 91200928 intellectual property and our business.”9 63 TTABVUE 21. We note, however, that the very next sentence is: We graded it as a higher risk to us in overall impression, in the usage of components of two of our marks. In the way that the style of the bottle is and the way the styles of the mark is and based on what our – how we sell our products. All of those things pointed to us that it would be a higher risk. Id. Furthermore, elsewhere in his discovery deposition, Mr. Sugarman attested to his concerns about Applicant’s use of the ARCTIC NATURALS mark: Q: I guess what I would like to know having gone through these agreements why your company has a problem with Arctic Naturals given that you have permitted other people to use Natural Sources, Natural Source, and and [sic] not objected to anyone using Arctic. A: Well, it’s the overall – the overall case as a whole. Number one, we view the combination of your Arctic mark, Arctic Naturals, as something that would be confusingly similar. We think the trade dress is similar, we think Renewed life is potential threat [sic] into our marketplace and that they would – that there would be a substantial likelihood of confusion with those marks. So we graded it as a much higher risk than anything I have seen today.. . . And the usage of the mark appears to be a direct threat and a higher risk for us of confusion and risk in the marketplace for us. So that’s why we have taken the position that we have taken. Id. at 19. 9 Opposer later filed a “Request for Leave to Correct Errors in Deposition Transcript,”arguing that “Mr. Sugarman either misspoke or his testimony was not properly transcribed.” 81 TTABVUE 4. Given our finding on standing, the request for leave to correctis moot. 6 Opposition No. 91200928 Notwithstanding the one statement by Mr. Sugarman in his deposition, we find that based on the evidence and testimony of record, Opposer has shown a reasonable belief of damage and has established its priority for “fish oil products.” Likelihood of Confusion Our determination under Section 2(d) is based on an analysis of all of the relevant, probative evidence in the record related to a likelihood of confusion. See In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973); see also Palm Bay Imports, Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689 (Fed. Cir. 2005); In re Majestic Distilling Company, Inc., 315 F.3d 1311, 65 USPQ2d 1201 (Fed. Cir. 2003); and In re Dixie Restaurants Inc., 105 F.3d 1405, 41 USPQ2d 1531 (Fed. Cir. 1997). In any likelihood of confusion analysis, two key considerations are the similarities between the marks and the similarities between the goods and services. See Federated Foods, Inc. v. Fort Howard 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.”). We discuss the du Pont factors for which there is relevant argument and evidence. The others we consider to be neutral. 7 Opposition No. 91200928 Conjoint Use of the Marks Opposer argues that in analyzing the similarity or dissimilarity of the marks, “the Board should consider Threshold’s SOURCE NATURALS and ARCTICPURE marks conjointly rather than separately.” 76 TTABVUE 17. In evaluating the propriety of viewing marks conjointly, we look to two key factors: First, whether the marks are “used together on a single product or in marketing;” and second whether they “have been used and/or advertised conjointly in such a manner and to such an extent in connection with a single product that they have come to be associated together, in the minds of the purchasing public, as indications of origin for opposer’s product.” Schering- Plough HealthCare Products Inc. v. Ing-Jing Huang, 84 USPQ2d 1323, 1326 (TTAB 2007) (finding DR. SCHOLL’S and AIRPILLO used conjointly such that DR. PILLO likely to cause confusion). In Schering-Plough, the Board stated that the first element is satisfied where opposer “routinely uses” the two marks together. Id. Opposer has used SOURCE NATURALS since 1982 and ARCTIC PURE since 2001. See Sugarman decl., 49 TTABVUE 3. Mr. Sugarman further attested “From the time that the ARCTICPURE mark was first used until the present, it has never appeared on goods without the SOURCE NATURALS mark also present.” Id. In other testimony, Mr. Sugarman stated that SOURCE NATURALS is the brand name for “an entire product line” while ARCTICPURE is a subline, and also a product.” 42 TTABVUE 13. However, 8 Opposition No. 91200928 as discussed below, there is not evidence of such level of sales and marketing that consumers have been exposed to “routine use” of them together. Accordingly, we do not find the first element to be satisfied. As to the second element, Schering-Plough found it to be satisfied where opposer had undertaken “great expense in advertising the marks together,” noting that the decision was largely based on “the fame of opposer’s marks.” Schering-Plough Healthcare Products Inc. v. Ing-Jing Huang, 84 USPQ2d at 1327. Here, by contrast, we note that while the numbers for SOURCE NATURALS are more significant, we do not find that there has been an extensive amount of advertising or sales for Opposer’s ARCTICPURE.10 Without significant use together, we do not find that Opposer’s marks satisfy the second requirement that they “have been used and/or advertised conjointly in such a manner and to such an extent in connection with a single product that they have come to be associated together, in the minds of the purchasing public, as indications of origin for opposer’s product.” Id. See also Parke, Davis & Co v. The G.F. Harvey Co., 60 USPQ 572 (CCPA 1944) (DIGISEALS similar to opposer’s two marks KAPSEALS and DIGIFORTIS because “opposer was using both well-known marks combined.”); H.D. Hudson Manufacturing Co. v. Food Machinery and Chemical Corp., 230 F.2d 445. 109 USPQ 48 (CCPA 1956) (ROTOMIST not similar to opposer’s ROTO- POWER and MISTY marks because “Here appellant has not used its marks 10 The numbers are in the confidential record. See 44 Conf TTABVUE 28, Ex 6; 50 Conf TTABVUE 2-3, and Ex. H. 9 Opposition No. 91200928 ‘Roto-Power’ and ‘Misty’ combined as one mark”); Sperry Rand Corp. v. Remvac Systems Corp., 172 USPQ 415 (TTAB 1971) (REMVAC found confusingly similar to oppposer’s conjointly used REMINGTON and UNIVAC). Because we find that Opposer has not satisfied the necessary elements, we will not consider the marks conjointly in our analysis, but will proceed on Opposer’s alternative basis, claiming likelihood of confusion as to its ARCTICPURE mark. Goods and Channels of Trade There is no dispute that the goods at issue in this dispute are legally identical, since Opposer has established rights in ARCTICPURE for “fish oil products” and Applicant seeks to register ARCTIC NATURALS for “naturally derived dietary and nutritional supplements,” which encompasses fish oil supplements. As for channels of trade, Opposer has established via testimony that it sells its ARCTICPURE “fish oil products” via various means, including to “Internet customers, Internet retailers” as well as “brick-and-mortar health food stores, health food chain stores” and to “some distributors who sell to practitioners.” 42 TTABVUE 13. Opposer also provided more particular testimony on the confidential record regarding its distribution means. Applicant attests to selling to only one customer, Walgreens. 40 TTABVUE 20. Although it appears that the channels of trade do not currently overlap, 10 Opposition No. 91200928 Applicant’s application is not limited in the potential channels of trade, and could overlap with those identified as being used by Opposer. Accordingly, we find these du Pont factors to weigh strongly in favor of a finding of likelihood of confusion. The ARCTICPURE Mark Initially we note that where the goods are identical or identical-in-part, as they are here, the degree of similarity between the marks which is required to support a finding of likelihood of confusion is less than if the goods were not identical. In re Viterra Inc., 671 F.3d 1358, 101 USPQ2d 1905, 1912 (Fed. Cir. 2012), citing Century 21 Real Estate Corp. v. Century Life of America, 970 F.2d 874, 23 USPQ2d 1698 (Fed. Cir. 1992). In considering the similarity or dissimilarity of the ARCTICPURE mark to Applicant’s ARCTIC NATURALS mark, we consider and compare the appearance, sound, connotation and commercial impression of the marks in their entireties. Palm Bay Imports Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 73 USPQ2d at 1692. In comparing the marks, we are mindful that the test is not whether the marks can be distinguished when subjected to a side-by-side comparison, but rather whether the marks are sufficiently similar in terms of their overall commercial impression that confusion as to the source of the goods offered under the respective marks is likely to result. San Fernando Electric Mfg. Co. v. JFD Electronics Components Corp., 565 F.2d 683, 196 USPQ 1, 3 (CCPA 1977); 11 Opposition No. 91200928 Restaurants Inc. v. Morrison Inc., 23 USPQ2d 1735, 1741 (TTAB 1991), aff’d unpublished, No. 92-1086 (Fed. Cir. June 5, 1992). The proper focus is on the recollection of the average consumer, who retains a general rather than specific impression of the marks. Winnebago Industries, Inc. v. Oliver & Winston, Inc., 207 USPQ 335, 344 (TTAB 1980); Sealed Air Corp. v. Scott Paper Co., 190 USPQ 106, 108 (TTAB 1975). Opposer’s mark is ARCTICPURE and Applicant’s mark is ARCTIC NATURALS. Opposer submitted dictionary definitions of the terms “pure” and “natural” as follows: Pure: not mixed with anything else; clean and not harmful in any way. Merriam-Webster; merriam-webster.com Natural: existing in nature and not made or caused by people: coming from nature; not having any extra substances or chemicals added: not containing anything artificial. Merriam-Webster; merriam-webster.com As explained by Opposer’s Chief Executive Officer, regarding the choice of the name ARCTICPURE, “We—the material we were buying we were told, you know, one of the factories we worked with was in Norway. And the material we were buying was near the Arctic Circle. The fact they told us that they used fish primarily from the Arctic Sea or – Arctic Sea I guess.” Goldberg discovery deposition; 65 TTABVUE 7. Applicant’s Executive Chair similarly stated regarding ARCTIC NATURALS, “those words convey that our product is natural and comes from fish that inhabit cold-water areas, such as the Arctic Ocean.” Decl. Stan Watson 61 TTABVUE 4. As such, we 12 Opposition No. 91200928 find that the marks have similar connotations and commercial impressions of pure or natural fish oil from the Arctic Sea. Applicant argues that the term “ARCTIC” is weak, which we later discuss in the sixth du Pont factor. We find, however, that the similarities in commercial impression clearly outweigh any differences in sight and sound, and this first du Pont factor also weighs in favor of finding a likelihood of confusion. Number and Nature of Third Party Use of Shared Term Applicant argues that consumers will recognize the subtle differences between the marks since there are a number of third-party marks containing the term “ARCTIC” for fish oil products. Applicant’s Executive Chair attested that “The words ARCTIC and NATURALS are commonly used to identify dietary supplements, particularly products that contain fish oil.” 61 TTABVUE 4. Applicant further subpoenaed third parties in this proceeding, and submitted evidence of eight uses of the term “ARCTIC” by third parties for fish oil products.11 These uses include Arctic Essentials from Urban Nutrition, LLC; Arctic Fresh and Arctic Fresh Omega 3 from Mr. David Ruggieri; Arctic Ocean Krill Oil from Natural Biology, Inc.; Arctic Sea and Forever Arctic Sea from Aloe Vera; and Arctic Select Krill Oil from Pro- Health; and Arctic Oils from Xymogen. 11 The parties stipulated that documents obtained in discovery “from a third party in response to a subpoena” may be made of record “by Notice of Reliance alone without further evidence of Authentication.” 38 TTABVUE 3. Although Opposer objected to 13 Opposition No. 91200928 Opposer argues that the submitted uses “do not support that the relevant consuming public has been conditioned to distinguish between close marks.” 76 TTABVUE 31. Notably, Opposer asserts that several of the third parties either don’t sell their products in the same channels of trade or don’t have significant sales. We note, however, that with the possible exception of Arctic Ocean Krill Oil, the uses are not de minimus, and some indicate significant market exposure. Urban Essentials stated that Arctic Essentials has been sold since 2007, in all U.S. states, and that it has a registration for ARCTIC ESSENTIALS, Registration No. 3,360,277. 61 TTABVUE 206-207; 217. Mr. David Ruggieri stated that Arctic Fresh Omega 3 and Arctic Fresh have been used since 2007 in all fifty states, with sales including through the Internet. Id. at 225. Natural Biology stated that Arctic Ocean Krill Oil has been sold under the mark since 2010. Although sales were less than $20,000 for 2011, they were marketed through the Internet. Id. at 242-243. Aloe Vera of America produced documents related to its Arctic Sea and Forever Arctic Sea products. These reflect sales to numerous states around the country, reflecting millions of dollars in sales. Id. at 344-352. The documents also include a registration for ARCTIC-SEA, Registration No. 1,908,108. Id. at 303. Pro-Health stated that it has promoted its Arctic Select Krill Oil since 2010 in twenty-two direct mail catalogs and via amazon.com as well as via search engine optimization and Google pay-per-click advertising in addition the probative weight of the third party evidence, it did not object to their submission into the record. 14 Opposition No. 91200928 to direct consumer emails. Id. at 369. The eighth use, discussed only in the confidential record, notes significant sales of Arctic Oil by Xymogen. While these eight uses demonstrate some weakness of the term “ARCTIC” for fish oil products, there is insufficient evidence of the extent of market exposure of several of the individual products for us to find that the term is widely used for such goods. Furthermore, it remains unclear what share of the fish oil market is possessed by the third-party use. Cf. In re Broadway Chicken Inc., 38 USPQ2d 1559 (TTAB 1996) (finding BROADWAY PIZZA not confusingly similar to BROADWAY BAR & PIZZA where hundreds of third- party uses of shared term). Overall, we find that this sixth du Pont factor weighs slightly against finding a likelihood of confusion. Conditions of Sale Applicant urges us to consider the level of purchasing care likely to be exercised by consumers of dietary supplements and fish oil products. There is conflicting evidence in the record in this regard, with Applicant’s Chief Financial Officer testifying that “Supplement consumers are very discerning consumers” 40 TTABVUE 77, and Opposer’s consultant to the president testifying to a gamut of customers including all levels. (41 Conf TTABVUE 27). Applicant noted in a response to interrogatory that its suggested retail price is as low as $14.99 for its product. Appl’s Response to Interrogatory No. 3. Moreover, it is well-established that even sophisticated consumers are not immune from source confusion. Cunningham v. Laser Golf Corp., 55 USPQ2d 15 Opposition No. 91200928 at 1846. With identical goods and similar marks, even a careful, sophisticated consumer of these goods is not likely to note the differences in the marks. Stone Lion Capital partners, LP v. Lion Capital LLP, 746 F.3d 1317, 110 USPQ2d 1157, 1163 (Fed. Cir. 2014). Accordingly, we find this fourth du Pont factor to be neutral. Actual Confusion and Potential for Confusion The parties discussed the lack of actual confusion and the extent of potential confusion. Applicant argues that there have been no instances of actual confusion. We note, however, that while the presence of confusion may be very useful to our analysis, the lack of evidence of actual confusion carries little weight. J.C. Hall Co. v. Hallmark Cards, Inc., 340 F.2d 960, 144 USPQ 435, 438 (CCPA 1965). This is especially true where, as here, the record is unclear as to the amount of meaningful opportunities for confusion to have occurred among purchasers. Nike Inc. v. WNBA Enters. LLC, 85 USPQ2d 1187, 1202 (TTAB 2007). The parties do not appear to be currently selling to the same consumers. Accordingly, we find these du Pont factors to be neutral. Conclusion We do not analyze Opposer’s SOURCE NATURALS and ARCTICPURE marks conjointly as the requisite elements were not satisfied. In comparing Opposer’s mark ARCTICPURE to applicant’s ARCTIC NATURALS mark, and taking into account all of the arguments and evidence of record as they pertain to the relevant du Pont factors, we conclude that the 16 Opposition No. 91200928 goods are legally identical, and may travel through the same or similar channels of trade. Although the shared term “ARCTIC” is somewhat weak for the goods involved, the marks nonetheless have the same connotation and commercial impression with the similarity of the terms “PURE” and “NATURALS,” that, when considered in their entireties, the marks are similar. In conclusion, we find that there is a likelihood of confusion between the marks. DECISION: The opposition is sustained on the ground of likelihood of confusion with Opposer’s mark ARCTICPURE. 17 Copy with citationCopy as parenthetical citation