Mega RV Corpv.Mike Thompson Recreational VehicleDownload PDFTrademark Trial and Appeal BoardJun 3, 2014No. 91206417 (T.T.A.B. Jun. 3, 2014) Copy Citation Mailed: June 3, 2014 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board ______ Mega RV Corp v. Mike Thompson Recreational Vehicle _____ Opposition No. 91206417 to Application Serial No. 85508573 _____ Adam K. Obeid, Esq. for Mega RV Corp. Kit M. Stetina of Stetina, Brunda, Garred & Brucker for Mike Thompson Recreation Vehicle. ______ Before Mermelstein, Wellington, and Gorowitz, Administrative Trademark Judges. Opinion by Wellington, Administrative Trademark Judge: Mike Thompson Recreation Vehicle (hereinafter “Applicant”), a California corporation, filed an intent-to- use Application to register TRAVELAND USA (in standard characters) for “recreational vehicle dealerships” in THIS OPINION IS NOT A PRECEDENT OF THE TTAB Opposition No. 91206417 2 International Class 35 and “recreational vehicle repair services” in International Class 37.1 Registration has been opposed by Mega RV Corp (hereinafter “Opposer”) on the ground of priority and likelihood of confusion.2 Opposer also alleges that Applicant did not possess a bona fide intent to use the mark in commerce at the time of filing the Application and that the Application is otherwise void ab initio because Applicant was aware of at least one other entity which was entitled to use the applied-for mark in connection with recreational vehicle services. In particular, Opposer alleges, inter alia, that Opposer “can trace assignment and ownership of the trade name ‘Traveland USA’ from the present date back to 1973”; that “[d]espite knowing full well that the trade name Traveland USA has been in continued use since 1973, and that use of the name can be traced from [other entities] to Mega RV Corp, [Applicant] has purposefully and shamelessly attempted to register use of the name to itself”; that Applicant “submitted a knowingly false application for registration”; that “[Applicant’s] use of 1 Serial No. 85508573 filed on January 4, 2012, based on a bona fide intent to use the mark in commerce under Trademark Act Section 1(b), 15 U.S.C. § 1051(b). USA has been disclaimed. 2 Opposer attached materials to the Notice of Opposition. To the extent any of these materials were not properly introduced as evidence, they are not of record and cannot be considered in this decision. Trademark Rule 2.122(c). Opposition No. 91206417 3 the trade name ‘Traveland USA’ and any attempt by [Applicant] to utilize same would cause confusion and would damage [Opposer].” By way of the Answer, Applicant denied the salient allegations comprising the grounds set forth in the Notice of Opposition. The parties have filed trial briefs, including a reply brief from Opposer. Evidentiary Objections Applicant raised several evidentiary objections in its trial brief. Opposer did not address these objections in its reply brief. Applicant first objects to Opposer’s attempt to introduce a copy of its California “Certificate of Registration of Service Mark,” that was submitted with Opposer’s “Request for Judicial Notice.”3 Applicant argues this document should have been produced earlier in response to Applicant’s discovery requests and, on this basis, Opposer should be precluded from relying on it.4 In essence, Applicant’s objection is a motion for estoppel. See Panda Travel, Inc. v. Resort Option Enterprises, Inc., 3 Opposer’s “Request for Judicial Notice” was filed on December 23, 2013, TTABVUE Docket entry no. 21. 4 Applicant cites to “TMBP Rule 527.01(e)” as the basis for this objection. The Trademark Board Manual of Procedure (“TBMP”) provides guidance to practitioners, including references to case Opposition No. 91206417 4 94 USPQ2d 1789, 1792-93 (TTAB 2009) (documents not produced until after the start of trial stricken). Because Opposer has not responded to this objection, the circumstances as described by Applicant are uncontroverted. Accordingly, the objection is sustained and the California Certificate of Registration of Service Mark is not of record. Midwestern Pet Foods Inc. v. Societe des Produits Nestle S.A., 685 F.3d 1046, 103 USPQ2d 1435, 1439 (Fed. Cir. 2012) (application of the preclusion sanction, lies within the Board’s discretion); Trademark Rule 2.127(a) (unopposed motion may be granted as conceded). Applicant also objected to Opposer’s request for the Board to take judicial notice of Opposer’s California Registration, the Articles of Incorporation for the Traveland Merchants Association (TLMA) and a Certificate of Amendment. Inasmuch as Opposer did not respond to this objection or otherwise explain why the Board should take judicial notice of these materials, we decline to do so in this instance. We also note the timing of Opposer’s judicial notice request and, to the extent that Opposer intended its request for “judicial notice” to be a Notice of Reliance, it was untimely because it was filed well outside Opposer’s testimony period. Trademark Rule 2.122(e). law, statutes and other authority. However, the sections of the TBMP, such as the one alluded to by Applicant, are not “rules.” Opposition No. 91206417 5 Further, Applicant objected to news articles attached as exhibits to the deposition of Brent McMahon on the basis that they constitute hearsay. This objection is overruled. News articles may not be relied on for truth of the statements contained therein; however, they are not entirely disregarded or without probative value because they may be used as evidence for what they show on their face. Applicant also asserted hearsay and foundation objections to the testimony of David Farwell. The Board has only considered non-hearsay statements and testimony where it has been demonstrated that Mr. Farwell’s testimony is based on his personal knowledge of the subject matter. Finally, Applicant raises objections to “attorney argument devoid of any supporting evidence.” Brief, p. 41. The Board is able to decipher what arguments, made by either counsel, are supported by the evidence as opposed to those that lack proof. In sum, the materials submitted with Opposer’s “Request for Judicial Notice” have not been considered. We decline to strike any testimony or trial testimony exhibits; however, we do not rely on testimony or evidence constituting improper hearsay or where a foundation for that testimony has not been established. Opposition No. 91206417 6 The Record The evidence of record includes the parties’ pleadings, and the file of Applicant’s involved Application. Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b). Opposer submitted the testimony depositions, with exhibits, of David Farwell, Paul Schilperoort, Brent McMahon, Edward S. Banas, and Peter Changala. Applicant submitted the testimony depositions, with exhibits, of Richard Shinn, Michael Irick, and Frank Degelas. In addition, Applicant submitted, under Notice of Reliance, copies of Opposer’s Responses to Admission Requests and Interrogatories as well as a discovery deposition transcript, with exhibits, of Mr. Shinn.5 Background In approximately 1973, The Irvine Company leased real property located at Burt Road in Irvine, California (hereinafter “Irvine” location) to Edker and Blanche Pope, husband and wife. Mr. and Mrs. Pope proceeded to develop the property as a location for recreational vehicle (RV) 5 With few exceptions, a discovery deposition may not be offered in evidence. Trademark Rule 2.120(j)(2). Applicant filed a paper on September 18, 2013, asserting that Opposer consented to use of the Shinn discovery deposition “for any purpose in the proceeding.” Opposer did not object to Applicant’s allegation of consent or its introduction of this deposition by Notice of Reliance. In view thereof, the deposition is considered of record. The better practice in this situation is to file a stipulated agreement that is signed by both parties when it involves a deviation from the Board’s rules regarding the Opposition No. 91206417 7 sales and service entities to conduct their business and thus divided the land into approximately 60 lots. They subleased these lots to companies involved in the RV industry. “Traveland USA,” as the property became known, offered an opportunity for consumers to shop at a single location for RVs, as well as RV-related goods and services, from an assortment of companies. Throughout the years, the underlying lease for the property with The Irvine Company was held by different persons or entities. Between approximately 2006 through September 30, 2011, The Irvine Company leased the Traveland USA Irvine property to Traveland USA, LLC which in turn subleased the lots to various RV-related companies conducting business on the Irvine property. Opposer and Applicant are competitors in the retail RV sales and service industry. At various times and for varying lengths of time, Applicant and Opposer (also doing business as “McMahon’s RV”) were two of the tenants at the Traveland USA location in Irvine. Specifically, Applicant was a tenant RV dealer at Traveland USA from approximately 1981 until 1994 (Degelas 11:7-9). Opposer was a tenant at least as early as 1989 and remained at the Traveland USA Irvine location at least until March 15, 2012. introduction of evidence. See TBMP Sections 501.03 (form of stipulations) and 705 (stipulated evidence). Opposition No. 91206417 8 In addition to and apart from Traveland USA, LLC, there existed a California non-profit mutual benefit corporation called Traveland Merchants Association (TLMA). TLMA’s members comprised RV companies operating on the premises as well as the holder (or assignee) of the ground lease with The Irvine Company. Traveland USA, LLC, as holder of the ground lease, was a member between 2006 to September 30, 2011. By its own bylaws, TLMA was inextricably linked to the leases – Article I, Section 2 (“Association in Leases”) states that TLMA is “the association referred to in provisions of the leases between [landlord, holder of ground lease], and the tenants of Traveland U.S.A.” McMahon Dep. Exh. 19. The bylaws also provide that one of TLMA’s “purposes” was to “initiate and execute to their fullest, advertising, promotional, and publicity programs and activities that shall promote the common interests and welfare of the commercial enterprises located in Traveland.” Section 3(a) of bylaws, McMahon Dep. Exh. 19. TLMA’s powers included the ability to “contract, manage, control and pay for such advertising and marketing as it deems appropriate to promote, foster, improve and maximize the businesses of the members conducted at Traveland. Article III, Section 1(j) of bylaws, McMahon Dep. Exh. 19. Opposer argues that it is the rightful owner of the mark TRAVELAND USA by virtue of it being the last in a chain Opposition No. 91206417 9 of title of assignments of the mark. Opposer primarily relies on a December 1, 2011 assignment of the mark from TLMA to Opposer (Schilperoort Dep. Exh. 3). Opposer argues that it thereafter owned and controlled use of the TRAVELAND USA mark at the Irvine location until approximately April 2012, when Opposer moved to a new business location in Westminster, California. Applicant, on the other hand, asserts that the assignment from TLMA to Opposer was invalid for several reasons, including it not being in compliance with various provisions of TLMA’s bylaws. Applicant also asserts that Opposer otherwise “has no independent claim of priority based on its own use of [the mark].” Brief, p. 20. The following relevant activities and facts are established by the evidence: • On or before December 13, 2011, Traveland, LLC USA ceased operations on “Traveland USA” Irvine location property (Shinn 44:18-19, 54:17-18); • On or about December 13, 2011, Opposer negotiated directly with The Irvine Company to remain on the Irvine location “month-to-month” and pay rent directly to The Irvine Company (Schilperoort 19:13-15, 26:15- 22); • After approximately December 13, 2011, Opposer “took over responsibilities for the [TLMA]” (McMahon 29:19- 22; 196:10 “[W]e were doing the advertising ourselves”) (Schilperoort 23:11-14 “after Traveland [USA] LLC was evicted from the property, ...[Opposer] picked up the expenses of the utilities and the staff and the property upkeep for those last few months”); Opposition No. 91206417 10 • After December 13, 2011, Opposer continued to conduct business at the Irvine location and the property continued to be advertised as TRAVELAND USA by signage on the property and visible outside the property (Schilperoort 15:8-16); • After December 13, 2011, Opposer advertised as “TRAVELAND USA sponsored by McMahon’s RV” on banners and signs (Schilperoort 15:21-22); • In 2011, Opposer “spent approximately $ 150,000 in print and media advertisements that “directly promoted ‘Traveland USA’ at [the Irvine location]” (Opposer’s response to Supp. Interrog. Response No. 8); • In “late March, early April” 2012, Opposer moved from Irvine to 5300 Garden Grove Boulevard, Westminster, California (McMahon 39:16-17); • Opposer uses the TRAVELAND USA mark at its new location in Westminster(Degelas 121:15-7, 122:12-14); • Opposer “immediately” advertised the name TRAVELAND USA at its Westminster location (McMahon 41:19); • Opposer is currently in the process of developing its Westminster property to be a collective RV mall with a design that will be “very similar to Traveland (Irvine location)” (Schilperoort 39:23-40:25); • Opposer has advertised as “McMahon’s Traveland USA” at its Westminster location since at least as early as March 15, 2012 (Schilperoort 42:1-3); and • Opposer is in “discussions” with other RV dealers for them to join Opposer and move into space at Opposer’s new Westminster location (McMahon 41:1-10). Standing Standing is a relatively low threshold requirement, and it is generally sufficient in a Board proceeding that the plaintiff establish that it is not a “mere intermeddler.” Herbko Int'l Inc. v. Kappa Books Inc., 64 USPQ2d 1375, 1378 Opposition No. 91206417 11 (Fed. Cir. 2002). A plaintiff in a Board proceeding need not show that it will prevail on the merits before we find that it has sufficient interest in the proceeding. To the contrary, standing requires only that the Opposer have a “real interest” in the opposition proceeding. Int'l Order of Job's Daughters v. Lindeburg & Co., 727 F.2d 1087, 1092, 220 USPQ 1017, 1020 (Fed. Cir. 1984). In most settings, a direct commercial interest satisfies the “real interest” test. Cunningham v. Laser Golf Corp., 222 F.3d 943, 945, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000). We find that Opposer has shown that it has a real interest in this proceeding. At the very least, it has been shown that Opposer is an RV dealership, a competitor of Applicant, and asserts rights in the same trademark as applied for by Applicant. Having found that Opposer has standing, we turn now to the merits of its claim of priority and likelihood of confusion. Priority “To establish priority, [Opposer] must show proprietary rights in the mark that produces a likelihood of confusion.... These proprietary rights may arise from ... prior trademark or service mark use, prior use as a trade name, prior use analogous to trademark or service mark use, or any other use sufficient to establish proprietary Opposition No. 91206417 12 rights.” Herbko Int'l., Inc. v. Kappa Books, Inc., 308 F.3d 1156, 64 USPQ2d 1375, 1378 (Fed. Cir. 2002) (internal citations omitted); Otto Roth & Co. v. Universal Foods Corp., 640 F.2d 1317, 209 USPQ 40, 43 (CCPA 1981). Inasmuch as Applicant has not established use of the TRAVELAND USA mark in connection with the recited services prior to the filing date of its intent-to-use Application, the earliest date upon which Applicant may rely for priority purposes is January 4, 2012, which is its constructive use date. Syngenta Crop Prot. Inc. v. Bio-Chek LLC, 90 USPQ2d 1112, 1119 (TTAB 2009) (“applicant may rely without further proof upon the filing date of its application as a ‘constructive use’ date for purposes of priority.”). Thus, Opposer must establish proprietary rights in its mark TRAVELAND USA prior to January 4, 2012. Based on the entire record before us, with an emphasis on the factual circumstances outlined above, we find that Opposer has established common-law rights in the mark TRAVELAND USA at least as early as December 15, 2011. We make this determination irrespective of the assignment history, without a determination of the validity of the December 1, 2011 assignment of the mark from TLMA to Opposer. In other words, even if we were to agree with Applicant that the assignment was not in compliance with TLMA’s bylaws and thus invalid, we find that Opposer Opposition No. 91206417 13 acquired rights because there is no evidence that any other party had rights in the mark as of December 15, 2011 and Opposer’s own use started at least as early as that date. As of December 15, 2011, Opposer was conducting its RV sales and service business at the Irvine location under the banner and signage of TRAVELAND USA. More importantly, at this point Opposer financially and physically maintained the upkeep of the Irvine property, including exerting control over the TRAVELAND USA advertising. In 2011 alone, Opposer spent a considerable amount of money directly promoting the same TRAVELAND USA mark in print and other media, including banners and signs bearing the message “TRAVELAND USA sponsored by McMahon’s RV.” Opposer’s actions continued at the Irvine location at least through March 15, 2012, when Opposer moved to its current Westminster location and “immediately” commenced use of the mark TRAVELAND USA at that location. One of Applicant’s arguments that Opposer could not have independently acquired rights in the TRAVELAND USA mark is that any use by Opposer inured to the benefit of TLMA or Traveland, LLC.6 However, the record reflects that the 6 Applicant does not argue that it has any connection with TLMA, Traveland, LLC, or The Irvine Company, other than Applicant once had a dealership at the Irvine location but this ended in 1994. To the extent that Applicant is arguing that a third-party, such as TLMA or Traveland, LLC, has prior rights in the contested mark, this appears to contradict Applicant’s assertion in its own Opposition No. 91206417 14 latter company’s lease with the Irvine Company expired in September 2011 and we find no credible evidence that Traveland, LLC acquired and continued to exercise rights in the mark after December 15, 2011. With regard to TLMA, its very existence was contingent on its leases with whomever held the ground lease with The Irvine Company. Again, its own bylaws describe it as an “association of leases,” meaning the subleases it held with the holder of the ground lease. Thus, when Traveland, LLC was no longer leasing spaces to TLMA members, the association was essentially dissolved. In any event, TLMA was functionally irrelevant after December 15, 2011 in view of the fact that Opposer performed the essential duties as of that date. There is no indication that the TLMA continued to exist after that date or that it has an interest in maintaining rights in the mark.7 In arguing that the TLMA assignment to Opposer was invalid, Applicant itself seems to acknowledge this much (“the TLMA was suspended and at worst effectively dissolved prior to December 1, 2011,” Brief, p. 14). Application that “to the best of [its] knowledge ... no other person, firm, corporation, or association has the right to use the mark in commerce.” 7 We need not determine the rights, if any, of TLMA or Traveland, LLC (if they still exist) or their successors in the TRAVELAND mark. It is sufficient to find that Opposer has established its independent use of TRAVELAND as a trademark prior to the earliest date upon which Applicant can rely for priority. Opposition No. 91206417 15 In sum, it has been demonstrated that by December 15, 2011, Opposer was controlling use of the mark, and activities undertaken by Opposer with respect to the mark were done for its own benefit and with the intention of establishing or maintaining proprietary rights in the mark. Applicant also characterizes Opposer’s stay on the Irvine property from December 15, 2011 through March 2012 as constituting a “deception of the public” because “[the mark] was allegedly so closely associated with an RV super mall in Irvine, Opposer’s use of [TRAVELAND USA] to promote what amounted to a single dealership winding up its affairs at that location was a significant and material change in the nature of the goodwill purportedly symbolized by ‘Traveland USA’.” Brief, p. 24. There is no dispute that, other than Opposer, there were few other RV-related, commercial entities operating at the Irvine property between December 2011 and April 2012. It has also been established through the testimony of several witnesses that business and the physical state of the Traveland USA property at Irvine declined over several years prior to April 2012. A downturn in business and the number of RV-related businesses located at the Irvine property in late 2011 and early 2012 did not negate Opposer’s ability to acquire rights in the mark through its own use of TRAVELAND USA. In Opposition No. 91206417 16 other words, although the property and shopping experience may have undergone significant changes, the fact remains that Opposer was using the mark TRAVELAND USA in connection with its RV sales and services. We disagree with Applicant’s contention that Opposer’s use was tantamount to “deception on the public” or that Opposer’s use was somehow improper for the purpose of negating its acquisition of trademark rights.8 We are aware of nothing that would prevent the owner of a trademark from offering different or new services under an established mark, so long as the mark continues to serve as an indication of source. In sum, Opposer acquired rights in the mark TRAVELAND USA in connection with RV sales and services as early as December 15, 2011, and has continued its use of this mark. Because this use precedes the date that Applicant relies upon, we find that Opposer has established priority. Likelihood of Confusion Our determination of the issue of likelihood of confusion is based on an analysis of all of the probative facts in evidence that are relevant to the factors set forth in In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563 (CCPA 1973). See also In re Majestic Distilling 8 Applicant cited 15 U.S.C. § 1055, which involves use of a registered mark by related companies. We find this statute inapplicable to Opposer’s acquisition, on its own, of trademark rights and the circumstances of this proceeding. Opposition No. 91206417 17 Co., Inc., 315 F.3d 1311, 65 USPQ2d 1201 (Fed. Cir. 2003). In any likelihood of confusion analysis, two key considerations are the similarities between the marks and the similarities between the goods and/or services. See Federated Foods, Inc. v. Fort Howard Paper Co., 544 F.2d 1098, 192 USPQ 24 (CCPA 1976). We initially note that Opposer and Applicant have not actually addressed the du Pont factors. Nevertheless, inasmuch Opposer has established prior rights in a mark identical to that applied for by Applicant and in connection with identical or closely related RV sales services, we have no trouble coming to the conclusion that there is a likelihood of confusion. Moreover, the record clearly shows that the two parties are competitors in the RV sales and services sector. Their services are advertised in the same trade channels and target the same classes of consumers, i.e., those shopping for RVs or in need of RV-related service. Based on the entire record and careful consideration of the parties’ arguments, there is no doubt that a likelihood of confusion exists should both parties engage in the contemporaneous use of the same mark, TRAVELAND USA, in Opposition No. 91206417 18 connection with RV sales and services, including those identified in the subject Application.9 Decision: The Opposition is sustained on the ground of priority and likelihood of confusion and Applicant’s Application will be abandoned in due course. 9 Because we find in favor of Opposer on the ground of priority and likelihood of confusion, we need not reach Opposer’s allegations that Applicant lacked a bona fide intent to use the mark in commerce and that Applicant was aware that at least one other entity was entitled to use the applied-for mark when it filed the Application. Copy with citationCopy as parenthetical citation