TE-TA-MA Truth v. World Church Creator ( 2002 )


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  •                             In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________
    No. 02-1381
    TE-TA-MA TRUTH FOUNDATION—FAMILY OF URI, INC.,
    Plaintiff-Appellant,
    v.
    WORLD CHURCH OF THE CREATOR,
    Defendant-Appellee.
    ____________
    Appeal from the United States District Court for the
    Northern District of Illinois, Eastern Division.
    No. 00 C 2638—Joan Humphrey Lefkow, Judge.
    ____________
    ARGUED JUNE 4, 2002—DECIDED JULY 25, 2002
    ____________
    Before COFFEY, EASTERBROOK, and WILLIAMS, Circuit
    Judges.
    EASTERBROOK, Circuit Judge. The “Church of the Cre-
    ator” and the “World Church of the Creator” have irreconcil-
    able creeds. The Church of the Creator (the operating
    name of TE-TA-MA Truth Foundation—Family of URI,
    Inc.) believes in universal love and respect. Its Sacred
    Mandate reads:
    2                                                  No. 02-1381
    CHURCH OF THE CREATOR®
    Supports the Family Unification of Mankind
    In All Aspects Of The Whole.
    We of Like Mind Join Harmoniously In
    Oneness, Knowing That There Is Only
    One Creator-Source.
    The Many In One Dedicate Our Physical
    Embodiments To The God Expression
    In Form, Bringing Forth By Example
    To This Planet Earth
    Love, Light and Peace.
    Therefore, Once Decreeing
    DIVINE RIGHT ORDER®
    In All Thoughts – All Things, Our
    Universe Automatically Aligns Into
    Manifestation of Heaven On Earth.
    Through The Priesthood of Melchizedek
    We Are One In The Body Of Jesus Christ.
    As Above So Below.
    The Church’s web site 
    provides additional details, including the text of the Divine
    Right Order. World Church of the Creator, by contrast, does
    not worship God but instead depicts the “white race” as the
    “Creator” and calls for the elimination of Jews, blacks, and
    what it labels “mud races.” Its slogan is: “Dedicated to the
    Survival, Expansion, and Advancement of the White Race”.
    The World Church of the Creator’s beliefs are explicated
    more fully in Nature’s Eternal Religion, a book by its
    founder, Ben Klassen, and on its web site . The Church of the Creator is a recognized
    religious charity. The World Church of the Creator, as a
    racist group, is not entitled to that benefit, see Bob Jones
    University v. United States, 
    461 U.S. 574
     (1983), and has
    had its charitable status revoked by both state and federal
    governments. See Church of the Creator, Inc. v. CIR, 
    707 F.2d 491
     (11th Cir. 1983); People ex rel. Ryan v. World
    No. 02-1381                                                3
    Church of the Creator, 
    198 Ill. 2d 115
    , 
    760 N.E.2d 953
    (2001) (discussing related issues following the loss of state
    tax-exempt status in 1995). (Note the change from “Church
    of the Creator, Inc.” to “World Church of the Creator,” an
    unincorporated association. This is apparently part of a
    judgment-proofing strategy after a court held in 1994 that
    Klassen’s organization must pay damages for orchestrat-
    ing a murder. Mansfield v. Pierce, 
    1998 U.S. App. LEXIS 17086
     (4th Cir. July 27, 1998), supplies details. Klassen
    committed suicide in 1993, and Matt Hale became “Pontifex
    Maximus” of the reconstituted organization in 1996.)
    What has led to this litigation between the two organi-
    zations is the little ® symbol attached to Church of the
    Creator. (To promote clarity, from now on we refer to the
    Church of the Creator as “the Foundation” and the World
    Church of the Creator as “the World Church.”) Klassen
    founded and named his group in 1973, while the Founda-
    tion did not begin using “Church of the Creator” until 1982.
    But the Foundation was first to take advantage of the
    federal trademark-registration system, seeking protection
    in 1987 for its name and symbol (a radiant dove centered on
    a six-pointed star with a multi-colored background):
    4                                                    No. 02-1381
    The Patent and Trademark Office (PTO) granted the Founda-
    tion’s application in 1988, though it required the Founda-
    tion to disclaim any right to the word “church.” See Trade-
    mark 
    Registration No. 1,496,724
    . Five years passed, during
    which Klassen’s group did not protest this registration. The
    PTO then accepted and filed a declaration that the mark
    had become incontestable under 
    15 U.S.C. §1065
    —which
    means that it may be enforced, without proof of secondary
    meaning, even if it is a descriptive name for the qualities or
    characteristics of a good or service. See Park ’N Fly, Inc. v.
    Dollar Park and Fly, Inc., 
    469 U.S. 189
     (1985). When the
    Foundation began to receive protests about its supposedly
    racist creed—complaints demonstrating confusion between
    the two groups—it set out to enforce its incontestable mark
    by seeking an injunction against the World Church’s use of
    what is obviously a confusingly similar name. The groups’
    symbology differs, as the World Church’s banner shows:
    But the Foundation’s mark includes the name as well as
    the graphic presentation.
    Although an incontestable mark may be enforced even if
    it is descriptive, it is subject to cancellation if it is or
    becomes generic. Section 1065, which sets out the rules for
    incontestable marks, begins: “Except on a ground for which
    application to cancel may be filed at any time under para-
    graphs (3) and (5) of section 1064 of this title”, and §1064(3)
    permits cancellation “[a]t any time if the registered mark
    becomes the generic name for the goods or services, or a
    portion thereof, for which it is registered”. Thus as the
    Court recognized in Park ’N Fly an incontestable mark does
    not confer any rights to a phrase that was generic at the
    outset or has become so through use. “A generic term is one
    No. 02-1381                                                5
    that refers to the genus of which the particular product is
    a species.” 
    469 U.S. at 194
    . The World Church’s defense in
    this suit is that “Church of the Creator” is generic: that it
    names the genus of all monotheistic religions, of which
    particular creeds such as Judaism, Christianity, and Islam
    (and all their many subdivisions) are the species. The
    Foundation replied with two procedural points: first, that
    although generic status allows cancellation of a mark by
    the PTO under §1064, it does not afford a defense while the
    mark remains uncancelled; second, that incontestable
    status provides at least a powerful presumption that the
    mark is non-generic, a presumption that can be overcome
    only by strong evidence of actual usage. The district judge
    brushed aside both of these arguments and, relying exclu-
    sively on dictionary definitions of the word “creator,” en-
    tered summary judgment for the World Church. TE-TA-MA
    Truth Foundation—Family of URI, Inc. v. World Church of
    the Creator, 
    2002 U.S. Dist. LEXIS 1478
     (N.D. Ill. Jan. 31,
    2002).
    On appeal the Foundation repeats its contention that the
    PTO,  rather than a court, is the proper forum for any con-
    tention that an incontestable mark is generic. This conten-
    tion, which relies principally on 
    15 U.S.C. §1115
    (b) (“To the
    extent that the right to use the registered mark has become
    incontestable under section 1065 of this title, the regis-
    tration shall be conclusive evidence of the validity of the
    registered mark”), finds some support in the language of
    Sovereign Order of St. John of Jerusalem, Inc. v. Grady, 
    119 F.3d 1236
    , 1240 (6th Cir. 1997), but not in the holding of
    that or any other circuit—and it is untenable. Even if a
    mark must be canceled before enforcement may be denied,
    trademark law does not reserve the cancellation power to
    the PTO. A court may cancel a mark itself or order the
    agency to do so. 
    15 U.S.C. §1119
    . So even if the sequence
    must be generic status to cancellation to nonenforcement,
    a court can handle all of the stages. This means that the
    6                                                   No. 02-1381
    generic nature of a mark may be a defense in litigation.
    And if a court may order a mark canceled, an incontestable
    registration is more like a bursting-bubble presumption of
    non-generic-ness than like the sort of indomitable presump-
    tion that the Foundation seeks. Like the district court, then,
    we proceed to ask whether “Church of the Creator” is
    generic.
    Unlike the district court, we conclude that this phrase is
    descriptive rather than generic. Appellate review of a sum-
    mary-judgment decision is plenary. Both sides moved for
    summary judgment, so each was required to introduce
    evidence to show that a material issue of disputed fact
    remained for decision. Confronted with the Foundation’s
    motion, the World Church produced—nothing but a dictio-
    nary. It did not offer any evidence about how religious
    adherents use or understand the phrase as a unit. It offered
    only lexicographers’ definitions of the individual words.
    That won’t cut the mustard, because dictionaries reveal a
    range of historical meanings rather than how people use a
    particular phrase in contemporary culture. (Similarly, look-
    ing up the words “cut” and “mustard” would not reveal the
    meaning of the phrase we just used.)
    Contemporary usage does not treat “Church of the Cre-
    ator” as the name for monotheistic religion—or any other
    genus of religion. If it were, then the World Church itself
    would be misusing the phrase, for it is not theistic in any
    traditional sense and has nothing in common with Judaism,
    Christianity, or Islam. The World Church’s web site, and
    much of its literature, feature one international negation
    symbol (a circle with a diagonal bar) superimposed over a
    Star of David and another superimposed over a cross. It
    condemns the Bible as a hoax.
    A mark is “generic” when it has become the name of a
    product (e.g., “sandwich” for meat between slices of bread)
    or class of products (thus “church” is generic). But “Church
    No. 02-1381                                                 7
    of the Creator” is descriptive, like “lite beer.” It does not
    name the class of monotheistic religions. In the contempo-
    rary United States, variations on “Church of [Deity]” are
    used to differentiate individual denominations, not to de-
    note the class of all religions. The list is considerable:
    Church of God; Church of God (Anderson, Indiana); First
    Church of God; Worldwide Church of God (see Worldwide
    Church of God v. Philadelphia Church of God, Inc., 
    227 F.3d 1110
     (9th Cir. 2000)); Church of God in Christ; As-
    sembly of God; Korean Assembly of God; Church of the
    Nazarene; Church of Christ; United Church of Christ;
    Disciples of Christ; Church of Christ, Scientist; Church of
    Jesus Christ of Latter Day Saints. There is room for ex-
    tension with Church of Our Savior, Church of the Holy
    Spirit, Church of the Holy Trinity, Church of Jehovah, and
    so on. Yet all of these are recognizable as denominational
    names, not as the designation of the religion to which the
    denominations belong. No Jewish, Islamic, Baha’i, or Uni-
    tarian group would say that it belongs to a “Church of the
    Creator”; and a Christian congregation would classify itself
    first into its denomination (e.g., Baptist, Lutheran, Russian
    Orthodox, Society of Friends), then into one of the major
    groupings (Roman Catholic, Orthodox, and Protestant), and
    finally into Christianity, but never into a “Church of the
    Creator.” No one called or emailed a Baptist church to
    complain about its complicity in the hate-mongering of the
    World Church of the Creator; people recognized the name
    as denominational, and that’s why protests ended up in the
    Church of the Creator’s in box.
    What is more, as these lists show, using “Church of the
    Creator” as a denominational name leaves ample options for
    other sects to distinguish themselves and achieve sep-
    arate identities. It is not remotely like one firm appropriat-
    ing the word “sandwich” and thus disabling its rivals from
    explaining to consumers what’s to eat. When the line be-
    tween generic and descriptive terms is indistinct—as it is,
    8                                                  No. 02-1381
    for example, with a phrase such as “liquid controls,” see
    Liquid Controls Corp. v. Liquid Control Corp., 
    802 F.2d 934
    (7th Cir. 1986)—it is helpful to ask whether one firm’s
    exclusive use of the phrase will prevent a rival from naming
    itself and describing its product. (As far as the Lanham Act
    is concerned, a denomination is a producer and religious
    services and publications are products. Neither side has
    questioned the application of trademark laws to religion.)
    Because there are so many ways to describe religious
    denominations, there is no risk that exclusive use of
    “Church of the Creator” will appropriate a theology or
    exclude essential means of differentiating one set of beliefs
    from another.
    The World Church has a fallback argument: that recog-
    nizing a trademark in “Church of the Creator” violates the
    first amendment. Yet as San Francisco Arts & Athletics,
    Inc. v. United States Olympic Committee, 
    483 U.S. 522
    (1987), observed when rejecting a similar contention, the
    Constitution itself authorizes Congress to create rights of
    this kind. Cf. Harper & Row, Publishers, Inc. v. Nation
    Enterprises, 
    471 U.S. 539
     (1985). Trademark rights promote
    the aims of the first amendment by enabling producers of
    the spoken and written word to differentiate themselves. If
    multiple businesses use the same (or confusingly similar)
    names, the result is cacophony rather than discussion or
    debate. If every candidate on the ballot ran under the same
    name, this would do more to befuddle the voters than to
    promote the candidates’ freedom of expression. Cf. Grimes
    v. Smith, 
    585 F. Supp. 1084
     (N.D. Ind. 1984), affirmed, 
    776 F.2d 1359
     (7th Cir. 1985). It is questionable whether the
    World Church is a religion (not all philosophical beliefs are
    religious), but, if it is, still Congress need not exempt
    religions from generally applicable laws. See Employment
    Division v. Smith, 
    494 U.S. 872
     (1990). The World Church
    has every right to a distinctive name; it does not have
    No. 02-1381                                              9
    a constitutional right to use some other denomination’s
    incontestable trademark.
    By this time, a reader familiar with the Lanham Act may
    have grown frustrated by our inattention to what must
    seem the most obvious argument on behalf of the World
    Church: prior use. Ben Klassen published Nature’s Eternal
    Religion, and adopted the name “Church of the Creator,” in
    1973, nine years before the Foundation began using that
    phrase. Section 1065 provides that even incontestable
    marks must yield to “a valid right acquired under the law
    of any State or Territory by use of a mark or trade name
    continuing from a date prior to the date of registration
    under this chapter of such registered mark”. Yet the World
    Church has not urged prior use as a defense, presumably
    because of the reorganization designed to avoid paying the
    judgment mentioned in this opinion’s opening paragraph.
    The corporation that adopted the name “Church of the
    Creator” in 1973 no longer exists; the organization “World
    Church of the Creator” formed in 1996 is junior to the
    Foundation. It turns out that tactics adopted to avoid pay-
    ing for one’s wrongs have collateral costs.
    The judgment of the district court is reversed, and the
    case is remanded with instructions to enter an appropriate
    judgment in favor of the Foundation.
    A true Copy:
    Teste:
    ________________________________
    Clerk of the United States Court of
    Appeals for the Seventh Circuit
    USCA-97-C-006—7-25-02