United Country Real Estate, LLCv.United Realty, Inc.Download PDFTrademark Trial and Appeal BoardAug 29, 2018No. 92064069 (T.T.A.B. Aug. 29, 2018) Copy Citation This Opinion is Not a Precedent of the TTAB Hearing: June 28, 2018 Mailed: August 29, 2018 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ United Country Real Estate, LLC v. United Realty, Inc. _____ Cancellation No. 92064069 _____ Daniel A. Crowe, Matthew G. Minder and Steven G. Trubac of Bryan Cave Leighton Paisner LLP, for United Country Real Estate, LLC. . Erik M. Pelton of Erik M. Pelton & Associates, PLLC, for United Realty, Inc. _____ Before Wellington, Kuczma and Greenbaum, Administrative Trademark Judges. Opinion by Greenbaum, Administrative Trademark Judge: United Country Real Estate, LLC (“Petitioner”) seeks to cancel United Realty, Inc.’s (“Respondent”) registration on the Principal Register for the mark UNITED REALTY, INC. (in standard characters, REALTY, INC. disclaimed) for “Real estate agencies; Real estate brokerage” services in International Class 361 under Section 1 Registration No. 4776243 issued on the Principal Register on July 21, 2015 from an application filed November 13, 2014 under Section 1(a) of the Trademark Act, 15 U.S.C. § 1051(a). Cancellation No. 92064069 - 2 - 2(d) of the Trademark Act, 15 U.S.C. § 1052(d), asserting priority and a likelihood of confusion with its mark UNITED (in typed form), registered on the Principal Register, for “real estate brokerage services” in International Class 36.2 Petitioner also asserts that it has made prior common law use of UNITED and UNITED- formative marks in connection with real estate brokerage services. For purposes of this proceeding, Petitioner’s claim of common law rights is unnecessary, and we have not considered it in making our decision. As a second ground for cancellation, Petitioner asserts that Respondent committed fraud on the USPTO under Section 14(3) of the Trademark Act, 15 U.S.C. § 1064(3) based on false averments of exclusive rights in the mark in the procurement of the involved registration. In its answer, Respondent denied the salient allegations of the petition, and asserted the affirmative defenses of laches and acquiescence.3 Both parties submitted briefs and, on June 28, 2018, presented arguments at oral hearing before this panel. 2 Registration No. 1109683, issued December 19, 1978 from an application filed May 18, 1978. Trademark Act §§ 8 and 15 affidavits accepted and acknowledged. Second renewal. Prior to November 2, 2003, “standard character” drawings were known as “typed” drawings. TMEP § 807.03(i) (October 2017). 3 These affirmative defenses are deemed waived because Respondent pursued neither of them in its brief. See Alcatraz Media, Inc. v. Chesapeake Marine Tours Inc. dba Watermark Cruises, 107 USPQ2d 1750, 1753 n.6 (TTAB 2013). Respondent’s other putative affirmative defenses are merely amplifications of its denials, as Respondent acknowledges in its answer via the heading titled “Affirmative Defenses & Amplifications” (4 TTABVUE 5), and are construed as such. Cancellation No. 92064069 - 3 - I. Evidentiary Matters Petitioner filed motions to strike (1) the trial transcript from a civil action styled United Country Real Estate, LLC v. United Realty Group, Inc., Case No. 16-cv-60154 (S.D. Fla) (“Florida Case”), submitted under Respondent’s Second Notice of Reliance, and (2) search result lists from the corporation/business registration databases of seven states of entities whose legal names include the term UNITED, submitted under Respondent’s Fourth Notice of Reliance. Petitioner maintained the objections in its brief, and expanded the objections concerning the Florida Case to include the Final Judgment and Findings of Fact and Conclusions of Law (“Florida Decision”), i.e., the entirety of Respondent’s Second Notice of Reliance. The motions are contested.4 We grant the motions for the reasons discussed below. A. Documents from the Florida Case Petitioner objects to admission of documents from the Florida Case which purport to be from the file of a trademark infringement proceeding involving Petitioner and an unrelated third party.5 The trial transcript, which includes the testimony of multiple witnesses, does not qualify as an “official record” because it was created and made of record by the parties to the Florida Case who are not “public officials.”6 The Board has stated that “[t]he ‘official records’ referred to by the rule are records 4 Respondent’s response to the motion is attached to its brief. 5 Moreover, as Petitioner points out in its motion to strike, Respondent did not file a motion to introduce the trial testimony from the Florida Case. 6 These are not official records, nor do they constitute documents which are admissible under any other category of documents which may be submitted via notice of reliance. Cancellation No. 92064069 - 4 - prepared by a public officer which are self-authenticating in nature (and hence require no extrinsic evidence of authenticity as a condition precedent to admissibility), such as certified copies of public records.” Conde Naste Publ’ns Inc. v. Vogue Travel, Inc., 205 USPQ579, 580 n.5 (TTAB 1979). See also Hiraga v. Arena, 90 USPQ2d 1102, 1104 (TTAB 2009) (“There are no official markings or signatures on this form and it is not a record ‘prepared by a public officer.’”). Further, and in any event, we would not accept the factual statements contained in the trial transcript as evidence of the proof of those facts because the statements constitute hearsay.7 Fed. R. Evid. 801(c); Safer Inc. v. OMS Invs., Inc., 94 USPQ2d 1031, 1040 (TTAB 2010); see also Couch/Braunsdorf Affinity, Inc. v. 12 Interactive, LLC, 110 USPQ2d 1458, 1467 n.30 (TTAB 2014) (Internet webpage evidence admissible only to show what has been printed and not for the truth of what has been printed), cited in WeaponX Perf. Prods. Ltd. v. Weapon X Motorsports, Inc., 126 USPQ2d 1034, 1040 (TTAB 2018). Additionally, while the Florida Decision is admissible as an official record, the Florida Decision is not binding on us as it was based on the record before that court in a case that involved only one of the parties herein. 7 Respondent’s brief is peppered with references to the evidence and the District Court’s findings in the Florida Case concerning third-party uses of the term “United” in their company names, strongly suggesting that we follow suit. See Applicant’s Brief, 29 TTABVUE 22-23; see also id. at 9 (“The record shows that in 2017, Petitioner was denied in its efforts in a District Court infringement proceeding featuring very similar facts regarding the use of UNITED REALTY GROUP for real estate brokerage services.”), 33-34 (“As noted by the Florida court just a few months [ago] in a similar dispute dismissed in favor of UNITED REALTY GROUP, Petitioner’s ‘UNITED marks have diminished commercial strength.’”), and 39 (“The facts here are not significantly different from the recent Florida District Court proceeding the Petitioner brought against UNITED REALTY GROUP. Petitioner’s claims in that case were dismissed by the Court.”). Cancellation No. 92064069 - 5 - B. Search Result Lists From State Corporate Records Divisions Respondent submitted as Exhibits 10-16 of Respondent’s Fourth Notice of Reliance search result lists from the corporate/business registration databases of several state agencies of both active and suspended business entities that contain UNITED as part of their business names. Search result lists are neither printed publications nor official records, and thus are not admissible under Trademark Rule 2.122(e)(2), 37 C.F.R. § 2.122(e)(2). See Edom Labs. Inc. v. Lichter, 102 USPQ2d 1546, 1550 (TTAB 2012) (search summary inadmissible because it merely offers links to information not otherwise of record); Calypso Tech., Inc. v. Calypso Capital Mgmt., LP, 100 USPQ2d 1213, 1219 (TTAB 2011). Cf. Lebanon Seaboard Corp. v. R&R Turf Supply Inc., 101 USPQ2d 1826, 1829 n.8 (TTAB 2012) (summary of search results from USPTO’s electronic database is not an official record of the Office). In addition, Exhibits 14 and 16 do not identify access dates or source URLs as Trademark Rule 2.122(e)(2) requires.8 See Calypso Tech., 100 USPQ2d at 1218 (Internet materials submitted under notice of reliance must bear access date and URL on their face). II. The Record The record consists of the pleadings and, by operation of Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), the file of Registration No. 4776243. 8 Even if we had considered the search result lists, however, their probative value would be limited only to what they show on their face, i.e., that third-party businesses in several states registered their names in the various states’ corporation records, and many of them have since allowed the registrations to become inactive. The listings are not evidence of use of the term UNITED in connection with any listed business, let alone evidence that the term UNITED is weak or diluted in the field of real estate services, which is the purpose for which they have been submitted. See Applicant’s Brief, 29 TTABVUE 20-22. Cancellation No. 92064069 - 6 - A. Petitioner’s Testimony and Evidence Petitioner submitted declaration testimony from the following witnesses: 1. Anthony J. (Tony) Arko, Managing Broker of URE Washington D.C. LLC d/b/a United Real Estate Washington, D.C. (“United DC”), with a confidential exhibit;9 2. Adam Teeple, a real estate agent with National Realty, LLC;10 3. Mark Daniel (Dan) Duffy, President and CEO of Five D I, LLC, the sole member of Petitioner, with exhibits;11 4. Mark Daniel (Dan) Duffy (as rebuttal).12 In addition, Petitioner filed a Notice of Reliance on: 1. Copies from the Trademark Status & Document Retrieval (TSDR) database showing the current status and title of Petitioner’s pleaded Registration No. 1109683 for the mark UNITED,13 and other UNITED and UNITED- formative marks for which Petitioner pleaded prior common law use;14 2. Portions of the discovery deposition of Tony Yeh, President of Respondent and Respondent’s Rule 30(b)(6) witness, with exhibits,15 and certain 9 8 TTABVUE (testimony); 9 TTABVUE (confidential exhibit). 10 12 TTABVUE. 11 13 TTABVUE (redacted); 14 TTABVUE (confidential). 12 26 TTABVUE. 13 7 TTABVUE 7-16. 14 7 TTABVUE 17-43. 15 10 TTABVUE 2-54. Cancellation No. 92064069 - 7 - admissions made by Respondent in answer to Petitioner’s Requests for Admissions;16 3. Excerpts of the file histories of third party trademark applications and TTAB decisions finding a likelihood of confusion with Petitioner’s UNITED marks.17 B. Respondent’s Testimony and Evidence Respondent submitted the declaration testimony of Tony Yeh, President of Respondent, with exhibits;18 Respondent also filed Notices of Reliance on: 1. TSDR printouts of third party registrations for UNITED and UNITED- formative marks;19 and 2. Additional excerpts from the 30(b)(6) discovery deposition of Tony Yeh, purportedly which should in fairness be considered so as to not make misleading what was offered by Petitioner.20 III. Standing “A petitioner is authorized by statute to seek cancellation of a mark where it has ‘both a “real interest” in the proceedings as well as a “reasonable” basis for its belief of damage.’” Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 16 10 TTABVUE 55-61. 17 11 TTABVUE. 18 20 TTABVUE. 19 16 TTABVUE. 20 18 TTABVUE. Cancellation No. 92064069 - 8 - USPQ2d 1058, 1062 (Fed. Cir. 2014) (quoting ShutEmDown Sports, Inc. v. Lacy, 102 USPQ2d 1036, 1041 (TTAB 2012) and citing Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023 (Fed. Cir. 1999)). Petitioner’s prior registration for a mark similar to Respondent’s mark, for the same “real estate brokerage” services that are identified in Respondent’s registration, establish Petitioner’s real interest and standing. See Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000) (petitioner’s prior registrations establish “direct commercial interest and its standing to petition for cancellation”); Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (CCPA 1982). IV. Priority In a cancellation proceeding such as this one in which both parties own registrations, the petitioner must prove priority of use. Brewski Beer Co. v. Brewski Bros., Inc., 47 USPQ2d 1281, 1283-84. (TTAB 1998). The May 18, 1978 filing date of the application that matured into Petitioner’s pleaded registration precedes by more than thirty-five years the November 13, 2014 filing date of the application that matured into Respondent’s challenged registration. See id. at 1284 (a petitioner may rely on a registration it owns to establish first use as of the application filing date). Respondent has neither alleged nor proven an earlier priority date. Further, Respondent “[a]dmitted, to the extent the public records are true and correct,” that the pleaded registration is valid and subsisting and owned by Petitioner, and that the filing date of the application underlying the pleaded registration precedes the filing date of the application underlying Respondent’s registration as well as Respondent’s Cancellation No. 92064069 - 9 - claimed first use of the mark in that registration.21 Accordingly, we find that Petitioner has established priority of use for the mark UNITED for the real estate brokerage services set forth in the registration. V. Likelihood of Confusion When the question is likelihood of confusion, we analyze the facts as they relate to the relevant factors set out in In re E.I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563, 567 (CCPA 1973). See also In re Majestic Distilling Co., 315 F.3d 1311, 65 USPQ2d 1201 (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 (CCPA 1976). We discuss below these and other relevant factors. See M2 Software, Inc. v. M2 Commc’ns, Inc., 450 F.3d 1378, 78 USPQ2d 1944, 1947 (Fed. Cir. 2006) (even within du Pont list, only factors that are “relevant and of record” need be considered). A. Similarity of the Parties’ Services and Channels of Trade We begin with the du Pont factors involving the relatedness of the services and the similarity of established, likely to continue channels of trade. We base our evaluation on the services as they are identified in the registrations. Stone Lion Capital Partners, LP v. Lion Capital LLP, 746 F.3d 1317, 110 USPQ2d 1157, 1171 (Fed. Cir. 2014); Octocom Sys. Inc. v. Hous. Computs. Servs. Inc., 918 F.2d 937, 16 21 Respondent’s Answers to Request for Admission Nos. 1-2, and 5-6, respectively. 10 TTABVUE 55-57. Cancellation No. 92064069 - 10 - USPQ2d 1783, 1787 (Fed. Cir. 1990). The services are identical or nearly identical as Petitioner’s registration identifies “real estate brokerage” services, and Respondent’s registration identifies “real estate agencies” and “real estate brokerage” services. Further, because the involved services are identical or nearly so, and neither registration contains any limitations as to the channels of trade and classes of purchases, we must presume that they are the same. In re Viterra Inc., 671 F.3d 1358, 101 USPQ2d 1905, 1908 (Fed. Cir. 2012) (absent restrictions in an application or registration, the identified goods, if identical, are “presumed to travel in the same channels of trade to the same class of purchasers.”) (quoting Hewlett-Packard Co. v. Packard Press, Inc., 281 F.3d 1261, 62 USPQ2d 1001, 1001 (Fed. Cir. 2002)); see also Stone Lion, 110 USPQ2d at 1161; In re Fat Boys Water Sports LLC, 118 USPQ2d 1511, 1518-19 (TTAB 2016). Respondent confirmed this presumption by admitting, in answer to Request for Admission No. 7, that the identified services “are directly competing.”22 Moreover, the record amply demonstrates that Petitioner and Respondent both offer real estate brokerage services to buyers and sellers of real estate,23 they both offer their services in the same metropolitan Washington, DC geographic area,24 and they both advertise in the same manner (e.g., yard signs, real estate magazines, 22 10 TTABVUE 57. Respondent also admitted, in answer to Request for Admission No. 8, that the identified services are “closely related.” Id. 23 26 TTABVUE 2-3; 10 TTABVUE 11 and 20 TTABVUE 3. 24 20 TTABVUE 2-3, ¶¶ 3-6, 11 and 8 TTABVUE 2-3, ¶¶ 3-7. Cancellation No. 92064069 - 11 - industry events).25 In addition, Respondent’s president, Tony Yeh, personally has shown properties offered for sale by Petitioner’s clients to buyers represented by Respondent.26 These du Pont factors strongly favor a finding of likelihood of confusion. B. Strength of Petitioner’s UNITED Mark We next evaluate the strength of Petitioner’s mark because it affects the scope of protection to which the mark is entitled. Petitioner argues under the fifth du Pont factor that its UNITED mark should be deemed famous within the real estate brokerage industry, while Respondent contends, under the sixth du Pont factor, that Petitioner’s mark should be accorded a narrow scope of protection due to the number and nature of similar marks in use in connection with similar services. du Pont, 177 USPQ at 567. We consider the factors in tandem. Bell’s Brewery, Inc. v. Innovation Brewing, 125 USPQ2d 1340, 1345 (TTAB 2017). “In determining strength of a mark, we consider both inherent strength, based on the nature of the mark itself, and commercial strength or recognition.” Id. at 1345 (citing Couch/Braunsdorf, 110 USPQ2d at 1476); see also In re Chippendales USA Inc., 622 F.3d 1346, 96 USPQ2d 1681, 1686 (Fed. Cir. 2010) (“A mark’s strength is measured both by its conceptual strength (distinctiveness) and its marketplace strength (secondary meaning).”). Market strength is the extent to which the relevant 25 26 TTABVUE 3 and 13 TTABVUE 12-14, 16; 10 TTABVUE 12, 14-17, 25-39 and 20 TTABVUE 3, 5-6. 26 10 TTABVUE 19 (30(b)(6) Deposition of Tony Yeh, p. 107:10-107:21). Cancellation No. 92064069 - 12 - public recognizes a mark as denoting a single source. Tea Board of India v. Republic of Tea Inc., 80 USPQ2d 1881, 1899 (TTAB 2006). We turn first to evidence concerning the commercial strength of Petitioner’s UNITED mark. 1. Commercial Strength As noted above, Petitioner contends that its UNITED mark is a famous mark. Fame, if it exists, plays a dominant role in the likelihood of confusion analysis; famous marks enjoy a broad scope of protection or exclusivity of use because they have extensive public recognition and renown. Bose Corp. v. QSC Audio Prods. Inc., 293 F.3d 1367, 63 USPQ2d 1303, 1305 (Fed. Cir. 2002); Recot Inc. v. M.C. Becton, 214 F.3d 1322, 54 USPQ2d 1894, 1897 (Fed. Cir. 2000); Kenner Parker Toys, Inc. v. Rose Art Indus. Inc., 963 F.2d 350, 22 USPQ2d 1453, 1456 (Fed. Cir. 1992). “[L]ikelihood of confusion fame ‘varies along a spectrum from very strong to very weak.’” Joseph Phelps Vineyards, LLC v. Fairmount Holdings, LLC, 857 F.3d 1323, 122 USPQ2d 1733, 1734 (Fed Cir. 2017) (quoting Palm Bay Imps., Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689, 1694 (Fed. Cir. 2005) (quoting In re Coors Brewing Co., 343 F.3d 1340, 68 USPQ2d 1059, 1063 (Fed. Cir. 2003))). The commercial strength of Petitioner’s UNITED mark may be measured indirectly by the volume of sales and advertising expenditures in connection with the services sold under the mark, and other factors such as how long the mark has been used; widespread critical assessments; notice by independent sources of the services identified by the mark; and the general reputation of the services. Tao Licensing, LLC v. Bender Consulting Ltd., 125 USPQ2d 1043, 1056 (TTAB 2017); see also Bose, 63 Cancellation No. 92064069 - 13 - USPQ2d at 1305-06 and 1309. Although raw numbers of product sales and advertising expenses sometimes suffice to prove fame, raw numbers alone may be misleading. Some context in which to place the raw numbers may be reasonable (e.g., the substantiality of the sales or advertising figures for comparable types of products or services). Id. at 1309. Finally, because of the extreme deference that we accord a famous mark in terms of the wide latitude of legal protection it receives, and the dominant role fame plays in the likelihood of confusion analysis, it is the duty of the party asserting that its mark is famous to clearly prove it. Coach Servs., Inc. v. Triumph Learning LLC, 668 F.3d 1356, 101 USPQ2d 1713, 1720 (Fed. Cir. 2012) (citing Leading Jewelers Guild Inc. v. LJOW Holdings LLC, 82 USPQ2d 1901, 1904 (TTAB 2007)). Through the testimony of Mr. Duffy (and associated exhibits), Petitioner provided a variety of such indirect evidence of commercial strength, some of which is confidential and therefore will be discussed only in general terms. Petitioner and its predecessors have used the UNITED mark for real estate brokerage services continuously since 1925, both as a standalone mark, and as part of composite marks with designs and/or wording that describe a particular market segment or division.27 Petitioner’s sales and advertising figures from 2007-2015 are quite substantial, with combined advertising expenditures by Petitioner, its affiliates and its franchisees ranging between $16 - $24 million annually, and gross revenues ranging from $10.7 - $38.0 million annually, with steady growth from 2009 to 2015, and revenues of $42.7 27 13 TTABVUE 4, 10 ¶¶ 4, 29. Cancellation No. 92064069 - 14 - million in 2016.28 Petitioner advertises its UNITED real estate brokerage services through a property catalog featuring the mark UNITED on its cover that Petitioner’s predecessor launched in 1928, and which Petitioner still distributes today. As recently as 2005, Petitioner distributed more than 1 million catalogs per year.29 Mr. Duffy provided extensive other testimony concerning Petitioner’s marketing efforts, including attending and hosting real estate conventions, advertising in prominent real estate publications, magazines, local and national newspapers, and the Yellow Pages, advertising through radio, television, billboards, brochures, flyers, direct mail campaigns, and on the Internet through targeted email campaigns and through social media channels such as Facebook and LinkedIn, and by building and supporting thousands of websites for use by Petitioner’s joint ventures and franchisees to market their brokerage and agency services and to recruit prospective agents.30 He also provided impressive (confidential) metrics concerning the online traffic and user sessions of online users who “were not just surfing the web, but actively viewing our over 20,000 active listings.”31 Respondent criticizes this evidence for lack of context and lack of differentiation among Petitioner’s various UNITED-formative marks. However, as Petitioner points out in its reply brief, Petitioner has provided some context in the industry by providing, as a point of comparison, Respondent’s advertising and sales figures. 28 Id. at 14-15, ¶¶ 45-46, and confidential exhibits 40-41. 29 Id. at 11, ¶ 32. 30 Id. at 11-14, ¶¶ 31-43. 31 Id. at 12-13, ¶ 38. Cancellation No. 92064069 - 15 - Petitioner also explains that it currently operates two divisions, United Country, which focuses on rural, country and vacation properties, and United Real Estate, which focuses on urban, residential properties, and both divisions use the mark UNITED. Mr. Duffy testified that “[t]ogether, United Country and United Real Estate have more than 500 offices and more than 6,000 agents, all providing real estate brokerage services under the UNITED® mark.”32 In addition, Mr. Duffy testified that Petitioner and both of its divisions have received numerous awards and recognition.33 48. For example, Stefan Swanepoel’s TRENDS Report has recognized United Real Estate several times including: (a) naming United Real Estate as a “frontrunner” in the real estate industry in 2013; (b) naming United Real Estate as “part of the next generation of real estate brokers” in 2014; (c) listing United Real Estate executives in the “Power 200 Most Influential” in both 2015 and 2016. United Real Estate was named to the Inc. 5000 List of America’s Fastest-Growing Companies in both 2015 and 2016. 49. United Country has also received numerous awards, including being named (a) Top 1% Franchise by the Franchise Business Review every year from 2010-2015; (b) a Top 25 High Performer by The Wall Street Journal; (c) #1 Real Estate Franchise by Dun and Bradstreet’s AllBusiness.com; and (d) Best Brokerages by Land Report Magazine in its 2014 summer issue. 50. [Petitioner] and United Real Estate have received over 50 USA Today/NAA national marketing awards. 51. United Real Estate was prominently featured on CBS’ Undercover Boss in May, 2016. 32 Id. at 4, ¶ 13. 33 Id. at 16, ¶¶ 47-51. Cancellation No. 92064069 - 16 - He also testified extensively about Petitioner’s enforcement actions in various district courts, before the Board, through arbitration, and through termination of franchise agreements.34 On this record, we find that Petitioner’s UNITED mark is commercially strong. 2. Conceptual Strength/Third-Party Uses The parties dispute the conceptual strength of Petitioner’s UNITED mark for real estate brokerage services. Petitioner’s UNITED mark (Registration No. 1109683) issued on the Principal Register without a claim of acquired distinctiveness under Section 2(f) of the Trademark Act, 15 U.S.C. § 1052(f), and a “mark that is registered on the Principal Register is entitled to all Section 7(b) presumptions including the presumption that the mark is distinctive and moreover, in the absence of a Section 2(f) claim in the registration, that the mark is inherently distinctive for the goods [or services].” Tea Board of India, 80 USPQ2d at 1889. Nonetheless, Respondent argues that the word “united” means “joined together as a group,” and that is “highly suggestive” and therefore weak for real estate services. 29 TTABVUE 19. Respondent, however, does not explain the significance of the term “united,” as defined, with respect to real estate services, and we are aware of none other than as a source identifier for the services.35 Respondent also points in its brief to twenty-two third-party registrations of marks that contain the word UNITED for real estate services as evidence that 34 Id. at 17-23, ¶¶ 53-56. 35 Nor do we find persuasive Respondent’s unsupported statement that “UNITED is commonly short for ‘UNITED STATES.’” 29 TTABVUE 19. Cancellation No. 92064069 - 17 - UNITED is conceptually weak.36 29 TTABVUE 23-29. Evidence of third-party use and registration of a term in the relevant industry is considered in the likelihood of confusion analysis. Juice Generation, Inc. v. GS Enters. LLC, 794 F.3d 1334, 115 USPQ2d 1671, 1674-75 (Fed. Cir. 2015); Jack Wolfskin Ausrustung Fur Draussen GmbH & Co. KGAA v. New Millennium Sports, S.L.U., 797 F.3d 1363, 116 USPQ2d 1129, 1135-36 (Fed. Cir. 2015) (same). In this case, however, Respondent relies exclusively on the aforementioned third-party registrations, and submitted no evidence that any of the registered marks is in use. Such registrations are not evidence that the marks therein are in use on a commercial scale or that the public has become familiar with them. Smith Bros. Mfg. Co. v. Stone Mfg. Co., 177 USPQ 462, 463 (CCPA 1973); see also In re Morinaga Nyugyo Kabushiki Kaisha, 120 USPQ2d 1738, 1745 (TTAB 2016) (“Applicant’s citation of third-party registrations as evidence of market weakness is unavailing because third-party registrations standing alone, are not evidence that the registered marks are in use on a commercial scale, let alone that consumers have become so accustomed to seeing them in the marketplace that they have learned to distinguish among them by minor differences.”). The probative evidentiary value of the third-party registrations alone is in showing the sense in which the term UNITED is used and understood. Juice 36 Respondent’s other evidence has been excluded via our evidentiary rulings above. We note again, however, that consideration of the excluded evidence would not have affected our decision herein because it is not probative to show use of the term UNITED in connection with real estate services. Cancellation No. 92064069 - 18 - Generation, 115 USPQ2d at 1675; Tektronix, Inc. v. Daktronics, Inc., 534 F.2d 915, 189 USPQ 693 (CCPA 1976) (third-party registrations “may be given some weight to show the meaning of a mark in the same way that dictionaries are used”); Institut Nat’l Des Appellations D’Origine v. Vintners Int’l Co., 958 F.2d 1574, 22 USPQ2d 1190, 1196 (Fed. Cir. 1992) (“Third party registrations show the sense in which the word is used in ordinary parlance and may show that a particular term has descriptive significance as applied to certain goods or services.”). As the Board recently explained, third-party registrations can be used in the manner of a dictionary as “evidence that a term is suggestive or descriptive of the relevant goods or services. Such terms may be conceptually weak because the more descriptive a term is, the less likely prospective purchasers are to attach source-identifying significance to it.” Morinaga, 120 USPQ2d at 1745-46. But even if the term “united” has a recognized meaning, Respondent’s third-party registration evidence does not support a finding that the meaning is descriptive of real estate services. Indeed, as with the dictionary definition discussed above, Respondent has not explained how any of the third-party registrations use the term “united” in a manner descriptive of real estate. To the extent Respondent bases its argument that “united” is conceptually weak on the volume of third-party registrations of record, a closer inspection reveals that fifteen of the twenty-two are for marks containing the term UNITED with distinguishing matter such as additional wording or a design, or both. The additional matter in the fifteen registrations results in marks with commercial impressions that Cancellation No. 92064069 - 19 - differ from the term UNITED, standing alone, which undercuts their probative value.37 The remaining third party registrations for marks that contain the term UNITED38 are few in number, and fall well short of the “voluminous” and “extensive” evidence presented in Jack Wolfskin, 116 USPQ2d at 1136 (at least fourteen relevant third-party uses or registrations of record), or of that in Juice Generation, 115 USPQ2d at 1673 n.1 (at least twenty-six relevant third-party uses or registrations of record).39 Nor do we consider the record analogous to that in Primrose Retirement Communities, LLC v. Edward Rose Senior Living, LLC, 122 USPQ2d 1030 (TTAB 37 The marks are: UNITED FIRE GROUP; VETERANS UNITED; UNITED OVERSEAS BANK; MILITARY UNITED; BANK UNITED and design; GEORGIA UNITED CREDIT UNION and design; INVESTORS UNITED; AIR, LAND & SEA. UNITED.; UNITED WE SAVE; CASHUNITED INTERNATIONAL; UWM UNITED WHOLESALE MORTGAGE and design; UNITED PROPERTIES SOUTHWEST and design; BANKUNITED; UNITED STATES REAL ESTATE (stylized); and UNITED ONE RESOURCES and design. 38 The marks are: UNITED PROPERTIES; UNITED BROKERS GROUP; UNITED AMERICAN MORTGAGE; UNITED TITLE; UNITED WHOLESALE MORTGAGE; and UNITED MULTI FAMILY. The seventh registration, for the mark UNITED COMMERCIAL REALTY (Reg. No. 3067628), was cancelled on October 21, 2016, because the registrant failed to file a Section 8 declaration of continued use. “The existence of a cancelled registration— particularly one cancelled for failure to provide a declaration of continued use—does not tend to show that the cited mark is weak due to third-party use.” In re Inn at St. John’s, LLC, 126 USPQ2d 1742, 1745 (TTAB 2018), citing Bond v. Taylor, 119 USPQ2d 1049, 1054 (TTAB 2016) (“The existence of a cancelled registration and an abandoned application does not establish that Opposer’s mark is weak.”). 39 Nor does the quantity of evidence approach that presented in In re Unidos Financial Services, Inc., Serial No. 77126814 (TTAB 2010), a non-precedential decision to which Respondent cites (29 TTABVUE 18, 28-29), in which the Board found no likelihood of confusion between UNITED and (…UNIDOS…AL ALCANCE DE TU MANO in multiple colors, translated to “UNITED WITHIN YOUR REACH”). In that case, the Board stated that twenty-five third-party registrations that included the term UNITED in the financial services field, which was at issue therein, “suggest that UNITED is one of those ubiquitous terms, like ACME, used in many registered trademarks in the financial field and, more specifically, in connection with money transfer and related services ….” We also reiterate the axiomatic principle that we must assess each case on its own facts and record. In re Nett Designs Inc., 236 F.3d 1339, 57 USPQ2d 1564, 1566 (Fed. Cir. 2001). Cancellation No. 92064069 - 20 - 2016), an inter partes case in which this du Pont factor carried great weight. In that case, in addition to the eight third party registrations, the record included more than 85 actual uses of ROSE-formative marks for similar services, as well as expert testimony and other evidence regarding the common nature of ROSE-formative marks in the industry. Id. at 1034-35. Again, we have no such actual use evidence of record. Considering the record as a whole, we find that Respondent’s third-party registration evidence does not demonstrate conceptual weakness, and therefore does not narrow the scope of protection to which Petitioner’s inherently distinctive and commercially strong mark UNITED is entitled. C. Similarity of the Marks We turn next to the first du Pont factor of the similarity of the parties’ marks. In a likelihood of confusion analysis, we compare the marks in their entireties for similarities and dissimilarities in appearance, sound, connotation and commercial impression. Stone Lion, 110 USPQ2d at 1160. “The proper test is not a side-by-side comparison of the marks, but instead whether the marks are sufficiently similar in terms of their commercial impression such that persons who encounter the marks would be likely to assume a connection between the parties.” Coach Servs., 101 USPQ2d at 1721 (Fed. Cir. 2012). The marks “‘must be considered … in light of the fallibility of memory ….’” In re St. Helena Hosp., 774 F.3d 747, 113 USPQ2d 1082, 1085 (Fed. Cir. 2014) (quoting San Fernando Elec. Mfg. Co. v. JFD Elecs. Components Corp., 565 F.2d 683, 196 USPQ 1 (CCPA 1977)). The focus is on the recollection of the Cancellation No. 92064069 - 21 - average purchaser, who normally retains a general rather than a specific impression of trademarks. In re Binion, 93 USPQ2d 1531 (TTAB 2009); Sealed Air Corp. v. Scott Paper Co., 190 USPQ 106 (TTAB 1975). Here, the average customer includes members of the general public who are interested in buying or selling real estate. In addition, and of particular relevance here, where the parties use their marks in connection with identical services, the similarity between the marks necessary to support a determination that confusion is likely declines. Bridgestone Ams. Tire Operations LLC v. Fed. Corp., 673 F.3d 1330, 102 USPQ2d 1061, 1064 (Fed. Cir. 2012); Century 21 Real Estate Corp. v. Century Life of Am., 970 F.2d 874, 23 USPQ2d 1698 (Fed. Cir. 1992). When considered in their entireties, we find Petitioner’s mark UNITED to be very similar to Respondent’s mark UNITED REALTY, INC. due to the shared term UNITED. Respondent admits that the term UNITED is the dominant portion of its mark UNITED REALTY, INC.40 The additional wording in Respondent’s mark does not distinguish Respondent’s mark from Petitioner’s mark because, as Respondent also admits, “realty” is generic of the identified real estate brokerage services, and the term “Inc.” is an entity designation with no source identifying capability.41 See In re Nat’l Data Corp., 224 USPQ 749, 752 (Fed. Cir. 1985) (the “descriptive component of a mark may be given little weight in reaching a conclusion on likelihood of 40 Respondent’s Amended Responses to Petitioner’s Requests for Admission No. 14. 10 TTABVUE 58. 41 Respondent’s Amended Responses to Petitioner’s Requests for Admission Nos. 10 and 12, 10 TTABVUE 57-58. Cancellation No. 92064069 - 22 - confusion”); see also In re Wm. B. Coleman Co., 93 USPQ2d 2019, 2025 (TTAB 2010) (with respect to ELECTRIC CANDLE COMPANY, “Electric Candle” is a unitary generic term and “‘Company’ is simply a designation for a type of entity without source-identifying capability.”). We also note that Respondent appropriately has disclaimed the non-source identifying terms REALTY, INC. See In re Dixie Rests. Inc., 105 F.3d 1405, 41 USPQ2d 1531, 1533-34 (Fed. Cir. 1997). In addition, while there is no rule that a likelihood of confusion is present where one mark encompasses another, in this case, as in many others, the fact that Respondent’s mark includes the entirety of Petitioner’s mark increases the similarity between the two. See, e.g., Wella Corp. v. California Concept Corp., 558 F.2d 1019, 194 USPQ 419, 422 (CCPA 1977) (finding CALIFORNIA CONCEPT marks substantially similar to prior mark CONCEPT); Coca-Cola Bottling Co. of Memphis, Tennessee, Inc. v. Joseph E. Seagram and Sons, Inc., 526 F.2d 556, 188 USPQ 105 (CCPA 1975) (applicant’s mark BENGAL LANCER for club soda, quinine water and ginger ale is likely to cause confusion with BENGAL for gin). Finally, both marks are in standard characters (or the legal equivalent) and thus not limited to any particular depiction. The rights associated with a standard character mark reside in the wording and not in any particular display. In re RSI Sys. LLC, 88 USPQ2d 1445, 1448 (TTAB 2008); In re Pollio Dairy Prods. Corp., 8 USPQ2d 2012, 2015 (TTAB 1988); Trademark Manual of Examining Procedure (“TMEP”) § 1207.01(c)(iii) (Oct. 2017). We must consider both standard character marks “regardless of font style, size, or color,” Citigroup Inc. v. Capital City Bank Cancellation No. 92064069 - 23 - Grp. Inc., 637 F.3d 1344, 98 USPQ2d 1253, 1259 (Fed. Cir. 2011), including iterations emphasizing the shared term UNITED. We find that when viewed in their entireties, the marks are very similar in all respects. The first du Pont factor thus weighs heavily in favor of a finding that confusion is likely. D. Conditions of Sale Next, we consider the conditions under which the services are likely to be purchased, e.g., whether on impulse or after careful consideration, as well as the degree, if any, of sophistication of the consumers. “Purchaser sophistication may tend to minimize likelihood of confusion. Conversely, impulse purchasers of inexpensive items may tend to have the opposite effect.” Palm Bay, 73 USPQ2d at 1695. We acknowledge that real estate brokerage services of the type rendered by Petitioner and Respondent might sometimes involve careful and discriminating purchasers. It is settled, however, that even sophisticated purchasers are not immune from source confusion, especially where identical services are offered under very similar marks, as is the case here. See In re Research Trading Corp., 793 F.2d 1276, 230 USPQ 49, 50 (Fed. Cir. 1986) (“Human memories even of discriminating purchasers … are not infallible.”). Moreover, real estate brokerage services are offered to a wide range of consumers, including members of the general public, many of whom are not likely to be sophisticated in the purchasing and selling of real estate, much less capable of distinguishing between the sources of identical real estate brokerage services Cancellation No. 92064069 - 24 - rendered under very similar marks. This factor also favors a finding of a likelihood of confusion. E. Actual Confusion Under the seventh and eighth du Pont factors, we consider the nature and extent of any actual confusion, in light of the length of time and conditions under which there has been contemporaneous use of the parties’ subject marks. du Pont, 177 USPQ at 567. Proof of actual confusion is not necessary to show a likelihood of confusion, In re i.am.symbolic, llc, 866 F.3d 1315, 123 USPQ2d 1744, 1747 (Fed. Cir. 2017), but “[a] showing of actual confusion may be highly probative, if not conclusive, of a likelihood of confusion.” Majestic Distilling, 65 USPQ2d at 1205. Respondent’s President and founder, Tony Yeh, testified that since the late 1980s, Respondent has been a “real estate brokerage and agency operating in the metropolitan Washington, DC area,” with offices in Vienna, VA and Montgomery County, MD.42 According to Petitioner’s witness Tony Arko,43 Petitioner has offered real estate brokerage and real estate agency services in same metropolitan Washington, DC area since September 2012 through its affiliate, United DC.44 Mr. Arko testified that he has encountered confusion among real estate professionals concerning the source, association or affiliation between United Real Estate and 42 20 TTABVUE 2-3, ¶¶ 3-6, 11. 43 As noted above, Mr. Arko is the Managing Broker of United DC and the regional manager for United Real Estate. 8 TTABVUE 2-3, ¶¶ 1, 6. 44 Id. at 2-3, ¶¶ 3-7. Cancellation No. 92064069 - 25 - Respondent “particularly in the first two years,” i.e., 2012-2014, after United DC entered the metropolitan Washington, DC area.45 Mr. Arko also testified that “over the past few years,” he has received “numerous oral reports” from United DC’s recruiters and real estate agents concerning confusion among real estate agents and/or brokers, that he “continue[s] to encounter real estate professionals, including agents and brokers, who are confused into believing that United Real Estate is the same company as, or is otherwise affiliated with, Respondent,”46 and that many of these real estate professionals “have asked me about or spoken to me about a United Real Estate office in Vienna, Virginia,”47 a location in which Respondent, but not Petitioner, maintains an office.48 According to Mr. Arko, “Real estate professionals, including agents and brokers, frequently and improperly refer to United DC and local United Real Estate franchises as ‘United Realty.”49 “In my experience, real estate professionals including agents and brokers, often fail to distinguish any differences among the marks UNITED, UNITED REAL ESTATE, and UNITED REALTY, INC.”50 Mr. Arko detailed one such instance: a May 9, 2017 meeting with real estate agent Adam Teeple “to evaluate the possibility of Mr. Teeple joining United DC as a real estate agent,”51 in which Mr. 45 Id. at 3, ¶ 8-9. 46 Id. at 5, ¶ 15. 47 Id. at 5, ¶ 17, 48 Id. at 5, ¶ 16. 49 Id. at 5, ¶ 22. 50 Id. at 6, ¶ 23. 51 Id. at 6, ¶ 24. Cancellation No. 92064069 - 26 - Teeple asked about a United Real Estate office in Vienna, VA, which Mr. Teeple mistakenly believed was affiliated with United Real Estate.52 In his testimony declaration, Mr. Teeple corroborated Mr. Arko’s rendition of their meeting.53 Mr. Teeple summarized his confusion concerning United DC’s office in Reston, VA and Respondent’s office in Vienna, VA as follows: “I was confused into believing that the two offices referenced above were two office locations of the same company.”54 “In viewing the names of the respective companies in the marketplace, I saw only the use of United and United. I did not notice the additional wording Realty, Inc. or Real Estate.”55 Respondent does not challenge Mr. Teeple’s testimony. Moreover, while Respondent raises some objections to Mr. Arko’s testimony, Respondent does not challenge his testimony that real estate professionals “frequently and improperly refer to United DC and local United Real Estate franchises as ‘United Realty’” or that they frequently fail to distinguish among UNITED, UNITED REAL ESTATE and UNITED REALTY, INC.56 Thus, even if we were to not consider Mr. Arko’s challenged testimony, or to accord it limited probative weight, the remaining testimony of Mr. Arko and Mr. Teeple is highly probative of a likelihood of confusion. Majestic Distilling, 65 USPQ2d at 1205. This testimony also is consistent with our 52 Id. at 6, ¶¶ 25-29. 53 12 TTABVUE 2-3, ¶¶ 4-7. 54 Id. at 3, ¶ 9. 55 Id. at 9, ¶ 10. 56 8 TTABVUE 5-6, ¶¶ 22-23. Cancellation No. 92064069 - 27 - evaluation of the other du Pont factors and our assessment as to whether confusion is likely. VI. Conclusion Having considered all the evidence and arguments bearing on the relevant du Pont factors, we conclude that Petitioner has established, by a preponderance of the evidence, that Respondent’s registered mark so resembles Petitioner’s earlier used and registered mark as to be likely to cause confusion, mistake or deception. Given our conclusion regarding likelihood of confusion, we need not address Petitioner’s fraud claim. See Azeka Bldg. Corp. v. Azeka, 122 USPQ2d 1447, 1478 (TTAB 2017) (stating that the Board has “‘discretion to decide only those claims necessary to enter judgment and dispose of the case,’ as our ‘determination of registrability does not require, in every instance, decision on every pleaded claim.’”) (quoting Multisorb Tech., Inc., v. Pactive Corp., 109 USPQ2d 1170, 1171 (TTAB 2013)). Decision: The petition for cancellation is granted and Registration No. 4776243 will be cancelled in due course. Copy with citationCopy as parenthetical citation