Ziebart International Corp.v.Z Tech Rust-proofing, Car Care, & Accessories, LLCDownload PDFTrademark Trial and Appeal BoardJan 13, 2009No. 91158809 (T.T.A.B. Jan. 13, 2009) Copy Citation THIS OPINION IS NOT A PRECEDENT OF THE TTAB Mailed: January 13, 2009 UNITED STATES PATENT AND TRADEMARK OFFICE _______ Trademark Trial and Appeal Board _______ Ziebart International Corp. v. Z Tech Rustproofing, Car Care, & Accessories, LLC _______ Opposition No. 91158809 to Application No. 78149388 filed on July 31, 2002 _______ Robert C. Brandenburg of Brooks Kushman P.C. for opposer. John M. Skeriotis of Brouse McDowell for applicant. _______ Before Walters, Holtzman, and Mermelstein, Administrative Trademark Judges. Opinion by Mermelstein, Administrative Trademark Judge: Applicant seeks registration of the mark for the following services: Preservation, detailing, reconditioning, maintenance and repair services for vehicles; preservation, reconditioning vehicle glass replacement and repair; rustproofing services for vehicles, soundproofing of vehicles, automotive paint repair, interior vacuuming, interior cleaning of seats, carpets, headliners, door panels, dashboards, decks, exterior cleaning polishing, cleaning engines, application of graphics to vehicle body; after market installation on vehicles of truck Opposition No. 91158809 2 bedliners, sunroofs, splash guards, protective moldings, running boards, truck pass-through windows, bug deflectors, van racks, cab extenders, grill guards, luggage racks, burglar alarms, window tinting, trailer hitches, remote vehicle starters, electric door locks and power windows. International Class 37; and Application of protective coatings to prevent road abrasions, applications of protective coatings to interior surfaces, application of protective sealants to exterior painted and non-painted surfaces, and protective film applied to windows. International Class 40.1 Ziebart International Corporation filed an opposition to registration, alleging that applicant’s mark, when used on the identified goods, is likely to cause confusion, to cause mistake, or to deceive in light of its previously used and registered trademarks. Trademark Act § 2(d); 15 U.S.C. § 1052(d). In its notice of opposition, opposer pleads ownership of the following registrations, which are alleged to comprise a family of Z-formative marks: 1 Based upon use of the mark in commerce. First use and first use in commerce: January 1, 2002. The application includes a disclaimer of the exclusive right to use TECH apart from the mark as shown. 2 Although the file of this registration does not contain a formal description of the mark, it is clear from the record of Reg. No. Mark Goods/Services Filing Date 0854367 2 Rustproofing of automotive vehicles. Apr. 25, 1967 0883664 ZEEGARD Rustproofing compounds in the nature of a coating. Jun. 11, 1968 Opposition No. 91158809 3 By its answer, applicant denied the salient allegations of the notice of opposition, and asserted affirmative the registration that the mark consists of a plug, embossed with the letter “Z,” which “is applied by inserting it in an opening in the ... vehicle to indicate that the same has been rustproofed....” 3 The notice of opposition indicates that this registration covers additional goods in International Classes 1 and 3. Although the registration initially issued with such goods, all goods except those listed above were deleted when the registration was renewed in 1999. 4 As in the case of the ‘089 Registration, Opposer refers to goods in International Classes 1 and 2 which were deleted subsequent to registration. 1115089 ZEEGARD Engine paint, rustproofing spray speckling paint and vinyl dye.3 Nov. 7, 1977 1125031 ZEEGARD Preservation and reconditioning services for vehicles. Mar. 31, 1978 1126967 ZEE-GLAZE Protective coatings in the nature of a polish or glaze for automotive surfaces; and Cleaning and polishing, as by glazing, automotive vehicle surfaces. Mar. 31, 1978 1197581 FORMULA Z Automotive rustproofing sealant. Sep. 24, 1980 2248258 Z-LINER Applying protective coatings, namely, spray-on bed liners for vehicles. Aug. 27, 1997 2327348 Z-SHIELD Application of protective film to automotive vehicles. Jun. 29, 1998 1125370 ZIEBART4 Upholstery cleaner, spot lifters, leather and vinyl cleaner, paste wax, cleaning and polishing preparations; and Leather and vinyl sealer; and Rustproofing services for vehicles; preservation and reconditioning services for vehicles. Feb. 8, 1978 1225374 Rustproofing services for vehicles preservation and reconditioning services for vehicles. Dec. 21, 1981 1428776 Vehicle window tinting services. Jun. 23, 1986 Opposition No. 91158809 4 defenses (including res judicata and issue preclusion). Applicant also raised a counterclaim to cancel five of opposer’s pleaded registrations, namely, Registration Nos. 0883664, 1115089, 1125031, 1126967, and 1197581, on the ground that those registrations have been abandoned, or that they were procured or maintained fraudulently. Opposer has denied the allegations set out in the counterclaim. After careful consideration of the record and the arguments of the parties, we dismiss applicant’s counterclaim and grant the opposition. I. Record Pursuant to the Trademark Rule 2.122(b), the record in this case includes the pleadings, the file of applicant’s subject application, and the file of each of opposer’s registrations involved in applicant’s counterclaim. In addition, the record includes the following items: • Opposer’s Notice of Reliance, filed November 18, 2004. This notice of reliance comprises status and title copies of twenty-three registrations (including those pleaded in the notice of opposition) and one application submitted “to establish the Opposer’s family of ‘Z’ marks for use in connection with its automotive rustproofing and reconditioning products and services.” • Applicant’s Notice of Reliance, filed January 3, 2005, including the transcript5 and other documents6 from the 5 Applicant’s motion to use testimony from another proceeding was granted by the Board. Order, Apr. 12, 2006. 6 Applicant’s notice of reliance included proposed findings of fact and conclusions of law, and the court’s opinion. Applicant Opposition No. 91158809 5 record of Ziebart Int’l Corp. v. Bejah Enterp., LLC, 02-01859 (E.D. Ohio)(“Bejah”), submitted to establish applicant’s preclusion defense and for other purposes. The Bejah transcript includes the testimony of the following witnesses: o Frank Soccorsi; o Burl Leslie McGeorge; o John King; o Christopher Stombaugh; and o Kristen McGeorge. • Testimony of Dan Sayen, filed March 27, 2008. • Testimony of Michael Riley, filed April 9, 2008. II. Background The parties to this dispute are not strangers. In two previous proceedings Ziebart contested the right of parties related to applicant to use the Z TECH mark. The two previous disputes resulted in a settlement agreement in one case and a judgment in the other, both essentially permitting continued use of the mark by the defendants. A. Opposer Since 1960, opposer has been in the business of providing goods and services for the protection and enhancement of motor vehicles. Opposer’s services include rustproofing, the application of sealants and protective coatings to automobile paint, glass, and upholstery, and the did not file any of the exhibits that were entered into evidence during the course of the proceeding. Opposition No. 91158809 6 application of spray-on bed liners for trucks, as well as other goods and services providing automotive protection, maintenance, and repair. Under its house mark, ZIEBART, opposer operates at 225 North American7 locations, approximately 28 of which are company-owned. Soccorsi Test. (Bejah Transcript) at 19. B. Applicant Like opposer, applicant offers goods and services directed to the protection and enhancement of motor vehicles, offering many of the same services as opposer. Applicant’s founder, Rich Morgan, was a former Ziebart franchisee in Ohio who, upon ceasing his Ziebart franchise, commenced doing business as Z Tech Rustproofing, Car Care, & Accessories (applicant herein) at the same location. Riley Test. at 44-47. Ziebart had previously sued Morgan over Morgan’s use of the Z Tech trademark. That dispute ended with a settlement agreement under which Morgan paid a “nominal settlement amount, but ... retained the right to use the ‘Z Tech’ trade name.” Bejah at 5. Significantly, that agreement8 7 Opposer did not specify how many locations it operates in the United States. 8 Ziebart’s settlement agreement with Morgan is not in evidence, although it was apparently an exhibit in the Bejah litigation. While opposer filed transcripts of testimony from the Bejah trial, it did not file any of the exhibits admitted during that proceeding. Accordingly, we do not consider the Ziebart/Morgan litigation or the agreement itself beyond what was discussed in the Bejah testimony and the district court’s opinion. Opposition No. 91158809 7 apparently did not prevent Mr. Morgan from continuing to use the Z Tech trademark. Id. at 14. Morgan has licensed others to use the Z Tech mark, and a total of four Z Tech businesses are in operation, including Bejah Enterprises, LLC, the defendant in a former infringement suit brought by Ziebart. The principal of Bejah Enterprises is Burl Leslie McGeorge, a former employee of a Ziebart franchisee in Ohio. When the franchisee decided to retire, Mr. McGeorge explored the possibility of purchasing the franchise and continuing as a Ziebart business. While investigating his options for setting up his own business, Mr. McGeorge came into contact with Rich Morgan. Mr. McGeorge ultimately decided to operate under the Z Tech mark, and paid Morgan for the right to do so. McGeorge commenced operating as Z Tech Rustproofing, Car Care, & Accessories and like Morgan, did so in the same location as the former Ziebart franchise. III. Preliminary Matters A. Evidentiary Objection Before considering the merits of the case, we consider an evidentiary matter raised by applicant.9 As noted, 9 Applicant’s counsel made numerous objections during the testimony of Mr. Riley Sayen, although the basis for the objections were rarely stated. All such objections are waived because they were not argued in applicant’s brief. Kohler Co. v. Baldwin Hardware Corp., 82 USPQ2d 1100 (TTAB 2007)(“In order to preserve an objection that was seasonably raised at trial, a Opposition No. 91158809 8 opposer pleaded ownership of eleven trademark registrations in its notice of opposition, which it alleged to constitute its “family of marks.” During its case-in-chief, however, opposer introduced by notice of reliance status and title copies of twenty-three registrations,10 twelve of which were not pleaded in its notice of opposition. Moreover, Mr. Riley testified to opposer’s use of several unregistered trademarks, which were discussed in opposer’s brief. Opp. Br. at 6. In its responsive brief, applicant objected to consideration of these unpleaded marks and registrations. App. Br. at 8, n.1 (“Opposer’s opposition is only with respect to the marks as filed in its Notice of Opposition.”). In reply, opposer argues that the additional marks and registrations should be considered because “Ziebart ... gave notice of its reliance on its ‘Z’ family of marks as a basis for its opposition.” Opp. Reply Br. at 7, n.3. We agree with applicant. Our cases have long held that it is the responsibility of the plaintiff in an opposition party should maintain the objection in its brief on the case.”), citing Hard Rock Café Int’l (USA) Inc. v. Elsea, 56 USPQ2d 1504, 1507 n.5 (TTAB 2000); Reflange Inc. v. R-Con Int’l, 17 USPQ2d 1125, 1126 n.4 (TTAB 1990). 10 Opposer also filed a copy of a pending application. We do not consider opposer’s application as a basis for opposition because a pending application is proof only that such an application has been filed. E.g., McGraw-Hill Int’l Corp. v. Johnston Exp. Publ’g Co., 102 USPQ 435 (Comm’r 1954)(opposer may not rely upon its pending application as proof of use and ownership of a mark); Penetred Corp. v. Uniroyal, Inc., 162 USPQ 620 (TTAB 1969). Opposition No. 91158809 9 proceeding to plead the trademarks (registered or not) which constitute the basis of a claim of likelihood of confusion. E.g. Monorail Car Wash, Inc. v. McCoy, 178 USPQ 434, 436, n.1 (TTAB 1973); Crown Zellerbach Corp. v. Gulf States Paper Corp., 150 USPQ 700, 701, n.2 (TTAB 1966). This is particularly so with trademark registrations, because an applicant has a right to assert as a defense, a counterclaim to cancel any registration pleaded by the opposer. Trademark Rule 2.106(b)(2). Whatever may be the general requirements of notice pleading with respect to other matters under the Federal Rules, trademark registrations must be specifically pleaded: “A pleaded registration is a registration identified by number and date of issuance in an original notice of opposition or in any amendment thereto....” Trademark Rule 2.106(b)(1). Here, the notice of opposition clearly put applicant on notice that opposer intended to rely on a “family of marks” theory, and that opposer asserted eleven registrations comprising that family. But a “family of marks” is just a theory, not a ground for opposition. That is to say, without notice of the marks comprising the family and allegedly barring registration, an applicant is not on sufficient notice of the basis for opposer's likelihood of confusion claim, and is at a disadvantage in mounting a defense. Indeed, applicant in this case filed a Opposition No. 91158809 10 counterclaim against several of opposer’s pleaded registrations, and may have included others, had they been pleaded. By the time opposer introduced evidence of its additional registered and unregistered marks, the pleadings had long been closed, discovery was over, and trial was underway. Accordingly, we will not consider those of opposer’s registrations and common-law trademarks which were not set out in its notice of opposition.11 B. Summary Judgment As a defense, applicant pleaded the preclusive effect of the opinion and judgment issued in the Bejah case, a prior civil matter involving the parties to this opposition or their privies. Applicant subsequently filed a motion for summary judgment arguing that it was entitled to judgment based on the prior proceeding by both issue and claim preclusion. By order dated January 11, 2008, the Board denied applicant’s motion under both theories, although applicant again raised the issue of collateral estoppel in its trial brief. App. Br. at 4-5. Because it appears that the reasoning underlying our disposition of applicant’s motion for summary judgment was based on a factual error by 11 While applicant could have objected to any testimony regarding the unpleaded trademarks or filed a motion to strike opposer’s notice of reliance upon them, applicant did not waive its objection by failing to do so. Unlike, for instance, an objection to the form of a question, this objection could not have been cured by opposer at the time the evidence was Opposition No. 91158809 11 the Board, we will revisit the issue. The basis for our denial of applicant’s motion for summary judgment was essentially that “[i]n the civil action, ... the district court found only that applicant’s Z TECH mark is ‘dissimilar’ to opposer’s ZIEBART mark, a mark which is not at issue in this proceeding....” Order at 7 (emphasis added). However, as can be seen from our review of the marks pleaded by opposer, this statement is plainly incorrect: Opposer pleaded ownership of Registration No. 1125370 (ZIEBART (typed)), and Registration Nos. 1225374 and 1428776 (variations on the ZIEBART and shield design). As will be seen, while this error would not have changed the fate of applicant’s motion, it is relevant for our consideration in rendering a final decision. With respect to res judicata, or claim preclusion, applicant’s motion would have been denied in any event, because the district court’s decision was based on a different set of transactional facts. The prior case was a trademark infringement action and – as our reviewing court has cautioned – analysis of likelihood of confusion in an infringement case is often quite different than it is when considering registration, which is our task in this proceeding. Jet Inc. v. Sewage Aeration Syst., 223 F.3d proffered. See generally, TRADEMARK TRIAL AND APPEAL BOARD MANUAL OF PROCEDURE (“TBMP”) § 707.03(a) (2d ed. rev. 2004). Opposition No. 91158809 12 1360, 55 USPQ2d 1854, 1857-58 (Fed. Cir. 2000); Mayer/Berkshire Corp. v. Berkshire Fashions Inc., 424 F.3d 1229, 76 USPQ2d 1310, 1313 (Fed. Cir. 2005); Nasalok Coating Corp. v. Nylok Corp., 522 F.3d 1320, 86 USPQ2d 1369, 1373-74 (Fed. Cir. 2008). As noted by applicant, the district court reached its judgment in part because no evidence of actual confusion was provided, despite Ziebart’s assertion that they had actual evidence; ... [the] parties, although selling similar goods, do so in different geographic areas; ... there was no intent to purposely copy; and ... there was no evidence that either party would significantly expand their franchise markets. App. Br. at 5. While such findings are relevant to a determination of infringement and damages, they are not relevant, or at best, are of minor importance, to a determination of applicant’s right to register its mark vis-à-vis opposer’s ZIEBART mark.12 Accordingly, applicant’s motion for summary 12 First, the issue here is the likelihood of confusion, not actual confusion. The absence of evidence of actual confusion is only relevant in a Board proceeding if circumstances surrounding the parties’ use of their marks are such that confusion, if likely, would have occurred. However, the district court found that the parties did not use their marks in the same geographic area, making it less probable that any likelihood of confusion would have manifested itself in actual confusion. Second, applicant here is seeking a trademark registration which is national in scope. In such a case, it is completely irrelevant that the parties’ current actual business activities are not in the same geographical area, or that the parties do not intend to expand their current areas of operation. Opposition No. 91158809 13 judgment was properly denied with respect to applicant’s res judicata defense. On the other hand, the district court specifically determined that applicant’s Z TECH mark is dissimilar to opposer’s ZIEBART MARK. The determination of that issue is entitled to preclusive effect as a matter of collateral estoppel, or issue preclusion. As discussed in the January 11, 2008, order, there are four prerequisites to a finding of issue preclusion: 1. The issues to be concluded are identical to those involved in the prior action; 2. In that action the issues were raised and “actually litigated”; 3. The determination of those issues in the prior action was necessary and essential to the resulting judgment; and 4. The party precluded ... was fully represented in the prior action. Mother’s Rest. Inc. v. Mama’s Pizza, Inc., 723 F.2d 1566, 221 USPQ 394, 397 (Fed. Cir. 1983). The district court’s determination of the issue of the similarity of the Z TECH and ZIEBART marks was identical to what would be required in this case. The Court considered the marks in and of themselves, and without reference to trade dress or other factors not relevant in our Third, although bad faith adoption and registration of a mark has been – in rare cases – a factor to be considered in determining the right to register, even the purest of intentions Opposition No. 91158809 14 proceedings. Moreover, the similarity of the marks is the sine qua non of likelihood of confusion, and was clearly both raised and necessary to any determination in the prior proceeding. Finally, it appears that opposer was fully represented in the prior matter. Inasmuch as the district court in Bejah clearly determined that “‘Z Tech’ is dissimilar to ‘Ziebart,’” Bejah Opinion at 11-12, we are bound by that determination in this proceeding. Because the ZIEBART marks constitute only several of the marks relied on by opposer in this proceeding, denial of applicant’s motion for summary judgment on this basis was correct; clearly opposer’s claims with regard to its other marks were not precluded.13 Nonetheless, upon final consideration, we will give effect to the district court’s final determination of this factual issue in our analysis.14 do not justify registration if a likelihood of confusion would result. 13 We reject applicant’s contention that “if [o]pposer could not present evidence in a federal court bench trial supporting a finding of a likelihood of confusion as to its most well-known mark, Ziebart, it cannot support such a likelihood of confusion with its other, less-known marks.” Appl. Br. at 5, 15-16. The fact is that the district court did not specifically consider the likelihood of confusion between Z TECH and opposer’s marks other than the ZIEBART marks. Moreover, fame is not a prerequisite to a finding of likelihood of confusion. Thus, even if opposer’s other marks are not as famous or as well-known as opposer’s ZIEBART marks, we are not precluded thereby from finding that they bar registration of applicant’s mark under Trademark Act § 2(d). 14 As a practical matter, the district court’s determination has little effect on our ultimate decision herein. Of opposer’s pleaded registrations, the marks in the ZIEBART registrations are the least similar to the mark in the subject application. Opposition No. 91158809 15 Finally, although not specifically relied upon in its motion for summary judgment, applicant points in its trial brief to the district court’s determination that “the syllable ‘Zee’” is common. App. Br. at 5, 13. The district court accordingly found Z TECH to be a weak mark in comparison with ZIEBART: “Ziebart” is fanciful while “Z Tech” [is] more generic because the “Z Tech” mark’s primary significance describes the type of product rather than its producer. Ziebart argues that both “Ziebart” and “Z Tech” use the similar sound “Zee.” But as McCarthy explains: “if the common element of conflicting marks is a word that is ‘weak’ then this reduces the likelihood of confusion. A portion of a mark may be ‘weak’ in the sense that such portion is descriptive, highly suggestive, or is in common use by many other sellers in the market.” The syllable “Zee” is commonly used in the English language and even in the automotive industry. Therefore Plaintiff Ziebart fails to show that “Ziebart” is similar to “Z Tech.” Bejah Opinion at 12 (citations omitted).15 Although all of opposer’s registrations relevant to this proceeding were in evidence in Bejah, see Bejah Opinion n.3, we note again that the district court focused its analysis and opinion on opposer’s ZIEBART marks, making no specific findings as to opposer’s ZEE- or Z- formative marks. While the question is a close one, we conclude that 15 The basis for the district court’s determination that “Zee” is commonly used in English and in the automotive industry is Opposition No. 91158809 16 the difference in focus renders this finding an inappropriate subject for issue preclusion. As discussed, we accept the district court’s finding that Z TECH is dissimilar to ZIEBART. But the district court did not compare applicant’s mark to any of opposer’s other marks, nor did it find that any of opposer’s marks are weak. Because such issues were not actually decided, we conclude that the issue of the relative strength of the marks was not precluded by the court’s determination in Bejah. See Sharp Kabushiki Kaisha v. ThinkSharp Inc., 79 USPQ2d 1376, 1378 (Fed. Cir. 2006) (issue preclusion “cannot apply” to issues which were not actually “litigated and decided.”). IV. Discussion A. Applicant’s Counterclaims We consider first applicant’s counterclaims to cancel five of opposer’s pleaded registrations. Schieffelin & Co. v. The Molson Cos. Ltd., 9 USPQ2d 2069, 2071 (TTAB 1989) (“Because the validity of opposer's pleaded registrations has been made an issue as a result of applicant's counterclaims, we ... consider the evidence and arguments relating to those counterclaims before turning to the issue of likelihood of confusion in the opposition proceeding.”) unclear. This issue was not the subject of any of the testimony appearing in the transcript of record from the Bejah case. Opposition No. 91158809 17 With respect to each involved registration, applicant alleges that opposer has made no use of the mark ... in connection with the goods/services as listed within the ... registration for at least three ... consecutive years preceding the filing of this counterclaim.... As a result of opposer’s failure to use the ... mark with intent not to resume such use, the ... mark ... has become abandoned.... On information and belief, the ... mark was procured or continued fraudulently and, as such, the mark should be cancelled. Answer and Counterclaim. Opposer denied each of the allegations of applicant’s counterclaims. We need not discuss the merits of applicant’s counterclaims because applicant made no mention in its brief of opposer’s alleged nonuse, abandonment, and fraud. Although opposer notes in its reply brief (which also served as opposer’s brief in response to the counterclaim) that applicant failed to present any evidence or argument in support of its counterclaim, Opp. Reply at 3, applicant did not file a reply brief in response to opposer’s arguments and in support of its counterclaims. Because applicant failed to argue its counterclaims, we find that those claims have been waived. Corporacion Habanos S.A. v. Guantanamera Cigars Co., 86 USPQ2d 1473, 1474, n.2 (TTAB 2008)(descriptiveness claim waived); Cerveceria India Inc. v. Cerveceria Centroamericana, S.A., Opposition No. 91158809 18 10 USPQ2d 1064, 1066, n.4 (TTAB 1989)(affirmative defenses waived); J.S. Paluch Co., Inc. v. Irwin, 215 USPQ 533, 536, n.4 (TTAB 1982)(counterclaim of abandonment waived). Accordingly, each of the counterclaims is dismissed. B. Standing and Priority Opposer made its pleaded registrations of record, thus establishing its standing to oppose registration of applicant’s mark. See Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842 (Fed. Cir. 2000); Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185 (CCPA 1982). Moreover, because opposer’s pleaded registrations are of record, priority is not an issue with respect to opposer’s likelihood of confusion claims. King Candy Co. v. Eunice King’s Kitchen, Inc., 496 F.2d 1400, 182 USPQ 108 (CCPA 1974). C. Opposer’s Claim of Likelihood of Confusion Our determination under Trademark Act § 2(d) is based on an analysis of all of the probative facts in evidence that are relevant to the factors bearing on the likelihood of confusion issue. See In re E.I. du Pont de Nemours and Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973). See also Palm Bay Imp., Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689 (Fed. Cir. 2005); In re Majestic Distilling Co., Inc., 315 F.3d 1311, 65 USPQ2d 1201 Opposition No. 91158809 19 (Fed. Cir. 2003); In re Dixie Rests. Inc., 105 F.3d 1405, 41 USPQ2d 1531 (Fed. Cir. 1997). In considering the evidence of record on these factors, we keep in mind that “[t]he fundamental inquiry mandated by Section 2(d) goes to the cumulative effect of differences in the essential characteristics of the goods [or services] and differences in the marks.” Federated Foods, Inc. v. Fort Howard Paper Co., 544 F.2d 1098, 192 USPQ 24, 29 (CCPA 1976); In re Azteca Rest. Enters., Inc., 50 USPQ2d 1209 (TTAB 1999). 1. Family of Marks Opposer pleaded and argued that it “has developed a family of “Z” marks for use in connection with its automotive rustproofing and reconditioning products and services.” Notice of Opp. ¶ 2; Opp. Br. at 10. “A family of marks is a group of marks having a recognizable common characteristic, wherein the marks are composed and used in such a way that the public associates not only the individual marks, but the common characteristic of the family, with the trademark owner.” J&J Snack Foods Corp. v. McDonald's Corp., 932 F.2d 1460, 18 USPQ2d 1889, 1891 (Fed. Cir. 1991). The doctrine thus recognizes trademark rights in the family “surname,” i.e., a distinctive common element shared by its members. Opposition No. 91158809 20 But to justify recognition of such rights, the proponent must do more than merely prove ownership of the individual members of its asserted family. “Simply using a series of similar marks does not of itself establish the existence of a family. There must be a recognition among the purchasing public that the common characteristic is indicative of a common origin of the goods.” J&J Snack Foods, 18 USPQ2d at 1891. “Recognition of the family is achieved when the pattern of usage of the common element is sufficient to be indicative of the origin of the family. In addition, any evidence pertaining to consumer reaction and exposure to the family is probative of the association of common ownership.” 7-Eleven Inc. v. Wechsler, 83 USPQ2d 1715, 1719 (TTAB 2007), citing Witco Chem. Co. v. Chemische Werke Witten GmbH, 158 USPQ 157, 160 (TTAB 1968)(internal citation omitted). Although opposer has submitted evidence of its ownership of several registrations for Z-, ZEE-, or Zie- formative marks, opposer has submitted no evidence that these marks have been used in such a way as to promote recognition of the marks’ common element as a family surname, or that the relevant consumers actually recognize the surname as an indication of source. While some of the advertisements made of record indicate use of opposer’s house mark, ZIEBART, with one or more of the other marks Opposition No. 91158809 21 pleaded in the notice of opposition, none of them points out the family relationship among the marks or uses them in such a way as to make that relationship clear to the targeted consumer.16 Accordingly, we conclude that opposer has not demonstrated its ownership of a family of Z-formative marks. Therefore, we must consider whether a likelihood of confusion exists with respect to the individual marks pleaded in the notice of opposition. 2. The Fame Of The Prior Marks (Sales, Advertising, Length of Use) We begin with a discussion of the fame of opposer’s marks because fame, when found, is entitled to great weight in a likelihood of confusion analysis. Recot Inc. v. Becton, 214 F.3d 1322, 54 F.2d 1894 (Fed. Cir. 2000); Kenner Parker Toys, Inc. v. Rose Art Indus., 963 F.2d 350, 22 USPQ2d 1453 (Fed. Cir. 1992). Opposer contends that 16 We note that opposer has provided little information about the dissemination of the proffered advertising material, including its target audience, when it was circulated, and in what volume. In the absence of such evidence, even if the materials did show use as a family, it would be difficult to infer that the relevant consumer actually recognizes opposer’s rights in a family of marks. In considering opposer’s evidence, we have given little weight to materials which are distributed to opposer’s franchisees, as opposed to the ultimate consumers of opposer’s services. There is no argument or evidence indicating that opposer’s franchisees are likely to be confused by applicant’s use of its Z TECH mark. To the contrary, the testimony and argument of record relates to confusion among the ultimate customers for rustproofing and automotive enhancement services, whether provided directly by opposer or through its franchisees. Opposition No. 91158809 22 “Ziebart has serviced millions of customers. It continues to impart the fame of its Z marks even after the sale by placing stickers and plugs on the vehicle that continue to show the Z formative marks.” Opp. Br. at 11. We find opposer’s assertions that its marks are famous to be unsupported by the record. Mr. Riley testified that “in the late ‘80’s/early ‘90’s [opposer] processed [its] millionth customer, and since then ... there’s been millions of them.” Riley Test. at 11. He further testified that opposer places a ZIEBART shield window sticker17 on each vehicle it processes, and also uses an average of 36 “Z” plugs (see Registration No. 0854367, supra) on each vehicle it rustproofs. The plugs are used by opposer to seal holes, a number of which must be drilled in an automobile body in order to apply rustproofing to interior spaces. The plugs are either yellow or black, Soccorsi Test. at 22, apparently made of a plastic or rubbery material, with the words “RUST PROOF ZIEBART” embossed on their surface, surrounding a “Z” inside a shield and helmet device. The evidence of record indicates that several of them may be visible on the inner part of the door when the door is open, although it is not 17 While this sticker is not in evidence, opposer identifies it as bearing the “Ziebart shield” design, which is featured on Opp. Exh. 2. Riley Test. at 10-11. The design appears to be identical to the drawing in Reg. No. 1225374, i.e., the word ZIEBART inside a shield and helmet design. Opposition No. 91158809 23 at all clear that all of the plugs used on a vehicle are visible when the vehicle is in normal use. Nonetheless, we note that the plugs which are visible on the vehicle are small (only five-eights of an inch, Reilly Test. at 14), and judging from the evidence of record, opposer’s Z Shield design is smaller still. The mark itself may be difficult to discern, as it is embossed without color on the yellow or black material. See Opp. Exh. 3; Reg. No. 0854367; supra note 2. A photograph of the plug (enlarged) appears in evidence: Despite opposer’s testimony that millions of such plugs have been used over the history of opposer’s business, we conclude that neither the entire mark that appears on them, nor the “Z” element of that mark, make a strong impression on opposer’s customers. Given their size and location, during normal use of a treated vehicle, the marks on the plugs which are visible are unlikely to be noticed at all. Further, while a million or more customers may sound like a considerable number, those sales have been spread out over many years. Although long use is a factor which can Opposition No. 91158809 24 support a finding of fame, the issue we must decide is whether opposer’s marks are famous now. Nonetheless, opposer has not provided a yearly breakdown for its customer numbers, and we are thus unable to determine the level of opposer’s business in the recent years, which are most relevant. Nor has opposer provided any evidence of its sales or advertising expenditures for such years. Even giving generous credit to its vague testimony, opposer has not provided a meaningful context for its figures, such as evidence of opposer’s market share for services provided in connection with the mark. As the Federal Circuit has stated, “[r]aw numbers of product sales and advertising expenses may have sufficed in the past to prove fame of a mark, but raw numbers alone in today’s world may be misleading.... Consequently, some context in which to place raw statistics is reasonable.” Bose Corp. v. QSC Audio Prods., 293 F.3d 1367, 63 USPQ2d 1303, 1309 (Fed. Cir. 2002). In view of the extreme deference that is accorded to 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 a plaintiff asserting that its marks are famous to clearly prove it. We cannot say that opposer has met its burden on this record. For the remainder of our likelihood of confusion Opposition No. 91158809 25 analysis, we will focus primarily on those of opposer’s registrations which can be considered closest to the mark and services in the subject application, namely, Z-LINER, (‘258 Registration) and Z-SHIELD (‘348 Registration).18 3. The Similarity or Dissimilarity and Nature of the Services It is undisputed that the parties’ services are identical or closely related. Specifically, the services set out in opposer’s ‘258 Registration, “applying protective coatings, namely, spray-on bed liners for vehicles,” are identical to the “after market installation on vehicles of truck bedliners” in the subject application. Likewise, “application of protective film to automotive vehicles” in opposer’s ‘348 Registration is identical to the “application of protective coatings to prevent road abrasions, applications of protective coatings to interior surfaces, application of protective sealants to exterior painted and non-painted surfaces, and protective film applied to windows,” recited in the Z Tech’s application. Although applicant argues that similarity of the services is not dispositive, App. Br. at 15, we find that this factor supports a finding of likelihood of confusion. 18 As noted, opposer did not compare any of its individual pleaded registrations to the mark in the subject application, relying solely on its family of marks argument. Accordingly, our discussion is necessarily confined to our opinion on the matter, unaided by any argument by opposer. Opposition No. 91158809 26 4. The Similarity Or Dissimilarity Of The Marks In comparing marks to ascertain whether confusion is likely, we consider the marks’ appearance, sound, meaning and commercial impression. Palm Bay, 73 USPQ2d at 1692. “[T]he test is not whether the marks can be distinguished when subjected to a side-by-side comparison, but rather whether the marks are sufficiently similar in terms of their overall commercial impression so that confusion as to the source of the goods offered under the respective marks is likely to result.” H.D. Lee Co. v. Maidenform Inc., 87 USPQ2d 1715, 1727 (TTAB 2008). While we must consider the marks in their entireties, it is entirely appropriate to accord greater importance to the more distinctive elements in the marks. As the Court of Appeals for the Federal Circuit observed, “in articulating reasons for reaching a conclusion on the issue of confusion, there is nothing improper in stating that, for rational reasons, more or less weight has been given to a particular feature of a mark, provided the ultimate conclusion rests on consideration of the marks in their entireties. Indeed, this type of analysis appears to be unavoidable.” In re Nat’l Data Corp., 753 F.2d 1056, 224 USPQ 749, 751 (Fed. Cir. 1985). As noted, there is no question that the parties’ services, customers, and channels of trade are essentially Opposition No. 91158809 27 identical. This finding is important, because “[w]hen marks would appear on virtually identical goods or services, the degree of similarity necessary to support a conclusion of likely confusion declines.” Century 21 Real Estate Corp. v. Century Life of Am., 970 F.2d 874, 23 USPQ2d 1698, 1701 (Fed. Cir. 1992). Opposer’s Z-LINER and Z-SHIELD marks begin with the letter “Z,” followed by a word suggestive or descriptive of the identified services, namely “LINER” in the case of the registration for application of spray-on bed liners and “SHIELD” in the registration for application of a protective film.19 Similarly, applicant’s mark also begins with a “Z,” followed by the term “TECH,” which has been disclaimed and “indicates,” as the examining attorney asserted in requiring the disclaimer, “that applicant is providing a technical service.” Office Action Mar. 27, 2003. While we consider marks as a whole, it is often said that descriptive or highly suggestive terms are less distinctive, and carry less source-identifying significance than arbitrary terms. In re Dixie Restaurants Inc., 105 19 In this regard, we take judicial notice of the definition of “shield” as, inter alia, “a person or thing that protects.” RANDOM HOUSE UNABRIDGED DICTIONARY (2006) (online ed. Dictionary.com Unabridged (v 1.1) Dec. 17, 2008)). The Board may take judicial notice of dictionary definitions, Univ. of Notre Dame du Lac v. J.C. Gourmet Food Imp. Co., 213 USPQ 594 (TTAB 1982), aff'd, 703 F.2d 1372, 217 USPQ 505 (Fed. Cir. 1983), including online dictionaries that exist in printed format or have regular fixed editions. In re Red Bull GmbH, 78 USPQ2d 1375, 1377 (TTAB 2006). Opposition No. 91158809 28 F.3d 1405, 41 USPQ2d 1531, 1533-34 (Fed. Cir. 1997). We accordingly consider the arbitrary “Z” element to be the dominant portion of both of opposer’s marks and of applicant’s mark, and to that extent, the marks are identical. Moreover, the letter "Z," as the first element of each mark, imparts the greatest impression. Presto Prod., Inc. v. Nice-Pak Prod. Inc., 9 USPQ2d 1895, 1897 (TTAB 1988)(“it is often the first part of a mark which is most likely to be impressed upon the mind of a purchaser and remembered.”); see also Palm Bay, 73 USPQ2d at 1692 (“The presence of this strong distinctive term as the first word in both parties’ marks renders the marks similar, especially in light of the largely laudatory (and hence non-source identifying) significance of ROYALE.”). While we recognize that there are differences in the marks at issue, we conclude that both Z-LINER and Z-SHIELD are nonetheless substantially similar to Z TECH because of the common use therein of the Z prefix, and the fact that the marks are similar in format and structure. This factor thus supports a finding of likelihood of confusion. 4. The Similarity or Dissimilarity of Established, Likely-To-Continue Trade Channels Opposer correctly points out that the parties share the same trade channels. Inasmuch as the opposer’s registrations are for essentially identical services, Opposition No. 91158809 29 without limitations as to classes of customers or channels of trade, we must assume that the parties’ services are sold in identical channels of trade and to the same customers. In re Elbaum, 211 USPQ 639, 640 (TTAB 1981), citing Kalart Co., Inc. v. Camera-Mart, Inc., 119 USPQ 139 (CCPA 1958). This factor supports a finding of likelihood of confusion. 5. The Nature and Extent of any Actual Confusion Opposer argues that Mr. Riley’s testimony supports a finding of actual confusion, while applicant argues that there is no evidence of actual confusion, and that this fact supports its case. We find Mr. Riley’s testimony to be highly ambiguous on the issue of actual confusion. Much of his testimony appeared to be directed to claims that applicant used Ziebart’s trade dress and opposer’s ZIEBART mark, and Mr. Riley appeared to be testifying largely from his knowledge of documents in someone else’s possession and not in the record. See Riley Test. at 47-49, 65-72. The only time Mr. Riley was specific about confusion involving applicant’s use of the Z TECH mark, he was unable to provide details, stating that the information was in the hands of two franchisees, Jim Williams and Dan Wolhnie, whose testimony is not in the record. Riley Test at 71-72. Nonetheless, the issue before us is the likelihood of Opposition No. 91158809 30 confusion, not actual confusion. Herbko Int’l Inc. v. Kappa Books Inc., 308 F.3d 1156, 64 USPQ2d 1375, 1380 (Fed. Cir. 2002)(actual confusion not required). While evidence of actual confusion is highly probative of this issue, its absence is not, unless it is accompanied by evidence demonstrating that in light of the parties’ actual business activities, confusion, if likely, would have occurred. See Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1847 (Fed. Cir. 2000). Inasmuch as there is scant evidence in the record of the parties’ sales or advertising activities under the marks at issue, we cannot conclude on the state of this record that any lack of confusion is a significant factor to be considered. We accordingly consider this factor to be neutral. V. Conclusion We have carefully considered all the evidence and argument presented by the parties. We conclude that applicant’s mark, Z TECH (stylized) when used in connection with the identified services, is likely to cause confusion under Trademark Act § 2(d), at least with respect to the marks in opposer’s Z-LINER and Z-SHIELD registrations. While the marks at issue are not identical, they nonetheless share the same first term – “Z” – and employ the same overall structure (“Z” followed by a suggestive or Opposition No. 91158809 31 descriptive term). We find these marks to be sufficiently similar that their use in connection with essentially identical services, offered to the same class of consumers, and through the same channels of trade, is likely to cause confusion. Decision: The opposition is sustained. Applicant’s counterclaims are dismissed. Copy with citationCopy as parenthetical citation