Safeway Inc.v.ROK Drinks LLCDownload PDFTrademark Trial and Appeal BoardApr 29, 202092067036 (T.T.A.B. Apr. 29, 2020) Copy Citation This Opinion is Not a Precedent of the TTAB Mailed: April 29, 2020 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Safeway Inc. v. ROK Drinks LLC _____ Cancellation No. 92067036 _____ Jordan S. Weinstein, Michelle M. Mikol, and Sarah P. Harrell of Barnes & Thornburg LLP for Safeway Inc. W. Andrew Pequignot and Lisa F. Moore of Moore Pequignot LLC for ROK Drinks LLC. _____ Before Cataldo, Lykos and Lynch, Administrative Trademark Judges. Opinion by Lykos, Administrative Trademark Judge: On October 6, 2017, Safeway Inc. (“Petitioner”) filed a petition to cancel ROK Drinks LLC’s (“Respondent”) registration on the Principal Register for the standard character mark BANDERO for “distilled spirits” in International Class 331 on the grounds that Respondent’s mark so resembles Petitioner’s previously used and registered marks BANDOLERO for tequila that it is likely to cause confusion, 1 Registration No. 5271747, issued on August 22, 2017 from an application filed August 13, 2015. Cancellation No. 92067036 - 2 - mistake, or deception of prospective consumers under Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d). In the Petition to Cancel,2 Petitioner alleges use in commerce of its marks “since as early as 1987” and pleads ownership of the following registrations: Registration No. 18033763 for the mark BANDOLERO in typed form4 on the Principal Register for “wines and spirits; namely, tequila” in International Class 33 and Registration No. 33151835 for the stylized mark BANDOLERO on the Principal Register for “tequila” in International Class 33. The translation statement on each registration reads as follows: “The English translation of the mark “BANDOLERO” is ‘bandit.’” Pursuant to Trademark Rule 2.122(d)(1), 37 C.F.R. § 2.122(d)(1), both pleaded registrations were properly made of record for purposes of trial with the Petition to Cancel.6 2 Petition to Cancel ¶¶ 2-4; 1 TTABVUE 3-4. Portions of the record have been designated confidential pursuant to the Board’s Standard Protective Order automatically in place for all inter partes proceedings. The majority of citations to the record refer to the redacted, publicly available versions of each submission on TTABVUE, the Board’s online docketing system. The number preceding “TTABVUE” corresponds to the docket entry number; the number(s) following “TTABVUE” refer to the page number(s) of that particular docket entry. See Turdin v. Trilobite, Ltd., 109 USPQ2d 1473, 1476 n.6 (TTAB 2014). Only the docket entry number is provided for portions of the record designated confidential. 3 Registered November 9, 1993 based on an application filed February 5, 1993; renewed. 4 Prior to November 2, 2003, “standard character” drawings were known as “typed” drawings; the preferred nomenclature was changed to conform to the Madrid Protocol. See In re Viterra Inc., 671 F.3d 1358, 101 USPQ2d 1905, 1909 n.2 (Fed. Cir. 2012); see also TRADEMARK MANUAL OF EXAMINING PROCEDURE (“TMEP”) § 807.03(i) (Oct. 2018). 5 Registered October 23, 2007 based on an application filed April 26, 2006; renewed. 6 Petition to Cancel, Exhibits 1 and 2 (printouts of Registration Nos. 1803376 and 3315183 from USPTO Trademark Electronic Search System (TESS) and Assignments databases showing current owner, status and title); 1 TTABVUE 8-17. Cancellation No. 92067036 - 3 - In its answer, Respondent admits that the U.S. Patent and Trademark Office (“USPTO”) records indicate that Petitioner is the owner of its pleaded registered marks and that the registrations are subsisting; that “tequila is a type of distilled spirit;” that the specimen of use supporting its registration shows BANDERO used in connection with “premium” tequila; and that the filing dates of Petitioner’s applications to register precede the filing date of Respondent’s BANDERO application.7 Otherwise, Respondent denies the salient allegations of the Petition to Cancel. Respondent asserts various affirmative defenses, including laches, which Respondent expressly stated in its trial brief that it was no longer pursuing.8 The case is fully briefed. Petitioner, as plaintiff in this proceeding, bears the burden of establishing its standing and Section 2(d) claim by a preponderance of the evidence. See Jansen Enters. Inc. v. Rind, 85 USPQ2d 1104, 1107 (TTAB 2007). I. The Record The record includes the pleadings, and pursuant to Trademark Rule 2.122(b), 37 C.F.R. § 2.122(b), Respondent’s registration file. Petitioner introduced the testimony declaration of Maryrose Rinella, Director of Own Brands Product Manager for the beverage, snack and alcohol division of Petitioner (“Rinella Decl.”) with Exhibits A-E (11 TTABVUE – confidential; 12 TTABVUE – public). Petitioner also submitted 7 Answer ¶¶ 3 and 4; 4 TTABVUE 3-4. 8 Respondent’s Brief, p. 2 n.1; 22 TTABVUE 7. Respondent also asserted the affirmative defense of failure to state a claim upon which relief may be granted. Insofar as Respondent neither filed a formal motion to dismiss pursuant to Fed R. Civ. P. 12(b)(6) during the interlocutory phase of this proceeding, nor argued this defense in his main brief, the defense is deemed waived. See Alcatraz Media, Inc. v. Chesapeake Marine Tours, Inc., 107 USPQ2d 1750, 1752 n.6 (TTAB 2013), aff’d, 565 F. App’x 900 (Fed. Cir. 2014) (mem.). Cancellation No. 92067036 - 4 - notices of reliance during both its main (14 TTABVUE – Exhibits F-M) and rebuttal (20 TTABUVE – Exhibits N-O) testimony periods. Respondent submitted no testimony declarations or testimony depositions but made of record a notice of reliance with Exhibits 1-32 (17 TTABVUE). II. Standing Standing is a threshold issue that must be proven by the plaintiff in every inter partes case. See Empresa Cubana Del Tabaco v. Gen. Cigar Co., 753 F.3d 1270, 111 USPQ2d 1058, 1062 (Fed. Cir. 2014), cert. denied, 135 S. Ct. 1401 (2015); John W. Carson Found. v. Toilets.com Inc., 94 USPQ2d 1942, 1945 (TTAB 2010). Petitioner must prove its standing by showing a real interest in the outcome of the proceeding and a reasonable basis for believing that it would suffer damage if the mark is registered. See 15 U.S.C. § 1063; Empresa Cubana Del Tabaco v. Gen. Cigar Co., 111 USPQ2d at 1062. A “real interest” is a “direct and personal stake” in the outcome of the proceeding. Ritchie v. Simpson, 170 F.3d 1092, 50 USPQ2d 1023, 1026 (Fed. Cir. 1999). Petitioner has demonstrated through the USPTO database printouts made of record with its Petition to Cancel that it is the owner of its pleaded registrations for the mark BANDOLERO for tequila and that the registrations are valid and subsisting.9 Petitioner has established its standing to bring a Section 2(d) claim that is plausible. See Lipton Indus. Inc. v. Ralston Purina Co., 670 F.2d 1024, 213 USPQ 9 Petition to Cancel, Exhibits 1 and 2 (printouts of Registration Nos. 1803376 and 3315183 from USPTO Trademark Electronic Search System (TESS) and Assignments databases showing current owner, status and title); 1 TTABVUE 8-17. Cancellation No. 92067036 - 5 - 185, 189 (CCPA 1982). Respondent does not challenge Petitioner’s standing to bring this proceeding.10 III. Section 2(d) Claim Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d), prohibits the registration of a mark that [c]onsists of or comprises a mark which so resembles a mark registered in the Patent and Trademark Office, or a mark or trade name previously used in the United States by another and not abandoned, as to be likely, when used on or in connection with the goods of the Respondent, to cause confusion, or to cause mistake, or to deceive. We will concentrate on the mark BANDOLERO in typed form, shown in Registration No. 1803376 on the Principal Register for “wines and spirits; namely, tequila” in International Class 33. If a likelihood of confusion is found as to this registration, it is unnecessary to consider Petitioner’s registration for a stylized version of this mark. Conversely, if likelihood of confusion is not found as to the mark in this registration, we would not find it as to the marks in the other pleaded registrations. See, e.g., In re Max Capital Grp. Ltd., 93 USPQ2d 1243, 1245 (TTAB 2010). A. Priority Typically, in a cancellation proceeding in which both parties own registrations, the petitioner must prove priority of use. See Brewski Beer Co. v. Brewski Bros., Inc., 47 USPQ2d 1281 (TTAB 1998). Here, Respondent in its trial brief does not dispute Petitioner’s priority; nonetheless, in order to prevail Petitioner must still establish 10 Respondent’s Brief, p. 2 n.1; 22 TTABVUE 7. Cancellation No. 92067036 - 6 - priority.11 Because Petitioner’s Registration No. 1803376 is of record, Petitioner may rely on the registration as proof that the mark was in use as of the filing date of the underlying application. See Trademark Act § 7(c); see also J.C. Hall Co. v. Hallmark Cards, Inc., 340 F.2d 960, 144 USPQ 435, 437 (CCPA 1965). Petitioner’s registration issued on November 9, 1993 from an application filed February 5, 1993. This is long prior to the August 13, 2015 filing date of Respondent’s underlying application, which is the earliest date on which Respondent is entitled to rely given the absence of any evidence of earlier use. Accordingly, Petitioner has established priority. B. Likelihood of Confusion Having established priority, the remaining issue in this case is likelihood of confusion. Our analysis is based on all of the probative evidence of record. In re E. I. DuPont de Nemours & Co., 476 F.2d 1357, 177 USPQ 563, 567 (CCPA 1973) (“DuPont”). See also, In re Majestic Distilling Co., 315 F.3d 1311, 65 USPQ2d 1201, 1203 (Fed. Cir. 2003). In making our determination, the Board has considered each DuPont factor for which there is evidence and argument. See In re Guild Mortg. Co., 912 F.3d 1376, 129 USPQ2d 1160, 1162-63 (Fed. Cir. 2019). Varying weights may be assigned to each DuPont factor depending on the evidence presented. See Citigroup Inc. v. Capital City Bank Grp. Inc., 637 F.3d 1344, 98 USPQ2d 1253, 1261 (Fed. Cir. 2011); In re Shell Oil Co., 992 F.2d 1204, 26 USPQ2d 1687, 1688 (Fed. Cir. 1993) 11 Respondent’s Brief, p. 2 n.1; 22 TTABVUE 7. Cancellation No. 92067036 - 7 - (“[T]he various evidentiary factors may play more or less weighty roles in any particular determination”). In any likelihood of confusion analysis, two key considerations are the similarities between the marks and the similarities between the goods. See In re Chatam Int’l Inc., 380 F.3d 1340, 71 USPQ2d 1944, 1945-46 (Fed. Cir. 2004); 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.”). These factors, and the other DuPont factors argued by each party, are discussed below. 1. The Goods First we consider the goods as identified in Petitioner’s and Respondent’s registrations.12 See In re Detroit Athletic Co., 903 F.3d 1297, 128 USPQ2d 1047, 1052 (Fed. Cir. 2018); Stone Lion Capital Partners, LP v. Lion Capital LLP, 746 F.3d 1317, 110 USPQ2d 1157, 1161 (Fed. Cir. 2014); Octocom Sys., Inc. v. Hous. Computs. Servs. Inc., 918 F.2d 937, 16 USPQ2d 1783, 1787 (Fed. Cir. 1990) and Hewlett-Packard Co. v. Packard Press Inc., 281 F.3d 1261, 62 USPQ2d 1001 (Fed. Cir. 2002). The identified goods in Respondent’s registration are “distilled spirits.” As unrestricted, the identification encompasses all types of “distilled spirits” including “tequila” as identified in Petitioner’s Registration No. 1803376. See, e.g., In re Hughes Furniture Indus., Inc., 114 USPQ2d 1134, 1137 (TTAB 2015) (“Applicant’s broadly worded identification of ‘furniture’ necessarily encompasses Registrant’s narrowly identified 12 We observe that Respondent does not address this DuPont factor in its brief. Cancellation No. 92067036 - 8 - ‘residential and commercial furniture.’”). Thus, on their face, the parties’ goods are in-part legally identical;13 therefore, this DuPont factor weighs heavily in favor of finding a likelihood of confusion. 2. The Established, Likely-to-Continue Channels of Trade and Classes of Consumers Next we consider the established, likely-to-continue channels of trade and classes of consumers. According to the record, Petitioner sells its “bottom-shelf” BANDOLERO tequila in Safeway-branded grocery stores and other grocery stores owned by Safeway’s parent corporation, Albertson’s Companies, such as Tom Thumb, Randalls and Jewel-Osco in 19 states.14 By contrast, Respondent offers a “premium” tequila under the mark BANDERO15 for sale in liquor stores, restaurants, and via wholesale alcohol distributors.16 Respondent points to this as evidence of non- overlapping trade channels because the parties’ tequila will not be sold in the same grocery stores since Petitioner’s brand is sold primarily, if not exclusively, in its own affiliates. This is not a federal trademark infringement action but rather an administrative proceeding to determine whether Respondent is entitled to maintain its federal 13 “[I]t is sufficient for finding a likelihood of confusion if relatedness is established for any item encompassed by the identification of goods within a particular class in the application.” In re Aquamar, Inc., 115 USPQ2d 1122, 1126 n.5 (TTAB 2015) (citing Tuxedo Monopoly, Inc. v. Gen. Mills Fun Grp., 648 F.2d 1335, 209 USPQ 986, 988 (CCPA 1981). See also In re i.am.symbolic,llc, 116 USPQ2d 1406, 1409 (TTAB 2015), aff’d, 866 F.3d 1315, 123 USPQ2d 1744 (Fed. Cir. 2017)). 14 Rinella Decl. ¶¶ 14 and 16; 12 TTABVUE 4. 15 Id. at 14. 16 Petitioner’s Notice of Reliance, Exhibit J (confidential) at 13 TTABVUE. Cancellation No. 92067036 - 9 - registration. In accordance therewith, because the goods are in-part legally identical and as identified in the registrations are unrestricted as to trade channels, we must presume that these particular goods travel in the same ordinary trade and distribution channels and will be marketed to the same potential consumers, notwithstanding the record evidence. See In re Viterra Inc., 101 USPQ2d at 1908 (even though there was no evidence regarding channels of trade and classes of consumers, the Board was entitled to rely on this legal presumption in determining likelihood of confusion); In re Yawata Iron & Steel Co., 403 F.2d 752, 159 USPQ 721, 723 (CCPA 1968) (where there are legally identical goods, the channels of trade and classes of purchasers are considered to be the same); Am. Lebanese Syrian Associated Charities Inc. v. Child Health Research Inst., 101 USPQ2d 1022, 1028 (TTAB 2011). This includes any type ordinary trade channel for tequila including, where permitted under state law, grocery stores, regardless of affiliation with Petitioner. While we acknowledge Petitioner’s evidence that its sales predominantly occur in Safeway affiliated grocery stores in 19 states, this cannot be a factor in our determination. Petitioner does not own a concurrent use registration, that is, a geographically restricted registration. Rather, Petitioner owns a territorially unrestricted registration, meaning that it presumptively has the exclusive right to market and sell its brand of tequila not only within those states and grocery stores it currently markets its tequila, but throughout the entire United States and its territories. Hence, this DuPont factor also weighs in favor of finding a likelihood of confusion. Cancellation No. 92067036 - 10 - 3. Purchasers and Conditions of Sale This DuPont factor examines the conditions under which, and to whom, sales are made. Purchaser sophistication may tend to minimize likelihood of confusion. Conversely, impulse purchases of inexpensive items may tend to have the opposite effect. Respondent argues that its tequila is a premium top-shelf product sought out by tequila aficionados whereas Petitioner’s bargain priced tequila lacks the same cache. Petitioner’s BANDOLERO branded tequila is priced to appeal to the price-driven consumer, retailing at $7.00 - $8.00 for a 750-milliliter bottle,17 whereas the same sized bottle offered under Respondent’s BANDERO mark retails for around $40.00, which is approximately the same price as other premium tequilas.18 Again, we are not persuaded by Respondent’s arguments. As identified, the parties’ respective goods are not limited in any way as to purchasers, conditions of sale or price. It therefore must be assumed that both parties’ goods are available to all consumers of legal age to purchase tequila, including ordinary consumers who may buy inexpensive tequila on impulse. See Packard Press, Inc. v. Hewlett-Packard Co., 227 F.3d 1352, 56 USPQ2d 1351, 1357 (Fed. Cir. 2000) (must focus on identifications, regardless of any actual marketplace evidence of “the particular channels of trade, or the class of purchasers to which sales of the goods or services are directed”); In re Bay State Brewing Co., Inc., 117 USPQ2d 1958, 1960 (TTAB 17 Petitioner’s Notice of Reliance Exhibits L and M 14 TTABVUE 47-48, 53. 18 Respondent’s Notice of Reliance, Exhibits 15 and 32, 17 TTABVUE 418-19. Cancellation No. 92067036 - 11 - 2016); see also Stone Lion, 110 USPQ2d at 1163-64 (recognizing Board precedent requiring consideration of the “least sophisticated consumer in the class”). “When products are relatively low-priced and subject to impulse buying, the risk of likelihood of confusion is increased because purchasers of such products are held to a lesser standard of purchasing care.” Recot Inc. v. M.C. Becton, 214 F.3d 1322, 54 USPQ2d 1894, 1899 (Fed. Cir. 2000) (citations omitted). Furthermore, there is nothing in the record to suggest that consumers seeking tequila are more discriminating than the average consumer. The conditions of sale and nature of the prospective consumers therefore favor finding a likelihood of confusion. 4. The Marks Keeping in mind that the in-part legal identity of the parties’ goods reduces the degree of similarity between the marks necessary to find a likelihood of confusion, In re Viterra, 101 USPQ2d at 1908, we now compare Petitioner’s typed mark BANDOLERO with Respondent’s standard character mark BANDERO. This DuPont factor involves an analysis of the similarity or dissimilarity of the marks in their entireties as to appearance, sound, connotation and commercial impression. Palm Bay Imps., Inc. v. Veuve Clicquot Ponsardin Maison Fondee En 1772, 396 F.3d 1369, 73 USPQ2d 1689, 1692 (Fed. Cir. 2005) (citing DuPont, 177 USPQ at 567). “Similarity in any one of these elements may be sufficient to find the marks confusingly similar.” In re Inn at St. John’s, LLC, 126 USPQ2d 1742, 1746 (TTAB 2018), aff’d mem., 777 F. App’x (Fed. Cir. 2019) (citing In re Davia, 110 USPQ2d 1810, 1812 (TTAB 2014)). Accord Krim-Ko Corp. v. Coca-Cola Bottling Co., 390 F.2d 728, 156 USPQ 523, 526 Cancellation No. 92067036 - 12 - (CCPA 1968) (“It is sufficient if the similarity in either form, spelling or sound alone is likely to cause confusion.”). The proper test regarding similarity “is not a side-by-side comparison of the marks, but instead whether the marks are sufficiently similar in terms of their commercial impression such that persons who encounter the marks would be likely to assume a connection between the parties.” Cai v. Diamond Hong, Inc., 901 F.3d 1367, 127 USPQ2d 1797, 1801 (Fed. Cir. 2018) (quoting Coach Servs. Inc. v. Triumph Learning LLC, 668 F.3d 1356, 101 USPQ2d 1713, 1721 (Fed. Cir. 2012) (internal quotation marks and citation omitted)). Further, the marks “must be considered … in light of the fallibility of memory ….” In re St. Helena Hosp., 774 F.3d 747, 113 USPQ2d 1082, 1085 (Fed. Cir. 2014) (quotation omitted). The focus is on the recollection of the average purchaser, who normally retains a general rather than a specific impression of trademarks. In re Bay State Brewing Co., 117 USPQ2d at 1960 (citing Spoons Rests. Inc. v. Morrison Inc., 23 USPQ2d 1735, 1741 (TTAB 1991)), aff’d per curiam, 972 F.2d 1353 (Fed. Cir. 1992); see also In re Binion, 93 USPQ2d 1531, 1534 (TTAB 2009). Respondent argues that to both English and Spanish speakers, the marks differ in sound, appearance, connotation and commercial impression. As shown on the registration certificate and reflected in the evidentiary record, Petitioner’s mark is the Spanish word “bandolero” which translates to “bandit.”19 Respondent argues that its mark BANDERO is not a recognized word in the Spanish language, and at most 19 Respondent’s Notice of Reliance, Exhibit 27; 17 TTABVUE 385-88. Cancellation No. 92067036 - 13 - is similar to the word “bandera,” which is Spanish for “flag.”20 As evidence of its intent to draw on this meaning, Respondent points to its packaging design which features the Mexican flag on the front of the bottle.21 It also points to a cocktail known as a “Bandera” that features the colors of the Mexican flag.22 For these reasons, Respondent contends that Spanish-speaking consumers, who represent an appreciable segment of the U.S. public, will readily differentiate the marks given their different meanings; such consumers would perceive BANDOLERO as “bandit” but view BANDERO as a variant of the Spanish word “bandera” for “flag” or alternatively as a coined term. In addition, Respondent contends that those consumers who only speak English will be able to differentiate BANDERO and BANDELERO based on their different spelling and pronunciation. Respondent observes that BANDELERO would likely be pronounced with four syllables whereas BANDERO will be pronounced with three, and that “[w]hile the sounds made at the beginning of the words are similar (a rock “band” versus a gun “ban”), and the vowel sound at the end is the same, the number and sound of the syllables in the middle, “-O-” (as in “oh”) then “-LER-” (as in “lair”) versus “DER” (as in “dare”), are very different.”23 20 Id. 21 Id. at Exhibit 15; 17 TTABUVE 61, 65 (depicting BANDERO bottle being sold in the marketplace). 22 Id. at Exhibit 24; 17 TTABVUE 265-75. 23 Respondent’s Brief, p. 10; 21 TTABVUE 15. Cancellation No. 92067036 - 14 - We agree that U.S. consumers who comprehend Spanish will understand Petitioner’s mark BANDOLERO as “bandit.” By contrast, Respondent’s mark BANDERO is a coined term or at most a misspelling of the Spanish word for “flag.” Thus, to Spanish speakers, the marks may indeed project different meanings. Nonetheless, they are highly similar in sound and appearance. Each mark commences with the letter string “B-A-N-D” and ends with “E-R-O.” The sole distinction is the additional letter string “O-L-E” between these two elements in Petitioner’s mark. While the marks are pronounced differently, the distinction, because it occurs in the middle of the mark, is slight. Consumers do not focus on minutia but rather overall impressions. See In re John Scarne Games, Inc., 120 USPQ 315, 315-16 (TTAB 1959) (“Purchasers of game boards do not engage in trademark syllable counting — they are governed by general impressions made by appearance or sound, or both.”). Thus, we find that Respondent’s and Petitioner’s marks, considered as a whole, while different in meaning and connotation to consumers who comprehend the Spanish language, are highly similar in appearance and sound. And as noted above, similarity in any one of these elements may suffice to find the marks confusingly similar. In re Inn at St. John’s, 126 USPQ2d at 1746. Our finding is further informed by the fact that the goods are in-part legally identical. As such, we find that the first DuPont factor weighs in favor of finding a likelihood of confusion. 5. Commercial Strength or Fame Commercial strength or fame is the extent to which the relevant public recognizes Cancellation No. 92067036 - 15 - a mark as denoting a single source. 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 Prods. Inc., 293 F.3d 1367, 63 USPQ2d 1303, 1305 (Fed. Cir. 2002); Recot Inc. v. M.C. Becton, 214 F.3d 1322, 54 USPQ2d 1894, 1897 (Fed. Cir. 2000); Kenner Parker Toys, Inc. v. Rose Art Indus., Inc., 963 F.2d 350, 22 USPQ2d 1453, 1456 (Fed. Cir. 1992). 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. Coach Servs., 101 USPQ2d at 1720 (citing Leading Jewelers Guild Inc. v. LJOW Holdings LLC, 82 USPQ2d 1901, 1904 (TTAB 2007)). A mark’s commercial strength or fame is not a binary factor in the context of a likelihood of confusion analysis. Joseph Phelps Vineyards, LLC v. Fairmont Holdings, LLC, 857 F.3d 1323, 122 USPQ2d 1733, 1734 (Fed. Cir. 2017) (“The TTAB applied a legally incorrect standard in applying an all-or-nothing measure of ‘fame,’ more akin to dilution analysis.”). Rather, likelihood of confusion fame “varies along a spectrum from very strong to very weak.” Palm Bay, 73 USPQ2d at 1694 (quoting In re Coors Brewing Co., 343 F.3d 1340, 68 USPQ2d 1059 (Fed. Cir. 2003)). Famous marks “enjoy wide latitude of legal protection” and are “more attractive as targets for would-be copyists.” Id. Fame for likelihood of confusion purposes arises as long as a “significant Cancellation No. 92067036 - 16 - portion of the relevant consuming public ... recognizes the mark as a source indicator.” Id. Commercial strength or fame may be measured indirectly by the volume of sales and advertising expenditures in connection with the goods or services sold under the mark, and other factors such as length of time of use of the mark; widespread critical assessments; notice by independent sources of the goods or services identified by the marks; and the general reputation of the goods or services. Weider Publ’ns, LLC v. D & D Beauty Care Co., 109 USPQ2d 1347, 1354 (TTAB 2014), appeal dismissed per stipulation, No. 2014-1461 (Fed. Cir. Oct. 10, 2014); see also Bose, 63 USPQ2d at 1308 (recognizing indirect evidence as appropriate proof of strength). In addition, 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, 63 USPQ2d at 1309. “[T]he proper legal standard for evaluating the fame of a mark under the fifth DuPont factor is the class of customers and potential customers of a product or service, and not the general public.” Joseph Phelps Vineyards, 122 USPQ2d at 1734. Petitioner asserts that its BANDOLERO mark has achieved “significant commercial strength” due to over 30 years of use and units sold in the past 10 years.24 Petitioner testified as to revenues generated under the BANDOLERO mark for tequila for the years 2009-2017, and partially for 2018.25 Petitioner also points to 24 Rinella Decl., ¶ 12. 25 Id. (confidential) Cancellation No. 92067036 - 17 - sales in at least sixteen different chains of stores across nineteen states,26 and promotion in an Albertsons grocery store circular.27 We find that Petitioner’s sales figures, revenues and promotional efforts fall on the low end of the commercial strength or fame spectrum. Compare Palm Bay, 73 USPQ2d at 1689 (VEUVE CLICQUOT found famous amongst purchasers of champagne and sparkling wine based upon sale in 8000 restaurants nationwide, liquor stores, wine shops and other retail establishments; extensive promotional campaign consisting of print advertisements in general interest magazines and in wine specialty magazines, radio ads, point-of-sale displays, wine tastings; unsolicited recognition in New York Times, Boston Globe, Money Magazine). For example, Petitioner did not submit representative samples of print advertisements circulated over a substantial period of time on a national scale, nor did Petitioner submit evidence of promotional activities in other media such as television or event promotion. The record is devoid of unsolicited media recognition or industry accolades. It is also problematic that Petitioner has failed to submit any evidence of annual advertising expenditures under the mark in the U.S. market. As to revenues, Petitioner failed to put these numbers in perspective in order to give us a sense of its U.S. market share. Thus, while Petitioner’s BANDOLERO branded tequila may enjoy some degree of recognition, its commercial strength or fame is relatively modest. This DuPont factor therefore is neutral. 26 Id. at ¶ 14, 16, and Attachment C. 27 Respondent’s Notice of Reliance, Exhibit 19; 17 TTABVUE 238-242. Cancellation No. 92067036 - 18 - 6. The Number and Nature of Similar Marks in Use on Similar Goods Next we direct our attention to the number and nature of similar marks in use on similar goods. In a cancellation proceeding, “[t]he purpose of [a respondent] introducing third-party uses is to show that customers have become so conditioned by a plethora of such similar marks that customers have been educated to distinguish between different such marks on the bases of minute distinctions.” Palm Bay, 73 USPQ2d at 1694; see also Jack Wolfskin Ausrustung Fur Draussen GmbH & Co. KGAA v. New Millennium Sports, S.L.U., 797 F.3d 1363, 116 USPQ2d 1129, 1136 (Fed. Cir. 2015); Juice Generation, Inc. v. GS Enters. LLC, 794 F.3d 1334, 115 USPQ2d 1671, 1675-76 (Fed. Cir. 2015). Before discussing the evidence pertaining to this DuPont factor, we address an issue raised by Respondent. Respondent urges the Board not to confine its analysis of third-party uses and marks to tequila or spirits but to consider all types of alcoholic beverages, including beer and wine. In support of its position, Respondent cites to case law (e.g., In re Chatam Int’l Inc., 380 F.3d 1340, 1344, 71 USPQ2d 1944 (Fed. Cir. 2004) (affirming finding that tequila and beer are related goods)), and evidence in the record that distilled spirits and beers and distilled spirits and wines often come from the same source and are sold in the same trade channels.28 In addition, 28 Respondent’s Notice of Reliance Exhibit 19 (advertising circular offering for sale in Safeway and its affiliated stores tequila and other distilled spirits together with wine and beer); Exhibit 25 (articles about third-party entities operating as distilleries and breweries; printout from Five & 20 Spirits and Brewing website offering for sale beer, wine and spirits; printout from The Grand Canyon Brewing + Distillery offering for sale beer and vodka under the Grand Canyon housemark; printout from Tattered Flag brewery and distillery offering for sale beer, tequila, vodka and gin), and Exhibit 26 (showing the same third-party entities operating as distilleries and wineries; printout from Charbery distillery and winery website Cancellation No. 92067036 - 19 - Respondent asks the Board to consider third-party uses and marks of the English equivalent of Petitioner’s mark which, as noted above, is “bandit” under the doctrine of foreign equivalents. Within the context of evaluating the second DuPont factor, there is no per se rule that tequila is related to either beer or wine. In re White Rock Distilleries Inc., 92 USPQ2d 1282, 1285 (TTAB 2009) (“There is no per se rule that holds that all alcoholic beverages are related.”) (citing G. H. Mumm & Cie v. Desnoes & Geddes Ltd., 917 F.2d 1292, 16 USPQ2d 1635 (Fed. Cir. 1990) and Nat’l Distillers and Chem. Corp. v. William Grant & Sons, Inc., 505 F.2d 719, 184 USPQ 34 (CCPA 1974)). See also, TRADEMARK MANUAL OF EXAMINING PROCEDURE (“TMEP”) § 1207.01(a)(iv) (Oct. 2018) (“… there can be no rule that certain goods or services are per se related, such that there must be a likelihood of confusion from the use of similar marks in relation thereto”). “[E]ach case must be decided on its own facts,” DuPont, 177 USPQ at 567, meaning that we must look to the particular record before us in making our assessment. Nonetheless, here under the sixth DuPont factor we consider evidence of third-party uses and marks for distilled spirits, wine and beer relevant because on this record, Respondent has shown a commercial relationship between distilled spirits such as tequila in relation to wine or beer.29 See Century 21 Real Estate Corp. offering for sale tequila and wine; printout from Elgin Winery and Distillery offering for sale wine and spirits; printouts from Ranson Wine Co. & Distillery offering for sale wine and spirits under the Ranson housemark; printout from Six Mile Creek Winery & Distillery offering for sale wine and spirits; printouts from Sweetgrass Winery and Distillery offering for sale wine and spirits). 17 TTABVUE 237-242, 276-384. 29 By contrast, in Omaha Steaks Int’l, Inc. v. Greater Omaha Packing Co., 908 F.3d 1315, 128 USPQ2d 1686, 1693 (Fed. Cir. 2018) the U.S. Court of Appeals for the Federal Circuit found the Board’s analysis under the sixth DuPont factor “legally flawed” when it considered third- Cancellation No. 92067036 - 20 - v. Century Life of Am., 970 F.2d 874, 877 (Fed. Cir. 1992) (“the “relevant DuPont inquiry is ‘[t]he number and nature of similar marks in use on similar goods”) (quoting Weiss Assocs., Inc. v. HRL Assocs., Inc., 902 F.2d 1546, 1548 (Fed. Cir. 1990)). That is to say, the record shows that wine and beer fall within the realm of “similar goods” as compared to “tequila” for purposes of considering evidence of third-party use. As to whether the doctrine of foreign equivalents applies under this factor, we need not decide this issue. In this particular case, due to the marks’ similarities in sound and appearance, third-party evidence of “bandit” marks potentially may have a bearing on whether consumers might distinguish between BANDOLERO and BANDERO based on small differences since these marks all share the same initial letter string of “B-A-N-D.” With this in mind, we turn to the evidence before us. Respondent argues that Petitioner’s mark BANDOLERO is entitled to a narrow scope of protection because the consuming public is exposed to third-party use of marks on similar goods. In support thereof, Respondent has submitted numerous excerpts from a social media platform called “Untappd” (https://untappd.com), a website and app where users can post information on various beers they have sampled and post reviews. Some examples in the record include: party uses and marks comprised of the designation OMAHA not only for meat and meat products but also for “a diverse range of third-party products, such as ‘popcorn,’ ‘wine,’ ‘oriental foods,’ and ‘alcoholic beverages.’” The Court, in remanding the case back to the Board, reasoned that the goods were “clearly dissimilar” insofar as “these goods bear no relationship to meat or meat-based products” and therefore “are not ‘similar’ to meat products.” Id. at 1693-94. Cancellation No. 92067036 - 21 - PW is drinking BANDELERO at Peckish Pig Brewpub at Peckish Pig. Taylor M. is drinking BANDOLERO by Innovation Brewing. Tony is drinking a BANDOLERO by Snipes Mountain Brewing at Snipes Mountain Brewery. Lee R. is drinking a BARREL-AGED BANDOLERO by Snipes. Dan M. is drinking a BARREL-AGED BANDOLERO by Iron Fist Brewing Co. Viktor G. is drinking AMERICAN BANDIT by Breakwater Brewing Co. Rob W. is drinking BANDIDOS YANQUIS by Breakwater Brewing Co. Dane D. is drinking AND THE BANDIT by Union Brewing Co. Anthony W. is drinking ANTONITO BANDITO by Chili Line Brewing Co. Stephen C. is drinking BANDIT by Columbus Brewing Co. Joey is drinking BANDIT by Chili Line Brewing Co. Justin K. is drinking BANDIT by Kozy Yak Brewing Co. Anthony W. is drinking ANTONITO BANDITO by Chili Line Brewing Co. Molly K. is drinking a BANDIT by Railport Brewing Co. Steph F. is drinking a BANDIT by White Rooster Farmhouse Brewing. James B. is drinking a BANDIT BOURBON STOUT at Lake Gaston Brewing Company. Carrie W. is drinking a BANDIT BRETT IPA at Woodland Empire Ale Craft at Bittercreek Alehouse. Cancellation No. 92067036 - 22 - Joe W. is drinking a BANDIT BREW by Bent River Brewing Company at Sippi’s American. Dennis S. is drinking a BANDIT BROWN by City Star Brewing Company at The Fritzler’s Corn Maize. Beer and G. is drinking a BANDIT BROWN by Horse Heaven Hills Brewery. David B. is drinking a BANDITO BROWN ALE by Scottsdale Beer. David B. is drinking a BANDITO IPA by Payette Brewing Company at Heritage Park. Ray P. is drinking a BANDITO LIME-ITO by Dirtbags Ales at Dirtbags Ales Brewery & Taproom.30 Unlike evidence from business-to-consumer (B2C) websites, however, this evidence merely demonstrates that various individuals have made statements that they tasted various beers purchased under these trademarks. We are unable to ascertain whether any of these beers are widely distributed in retail outlets such as liquor or grocery stores or sold only on tap at the premises of a restaurant or a microbrewery. Thus the probative value of this evidence is limited since it is difficult to assess the scope of U.S. consumer exposure. The majority of Respondent’s remaining evidence of third-party uses and registrations pertains to wine and beer, not distilled spirits. The evidence of third- party use can be summarized as follows: An excerpt from winewatch.com offering BANDOLERO branded wine from Revolver Wine Co.31 30 Respondent’s Notice of Reliance, Exhibits 10, 11, 16-A, 16-B; 17 TTABVUE 36-42; 75-217. 31 Id. at 12; 17 TTABVUE 43. Cancellation No. 92067036 - 23 - An excerpt from Bandit Wines B2C website (www.banditwines.com) advertising a variety of BANDIT branded wines such as pinot grigio, merlot, and red blend.32 An excerpt from Norman’s Liquors & Fine Wines website (www.normansliquors.com) offering for sale TIME BANDIT VODKA.33 An excerpt from Wordworth Wine website (www.wordworthwine.com) offering for sale RESERVE WILD BANDIT branded wine.34 Excerpt from Old Town Tequila – The Tequila, Mezcal & More Superstore (www.oldtowntequila.com) offering for sale tequila under the following relevant trademarks: BANDOLON, BANDERO, and ZEE BANDIDO DE AMORES.35 A printout from Bandit Brewing’s Facebook page.36 Printouts from the Two Bandits Brewing Co. website advertising restaurant and “house brews” at its location in Hicksville, Ohio.37 Printouts from the Ramirez Liquor website offering for sale tequila under the trademarks BANDOLON, BRACERO, and BANDOLERO.38 Printouts from the Ryann’s Wines website located in East Meadow, New York offering for sale prosecco under the trademark BANDOLINO.39 32 Id. at Exhibit 13; 17 TTABVUE 46-56. 33 Id. at Exhibit 14; 17 TTABUVE 57. 34 Id. at Exhibit 14; 17 TTABUVE 57-58. 35 Id. at Exhibit 15; 17 TTABUVE 59-74 36 Id. at Exhibit 17; 17 TTABVUE 220-222. 37 Id. at Exhibit 17; 17 TTABVUE 223-229. 38 Id. at Exhibit 18; 17 TTABVUE 230-236. 39 Id. at Exhibit 21; 17 TTABVUE 254. Cancellation No. 92067036 - 24 - Printouts from the Artisanal Beverages website offering for sale of tequila under the trademark BANDISTAS.40 Printouts from the Cork Tree Fine Wines, Sky View Wines, and Soeiku Wine websites offering for sale prosecco under the trademark BANERO.41 Printout from Jewel-Osco Facebook page for TRES BANDIDOS sangria.42 Printouts from the Los Beltran website offering for sale of tequila under the trademark BANDOLON.43 Respondent also made of record the following third-party registrations for tequila, distilled spirits, wine or beer, some of which, such as those associated with Rebel Wine Co., have corresponding evidence of use: Registration No. 3945274 for the mark BANDIERA for “wine,” with the statement that “The English translation of ‘BANDIERA’ in the mark is ‘flag.’” Registration Nos. 3974340 and 3311926, owned by Rebel Wine Co., each for the mark BANDIT for “Alcoholic beverages except beers,” and “wine.” Rebel Wine Co. also owns Registration No. 5037223 for the mark TRES BANDIDOS for “Alcoholic beverages except beers” and Registration No. 3276857 for the mark WINE BANDITS for “Alcoholic beverages except beers.” Registration No. 5396710 for the mark BANDOLINO for “Wines and sparkling wines.” Registration No. 4282301 for the mark BANERO for “Grape wine; Red wine; Sparkling grape wine; Sparkling wines; White wine; Wine; [ Wines and fortified wines; ] Wines and sparkling wines.” 40 Id. at Exhibit 22; 17 TTABVUE 255-260. 41 Id. at Exhibit 23; 17 TTABVUE 262-264. 42 Id. at Exhibit 28; 17 TTABVUE 390. 43 Id. at Exhibit 31; 17 TTABVUE 411-415. Cancellation No. 92067036 - 25 - Registration No. 4682901 for the stylized mark BOLERO and design for “wine.” Registration No. 5149090 for the mark BANDISTAS for “spirits,” with the statement that “The English translation of ‘BANDISTAS’ in the mark is ‘band man.’”44 Active third-party registrations may be relevant to show that a mark or a portion of a mark is descriptive, suggestive, or so commonly used that the public will look to other elements to distinguish the source of the goods. See, e.g., Jack Wolfskin, supra; Juice Generation, 115 USPQ2d at 1674-75; In re Hartz Hotel Servs., Inc., 102 USPQ2d 1150, 1153-54 (TTAB 2012); In re Melville Corp., 18 USPQ2d 1386, 1388 (TTAB 1991); In re Dayco Products-Eaglemotive Inc., 9 USPQ2d 1910, 1911-12 (TTAB 1988); Plus Prods. v. Star-Kist Foods, Inc., 220 USPQ 541, 544 (TTAB 1983). While the record does not allow us to draw any conclusions as to the descriptive or suggestive meanings of such registered marks, it does show that it is not uncommon for such marks to commence with the letter string “B-A-N-D,” especially for wine. Taken together, we find that the evidence of third-party use and marks in connection with spirits, wine and beer commencing with the letter string “B-A-N-D” show that Petitioner’s mark has some degree of weakness. For this reason, a likelihood of confusion is limited to those marks “as to which the resemblance to [Petitioner’s mark] is striking enough to cause one seeing it to assume that there is some connection, association or sponsorship between the two.” Anthony’s Pizza & Pasta Int’l Inc. v. Anthony’s Pizza Holding Co., 95 USPQ2d 1271, 1278 (TTAB 2009), 44 Id. at Exhibits 1-9; 17 TTABVUE 9-34. Cancellation No. 92067036 - 26 - aff’d, 415 Fed. Appx. (Fed. Cir. 2010). This sixth DuPont factor therefore weighs somewhat against finding a likelihood of confusion. 7. Extent of Potential Confusion Last, we consider the extent of potential confusion, i.e., whether de minimis or substantial. Since the goods are in-part legally identical and marketed in the same trade channels to the same purchasers, the potential for confusion therefore cannot be deemed de minimis. Accordingly, this DuPont factor favors a finding of likelihood of confusion. 8. Balancing the Factors As explained above, the sixth DuPont factor weighs somewhat against a likelihood of confusion. While there are instances where a single DuPont factor is dispositive (see, e.g., Kellogg Co. v. Pack’em Enters. Inc., 951 F.2d 330, 21 USPQ2d 1142 (Fed. Cir. 1991)), we find that the sixth DuPont factor does not play such a role here, given the “striking” similarity in the marks in sound and appearance when compared as a whole, in particular as applied to in-part legally identical goods. See, e.g., Anthony’s Pizza, 95 USPQ2d at 1283 (“The evidence of third-party registration and use of ANTHONY’S, although one factor (and a significant one under the facts in this case) to be considered, does not persuade us of a different result, because we believe that this factor is outweighed by the other factors.”). Despite differences in connotation and commercial impression, overall, the marks are similar in sound and appearance. The in-part legal identity of Respondent’s and Petitioner’s goods and their overlapping channels of trade and classes of purchasers not only weigh heavily in favor of a finding of likelihood of confusion, but also reduce the degree of similarity Cancellation No. 92067036 - 27 - between the marks necessary to find a likelihood of confusion. Because Petitioner’s and Respondent’s registrations are unrestricted, we must assume that they encompass all levels of quality of tequila sold at all price points. This means that we must take into account that a consumer may not exercise a high degree of care when making a purchasing decision. In addition, we do not find the commercial strength of Petitioner’s mark, while on the low end of the scale, significantly diminished by third- party use or registrations. Weighing these factors, we find confusion likely. In reaching this conclusion, we have carefully considered all of the evidence pertaining to the relevant DuPont factors, as well as all of the parties’ arguments with respect thereto. Accordingly, we find that Petitioner has proved its standing, priority, and likelihood of confusion by a preponderance of the evidence. Decision: Petitioner’s Section 2(d) claim is sustained and the Petition to Cancel is granted. Respondent’s registration will be canceled in due course. Copy with citationCopy as parenthetical citation