Rasi Harper and Tafari Harperv.Lai Lan Enterprises LLCDownload PDFTrademark Trial and Appeal BoardNov 25, 202091249557 (T.T.A.B. Nov. 25, 2020) Copy Citation Mailed: November 25, 2020 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Rasi Harper and Tafari Harper v. Lai Lan Enterprises LLC _____ Opposition No. 91249557 _____ Andrew Agati and Elisé K. Yarnell of Hahn Loeser & Parks LLP, for Rasi and Tafari Harper. Eugene Strupinsky of Lurie|Strupinsky for Lai Lan Enterprises LLC. _____ Before Bergsman, Lykos and Coggins, Administrative Trademark Judges. Opinion by Bergsman, Administrative Trademark Judge: I. Prologue “This is a family dispute disguised as a trademark issue. And this is absolutely not the forum to resolve the acrimony between two brothers and their sister.”1 We agree. Nevertheless, here we are. 1 Applicant’s Brief (25 TTABVUE 5). This Opinion Is Not a Precedent of the TTAB Precedent of the TTAB PrePrecedent of the TTAB Opposition No. 91249557 - 2 - II. Introduction Lai Lan Enterprises LLC (Applicant) seeks registration on the Principal Register for the mark SOBK, in standard character form, for the goods listed below:2 Hat boxes of cardboard; Hat boxes of paper, in International Class 16; Hats; Hats for infants, babies, toddlers and children; Pants; Pants for adults; Pants for children; Pants for babies; Shirts; Socks; Athletic pants; Athletic apparel, namely, shirts, pants, jackets, hats and caps; Baseball caps and hats; Bucket hats; Camouflage pants; Capri pants; Denims; Fashion hats; Gym pants; Headwear, namely, Hats; Headwear, namely, Knitted Hats; Jogging pants; Lounge pants; Outerwear, namely, Hats; Outerwear, namely, Gloves; Outerwear, namely, Scarves; Outerwear, namely, Jackets; Outerwear, namely, Coats; Rain hats; Ski pants; Sleep pants; Sports caps and hats; Stretch pants; Sweat pants; Tap pants; Women’s hats and hoods; Woolly hats; Yoga pants, in International Class 25; and Hat pins of precious metal, in International Class 26. Rasi Harper, residing in Sarasota Springs, New York,3 and Tafari Harper, residing in Troy, New York (Opposers),4 oppose the registration of Applicant’s SOBK trademark under Section 1(a) of the Trademark Act, 15 U.S.C. § 1051(a), on the ground that Applicant is not the owner of the mark.5 According to Opposers, the 2 Serial No. 88056635 filed July 28, 2018, under Section 1(a) of the Trademark Act, 15 U.S.C. § 1(a), claiming first use of the mark anywhere on April 2, 2017 in all three classes and first use in commerce on April 4, 2018 in all three classes. 3 Rasi Harper Decl. ¶4 (22 TTABVUE 44). 4 Tafari Harper Decl. ¶4 (22 TTABVUE 53). 5 Section 1(a)(1) of the Trademark Act, 15 U.S.C. § 1(a)(1), provides “[t]he owner of a trademark used in commerce may request registration of its trademark on the principal register.” Opposition No. 91249557 - 3 - SOBK partnership consisting of Rasi Harper, Tafari Harper, and Crystal Harper purportedly owns the trademark.6 Applicant, in its Answer, denies the salient allegations in the Notice of Opposition. Applicant asserted affirmative defenses that are not affirmative defenses but amplifications of its denials. The parties agreed to resolve this proceeding by Accelerated Case Resolution (“ACR”) in lieu of a trial utilizing a modified summary judgment format stipulating, “the Board may resolve genuine disputes of material fact and issue a final ruling based on the parties’ ACR submissions.”7 III. The Record The record includes the pleadings, and, by operation of Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), the file of Applicant’s application for the SOBK mark. In addition, the parties introduced the evidence listed below: A. Opposers’ testimony and evidence. 1. Declaration of Rasi Harper (July 14, 2020) with exhibits;8 2. Declaration of Tafari Harper (July 14, 2020) with exhibits;9 3. Excerpts from the Crystal Harper discovery deposition;10 6 Notice of Opposition ¶¶50-51 (1 TTABVUE 8). 7 7 TTABVUE 5-6. 8 22 TTABVUE 43-50. 9 22 TTABVUE 52-58. 10 22 TTABVUE 63-83. Opposers improperly introduced a condensed version of the Crystal Harper discovery deposition. Trademark Rule 2.126(g)(1), 37 C.F.R. § 2.126(g)(1), provides “[t]he deposition transcript must be submitted in full-sized format (one page per sheet), not condensed (multiple pages per sheet).” Opposition No. 91249557 - 4 - 4. Declaration of William Barton, a purchaser of a SOBK hat;11 5. Declaration of Rasi Harper (October 7, 2020);12 and 6. Declaration of Tafari Harper (October 7, 2020).13 B. Applicant’s testimony and evidence. 1. Declaration of Crystal Harper (September 18, 2020), Applicant’s sole owner;14 and 2. Declaration of Crystal Harper (October 28, 2020) with exhibits.15 IV. Facts regarding the parties’ conduct, intent and relationship. We summarize the relevant facts regarding the adoption and use of the SOBK trademark and business relationship between the parties below. The overwhelming evidence is the testimony of the parties through their declarations and the discovery deposition of Crystal Harper. There is very little in the way of corroborating documentary evidence. Thus, the evidentiary showing is primarily a “they said, she said” situation. However, Crystal Harper did not come across as a credible witness in her discovery deposition. Despite her testimony that she was prepared to testify on behalf of Applicant,16 she was unprepared and unable to answer basic questions to which she should have known the answer and for which she was obligated to prepare to 11 22 TTABVUE 110-111. 12 30 TTABVUE 15. 13 30 TTABVUE 17-18. 14 25 TTABVUE 19-28. 15 31 TTABVUE 16-78. 16 Crystal Harper Discovery Dep., p. 29 (22 TTABVUE 69). There is no other person beside Crystal Harper who can speak on behalf of Applicant. Id. Opposition No. 91249557 - 5 - answer as Applicant’s designee under Fed. R. Civ. P. 30(b)(6). We reach this conclusion based on her testimony summarized below: ● Crystal Harper does not recall whether Applicant has a domain name or a website that says “Lai Lan” (Applicant’s name);17 ● Crystal Harper could not recall what products Applicant sold in 2012 through 2017;18 ● Crystal Harper was not sure whether Applicant distinguishes hats from other apparel;19 ● Despite having an accounting background,20 Crystal Harper was unaware if Applicant listed any intellectual property on its tax returns;21 ● Despite having prepared and filed the application at issue, without any assistance,22 Crystal Harper could not recall whether the four photographs of what appear to be the same hat were photographs of the same hat or different hats;23 ● Crystal Harper did not know the source of the hats depicted in the application specimens;24 and ● Crystal Harper did not know who had access to info@SOBKhats.com in July 17 Id. at 17-18 (22 TTABVUE 66-67). 18 Id. at pp. 34-40 (22 TTABVUE 70-71). 19 Id. at p. 41 (22 TTABVUE 71). 20 Id. at pp. 21-22 (22 TTABVUE 67-68). 21 Id. at p. 44 (22 TTABVUE 72). 22 Id. at p. 45 (22 TTABVUE 72). 23 Id. at pp. 51-52 (22 TTABVUE 73). 24 Id. at pp. 57, 63-64 (22 TTABVUE 74 and 75). As noted below, Crystal Harper registered the domain name sobkhats.com. Opposition No. 91249557 - 6 - 2018.25 In addition, Crystal Harper testified, “on or about April 13, 2017, I hired a professional designer to create the artwork and logos for the SOBK brand and website on behalf of [Applicant], which owns the copyrights to the designs.”26 However, she did not introduce a copy of the contract with the designer, nor did she introduce a declaration from the designer to corroborate her testimony. Finally, Crystal Harper testified, “‘SOBK’, ‘Society of Bold Kids,” and ‘SOBK Hats’ are all registered assumed names (d/b/a) of [Applicant].”27 However, she did not introduce the assumed name registrations to corroborate her testimony. We find Crystal Harper’s vague and inconsistent discovery testimony permeates the testimony in her declarations introduced into evidence after the family dispute. In other words, Crystal Harper’s lack of credibility in her discovery deposition affects her credibility in her testimony declarations. Crystal Harper complains, “I’m being put in a position to prove a negative – that no partnership existed.”28 That is incorrect. Opposers have the burden of proving Applicant is not the owner of the SOBK trademark and, therefore, not the proper owner of the SOBK trademark application. We have accepted the test proffered by Applicant for determining whether a partnership or some other form of association or affiliation exists between Opposers and Crystal Harper or Applicant. We have set 25 Id. at p.113 (22 TTABVUE 78). 26 Crystal Harper Decl. ¶16 (25 TTABVUE 21). 27 Crystal Harper Decl. ¶23 (25 TTABVUE 21). 28 Crystal Harper Decl. ¶21 (25 TTABUE 21). Opposition No. 91249557 - 7 - forth the relevant facts below and have applied the facts to the test discussed above. We have not put Applicant to the requirement of proving no partnership or other type of association or affiliation exists. However, we have analyzed the record to see whether Applicant has rebutted the facts introduced into evidence by Opposers. As noted above, both Opposers testified that before the personal dispute with Crystal Harper, the siblings (Rasi, Tafari, Crystal and Tesfa) “would work together on various business projects with the hope they would successful. The SOBK effort was no different.”29 Crystal Harper, however, testified that she formed Applicant in 2012 to operate her personal businesses and that she has “previously included [Opposers] in these side-businesses.”30 Crystal Harper testified that she had “been conducting all my apparel business through [Applicant] since 2012.”31 One thing the parties agree on is that they never discussed the formal structure under which they would conduct the SOBK brand business venture.32 On April 1, 2017, Crystal Harper registered the domain name sobkhats.com and societyofboldkids.com on behalf of Applicant.33 29 Rasi Harper Decl. ¶7 (22 TTAVUE 44); Tafari Harper Decl. ¶7 (22 TTABVUE 53). 30 Crystal Harper Decl. ¶¶8 and 9 (25 TTABVUE 20). 31 Crystal Harper Decl. ¶21 (25 TTABVUE 21). 32 Crystal Harper Decl. ¶¶18 and 19 (25 TTABVUE 21); Rasi Harper Decl. ¶¶7, 12, 17, 27 (22 TTABVUE 44-46 and 48); Tefari Harper Decl. ¶¶7, 10, 15 (22 TTABVUE 53-55). 33 Crystal Harper Decl. ¶12 (25 TTABVUE 20); Crystal Harper Decl. ¶28 and Exhibit C (31 TTABVUE 21 and 31-37). Ms. Harper testified that she created an Instagram account @sobkhats, as well as Facebook and Twitter accounts for SOBK related activities. Id. at ¶13 (25 TTABVUE 20). However, she did not include a date or any documentary corroboration. Opposition No. 91249557 - 8 - On April 19, 2017, Crystal Harper sent Opposers a link to sobkhats.com via text message asking for feedback and explaining that she is “doing a hat line” and that she is looking for ideas.34 Neither party introduced the information in the purported link to sobkhats.com. Nevertheless, both Opposers replied. On April 3, 2018, Crystal Harper and Rasi Harper communicated via text messages regarding the SOBK project. Crystal Harper: SoBK is a socially conscious urban hat brand based in NYC. The true measure of a company isn’t just great products but the impact that company has on society, we’re committed to making a difference in ways that extend far beyond products. Rasi Harper: We can change the sb page over. Crystal Harper: Ok. Tesfa gonna be salty? Rasi Harper: I told him already. It’s time to start monetizing.35 34 Rasi Harper Decl. ¶8 and Exhibit F (22 TTABVUE 44 and 85); Crystal Harper Decl. ¶9 and Exhibit A (31 TTABVVUE 17 and 23). 35 Rasi Harper Decl. ¶ 10 and Exhibit G (22 TTABVUE 45 and 87). Tesfa is another sibling who is not involved in the SOBK trademark business project. Tesfa is an aspiring rap music performer. Rasi Harper Decl. ¶8 (22 TTABVUE 44). “Because Tesfa’s rap music was sometimes really hard-core, we did not want the brand to be associated with the prior efforts in 2017 [presumably to launch the SOBK brand]. Tesfa understood that.” Rasi Harper Decl. ¶9 (22 TTABVUE 44-45). Presumably, the “sb page” refers to sbmusicgroup.com. Rasi Harper Decl. ¶8 (22 TTABVUE 44); Tefari Harper Decl. ¶8 (22 TTABVUE 53). Rasi Harper and Tafari Harper testified that Rasi Harper changed his Instagram account to “sobkhats.” Rasi Harper Decl. ¶15 (22 TTABVUE 48); Tafari Harper Decl. ¶19 (22 TTABVUE 56). On the other hand, Crystal Harper contends that she created the Instagram account @sobkhats. Crystal Harper Decl. ¶13 (25 TTABVUE 20). Opposition No. 91249557 - 9 - In a text dated April 11, 2018, Rasi Harper asked Crystal Harper whether SOBK has a trademark. Crystal Harper replied, “Started the process.”36 Because the parties did not have any hats to test market, Rasi Harper ordered hats from two potential printers: BucksWholesale.com and Claire’s Embroidery.37 The invoices from BucksWholesale.com for “BK hats” were dated March 18, 2018, May 4, 2018 and July 23, 2018.38 The invoices from Claire’s Embroidery were dated March 26, 2018 through July 20, 2018.39 The invoices referring to SOBK were dated April 20, 2018, May 18, 2018, May 24, 2018, and July 20, 2018.40 In undated text messages, Tafari Harper and Crystal Harper discussed accounting and equity. Crystal Harper: So, let’s pull all of that together. And with this new order we can move accordingly with accounting for the invoices, doing the inventory, and booking the equity. If we do discounts, we should do it in the app. I did a couple and I put thr [sic] price they pay. Using the accounting system you can get a full picture of what your expenses are and your income. Other wise [sic], you think you’re making money and you’re not. Lol. Tafari Harper: Ok sound [sic] good but put all the invoices in there it captures everything from day one and how much it took I want every dollar spent so far accounted for set up fees for logos initial [sic] order the whole thing 36 Rasi Harper Decl. Exhibit O (22 TTABVUE 128). 37 Rasi Harper Decl. ¶¶13-14 (22 TTABVUE 45). 38 Rasi Harper Decl. Exhibit H (22 TTABVUE 89-91). 39 Rasi Harper Decl. Exhibit I (22 TTABVUE 93-103). 40 Id. at 22 TTABVUE 97, 100, 102, and 103. Opposition No. 91249557 - 10 - that equity. Crystal Harper: Like, me buying the table, sign etc [sic] to sell merch, those are expenses. That cuts into that $20 profit real quick. So it’s important to know what we are spending and making. Tafari Harper: Does that last one we got from the lady and sold and paid for after that party is that our equity as well[?] Crystal Harper: Nothing. For those initial orders. [sic] I didn’t have invoices and all the money made off of the hats. So that That’s not in quick books. I did deposit the $940 tho., which helped pay for the order. Tafari Harper: Make [sic] no sense there was thousands already spent go back and put all those invoices in there rah have all. Crystal Harper: We will just go though [sic] everything and catch up. Not a big deal, but we need to account for what’s in and out. Anything you spend should be equity in the company. So if y’all buy hats, we should inventory, and all sales go through the app including cash. Then we deposit the cash. That’s what I’ve been doing. I swipe cash and credit and keep the money separate. We gotta sit and talk tho, but that’s essentially the best way to be accountable, know what’s coming in and out and anything money invested is equity in the company.41 41 Tafari Decl. ¶10 and Exhibit Z (22 TTABVUE 54 and 161-164). Opposition No. 91249557 - 11 - Tafari Harper testified that it made sense for Crystal Harper to keep the books “given her accounting experience.”42 The parties did not have a meaningful social media presence. We worked together on figuring out the best Instagram handle to use, as well as the creation of a Facebook page and a website, and in addition, names to give hats so that they could be marketed and shown separately on the website. Exhibits G, J, S, T, and U to the Brief are true and accurate copies of text messages reflecting this, including my [Rasi Harper’s] comments. To get as many followers as quickly as possible onto the SOBK Instagram account, I [Rasi Harper] switched over an existing Instagram I had with approximately 24,000 followers and then changed its name to “sobkhats.” I suggested to Crystal and Tafari that “sobkhats” was best name to use because it had more of a mass cross appeal than, for example, “sobkhatsny,” which focuses on New York only. We agreed to use “sobkhats.” I maintained control of the Instagram account, and Crystal maintained control of the website.43 “Rasi [Harper] maintained control of the Instagram account, while Crystal [Harper] maintained control of the website, but we all had back-end access to both.”44 With respect to what SOBK stood for, the parties brainstormed together. Ultimately, they agreed on “Society of Bold Kids,” the choice Crystal Harper suggested.45 See the domain registration for societyofboldkids.com discussed above.46 42 Tafari Decl. ¶11 (22 TTABVUE 54). 43 Rasi Harper Decl. ¶25 (22 TTABVUE 48). See also Tafari Harper Decl. ¶19 (22 TTABVUE 55-56). 44 Tafari Decl. ¶19 (22 TTABVUE 56). See also Rasi Harper Decl. ¶25 (22 TTABVUE 48). 45 Rasi Harper Decl. ¶26 (22 TTABVUE 48); Tafari Harper Decl. ¶20 (22 TTABVUE 56). 46 31 TTABVUE 34-35. Opposition No. 91249557 - 12 - In July 26, 2018 text messages between Rasi Harper and Crystal Harper, Rasi Harper inquired as to the status of the SOBK trademark and informed her that he had an attorney that could register the mark. Crystal Harper replied that she had “filed it.”47 However, she did not file it until July 28, 2018. On that date she filed the application at issue in this proceeding. On August 3, 2018, Crystal Harper, on behalf of Applicant, filed application Serial No. 88065190 for the mark SOCIETY OF BOLD KIDS, in standard character form, for a wide variety of clothing in International Class 25.48 In an August 9, 2018 email from Crystal Harper (sobkhats@gmail.com) to Thomas Dragonette, regarding design concepts for SOBK streetwear, Crystal Harper identified Rasi Harper as her business partner. We’d be interest in seeing how we could work together for some fresh ideas to add to the mix. Feel free to stop into the barber shop to discuss design concepts with Rasi. Feel free to reach out via email at anytime. Oh, and I’m Crystal, Rasi’s sister and business partner.49 Mr. Dragonette purportedly had contacts at New Era, a hat company that would be beneficial for a start-up apparel company.50 Crystal Harper confirmed that she 47 Rasi Harper Decl. ¶30 and Exhibit CC (22 TTABVUE 49 and 171). 48 22 TTABVUE 173-176 and 180-182. 49 Rasi Harper Decl. ¶¶27-28 and Exhibit BB (22 TTABVUE 48-49 and 231). Crystal Harper authenticated this email in her discovery deposition. Crystal Harper Dep., p. 111 (22 TTABVUE 78). Rasi Harper is a barber. Rasi Harper Decl. ¶5 (22 TTABVUE 44); Crystal Harper Dep., p. 27 (22 TTABVUE 69). 50 Rasi Harper Decl. ¶28 (22 TTABVUE 49). Opposition No. 91249557 - 13 - invited Mr. Dragonette to visit Rasi Harper in his barbershop to discuss design concepts in connection with the SOBK products.51 Opposers estimate that they “incurred $5,355, just in expenses. This does not include travel costs, and it does not include the time and energy, [they] had committed.”52 On January 22, 2019, Opposers filed a Notice of Opposition against the registration of application Serial No. 88065190 for the mark SOCIETY OF BOLD KIDS (Opposition No. 91245961).53 In an order dated May 1, 2019, the Board entered a default judgment against Applicant sustaining Opposition No. 91245961 and refusing registration.54 V. Entitlement to a Statutory Cause of Action Even though Applicant does not contest it, Opposers’ entitlement to a statutory cause of action, formerly referred to as “standing,” is a threshold issue in every inter partes case. See Corcamore, LLC v. SFM, LLC, 978 F.3d 1298, 2020 USPQ2d 11277 (Fed. Cir. 2020); Australian Therapeutic Supplies Pty. Ltd. v. Naked TM, LLC, 965 F.3d 1370, 2020 USPQ2d 10837 (Fed. Cir. 2020); Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014). To establish entitlement to a statutory cause of action, a plaintiff must demonstrate: (i) an interest falling within the zone of interests protected by the statute and (ii) proximate 51 Crystal Harper Dep., pp. 114-116 (22 TTABVUE 79). 52 Tafari Harper Decl. ¶25 (22 TTABVUE 58); Rasi Harper Decl. ¶32 (22 TTABVUE 50). 53 22 TTABVUE 189-197. 54 22 TTABVUE 212 and 235. Opposition No. 91249557 - 14 - causation. Corcamore, 2020 USPQ2d 11277 at *4.55 See also Empresa Cubana, 111 USPQ2d at 1062; Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023, 1025 (Fed. Cir. 1999); Lipton Indus., Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 185, 189 (TTAB 1982). To establish their statutory entitlement to a cause of action, Opposers testified as follows: 7. Before the dispute with my sister Crystal sometime in the later part of July 2018, [Rasi], [Tafari], Crystal, me, and sometimes our other brother, Tesfa Harper, would work together on various business projects with the hope they would be very successful. The SOBK effort was no different.56 ___ 10. I always intended and believed that [we] three were working together as partners. Crystal did too, as reflected in the true and accurate copies of the text messages that appear as Exhibits Z and AA to the Brief.57 ___ 12. I always intended and believed that [we] three were working together as partners. Each of us would work together on many of the same tasks, but in the paragraphs below I will explain what I brought to the partnership.58 ___ 55 Our decisions have previously analyzed the requirements of §§ 1063 and 1064 under the rubric of “standing.” We now refer to this inquiry as entitlement to a statutory cause of action. Despite the change in nomenclature, our prior decisions and those of the Federal Circuit interpreting “standing” under §§ 1063 and 1064 remain equally applicable. 56 Rasi Harper Decl. ¶7 (22 TTAVUE 44); Tafari Harper Decl. ¶7 (22 TTABVUE 53). 57 Tafari Harper Decl. ¶10 (22 TTABVUE 54). 58 Rasi Harper Decl. ¶12 (22 TTABVUE 45). Opposition No. 91249557 - 15 - 15. Before the dispute with Crystal, we were all working together on various aspects of SOBK, but in the paragraphs below I will explain what I focused on.59 Opposers, as individuals, testified that they are partners with Crystal Harper in connection with the SOBK brand business project. They believe they have a partnership interest in the SOBK trademark and trademark application. The testimony establishes an interest falling within the zone of interests protected by the statute and a reasonable basis for Opposers’ belief of damage proximately caused by the registration of the mark. This is sufficient to demonstrate Opposers are entitled to pursue this cause of action. VI. Res Judicata Opposers introduced a copy of Applicant’s Serial No. 88065190 for the mark SOCIETY OF BOLD KIDS for a wide variety of clothing in International Class 25.60 They also introduced a copy of the Notice of Opposition they filed against that application (Opposition No. 91245961) asserting Applicant is not the owner of the mark SOCIETY OF BOLD KIDS and, therefore, not the proper applicant,61 and the May 1, 2019 entry of default judgment against Applicant sustaining Opposition No. 91245961 and refusing registration.62 In their brief, Opposers assert that the opposition should be sustained based on res judicata. [Applicant] already had the opportunity to mount its argument, and failed to do so. [Opposers’] opposition to 59 Tafari Harper Decl. ¶15 (22 TTABVUE 55). 60 22 TTABVUE 173-176 and 180-182. 61 22 TTABVUE 189-197. 62 22 TTABVUE 212 and 235. Opposition No. 91249557 - 16 - [Applicant’s] “Society of Bold Kids” application involved the exact same facts and circumstances as here. The opposition was sustained, because [Applicant] defaulted. Under principles of res judicata, [Applicant] is now barred from denying the SOBK Partnership and challenging the SOBK Mark opposition.63 Specifically, Opposers argue that the parties in the two proceedings are the same, Opposition No. 91245961 reached final judgment via default judgment, and the two oppositions involve the same set of transactional facts.64 Although Applicant contends “[b]eing strictly a matter of law, [res judicata] should have been addressed early in the case by a motion,”65 Applicant analyzes the merits of the claim in its brief.66 We hold the parties tried the res judicata issue by implied consent because Applicant did not object to Opposers assertion of res judicata on the ground that Opposers did not plead it and because Applicant addressed the issue in its brief. We deem the pleadings amended pursuant to Fed. R. Civ. P. 15(b). See Nextel Commc’ns, Inc. v. Motorola, Inc., 91 USPQ2d 1393, 1399 (TTAB 2009) (although opposer did not plead issue preclusion as a ground for opposition, because applicant did not object to opposer’s assertion of that ground in its brief and, in fact, addressed the issue in its brief, the Board deemed the pleadings to be amended pursuant to Fed. R. Civ. P. 15(b)). 63 Opposers’ Brief, p. 2 (22 TTABVUE 6). 64 Opposers’ Brief, p. 17 (22 TTABVUE 21). 65 Applicant’s Brief (25 TTABVUE 5). 66 Applicant’s Brief (25 TTABVUE 10-12). Opposition No. 91249557 - 17 - Under the doctrine of res judicata (or claim preclusion), the entry of a final judgment “on the merits” of a claim (i.e., cause of action) in a proceeding serves to preclude the relitigation of the same claim in a subsequent proceeding between the parties or their privies, even in those cases where the prior judgment was the result of a default or consent. See Lawlor v. Nat’l Screen Serv. Corp., 349 U.S. 322 (1955); Chromalloy Am. Corp. v. Kenneth Gordon, Ltd., 736 F.2d 694, 222 USPQ 187, 189- 190 (Fed. Cir. 1984); John W. Carson Found. v. Toilets.com, 94 USPQ2d 1942, 1946 (TTAB 2010); Flowers Indus., Inc. v. Interstate Brands Corp., 5 USPQ2d 1580, 1583 (TTAB 1987). A second suit is barred by res judicata or claim preclusion if (1) the parties (or their privies) are identical; (2) there has been an earlier final judgment on the merits of a claim; and (3) the second claim is based on the same set of transactional facts as the first. Jet, Inc. v. Sewage Am. Sys., 223 F.3d 1360, 55 USPQ2d 1854, 1856 (Fed. Cir. 2000). It is clear that the claim in Opposition No. 91244961 (SOCIETY OF BOLD KIDS) is different from the claim in this opposition because it involves a different mark (SOBK). In Opposition No. 91245961, Opposers alleged that Applicant is not the owner of the mark SOCIETY OF BOLD KIDS. In this proceeding, Opposers allege that Applicant is not the owner of SOBK. The claim that Applicant is not the owner SOCIETY OF BOLD KIDS and is not the owner of SOBK are simply not the same claim. The “transactional facts” are different because different marks are at issue. Therefore, Opposers’ claim against the registration of the SOBK mark is not Opposition No. 91249557 - 18 - extinguishable by the prior judgment under the principle of res judicata or claim preclusion. See Chromalloy Am. Corp. v. Kenneth Gordon, Ltd., 222 USPQ at 190.67 VII. Ownership of the SOBK trademark. Opposers contend that the proper applicant for the SOBK trademark is a partnership comprising Opposers and Crystal Harper.68 Applicant argues, to the contrary, “every action, whether taken by Crystal [Harper] or Opposers, has transpired under the corporate umbrella of [Applicant]. Furthermore, Crystal [Harper] has never intended to form a new entity with them, and no such entity or partnership was explicitly or implicitly agreed to or formed.”69 The parties agree, however, that we should use the partnership law of New York to determine whether there is a partnership (or some other association or affiliation) between Opposers and Crystal Harper.70 We find, as discussed below, that the partnership law of New York provides an acceptable template for determining whether Applicant is the proper owner of the SOBK trademark and by extension the proper applicant. “A partnership is an association of two or more persons to carry on as co -owners a business for profit.” N.Y. P’ship Law § 10(1) (quoted in Hammond v. Smith, 151 A.D.3d 1896, 1897 (N.Y. App. Div., 4th Dept. 2017)). “Where, as here, there is no written partnership agreement between the parties, a court looks to the parties’ 67 Because the final judgment in Opposition No. 91245961 was a default judgment, there were no issues litigated in the prior proceeding and, therefore, issue preclusion does not apply. See Chromalloy Am. Corp. v. Kenneth Gordon, Ltd., 222 USPQ at 189. 68 Opposers’ Brief, p. 1 (22 TTABVUE 5). 69 Applicant’s Brief (25 TTABVUE 5). 70 Applicant’s Brief (25 TTABVUE 12-13); Opposer’s Reply Brief, p. 3 (30 TTABVUE 5). Opposition No. 91249557 - 19 - conduct, intent, and relationship to determine whether a partnership existed in fact .” Hammond v. Smith, 151 A.D. at 1897, citing Fasolo v. Scarafile, 120 A.D.3d 929, 929- 930, 991 N.Y.S.2d 820 (2014). The relevant factors are (1) the parties’ intent, whether express or implied; (2) whether there was joint control and management of the business; (3) whether the parties shared both profits and losses; and (4) whether the parties combined their property, skill, or knowledge. Hammond v. Smith, 151 A.D.3d at 1897; Griffith Energy, Inc. v. Evans, 85 A.D.3d 1564, 1565, 925 N.Y.S.2d 282 (2011); Kyle v. Ford, 184 A.D.2d 1036, 1036-37, 584 N.Y.S.2d 698 (1992). No single factor is determinative; a court considers the parties’ relationship as a whole. Hammond v. Smith, 151 A.D.3d at 1897; Fasolo v. Scarafile, 120 A.D.3d at 930; Griffith Energy, Inc. v. Evans, 85 A.D.3d at 1565 (2011). A. The parties’ intent. With respect to the parties’ intent, we consider whether the parties expressly or implicitly intended to become partners. Hammond v. Smith, 151 A.D.3d at 1897. As noted above, the parties never discussed the formal structure under which they would conduct the SOBK brand business venture.71 However, the communications between the parties indicate that Opposers and Crystal Harper or Applicant intended to share ownership. 71 Crystal Harper Decl. ¶¶18 and 19 (25 TTABVUE 21); Rasi Harper Decl. ¶¶7, 12, 17, 27 (22 TTABVUE 44-46 and 48); Tefari Harper Decl. ¶¶7, 10, 15 (22 TTABVUE 53-55). Opposition No. 91249557 - 20 - In the text messages between Tafari Harper and Crystal Harper discussing accounting and equity, Crystal Harper wrote, ● So it’s important to know what we are spending and making; ● Anything you spend should be equity in the company; ● We gotta sit and talk tho, but that’s essentially the best way to be accountable, know what’s coming in and out and anything money invested is equity in the company.72 This communication indicates that any money Opposers and Crystal Harper or Applicant invest or spend on behalf of the SOBK brand project will be equity in the SOBK brand entity. The RANDOM HOUSE UNABRIDGED DICTIONARY (2020) defines “equity,” inter alia, as “the interest of the owner of common stock in a corporation” and “Informal. ownership, especially when considered as the right to share in future profits or appreciation in value.”73 Thus, whatever Opposers and Crystal Harper or Applicant invest or spend in this project will be part of their ownership interest. Crystal Harper testifies that what she meant by “equity” is “money” or “profit”74 or “it is possible that we are discussing potential ‘equity’ in [Applicant], an existing company, which Opposers could earn through their contributions.”75 This testimony 72 Tafari Decl. ¶10 and Exhibit Z (22 TTABVUE 54 and 161-164). 73 Dictionary.com (accessed November 21, 2020). The Board may take judicial notice of dictionary definitions, including online dictionaries that exist in printed format. In re Cordua Rests. LP, 110 USPQ2d 1227, 1229 n.4 (TTAB 2014), aff’d, 823 F.3d 594, 118 USPQ2d 1632 (Fed. Cir. 2016); In re S. Malhotra & Co. AG, 128 USPQ2d 1100, 1104 n.9 (TTAB 2018); In re Red Bull GmbH, 78 USPQ2d 1375, 1378 (TTAB 2006). 74 Crystal Harper Decl. ¶44(G)(i) (25 TTABVUE 25). 75 Crystal Harper Decl. ¶44(G)(iii) (25 TTABVUE 26). Opposition No. 91249557 - 21 - demonstrates that Crystal Harper understands the meaning of the word “equity” in that she concedes that she could have meant an ownership interest in Applicant. However, “money” or “profit” is not one of the definitions of “equity” and as a person with an accounting background she should have been aware of that and not used “equity” if she was referring to “money” or “profit.” In addition, it is implausible that Crystal Harper was referring to a potential equity interest in Applicant. If that is what she meant, she would have (or should have) expressly stated it in the text messages. In the April 3, 2018 text messages between Rasi Harper and Crystal Harper, the siblings were discussing beginning the SOBK brand project without Tesfa Harper because Tesfa was pursuing his music career as a rapper.76 Crystal Harper worried that Tesfa would be upset because the others were pursing the SOBK brand project without him. Rasi told her not to worry because Rasi had explained to Tesfa that the others were proceeding because it was time to “monetize” the project. We infer from this communication that the parties intended to operate some sort of joint venture without Tesfa Harper. If Crystal Harper intended to launch the SOBK brand project through Applicant, there was no reason for her to express concern about Tesfa being “salty” because according to Crystal Harper, her siblings were “salesmen.”77 Crystal Harper could always permit Tesfa Harper to sell SOBK products on behalf of Applicant if her siblings were just salespersons. 76 Rasi Harper Decl. ¶ 10 and Exhibit G (22 TTABVUE 45 and 87). 77 Crystal Harper Decl. ¶36 (25 TTABVUE 23). Opposition No. 91249557 - 22 - In an August 9, 2018 email from Crystal Harper (sobkhats@gmail.com) to Thomas Dragonette, regarding design concepts for SOBK streetwear, Crystal Harper identified Rasi Harper as her business partner. In other words, Crystal Harper held out Rasi Harper as her business partner to a third party.78 Crystal Harper contends that although the email speaks for itself, nothing in it “suggests a business partnership, notwithstanding the use of the word ‘partner.’”79 We disagree. When a person identifies another person as her partner to a third party, that identification imparts the nature of the relationship. For example, Crystal Harper did not write “Oh, and I’m Crystal, Rasi’s sister and Rasi sells my products.” Finally, Rasi Harper twice inquired about the status of filing a trademark application for the SOBK trademark. Neither time did Crystal Harper tell Rasi Harper, who is purportedly just a salesperson for Applicant, that the trademark was none of his concern because he is just a salesperson and has no ownership interest in the trademark. Based on the conduct of the parties, we find that the parties Opposers and Crystal Harper or Applicant implicitly intended to operate as a partnership or some other sort of joint venture. B. Control and management of the business. With respect to the second factor, we consider whether there was joint control and management, e.g., shared supervision of business operations and shared 78 Rasi Harper Decl. ¶¶27-28 and Exhibit BB (22 TTABVUE 48-49 and 231). 79 Crystal Harper Decl. ¶44(I)(iii) and (v) (25 TTABVUE 25-26). Opposition No. 91249557 - 23 - responsibility for handling financial affairs. Hammond v. Smith, 151 A.D.3d at 1898. Based on the testimony and evidence, we find that the parties shared control, management, and operation of the SOBK brand project. For example, ● Rasi Harper obtained product;80 ● Opposers and Crystal Harper “worked together on creating packing materials for the shipment of hats”;81 ● Rasi Harper worked on marketing, including social media;82 ● Crystal Harper was in charge of the books given her accounting experience;83 and ● Tafari Harper “focused on marketing, sales, and overall promotion.”84 Crystal Harper contends Opposers conducted all of these activities on behalf of Applicant and under Applicant’s authorization.85 However, Crystal Harper did not introduce any evidence to corroborate her testimony that, as discussed above, lacks credulity. There is nothing in the record to indicate that Crystal Harper ever said or wrote anything along the lines of the decision is mine because I own the SOBK brand or the decision is mind because SOBK is Applicant’s project. In addition, there is no 80 Rasi Harper Decl. ¶¶13-15 (22 TTABVUE 45-46). 81 Rasi Harper Decl. ¶19 (22 TTABVUE 46-47); Tafari Harper Decl. ¶24 (22 TTABVUE 57). 82 Rasi Harper Decl. ¶¶21-25 (22 TTABUE 47-48); Tafari Harper Decl. ¶19 (22 TTABVUE 55-56). 83 Tafari Harper Decl. ¶11 (22 TTABVUE 54); Crystal Harper Decl. ¶19 (25 TTABVUE 21). 84 Tafari Harper Decl. ¶16 (22 TTABVUE 55). 85 Crystal Harper Decl. ¶¶27, 31, 32, 48 and 49 (25 TTABVUE 22, 27 and 28). Opposition No. 91249557 - 24 - testimony or evidence that Opposers ever sought authorization to act on behalf of Applicant. C. Sharing of profits and losses. With respect to the third factor, we consider whether the parties shared profits and losses. A person’s receipt of a share of profits is prima facie evidence that he or she is a partner. Hammond v. Smith, 151 A.D.3d at 1899. It is well established that shared losses are an “essential element” of any partnership agreement. Where there is “undisputed evidence that [a party] never made a capital contribution to the business [such evidence] strongly suggests that no partnership existed.” (Internal citations omitted). Id. As discussed above, the text messages between Tafari Harper and Crystal Harper discussing accounting and equity indicate that the parties intended to form a partnership or other type of joint venture whereby they would share profits and losses. Crystal Harper testified, “my brothers were involved only in SOBK hats and would share profits from it.”86 Crystal Harper did not introduce any examples of any SOBK brand products other than hats. She did not introduce any excerpts from websites or social media sites displaying SOBK brand products. The only SOBK brand products of record are hats. Thus, Opposers share in the profits and losses of the only SOBK brand products of record. 86 Crystal Harper Decl. ¶29 (25 TTABVUE 22). Opposition No. 91249557 - 25 - In addition, Opposers estimate that they incurred $5,355, just in expenses, not including travel costs and the time and energy they committed to the project.87 If Opposers were just salespersons, we would have expected them to be more meticulous about keeping track of their expenses and sales than what Tafari Harper and Crystal Harper discussed in the text messages. We find that Opposers and Crystal Harper were working jointly to launch SOBK brand products and would figure out the finances later. That is not characteristic of an employer-employee relationship. D. Combined use of property, skill, or knowledge. Finally, with respect to the fourth factor, we consider whether the parties combined their property, skill, and knowledge. Hammond v. Smith, 151 A.D.3d at 1900. Based on the same facts discussed in our analysis of the control and management of the business, we find that Opposers and Crystal Harper or Applicant combined their use of skill and knowledge to launch the SOBK brand project. E. Conclusion Upon reviewing the testimony and evidence as a whole, we find that Opposers and Crystal Harper or Applicant intended to launch and operate the SOBK brand project as a partnership or some other form of joint venture. Opposers and Crystal Harper or Applicant have a joint interest in the SOBK mark. Because Applicant is not the sole owner of the mark, the application is void. See Conolty v. Conolty O’Connor NYC LLC, 111 USPQ2d 1302, 1309 (TTAB 2014) (finding application void because applicant is not the sole owner of the mark) (citing Am. Forests v. Sanders, 54 USPQ 1860 (TTAB 87 Tafari Harper Decl. ¶25 (22 TTABVUE 58); Rasi Harper Decl. ¶32 (22 TTABVUE 50). Opposition No. 91249557 - 26 - 1999) (finding intent to use application filed by Barbara Sanders void ab initio because “the true entity which had a bona fide intent to use the mark LEAF RELEAF and design was not Barbara Sanders an individual, but rather was a partnership consisting of Stephen Sanders and Barbara Sanders”), aff’d, 232 F.3d 907 (Fed. Cir. 2000)). Decision: The opposition is sustained on the ground that the application is void ab initio because the owners of the mark did not file it. Copy with citationCopy as parenthetical citation