TracFone Wireless, Inc.v.Spy Phone Labs LLCDownload PDFTrademark Trial and Appeal BoardAug 16, 2018No. 91218042 (T.T.A.B. Aug. 16, 2018) Copy Citation 1 Mailed: August 16, 2018 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board ———— TracFone Wireless, Inc. v. Spy Phone Labs LLC ___ Opposition No. 91218042 ___ Candice E. Kim and Matthew R. Gershman of Greenberg Traurig, LLP for TracFone Wireless, Inc. Michael A. Freeman of Greenberg Freeman LLP for Spy Phone Labs LLC. ______ Before Lykos, Adlin and Pologeorgis, Administrative Trademark Judges. Opinion by Adlin, Administrative Trademark Judge: Applicant Spy Phone Labs LLC seeks registration on the Principal Register of the mark PHONE TRACKER PRO, in standard characters, with a disclaimer of “PHONE or PRO”, for “computer application software for mobile phones, namely, software for backup of data” in International Class 9.1 In its notice of opposition, Opposer 1 Application Serial No. 85969404, filed June 25, 2013, under Section 1(b) of the Trademark Act, 15 U.S.C. § 1051(b), alleging a bona fide intent to use the mark in commerce. This Opinion is not a Precedent of the TTAB Opposition No. 91218042 2 TracFone Wireless, Inc. alleges prior use and registration of TRACFONE, and variations thereof, for cellular telephones, prepaid cellular telephone services and related goods and services, including smart phone apps. Some of Opposer’s pleaded registrations are over five years old.2 As grounds for opposition, Opposer alleges that use of Applicant’s mark would be likely to cause confusion with Opposer’s previously used and registered TRACFONE marks under Section 2(d) of the Trademark Act; and that use of Applicant’s mark would be likely to dilute Opposer’s TRACFONE marks under Section 43(c) of the Act.3 In its answer, Applicant denies the salient allegations in the notice of opposition, and asserts a number of purported “affirmative defenses” which are in fact merely amplifications of its denials. I. The Record and Evidentiary Objections The record consists of the pleadings and, by operation of Trademark Rule 2.122(b), the file of Applicant’s involved application. In addition, Opposer introduced: 2 Applicant stipulated that Opposer’s pleaded registrations, all of which were properly submitted with the Notice of Opposition under Trademark Rule 2.122(d)(1), are “valid and subsisting.” 18 TTABVUE 9. 3 Opposer also pleaded that use of Applicant’s mark would falsely suggest a connection with Opposer. However, in denying Applicant’s motion for summary judgment, we found this claim insufficiently pleaded. 13 TTABVUE 1 n.2. Opposer did not amend the claim, which has therefore been given no consideration. In the same order, we deemed Opposer’s dilution claim to be amended by consent, and thus sufficient. Id. at 2 n.3 and 10. Citations to the record refer to TTABVUE, the Board’s online docketing system. Specifically, the number preceding “TTABVUE” corresponds to the docket entry number(s), and any number(s) following “TTABVUE” refer to the page number(s) of the docket entry where the cited materials appear. Where cited testimony or evidence has been designated “confidential,” we have cited to the confidential filing, which is inaccessible to the public. Opposition No. 91218042 3 Notice of Reliance (“NOR”) on several of its unpleaded registrations which have been given no consideration;4 and Internet printouts. 15 TTABVUE. NOR on its discovery deposition of Dan Parisi, Applicant’s owner, President and sole member. 16 TTABVUE. Testimony deposition of Maria Lovera, Opposer’s Vice President for Brand Marketing. 18 TTABVUE.5 Applicant introduced: NOR on third-party registrations; and Opposer’s interrogatories and document requests and Applicant’s written responses thereto. 17 TTABVUE.6 Testimony deposition of Dan Parisi, Applicant’s President. 23 TTABVUE. Testimony deposition of Maria Lovera, Opposer’s Associate Vice President of Brank Marketing. 25 TTABVUE.7 Testimony deposition of Marc Mahan, Opposer’s Senior Vice President of Customer Care. 28 TTABVUE.8 4 These registrations issued after Opposer filed its notice of opposition, but before trial. Opposer did not plead the underlying applications in its notice of opposition, nor did it ever amend its notice of opposition to plead ownership of these registrations (or their underlying applications). Opposer may not rely on unpleaded registrations. Herbaceuticals, Inc. v. Xel Herbaceuticals, Inc., 86 USPQ2d 1572, 1576 n.4 (TTAB 2008); Wet Seal Inc. v. FD Mgt. Inc., 82 USPQ2d 1629, 1634 (TTAB 2007). 5 The confidential version of this transcript is at 19 TTABVUE. 6 Typically, discovery responses may only be offered into evidence by the inquiring party. However, we have considered these discovery responses because Opposer has not objected thereto. TRADEMARK TRIAL AND APPEAL BOARD MANUEL OF PROCEDURE (“TBMP”) § 704.10 (June 2018). Moreover, these requests and responses relate to certain objections made during testimony depositions. 7 The confidential version of this transcript is at 26 TTABVUE. 8 The confidential version of this transcript is at 29 TTABVUE. Opposition No. 91218042 4 Portions of the record have been designated confidential pursuant to the parties’ stipulated protective order,9 and have been treated as such. Applicant makes a number of “objections” to Opposer’s evidence which are not true evidentiary objections to the admissibility of evidence, but rather attacks on the cred- ibility of the evidence. For example, Applicant argues that portions of the Lovera tes- timony cited in Opposer’s brief do not support Opposer’s assertions concerning its customer base for TRACFONE products or its use of the TRACFONE marks specifi- cally, but instead address all of Opposer’s brands, in combination. Applicant also “ob- jects” to the timing of certain evidence based on its erroneous belief that Opposer’s evidence of fame of the TRACFONE mark which postdates Applicant’s filing date is “irrelevant.”10 Suffice it to say, we are capable of determining whether and to what extent arguments are supported by the evidence on which they are based. In short, “we 9 Effective June 24, 2016, the Board instituted a revised standard protective order for currently pending inter partes cases. However, insofar as the parties had already designated materials as confidential pursuant to the tiers of confidentiality under their own stipulated protective order (filed May 8, 2015 and approved on May 12, 2015), those designations remain in effect. 10 “For purposes of likelihood of confusion, the Board generally accepts and considers evidence related to likelihood of confusion for the period up to the time of trial, and this includes evidence of the fame of a plaintiff’s mark. This is distinct from a claim of dilution under Section 43(c) of the Trademark Act where an element of the claim is acquisition of fame prior to the defendant’s first use or application filling date.” Inter IKEA Sys. B.V. v. Akea, LLC, 110 USPQ2d 1734, 1740 n.18 (TTAB 2014) (citation omitted). Moreover, while fame prior to a defendant’s priority date is an element of a dilution claim, that does not mean we would not also consider dilution fame evidence through the time of trial, provided that the prerequisite of establishing fame prior to the defendant’s priority date is met. Opposition No. 91218042 5 simply accord the evidence whatever probative value it deserves, if any at all … Ultimately, the Board is capable of weighing the relevance and strength or weakness of the objected-to testimony and evidence in this specific case, including any inherent limitations, and this precludes the need to strike the testimony and evidence.” Hunt Control Sys. Inc. v. Koninkijke Philips Electronics N.V., 98 USPQ2d 1558, 1564 (TTAB 2011); see also Kohler Co. v. Honda Giken Kogyo K.K., 125 USPQ2d 1468, 1478 (TTAB 2017) (quoting Luxco, Inc. v. Consejo Regulador del Tequila, A.C., 121 USPQ2d 1477, 1479 (TTAB 2017)). We have kept Applicant’s “objections” in mind in determining the probative value of Opposer’s evidence.11 II. Relevant Facts Opposer was formed and first used the TRACFONE mark for cell phones and related services in 1996. 18 TTABVUE 11-14 (Lovera Tr. 10-13). It now offers cellular and smart phones and related goods and services, including prepaid “service plans” and apps which customers use to manage their accounts. Id. Opposer offers its products through major retailers such as Walmart, Target, Best Buy and CVS, and online on its own website, Amazon.com, Walmart.com and other sites. Id. Goods sold under Opposer’s TRACFONE mark are offered in over 100,000 retail locations. Id. at 11 During Mr. Parisi’s testimony deposition, Opposer objected to the introduction of certain documents on various grounds, including that the materials were not produced during discovery, but did not preserve the objections in its Trial Brief. They are therefore waived. See e.g. TBMP § 527.01(e). Opposition No. 91218042 6 25 (Lovera Tr. 24). Among Opposer’s pleaded registrations properly made of record are the following: Mark Reg. No./ Issue Date Goods/Services TRACFONE (typed)12 2114692 Nov. 18, 1997 Renewed Class 9: electronic communications equipment, namely, cellular telephones, prepaid airtime cellular telephones and cellular telephone accessories, namely, prepaid airtime debit cards, battery chargers, stands, antennae, voice amplifiers and microphones; computer programs for use in controlling and monitoring prepaid airtime cellular telephone service.13 Class 38: providing cellular telephone services and providing monitoring and control services for use in conjunction with prepaid airtime cellular phones and debit cards. Class 42: wholesale distributorship featuring of cellular telephones, prepaid airtime cellular telephones and prepaid airtime debit cards, and software for controlling and monitoring prepaid airtime cellular service. 12 “[U]ntil 2003, ‘standard character’ marks formerly were known as ‘typed’ marks, but the preferred nomenclature was changed in 2003 to conform to the Madrid Protocol … we do not see anything in the 2003 amendments that substantively alters our interpretation of the scope of such marks.” In re Viterra Inc., 671 F.3d 1358, 101 USPQ2d 1905, 1909 n.2 (Fed. Cir. 2012). 13 As discussed below, we find that this mark, when used for the services in bold type, is closest to Applicant’s mark. Opposition No. 91218042 7 (WIRELESS, INC. disclaimed) 3220091 March 20, 2007 Renewed Class 38: Cellular telephone telecommunications services provided via prepaid air time cellular telephones and prepaid air time cellular telephone calling card services. 3664479 Aug. 4, 2009 Section 8 Affidavit accepted Class 35: Distributorship services featuring cellular telephones, prepaid air time cellular telephones and prepaid air time debit cards, and software for controlling and monitoring prepaid air time cellular services, on-line retail store services featuring cellular telephones, prepaid wireless air time cards, cellular telephone accessories and wireless services. 1 TTABVUE 19-136. As indicated, Applicant stipulated that Opposer’s pleaded registrations are “valid and subsisting.” 18 TTABVUE 9. Opposer has a large customer base, though the specifics are designated as confidential. Id. at 25-26 (Lovera Tr. 24-25). While Ms. Lovera eventually admitted - - but not until Applicant took her testimony deposition -- that only about 25% of Opposer’s customers purchased TRACFONE-branded goods and services, that subpopulation is nonetheless also large. 26 TTABVUE 13-15 (Lovera Tr. 12-14). Opposer’s “main” domain name, which receives approximately 2.8 million hits per month, is “tracfone.com.” 18 TTABVUE 32 (Lovera Tr. 31).14 The “tracfone.com” website is ranked by Quantcast as the 514th most trafficked in the United States, 14 There is no evidence about how many unique customers this “hit count” represents. Opposition No. 91218042 8 immediately behind “npr.org” and immediately ahead of “irs.gov.” Id. at 33 (Lovera Tr. 32); 15 TTABVUE 49-53 (printouts from “quantcast.com”). However, there is no evidence revealing where Opposer’s competitors rank on the list. Opposer has over 100,000 Facebook “likes,” 18 TTABVUE at 34 (Lovera Tr. 33), but again there is no evidence concerning how many “likes” Opposer’s competitors have on Facebook. Opposer was rated first in customer satisfaction among prepaid cell phone providers by Consumer Reports from 2012-2014 and first for best customer experience by JD Powers. Id. at 34-35 (Lovera Tr. 33-34). The Consumer Reports rankings were discussed in articles by NBC News, Yahoo Finance, and others. 15 TTABVUE 20-47 (printouts from multiple websites). The Consumer Reports January 2014 “Smart- Phone Shopping Guide” article references “Prepaid carriers TracFone, Straight Talk, and Net10 (brands of TracFone Wireless, a subsidiary of América Móvil).” Id. at 76- 78 (copy of Consumer Reports article). Opposer advertises nationally, in print (OK, People and AARP magazines), Opposition No. 91218042 9 online (CNN.com, NewYorkTimes.com, Yahoo.com) and television (ABC, NBC, CBS, Fox) and radio (Steve Harvey Morning Show and Pandora). 18 TTABVUE at 26-28 (Lovera Tr. 25-27). Opposer’s advertising expenditures and gross revenues since 2013 are also impressive, but again there is no basis for comparing these figures with those for Opposer’s competitors. These figures are also designated as confidential. Id. at 31- 32 (Lovera Tr. 30-31). While the totals provided cover each of Opposer’s brands, rather than TRACFONE products and services alone, the record reveals that the TRACFONE numbers are also large. Celebrities including Danica Patrick and Vanessa Williams endorse Opposer’s TRACFONE products and services: and Opposer has marketing relationships with the owners of the SpongeBob and Teenage Mutant Ninja Turtles characters. Id. at 35 (Lovera Tr. 34). Opposer offers its “TracFone My Account” app on Google Play and the Apple Store: Opposition No. 91218042 10 Id. at 16-17, 92, 95 (Lovera Tr. 15-16 and Ex. 16). The app “launched” in 2013 and allows Opposer’s customers to “monitor and track their service. They can track their balance. They can track their service due dates or end dates, and they can track their usage.” Id. The TRACFONE mark is displayed in the app. Id. The app allows users to monitor and track multiple accounts; thus, parents may use the app to monitor their children’s accounts and account activities, for example. Id. at 19-20 (Lovera Tr. 18-19). Opposer also offers another app, Transfer Wizard, through which customers “can transfer their contacts information from one phone to another. So it gets stored in the cloud, and then it comes back down onto the phone that they choose to transfer it to.” The app also stores and transfers pictures and other information. Id. at 20-21 (Lovera Tr. 19-20). However, there is no evidence that Opposer uses the TRACFONE mark in Opposition No. 91218042 11 connection with this app.15 See 25 TTABVUE 27-34 (Lovera Tr. 26-33). Opposer licenses the app’s software from a third party. 18 TTABVUE 20 (Lovera Tr. 19). In 2014 and 2015, Opposer offered a parental monitoring app named NQ Family Guardian to its customers at no charge. Id. at 45-46 (Lovera Tr. 44-45). Opposer licensed the app’s software from NQ Family Mobile. Id. The app allows users, often parents tracking their children’s activities, to track locations via GPS, to review texts sent from or received by the phone, and to monitor phone calls and web activities. Id. at 47 (Lovera Tr. 46). Opposer does not use any TRACFONE marks in connection with this app, however. Applicant was formed in 2009 or 2010. 23 TTABVUE 7 (Parisi Tr. 6). It develops and markets apps for “child protection.” 23 TTABVUE 8 (Parisi Tr. 7). Specifically, the PHONE TRACKER PRO app Applicant intends to offer under its involved mark, like the PHONE TRACKER app it currently offers would track telephone calls. It would track GPS, which is the location of where the phone is. It would also check the – phone number and the actual content of the text messages sent on the phone. It would also check the web pages visited on the phone. And we would be taking information off the phone, I think it’s like every thirty minutes from the phone. So it’s, you know, con – constantly 15 Ms. Lovera initially testified that the TRACFONE WIRELESS mark appears in this app. 18 TTABVUE 20 (Lovera Tr. 19). When Applicant took her testimony deposition, however, she modified her testimony, claiming only that Opposer’s trade name “TracFone Wireless, Inc.” appears in the “legal” fine print at the bottom of the Google Play listing for the app. While this is not completely irrelevant, we do not assume that many consumers generally read fine print in contracts or offers for sale, and there is no evidence that TRACFONE is featured more prominently than this in connection with Opposer’s products or services offered under different brands such as STRAIGHT TALK. Opposition No. 91218042 12 being updated. So you would know the location of where your child is at all times. Id. at 9 (Parisi Tr. 8). Currently, Applicant offers its PHONE TRACKER app in what Mr. Parisi referred to as the “Android store,” presumably meaning Google Play and its SPY PHONE app in the Apple store. Id. at 10, 100 (Parisi Tr. 9 and Ex. 1).16 Applicant also offers the PHONE TRACKER app on its website, “phonetracker.com”: 16 The SPY PHONE app is much less robust than the PHONE TRACKER app because the Apple operating system only allows GPS to be tracked rather than texts, website visits, etc. 23 TTABVUE 31 (Parisi Tr. 30). Opposition No. 91218042 13 Id. at 104 (Parisi Tr. Ex. 2). According to Mr. Parisi, Applicant’s attempt to register PHONE TRACKER was unsuccessful: “We were turned down twice by the Trademark Office.” Id. at 11 (Parisi Tr. 10). Applicant is still developing its PHONE TRACKER PRO app, which is intended to be an advanced version of the PHONE TRACKER app which Applicant currently offers. The PHONE TRACKER PRO app would allow more than one phone and user to be “tracked.” Id. at 53-55 (Parisi Tr. 52-54). According to Mr. Parisi, there is no “overlap” between the functions Applicant’s PHONE TRACKER app performs and the functions Opposer’s TRACPHONE My Account app performs. Id. at 41, 45, 51, and 58-59 (Parisi Tr. 40, 44, 50, 57-58). III. Standing and Priority Opposer’s pleaded registrations, 1 TTABVUE 19-136, which Applicant stipulates are “valid and subsisting,” 18 TTABVUE 9, establish Opposer’s standing. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, Opposition No. 91218042 14 1062 (Fed. Cir. 2014); Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000). Because Applicant has not counterclaimed to cancel any of Opposer’s registrations, priority is not at issue with respect to the marks and goods and services identified therein. King Candy Co. v. Eunice King’s Kitchen, Inc., 496 F.2d 1400, 182 USPQ 108, 110 (CCPA 1974). IV. Likelihood of Confusion Our determination under Section 2(d) is based on an analysis of all of the probative evidence of record 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) (setting forth factors to be considered); 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 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.”). Opposer bears the burden of establishing that there is a likelihood of confusion by a preponderance of the evidence. Cunningham, 55 USPQ2d at 1848. We consider the likelihood of confusion factors about which there is evidence or argument, and treat the remaining factors as neutral. Here, we focus on Opposer’s pleaded Registration No. 2114692 for TRACFONE in typed form for, inter alia, “computer programs for use in controlling and monitoring prepaid airtime cellular telephone service.” If we find confusion likely between this Opposition No. 91218042 15 mark and Applicant’s involved mark, we need not consider the likelihood of confusion between Applicant’s mark and Opposer’s other pleaded marks. On the other hand, if we find no likelihood of confusion between Applicant’s mark and the mark in Opposer’s pleaded ‘692 Registration, we would not find confusion likely between Applicant’s mark and Opposer’s other pleaded marks, which are less similar to Applicant’s mark in overall commercial impression. In re Max Capital Grp., 93 USPQ2d 1243, 1245 (TTAB 2010). A. Strength/Fame of Opposer’s Mark The fame of a mark is not “an all-or-nothing measure” when considered in the context of likelihood of confusion. Joseph Phelps Vineyards, LLC v. Fairmont Holdings, LLC, 857 F.3d 1323, 122 USPQ2d 1733, 1734-35 (Fed. Cir. 2017). Rather, likelihood of confusion fame “varies along a spectrum from very strong to very weak.” Palm Bay Imps. Inc., 73 USPQ2d at 1694 (quoting In re Coors Brewing Co., 343 F.3d 1340, 68 USPQ2d 1059, 1063 (Fed. Cir. 2003)). In examining the strength of Opposer’s mark, the applicable viewpoint is that of the relevant market, that is, of consumers of like products. Id. (“[A] mark’s renown within a specific product market is the proper standard.”). The “stronger” or more “well known” a plaintiff’s mark, the greater the likelihood that use or registration for even minimally related products will cause confusion. “The stronger the mark, the more likely it is that encroachment on it will produce confusion.” Champions Golf Club v. Champions Golf Club, 78 F.2d 1111, 38 USPQ2d 1161, 1164 (6th Cir. 1996). As noted by the Seventh Circuit: What is intended by references to “strong” and “weak” marks is the effect of such marks upon the mind of the Opposition No. 91218042 16 consuming public. A mark that is strong because of its fame or uniqueness, is more likely to be remembered and more likely to be associated in the public mind with a greater breadth of products and services than is a mark that is weak because relatively unknown or very like similar marks or very like the name of the product. James Burrough Ltd. v. Sign of Beefeater, Inc., 540 F.2d 266, 192 USPQ 555, 563 (7th Cir. 1976). Similarly, the Restatement observes the following: The distinctiveness or “strength” of a mark measures its capacity to indicate the source of the goods or services with which it is used. The greater the distinctiveness of the mark, the greater the likelihood that prospective purchasers will associate the same or a similar designation found on other goods, services, or businesses with the prior user. “Strong” marks that have a high degree of distinctiveness are thus protected against the use of similar marks on a wider range of goods or services than are “weak” designations that have less distinctiveness or market recognition. RESTATEMENT THIRD, UNFAIR COMPETITION § 21, comment i (1995). See generally, 2 J.T. McCarthy, MCCARTHY ON TRADEMARKS AND UNFAIR COMPETITION, § 11:73 (Author’s Note: (“The Federal Circuit uses the term ‘fame’ instead of ‘strength.’”; § 24:49 (4th ed. June 2017)). Therefore, when an opposer’s mark is exceedingly strong or famous, that “plays a ‘dominant role in the process of balancing the DuPont factors,’ … and ‘[f]amous marks thus enjoy a wide latitude of legal protection.’” Bose Corp. v. QSC Audio Prods., Inc., 293 F.3d 1367, 63 USPQ2d 1303, 1305 (Fed. Cir. 2002) (quoting Recot, Inc. v. Benton, 214 F.3d 1322, 54 USPQ2d 1894, 1897 (Fed. Cir. 2000)). It is settled that a strong mark “casts a long shadow which competitors must avoid.” Kenner Parker Toys, Inc. v. Rose Art Industries, Inc., 963 F.2d 350, 22 USPQ2d 1453, 1456 (Fed. Cir. 1992). Opposition No. 91218042 17 While consumer surveys may provide direct evidence of a mark’s degree of strength, they are not necessary; indeed, they “rarely appear.” Bose, 63 USPQ2d at 1305. In the absence of direct evidence, fame or strength “of a mark may be measured indirectly, among other things, by the volume of sales and advertising expenditures of the goods traveling under the mark, and by the length of time those indicia of commercial awareness have been evident.” Bose, 63 USPQ2d at 1305. Other relevant factors include “length of use of the mark, market share, brand awareness, licensing activities, and variety of goods bearing the mark.” Coach Servs. Inc. v. Triumph Learning LLC, 668 F.3d 1356, 101 USPQ2d 1713, 1720 (Fed. Cir. 2012). Here, while Opposer has designated most of its evidence of fame/strength as “confidential,” and we therefore only discuss it generally, suffice it to say that Opposer has been successful in selling products and services identified in the ‘692 Registration under its pleaded TRACFONE mark since the mark was introduced more than 20 years ago.17 Opposer has advertised these TRACFONE products and services fairly extensively, and, as reflected by its gross revenues, successfully. While only approximately 25% of Opposer’s total customer base purchases goods and services sold under the mark in the ‘692 Registration, that is still a significant number. Nevertheless, “[w]e have no context for opposer’s advertising and sales figures,” or its other evidence of strength/fame, “such as how the figures for [TRACFONE 17 To be clear, we are evaluating the strength/fame of only the TRACFONE mark for the goods and services for which it is used and registered. Thus, we are considering the portion of Opposer’s customer base, advertising and revenues attributable to the TRACFONE mark. Opposition No. 91218042 18 products and services] compare with that for other brands of” cellular phone products and services. Lebanon Seaboard Corp. v. R&R Turf Supply Inc., 101 USPQ2d 1826, 1831 (TTAB 2012); see also Bose, 63 USPQ2d at 1309 (“some context in which to place raw statistics is reasonable”). Moreover, while Opposer has offered additional evidence of the strength of TRACFONE, besides its sales and advertising figures, it is also without context, such as circulation figures for print publications or “hit counts” for websites, and the unsolicited media attention of record consists in large part of a single article reproduced in many national publications or websites. While Opposer’s celebrity endorsements and highly rated products and services indicate a level of renown, there is a lack of specifics about the exact extent of consumer exposure. Accordingly, Opposer has not established that TRACFONE is at the highest possible level of strength/fame. However, Opposer’s evidence easily establishes that TRACFONE is “renowned” in the cellular phone market, and a commercially strong mark which is entitled to a concomitantly broad scope of protection. See Joseph Phelps Vineyards, 122 USPQ2d at 1734-35. This factor therefore weighs in favor of a finding of likelihood of confusion.18 18 Applicant’s argument that TRACFONE is commercially weak due to the alleged “use” of similar marks on similar goods is not well-taken because it is unsupported by the evidence on which it is based. Specifically, the third-party registrations upon which Applicant relies, 17 TTABVUE 7-45, stand alone, unaccompanied by evidence that these marks are actually in use, and accordingly are “not evidence of what happens in the market place or that customers are familiar with them.” AMF Inc. v. American Leisure Prods., Inc., 474 F.2d 1403, 177 USPQ 268, 269 (CCPA 1973). Furthermore, the quantity of third-party registration Opposition No. 91218042 19 B. Similarity of the Marks We consider the marks “in their entireties as to appearance, sound, connotation and commercial impression.” Palm Bay Imps. Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689, 1691 (Fed. Cir. 2005) (quoting du Pont, 177 USPQ at 567). In doing so, we are mindful that “the Lanham Act’s tolerance for similarity between competing marks varies inversely with the fame of the prior mark. As a mark’s fame increases, the Act’s tolerance for similarities in competing marks falls.” Kenner Parker Toys, 22 USPQ2d at 1456. In this case, given the strength of Opposer’s TRACFONE mark, the Act’s tolerance for similarity between the marks is fairly low. Nevertheless, the similarity between the marks is fairly high. In fact, the marks are essentially what we have referred to as “reverse combinations” of the same words or elements or a “transposition” of the most important words comprising the marks. See e.g., In re Wine Society of America Inc., 12 USPQ2d 1139, 1142 (TTAB 1989) (affirming refusal to register THE WINE SOCIETY OF AMERICA & Design based evidence is well below the level that would lead to a finding of weakness. Cf. Jack Wolfskin Ausrustung Fur Draussen GmbH & Co. KGAA v. New Millenium Sports, S.L.U., 797 F.3d 1363, 116 USPQ2d 1129, 1136 (Fed. Cir. 2015); Juice Generation, Inc. v. GS Ents., LLC, 794 F.2d 1334, 115 USPQ2d 1671, 1674 (Fed. Cir. 2015). Perhaps most importantly, none of the registrations include both PHONE (or a variation thereof such as FONE) and TRACK (or a variation thereof such as TRAC), and the goods and services identified in many of the cited third-party registrations are different than those at issue here. See In re i.am.symbolic, LLC, 866 F.3d 1315, 123 USPQ2d 1744, 1751-52 (Fed. Cir. 2017) (“Symbolic has not pointed to any record evidence to support a finding that multiple third parties use the mark I AM for the listed goods in its class 3 and 9 applications.”); In re Inn at St. Johns, LLC, 126 USPQ2d 1742, 1746 (TTAB 2018). Opposition No. 91218042 20 on registration of AMERICAN WINE SOCIETY 1967 & Design, finding that “the transposition of words does not change the overall commercial impression”) and Bank of America National Trust and Savings Ass’n v. The American Nat’l Bank of St. Joseph, 201 USPQ 842, 845 (TTAB 1978) (“the words ‘BANKAMERICA’ and ‘BANK OF AMERICA’, on the one hand, and ‘AMERIBANC’, on the other, convey the same meaning and create substantially similar commercial impressions”). In In re Nationwide Industries, Inc., 6 USPQ2d 1882, 1884 (TTAB 1988), which affirmed the refusal to register RUST BUSTER for rust-penetrating spray lubricant based on the mark BUST RUST for penetrating oil, we held that “the reversal in one mark of the essential elements of another mark may serve as a basis for a finding of no likelihood of confusion only if the transposed marks create distinctly different commercial impressions.” However, where transposed marks do not create different commercial impressions, likelihood of confusion is ordinarily found. See Carlisle Chem. Works, Inc. v. Hardman & Holden, 434 F.2d 1403, 168 USPQ 110 (CCPA 1970) (reversing dismissal of oppositions to registration of COZIRC based on use of ZIRCO for related goods, finding that the marks “are substantially similar, the difference being in a reversal of syllables which are essentially the same”); In re General Tire & Rubber Co., 213 USPQ 870, 871 (TTAB 1982) (affirming refusal to register SPRINT STEEL RADIAL for pneumatic tires based on registration for RADIAL SPRINT for vehicle tires, finding that the marks “convey the same meaning, that is, a steel radial tire called ‘SPRINT’ or a radial tire called ‘SPRINT’ both of which could emanate from the same source”); Plus Prods. v. Physicians Formula Cosmetics, Inc., 198 USPQ 111, 114 Opposition No. 91218042 21 (TTAB 1978) (“… the use of identical terms in inverse order as we have in the present case is likely to cause confusion in trade when used on such closely related cosmetic products”); Fisher Scientific Co. v. Ipco Hospital Supply Corp., 165 USPQ 471, 472 (TTAB 1970) (sustaining opposition to MIX O THERM based on THERMIX used for identical goods, stating “they are in their essentials merely reverse combinations of the same words, and such being the case, would more than likely convey substantially the same commercial impressions”); Royal Crown Cola Co. v. Bakers Franchise, 150 USPQ 698, 700 (TTAB 1966), aff’d, 404 F.2d 985, 160 USPQ 192 (CCPA 1969) (“… the applicant’s compound mark includes the same words which make up opposer’s mark, that is to say ‘RITE DIET’ is merely ‘DIET-RITE’ transposed. The marks of the parties create substantially the same commercial impressions …”). Here, the marks create essentially the same commercial impression because they each contain the terms PHONE (or Opposer’s modified version thereof, FONE) and TRACK/TRACKER (or Opposer’s modified version thereof, TRAC). Thus, they each convey the “tracking” (i.e. the following or monitoring) of phones or phone-related information. While Opposer’s slightly modified spelling of these terms results in its terms appearing slightly different than the correct spellings in Applicant’s mark, Opposer’s modifications do nothing to change the sound or meaning of either term. Nor does Opposer’s “telescoping” of the terms “trac” and “fone” by combining them into a single word change the commercial impression of its mark. See e.g., Stockpot, Inc. v. Stock Pot Rest., Inc., 220 USPQ 52, 54 (TTAB 1983), aff’d, 737 F.2d 1576, 222 USPQ 665 (Fed. Cir. 1984) (finding STOCKPOT and STOCK POT confusingly Opposition No. 91218042 22 similar); In re Best Western Family Steak House, Inc., 222 USPQ 827, 827 (TTAB 1984) (BEEFMASTER and BEEF MASTER found “practically identical”).19 Moreover, the disclaimed word PRO in Applicant’s mark conveys that the app to be offered thereunder is the “professional” version of Applicant’s PHONE TRACKER app, which is already on offer. 16 TTABVUE 14-15 (Parisi Disc. Tr. 41-42) (PHONE TRACKER PRO is intended “to basically be for [tracking] more than five users … It was going to be the enhanced version.”). Given Mr. Parisi’s testimony that PHONE TRACKER PRO will be “the enhanced version,” the disclaimed term “PRO” conveys that the product has extra features, or is intended for a different class of users. It is descriptive (or at best suggestive) and thus entitled to less weight in our analysis. See e.g. Packard Press, Inc. v. Hewlett-Packard Co., 227 F.3d 1352, 56 USPQ2d 1351, 1354 (Fed. Cir. 2000) (“it is proper to give greater weight to the PACKARD portion of the PACKARD TECHNOLOGIES mark on the ground that the word ‘technology’ is highly suggestive/merely descriptive with respect to the services at issue”) and 19 Applicant’s reliance on Citigroup Inc. v. Capital City Bank Grp. Inc., 637 F.3d 1344, 98 USPQ2d 1253 (Fed. Cir. 2011) and Champagne Louis Roederer, S.A. v. Delicato Vineyards, 148 F.3d 1373, 47 USPQ2d 1459 (Fed. Cir. 1998) is misplaced. In Citigroup, there was evidence of widespread third-party use of the terms CITY and BANK in combination, whereas here, as indicated, there is no evidence of third-party use of variations of PHONE and TRACK/TRACKER together, and in Citigroup, the applicant’s mark began with the term CAPITAL, which was absent from the opposer’s marks, whereas here Applicant’s mark begins with PHONE, one of only two components of Opposer’s mark. In Champagne Louis Roederer, CRISTAL and CRYSTAL CREEK “evoked very different images in the minds of relevant consumers: while the former suggested the clarity of the wine within the bottle or the glass of which the bottle itself was made, the latter suggested a ‘very clear (and hence probably remote from civilization) creek or stream.” Champagne Louis Roederer, 47 USPQ2d at 1460. Opposition No. 91218042 23 Pioneer Hi-Bred Corn Co. v. Welp, 280 F.2d 151, 126 USPQ 398, 399 (CCPA 1960) (“‘Hy’ therefore has a suggestive significance, hence is not entitled to as great weight in determining likelihood of confusion as an arbitrary word or syllable.”).20 In fact, it merely highlights that there are multiple apps offered under the PHONE TRACKER mark. See generally In re General Tire, 213 USPQ at 871 (“‘SPRING STEEL RADIAL’ and ‘RADIAL SPRINT’ convey the same meaning, that is, a steel radial tire called ‘SPRINT’ or a radial tire called ‘SPRINT’ both of which could emanate from the same source.”). While we have not ignored the differences in how the marks look and sound, those differences are relatively minor compared to the virtual identity of the marks’ meanings and overall commercial impressions, especially because the marks look and sound different mainly because the terms are merely reversed. The essential terms, phone/fone and tracker/trac, remain the same and look and sound quite similar. Furthermore, the differences resulting from a reversal of the terms in Applicant’s mark become less significant when we consider that consumers generally do not encounter competing marks side-by-side, where their differences become more obvious. That is why the test is not whether marks can be distinguished side-by-side, but rather whether the marks are sufficiently similar in terms of their overall 20 The disclaimer of PRO is essentially an admission that the term is merely descriptive. In re Carlson, 91 USPQ2d 1198, 1200 (TTAB 2009); Bass Pro Trademarks LLC v. Sportsman’s Warehouse, Inc., 89 USPQ2d 1844, 1851 (TTAB 2008). See also Alcatraz Media Inc. v. Chesapeake Marine Tours Inc., 107 USPQ2d 1750, 1762 (TTAB 2013), aff’d mem., 565 Fed. Appx. 900 (Fed. Cir. 2014). Opposition No. 91218042 24 commercial impression that confusion as to the source of the goods offered under the respective marks is likely to result. San Fernando Elec. Mfg. Co. v. JFD Electronics Components Corp., 565 F.2d 683, 196 USPQ 1, 3 (CCPA 1977); Spoons Rests. Inc. v. Morrison Inc., 23 USPQ2d 1735, 1741 (TTAB 1991); Odom Sausage Co., Inc. v. Doskocil Sausage, Inc., 169 USPQ 379, 382 (TTAB 1971). In fact, in this case, where, as Applicant points out, the marks may not be encountered side-by-side, 35 TTABVUE 28-30, “the average person … may well transpose the elements of [the marks] in his mind.” Bank of America, 201 USPQ at 845. Finally, we must consider the marks “in relation to the goods for which registration is sought.” In re Nationwide Industries, 6 USPQ2d at 1883-84. Here, given that Applicant and Registrant both offer smart phone apps which access and manipulate data on smart phones, the marks create similar overall commercial impressions. Id. Accordingly, the similarity of the marks weighs in favor of finding a likelihood of confusion. C. The Goods, Channels of Trade and Classes of Consumers, and the Variety of Goods and Services for Which Opposer’s Mark is Used In arguing that the parties’ goods are unrelated and travel in different channels of trade to different consumers under the second, third and fourth du Pont factors, Applicant points out that its PHONE TRACKER “parental monitoring” and “child protection” app (and its planned PHONE TRACKER PRO app) perform different functions and serve different purposes than Opposer’s TRACFONE “My Account” Opposition No. 91218042 25 app. This is not the correct approach for considering the relationship between the goods, however, for two primary reasons. First, the parties’ goods need not be identical or even competitive in order to find likelihood of confusion. Rather, the question is whether the goods are marketed in a manner that “could give rise to the mistaken belief that [the] goods emanate from the same source.” Coach Servs., 101 USPQ2d at 1722 (quoting 7-Eleven Inc. v. Wechsler, 83 USPQ2d 1715, 1724 (TTAB 2007)); see also Recot, 54 USPQ2d at 1898 (“even if the goods in question are different from, and thus not related to, one another in kind, the same goods can be related in the mind of the consuming public as to the origin of the goods”); Kohler Co. v. Baldwin Hardware Corp., 82 USPQ2d 1100, 1109 (2007). Second, the question is not whether Applicant’s PHONE TRACKER apps in fact perform the same functions or serve the same purposes as Opposer’s apps. The question is instead whether the goods identified in the involved application are related to those identified in Opposer’s ‘692 Registration, or whether consumers could believe the identified goods emanate from the same source. Stone Lion Capital Partners, LP v. Lion Capital LLP, 746 F.3d 1317, 110 USPQ2d 1157, 1162 (Fed. Cir. 2014) (“It was proper, however, for the Board to 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.”) (quoting Octocom Sys., Inc. v. Houston Comp. Servs. Inc., 918 F.2d 937, 16 USPQ2d 1783, 1787 (Fed. Cir. 1990)); In re Jump Designs LLC, 80 USPQ2d 1370, 1374 (TTAB 2006) (unrestricted and broad identifications are Opposition No. 91218042 26 presumed to encompass all goods of the type described). In other words, we must focus on the parties’ identifications of goods regardless of what the record may reveal as to the particular nature of [Applicant’s and Opposer’s goods], the particular channels of trade or the class of purchasers to which sales of the [goods] are directed. Even assuming there is no overlap between [Applicant’s] and [Opposer’s] current customers, the Board correctly declined to look beyond the application and registered marks at issue. An application with ‘no restriction on trade channels’ cannot be ‘narrowed by testimony that the applicant’s use is, in fact, restricted to a particular class of purchasers. Stone Lion, 110 USPQ2d at 1162 (cleaned up) (quoting Octocom, 16 USPQ2d at 1787). This principle is particularly relevant in this case, because Applicant is currently not even offering the PHONE TRACKER PRO app, and, as made clear in Stone Lion, the goods recited in the application determine the scope of the post- grant benefit of registration. “[R]egistration provides the registrant with prima facie evidence of … the registrant's ‘exclusive right’ to use the mark on or in connection with the goods and services specified in the certificate of registration.” U.S. Search LLC v. U.S. Search.com Inc., 300 F.3d 517, 524 [63 USPQ2d 2013] (4th Cir. 2002) (emphasis added); see also 15 U.S.C. § 1115(a) (the registration is prima facie evidence of the registrant’s exclusive right to use the mark “in connection with the goods or services specified in the registration”) …. It would make little sense for the Board to consider only the parties’ current activities when the intent-to-use application, not current use, determines the scope of this post-grant benefit. Parties that choose to recite [goods] in their trademark application that exceed their actual [goods] will be held to the broader scope of the application. See Octocom Sys., 918 F.2d at 943 (stating that a broad application “is not narrowed by testimony that the applicant’s use is, in fact, restricted”) …. Opposition No. 91218042 27 Id. at 1162-63 (some citations omitted). Therefore, in considering whether consumers are likely to be confused about whether the parties’ goods emanate from the same source, we must compare Applicant’s identified “computer application software for mobile phones, namely, software for backup of data” to Opposer’s “computer programs for use in controlling and monitoring prepaid airtime cellular telephone service.” Not only do both parties offer cellular/mobile phone apps, but the apps, as identified, could both be used to manage a customer’s cellular telephones or cellular telephone service. Indeed, to the extent “backup of data” is not a form of controlling cellular telephone service, it is closely related to that function, in that it is another way customers can manage their cellular telephones, their cellular telephone accounts and, in at least a general sense, their cellular telephone service. In other words, as identified, the parties’ apps are both focused not on performing external tasks, such as interacting with a service like Facebook, perusing a news site such as CNN, playing a video game such as Candy Crush or obtaining assistance from a tool such as Google Maps; rather, both parties’ apps are internally-focused on the user’s mobile phone itself and the user’s cellular service account itself. Consumers could very well believe that the source of an account management app might also offer a data backup app. Moreover, Opposer has also offered other apps, albeit under different marks, which are more specifically related to Applicant’s PHONE TRACKER and PHONE TRACKER PRO apps. Indeed, Opposer offers the Transfer Wizard app, which is specifically for “backing up data” (like Applicant’s identified goods) by “storing it in Opposition No. 91218042 28 the cloud” prior to transferring it to a customer’s new phone. Similarly, Opposer recently offered the NQ Family Guardian app, which is specifically for performing the same functions as Applicant’s PHONE TRACKER apps, such as tracking locations via GPS, reviewing texts sent from or received by the phone, and monitoring phone calls and web activities. Consumers familiar with Opposer’s practice of offering other apps even more similar to Applicant’s apps may very well believe, upon encountering Applicant’s app, that it emanates from Opposer, given the similarity of the marks and the additional similarities between Applicant’s PHONE TRACKER apps and Opposer’s Transfer Wizard and NQ Family Guardian apps. While neither Transfer Wizard nor the NQ Family Guardian app are offered under the TRACFONE mark, consumers would nevertheless understand that Opposer offers them, and some could very well be aware that the source of the apps is “Tracfone Wireless, Inc.,” Opposer’s trade name. Even if consumers are not confused by Opposer’s offering of the Transfer Wizard and NQ Family Guardian apps, consumers are nevertheless aware that Opposer’s TRACFONE mark is used for a variety of goods and services in the cellular telephone field (the ninth du Pont factor), including cellular phones, cellular phone accessories, cellular phone services including airtime and at least one TRACFONE cellular phone app. Under these circumstances, it would not be a stretch for them to believe that Opposer is also offering another app for backing up data or monitoring family members, especially given the strength of the TRACFONE mark and the variety of goods and services already offered in connection with that mark. See e.g., Nike Inc. v. Opposition No. 91218042 29 WNBA Enterprises LLC, 85 USPQ2d 1187, 1195 (TTAB 2007) (“The fact that opposer applies its marks to a variety of sports products makes it more likely that purchasers, aware of opposer’s use of the mark on a variety of sports products, when seeing a similar mark used in connection with backpacks, duffel bags and other sports bags, are likely to believe that these products are also being produced or sponsored by opposer.”); Genesco Inc. v. Martz, 66 USPQ2d 1260, 1271 (TTAB 2003) (“this factor may favor a finding that confusion is likely even if the goods are not obviously related”); Uncle Ben’s Inc. v. Stubenberg Int’l Inc., 47 USPQ2d 1310, 1313 (TTAB 1998) (“Section 2(d) of the Trademark Act also covers situations where the public, because of the similarity of the marks, is likely to believe that a recognizably different product, because of the similarity of the marks, emanates from, or is authorized, sponsored or licensed by the prior user or registrant.”). As for the channels of trade and classes of consumers, Applicant’s currently available PHONE TRACKER app is available on Google Play (and Applicant’s website). 23 TTABVUE 10, 100 (Parisi Tr. 9 and Ex. 1). Opposer’s TRACFONE My Account app is also available on Google Play (and the Apple Store). 18 TTABVUE 16- 17, 92, 95 (Lovera Tr. 15-16 and Exs. 16, 17). Applicant intends for its PHONE TRACKER PRO app to also be available on Google Play (and Applicant’s website). 23 TTABVUE 59-60 (Parisi Tr. 58-59). It is clear from the record that Google Play is the primary channel of trade for Android apps, and Opposer’s TRACFONE My Account and Applicant’s PHONE TRACKER PRO app will both be offered for sale there. In any event, neither party’s identification of goods contain any limitations regarding Opposition No. 91218042 30 channels of trade or classes of consumers, and we therefore must presume that the goods will travel through all normal channels of trade for mobile phone apps, which include Google Play (and the Internet). In re Jump Designs, 80 USPQ2d at 1374; In re Elbaum, 211 USPQ 639, 640 (TTAB 1981); see also Stone Lion, 110 USPQ2d at 1162 (“An application with ‘no restriction on trade channels’ cannot be ‘narrowed by testimony that the applicant’s use is, in fact, restricted to a particular class of purchasers.”); Citigroup Inc., 98 USPQ2d at 1261. Because consumers would be likely to believe that the apps emanate from the same source, and the channels of trade and classes of consumers for the parties’ apps overlap, these factors also weigh in favor of finding a likelihood of confusion. D. Absence of Actual Confusion Applicant’s reliance on the lack of actual confusion is misplaced, because Applicant has not used its involved mark, and while it has used PHONE TRACKER, there is no evidence that would allow us to assess the extent to which there has been a meaningful opportunity for confusion to occur if it were likely to occur. See Nina Ricci S.A.R.L. v. E.T.F. Enters. Inc., 889 F.2d 1070, 12 USPQ2d 1901, 1903 (Fed. Cir. 1989) (“The absence of any showing of actual confusion is of very little, if any, probative value here because (1) no evidence was presented as to the extent of ETF’s use of the VITTORIO RICCI mark on the merchandise in question in prior years ….”). In any event, “it is unnecessary to show actual confusion in establishing likelihood of Opposition No. 91218042 31 confusion.” Giant Food, Inc. v. Nation’s Foodservice, Inc., 710 F.2d 1565, 218 USPQ 390, 396 (Fed. Cir. 1983). This factor is neutral.21 V. Conclusion We have considered all arguments and evidence of record, including those not specifically discussed herein, and all relevant du Pont factors.22 Because we have found that Opposer’s TRACFONE mark is strong; the marks at issue are similar; that Applicant’s “computer application software for mobile phones, namely, software for backup of data” is related to Opposer’s “computer programs for use in controlling and monitoring prepaid airtime cellular telephone service;” that the goods would move in the same or overlapping trade channels; and that they are offered to the same or overlapping classes of purchasers, we conclude that Opposer has demonstrated by a preponderance of the evidence that Applicant’s PHONE TRACKER PRO mark so 21 Applicant’s evidence that searching Google Play for Opposer’s mark TRACFONE does not yield results which include Applicant’s goods, and that searching Google Play for Applicant’s mark PHONE TRACKER PRO does not lead to results which include Opposer’s goods is essentially irrelevant. There is no evidence of how consumers generally search for or find apps, and Applicant’s search evidence does not account for the effects of the parties’ advertising for their apps, word of mouth or other methods of finding or shopping for apps. 22 Opposer has not established that Applicant intentionally sought to trade upon Opposer’s goodwill or reputation. See Big Blue Products Inc. v. International Business Machines Corp., 19 USPQ2d 1072, 1075-76 (TTAB 1991). Cf. J & J Snack Foods Corp. v. McDonald’s Corp., 932 F.2d 1460, 18 USPQ2d 1889, 1891 (Fed. Cir. 1991) (“Whether there is evidence of intent to trade on the goodwill of another is a factor to be considered, but the absence of such evidence does not avoid a ruling of likelihood of confusion.”). Opposition No. 91218042 32 resembles Opposer’s TRACFONE mark as to be likely to cause confusion or mistake, or to deceive under Section 2(d) of the Trademark Act. Decision: The opposition is sustained on Opposer’s likelihood of confusion claim and registration of Applicant’s mark is refused.23 23 Because we have sustained the opposition on the Opposer’s Section 2(d) claim, we need not reach Opposer’s dilution claim. Multisorb Tech., Inc. v. Pactiv Corp., 109 USPQ2d 1170, 1171 (TTAB 2013) (“Like the federal courts, the Board has generally used its discretion to decide only those claims necessary to enter judgment and dispose of the case. . . . [T]he Board’s determination of registrability does not require, in every instance, decision on every pleaded claim.”) Copy with citationCopy as parenthetical citation