Vertex Tech-nologies, Inc.

Trademark Trial and Appeal Board

Nov 29, 2000

No. 75262618 (T.T.A.B. Nov. 29, 2000)

Paper No.
16
GDH/gdh
11/29/00
UNITED STATES PATENT AND TRADEMARK OFFICE
________
Trademark Trial and Appeal Board
________
In re Vertex Technologies, Inc.
________
Serial No. 75/262,618
_______
Kimberly Gambrel and Jody H. Armstrong of Killworth, Gottman,
Hagan & Schaeff, L.L.P. for Vertex Technologies, Inc.
Vanessa J. Cooper, Trademark Examining Attorney, Law Office 113
(Meryl Hershkowitz, Managing Attorney).
_______
Before Cissel, Hohein and Holtzman, Administrative Trademark
Judges.
Opinion by Hohein, Administrative Trademark Judge:
Vertex Technologies, Inc. has filed an application to
register the term "SUPPLY CHAIN LINK" for "computer programs for
use in automating tool dispensers, monitoring and reporting on
transactions conducted at tool dispensers, and for linking
THIS DISPOSITION
IS NOT CITABLE AS PRECEDENT
OF THE T.T.A.B.
Ser. No. 75/262,618
2
individual tool dispensers to internal and external information
centers."1
Registration has been finally refused under Section
2(e)(1) of the Trademark Act, 15 U.S.C. §1052(e)(1), on the
basis that, when used in connection with applicant's goods, the
term "SUPPLY CHAIN LINK" is merely descriptive of them.
Applicant has appealed. Briefs have been filed, but
an oral hearing was not requested. We affirm the refusal to
register.
It is well settled that a term is considered to be
merely descriptive of goods or services, within the meaning of
Section 2(e)(1) of the Trademark Act, if it immediately
describes an ingredient, quality, characteristic or feature
thereof or if it directly conveys information regarding the
nature, function, purpose or use of the goods or services. See
In re Abcor Development Corp., 588 F.2d 811, 200 USPQ 215, 217-
18 (CCPA 1978). It is not necessary that a term describe all of
the properties or functions of the goods or services in order
for it to be considered to be merely descriptive thereof;
rather, it is sufficient if the term describes a significant
attribute or idea about them. Moreover, whether a term is
merely descriptive is determined not in the abstract, but in

1 Ser. No. 75/262,618, filed on March 24, 1997, which alleges dates of
first use of January 10, 1997.
Ser. No. 75/262,618
3
relation to the goods or services for which registration is
sought, the context in which it is being used on or in
connection with those goods or services and the possible
significance that the term would have to the average purchaser
of the goods or services because of the manner of its use. See
In re Bright-Crest, Ltd., 204 USPQ 591, 593 (TTAB 1979).
Consequently, "[w]hether consumers could guess what the product
[or service] is from consideration of the mark alone is not the
test." In re American Greetings Corp., 226 USPQ 365, 366 (TTAB
1985).
By way of background, applicant explains in its
initial brief that its "SUPPLY CHAIN LINK" computer software is
designed for use with its automatic tool and supply dispensing
machines. According to applicant:
These machines are similar to vending
machines; they contain various tools and
hardware necessary for various construction
and shop applications. The goods subject to
this application comprise computer software
designed to operate Vertex's dispensing
machines. The software serves to automate
the machinery. As provided in the
description of goods, the SUPPLY CHAIN LINK
software monitors the dispensation of tools
and provides the system operator with the
capability to generate reports. The
software is capable of connecting the
dispensing machines with internal and/or
external data systems. This allows data
relating to the dispensation and use of
tools, hardware, and etc. to be recorded

Ser. No. 75/262,618
4
with accounting, inventory, purchasing and
tool control systems. In addition, data
relating to the dispensation of tools and
hardware can be transmitted to the supplier
of such goods so that inventory can be
monitored and adjusted as needed.
In light of the above, applicant argues that the term
"SUPPLY CHAIN LINK" is not merely descriptive of the operating
software for its tool dispensing machines because "the words
SUPPLY CHAIN LINK convey no 'tolerably distinct' knowledge of
the goods, and ... could describe any number of things," thereby
"render[ing] the mark as a whole incongruous." In particular,
applicant contends that:
Even if it could be argued that any of
the terms contained in Vertex's mark are
singularly descriptive, the terms used
together are not. The mark in its entirety
has no recognizable meaning. SUPPLY CHAIN
LINK is not a readily recognized phrase.
There are two recognizable phrases within
Vertex's mark. The first is "SUPPLY CHAIN."
A "supply chain" is a phrase commonly used
to describe the path that goods take to
reach purchasers. A "supply chain" begins
with the manufacturer of goods which are
transported to a distributor which
distributes the goods to retailers who
ultimately sell the goods to purchasers.
That is the "supply chain" for goods.
"Supply chain" may be viewed as suggestive
of Vertex's goods. Vertex's computer
programs control tool dispensers; the tool
dispensers could be viewed as supplying
tools in a manner analogous to the "supply
chain" as defined above.
....
Ser. No. 75/262,618
5
The second phrase in Vertex's mark is
"CHAIN LINK." "Chain link" is a phrase used
to describe a particular type of fencing in
which metal bars or strips are interlocked.
It is a strong and resilient type of fencing
and is therefore suggestive of strength
generally. In this regard it could be
deemed suggestive of Vertex's goods in that
Vertex's software provides a strong
connection between the dispensation of tools
and the systems designed to monitor such
tool use. "Chain link" connotes a source of
connection. With respect to Vertex's goods,
it connotes a connection of various
functions performed by the software; a chain
of events linked together.
In addition, applicant maintains that the term "SUPPLY
CHAIN LINK" is at best only suggestive of its goods inasmuch as
the words comprising such term "typically are not used together"
and that, when they are used together, the words "are not
compatible." Specifically, applicant insists that (footnote
omitted):2
There is a tendency to break-up the mark
into recognizable phrases, i.e., "SUPPLY
CHAIN" or "CHAIN LINK." Then the purchaser
must consider, what is a "SUPPLY CHAIN" -
LINK or what is a SUPPLY - "CHAIN LINK."

2 Additionally, in both its initial and supplemental briefs, applicant
contends that the term "SUPPLY CHAIN LINK" should be registrable
because a companion application it has filed, involving the mark
"DEMAND CHAIN LINK" for the same goods as those herein, was allowed
for registration. While consistency of examination is of course
desirable, the mark in applicant's companion application is plainly
different from the one in this case and we have no idea as to the
evidentiary record therein, much less whether the mark was likewise
refused registration as being merely descriptive of applicant's goods.
Consequently, the allowance of registration for the mark "DEMAND CHAIN
LINK" cannot serve to mandate registration of the term "SUPPLY CHAIN
LINK" in this case.
Ser. No. 75/262,618
6
This is the same type of reasoning process
which the Board has held to be indicative of
a suggestive mark.
The Examining Attorney, on the other hand, asserts
that (italics in original; footnotes omitted):
The mark is merely descriptive because it
describes a function of the software. The
phrase SUPPLY CHAIN LINK is a term of art in
the business arena which denotes the
development of goods or services from raw
materials into consumer products. The
management of the "supply chain" includes
all aspects of the product development
cycle, including monitoring the inventory
and supply of parts and tools which are not
the core business of an entity, but are
necessary ancillary implements to produce
the core goods or services. Furthermore,
the term identifies a genre of software
which facilitates "supply chain" management.
This type of software helps corporations
manage and track their inventory, internally
and externally, alerting customers and
suppliers alike, regarding the status of raw
materials, finished goods and services and
the ancillary implements needed to produce
the core goods and services.
....
The term LINK is descriptive for the
connectivity function of the software to
internal and external information systems.
The goods are describe[d] by the applicant
as the following[:] "... the software is
capable of connecting the dispensing
machines with internal and/or external data
systems .... in addition, data relating to
the dispensation tools and hardware can be
transmitted to the supplier of such goods so
that inventory can be monitored and adjusted
as needed." The description of the
software[,] as stated by the applicant,
correlates directly with the dictionary
Ser. No. 75/262,618
7
meaning of the term LINK. In addition,
[t]he diagram found on the inside of
applicant's exhibit A outlines the function
of the software. This diagram evidences
that the software monitors and tracks the
tool dispensers and informs entities and
their suppliers about the status of tool and
supply inventory by "linking" the dispensers
to internal and external information
networks. The software monitors the SUPPLY
CHAIN and LINKS the information to internal
and external systems. Therefore, the mark
is descriptive of the goods .... A mark
which combines two descriptive terms will
not be registrable if the composite creates
a unitary mark which is descriptive. In re
Ampco Foods, Inc., 227 USPQ 331 (TTAB 1985).
In support of her position, the Examining Attorney
relies upon excerpts from various searches of the "NEXIS"
database to show the meaning of the term "supply chain,"
including the fact that such term not only merely describes, but
generically designates, a category of computer software. As to
the former, the following examples, which are representative,
indicate that the term "supply chain" is indeed a term of art
which, contrary to applicant's contentions, is inclusive among
other things of the particular kinds of tool dispensing,
monitoring and reporting functions performed by its computer
programs (emphasis added):
"supply chain management is the
purchasing profession's, maybe even the
industry's, most discussed, analyzed, and
practiced philosophy. While some
practitioners merely adopt the supply chain
banner, focusing only on fundamental
activities, purchasing's leaders and
Ser. No. 75/262,618
8
visionaries seize the opportunity to extend
their scope of responsibility and achieve
increasingly sophisticated supplier
management.
....
In addition, Walter J. Pietrak ...
believes 'supply chain management is not a
standalone process, and is more than just
procurement.'
Creation of extended supply chain
linkages. Michael Katzorke ... sees a
'growing number of increasingly strong
linkages between buyers and their
suppliers.' Katzorke, who designed and
initiated the supply chain management
rollout as director of materials at Allied
Signal ..., lists the following examples of
extended purchasing responsibility ...." --
Supplier Selection & Management Report,
April 1999 (article headlined: "Purchasers
Can Use The Supply Chain to Extend its
Capabilities");
"Supply chain management is built on
the premise that managers must be able to
locate all items, parts, and finished goods
at any given time. Automatic identification
technology makes that possible by attaching
a sort of nametag to a pallet, box, or
container ....
....
The Communications Link
Successful supply chain management
requires constant knowledge of the
whereabouts of goods in the pipeline.
That's why a second category of technology--
communications, plays such an important role
in enabling a company to implement this
business strategy.
....
But another category of software ...
has emerged to enable companies with
different computer systems and software to
link their systems together. 'Supply chain
management is about integrating different
applications' ....
....
Ser. No. 75/262,618
9
Indeed, many analysts believe that the
real technological challenge facing
companies interested in supply chain
management is integration. Auto ID systems,
communication systems, and software must all
work in sync and exchange data if companies
truly want to change the way they
manufacture and distribute products." --
Logistics Management Distribution Report,
March 31, 1999;
"[T]he manufacturing industry's concept
of 'the enterprise' has evolved and expanded
to include the company together with its
supply chain of subcontractors, job shops,
strategic partners, and others. To manage
information flow and design collaboration
among these groups, manufacturers are
starting to use product data management
(PDM) as a critical tool throughout the
product definition life cycle. The
technology facilitates communication and
data exchange between the various systems,
enables product development to be
coordinated by OEMs, and makes important
product information readily accessible up
and down the supply chain. Just as PDM
manages product definition in the supply
chain, enterprise resource planning (ERP)
controls the flow of parts and materials
throughout production with capabilities for
inventory control, shop floor scheduling,
work order management, purchasing, etc.
These transaction-based systems coordinate
the manufacturing operation for peak
efficiency and are virtually indispensable
in keeping complex production facilities
running smoothly, especially when components
and assemblies are outsourced to suppliers."
-- Computer-aided Engineering, February
1999;
"First, a quick definition for the
uninitiated: A supply chain is the series
of business processes that moves products
... from raw materials to end users." --
Sales & Marketing Management, February 1999;
Ser. No. 75/262,618
10
"[C]ompanies need systems that do more
than simply tell them what their inventory
is and what their orders are. They need
systems that interact with suppliers and
customers. They need supply chain systems.
Supply side manufacturers have always
engaged in supply chain management, but the
term, in its current meaning, has gained
increasing currency over the last six years.
The definition in use at Manufacturing
Systems magazine is as follows: Supply
chain management uses information technology
to endow computerized intelligence to an
ever-growing network of raw material
suppliers, factories, warehouses,
distribution centers, delivery vehicles, and
points-of-sale. That way, each player in
the supply chain conducts business with the
latest and best information from everyone
else. Product moves from point-of-origin to
that of consumption as quickly as possible
and at the smallest cost, as supply and
demand fall into ever-more-perfect balance."
-- Manufacturing Systems, September 1998;
"Yet what is the supply chain? And why
should companies take the time and
considerable effort to develop a supply
chain management process?
First, the definition. Of the many
that are out there, one that nicely embodies
the scope and collaborative nature of supply
chain management comes from Donald J.
Bowersox, ... professor of business
administration at Michigan State University.
'Supply chain management is a collaborative-
based strategy to link cross-enterprise
business operations to achieve a shared
vision of market opportunity,' says
Bowersox, who has researched and written
extensively on the subject. 'It is a
comprehensive arrangement that can span from
raw-material sourcing to end-consumer
purchase.'" -- Logistics Management &
Distribution Report, June 30, 1998; and
Ser. No. 75/262,618
11
"Mention the supply chain, and almost
immediately it becomes synonymous with
logistics and inventory management
activities. After all, that's where the
initial applications have been pursued, and
moderate success enjoyed. However, there is
a broader scope to the supply chain concept,
one that ranges from the supplier's supplier
to the customer's customer. It's also one
that clearly gives the logistician and
inventory manager a more strategic and
influential voice.
The first significant effort at
integrating the supply chain has been
unveiled. The Supply Chain Operations
Reference-model (SCOR) provides
manufacturers, suppliers, distributors and
retailers with a framework to evaluate the
effectiveness of their supply chains and to
target and measure specific process
improvements. It's major contribution ...
is in creating a common language for
communicating among intra-company functions
and with inter-company supply chain
partners. Another step forward is in
clarifying and defining common supply chain
processes.
SCOR focuses on four basic supply chain
processes. Plan, source, make, and deliver
are the four principle components of the
supply chain ...." -- Inventory Reduction
Report, February 1997 (article headlined
"Inventory Manager Role Enhanced with New
Supply Chain Model").
With respect to the fact that the record demonstrates
that the term "supply chain" generically designates a type of
computer software for performing supply chain activities and
operations, the following "NEXIS" excerpts are representative
(emphasis added):
"Well, it's official now: The Acronym
Specialists Society has formally changed the
Ser. No. 75/262,618
12
designation of the back-office and supply
chain software market formerly known as ERP
to BURP. The society's official stance is
that the new acronym, which stands for
Beyond Utilitarian Resource Planning, is
more accurate than stuffy old Enterprise
Resource Planning, and that the acronym ERP
was about to be obscured ...." --
InformationWeek, March 29, 1999;
"The universe of what's commonly called
supply chain software--but may be more aptly
named 'advanced planning and scheduling'
software--is in the midst of some dramatic
changes that will have a big effect on
what's available to logistics managers, and
how they deploy it.
Supply chain software suppliers are
shifting their emphasis. Until recently,
the biggest buyers of this planning and
scheduling software were Fortune 500
companies. ....
....
Equally important is that existing
business processes are integrated with a
supply chain software system. Hugh
McGinness ... has analyzed many of the out-
of-the-box supply chain offerings. 'The
companies bringing in supply chain software
have difficulty using it because without the
right process, the software isn't worth a
thing,' he says. 'Often purchasing managers
expect the software to do things exactly the
same way they've always been done, only
automated.' This is very short-sighted,
according to McGinness ....
....
Integration is not just an issue within
an organization, though. One of the hottest
issues in the supply chain software world is
connectivity outside the enterprise.
....
.... So more and more, logistics and
supply chain software is component-based
rather than provided as a single entity.
...." -- Purchasing Magazine, March 25,
1999;
Ser. No. 75/262,618
13
"Mr. Johnston was the president of
Descartes Systems Group, a leading supply
chain software company." -- Washington
Times, February 15, 1999;
"Several recently introduced software
products from Optum, Inc. and from
PricewaterhouseCoopers can help integrate
ERP with WMS and various other supply chain
software." -- Transportation & Distribution,
February 1, 1999;
"Supply chain software provider EXE
Technologies of Dallas has formed an
alliance with Vastera of Chantilly, Va.,
which provides international trade
software." -- Logistics Management
Distribution Report, January 31, 1999;
"The Atlanta-based supply chain
software company ...." -- Atlanta Journal &
Constitution, January 28, 1999;
"Retailers first automated their
financial and ordering systems, then came
supply chain software and data mining." --
Boston Herald, January 20, 1999;
"Reuland told of one large retail
customer for whom they've taken inventory
turns from six to 15, with zero out-of-
stock, all while bringing buffer stock down.
They did that before implementing any supply
chain software. Now that their material
handling and logistics disciplines are up to
speed, they intend to use the i2 software to
boost order fill rates, factory accuracy and
forecast accuracy to 95%, and respond to
market requirements within five days." --
Material Handling Engineering, January 1,
1999;
"Electronic commerce forms an
increasingly important part of how companies
use their supply chain software." -- Supply
Management, December 3, 1998; and
Ser. No. 75/262,618
14
"No question about it, supply chain
planning and execution software is hot, and
this market is poised for rapid, substantial
growth." -- Manufacturing Systems, September
1997.
In addition, we judicially notice3 that the Dictionary
of E-Business: A Definitive Guide to Technology & Business
Terms (2000) at 279 defines "supply chain" as meaning:
A course or evolution which begins with
raw materials and ends with the sale of a
finished product or service. It includes
entities such as buyers, manufacturers,
distributors, suppliers and consumers. It
is an e-commerce company's set of functions
which may be internal or external, and
allows the value chain to make or produce
products and deliver services to customers.
A supply chain includes information,
communications and processes that bind the
link between the supplier and the customer.
We also judicially notice, as requested by the Examining
Attorney

3 It is settled that the Board may properly take judicial notice of
dictionary definitions. See, e.g., Hancock v. American Steel & Wire
Co. of New Jersey, 203 F.2d 737, 97 USPQ 330, 332 (CCPA 1953) and
University of Notre Dame du Lac v. J. C. Gourmet Food Imports Co.,
Inc., 213 USPQ 594, 596 (TTAB 1982), aff’d, 703 F.2d 1372, 217 USPQ
505 (Fed. Cir. 1983).
Ser. No. 75/262,618
15
in her brief, that The Computer Glossary (8th ed. 1998) lists
the term "link" as variously meaning:
(1) In communications, a line, channel
or circuit over which data is transmitted.
(2) In data management, a pointer
embedded within a record that refers to data
or the location of data in another record.
(3) In programming, a call to another
program or subroutine.
In view thereof, and in light of the following excerpt
of record from applicant's advertising literature for its goods,
Ser. No. 75/262,618
16
the Examining Attorney concludes, with respect to applicant's
argument that the term "SUPPLY CHAIN LINK" is only suggestive of
its goods because such term contains the two readily
recognizable phrases "supply chain" and "chain link," that
(italics in original; footnote omitted):
The term SUPPLY CHAIN is unitary, as used
... on the goods, however, the term CHAIN
LINK is not. Applicant[']s promotional
brochure reveal[s] that the proposed mark
includes the phrase SUPPLY CHAIN, which is
displayed in bright yellow .... That phrase
is in turn "linked" to the term LINK by a
series of dots which provide a virtual
bridge between the phrase SUPPLY CHAIN and
the term LINK. Therefore, [and given the
same dot linkage between the terms SUPPLY
CHAIN and LINK on the specimens of record,]
applicant's argument that consumers would
read CHAIN LINK must fail. Furthermore,
applicant's argument that consumers would
see CHAIN LINK as a unitary phrase is not
supported by any evidence. A "CHAIN LINK"
has no meaning in relation to applicant's
goods. What is fully supported by the ...
record is that the applicant is engaged in
providing "electronic links." Applicant's
brochures reveal that "electronic links give
your supplier up to the second information
on your resupply requirements." In
addition, as applied to computer [software]
goods, the term LINK has a clear and
distinct meaning ... as "a line, channel or
circuit over which data is transmitted" or
"a call to another program or subroutine."
.... For the foregoing reasons, ... the
commercial impression of applicant[']s
proposed mark ... is SUPPLY CHAIN LINK
(emphasis added).
Ser. No. 75/262,618
17
The Examining Attorney, therefore, finds that the term "SUPPLY
CHAIN LINK" "merely describes the function of the applicant's
computer software.
In the present case, it is our view that, when used on
or in connection with applicant's "computer programs for use in
automating tool dispensers, monitoring and reporting on
transactions conducted at tool dispensers, and for linking
individual tool dispensers to internal and external information
centers," the term "SUPPLY CHAIN LINK" immediately describes,
without conjecture or speculation, a significant purpose or
function of such goods, namely, that they provide the supply
chain link necessary for automating, monitoring and reporting on
tool dispenser transactions. While, as the "NEXIS" excerpts and
the dictionary definitions confirm, the term "SUPPLY CHAIN" is a
term of art in the business field which is used to describe both
a single enterprise level of production as well as multiple
layers of suppliers and customers, it is plain that the
interconnected tracking, dispensing and re-supply functions
provided by applicant's computer programs for its automated tool
dispensers operate as part of supply chains for various
processes which feature communications links to generate
production reports and automatically update inventories as to
tool requirements.
Ser. No. 75/262,618
18
Clearly, in light of the fact that the phrase "supply
chain software" has been shown to be a generic term for a
category of computer programs which would include those of the
type offered by applicant, we agree with the Examining Attorney
that purchasers and users of applicant's goods would readily
regard the term "SUPPLY CHAIN LINK" as a combination of the
descriptive terms "SUPPLY CHAIN" and "LINK" rather than an
amalgam of the words "SUPPLY" and "CHAIN LINK." This is borne
out by applicant's specimens of use and advertising literature,
and it is also particularly so since the term "chain link,"
which designates a kind of fencing, has no meaning or
significance in relation to applicant's goods. Thus, to the
knowledgeable and sophisticated customers for applicant's goods,
who would include industrial plant managers and production
logisticians, there is simply nothing in the term "SUPPLY CHAIN
LINK" which, in the context of software designed to link such
elements of a manufacturer's supply chain as automated tool
dispensers so as to monitor production operations and provide
reports, would be incongruous, ambiguous or even suggestive of
other plausible meanings.
Accordingly, because the term "SUPPLY CHAIN LINK"
conveys forthwith a significant function or purpose of
applicant's "computer programs for use in automating tool
dispensers, monitoring and reporting on transactions conducted
Ser. No. 75/262,618
19
at tool dispensers, and for linking individual tool dispensers
to internal and external information centers," such term is
merely descriptive of applicant's goods within the meaning of
the statute.
Decision: The refusal under Section 2(e)(1) is
affirmed.
R. F. Cissel
G. D. Hohein
T. E. Holtzman
Administrative Trademark
Judges,
Trademark Trial and Appeal
Board