Teapresso Bar LLCv.Teaspressa, LLCDownload PDFTrademark Trial and Appeal BoardSep 11, 202094002890 (T.T.A.B. Sep. 11, 2020) Copy Citation This Opinion is Not a Precedent of the TTAB Mailed: September 11, 2020 UNITED STATES PATENT AND TRADEMARK OFFICE _____ Trademark Trial and Appeal Board _____ Teaspressa, LLC v. Teapresso Bar LLC _____ Concurrent Use No. 94002890 _____ Mary L. Shapiro, Evoke Law, PC, for Teaspressa LLC. Michael J. Sullivan, Law Office of Michael J. Sullivan, for Teapresso Bar LLC. _____ Before Zervas, Heasley, and Johnson, Administrative Trademark Judges. Opinion by Johnson, Administrative Trademark Judge: Teaspressa, LLC (“Applicant” or “Teaspressa”) seeks a concurrent use registration on the Principal Register of the standard character mark TEASPRESSA for “retail store services featuring brewed tea, unbrewed tea, and tea accessories; subscription based order fulfillment services in the field of tea,” in International Class 35, and “preparation of tea, coffee, and other coffee- and tea-based beverages; catering of Concurrent Use No. 94002890 - 2 - drinks; providing information in the nature of recipes for drinks and cooking,” in International Class 43.1 Registration is sought for the area comprising the entire United States except for the state of Hawaii. The application names Teapresso Bar LLC (“Teapresso Bar”) as an excepted user and owner of application Serial No. 87330672 for the mark TEAPRESSO BAR as an exception to Teaspressa LLC’s claim of exclusive use of the mark of application Serial No. 87678894. Teapresso Bar LLC’s mark, TEAPRESSO BAR,2 is for “coffee and tea bars” for the geographic area comprised of the state of Hawaii. On April 24, 2020, Applicant filed an affidavit of its CEO, Allison DeVane, in support of its concurrent use registration.3 A Settlement Agreement, a Stipulation of Dismissal of a cancellation proceeding,4 and a Consent Agreement were attached as 1 Application Serial No. 87678894, filed Nov. 9, 2017, with a date of first use on Jun. 22, 2015 and first use in commerce on Oct. 12, 2015 for the services claimed in International Class 35, and with a date of first use on Dec. 17, 2014 and first use in commerce on Feb. 11, 2015 for the services claimed in International Class 43. Page references to the application record are to the downloadable .pdf version of the USPTO’s Trademark Status & Document Retrieval (TSDR) system. References to the briefs, motions, and orders on appeal are to the Board’s TTABVUE docket system. 2 Application Serial No. 87330672, filed Feb. 9, 2017, with a claim of first use and first use in commerce of Oct. 1, 2014. 3 4 TTABVUE 2-3. 4 Application Serial No. 87330672 for TEAPRESSO BAR was initially refused registration based on a finding of a likelihood of confusion with Applicant’s registered mark, TEASPRESSA (Reg. No. 5084642). Shortly thereafter, Teapresso Bar filed a petition to cancel the TEASPRESSA registration, Cancellation No. 92067280. On January 10, 2018, the parties filed a Stipulation of Dismissal with prejudice of the cancellation proceeding and executed a Consent Agreement. Concurrent Use No. 94002890 - 3 - exhibits.5 On May 12, 2020, the Board suspended proceedings pending consideration of the parties’ Settlement Agreement.6 The Settlement Agreement between the parties provides for concurrent use of their respective marks within specified geographic territories, in accordance with the following relevant terms: 1. Teaspressa agrees not to challenge and consents to Teapresso Bar’s right to operate retail establishments using the mark TEAPRESSO BAR in the states of Hawaii and Texas. If Teapresso Bar has not begun operating and has not entered into contracts relating to the operation of a retail establishment within the state of Texas within three (3) years of the date of this Agreement, Teapresso Bar’s rights to operate in the State of Texas will be extinguished and Teaspressa shall assume the rights granted by Teaspressa to Teapresso Bar to operate in the state of Texas. (paragraph 7 of the Settlement Agreement); and 2. Teapresso Bar agrees not to open any stores using a mark similar to TEASPRESSA (including TEAPRESSO BAR) in any U.S. state or federal territory apart from the states of Hawaii and Texas. This includes standalone locations and store-within-a-store locations. (paragraph 8 of the Settlement Agreement). Under Section 2(d) of the Trademark Act, a concurrent use registration may issue only where it is determined “that confusion, mistake, or deception is not likely to 5 4 TTABVUE 5-20. The Stipulation of Dismissal and Consent Agreement only involved the registration for the mark TEASPRESSA and the application to register the mark TEAPRESSO BAR. 6 5 TTABVUE. Concurrent Use No. 94002890 - 4 - result from the continued use by more than one person of the same or similar marks under conditions and limitations as to the mode or place of use of the marks or the goods on or in connection with which such marks are used.” 15 U.S.C. § 1052(d); see Southwestern Mgmt., Inc. v. Ocinomled, Ltd., 115 USPQ2d 1007, 1020 (TTAB 2015). In reviewing the terms of the Settlement Agreement, we find that confusion, mistake, or deception is likely to result from the parties’ use of their respective marks under its terms. Below, we address the areas of concern in the agreement. Several paragraphs of the Settlement Agreement include the state of Texas as part of the geographic territory restriction,7 but Texas is not mentioned in Applicant’s territory restriction in the concurrent use application. For example, in paragraph 7 of the Settlement Agreement, Teapresso Bar’s right to use its mark is linked to “operating” and entering into contracts “relating to the operation of a retail establishment within the state of Texas within three (3) years of the date of this Agreement,” ending on or about January 9, 2021. However, the concurrent use application only lists the state of Hawaii as a geographic restriction for Applicant, and Ms. DeVane’s affidavit in support of the concurrent use registration does not mention anything about the state of Texas. Under the Trademark Act, every application claiming concurrent use shall be verified by the applicant and not only shall state exceptions to the claim of exclusive use made in the application, but also shall specify the goods and area for which the applicant desires registration. 15 U.S.C. §§ 1051(a)(3)(D)(i), (ii). In addition, the language of the contingency itself – 7 4 TTABVUE 8 ¶¶ 7, 8, 11; 4 TTABVUE 9 ¶¶ 12, 13. Concurrent Use No. 94002890 - 5 - “operating” and “relating to the operation of a retail establishment” – is too vague to support a concurrent use agreement designed to avoid the likelihood of consumer confusion. Also, the Settlement Agreement does not reflect that the parties have agreed that their uses of their marks in their respective territories would not be likely to cause confusion. Moreover, the agreement is silent as to what actions the parties will take in the event there are instances of actual confusion.8 Generally, agreements reflecting the parties’ views on likelihood of confusion in the marketplace “carry great weight” because the parties are in a much better position to gauge real life marketplace conditions. See Bongrain Int’l (Am.) Corp. v. Delice de France Inc., 811 F.2d 1479, 1 USPQ2d 1775, 1778 (Fed. Cir. 1987). However, upon careful consideration of the Settlement Agreement between the parties, here, the Board is not persuaded that the parties’ concurrent use of their respective marks as set forth in the Settlement Agreement is not likely to cause confusion under 15 U.S.C. § 1052(d). See Handy Spot Inc. v. J. D. Williams Co., 181 USPQ 351, 352 (TTAB 1974) (mere naked agreement wherein parties have not delineated measures taken to preclude likelihood of confusion is not persuasive). 8 We note that the Consent Agreement, 4 TTABVUE 17-20, contains sections discussing the absence of confusion between the marks, further efforts to avoid confusion, and cooperation in the event of actual confusion. However, as previously mentioned, the Consent Agreement pertains to the TEAPRESSO BAR application and the TEASPRESSA registration. Moreover, the Settlement Agreement states, “[i]f the Teapresso Bar Application becomes abandoned for any reason and it is not successfully revived by Teapresso Bar, then (a) the Consent Agreement … shall … become null and void without any further action by either Party.” 4 TTABVUE 7-8 ¶ 6. Teapresso Bar expressly abandoned Application Serial No. 87330672 on February 26, 2018, so the terms of the Consent Agreement are inapplicable here. Concurrent Use No. 94002890 - 6 - Therefore, this concurrent use proceeding cannot be terminated based on the parties’ Settlement Agreement. The parties are allowed until 60 days from the mailing date of this order to submit an amended concurrent use settlement agreement delineating the non-overlapping geographic areas of use by the parties, and including terms evidencing how likelihood of confusion is to be avoided as discussed above. This proceeding shall otherwise remain suspended pending the filing of an amended agreement or the expiration of the foregoing 60 day period. In the event that the 60 day period passes without an acceptable concurrent use settlement agreement being presented, proceedings shall be resumed. Copy with citationCopy as parenthetical citation