Fogo De Chão Churrascaria (Holdings) LLPv.Fogo E Brasa, L.L.C.Download PDFTrademark Trial and Appeal BoardApr 20, 2009No. 91157167 (T.T.A.B. Apr. 20, 2009) Copy Citation Hearing: February 20, 2009 Mailed: April 20, 2009 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board ______ Fogo De Chão Churrascaria (Holdings) LLP v. Fogo E Brasa, L.L.C. _____ Opposition No. 91157167 to application Serial No. 76464941 filed on November 1, 2002 _____ Nicole B. Emmons and John C. Filosa of Baker & McKenzie LLP for Fogo De Chão Churrascaria (Holdings) LLP. John G. Browning of Gordon & Rees LLP for Fogo E Brasa, L.L.C. ______ Before Seeherman, Rogers and Bergsman, Administrative Trademark Judges. Opinion by Bergsman, Administrative Trademark Judge: Fogo E Brasa, L.L.C. (“applicant”) filed a use-based application for the mark FOGO E BRASA and design, shown below, for “restaurant services,” in Class 43. The application recites that the term “Fogo E Brasa” is translated into English as “Fire and Charcoal.” THIS OPINION IS NOT A PRECEDENT OF THE T.T.A.B. Opposition No. 91157167 2 Fogo De Chão Churrascaria (Holdings) LLP (“opposer) opposed the registration of applicant’s mark on the grounds of priority of use and likelihood of confusion under Section 2(d) of the Trademark Act of 1946, 15 U.S.C. §1052(d). Specifically, opposer alleged that it is the owner of registrations for FOGO in typed drawing form,1 FOGO DE CHÃO (stylized), shown below,2 and FOGO DE CHÃO and design, shown below,3 all for restaurant services, and that the registration of applicant’s mark FOGO E BRASA and design for restaurant 1 Registration No. 2968381, issued July 12, 2005. The registration states that the word “fogo” is translated into English as “fire.” 2 Registration No. 2170469, issued June 30, 1998; Sections 8 and 15 affidavits accepted and acknowledged; renewed. The registration states that the word “Fogo de Chão” means “campfire” in Portuguese. 3 Registration No. 2170468, issued June 30, 1998, Sections 8 and 15 affidavits accepted and acknowledged; renewed. The registration states that the word “Fogo de Chão” means “campfire” in Portuguese. Opposition No. 91157167 3 services so resembles opposer’s registered marks as to be likely to cause confusion.4 Applicant denied the salient allegations in the notice of opposition. The Record By rule, the record includes applicant’s application file and the pleadings. Trademark Rule 2.122(b), 37 CFR §2.122(b). The parties stipulated that “all declarations, affidavits, and evidence introduced in connection with either party’s summary judgment briefing are deemed admitted into the record for use by either party during the trial phase and for the purposes of final decision.” In addition, the parties stipulated that all written discovery requests and responses “are deemed admitted into the record and 4 Opposer also claimed ownership of Registration No. 2204333 for the mark FOGO DE CHÃO (stylized) and Registration No. 2204339 for the mark FOGO DE CHÃO and design both for clothing. Because the registered marks for restaurant services are closer to applicant’s mark than the registered marks for clothing, we limit our discussion to the marks registered for restaurant services. Opposer also alleged that “[a]pplicant did not make a sufficient ‘use in commerce’ of the mark FOGO E BRASA” as of the filing date of the application. We construe this as an allegation that applicant did not make the necessary use in commerce to support registration. However, because opposer did not refer to this ground in its brief, we find that opposer has waived it. For the same reason (i.e., failure of briefing), as well as the fact that they are not appropriately raised in an opposition proceeding, we have given no consideration to other matters asserted in the amended notice of opposition that purely relate to the ex parte examination of the application. Opposition No. 91157167 4 available for use by either party,” as are discovery deposition transcripts and exhibits.5 Pursuant to the above-noted stipulation, opposer introduced the following testimony and evidence during its testimony period: 1. The declaration of Nathan A. Engels, one of opposer’s attorneys, with attached exhibits; 2. The declaration of Jair Coser, one of the founders of opposer, with attached exhibits; 3. Opposer’s objections and responses to applicant’s first set of interrogatories; 4. Opposer’s objections and responses to applicant’s first set of requests for production of documents; 5. Applicant’s objections and responses to opposer’s first set of interrogatories; 6. Applicant’s objections and responses to opposer’s second set of interrogatories; 7. Applicant’s objections and responses to opposer’s first request for production of documents; 8. Applicant’s objections and responses to opposer’s second request for production of documents; 9. The affidavit of Shlomo Pinhas, one of applicant’s members; 5 Stipulation filed October 5, 2007. Opposition No. 91157167 5 10. The affidavit of Robert Worthington, the President of M. Burr Keim Company, attesting that his company conducted a trademark search for the mark FOGO E BRASA; 11. The discovery deposition of Shlomo Pinhas with attached exhibits; 12. The discovery deposition of Michael Pinhas, one of applicant’s members, with attached exhibits; and, 13. The discovery deposition of David Pinhas, one of applicant’s members, with attached exhibits. Opposer also filed a notice of reliance on certified copies of its pleaded registrations showing the current status and title of the registrations. Applicant did not introduce any testimony or evidence during its testimony period. Standing Because opposer has properly made its pleaded registrations of record, opposer has established its standing. Cunningham v. Laser Golf Corp., 222 F.3d 943, 55 USPQ2d 1842, 1844 (Fed. Cir. 2000); Lipton Industries, Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (CCPA 1982). Priority Because opposer’s pleaded registrations are of record, Section 2(d) priority is not an issue in this case as to the marks and the services covered by the registrations. King Opposition No. 91157167 6 Candy Co. v. Eunice King’s Kitchen, Inc., 496 F.2d 1400, 182 USPQ 108, 110 (CCPA 1974). Likelihood of Confusion Our determination under Section 2(d) is based on an analysis of all of the probative facts in evidence that are relevant to the factors bearing on the issue of likelihood of confusion. In re E. I. du Pont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563, 567 (CCPA 1973). See also, In re Majestic Distilling Company, Inc., 315 F.3d 1311, 65 USPQ2d 1201, 1203 (Fed. Cir. 2003). In any likelihood of confusion analysis, two key considerations are the similarities between the marks and the similarities between the services. See Federated Foods, Inc. v. Fort Howard Paper Co., 544 F.2d 1098, 192 USPQ 24, 29 (CCPA 1976) (“The fundamental inquiry mandated by §2(d) goes to the cumulative effect of differences in the essential characteristics of the goods and differences in the marks”). A. The fame of opposer’s marks. This du Pont factor requires us to consider the fame of opposer’s marks. Fame, if it exists, plays a dominant role in the likelihood of confusion analysis because famous marks enjoy a broad scope of protection or exclusivity of use. A famous mark has extensive public recognition and renown. Bose Corp. v. QSC Audio Products Inc., 293 F.3d 1367, 63 USPQ2d 1303, 1305 (Fed. Cir. 2002); Recot Inc. v. M.C. Opposition No. 91157167 7 Becton, 214 F.3d 1322, 54 USPQ2d 1894, 1897 (Fed. Cir. 2000); Kenner Parker Toys, Inc. v. Rose Art Industries, Inc., 963 F.2d 350, 22 USPQ2d 1453, 1456 (Fed. Cir. 1992). Fame may be measured indirectly by the volume of sales and advertising expenditures of the goods and services identified by the marks at issue, “by the length of time those indicia of commercial awareness have been evident,” widespread critical assessments and through notice by independent sources of the products identified by the marks, as well as the general reputation of the products and services. Bose Corp. v. QSC Audio Products Inc., 63 USPQ2d at 1305-1306 and 1309. Although raw numbers of product sales and advertising expenses may have sufficed in the past to prove fame of a mark, raw numbers alone may be misleading. Some context in which to place raw statistics may be necessary (e.g., the substantiality of the sales or advertising figures for comparable types of products or services). Bose Corp. v. QSC Audio Products Inc., 63 USPQ2d at 1309. Finally, because of the extreme deference that we accord a famous mark in terms of the wide latitude of legal protection it receives, and the dominant role fame plays in the likelihood of confusion analysis, it is the duty of the party asserting that its mark is famous to clearly prove it. Opposition No. 91157167 8 Leading Jewelers Guild Inc. v. LJOW Holdings LLC, 82 USPQ2d 1901, 1904 (TTAB 2007). Jair Coser testified that opposer opened its first restaurant in Dallas, Texas in 1997, that it now has seven restaurants and that it is the number one churrascaria (i.e., Brazilian style steakhouse) in the United States.6 However, there is no testimony or evidence regarding how many churrascarias there are in the United States or what percentage of the market these types of restaurants command. Opposer made of record the gross revenues generated by opposer’s seven restaurants and its advertising expenditures. The revenue figures were designated confidential so that we may only refer to them in general terms. We can say that on their face the numbers are relatively large. To provide some context for these figures, opposer introduced articles from Restaurants and Institutions magazine ranking opposer’s chain of FOGO DE CHÃO restaurants 303 (July 2003), 267 (July 2004) and 271 (July 2005) in terms of revenue.7 While opposer has achieved commercial success, we find that the evidence of record is not sufficient to establish that opposer’s FOGO DE CHÃO or FOGO marks are 6 Coser Declaration ¶¶3 and 5. 7 Engel’s Declaration Exhibit D. Opposition No. 91157167 9 famous marks for purposes of likelihood of confusion. In particular, there can be a significant difference in the revenues between a chain restaurant that is number one and number 271. And the articles about opposer’s restaurants appear to be more in the nature of telling readers about a new restaurant than a reflection of the public’s recognition of the restaurant. B. The similarity or dissimilarity and nature of the services described in the application and registrations. The services are identical. Applicant is seeking to register its mark for restaurant services and opposer has registered its marks for restaurant services. C. The similarity or dissimilarity of likely-to-continue trade channels and classes of consumers. Because the services identified in the application and the cited registrations are identical, we must presume that the channels of trade and classes of purchasers are the same. See Genesco Inc. v. Martz, 66 USPQ2d 1260, 1268 (TTAB 2003) (“Given the in-part identical and in-part related nature of the parties’ goods, and the lack of any restrictions in the identifications thereof as to trade channels and purchasers, these clothing items could be offered and sold to the same classes of purchasers through the same channels of trade”); In re Smith and Mehaffey, 31 USPQ2d 1531, 1532 (TTAB 1994) (“Because the goods are legally identical, they must be presumed to travel in the Opposition No. 91157167 10 same channels of trade, and be sold to the same class of purchasers”). Accordingly, the trade channels must be construed to include single location restaurants, both formal and casual, as well as outlets in food courts or other locations in which multiple purveyors of restaurant services are present. And as a result, we must consider the classes of customers to include all members of the general public, including those in search of formal dining options, and those seeking more casual options. D. The conditions under which and buyers to whom sales are made, i.e. “impulse” vs. careful, sophisticated purchasing. Applicant argues that “[t]he restaurants at issue here are not fast food restaurants with a value-priced menu, and based on the atmosphere and the average meal price, common sense recognizes that even though the purchase of a meal is not a big-ticket item, consumers use care in deciding where they want to eat.”8 However, we must make our likelihood of confusion analysis on the services as they are described in the application and registrations at issue, regardless of 8 Applicant’s Brief, p. 11. David Pinhas testified that at applicant’s restaurant, the salad bar at lunch is $9.99, the salad bar and meats at lunch is $17.97, and the salad bar and meats at dinner is $29.97. (Pinhas Dep., p. 24). While there was no direct testimony regarding the price at opposer’s restaurants, an article in the October 3, 1997 issue of The Dallas Morning News reports that “[w]ord has spread fast about Fogo de Chao (sic) and its fixed-price policy. The crowd at lunch ($19.90) is growing, and tables are full at dinner ($25.50) for the all-you-can-eat salad bar and rotisserie beef, chicken, lamb or pork.” (Engels Dec., Exhibit A). Opposition No. 91157167 11 what the evidence shows the services to actually be. Canadian Imperial Bank of Commerce vs. Wells Fargo Bank, N.A., 811 F.2d 1490, 1 USPQ2d 1813, 1815 (Fed. Cir. 1987). Thus, as noted above, we must assume that the restaurant services rendered by the parties encompass inexpensive or moderately-priced restaurants. In view thereof, applicant’s argument that the restaurant services are not fast food restaurants and that the atmosphere and actual cost of the services results in consumers exercising care in selecting a restaurant is legally irrelevant. In re Bercut-Vandervoort & Co., 229 USPQ 763, 765 (TTAB 1986) (rejecting applicant’s arguments regarding the high cost and quality of its wine and the sophistication of its purchasers where the application described the goods merely as wine). See also In re Opus One Inc., 60 USPQ2d 1812, 1817 (TTAB 2001). E. The similarity or dissimilarity of the marks in their entireties as to appearance, sound, connotation and commercial impression. We now turn to the du Pont likelihood of confusion factor focusing on the similarity or dissimilarity of the marks in their entireties as to appearance, sound, connotation and commercial impression. In re E. I. du Pont De Nemours & Co., 177 USPQ at 567. In a particular case, any one of these means of comparison may be critical in finding the marks to be similar. In re White Swan Ltd., 9 USPQ2d 1534, 1535 (TTAB 1988); In re Lamson Oil Co., 6 Opposition No. 91157167 12 USPQ2d 1041, 1042 (TTAB 1988). In comparing the marks, we are mindful that where, as here, the services are identical, the degree of similarity necessary to find likelihood of confusion need not be as great as where there is a recognizable disparity between the services. Century 21 Real Estate Corp. v. Century Life of America, 970 F.2d 874, 23 USPQ2d 1698, 1700 (Fed. Cir. 1992); Schering-Plough HealthCare Products Inc. v. Ing-Jing Huang, 84 USPQ2d 1323, 1325 (TTAB 2007); Jansen Enterprises Inc. v. Rind, 85 USPQ2d 1104, 1108 (TTAB 2007). While the marks must be compared in their entireties when analyzing their similarity or dissimilarity, there is nothing improper in stating that for rational reasons, more or less weight has been given to a particular feature of a mark. In re National Data Corporation, 753 F.2d 1056, 224 USPQ 749, 751 (Fed. Cir. 1985). In the case of marks consisting of words and a design, the words are normally given greater weight because they would be used by consumers to request the products. In re Dakin’s Miniatures, Inc., 59 USPQ2d 1593, 1596 (TTAB 1999); In re Appetito Provisions Co., 2 USPQ2d 1553, 1554 (TTAB 1987). In fact, Shlomo Pinhas testified that most of applicant’s customers heard about applicant through word-of-mouth.9 9 Shlomo Pinhas Dep., p. 63. Opposition No. 91157167 13 In this case, not only are the word portions of the parties’ marks given greater weight, but the word “Fogo” in the word portion is the dominant element of both applicant’s mark and opposer’s marks. The significance of “Fogo” as the dominant element of applicant’s mark and opposer’s composite marks is reinforced by its location as the first word of the mark. Presto Products Inc. v. Nice-Pak Products, 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 Imports Inc. v. Veuve Clicquot Ponsardin, 396 F.3d 1369, 73 USPQ2d 1689, 1692 (Fed. Cir. 2005)(“Veuve” is the most prominent part of the mark VEUVE CLICQUOT because “veuve” is the first word in the mark and the first word to appear on the label); Century 21 Real Estate Corp. v. Century Life of America, 23 USPQ2d at 1700 (Fed. Cir. 1992) (upon encountering the marks, consumers must first notice the identical lead word). Opposer has registered FOGO standing alone, presumably in recognition of the fact that “Fogo” is the dominant part of its composite marks. In this regard, opposer has introduced evidence that consumers are likely to abbreviate its mark to “Fogo.” The following articles are samples of the evidence submitted by opposer to illustrate how writers have shortened FOGO DE CHÃO to “Fogo.”10 10 Engel’s Declaration Exhibit B. Opposition No. 91157167 14 The Dallas Morning News (October 3, 1997): “Brazilian steakhouse is a meat-eaters’ mecca” (Headline) But reservations are accepted at Fogo, so make ‘em, if you must. * * * While you can get a reservation at Fogo, you can’t get a menu. The Dallas Morning News (January 2, 1998): Few restaurants generated as many queries as this one. In fact, calls came in for “Fogo de something or other” or “that Brazilian place” even before it opened, and the inquiries haven’t let up. The Atlanta Constitution (November 16, 2001): Now the city’s second churrasqueria has debuted in Dunwoody. Carro de Boi follows the same format [as FOGO DE CHÃO] but works at a different level. Compared with Fogo, it is physically much smaller, and price-wise, charges about half. Chicago Tribune (October 31, 2002): “Cheap steaks for cheapskates” (Headline) Run, don’t walk, to Fogo. Chicago Lawyer (December 2002): “Fogo: a good place to meat” (Title) Opposition No. 91157167 15 It’s been a week since I last Fogo’d, and I’m still on a steroidal meat high. After one meal here (“you be a man”). Yes, one meal at Fogo will turn even a mild-mannered notary public into a fire- breathing devil. Opposer also introduced into evidence news articles in which applicant’s mark FOGO E BRASA was shortened to “Fogo.”11 Phoenix Magazine (October 2002): Fogo E Brasa is a classy joint with remarkably good food. And trust me on this: The masses will be so turned off by Fogo’s pricing ($29.97 per person for dinner, $17.97 for a more limited lunch) that they’ll go elsewhere, leaving you in peace with a splendid, rodizio-style feast in a pleasantly upscale setting. Ahwatukee Foothill News (www.ahwatukee.com): It may seem unusual for a restaurant to mix fine dining and an all-you-can-eat buffet, but it is done extremely well at Fogo e Brasa Brazilian Steak House. * * * The service is rock solid at Fogo with a staff that is trained to know not to ask you how you’re doing every two minutes, but to keep your dining area clear and to answer your questions. At the end of an online review of FOGO E BRASA (dated May 16, 2006),12 readers left the following messages: Lisa says: May 17, 2006 at 8:23 am 11 Engel’s Declaration Exhibit C. 12 Shlomo Pinhas Dep., Exhibit 30. Opposition No. 91157167 16 OMG that is such a bargain! The local Fogo here in DFW charges $20 if you only want the salad bar.13 It’s a good salad bar and the salad bar and sides (not hot buffet) is close to $50 per person. Of course, you don’t have to drive all the way out to Ahwatukee. Melati says: May 17, 2006 at 4:35 pm This must be the reason why Fogo and Rio has (sic) stayed in business while countless other Brazilian restaurants have come and gone. Finally, we note that applicant identifies its carry- out services as FOGO TO GO.14 Thus, applicant itself shortens the full name of its restaurant from FOGO E BRASA to FOGO. “[U]sers of language have a universal habit of shortening full names – from haste or laziness or just economy of words. Examples are: automobile to auto; telephone to phone; necktie to tie; gasoline service station to gas station.” In re Abcor Development Corp., 588 F.2d 511, 200 USPQ 215, 219 (CCPA 1978) (J. Rich, concurring). [C]ompanies are frequently called by shortened names, such as Penney’s for J.C. Penney’s, Sears for Sears and Roebuck (even before it officially changed its name to Sears alone), Ward’s 13 Applicant does not have a restaurant in Dallas. Its only restaurant is in a Phoenix suburb. (Shlomo Pinhas Dep., 54). On the other hand, opposer opened its first FOGO DE CHÃO restaurant in Dallas, Texas in 1997. Opposer has continuously operated its FOGO DE CHÃO restaurant in Dallas through trial. (Coser Dec. ¶3 and Exhibits A, B, and C). 14 Shlomo Pinhas Dep., p. 39; David Pinhas Dep., p. 28. Opposition No. 91157167 17 for Montgomery Ward’s, and Bloomies for Bloomingdales. Marshall Field & Co. v. Mrs. Fields Cookies, 25 USPQ2d 1321, 1333 (TTAB 1992). The evidence shows that the same thing has occurred with the marks of opposer and applicant. Accordingly, we find that FOGO is the dominant element of applicant’s mark FOGO E BRASA and of opposer’s composite mark FOGO DE CHÃO. Despite the fact that applicant’s mark includes the “E BRASA” suffix and a drawing of a bull, these differences are not sufficient to distinguish applicant’s mark from opposer’s marks FOGO DE CHÃO and FOGO because the word “fogo” is the easiest part of the marks to say and remember. Also, we recognize that FOGO E BRASA, FOGO DE CHÃO and FOGO have different meanings to those familiar with the Portuguese language. However, we are dealing with the issue of likelihood of confusion vis-à-vis the general public in the United States, most of whom do not know Portuguese. Therefore, the word “Fogo” must be treated as an arbitrary term when used in connection with restaurant services, and the marks of the parties highlighted by the word “fogo” would engender similar commercial impressions. In view of the facts that opposer has registered the mark FOGO as well as FOGO DE CHÃO, and that the word “Fogo” is the dominant element of applicant’s mark and opposer’s composite mark, we find that applicant’s mark is similar to Opposition No. 91157167 18 opposer’s mark in terms of appearance, sound, meaning and commercial impression. F. Instances of actual confusion. Opposer contends that it has made of record four instances of actual confusion. The first purported instance of actual confusion is a March 15, 2002 email15 from a prospective customer located in Phoenix inquiring about opposer’s recent opening of a restaurant in Phoenix (“I’ve heard you would open a Fogo de Chao in Scottsdale, can you give me further information?”).16 Applicant argues that this email does not establish actual confusion because it shows that the writer allegedly heard from an unnamed source that opposer “would open a restaurant in Phoenix,” not that the writer saw a Fogo E Brasa advertisement, and not that the writer was aware that there was a Fogo E Brasa restaurant. The second purported instance of actual confusion is a November 8, 2002 email from a prospective customer stating that “I thought I saw an ad in the Phoenix airport for a Fogo de Chao restaurant in Chandler, Arizona. I don’t see it on your website. Was I dreaming?”17 Applicant argues 15 Applicant opened its restaurant on March 4, 2002. (Applicant’s answers and objections to opposer’s first set of interrogatories; Shlomo Pinhas Dep., p. 49). 16 Coser Dec., Exhibit E. Applicant’s restaurant is located in a suburb of Phoenix. (Shlomo Pinhas Dep., pp. 53-54, 57). 17 Coser Dec., Exhibit E. Opposition No. 91157167 19 that this email is not probative of actual confusion because it does not in any way refer to applicant nor does it identify any specifics regarding the ad in the Phoenix airport. The third purported instance of actual confusion is a July 17, 2003 email from a prospective customer expressing his disappointment that opposer was not operating a restaurant in Arizona.18 I live in Arizona and make it a point to visit Fogo de Chao every time I’m in Texas. Recently (sic) I heard you opened a restaurant in Arizona and was disappointed to find out it was Fogo E Brasa. Applicant argues that this email is not evidence of actual confusion because the statement confirms that the writer recognized the differences in the marks and the source of the services. The final purported instance of actual confusion is the user commentary at the end of an online review of FOGO E BRASA (dated May 16, 2006) stating that “[t]he local Fogo here in DFW charges $20 if you only want the salad bar.” 19 Applicant did not discuss the probative value of this exhibit. 18 Coser Dec., Exhibit E. 19 Shlomo Pinhas Dep., Exhibit 30. This exhibit was referenced in the previous section regarding whether consumers shorten applicant’s mark FOGO E BRASA to FOGO. Opposition No. 91157167 20 We recognize that none of these reported instances of actual confusion constitutes a “smoking gun” (e.g., the is no statement from an individual saying “here is a photograph of the ad I saw in the Phoenix airport for FOGO E BRASA and I thought it was a FOGO DE CHÃO restaurant”), but we also recognize that evidence of actual confusion is very difficult to obtain, and that any such evidence can be criticized. Taken together, though, this evidence supports our conclusion, as discussed below, that applicant’s use of its mark for restaurant services is likely to cause confusion with opposer’s marks. G. Balancing the factors. In view of the facts that the marks are similar and that the services are identical, and because we must presume that the services move in the same channels of trade and are available to the same classes of consumers, we find that applicant’s registration of the mark FOGO E BRASA and design is likely to cause confusion with opposer’s marks FOGO, FOGO DE CHÃO (stylized) and FOGO DE CHÃO and design all for restaurant services. Decision: The opposition is sustained and registration to applicant is refused. Copy with citationCopy as parenthetical citation