Jack Wolfskin Ausrustung Fur Draussen GmbH & Co. KGAA v. New Millennium Sports, S.L.U. ( 2015 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    JACK WOLFSKIN AUSRUSTUNG FUR DRAUSSEN
    GMBH & COMPANY KGAA,
    Appellant
    v.
    NEW MILLENNIUM SPORTS, S.L.U.,
    Appellee
    ______________________
    2014-1789
    ______________________
    Appeal from the United States Patent and Trademark
    Office, Trademark Trial and Appeal Board in No.
    91195604.
    ______________________
    Decided: August 19, 2015
    ______________________
    RICHARD LEHV, Fross, Zelnick, Lehrman & Zissu,
    P.C., New York, NY, argued for appellant. Also represent-
    ed by ROBERT A. BECKER.
    PHILIP BAUTISTA, Taft, Stettinius & Hollister, LLP,
    Cleveland, OH, argued for appellee.
    ______________________
    Before LOURIE, BRYSON, and CHEN, Circuit Judges.
    2    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    CHEN, Circuit Judge.
    Appellant Jack Wolfskin Ausrustung Fur Draussen
    GmbH & Co. KGAA (Jack Wolfskin) applied to the Patent
    and Trademark Office to register a design mark consist-
    ing of an angled paw print for use with its clothing, foot-
    wear, and accessory products. Appellee New Millennium
    Sports, S.L.U. (New Millennium) opposed the registration
    on the ground that Jack Wolfskin’s mark would likely
    create confusion with its own registered mark. In re-
    sponse, Jack Wolfskin filed a counterclaim for cancella-
    tion alleging that New Millennium had abandoned its
    registered mark. The Trademark Trial and Appeal Board
    (Board) rejected Jack Wolfskin’s cancellation counterclaim
    and sustained the opposition, thus refusing to register
    Jack Wolfskin’s mark. We agree with the Board that New
    Millennium did not abandon its registered mark. We
    conclude, however, that the Board incorrectly found a
    likelihood of confusion between the two marks because
    the Board failed to properly compare New Millennium’s
    mark as a whole to Jack Wolfskin’s mark and also failed
    to recognize, in light of the significant evidence of paw
    prints appearing in third-party registrations and usage
    for clothing, the relatively narrow scope of protection
    afforded to marks involving paw prints. We therefore
    affirm-in-part, reverse-in-part, and remand for further
    proceedings consistent with this opinion.
    I.   BACKGROUND
    New Millennium owns Trademark Registration No.
    1,856,808 (KELME mark).
    New Millennium registered the KELME mark for use in
    association with goods in International Class 25, which
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,     3
    S.L.U.
    encompasses a variety of clothing products. The KELME
    mark was registered on October 4, 1994.
    On September 10, 2009, Jack Wolfskin filed U.S.
    Trademark Application Serial No. 77/823,794 with the
    Patent and Trademark Office, in which it sought to regis-
    ter a mark consisting of “a nonhuman paw print.” Joint
    Appendix (J.A.) 28.
    In its application, Jack Wolfskin sought this trademark
    for a variety of products classified in International Clas-
    ses 9, 18, 22, and 25.
    New Millennium filed an opposition asserting that
    Jack Wolfskin’s mark would likely cause confusion with
    New Millennium’s KELME mark.            See 15 U.S.C.
    § 1052(d). New Millennium limited its opposition to goods
    in International Class 25. In response, Jack Wolfskin
    denied that its mark would cause confusion and counter-
    claimed to cancel New Millennium’s KELME mark on the
    basis of abandonment.
    The Board rejected Jack Wolfskin’s abandonment
    counterclaim finding that New Millennium had continu-
    ously used the registered mark or a version that was not a
    “material alteration” of the registered mark. The Board
    then evaluated New Millennium’s likelihood-of-confusion
    claim according to the factors announced by our predeces-
    sor court in In re E. I. DuPont DeNemours & Co., 
    476 F.2d 1357
    , 1361 (CCPA 1973) (DuPont factors), and concluded
    that Jack Wolfskin’s mark would likely cause confusion.
    The Board therefore sustained New Millennium’s opposi-
    tion and refused to register Jack Wolfskin’s mark.
    4    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    Jack Wolfskin appeals both parts of the decision. We
    have jurisdiction under 28 U.S.C. § 1295(a)(4)(B). Alt-
    hough we agree with the Board that New Millennium did
    not abandon its registered mark, we disagree that Jack
    Wolfskin’s mark is confusingly similar to New Millenni-
    um’s mark.
    II.    ABANDONMENT COUNTERCLAIM
    Jack Wolfskin’s cancellation counterclaim relies on
    the fact that New Millennium ceased using the registered
    version of its mark and instead began using a modified or
    modernized version of that mark. Because of this change,
    Jack Wolfskin contends that New Millennium abandoned
    its registered mark and that it should therefore be can-
    celled. New Millennium does not dispute that it no longer
    uses the exact mark that appears in its registration and
    admits that it has not used that version since 2004. New
    Millennium argues, however, that it has not abandoned
    its mark because the differences between the modernized
    mark and the registered mark are minor.
    A.    Legal Standard
    A trademark owner abandons its mark if use of the
    mark has been “discontinued with intent not to resume.”
    15 U.S.C. § 1127. If a registered mark has been aban-
    doned, a party may file a petition to cancel the registra-
    tion at any time. 15 U.S.C. § 1064(3). Abandonment may
    also be alleged in a counterclaim to an opposition filed by
    the owner of the purportedly abandoned mark.
    Trademark owners sometimes cease using their literal
    registered marks in favor of modified or modernized
    versions. As McCarthy explains,
    [s]uch changes in the form of marks have been le-
    gally attacked on two grounds: (1) that the change
    resulted in abandonment of rights in the old form;
    (2) that the change prevents the user from tracing
    JACK WOLFSKIN AUSRUSTUNG    v. NEW MILLENNIUM SPORTS,        5
    S.L.U.
    priority of use back to a date of first use of the old
    form of the mark.
    J. Thomas McCarthy, 3 McCarthy on Trademarks and
    Unfair Competition § 17:25 (4th ed. 2015) [hereinafter
    McCarthy]. This ability to rely on an earlier form of a
    mark, when now using a modified version of that mark, is
    often called “tacking.” Courts have referenced tacking in
    both abandonment and priority contexts. See Hana Fin.,
    Inc. v. Hana Bank, 
    135 S. Ct. 907
    , 909 (2015) (recognizing
    that “tacking” encompasses situations where an entity
    makes modifications to its marks over time, but is still
    able to “clothe [that] new mark with the priority position
    of an older mark”); Sunstar, Inc. v. Alberto-Culver Co.,
    
    586 F.3d 487
    , 496 (7th Cir. 2009) (explaining that the rule
    of “tacking on” “makes the use by a trademark’s owner of
    a variant of his original trademark a defense to a claim
    that replacing the original with the variant constituted
    the abandonment . . . of the trademark”). McCarthy also
    recognizes that “[i]mproper tacking [by using a modified
    mark that materially alters the earlier mark] can result
    in ‘abandonment’ of the old form of the mark” if the ele-
    ments of abandonment—nonuse with intent not to resume
    use—are satisfied. McCarthy § 17:26.
    In the context of a priority dispute, we previously held
    that if the old form and the new form of the mark are
    “legal equivalents,” such legal attacks will fail. Van Dyne-
    Crotty, Inc. v. Wear-Guard Corp., 
    926 F.2d 1156
    , 1159
    (Fed. Cir. 1991), abrogated on other grounds by Hana
    
    Fin., 135 S. Ct. at 910
    . Two marks are legally equivalent
    if they “create the same, continuing commercial impres-
    sion” and where the modified version of the mark does not
    “materially differ from or alter the character” of the
    original mark. 1 
    Id. (citation and
    internal quotation marks
    1  Jack Wolfskin contends that this “material altera-
    tion” standard originates from the statute governing
    6    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    omitted); see also Ilco Corp. v. Ideal Sec. Hardware Corp.,
    
    527 F.2d 1221
    , 1224 (CCPA 1976) (“The law permits a
    user who changes the form of its mark to retain the
    benefit of its use of the earlier form, without abandon-
    ment, if the new and old forms create the same, continu-
    ing commercial impression.”).
    trademark amendments. 15 U.S.C. § 1057(e) (permitting
    amendment to a registered mark so long as that amend-
    ment “does not alter materially the character of the
    mark”). The Trademark Manual of Examining Procedure
    (TMEP) explains that an amendment to a mark is mate-
    rial if “the change would require republication in order to
    present the mark fairly for purposes of opposition.”
    TMEP § 1609.02(a); see also 37 C.F.R. § 2.72(a)(2)
    (amending a mark is permissible if “[t]he proposed
    amendment does not materially alter the mark.”). As far
    as we can tell, this “republication” standard has been
    used only in the context of determining the propriety of a
    proposed amendment. See, e.g., In re Thrifty, 
    274 F.3d 1349
    , 1352–53 (Fed. Cir. 2001) (applying the material
    alteration standard in affirming the Board’s rejection of
    an amendment to a rejected trademark application).
    Furthermore, the TMEP also explains that “[i]n determin-
    ing whether an amendment is a material alteration, the
    controlling question is always whether the new and old
    forms of the mark create essentially the same commercial
    impression.” TMEP § 1215.08 (emphasis added); see also
    TMEP § 807.14. Thus, even if we were to embrace the
    TMEP provisions relating to amendment, our analysis for
    abandonment would not change. See In re 
    Thrifty, 274 F.3d at 1352
    –53 (“To avoid material alteration, the new
    form must create the impression of being essentially the
    same mark.” (internal quotation marks omitted)).
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,     7
    S.L.U.
    We have not spoken directly on what standard to use
    in the abandonment context. The Board, however, em-
    ploys the “same, continuing commercial impression”
    standard when evaluating whether changes to a mark
    result in abandonment of an earlier registered mark. See,
    e.g., Paris Glove of Can., Ltd. v. SBC/Sporto Corp., 84
    U.S.P.Q.2d 1856, 1861 (T.T.A.B. 2007) (citing McCarthy
    § 17:26) (“[A] change in the form of a mark does not
    constitute abandonment or a break in continuous use if
    the change neither creates a new mark nor changes the
    commercial impression of the old mark.”). In addition,
    other circuits have also adopted this standard in the
    abandonment context. See, e.g., George & Co. LLC v.
    Imagination Entm’t Ltd., 
    575 F.3d 383
    , 402 (4th Cir.
    2009) (concluding that the trademark owner had aban-
    doned its registered mark where it could not “tack” its
    prior use of the mark to its current, modernized version of
    that mark because its new mark did not create the same
    continuing commercial impression); Sands, Taylor &
    Wood Co. v. Quaker Oats Co., 
    978 F.2d 947
    , 955 (7th Cir.
    1992) (examining whether the differences between the
    registered and the modified marks alter the “basic, overall
    commercial impression created on buyers” and stating
    that “[s]o long as the owner continues use of the ‘key
    element’ of the registered mark, courts generally will not
    find abandonment”).
    In both contexts—priority and abandonment—the
    fundamental inquiry is the same: has the original mark
    been so substantially altered such that third parties
    would not expect that presently used mark to be used
    under and protected by the registration.. Our case law
    recognizes that it would be wrong to allow a trademark
    owner to claim priority to a mark that creates a different
    commercial impression from the mark currently in use.
    This same inequity exists when a trademark owner seeks
    to avoid abandonment of the originally registered mark
    even though the current mark is a materially different
    8    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    version. We hold that the same legal standard applies in
    both contexts. Accordingly, when a trademark owner uses
    a modified version of its registered trademark, it may
    avoid abandonment of the original mark only if the modi-
    fied version “create[s] the same, continuous commercial
    impression.”
    B. Standard of Review
    The Supreme Court recently held, in the context of a
    priority dispute, that the “same continuing commercial
    impression” inquiry is a question of fact, thus abrogating
    our practice of viewing this inquiry as a question of law
    subject to de novo review. Hana 
    Fin., 135 S. Ct. at 910
    –
    11 (citing Van 
    Dyne-Crotty, 926 F.2d at 1159
    ). In Hana
    Financial,    the    Supreme      Court   explained that
    “[a]pplication of a test that relies upon an ordinary con-
    sumer’s understanding of the impression that a mark
    conveys falls comfortably within the ken of a jury.” 
    Id. at 911.
    Given our understanding that the same legal analy-
    sis applies in both priority and abandonment cases, there
    is no reason that the standard of review should differ. We
    therefore must review the Board’s factual determination
    for substantial evidence. In doing so, we must ask wheth-
    er a reasonable fact-finder might find that the evidentiary
    record supports the Board’s conclusion. See Consol.
    Edison Co. of N.Y. v. N.L.R.B., 
    305 U.S. 197
    , 229 (1938).
    C. Discussion
    New Millennium’s registered mark is a composite
    mark consisting of the word KELME on the left and an
    image of a paw print on the right.
    Registration No. 1,856,808. As noted above, New Millen-
    nium admits that it no longer uses the exact mark that
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,      9
    S.L.U.
    appears in its registration. Since 2004, New Millennium
    has instead used a modified version of its mark. The
    presence of the KELME and paw print elements, as well
    as the orientation of these elements, did not change. New
    Millennium altered only the font of the KELME element
    and the style of the paw print element.
    The Board found the changes to the mark to be minor
    stylistic alterations. In evaluating the KELME element
    of the mark, the Board noted that “the style shown in the
    registration is relatively non-distinctive, and the style in
    which the letters are now presented is highly convention-
    al.” New Millennium Sports, S.L.U. v. Jack Wolfskin
    Ausrustung Fur Draussen GmbH & Co. KGAA, No.
    91195604, 
    2014 WL 2997637
    , at *5 (T.T.A.B. June 10,
    2014). The Board further recognized that KELME, the
    word element of the mark, was “far more distinctive than
    the lettering in which it is presented” and therefore the
    change in the style of the lettering did not materially
    affect the impression created by the word. 
    Id. With respect
    to the paw print design component of the mark,
    the Board rejected Jack Wolfskin’s arguments that the
    registered mark could be interpreted as something other
    than a paw. 
    Id. (“If the
    design resembles in any way a
    mountain, a volcano, or a setting sun, it does so only in a
    very vague way.”). The Board was also not persuaded
    that the addition of claws to the paw prints materially
    altered the mark because the claws are “a very small
    component” and because “it is common knowledge that an
    animal’s paws are accompanied by claws.” 
    Id. We agree.
    Despite the stylistic modifications, the
    mark that New Millennium currently uses still consists of
    the literal KELME element and the paw print design
    element. The KELME portion still appears in all capital,
    10   JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    block style lettering. The minor adjustment to the font is
    not sufficient to warrant a finding that consumers would
    view these as different marks. Likewise, Jack Wolfskin
    presents no persuasive reason why the alterations to the
    design element change the commercial impression that
    the mark creates. As the Board stated, “[i]t appeared to
    be a paw before, and now it still appears to be a paw.” 
    Id. For these
    reasons, we conclude that the Board’s finding
    that New Millennium did not abandon its registered mark
    by migrating to a modernized version of its mark is sup-
    ported by substantial evidence. A reasonable fact-finder
    could conclude that the new version creates the same
    continuing commercial impression as the registered mark.
    We therefore affirm the Board’s dismissal of Jack
    Wolfskin’s cancellation counterclaim.
    III.   LIKELIHOOD OF CONFUSION
    Whether there is likelihood of confusion between a
    registered mark and a mark for which an application has
    been filed presents an issue of law based on underlying
    facts, namely findings under the DuPont factors. M2
    Software, Inc. v. M2 Commc’ns, Inc., 
    450 F.3d 1378
    , 1381
    (Fed. Cir. 2006). We review the Board’s legal conclusions
    de novo and its factual findings for substantial evidence.
    In re Pacer Tech., 
    338 F.3d 1348
    , 1349 (Fed. Cir. 2003).
    The Board found evidence in the record relevant to
    seven DuPont factors. Specifically, the Board found that
    the similarity of the goods, the similarity of the trade
    channels, and the similarity of the marks pointed to a
    likelihood of confusion, whereas the similarity of the
    buyers and purchasing conditions were either neutral or
    slightly favored finding a likelihood of confusion. In
    addition, the Board decided that the number and nature
    of similar marks in use, the fame of New Millennium’s
    mark, and the absence of actual confusion were neutral
    factors. The Board then balanced these factors and
    concluded that Jack Wolfskin’s mark, “as used in connec-
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,    11
    S.L.U.
    tion with the identified goods, so closely resembles oppos-
    er’s registered mark as to be likely to cause confusion,
    mistake or deception as to the source of applicant’s
    goods.” New Millennium, 
    2014 WL 2997637
    , at *14.
    Neither party asserts that the Board erred by failing
    to consider any of the remaining factors. See M2 Soft-
    
    ware, 450 F.3d at 1382
    (“Neither we nor the board, how-
    ever, are required to consider every DuPont factor.
    Rather we need to consider only the factors that are
    relevant and of record.” (citation omitted)). On appeal,
    Jack Wolfskin asserts that the Board’s likelihood of
    confusion conclusion is erroneous because of a lack of
    substantial evidence supporting two critical factors:
    (1) the similarity of the marks; and (2) the number and
    nature of similar marks in use. We agree.
    A.   Similarity of the Marks
    Our predecessor court instructed that the similarity
    or dissimilarity of marks should be compared “in their
    entireties as to appearance, sound, connotation and
    commercial impression.” 
    DuPont, 476 F.2d at 1361
    .
    “[M]arks must be viewed ‘in their entireties,’ and it is
    improper to dissect a mark when engaging in this analy-
    sis, including when a mark contains both words and a
    design.” In re Viterra Inc., 
    671 F.3d 1358
    , 1362 (Fed. Cir.
    2012). We have also explained that when a mark consists
    of both words and a design, “the verbal portion of the
    mark is the one most likely to indicate the origin of the
    goods to which it is affixed.” CBS Inc. v. Morrow, 
    708 F.2d 1579
    , 1581–82 (Fed. Cir. 1983). These principles do
    not, however, trump our duty to consider marks on a case-
    by-case basis. 
    Viterra, 671 F.3d at 1362
    –63. Finally, the
    Board may “state that, for rational reasons, more or less
    weight has been given to a particular feature of the
    mark.” Packard Press, Inc. v. Hewlett-Packard Co., 
    227 F.3d 1352
    , 1357 (Fed. Cir. 2000). Even so, the touchstone
    of this factor is consideration of the marks in total. Id.;
    12   JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    see also Juice Generation, Inc. v. GS Enters. LLC, No. 14-
    1853, 
    2015 WL 4400033
    , at *5 (Fed. Cir. July 20, 2015)
    (explaining that this factor “merely requires heeding the
    common-sense fact that the message of a whole phrase
    may well not be adequately captured by a dissection and
    recombination”).
    New Millennium’s registered mark consists of two el-
    ements: the KELME component and the paw print de-
    sign. On appeal, Jack Wolfskin argues that the Board
    improperly dissected New Millennium’s mark by overem-
    phasizing the paw print element and minimizing the
    importance of the KELME component. In response, New
    Millennium urges us to accept the Board’s discussion of
    the KELME component as sufficient.
    The Board’s opinion did acknowledge the obligation to
    consider the marks in their entireties and even recognized
    that “the KELME component of [New Millennium]’s mark
    creates a visual and phonetic impression that is absent
    from applicant’s mark.” New Millennium, 
    2014 WL 2997637
    , at *9. But in evaluating the “appearance,
    sound, connotation” of the two marks, the Board discussed
    only the appearance, sound, and connotation of the paw
    print element in each mark, and did not discuss the
    impact of the KELME portion of New Millennium’s mark.
    This is clear from the Board’s statement that “[w]ith
    respect to sound, it is obvious that neither design has any
    phonetic element.” 
    Id. at *10.
    The Board then explained
    that, given the substantial similarities between the paw
    print elements of the two marks, the KELME component
    of the New Millennium mark did not distinguish the
    commercial impression of that mark from the commercial
    impression of Jack Wolfskin’s mark. To support this
    statement, the Board broadly declared that “[c]ompanies
    that use marks consisting of a word plus a logo often
    display their logos alone, unaccompanied by the literal
    portions of their trademarks.” 
    Id. For this
    reason, the
    Board concluded that consumers could interpret Jack
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,   13
    S.L.U.
    Wolfskin’s mark “as a display of [New Millennium]’s
    design apart from [New Millennium]’s word element” and
    accordingly this factor pointed towards a likelihood of
    confusion. 
    Id. We agree
    with Jack Wolfskin that the Board failed to
    adequately account for the presence of the literal, KELME
    component of the New Millennium mark. Contrary to the
    guideposts in our case law, the Board essentially disre-
    garded the verbal portion of New Millennium’s mark and
    found that the two paw print designs were substantially
    similar. This analysis did not consider the marks as a
    whole.
    The Board justified its decision to focus on the paw
    print elements by stating that companies often use the
    design portion of a composite mark as shorthand for their
    brand. We do not opine as to whether such a commercial
    practice of truncating the registered mark could, under
    the right circumstances, support finding a likelihood of
    confusion based on that truncated version. Even so, this
    concept certainly cannot be invoked without supporting
    evidence. The Board’s broad statement alone, which does
    not amount to substantial evidence, cannot warrant
    disregarding the verbal portion of a composite mark. See
    
    Viterra, 671 F.3d at 1366
    (recognizing that emphasis on
    the literal portion of a mark “makes sense given that the
    literal component of brand names likely will appear alone
    when used in text and will be spoken when requested by
    consumers.”).
    New Millennium argues that it provided numerous
    examples in which it displayed the paw print element of
    its mark without the KELME brand name. None of the
    examples in the record, however, conclusively establishes
    that the paw print alone was used for source identifica-
    tion. For example, New Millennium points to its shoe
    boxes where the paw print appears on the top of the shoe
    box without the KELME brand name, but ignores the fact
    14   JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    that the KELME brand name appears on each side of the
    same shoe box. Similarly, New Millennium notes that the
    paw print appears on the sides of several of its soccer
    shoes, but again ignores the KELME brand name on the
    tongue and/or bottom of the same shoes. At bottom,
    neither the Board nor New Millennium has pointed to
    anything in the record that indicates that consumers
    recognize solely the paw print portion of New Millenni-
    um’s registered mark as being associated with New
    Millennium’s products. The Board’s finding lacked sub-
    stantial evidence for minimizing the relevance of the word
    element of New Millennium’s registered trademark.
    Indeed, the Board’s conclusion is even more untenable in
    light of the numerous examples of paw prints as source
    identifiers, discussed below.
    This is not to say that the Board cannot, in appropri-
    ate circumstances, give greater weight to a design compo-
    nent of a composite mark. But, when the Board places
    such heavy emphasis on an oft-used design element, as it
    did in this case, it must provide a rational reason for
    doing so. See In re Comput. Commc’ns, Inc., 
    484 F.2d 1392
    , 1393–94 (CCPA 1973) (holding that the Board did
    not err in focusing on the design portion because the
    Board found the large design portion to be the mark’s
    “most visually prominent feature”). In this respect the
    Board failed and, as a result, its conclusion that this
    factor supports finding a likelihood of confusion is not
    supported by substantial evidence.
    B. Other Marks in Use
    “[E]vidence of third-party use bears on the strength or
    weakness of an opposer’s mark.” Juice Generation, 
    2015 WL 4400033
    , at *3. “The weaker an opposer’s mark, the
    closer an applicant’s mark can come without causing a
    likelihood of confusion and thereby invading what
    amounts to its comparatively narrower range of protec-
    tion.” Id.; see also Palm Bay Imps., Inc. v. Veuve Clicquot
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,     15
    S.L.U.
    Ponsardin Maison Fondee En 1772, 
    396 F.3d 1369
    , 1373
    (Fed. Cir. 2005) (“Evidence of third-party use of similar
    marks on similar goods is relevant to show that a mark is
    relatively weak and entitled to only a narrow scope of
    protection.”).
    Before the Board, Jack Wolfskin presented volumi-
    nous evidence of paw print design elements that have
    been registered and used in connection with clothing, but
    the Board largely discounted these examples. The Board
    gave “little weight” to the third-party registrations “be-
    cause they are not evidence that the marks are in use.”
    New Millennium, 
    2014 WL 2997637
    , at *11. To the
    extent the Board found any of the third-party registra-
    tions supported by evidence of use, the Board largely
    minimized this evidence because it consisted of secondary
    source indicators. In many of the examples that Jack
    Wolfskin provided, the paw-print design was being used
    to identify colleges or high schools and their sports teams,
    rather than identifying an apparel or a sporting goods
    company. As such, the Board concluded that these marks
    “perform the function of secondary source indicators
    rather than conventional marks of apparel companies,”
    and therefore “their impact on the distinctiveness of
    opposer’s apparel trademark is somewhat reduced.” 
    Id. at *12.
    In addition, the Board rejected the relevance of
    another subset of the third-party usage evidence because
    the marks related to “secondary source indicators for
    businesses offering pet-related goods and services.” 
    Id. As to
    the remaining paw-print trademarks, the Board
    focused on the differences between those designs and the
    designs at issue. See New Millennium, 
    2014 WL 2997637
    ,
    at *11 (finding that these marks are “quite different, in
    that four of them have five digits and all of them have
    very prominent claws”). In light of these conclusions, the
    Board found that this factor was neutral.
    We agree with Jack Wolfskin that the Board erred in
    its consideration of this evidence. Jack Wolfskin present-
    16       JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    ed extensive evidence of third-party registrations depict-
    ing paw prints and evidence of these marks being used in
    internet commerce for clothing. 2 The Board too quickly
    dismissed the significance of this evidence. As we recent-
    ly explained in Juice Generation, such extensive evidence
    of third-party use and registrations is “powerful on its
    face,” even where the specific extent and impact of the
    usage has not been established. 
    2015 WL 4400033
    , at *4
    (detailing the extensive use of marks used in connection
    with the food service industry that incorporate the words
    “Peace” and “Love” ). For example, evidence of third-
    party registrations is relevant to “show the sense in which
    a mark is used in ordinary parlance,” 
    id. at *4;
    that is,
    some segment that is common to both parties’ marks may
    have “a normally understood and well-recognized descrip-
    tive or suggestive meaning, leading to the conclusion that
    that segment is relatively weak,” 
    id. In addition,
    evidence
    of third-party use of similar marks on similar goods “can
    show that customers have been educated to distinguish
    between different marks on the basis of minute distinc-
    tions.” 
    Id. at *3
    (internal quotation marks omitted). In
    this case, Jack Wolfskin’s evidence demonstrates the
    ubiquitous use of paw prints on clothing as source identi-
    fiers. Given the volume of evidence in the record, con-
    2  Some of the notable examples of third-party regis-
    tration and use in commerce include the Clemson Univer-
    sity paw print; the Ohio University paw print; the
    University of New Mexico paw print; the Penn State paw
    print; the University of Montana paw print; the Loyola
    University of Chicago paw print; the University of New
    Hampshire paw print; the Wayne State College paw print;
    the Bearpaw brand paw print; the Wolverine brand paw
    print; the Alaskan Hardgear brand paw print; Boyds
    Collection brand paw print; the Chester Cheetah mark for
    Cheetos snack foods, which incorporates a paw print; the
    Garanimals brand mark, which incorporates a paw print.
    JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,   17
    S.L.U.
    sumers are conditioned to look for differences between
    paw designs and additional indicia of origin to determine
    the source of a given product. Jack Wolfskin’s extensive
    evidence of third-party uses and registrations of paw
    prints indicates that consumers are not as likely confused
    by different, albeit similar looking, paw prints. The
    Board’s conclusion that this factor was neutral is not
    supported by substantial evidence.
    *****
    New Millennium cannot escape the fact that the
    KELME element of its registered mark is the dominant
    portion of the mark. By narrowly focusing on the paw
    print element of the registered mark, the Board failed to
    appreciate that the KELME element is unlike anything
    that appears in Jack Wolfskin’s applied-for mark. The
    dissimilarity of the marks is further confirmed by the
    considerable evidence of third-party registration and
    usage of marks in commerce that depict paw prints on
    clothing. This evidence indicates that the paw print
    portion of New Millennium’s mark is relatively weak.
    Balancing the factors, the Board’s determination that
    Jack Wolfskin’s mark would likely cause consumer confu-
    sion cannot be sustained.
    CONCLUSION
    Although we affirm the Board’s rejection of Jack
    Wolfskin’s cancellation counterclaim, we conclude that
    the dissimilarity of the marks and the many third-party
    marks incorporating paw prints require us to find that
    there is no likelihood of confusion between the two marks.
    We therefore reverse the Board’s decision sustaining New
    Millennium’s opposition and remand to the Board for
    further consideration in light of this opinion.
    COSTS
    No costs.
    18   JACK WOLFSKIN AUSRUSTUNG   v. NEW MILLENNIUM SPORTS,
    S.L.U.
    AFFIRMED-IN-PART, REVERSED-IN-PART, and
    REMANDED