`Trademark Trial and Appeal Board
`P.O. Box 1451
`Alexandria, VA 22313-1451
`General Contact Number: 571-272-8500
`
`Mailed: March 10, 2016
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`Opposition No. 91225573
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`Crown Imports LLC
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`v.
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`
`
`RK
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`Crown Brewing LLC
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`
`
`Opposition No. 91225577
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`CI Cerveza S.a.r.l.
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`v.
`
`
`Yong Oh (Richard) Kim, Interlocutory Attorney:
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`Crown Brewing LLC
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`Pursuant to Fed. R. Civ. P. 26(f) and Trademark Rules 2.120(a)(1) and (2),
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`the parties to this proceeding conducted a discovery conference on March 8,
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`2016. Board participation was requested by Opposers. Luke W. DeMarte,
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`Esq., of Michael Best & Friedrich LLP appeared on behalf of Opposers and
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`David Bryan and Zachary Bryan appeared pro se in their respective
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`capacities as Applicant’s President/Owner and General Manager. In this
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`regard and in response to the Board’s order of March 7, 2016, approving the
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`
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`Opposition No. 91225573 and Opposition No. 91225577
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`withdrawal of Applicant’s counsel, Applicant stated its intention to proceed
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`pro se.
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`Introductory Remarks
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`At the outset of the conference, the Board informed the parties that a
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`spirit of cooperation and good faith dealing were expected from the parties
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`during the duration of this proceeding and that any points of contention that
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`may arise during the course of the proceeding should be handled through
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`direct communication between the parties and in a spirit of good faith. The
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`parties were put on notice that a motion to compel would not be
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`entertained and good faith would not be found where the parties
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`have failed to previously conduct at least one telephone conference
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`to resolve the issue.
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`The Board also noted that telephone conferences with a Board attorney
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`are available as necessary but that both parties would need to be on the call
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`to discuss any substantive matter and that ex parte communications with the
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`Board are generally inappropriate.
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`The parties were instructed to file appearances of counsel and change of
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`correspondence forms as necessary, preferably via ESTTA, the Board’s
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`electronic filing system.
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`Prior Communications and Disputes
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`The parties have had, through Applicant’s prior counsel, some preliminary
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`but unsuccessful settlement discussions. Notwithstanding, the parties remain
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`2
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`Opposition No. 91225573 and Opposition No. 91225577
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`open to settlement discussions. To encourage and facilitate a potential
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`settlement of this matter, proceedings herein are SUSPENDED through
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`APRIL 8, 2016, for settlement discussions.
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`The Board then inquired as to whether the parties were involved in any
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`other disputes with each other involving the subject mark to which the
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`parties responded in the negative. Applicant further confirmed that its mark
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`was not the subject of any third-party dispute.
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`Pleadings
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`In reviewing the notices of opposition, Opposers’ counsel confirmed that
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`Opposer Crown Imports LLC (“Crown”) was only asserting a claim of priority
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`and likelihood of confusion in Opposition No. 91225573 and that Opposer CI
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`Cerveza S.a.r.l. (“Cerveza”) was only asserting claims of priority and
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`likelihood of confusion and dilution in Opposition No. 91225577 and that
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`Opposers were relying on the pleaded registrations and their common law
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`use in support of such claims. However, the Board noted, and Opposers’
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`counsel confirmed, that Crown and Cerveza are separate legal entities and
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`that neither is the owner of any of the registrations pleaded in the notices of
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`opposition.1 Accordingly, the Board questioned the ability of either opposer to
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`rely on any of the pleaded registrations in support of their priority and
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`likelihood of confusion claims. See Chemical New York Corp. v. Conmar Form
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`Sys., Inc., 1 USPQ2d 1139, 1144 (TTAB 1986) (only owner of registration may
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`1 As pleaded, Opposers’ counsel asserts that Crown is the licensee of Cerveza,
`which, in turn, is “the exclusive importer, marketer and distributor in the United
`States” of the owner of the pleaded registrations.
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`3
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`Opposition No. 91225573 and Opposition No. 91225577
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`rely on the Section 7(b) presumptions accorded to such registration).
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`Although counsel suggested that Opposers may rely on the registrations as
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`licensees, the Board is unaware of any such exception.
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`Similarly, the Board questions Cerveza’s ability to assert a dilution claim
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`considering that a cause of action for dilution under § 43(c) of the Lanham
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`Act is expressly reserved for “the owner of a famous mark.” To the extent that
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`Cerveza pleads marks that it does not own, its pleading of dilution is
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`insufficient. The Board also noted during the conference that Cerveza’s
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`inclusion of “other marks comprised of the terms CROWN, CORONA and the
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`image of a crown” as part of the collective reference “the CROWN marks,” see
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`Notice of Opposition (‘577) ¶ 4, is indefinite and fails to provide Applicant
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`with adequate notice of the marks relied on by Cerveza in support of its
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`claims.
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`In view thereof, Opposers are ordered to review the claims in
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`their respective notices of opposition and the bases therefor and to
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`replead, or otherwise strike, those claims as necessary in accordance
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`with this order. Cerveza is further ordered to replead its notice of
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`opposition to specify the marks and the respective goods and
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`services contemplated by the description “other marks comprised of
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`the terms CROWN, CORONA and the image of a crown.”
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`As to Applicant’s answer to each of the notices of opposition, the Board
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`observed that the putative “defenses” in the “Affirmative Defenses/Pleadings”
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`4
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`Opposition No. 91225573 and Opposition No. 91225577
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`section of the answer are not true affirmative defenses but rather
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`amplifications of Applicant’s denials of Opposers’ claims. Although their
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`inclusion in the answer is not necessary, neither is it prejudicial as they serve
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`to provide Opposers with further notice of Applicant’s defense.
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`Although Applicant raises acquiescence as an affirmative defense in each
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`of the oppositions, Applicant has failed to plead a basis for the defense.
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`Specifically, that “Opposer did not seek opposition of Applicant’s existing
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`trademark Application until only after the publication of Applicant’s
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`trademark application despite the many public recognitions and awards of
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`Applicant’s goods,” see Answer (‘573), ¶ 9, and Answer (‘577), ¶ 10, is
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`insufficient to support an acquiescence defense because, in an opposition
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`proceeding, the defense must be tied to the registration and not use of the
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`mark and, as such, does not begin to run until the mark is published for
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`opposition. See Krause v. Krause Publ’ns Inc., 76 USPQ2d 1904, 1914 (TTAB
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`2005). This defense is therefore STRICKEN.
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`Discovery and Stipulations
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`The parties were advised that the Board’s standard protective order is
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`operative in these proceedings, made applicable by operation of Trademark
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`Rule 2.116(g) and available at http://www.uspto.gov/trademarks/process/
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`appeal/guidelines/stndagmnt.jsp. If the parties wish to acknowledge their
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`obligations under the standard protective order in writing, the parties are
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`5
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`Opposition No. 91225573 and Opposition No. 91225577
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`referred to the form found at http://www.uspto.gov/trademarks/process/
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`appeal/guidelines/ackagrmnt.jsp.
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`Should the parties wish to modify the Board’s standard protective order,
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`the parties may negotiate any changes and file a copy of the proposed
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`protective order for Board approval.
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`The parties did not offer or otherwise suggest any potential discovery or
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`testimonial stipulations. The Board encourages the parties to consider ways
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`in which to potentially limit and simplify discovery and testimony through
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`reciprocal disclosures, stipulations of fact, and/or agreements. For instance,
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`the parties may consider greater use of reciprocal disclosures and less use of
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`formal discovery or streamlining their discovery by limiting the number of
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`depositions,2 interrogatories, document production requests and admission
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`requests. The parties may also consider simplifying the introduction of
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`evidence into the record such as by stipulating to the authentication of
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`documents produced in response to document requests via a notice of reliance
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`by the propounding party.
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`The parties declined to accept service of papers by e-mail thereby
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`retaining the five-day grace period under Trademark Rule 2.119(c)
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`but the parties did agree to send, via e-mail, courtesy copies of any
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`2 Pursuant to Fed. R. Civ. P. 30(a), made applicable to Board proceedings by
`Trademark Rule 2.116, a party may not seek more than ten discovery depositions
`without a prior stipulation between the parties or leave of the Board.
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`6
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`Opposition No. 91225573 and Opposition No. 91225577
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`papers served. Courtesy copies of any papers served by a party are
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`to be sent to the opposing party as follows:
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`For Opposers:
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`jhbrown@michaelbest.com
`lwdemarte@michaelbest.com
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`For Applicant:
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`The parties were advised that the five day grace period afforded them
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`orders@crownbrewing.com
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`under Trademark Rule 2.119(c) would apply so long as one of the prescribed
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`methods of service3 is utilized and, to that end, were reminded to specify the
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`method of service in the certificate of service.
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`Alternative Dispute Resolution and Accelerated Case Resolution
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`The Board informed the parties that mediation and arbitration are
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`outside resources available to the parties to facilitate settlement discussions.
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`Although the Board will not refer the parties to any particular arbitrator or
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`mediator, the Board would be amenable to suspending these proceedings
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`should the parties choose these alternatives to aid in settlement.
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`Accelerated Case Resolution (ACR) was also discussed as a way to
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`expeditiously obtain a final determination of these proceedings without the
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`time and expense of a full trial. A proceeding that is ideally suited for ACR is
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`one in which the parties anticipate being able to stipulate to many facts, or in
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`which each party expects to rely on the testimony of only one or two
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`witnesses and the overall record will not be extensive.
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`3 Currently, Trademark Rule 2.119(c) applies to service made by first-class mail,
`Priority Mail Express®, or overnight courier.
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`7
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`Opposition No. 91225573 and Opposition No. 91225577
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`Although none of the parties expressed an interest in this procedure at
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`this point in the proceedings, the parties are, nevertheless, encouraged to
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`remain open to the procedure, particularly if the parties believe they can
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`simplify these proceedings through the use of factual and evidentiary
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`stipulations. As mentioned during the conference, the parties must mutually
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`agree to ACR as the procedure cannot be instituted unilaterally and there is
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`no procedural mechanism by which an unwilling party can be compelled to
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`engage in ACR. To facilitate the parties’ consideration, they are referred to
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`the following for additional information on the procedure:
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`http://www.uspto.gov/trademarks/process/appeal/Accelerated_Case_Resol
`ution__ACR__notice_from_TTAB_webpage_12_22_11.pdf
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`http://www.uspto.gov/trademarks/process/appeal/Accelerated_Case_Resol
`ution_(ACR)_FAQ_updates_12_22_11.doc
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`Conclusion
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`As noted by the Board during the conference, neither the service of
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`discovery requests nor the filing of a motion for summary judgment (except
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`on the basis of res judicata, collateral estoppel, or lack of Board jurisdiction)
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`may occur until after initial disclosures (required under Fed. R. Civ. P.
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`26(a)(1)) are made.
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`As noted supra, proceedings are SUSPENDED until APRIL 8, 2016, for
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`settlement discussions. Should the parties fail to reach an agreement,
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`proceedings herein will resume on APRIL 9, 2016, for the limited purpose of
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`amending the pleadings. Opposers are allowed until MAY 9, 2016, to serve
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`8
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`Opposition No. 91225573 and Opposition No. 91225577
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`and file their amended notices of opposition and Applicant is allowed until
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`JUNE 8, 2016, to serve and file its answers thereto.
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`On the question of consolidation, counsel requested, and the Board
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`granted, time for Opposers to consider the merits of consolidating these
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`proceedings. Opposers are therefore allowed until JUNE 22, 2016, to file any
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`objections to consolidation, failing which these opposition proceedings will be
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`consolidated. The consolidation order will provide a consolidated schedule.
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`Pro Se Information
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`The record does not reflect that Applicant is represented by legal counsel
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`in this proceeding. While Patent and Trademark Rule 11.14(e) permits any
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`person to represent itself, it is generally advisable for a person who is not
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`acquainted with the technicalities of the procedural and substantive law
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`involved in an opposition proceeding to secure the services of an attorney who
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`is familiar with such matters. The Patent and Trademark Office cannot aid
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`in the selection of an attorney.
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`The Trademark Rules of Practice, other federal regulations governing
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`practice before the Patent and Trademark Office, and many of the Federal
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`Rules of Civil Procedure govern the conduct of this proceeding. The
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`Trademark Act, the Trademark Rules of Practice, and the Trademark Trial
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`and Appeal Board Manual of Procedure (TBMP) are all available on the
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`TTAB page of the USPTO website at http://www.uspto.gov/trademarks/
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`process/appeal/index.jsp. This web page also includes information on
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`
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`9
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`Opposition No. 91225573 and Opposition No. 91225577
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`Alternative Dispute Resolution (ADR), Frequently Asked Questions about
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`Board proceedings, and other relevant topics.
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`Applicant is reminded that Trademark Rules 2.119(a) and (b) require that
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`every paper filed in the Patent and Trademark Office in a proceeding before
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`the Board must be served upon the attorney for the other party (or
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`adversary), and proof of such service must be made before the paper will be
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`considered by the Board. Consequently, copies of all papers that the parties
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`may subsequently file in this proceeding must be accompanied by “proof of
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`service” of a copy on the other party or the other party’s counsel.
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`“Proof of service” usually consists of a signed, dated statement stating: (1)
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`the nature of the paper being served, (2) the method of service (e.g., first class
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`mail), (3) the person being served and the address used to effect service, and
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`(4) the date of service. For future reference, a suggested format for the
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`certificate of service is provided below:
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`I hereby certify that a true and complete copy of the foregoing
`(insert title of submission) has been served on (insert name
`of opposing counsel or party) by mailing said copy on (insert
`date of mailing), via First Class Mail, postage prepaid (or
`insert other appropriate method of delivery) to:
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`(set out name and address of opposing
`counsel or party)
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`
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`_______________________________
`Signature
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`
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`See TBMP § 113.
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`
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`10
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`Opposition No. 91225573 and Opposition No. 91225577
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`Applicant should further note that any paper it is required to file with the
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`Board should not take the form of a letter; proper format should be utilized.
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`The form of submissions is governed by Trademark Rule 2.126. See also
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`TBMP § 106.03. In particular, “[a] paper submission must be printed in at
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`least 11-point type and double-spaced, with the text on one side only of each
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`sheet” and text “in an electronic submission must be in at least 11-point type
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`and double-spaced.” Trademark Rule 2.126(a)(1) and 2.126(b).
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`While it is true that the law favors judgments on the merits wherever
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`possible, it is also true that the Patent and Trademark Office is justified in
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`enforcing its procedural deadlines. Hewlett-Packard v. Olympus, 18 USPQ2d
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`1710 (Fed. Cir. 1991). In that regard, the parties should note that any paper
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`they are required to file herein must be received by the Board by the due
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`date, unless one of the filing procedures set forth in Trademark Rules 2.197
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`and 2.198 is utilized.
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`In submitting an answer, Applicant is referred to Rule 8(b) of the Federal
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`Rules of Civil Procedure, made applicable to this proceeding by Trademark
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`Rule 2.116(a). Fed. R. Civ. P. 8(b) provides:
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`(b) Defenses; Admissions and Denials
`(1)
`In General. In responding to a pleading, a party
`must:
`(A)
`
`state in short and plain terms its defenses to
`each claim asserted against it; and
`admit or deny the allegations asserted
`against it by an opposing party.
`(2) Denials – Responding to the Substance. A
`denial must fairly respond to the substance of the
`allegation.
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`(B)
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`
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`11
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`Opposition No. 91225573 and Opposition No. 91225577
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`(3) General and Specific Denials. A party that
`intends in good faith to deny all the allegations of a
`pleading – including the jurisdictional grounds –
`may do so by a general denial. A party that does
`not intend to deny all the allegations must either
`specifically deny designated
`allegations
`or
`generally deny all except
`those specifically
`admitted.
`(4) Denying Part of an Allegation. A party that
`intends in good faith to deny only part of an
`allegation must admit the part that is true and
`deny the rest.
`Lacking Knowledge or Information. A party
`that lacks knowledge or information sufficient to
`form a belief about the truth of an allegation must
`so state, and the statement has the effect of a
`denial.
`Effect of Failing to Deny. An allegation – other
`than one relating to the amount of damages – is
`admitted if a responsive pleading is required and
`the allegation is not denied. If a responsive
`pleading is not required, an allegation is considered
`denied or avoided.
`
`(5)
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`(6)
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`In accordance with Fed. R. Civ. P. 8(b), it is incumbent on Applicant to
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`answer the notice of opposition by admitting or denying the allegations
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`contained in each paragraph. If Applicant is without sufficient knowledge or
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`information on which to form a belief as to the truth of any one of the
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`allegations, she should so state and this will have the effect of a denial.
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`Files of TTAB proceedings can be examined using TTABVue, accessible at
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`http://ttabvue.uspto.gov/ttabvue. After entering the 8-digit proceeding
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`number, click on any entry in the prosecution history to view that paper in
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`PDF format.
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`* * *
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`12



