In Re Miracle Tuesday, LLC , 695 F.3d 1339 ( 2012 )


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  •   United States Court of Appeals
    for the Federal Circuit
    __________________________
    IN RE MIRACLE TUESDAY, LLC
    __________________________
    2011-1373
    (Serial No. 77/649,391)
    __________________________
    Appeal from the United States Patent and Trademark
    Office, Trademark Trial and Appeal Board.
    _________________________
    Decided: October 4, 2012
    _________________________
    PAUL D. SUPNIK, of Beverly Hills, California, argued
    for appellant.
    CHRISTINA J. HIEBER, Associate Solicitor, United
    States Patent and Trademark Office, of Alexandria,
    Virginia, argued for appellee. With her on the brief were
    RAYMOND T. CHEN, Solicitor, and ROBERT J. MCMANUS,
    Associate Solicitor. Of counsel was THOMAS V. SHAW.
    __________________________
    Before RADER, Chief Judge, LINN and O’MALLEY, Circuit
    Judges.
    O’MALLEY, Circuit Judge.
    Miracle Tuesday LLC (“Miracle Tuesday”) appeals
    from a decision of the Trademark Trial and Appeal Board
    IN RE MIRACLE                                           2
    (“the Board”) which affirmed the trademark examining
    attorney’s refusal to register the mark JPK PARIS 75 and
    design on grounds that it is primarily geographically
    deceptively misdescriptive under Section 2(e)(3) of the
    Lanham Act, 
    15 U.S.C. § 1052
    (e)(3). In re Miracle Tues-
    day, LLC, No. 77649391, 2011 TTAB LEXIS 32 (TTAB
    Feb. 3, 2011) (“Board Decision”). Because we find that the
    Board’s refusal to register the mark was based on sub-
    stantial evidence, we affirm.
    BACKGROUND
    On January 14, 2009, Miracle Tuesday filed an intent-
    to-use application with the United States Patent and
    Trademark Office (“PTO”) seeking to register the mark
    JPK PARIS 75 and design, shown below, in connection
    with sunglasses, wallets, handbags and purses, travel
    bags, suitcases, belts, and shoes 1 :
    The letters “JPK” are the initials of Jean-Pierre Klifa,
    who is the manager of Miracle Tuesday and designer of
    the goods at issue.
    1   Miracle Tuesday disclaimed the exclusive right to
    use “Paris.”
    3                                              IN RE MIRACLE
    In support of its registration application, Miracle
    Tuesday submitted four articles discussing consumer
    purchasing decisions and a declaration from Mr. Klifa.
    The declaration explained that Mr. Klifa is a French
    citizen who lived in Paris for approximately twenty-two
    years until 1986, and currently resides in the United
    States. Although Mr. Klifa indicated in his declaration
    that he exhibited at two trade shows while in Paris, he
    did not identify which goods he exhibited at those shows.
    On July 23, 2009, the examining attorney issued a fi-
    nal decision refusing to register the mark on grounds that
    it was “primarily geographically deceptively misdescrip-
    tive” in relation to the identified goods. 2 In that decision,
    the examiner found that: (1) the primary significance of
    the mark is Paris; and (2) Paris is famous for fashion,
    including the types of fashion accessories identified in the
    application. Turning to the origin of the goods identified,
    the examiner found that the only connection between the
    goods and Paris is that Mr. Klifa is Parisian. Because
    Paris is famous as a source of the goods at issue, the
    examiner found that the misrepresentation regarding the
    geographic origin of the goods would be a material factor
    in a significant portion of the relevant consumers’ decision
    to buy the goods.
    Miracle Tuesday appealed the examiner’s refusal to
    register the mark to the Board and the Board affirmed.
    First, the Board pointed to several undisputed facts,
    including that: (1) Paris is a well-known city in France
    and is a center of design and fashion; (2) Miracle Tuesday
    is a Nevada limited liability company with its primary
    2   The phrase “primarily geographically deceptively
    misdescriptive” is a statutory term of art in the trade-
    mark context; we neither take responsibility for nor
    endorse the split infinitives or absence of necessary com-
    mas its use in this opinion requires.
    IN RE MIRACLE                                             4
    place of business in Miami, Florida; (3) Mr. Klifa once
    lived in Paris but now resides in the United States, and
    has done so for some time; and (4) Mr. Klifa designs
    handbags.
    Turning to the primary significance of the mark, the
    Board rejected Miracle Tuesday’s argument that the
    monogram “JPK” is the dominant portion of the mark.
    Instead, the Board found that the designation “Paris” in
    the mark “serves to identify the geographic origin of the
    products” such that “consumers seeing applicant’s prod-
    ucts bearing applicant’s mark will assume that such
    products have a connection with Paris either in their
    manufacture or their design.” Board Decision, 2011
    TTAB LEXIS 32, at *5. The Board also rejected Miracle
    Tuesday’s argument that there is a connection between
    the goods identified in the application and Paris solely
    because Mr. Klifa once lived and worked there. Finally,
    the Board found the evidence sufficient to show that a
    substantial portion of relevant consumers would be de-
    ceived into believing that the goods came from Paris.
    Accordingly, the Board found that the mark JPK PARIS
    75 and design is primarily geographically deceptively
    misdescriptive as applied to Miracle Tuesday’s goods.
    Miracle Tuesday timely appealed to this court. We
    have jurisdiction under 
    28 U.S.C. § 1295
    (a)(4)(B).
    DISCUSSION
    Under Section 2(e)(3) of the Lanham Act, a mark may
    not be registered on the principal register if the mark,
    “when used on or in connection with the goods of the
    applicant is primarily geographically deceptively misde-
    scriptive of them.” 
    15 U.S.C. § 1052
    (e)(3). A mark is
    primarily geographically deceptively misdescriptive, and
    thus barred from registration, if: (1) “the primary signifi-
    cance of the mark is a generally known geographic loca-
    5                                            IN RE MIRACLE
    tion”; (2) “the consuming public is likely to believe the
    place identified by the mark indicates the origin of the
    goods bearing the mark, when in fact the goods do not
    come from that place”; and (3) “the misrepresentation was
    a material factor in the consumer’s decision” to purchase
    the goods. In re Cal. Innovations, Inc., 
    329 F.3d 1334
    ,
    1341 (Fed. Cir. 2003).
    Whether a mark is primarily geographically decep-
    tively misdescriptive is a question of fact. In re Save
    Venice N.Y., Inc., 
    259 F.3d 1346
    , 1351 (Fed. Cir. 2001).
    We review the Board’s factual findings for substantial
    evidence. In re Pacer Tech., 
    338 F.3d 1348
    , 1349 (Fed.
    Cir. 2003) (citation omitted). Substantial evidence is
    defined as “more than a mere scintilla” and “such relevant
    evidence as a reasonable mind would accept as adequate
    to support a conclusion.” 
    Id.
     (citation and internal quota-
    tion marks omitted).
    On appeal, Miracle Tuesday does not challenge the
    Board’s finding that the primary significance of the mark
    is Paris; it focuses its arguments on the second and third
    elements of the Board’s Section 2(e)(3) refusal. Specifi-
    cally, Miracle Tuesday argues that the Board erred when
    it: (1) found that the goods identified do not originate in
    Paris even though the designer of the goods has signifi-
    cant ties to Paris; (2) applied the wrong standard in
    concluding that the use of the word Paris in the mark is
    deceptive; and (3) failed to consider certain material
    evidence in reaching its decision. For the reasons ex-
    plained below, each of these arguments lacks merit.
    A. Association & Origin
    Because Miracle Tuesday does not challenge the
    Board’s determination as to the first element of a Section
    2(e)(3) refusal, we turn directly to the second element
    which asks “whether the public would reasonably identify
    IN RE MIRACLE                                             6
    or associate the goods sold under the mark with the
    geographic location contained in the mark.” Save Venice
    N.Y., 
    259 F.3d at 1353-54
    . This element involves two
    questions: (1) whether there is an association between the
    goods and the place identified (“a goods/place associa-
    tion”); and (2) whether the applicant’s goods in fact come
    from that place. See Cal. Innovations, 
    329 F.3d at 1341
    (the PTO must ask whether “the consuming public is
    likely to believe the place identified by the mark indicates
    the origin of the goods bearing the mark, when in fact the
    goods do not come from that place”).
    As to the first inquiry, the examiner has the initial
    burden of submitting evidence to establish a goods/place
    association and the burden then shifts to the applicant to
    rebut this showing with evidence “that the public would
    not actually believe the goods derive from the geographic
    location identified by the mark.” Save Venice N.Y., 
    259 F.3d at 1354
    . This court has explained that the PTO is
    not required to establish an “actual goods/place associa-
    tion.” Pacer Tech., 
    338 F.3d at 1351
     (emphasis added).
    Instead, the PTO need only “establish ‘a reasonable
    predicate for its conclusion that the public would be likely
    to make the particular goods/place association on which it
    relies.’” 
    Id.
     (emphasis in original) (quoting In re Loew’s
    Theatres, Inc., 
    769 F.2d 764
    , 768 (Fed. Cir. 1985)).3
    Where, as here, a case involves goods rather than ser-
    vices, we have held that “the goods-place association often
    requires little more than a showing that the consumer
    identifies the place as a known source of the product.” In
    3    Although Loew’s Theatres was decided before the
    Lanham Act was amended to incorporate relevant provi-
    sions of the North American Free Trade Agreement
    (“NAFTA”), this court, in Pacer Technology, indicated that
    “the reasoning and holding in Loew’s remains unchanged
    by NAFTA.” Pacer Tech., 
    338 F.3d at
    1351 n.1.
    7                                             IN RE MIRACLE
    re Les Halles de Paris J.V., 
    334 F.3d 1371
    , 1374 (Fed. Cir.
    2003) (citations omitted).     Therefore, to establish a
    goods/place association, “the case law permits an infer-
    ence that the consumer associates the product with the
    geographic location in the mark because that place is
    known for producing the product.” 
    Id.
     (citation omitted).
    It is undisputed that Paris is famous for fashion and
    fashion accessories, including the types of goods identified
    in the application. Because relevant purchasers are likely
    to think of Paris as a known source for fashion accesso-
    ries, we agree with the Board that there is sufficient
    evidence of a goods/place association between Paris and
    the goods listed.
    The second inquiry under this element asks whether
    the goods will in fact originate from the named place. It is
    undisputed that goods may be deemed to originate in a
    geographic location if they are manufactured there.
    Origin can be predicated on factors other than manufac-
    ture, however, where the circumstances justify such a
    connection. See Corporacion Habanos S.A. v. Anncas Inc.,
    
    88 U.S.P.Q.2d 1785
    , 1791 (TTAB 2008) (“[A] product may
    be found to originate from a place, even though the prod-
    uct is manufactured elsewhere.”). Indeed, at oral argu-
    ment, the PTO conceded that, in appropriate
    circumstances, “the place of design can be enough.” See
    Oral Argument at 17:58, available at http://www.
    cafc.uscourts.gov/oral-argument-recordings/2011-1373/all.
    Similarly, if the goods contain a main component or
    ingredient from the place identified in the mark, that
    connection can be sufficient to find that the goods origi-
    nate from that place. See Corporacion Habanos, 88
    U.S.P.Q.2d at 1791 (“[A] product might be found to origi-
    nate from a place where the main component or ingredi-
    ent was made in that place.” (citation omitted)); see also
    Loew’s Theatres, 
    769 F.2d at 768
     (evidence that tobacco is
    IN RE MIRACLE                                              8
    “one in a short list of principal crops” in Durango, Mexico
    was sufficient to show that the public would likely believe
    that chewing tobacco under the mark DURANGO origi-
    nated there). And, a product might be found to originate
    from a place where the applicant has its headquarters or
    research and development facilities, even when the manu-
    facturing facilities are elsewhere. See In re Nantucket
    Allserve, Inc., 
    28 U.S.P.Q.2d 1144
    , 1145-46 (TTAB 1993)
    (identifying Nantucket as the principal origin of appli-
    cant’s products, even though the goods were manufac-
    tured elsewhere, because the company had its
    headquarters and research and development center on
    Nantucket).
    Here, the Board found that Miracle Tuesday is located
    in Miami, its designer is not located in Paris, and the
    goods at issue are designed and produced somewhere
    other than Paris. The Board rejected Miracle Tuesday’s
    argument that the fact that Mr. Klifa lived and worked in
    Paris for twenty-two years is sufficient to justify the
    conclusion that the products originated in Paris. The
    Board concluded that, “[a]lthough Mr. Klifa may still
    consider himself to be Parisian, the goods that applicant
    seeks to register are not because there is no current
    connection between the goods and Paris.” Board Decision,
    2011 TTAB LEXIS 32, at *7.
    On appeal, Miracle Tuesday argues that the Board
    took an overly restrictive view of the word “originates.”
    Specifically, it argues that its designer – Mr. Klifa – has a
    significant connection with Paris and that customers are
    more interested in the designer’s origin than the origin of
    the goods themselves. In support of this position, Miracle
    Tuesday references red carpet events where interviewers
    ask celebrities “who are you wearing?” rather than “where
    was it made?”
    9                                             IN RE MIRACLE
    Regardless of whether today’s consumers consider and
    care about the origin of the designer of the goods they
    purchase, the relevant inquiry under the statute is
    whether there is a connection between the goods and
    Paris – not between the designer and Paris. See 
    15 U.S.C. § 1052
    (e)(3) (a mark is not registrable if, “when used on or
    in connection with the goods of the applicant is primarily
    geographically deceptively misdescriptive of them”) (em-
    phasis added). Accordingly, the fact that Mr. Klifa lived
    in Paris over twenty-five years ago is insufficient to
    establish that the goods to now be marketed under the
    proposed mark originate there. On this record, there is no
    evidence that Mr. Klifa’s activities while he lived in Paris
    had anything to do with designing handbags or the other
    goods identified in the application. Nor is there any
    evidence that Mr. Klifa exhibited any of the types of goods
    at issue at the Parisian trade shows he attended. Given
    the statutory focus on the geographic origin of the goods,
    Miracle Tuesday’s attempts to shift the inquiry to the
    historical origin of the designer must fail.
    Although there is support for the proposition that
    goods need not be manufactured in the named place to
    originate there – and we do not endorse application of a
    contrary rule here – it is clear that there must be some
    other direct connection between the goods and the place
    identified in the mark (e.g., the place identified is where
    the goods are designed or distributed, where the applicant
    is headquartered or has its research and development
    facility, or where a main component of the good origi-
    nates). Here, Miracle Tuesday concedes that the goods
    identified in the application do not originate in Paris.
    Indeed, at oral argument, counsel for Miracle Tuesday
    revealed that the goods at issue “are made outside the
    United States, in Asia.” See Oral Argument at 3:03. The
    record further reveals that the goods identified are de-
    IN RE MIRACLE                                             10
    signed in Miami, and there is no evidence that a main
    component of the goods, or even any component of the
    goods, comes from Paris. Simply put, there is no evidence
    of a current connection between the goods and Paris.
    Given that Paris is a world-renowned fashion center
    and is well-known as a place where fashion goods and
    accessories are designed, manufactured, and sold, we
    agree with the Board that “the relevant public would
    likely believe that [Miracle Tuesday’s] products offered
    under the mark JPK PARIS 75 and design come from
    Paris (i.e., that a goods/place association exists) when in
    fact the goods will not come from that place.” Board
    Decision, 2011 TTAB LEXIS 32, at *8. 4 And, because
    there is no evidence showing a direct connection between
    Miracle Tuesday’s goods and Paris, the Board properly
    found that there is insufficient evidence that the goods
    originate in Paris.
    B. Materiality
    The third and final element of a Section 2(e)(3) refusal
    focuses on materiality and asks “whether a substantial
    portion of the relevant consumers is likely to be deceived”
    by the mark’s misrepresentation of a goods/place associa-
    tion. In re Spirits Int’l, N.V., 
    563 F.3d 1347
    , 1353 (Fed.
    Cir. 2009). In Spirits International, we held that, “to
    establish a prima facie case of materiality there must be
    some indication that a substantial portion of the relevant
    consumers would be materially influenced in the decision
    to purchase the product or service by the geographic
    meaning of the mark.” 
    Id. at 1357
    . We have also held
    that “the PTO may raise an inference in favor of material-
    4    The record does not disclose the significance of the
    number “75” in the proposed mark. Neither party argues
    that its presence is meaningful to the Board’s Section
    2(e)(3) rejection.
    11                                            IN RE MIRACLE
    ity with evidence that the place is famous as a source of
    the goods at issue.” Les Halles de Paris, 
    334 F.3d at 1374
    . 5
    Applying these standards, the Board stated that:
    Because we have determined that the primary
    significance of Paris to the relevant public is the
    geographic place, and in view of the renown and
    reputation of fashion designs originating in Paris,
    we may infer that at least a substantial portion of
    consumers who encounter applicant’s mark fea-
    turing the word “Paris” on applicant’s products
    are likely to be deceived into believing that those
    products come from or were designed in Paris.
    Board Decision, 2011 TTAB LEXIS 32, at *9. Accord-
    ingly, the Board found that the materiality factor was
    satisfied.
    On appeal, Miracle Tuesday argues that the Board
    applied the wrong standard for materiality and that it
    was required to find that the use of the word Paris “does
    in fact deceive the public.” Appellant’s Br. 14. According
    to Miracle Tuesday, because there is a substantial connec-
    tion between Mr. Klifa and Paris, the reference to Paris in
    the mark is a true statement that is not deceptive. Mira-
    cle Tuesday’s arguments are without merit.
    First, Miracle Tuesday points to our decision in Les
    Halles de Paris as evidence that the PTO “must show
    some heightened standard to show a false association
    between the services and the relevant geographic loca-
    5 Although Les Halles de Paris was decided before
    this court clarified the materiality standard in Spirits
    International, nothing in Spirits International suggests
    that there must be actual evidence of deception rather
    than an inference of materiality drawn from the evidence.
    IN RE MIRACLE                                              12
    tion.” Appellant’s Reply 6. Miracle Tuesday’s argument
    is fundamentally flawed, however, given that this case
    involves a mark to identify goods whereas Les Halles de
    Paris involved an application to register a mark for res-
    taurant services. Indeed, in Les Halles de Paris, we
    specifically recognized that: (1) “the standard under
    section 2(e)(3) is more difficult to satisfy for service marks
    than for marks on goods”; and (2) “geographic marks in
    connection with services are less likely to mislead the
    public than geographic marks on goods.” Les Halles de
    Paris, 
    334 F.3d at 1374
    . 6 Given these differences, we
    drew a distinction between the evidence necessary to give
    rise to an inference of materiality for goods and that
    necessary to give rise to that same inference for services.
    Although for goods, evidence that a place is famous as a
    source of those goods is sufficient to raise an inference of
    materiality, when dealing with service marks, we held
    that there must be a heightened association between the
    services and geographic location. See 
    id. at 1374-75
     (“In
    other words, an inference of materiality arises in the
    event of a very strong services-place association. Without
    a particularly strong services-place association, an infer-
    ence would not arise, leaving the PTO to seek direct
    evidence of materiality.”). Because this case involves
    goods – rather than services – Miracle Tuesday’s reliance
    6   In Les Halles de Paris, we explained that a “cus-
    tomer typically receives services, particularly in the
    restaurant business, at the location of the business.” 
    334 F.3d at 1373
    . “Having chosen to come to that place for the
    services, the customer is well aware of the geographic
    location of the service. This choice necessarily implies
    that the customer is less likely to associate the services
    with the geographic location invoked by the mark rather
    than the geographic location of the service, such as a
    restaurant.” 
    Id.
    13                                            IN RE MIRACLE
    on the portion of Les Halles de Paris creating a height-
    ened standard for service marks is misplaced. 7
    As the Board correctly noted, the fact that Paris is
    famous for fashion and design gives rise to an inference
    that a substantial portion of relevant customers would be
    deceived into thinking the goods identified came from
    Paris. Miracle Tuesday points to no evidence that would
    rebut this inference. Instead, as noted above, Miracle
    Tuesday maintains that customers care more about the
    origin of the designer than the origin of the goods and
    seems to argue that, where the mark involves a fashion
    designer, it should be treated as a service mark, with an
    attendant heightened level of materiality required. See
    Appellant’s Br. 16 (“The relationship of the designer to
    Paris [is] not so far from a service performed by the
    designer, much as a restaurant service where a height-
    ened materiality test is required.”). Miracle Tuesday cites
    no authority for this proposition and ignores the fact that
    its application for registration is directed to goods, not
    services. Because our analysis must focus on the informa-
    tion provided in the application, Mr. Klifa’s early years in
    7  Miracle Tuesday also argues that “the effect of
    NAFTA was to impose a heightened materiality test” such
    that “a mark may only be rejected if there is true fraud or
    deceptiveness in the mark.” Appellant’s Br. 12. Although
    Miracle Tuesday is correct that the materiality prong of
    the Section 2(e)(3) inquiry was added after NAFTA,
    nothing contained therein or in our subsequent case law
    suggests that there must be actual evidence of deception
    rather than an inference from the evidence. Indeed, this
    court’s decision in California Innovations, which recog-
    nized that NAFTA amended the Lanham Act to add a
    materiality inquiry, predates our decision in Les Halles de
    Paris where we said that the PTO can raise an inference
    of materiality with evidence that the place identified in
    the mark is famous as a source of the goods at issue. Les
    Halles de Paris, 
    334 F.3d at 1374
    .
    IN RE MIRACLE                                              14
    Paris are effectively irrelevant, and certainly insufficient
    to overcome a proper inference of materiality.
    For all of these reasons, we agree with the Board that
    the geographic misrepresentation in the mark is material
    and would deceive a substantial portion of the relevant
    consumers regarding the source of the goods outlined in
    the application.
    C. Evidentiary Issue
    Finally, Miracle Tuesday argues the Board failed to
    consider certain scholarly articles it submitted regarding
    consumer purchasing decisions and “country of origin”
    issues. Because the Board did not specifically refer to the
    articles in its decision, Miracle Tuesday assumes that
    they were not considered. According to Miracle Tuesday,
    the articles “show that customers are not necessarily
    concerned about the country of origin or country of manu-
    facture of a product, but other features of the product,
    which in this particular instance arguably includes
    ‘source’ of the designer, or ‘origin’ of the designer . . . .”
    Appellant’s Br. 24.
    In response, the PTO argues that the articles “are ir-
    relevant to the proper statutory inquiry of whether the
    goods come from the place named by the mark” and thus
    the Board “had no obligation to address them in its deci-
    sion.” Appellee’s Br. 15, n.7. The PTO further argues
    that the Board fully considered Miracle Tuesday’s theory
    that goods need not be manufactured in a place to origi-
    nate there. We agree with the PTO on both points.
    First, as previously discussed, the relevant inquiry
    under the statute focuses on the origin of the goods – not
    the origin of the designer. Second, the mere fact that the
    Board did not recite all of the evidence it considered does
    not mean the evidence was not, in fact, reviewed. See
    15                                            IN RE MIRACLE
    Plant Genetic Sys., N.V. v. Dekalb Genetics Corp., 
    315 F.3d 1335
    , 1343 (Fed. Cir. 2003) (“We presume that a fact
    finder reviews all the evidence presented unless he explic-
    itly expresses otherwise.”) (citation and internal quotation
    marks omitted). And, as the PTO argues, it is clear that
    the Board fully considered Miracle Tuesday’s theory of the
    word “originate.” See Board Decision, 2011 TTAB LEXIS
    32, at *6-7 (considering and rejecting the argument that,
    “because the creative force behind applicant’s products
    lived and worked in Paris for 23 years, the Board should
    consider the design of applicant’s products as having
    originated in Paris”). Accordingly, we find that Miracle
    Tuesday’s evidentiary challenge lacks merit.
    CONCLUSION
    For the foregoing reasons, and because we find that
    Miracle Tuesday’s remaining arguments are without
    merit, we affirm the Board’s refusal to register the mark
    JPK PARIS 75 and design under Section 2(e)(3).
    AFFIRMED