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`ESTTA Tracking number: ESTTA32424
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`Filing date3
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`05/08/2005
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`Proceeding
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`91160985
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`Defendant
`Rhoades, Dean L.
`Rhoades, Dean L.
`i 9107 Wilshire Boulevard, Suite 400
`Beverly Hills, CA 90210
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`Wesley T. Miller, Esq.
`DermaNeW, Inc.
`Correspondence 9107 Wilshire BlVd., Suite 400
`Address
`Beverly Hills, CA 90210
`
`Wes1eytmi11er@coX.net
`APPLICANTA’S REPLY TO OPPOSERA’S OPPOSITION TO
`MOTION TO SUSPEND PROCEEDING PENDING CIVIL
`ACTION
`Wesley T. Miller
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`Submission
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`Filer's Name
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`Filer‘s e—mail
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`Wes1eytmi11er@cOX.net
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`Signature
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`/Wesley T. Miller/’
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`Attachments
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`Reply to Opp to Motion to Suspend - Opp no 91160985.pdf( 7 pages
`% )
`l Miller Declaration re Reply to Opp to Motion to Suspend - Opp no
`91160985.pdf( 3 pages)
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`
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`Opposition No. 91160985
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`Avon Products, Inc.,
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`Opposer,
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`V.
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`Rhoades, Dean L.,
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`Applicant
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`\_/\_/\_/\_/\_/\_/\_/\_/\_/
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`APPLICANT’S REPLY TO OPPOSER’S OPPOSITION TO MOTION TO
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`SUSPEND PROCEEDING PENDING CIVIL ACTION
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`1. PRELIMINARY STATEMENT
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`Applicant Dean L. Rhoades (“Applicant”) submits this REPLY to OPPOSER
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`Avon Products, Inc.’s OPPOSITION TO MOTION TO SUSPEND PROCEEDING
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`PENDING CIVIL ACTION. The OPPOSITION TO MOTION TO SUSPEND filed by
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`Avon Products, Inc. (“Avon”) is an attempt by Avon to cause undue hardship and
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`expense to Applicant for no legitimate or meritorious purpose. The Board should grant
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`Applicant’s MOTION TO SUSPEND and deny Avon’s OPPOSITION to said MOTION:
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`1) as lacking merit based upon the circumstances presented; 2) as contrary to long-
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`standing Board policy and the authority granted the Board under Trademark Trial and
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`Appeal Board Manual of Procedure (“TBMP”) § 510.02 and 37 C.F.R. § 2.1 17(a); 3) to
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`promote judicial economy by allowing a consolidation of the issues presently before the
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`Board to be more fully and uniformly litigated in the United States District Court Civil
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`Action No. 05—02l69R (MANx); and, 4) to avoid inconsistent judgments in the civil
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`action in the District Court and in the multitude of TTAB proceedings.
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`This REPLY is supported by the Declaration of Wesley T. Miller ("Miller
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`Decl."), Counsel for Applicant, which is attached hereto and incorporated by reference.
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`II.
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`ARGUMENT
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`A.
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`APPLICANT’S MOTION TO SUSPEND WAS MADE IN GOOD
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`FAITH
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`Contrary to Avon's assertions, Applicant brought the pending MOTION TO
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`SUSPEND in good faith and in anticipation of fully and uniformly litigating all current
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`U.S. trademark disputes with Avon in a single forum in the United States District Court.
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`An actual case and controversy exists between the parties, and has existed, since at least
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`September of 2003, when Applicant was explicitly threatened with an action for
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`trademark infringement by Avon’s in—house counsel, John Bergin. Miller Decl., ‘][ 6.
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`Moreover, outside counsel for Avon, Michelle M. Graham, is misleading in her
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`assertions to the Board and to the U.S. District Court in her declaration that negotiations
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`were “active” on March 24, 2005. On that date, and after Applicant rejected oppressive
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`and overreaching settlement terms having nothing to do with the trademark dispute, in-
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`house counsel for Avon, John Bergin, declared the negotiations to be “at an impasse,”
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`and he went on to state that the attorneys for Avon wanted to confer privately to
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`“examine their options.” Miller Decl., ‘][ 4. Before the negotiations broke down, Mr.
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`Bergin had insisted on terms that Applicant believed to be oppressive and overreaching
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`and unrelated to the trademarks at issue in the dispute between Applicant and Avon. Id.
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`Mr. Bergin prefaced his insistence on the oppressive and overreaching terms by stating
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`that Avon would not give up its “right to damages” in settlement without obtaining those
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`terms. Id.
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`As the Board is well aware, its powers do not include the right to award damages
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`of any kind. Therefore, a claim for damages could only be made in litigation at the
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`District Court level, which is where the parties are now. Clearly in this context, Mr.
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`Bergin was reiterating Avon’s threat of litigation for trademark infringement, affirming
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`an actual case and controversy existed at the time Applicant filed his action in the U.S.
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`District Court. By its very inclusion of its MOTION TO DISMISS the pending District
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`Court action as Exhibit B to its OPPOSITION TO MOTION TO SUSPEND
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`PROCEEDING PENDING CIVIL ACTION that is before this Board, Avon concedes
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`that the District Court is the proper forum for adjudication of the full panoply of factual
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`and legal issues in its dispute with Applicant. Further, this proceeding before the TTAB
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`is not the proper forum for adjudication of said MOTION TO DISMISS, as it is germane
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`only to the civil action currently before the U.S. District Court for the Central District of
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`California.
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`In its OPPOSITION TO MOTION TO SUSPEND PROCEEDING PENDING
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`CIVIL ACTION before this Board, Avon offers as additional alleged evidence of
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`Applicant’s so—called “bad faith” the fact that Applicant has experienced several changes
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`of counsel representing him in these proceedings. This assertion stands in stark contrast
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`to the well—established public policy against punishing a party or allowing any negative
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`inferences to be drawn from a party’s selection of more effective representation.
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`Moreover, at the times of Applicant’s changes in counsel of record, there were no
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`pending discovery requests from Opposer, and the changes in counsel had no significant
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`impact in prolonging either the negotiations with Avon or these proceedings.
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`Accordingly, Avon’s argument is completely without merit.
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`B.
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`SUSPENSION OF TTAB PROCEEDINGS IS SUPPORTED BY
`LAW TTAB POLICY AND PUBLIC POLICY
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`The Board is authorized by law to suspend matters before it when the parties
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`thereto become engaged in litigation of issues before the Board. 37 C.F.R. § 2.1 l7(a)
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`provides that:
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`“Whenever it shall come to the attention of the Trademark Trial and
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`Appeal Board that a party or parties to a pending case are engaged in a
`civil action. . .proceedings before the Board may be suspended until
`termination of the civil action.”
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`Moreover, it is the long—standing policy and practice of the Board to suspend
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`proceedings when, “In view of the fact that the issues involved in the civil action may
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`have direct bearing upon applicant's right to register its mark. . .suspension of proceedings
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`pending final disposition of the civil action [is] correct and proper.” The Other
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`Telephone Company v. Connecticut National Telephone Company, Inc., l8l USPQ 779
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`(Con1rPats 1974). See also Tuvache Inc. v. Emilio Pricci Perfumes, International Inc. et
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`al., 152 USPQ 574 (S.D. N.Y. 1967); Whopper—Burger, Inc. v. Burger King
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`Corporation, l7l USPQ 805 (TTAB l97l).
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`Avon has cited no cases in support for its request that this Board abandon its
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`policy of suspending opposition and cancellation issues where the parties are engaged in
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`civil action. Instead, Avon asserts in its OPPOSITION TO MOTION TO SUSPEND that
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`Applicant filed a Complaint for declaratory judgment “in order to avoid responding to
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`discovery and being deposed in a number of opposition and cancellation proceedings
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`presently before the Board.” This assertion lacks any factual or legal foundation or any
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`foundation in the long—standing policies and practices of the Board in promoting judicial
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`economy. Indeed, given that full discovery will occur and depositions will be taken as a
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`result of and, incident to, the pending civil action, Avon's assertion of dilatory tactics is
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`disingenuous.
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`Similar arguments against suspension of TTAB proceedings pending the outcome
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`of civil actions have been addressed by the Comn1issioner’s Office, and those arguments
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`have been rejected based upon the authority vested in the Board and its exercise of sound
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`discretion in promoting judicial economy. In The Other Telephone Company v.
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`Connecticut National Telephone Company, Inc., l8l USPQ 779 (Con1rPats 1974), the
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`Commissioner denied a petition to vacate the Board’s order suspending TTAB
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`proceedings. In supporting the Board’s exercise of discretion to suspend the proceedings,
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`the Commissioner stated,
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`“Since a civil action had been instituted and the request for suspension had
`occurred prior to the close of opposer's testimony period it was not unreasonable
`under the circumstances for the opposer to forego moving forward and taking
`costly testimony for presentation as evidence in the opposition proceedings. If the
`civil action would, in fact, dispose of the issues currently before the Board it
`would be an exercise in futility to pursue evidence at this time which would not
`necessarily affect the outcome of the opposition.”
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`Id at p. 781. In the present case, Applicant filed his MOTION TO SUSPEND prior to the
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`close of the discovery period and he chose to forego further discovery in the TTAB
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`proceedings based entirely upon his concern over the duplication of efforts, the waste of
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`resources that would result from continued discovery in the TTAB and in the civil action,
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`and in good faith anticipation of the Board’s favorable ruling on his MOTION TO
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`SUSPEND.
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`Here, Applicant is engaged in six opposition and/or cancellation proceedings in
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`the U.S. brought by Avon, as well as similar proceedings brought by Avon in six foreign
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`jurisdictions. Avon’s actions in these matters make clear its intention to oppressively
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`take advantage of its extensive resources to the detriment of the Applicant by forcing the
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`Applicant to defend his marks in many jurisdictions simultaneously and at great expense.
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`Applicant’s desire to preserve resources and to consolidate the U.S. trademark issues with
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`Avon into a single action, to be fully litigated and resolved with finality in federal court,
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`should not be thwarted by Avon’s attempt to unnecessarily prolong these proceedings.
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`Further, “judicial economy warrants a consolidation of issues, including those which may
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`be presented for determination by the Board or which may have a bearing on an issue
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`before the Board, into one forum vested with the authority to hear all issues presented. It
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`is not unreasonable, in such a case, that proceedings be stayed in the administrative
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`tribunal pending the final disposition of issues by the other forum.” The Other Telephone
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`Company, at p. 782.
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`As the issues presented for adjudication in Applicant's civil action have direct
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`bearing upon the issues before the Board, there is a present and obvious risk of
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`inconsistent judgments, and the adjudication of those issues in U.S. District Court will be
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`dispositive of the issues before the Board, the present matter is Lily the type of
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`circumstance contemplated by 37 C.F.R. § 2.1 l7(a) and put into practice by the Board.
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`The long—standing policy of the Board, well— grounded in law and practice, and the
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`principles of judicial economy dictate a ruling by the Board in favor of Applicant’s
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`MOTION TO SUSPEND PROCEEDINGS PENDING CIVIL ACTION.
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`//
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`III.
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`CONCLUSION
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`Suspension of the TTAB proceeding is correct and proper in this, and the related,
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`TTAB proceedings. Disposition of the civil action will determine who has superior
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`trademark rights and whether Applicant’s mark creates a likelihood of confusion or
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`infringement of Opposer’s mark. The civil action therefore involves issues in common
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`with those before the Board. Thus, further proceedings on this matter in the TTAB prior
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`to the final disposition of the civil action would in fact be duplicative, unduly
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`burdensome and wasteful for the Board and the parties, and not be dispositive of the
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`trademark dispute between the parties. Accordingly, it is respectfully submitted that all
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`further proceedings in Opposition No. 91160985 be suspended pending disposition of
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`Civil Action No. 05—02l69R (MANX).
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`DATED: May 8, 2005
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`By:
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`/Wesley T. Miller/
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`Wesley T. Miller
`Attorney for Applicant Dean L. Rhoades
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`CERTIFICATE OF SERVICE
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`It is hereby certified that a true copy of the within APPLICANT’S RESPONSE
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`TO OPPOSER’S OPPOSITION MOTION TO SUSPEND PROCEEDING PENDING
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`CIVIL ACTION was served via first class mail upon the Opposer by depositing a copy
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`thereof in the mail, postage prepaid, directed to MICHELLE GRAHAM, KELLEY
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`DRYE & WARREN, LLP, l0l PARK AVENUE, NEW YORK, NY l0l78, this 8th day
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`of May, 2005.
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`/Wesley T. Miller/
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`Wesley T. Miller
`Attorney for Applicant Dean L. Rhoades
`
`
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Opposition No. 91160985
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`Avon Products, Inc.,
`
`Opposer,
`
`V.
`
`Rhoades, Dean L.,
`
`Applicant
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`\_/\_/\_/\_/\_/\_/\_/\_/\_/
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`DECLARATION OF WESLEY T. MILLER
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`I, Wesley T. Miller, hereby state and declare as follows:
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`1.
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`I am the Attorney of Record and counsel for the APPLICANT in the
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`aboVe—captioned action before the Trademark Trial and Appeal Board of
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`the U.S. Patent and Trademark Office. The facts stated in this Declaration
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`are of my own personal knowledge, or based upon information and
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`documents to which I have access in the course of my representation of
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`Applicant. I make this Declaration in support of APPLICANT’S
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`RESPONSE TO OPPOSER’S OPPOSITION TO MOTION TO
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`SUSPEND PROCEEDING PENDING CIVIL ACTION.
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`Applicant Dean L. Rhoades and his related company DermaNew, Inc.
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`(collectively, "DermaNew"), filed a complaint in the United States District
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`Court for the Central District of California for declaratory relief on March
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`24, 2005, requesting a judgment of non—infringement of AVon’s “ANEW”
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`marks and to establish the right to register Applicant's marks with the
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`USPTO. The complaint requested said judgment for the marks
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`“DERMANEW”, “KERANEW”, “GEMANEW”, “DERMANEW
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`INSTITUTE”, “IF IT IS NOT DERMANEW, IT IS NOT PERSONAL
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`MICRODERMABRASION”, and “DERMANEW PALM
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`MICRODERMABRASION SYSTEM”, amongst others, and collectively
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`referred to hereafter as the “DermaNew marks”. All of these marks are
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`currently at issue in these TTAB proceedings.
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`Prior to the filing of the above—mentioned complaint on March 24, 2005, a
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`conference call was held between attorneys for Avon Products, Inc.
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`(“Avon”), and counsel for Applicant Dean L. Rhoades. Participants in that
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`conference call were: John Bergin, in—house counsel for Avon; Michelle
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`M. Graham, outside counsel for Avon; Christine Lofgren, outside counsel
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`for Applicant Dean L. Rhoades and DerrnaNew, Inc.; and me, Wesley T.
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`Miller, in—house counsel for Applicant Dean L. Rhoades and DerrnaNew,
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`Inc.
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`Prior to the March 24, 2005, conference call, the parties had been
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`negotiating with a view toward the settlement of their trademark disputes
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`on a worldwide basis.
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`On March 24, 2005, counsel for Applicant (Christine Lofgren and Wesley
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`T. Miller) communicated to counsel for Avon that Avon had requested
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`terms that were overreaching and oppressive to Applicant, unrelated to the
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`parties’ trademark dispute, and therefore unacceptable to Applicant. John
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`Bergin, in—house counsel for Avon, then declared that our settlement
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`negotiations were “at an impasse.” Mr. Bergin went on to state that Avon
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`would not give up its “right to damages” in a settlement of the trademark
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`dispute without Applicant’s acquiescence to the unrelated terms demanded
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`by Avon.
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`6.
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`On information and belief, Applicant Dean L. Rhoades has been under the
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`implicit threat of litigation with Avon for trademark infringement since the
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`inception of these opposition proceedings, and he has been under the
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`explicit threat of litigation from Avon since at least September of 2003,
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`following a face—to—face meeting with Avon’s in—house counsel, John
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`Bergin, during which Mr. Bergin repeatedly and explicitly threatened to
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`sue Mr. Rhoades for trademark infringement for use of the marks at issue.
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`7.
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`Avon has filed six opposition and/or cancellation actions in the United
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`States Patent and Trademark Trial and Appeals Board related to the
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`“DermaNew” marks, all of which are at issue in the pending Civil Action
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`filed by Applicant and DermaNew, Inc.
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`8.
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`Avon has additionally filed and/or has pending filings for opposition or
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`cancellation actions related to the “DermaNew” marks in at least six
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`foreign jurisdictions, including: the European Community, Israel, Brazil,
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`Canada, Hong Kong, and South Korea.
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`I declare under penalty of perjury under the laws of the United States that the foregoing is
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`true and correct. Executed in Aliso Viejo, California, this 8th day of May, 2005.
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`/Wesley T. Miller/
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`Wesley T. Miller
`Attorney for APPLICANT Dean L. Rhoades



