DLR Licensing, LLCv.Carnival Corpora-tionDownload PDFTrademark Trial and Appeal BoardOct 22, 2014No. 92057150 (T.T.A.B. Oct. 22, 2014) Copy Citation Goodman Mailed: October 22, 2014 Cancellation No. 92057150 DLR Licensing, LLC v. Carnival Corporation Before Seeherman, Wolfson and Masiello, Administrative Trademark Judges. By the Board: Carnival Corporation (hereafter “Respondent”) owns Registration No. 40302941 for the mark FUN FOR ALL. ALL FOR FUN. in standard character form for the following services: International Class 39: Cruise ship services; Travel agency services, namely, making reservations and bookings for transportation; Organization of excursions; Travel, excursion and cruise arrangement; International Class 41: Entertainment services, namely, casino services, organizing and conducting stage shows, nightclub shows, contests, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; Entertainment in the nature of broadcasting or live presentation of motion picture films; Satellite television programs and satellite radio programs featuring comedy, drama, variety, sports and fashion; entertainment in the nature of 1 Issued September 27, 2011. UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 General Contact Number: 571-272-8500 THIS OPINION IS NOT A PRECEDENT OF THE TTAB Cancellation No. 92057150 2 simulcast presentation of live parties, sporting contests, interactive video games, deck board games, musical concerts, theatrical and variety shows and performances; Entertainment, namely, a continuing variety, comedy, sports, musical concert shows broadcast over television, satellite, audio, and video media; and International Class 43: Hotel services; Travel agency services, namely, making reservations and bookings for temporary accommodations; Bar and cocktail lounge services; Restaurant services; Catering services; Child care services. Petitioner, DLR Licensing, LLC (hereafter “Petitioner”), filed a petition for cancellation on April 25, 2013 seeking to cancel the registration as to the Class 41 services and the following services in Class 43: “Bar and cocktail lounge services; Restaurant services; Catering services; Child care services” (hereafter all of the Class 41 services and the enumerated services in Class 43 will be referred to as the “Challenged Services”) on the grounds of abandonment and fraud.2 In lieu of an answer, Respondent filed a motion to dismiss to which Petitioner filed an amended pleading (first amended petition for cancellation). The Board denied the motion to dismiss and accepted the first amended petition for cancellation as the operative 2 With respect to the grounds for cancellation in Class 43, the claim seeking to partially cancel certain services on the ground of abandonment would, if granted, result in deletion only of the abandoned services. Harry Winston, Inc. v. Bruce Winston Gem Corp., 111 USPQ2d 1419, 1434 (TTAB 2014). On the other hand, with respect to the fraud claim, while a finding of fraud in connection with obtaining or maintaining the registration for less than all services in a class would normally result in cancellation of the entire class, see G&W Laboratories Inc. v. GW Pharma Ltd., 89 USPQ2d 1571, 1573 (TTAB 2009), here Petitioner is seeking to only partially cancel the registration in Class 43, and therefore, if successful, it still would not be entitled to more than the relief it seeks. As a result, if Petitioner is able to show fraud with respect to one or some of the Challenged Services in class 43, all of the Challenged Services in Class 43 would be deleted from the registration. Cancellation No. 92057150 3 pleading.3 In its answer to the first amended petition for cancellation, Respondent denied the salient allegations. On April 21, 2014, Respondent filed a motion for summary judgment on the abandonment and fraud grounds. On May 23, 2014, Petitioner timely filed a response to Respondent’s motion for summary judgment and a cross- motion for summary judgment on the grounds of abandonment, fraud and, to the extent that such claim is different from the ground of abandonment, that the registration is void ab initio with respect to the Challenged Services, and that the Challenged Services be deleted or, alternatively, restricted pursuant to Section 18. The cross-motion for summary judgment was accompanied by a motion for leave to amend and the proposed pleading (second amended petition for cancellation) to add a void ab initio and a Section 18 claim with respect to the Challenged Services. Respondent filed a combined reply in support of its motion for summary judgment, a response to Petitioner’s cross-motion for summary judgment and a response to Petitioner’s motion for leave to amend. In its response to the motion for leave to amend, Respondent has relied on the arguments made and evidence provided on summary judgment with respect to the void ab initio claim. Additionally, Respondent has made merits-based arguments as to the Section 18 claim, accompanied by exhibits. We construe Respondent’s response to the motion for leave to amend in part as its opposition and cross- 3 Respondent filed a second motion to dismiss that was denied by the Board. Cancellation No. 92057150 4 motion (void ab initio claim) to Petitioner’s cross-motion for summary judgment on the proposed claims. Motion for Leave to Amend Under Fed. R. Civ. P. 15(a), leave to amend pleadings shall be freely given when justice so requires. Consistent therewith, the Board liberally grants leave to amend pleadings at any stage of the proceeding, unless the Board finds that there has been undue delay that would prejudice the nonmoving party, that the moving party has acted in bad faith, or that the amendment would be futile. Foman v. Davis, 371 U.S. 178, 182 (1962); W.R. Grace & Co. v. Arizona Feeds, 195 USPQ 670, 673 (Comm’r Pat. 1977) (citing Foman v. Davis). To the extent the Section 18 claim seeks to restrict the Challenged Services based on channels of trade limitations that are alleged to avoid confusion, we find the claim has been sufficiently pleaded. Eurostar Inc. v. “Euro-Star” Reitmoden GmbH & Co. KG, 34 USPQ2d 1266, 1270-71 (TTAB 1994). To the extent that Petitioner relies on Section 18 to delete the Challenged Services on the basis of abandonment due to three years non-use, such a claim is a straight-forward abandonment claim rather than a claim under Section 18, and therefore the abandonment ground as originally pleaded is adequate. DAK Industries Inc. v. Daiichi Kosho Co., 35 USPQ2d 1434, 1438 (TTAB 1995); see also Johnson & Johnson v. Obschestvo s Ogranitchennoy, 104 USPQ2d 2037, 2039 (TTAB 2012). Accordingly, leave to Cancellation No. 92057150 5 amend is denied to add a Section 18 claim to delete certain services based on abandonment, and we strike this portion of the pleading, namely, paragraphs 20 and 22 and the wording “proposed deletion” from paragraph 24. With respect to the “void ab initio” claim, we construe this claim as one of non-use and will, going forward, refer to it as a “non-use ground.” We find the pleading of this ground sufficient. Based on the allegations in the proposed pleading, we treat the claim as seeking cancellation of the registration as to the Challenged Services on grounds of non-use at the time the application was filed. Respondent has not argued that it will be prejudiced by the addition of the Section 18 claim to restrict the Challenged Services. As to the non-use claim, Respondent argues prejudice but alternatively submits that “in the interest of judicial economy, Petitioner’s claim of [non-use] could be permitted and immediately dismissed on summary judgment.” We find no prejudice in allowance of these amendments. Accordingly, leave to amend is granted to add the non-use claim as to the Challenged Services and to add the Section 18 claim for a restriction as to the Challenged Services. Leave to amend is denied to add the Section 18 claim based on abandonment. Cross-Motions for Summary Judgment Cancellation No. 92057150 6 We now turn to the cross-motions for summary judgment on the abandonment, fraud, non-use and Section 18 grounds.4 Petitioner’s evidence on summary judgment consists of the declaration of its counsel, Jessica Bromall Sparkman, (hereafter “Sparkman Declaration”) and accompanying exhibits. Respondent’s evidence on summary judgment with respect to the abandonment, fraud and non-use grounds consists of the declaration of James Berra, Chief Marketing Officer & Senior Vice President, Marketing, (hereafter “Berra Declaration”) and accompanying exhibits, and the declaration of Adam David Mandel, counsel for Respondent, (hereafter “Mandel Declaration”) and accompanying exhibits. Respondent’s evidence with respect to the Section 18 claim consists of TESS printouts of third-party registrations. A party is entitled to summary judgment when it has demonstrated that there is no genuine dispute as to any material fact and that it is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). In reviewing a motion for 4 To the extent that we have considered any new claims set forth in the second amended petition for cancellation, because no answer to the amended pleading has been filed, we deem such new allegations to be denied for purposes of determining Petitioner’s summary judgment motion. TBMP Section 528.07(a) (2014). In its answer to the first amended petition for cancellation, Respondent asserted the affirmative defense of failure to state a claim. However, Respondent did not seek summary judgment on this defense nor did it raise the defense in response to Petitioner’s motion for summary judgment. We consider the defense waived. See Diversy Lever, Inc. v. Ecolab, Inc., 191 F.3d 1350, 1353, 52 USPQ2d 1062, 1064 (Fed. Cir. 1999) (affirmative defense must be raised in response to a summary judgment motion or it is waived). Cancellation No. 92057150 7 summary judgment, the evidentiary record and all reasonable inferences to be drawn from the undisputed facts must be viewed in the light most favorable to the nonmoving party. Olde Tyme Foods Inc. v. Roundy’s Inc., 961 F.2d 200, 22 USPQ2d 1542, 1544 (Fed. Cir. 1992). The Board may not resolve issues of material fact; it may only ascertain whether such issues are present. See Lloyd’s Food Products Inc. v. Eli’s Inc., 987 F.2d 766, 25 USPQ2d 2027 (Fed. Cir. 1993). When cross-motions for summary judgment are presented, the Board evaluates each motion on its own merits and resolves all doubts and inferences against the party whose motion is being considered. Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1390–91 (Fed. Cir. 1987)). Even when all material facts are undisputed, the moving party must show that the law applied to those facts requires a judgment in its favor or the motion will be denied. Fed. R. Civ. P. 56(a). Standing Petitioner has submitted a copy of an Office action (Final Refusal) with respect to its pleaded application Serial No. 85620665 wherein the Examining Attorney has finally refused registration of Petitioner’s mark FUN FOR ALL. ALL IN FUN on the basis of likelihood of confusion with the mark in Respondent’s involved Registration No. 4030294. We find no genuine dispute of material fact that Petitioner has standing. Kallamni v. Khan, 101 USPQ2d 1864 (TTAB 2012) (finding standing by virtue of final Cancellation No. 92057150 8 refusal to register petitioner’s pending application based on respondent's registration). Grounds With regard to the abandonment, fraud, and non-use claims, the parties agree that there is no dispute as to certain material facts: 1) Respondent filed the underlying application which matured into the registration at issue in this proceeding on August 26, 2009 under Section 1(a). Registration file. 2) The slogan FUN FOR ALL. ALL FOR FUN. appears on Respondent’s 128-page brochure entitled “2009-2010 Cruise Vacations,” 1.2 million copies of which were printed in 2008. Berra Declaration paragraph 3, Exhibit A. 3) Distribution of the 128-page 2009-2010 Cruise Vacations brochure occurred from 2009 to 2010. Berra Declaration paragraphs 3 and 5, Exhibit A. 4) The 128-page 2009-2010 Cruise Vacations brochure lists cruise departure dates as early as January 1, 2009. Berra Declaration, Exhibit A. 5) The slogan FUN FOR ALL. ALL FOR FUN. appears on Respondent’s 12-page brochure entitled “Introducing Carnival Dream,”400,000 copies of which were printed in January 2009. Berra Declaration, paragraph 4, Exhibit B. 6) Distribution of the 12-page Introducing Carnival Dream brochure occurred in 2009 and 2010. Berra Declaration paragraphs 4 and 5, Exhibit B. 7) Both the 128-page 2009-2010 Cruise Vacations and 12-page Introducing Carnival Dream brochures were distributed primarily to Carnival’s travel agency partners for use with potential customers and to fulfill customer requests. Berra Declaration paragraph 4, Exhibit A; Mandell Declaration, Exhibit 4. Canc R R F Vaca 5 Arr ellation N 8) Carni Carnival format. 9) The s the pre various paragrap espondent espondent ollowing a tions broc ows have b o. 9205715 val did not used dig Berra De logan FUN sent on i services. M h 6. used the m uses the m re examp hure: een added t 0 print any ital broch claration, FOR AL ts website andel De ark on th ark on its les of use o reproduc 9 new broch ures or “ paragraph L. ALL FO www.car claration, e brochure website in of the sl ed example ures until e-brochur 5. R FUN. a nival.com Exhibit 4 s in the fo the follow ogan on t s by Respon 2014. In t es” availa ppeared fr in conne ; Berra D llowing for ing forma he 2009-2 dent. he interim ble in .pd om 2012 t ction wit eclaration mats:5 ts: 010 Cruis , f o h , e Cancellation No. 92057150 10 Cancellation No. 92057150 11 Cancellation No. 92057150 12 Cancellation No. 92057150 13 Cancellation No. 92057150 14 An example of use of the mark on Respondent’s website (“Onboard Experiences” web page) and an example of an associated webpage for the specific service identified on the “Onboard Experiences” webpage follow: Cancellation No. 92057150 15 Cancellation No. 92057150 16 Cancellation No. 92057150 17 Although the parties do not dispute the before-mentioned facts, they do dispute whether, as a matter of law, Respondent used the mark in a manner that constitutes service mark use in connection with the Challenged Services. Abandonment Whether Respondent abandoned its rights in the mark with respect to the Challenged Services? A mark is deemed abandoned if its use has been discontinued without intent to resume use. Trademark Act Section 45, 15 U.S.C. § 1127. Non-use in the United States for a period of three consecutive years establishes a prima facie case of abandonment. Id. To be successful on its motion, Petitioner must show that Respondent’s use of the mark has been discontinued for at least three consecutive years, or that Respondent has discontinued use of the mark without an intent to resume use. Id.; see also, On-Line Careline, Inc. v. America Online, Inc., 229 F.3d 1080, 1087, 56 USPQ2d 1471, 1476 (Fed. Cir. 2000) (citing 15 U.S.C. § 1127). Conversely, Respondent, as the party moving for summary judgment to dismiss the claim of abandonment, must establish continuous use of its mark for all of the Challenged Services or, with respect to any period of nonuse, that it had an intent to resume use. Regardless of which motion we consider, we must first address an essential element, namely, whether Respondent’s use of the mark as shown by the evidence constitutes use in connection with the Challenged Services. Cancellation No. 92057150 18 In support of its motion, Respondent argues that “[t]he evidence as submitted [brochures and web pages] shows that the mark is, and was, used or displayed in the advertising” of the Challenged Services and that the Challenged Services “have been rendered to persons within the United States.” In response, Petitioner submits that none of Respondent’s uses “constitutes use in commerce of the Mark in connection with the Challenged Services.” Petitioner argues that the manner of use is not in “direct association” between the mark and the Challenged Services and that it is unlikely that consumers will associate the mark with the Challenged Services. In particular, with respect to Respondent’s 128-page 2009-2010 Cruise Vacations brochure, Petitioner submits that because the mark appears on fewer than half of the pages in the brochure, and is in small font at the bottom of the page where numerous other marks, texts and images appear, “no consumer would perceive the Mark as identifying Respondent’s bar and restaurant services, or any of the other Challenged Services available on Respondent’s cruise ships.” As to Respondent’s website, Petitioner asserts that the mark appears on the website in “small font at the bottom of the page” and requires one to “scroll so far down the webpage to see the Mark, that any information on the page about the Challenged Services is no longer Cancellation No. 92057150 19 visible.” Petitioner also contends that none of Respondent’s exhibits evidences use in connection with “Broadcast Media Entertainment Services.” Respondent argues that with respect to the brochures, “the font of the mark on these brochure pages is not small as it is relative to the other font sizes” and “the mark appears in red and blue contrasting colors” “most often with the designation ‘TM’ or ‘SM’” with “sufficient prominence that it is not simply informational material.” Respondent points out that the brochure “opens as a two page spread . . . and the mark appears in connection with the services being offered on the adjoining page.” Respondent further points to a “Cutaway view of the cruise ship” provided in the 128-page 2009-2010 Cruise Vacations brochure (reproduced supra) which refers to numerous services and displays the mark prominently shown on a red background. Respondent argues that all uses of the mark on interior pages of the brochure point the reader to web pages, reinforcing the mark’s association with the Challenged Services. As to the webpage use, Respondent points to the webpage entitled “Onboard Experiences” that “advertises over 70 types of services to be found on Carnival’s cruise ships” and the “linked-to webpages.” Respondent submits “that [the Onboard Experiences] webpage and the linked-to webpages for each of these services display the mark in website advertising.” Respondent contends that the consumer “makes a mental connection” between the mark and the services when he or she scrolls down the webpage and it is “mere conjecture” that the consumer “will not make a mental Cancellation No. 92057150 20 connection.” As to the broadcast media entertainment services, Respondent submits that the “nature and breadth of broadcast media services” are advertised in its brochures and webpages. In order to constitute service mark use, a mark must be used in a manner that would be perceived by the relevant public as identifying the specified services and indicating their source. See In re Advertising & Marketing Development Inc., 821 F.2d 614, 2 USPQ2d 2010, 2014 (Fed. Cir. 1987) (it is implicit in the statutory definition of a service mark that a service mark be used to identify the named services for which registration is sought and to indicate the source of the services). It is not enough to provide the services; the mark must also be displayed “in the sale or advertising of [the] services” in such a way as to identify and distinguish the named services. Trademark Act Section 45, 15 U.S.C. § 1127; In re Advertising & Marketing Development Inc., 2 USPQ2d at 2014. In this case, the FUN FOR ALL. ALL FOR FUN. slogan or tag line is not used to identify one particular service; rather, it is used in connection with numerous services provided by Respondent. In the 128-page 2009-2010 Cruise Vacations brochure, the mark FUN FOR ALL. ALL FOR FUN. is ubiquitous; it appears 49 times (48 times inside the brochure and once on the back of the brochure) on alternating pages as a slogan or tagline. In almost all cases, it is not part of the ordinary text, but appears in the margin, set off from the rest of the text in different typeface. When the slogan is viewed in Cancellation No. 92057150 21 the context of the entire brochure, which is how a consumer would perceive it, it is clear to us that a consumer would associate the FUN FOR ALL. ALL FOR FUN. slogan or tag line with all of the services mentioned or shown in the brochure. A review of Respondent’s brochures and website shows that Respondent has used its slogan as a service mark in connection with all of the Challenged Services in Class 43 and many of the Challenged Services in Class 41. See for example, the following pages of the 128-page 2009-2010 Cruise Vacations brochure: • 17 TTABVUE at 23, 27-28 (entertainment in the nature of a waterslide); • 17 TTABVUE at 28 (bar services, miniature golf courses); • 17 TTABVUE at 37-38, showing the ship layout and the location of various ship activities (bar and cocktail lounge services, restaurant services and child care services, casino services, entertainment in the nature of a waterslide, provision of play facilities for children, recreational services in the nature of pools, entertainment in the nature of broadcasting or live presentation of motion picture films, organizing and conducting stage shows, dancing); • 17 TTABVUE at 42, 52 (nightclubs, casino, organizing and conducting stage shows, nightclub shows); • 17 TTABVUE at 46 (child care, organizing and conducting parties, dances); • 17 TTABVUE at 147 (catering services); • 17 TTABVUE at 23 (miniature golf courses, entertainment in the nature of a waterslide, recreational services in the nature of pools); • 17 TTABVUE at 30 (entertainment in the nature of live broadcasting or presentation of motion picture films); and • 17 TTABVUE at 40 (restaurant services). On the “Onboard Experiences” webpage, 17 TTABVUE at 245, and the associated webpages, 17 TTABVUE at 246-261, the slogan or tagline FUN FOR ALL. ALL FOR FUN. is ubiquitous as well. It is located on the bottom Cancellation No. 92057150 22 right of the “Onboard Experiences” webpage and is also in that same location at the associated webpage for each specific service. The “Onboard Experiences” webpage includes numerous small photographs and text identifying Respondent’s various services and the associated webpages identify the specific services at issue in more detail. Accordingly, we find that there is no genuine dispute of material fact that Respondent is using the slogan FUN FOR ALL. ALL FOR FUN. in connection with the following Class 41 services: “Entertainment services, namely, casino services, organizing and conducting stage shows, nightclub shows, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; and Entertainment in the nature of broadcasting or live presentation of motion picture films”; and in connection with the Challenged Services in Class 43: “Bar and cocktail lounge services; Restaurant services; Catering services; Child care services.” Further, as to the timing of Respondent’s use of its mark, we find that there is no genuine dispute of material fact that the 128-page 2009-2010 Cruise Vacations brochure and 12-page Introducing Carnival Dream brochure have been in use since prior to or as early as the filing date of the underlying application. Berra declaration, paragraphs 3-5. In particular, there is no dispute that these brochures were distributed throughout 2009 and 2010. We therefore find that the mark was in use in commerce for certain Cancellation No. 92057150 23 Class 41 services and the Challenged Services in Class 43 as of the filing date of the application. We further find that there has not been a three-year period of non-use that would result in a prima facie showing of abandonment. Accordingly, with respect to the parties’ cross-motions for summary judgment on the claim of abandonment: In Class 43: Petitioner’s motion is DENIED, Respondent’s motion is GRANTED, and judgment is entered in Respondent’s favor. In Class 41: Petitioner’s motion is DENIED, Respondent’s motion is GRANTED and judgment is entered in Respondent’s favor with respect to the following services in Class 41: “Entertainment services, namely, casino services, organizing and conducting stage shows, nightclub shows, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; and Entertainment in the nature of broadcasting or live presentation of motion picture films.” The parties’ cross-motions with respect to the remaining services in Class 41: “organizing and conducting contests;” “Satellite television programs and satellite radio programs featuring comedy, drama, variety, sports and fashion; Entertainment in the nature of simulcast presentation of live parties, sporting contests, interactive video games, deck board games, musical concerts, theatrical and variety shows and performances; Entertainment, namely, a continuing variety, comedy, sports, musical concert Cancellation No. 92057150 24 shows broadcast over television, satellite, audio, and video media,” (hereafter “Remaining Class 41 Services”) are DENIED as there is a genuine dispute as to whether Respondent was using the mark in connection with the Remaining Class 41 Services. Fraud Whether Respondent obtained its registration fraudulently by making false statements regarding use of the mark in connection with the Challenged Services at the time of filing the application? Fraud in obtaining a trademark registration occurs “when an applicant knowingly makes false, material representations of fact in connection with his application.” In re Bose Corp., 580 F.3d 1240, 91 USPQ2d 1938, 1939 (Fed. Cir. 2009), citing Torres v. Cantine Torresella S.r.l., 808 F.2d 46, 1 USPQ2d 1483, 1484 (Fed. Cir. 1986); Nationstar Mortg. LLC v. Ahmad, Opposition No. 91177036 __ USPQ2d ___ (TTAB September 30, 2014). To constitute fraud on the USPTO, the statement must be (1) false, (2) a material representation and (3) made knowingly with intent to deceive the USPTO. Mister Leonard Inc. v. Jacques Leonard Couture Inc., 23 USPQ2d 1064, 1065 (TTAB 1992). Petitioner claims that Respondent falsely stated in its application that it was using the mark in connection with all of the Challenged Services and that such statement was a material misrepresentation made with intent to deceive the Office. Cancellation No. 92057150 25 Because we have found as a matter of law that Respondent was using the mark in commerce in connection with the Challenged Services in Class 43 as of the date on which the underlying application was filed, Petitioner cannot meet the first element of the ground of fraud, namely, that Respondent made a false statement in connection with these services. As for Class 41, as we have previously found, Respondent’s allegations of use of the mark were not false as to many of the identified services, but there is a genuine dispute as to whether Respondent was using the mark in connection with the Remaining Class 41 Services. Accordingly, with respect to the parties’ cross-motions for summary judgment on the claim of fraud: In Class 43: Petitioner’s motion is DENIED, Respondent’s motion is GRANTED, and judgment is entered in Respondent’s favor. In Class 41: The parties’ cross-motions for summary judgment on the fraud ground are DENIED.6 Non-use Whether Respondent was using the mark in connection with the Challenged Services at the time of filing the application? We now turn to the cross-motions for summary judgment with respect to non-use. 6 If fraud is found as to any of the Remaining Class 41 Services, cancellation of the registration with respect to the entire class will result. G&W Laboratories Inc., 89 USPQ2d at 1573. Cancellation No. 92057150 26 A registration issued under Trademark Act Section 1 requires use in commerce either at the time that the use-based application is filed or, for an application filed on the basis of intent to use, at the time the applicant’s allegation of use is filed. Trademark Act Section 1; 15 U.S.C. § 1051. In this particular case, the question is whether the mark in the underlying use- based application was in use in connection with the Challenged Services as of the application filing date. We have determined, as discussed supra, that the manner of use in the brochures constitutes use in connection with all of the Challenged Services in Class 43 and with the following Class 41 services: “Entertainment services, namely, casino services, organizing and conducting stage shows, nightclub shows, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; Entertainment in the nature of broadcasting or live presentation of motion picture films.” Further, as we previously stated, there is a genuine dispute as to whether Respondent had used its mark as of the application filing date in connection with the Remaining Services in Class 41. Accordingly, with respect to the parties’ cross-motions for summary judgment on the claim of non-use: In Class 43: Petitioner’s motion is DENIED, Respondent’s motion is GRANTED and judgment is entered in Respondent’s favor. Cancellation No. 92057150 27 In Class 41: The parties’ cross-motions for summary judgment are DENIED. The parties are further advised that, in accordance with Spirits International B.V v. S.S. Taris Zeytin Ve Zeytinyagi Tarim Satis Kooperatifleri Birligi, 99 USPQ2d 1545 (TTAB 2011) and Grand Canyon West Ranch, LLC v. Hualapai Tribe, 78 USPQ2d 1696 (TTAB 2006), if Respondent goes to trial retaining all of the Remaining Services in Class 41 in the registration, and Petitioner is able to prove at trial that Respondent had not made use of the mark on one or more of the Remaining Services in Class 41 at the time it filed its underlying application for registration, Class 41 of the registration will be cancelled in its entirety.7 Section 18 Whether the Challenged Services in Respondent’s Registration are subject to a restriction? 7 Absent a finding of fraud, a registrant which did not use the mark on all of the goods or services identified in the underlying application may “cure” this problem by deleting from the registration the goods or services for which it had not used the mark as of the filing date of the application and accepting judgment with respect to the deleted goods or services. Cf. Spirits International , 99 USPQ2d at 1547 n.3 (if an applicant believes an opposition is directed to particular goods in the identified class rather than the entire class, the applicant can avail itself of the divisional procedure or move to delete the goods from its identification; sustaining opposition brought against entire class for lack of bona fide intent to use the mark in commerce, though plaintiff asserted lack of bona fide use only as to some of the goods in the opposed class); Grand Canyon West, 78 USPQ2d at 1698 (applicant who did not use the mark on certain of the goods in a use-based application may cure the problem by amending some or all of the goods to Section 1(b)). If a party fails to effect a cure to delete certain goods or services for which there was no use, and plaintiff is successful in proving non-use with respect to any of the goods or services in that class at the time of application, the Board proceeding will be sustained against the class in its entirety. Cancellation No. 92057150 28 We now turn to Petitioner’s motion for summary judgment on the Section 18 claim. Petitioner requests that the registration be restricted pursuant to Section 18 to limit all the Challenged Services by the addition of the clause “provided on board a cruise ship,” such that the services in these classes would read as follows: International Class 41: Entertainment services, namely, casino services, organizing and conducting stage shows, nightclub shows, contests, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; Entertainment in the nature of broadcasting or live presentation of motion picture films; Satellite television programs and satellite radio programs featuring comedy, drama, variety, sports and fashion; Entertainment in the nature of simulcast presentation of live parties, sporting contests, interactive video games, deck board games, musical concerts, theatrical and variety shows and performances; Entertainment, namely, a continuing variety, comedy, sports, musical concert shows broadcast over television, satellite, audio, and video media, all of the foregoing services provided on board a cruise ship; International Class 43: Hotel services; Travel agency services, namely, making reservations and bookings for temporary accommodations; Bar and cocktail lounge services provided on board a cruise ship; Restaurant services provided on board a cruise ship; Catering services provided on board a cruise ship; Child care services provided on board a cruise ship. A party seeking a Section 18 restriction must plead and prove that (1) the adverse party is not using its mark on the goods or services sought to be excluded by the proposed restriction, and (2) a finding of likelihood of confusion will be avoided by entry of the restriction of the goods or services, Cancellation No. 92057150 29 i.e., that the proposed restriction is commercially significant. Eurostar v. “Euro-Star” Reitmoden GmbH & Co. KG, 34 USPQ2d at 1270. In its Section 18 claim Petitioner has alleged that the Examining Attorney has refused registration of its pending application in view of Respondent’s registration, and that it seeks to avoid a likelihood of confusion by restricting the Challenged Services to being “services provided on board a cruise ship.”8 Petitioner states in its motion that it would restrict its recitation of services to exclude “restaurant and bar services offered on board cruise ships.”9 Aside from arguing that the restriction is not commercially significant, Respondent argues that some of the particular services for which Petitioner seeks a restriction warrant no modification because there would be no likelihood of confusion either with or without the restriction, as the services are so different in nature from those of Petitioner that no likelihood of confusion would exist. For example, Respondent argues that there is no reasonable basis for finding likelihood of confusion between its child care services and Petitioner’s restaurant and bar services. On the other hand, with respect to other of the services, Respondent argues that a restriction would not avoid likelihood of confusion, pointing to third-party registrations 8 As noted supra, Petitioner has submitted a copy of the of an Office action (Final Refusal) with respect to its pleaded application Serial No. 85620665. 9 See Aries Systems Corp. v. World Book Inc., 23 USPQ2d 1742, 1749 n.24 (TTAB 1992) (when a party moves for summary judgment on a Section 18 restriction “it should also include, either in its pleading or by motion under Trademark Rule 2.133(a), any limitation it may be willing to accept to its own application or registration. See Trademark Rule 2.133(b).”) Cancellation No. 92057150 30 for both restaurant services and cruise ship services to show that these services are related. After reviewing the evidence and arguments, we find genuine disputes of material fact exist, at a minimum, as to whether a likelihood of confusion would be avoided by adding the restriction “provided on board cruise ships” to each of the Challenged Services.10 Accordingly, with respect to the Section 18 claim as to the Challenged Services: Petitioner’s motion for summary judgment is DENIED. Conclusion As to Class 43: Respondent’s motion for summary judgment is GRANTED as to the abandonment, fraud and non-use grounds (and Petitioner’s cross- motion is DENIED). Petitioner’s motion for summary judgment is DENIED as to the proposed Section 18 restriction. As to Class 41: The parties’ cross-motions for summary judgment as to the fraud and non-use claims, and Petitioner’s motion for summary judgment as to the Section 18 restriction are DENIED. Respondent’s motion for summary judgment is GRANTED IN PART (and Petitioner’s cross-motion is DENIED) as to the abandonment claim in connection with the following services: “Entertainment services, namely, casino services, organizing and conducting stage shows, night club shows, dances and parties; Provision of 10 Of course, Petitioner is free to refer to Respondent’s statement in arguing no likelihood of confusion to the Examining Attorney in connection with its pending application, and perhaps get a clearer statement as to which of the services identified in Respondent’s registration are the basis for the likelihood of confusion refusal. Cancellation No. 92057150 31 play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; Entertainment in the nature of broadcasting or live presentation of motion picture films.” The parties’ cross-motions for summary judgment are DENIED as to the abandonment claim in connection with the following services: “organizing and conducting contests” and “Satellite television programs and satellite radio programs featuring comedy, drama, variety, sports and fashion; Entertainment in the nature of simulcast presentation of live parties, sporting contests, interactive video games, deck board games, musical concerts, theatrical and variety shows and performances; Entertainment, namely, a continuing variety, comedy, sports, musical concert shows broadcast over television, satellite, audio, and video media.” IN SUMMARY, the abandonment, fraud and non-use claims are dismissed as to Class 43; and the abandonment claim is dismissed as to the following Class 41 services: “Entertainment services, namely, casino services, organizing and conducting stage shows, night club shows, dances and parties; Provision of play facilities for children; Night clubs; Recreational services in the nature of pools; Miniature golf courses; Entertainment in the nature of a waterslide; Entertainment in the nature of broadcasting or live presentation of motion picture films.” Cancellation No. 92057150 32 The proceeding goes forward on the abandonment claim with respect to the following Class 41 services: “organizing and conducting contests;” “Satellite television programs and satellite radio programs featuring comedy, drama, variety, sports and fashion; Entertainment in the nature of simulcast presentation of live parties, sporting contests, interactive video games, deck board games, musical concerts, theatrical and variety shows and performances; Entertainment, namely, a continuing variety, comedy, sports, musical concert shows broadcast over television, satellite, audio, and video media.” The proceeding goes forward on the fraud and non-use claims with respect to the services in Class 41 and on the proposed Section 18 restriction with respect to the Challenged Services, i.e., all the services in Class 41 and the four previously enumerated services in Class 43. Petitioner is allowed until TWENTY DAYS from the mailing date of this order to file a third amended petition for cancellation with respect to abandonment, fraud, non-use and Section 18, omitting those claims for which partial summary judgment has been entered, and those claims which have been stricken. Respondent is allowed until TWENTY DAYS from date of service of the amended petition for cancellation to serve and file an answer thereto. Proceedings are resumed. Dates are reset as follows: Expert Disclosures Due 11/26/2014 Discovery Closes 12/26/2014 Plaintiff's Pretrial Disclosures Due 2/9/2015 Cancellation No. 92057150 33 Plaintiff's 30-day Trial Period Ends 3/26/2015 Defendant's Pretrial Disclosures Due 4/10/2015 Defendant's 30-day Trial Period Ends 5/25/2015 Plaintiff's Rebuttal Disclosures Due 6/9/2015 Plaintiff's 15-day Rebuttal Period Ends 7/9/2015 In each instance, a copy of the transcript of testimony, together with copies of documentary exhibits, must be served on the adverse party within thirty days after completion of the taking of testimony. Trademark Rule 2.l25. Briefs shall be filed in accordance with Trademark Rules 2.128(a) and (b). An oral hearing will be set only upon request filed as provided by Trademark Rule 2.l29. Copy with citationCopy as parenthetical citation