American Lava Corp. v. Multronics, Inc.

461 F.2d 836, 59 C.C.P.A. 1127, 174 U.S.P.Q. (BNA) 107
CourtCourt of Customs and Patent Appeals
DecidedJune 8, 1972
DocketNo. 8652
StatusPublished
Cited by8 cases

This text of 461 F.2d 836 (American Lava Corp. v. Multronics, Inc.) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Lava Corp. v. Multronics, Inc., 461 F.2d 836, 59 C.C.P.A. 1127, 174 U.S.P.Q. (BNA) 107 (ccpa 1972).

Opinions

Rich, Actmg Ohief Judge.

This appeal is from the decision of the Trademark Trial and Appeal Board, 161 USPQ 164, adhered to on reconsideration, granting appellee’s petition to cancel appellant’s registration1 of MULTI-CAP as a trademark for capacitors. Appellee’s petition for cancellation asserts that it is the owner of the unregistered trademarks MULTI-CAP and MULTI-CAP for multi-tap capacitors, that it adopted and used these marks “long prior” to the date of first use claimed in appellant’s registration,2 that it had “continuously used” 'both trademarks since the date it adopted them, and that the concurrent use of appellant’s trademark and appellee’s trademarks is likely to result in confusion, mistake, or deception. We affirm.

[1129]*1129Appellant has used its mark on multi-Zayer, miniaturized, block-type ceramic capacitors, whereas appellee has used the mark on multi-tap capacitors of various internal configurations but all of relatively gigantic size. One capacitor unit sells for $7,455. To say that the goods of the parties “are the same,” as appellee asserted, is somewhat like saying that toothpicks and telephone poles are the same because they are both pieces of wood. Nevertheless, we agree with the board that, because

The description of goods as set forth- in the registration under attach [namely, “CAPACITORS”] comprehends the goods of petitioner * * *, the goods of the parties must be considered substantially the same. [Emphasis ours.]

Furthermore, (1) appellant’s mark is identical to one of appellee’s marks, and appellant’s mark and appellee’s other mark are practicably indistinguishable, and (2) appellant concedes priority in appellee.

Appellant’s argument is essentially this: since petitioner in a cancellation action must prove that it is actually using any trademarks on which it relies at the time it files the petition for cancellation and since appellee concedes that it had not “used” (in the trademark sense) the marks on which it relies for over two years at the time it filed the petition in this case, the board erred in granting the petition. Appellant relies principally on Old Monk Olive Oil Co. v. Southwestern Coca-Cola Bottling Co., 28 CCPA 1091, 118 F.2d 1015, 49 USPQ 192 (1941). There being no dispute about the facts, we are presented with a question of law.

Appellee submits on the record which contains, however, its memorandum in opposition to appellant’s request for reconsideration before the board, in which appellant made the same argument, based on the same principal authority, it is making here. In its memorandum ap-pellee relied principally upon the opinion of Assistant Commissioner Leeds in Grove Laboratories, Inc. v. Wolf, 115 USPQ 416 (1957), which stated that the Old Monk case “proceeded under the 1905 Act which contained no specific provision concerning excusable nonuse, and the language of the decision is not controlling in a proceeding under the 1946 Act.” According to Assistant Commissioner Leeds,

Ordinarily, a petitioner for cancelation must show that he is using the mart at the time his petition is filed if the petition, as here, alleges abandonment. This, however, is not and cannot be an inflexible rule of law, although some of the language of the Commissioner in the Arrow case [Arrow Importing Co. v. Driesen, 74 USPQ 66 (1947), opinion by First Assistant Commissioner Frazer applying the Old Monh doctrine] * * * might mislead the reader into the belief that it is.

The board, however, did not rely on the Grove opinion. Because its opinion on reconsideration is not reported, we reproduce the relevant portions therefrom:

[1130]*1130It is a fundamental concept in the law of trademarks that prior use of a mark, unless abandoned, will vitiate any claim to an exclusive right to the use of that mark by a later user. See: Columbia Mill Co. v. Alcorn 150 US 460; 14 S. Ct. 151 (1893); Field Enterprises Educational Corporation v. Core Industries, Incorporated, 161 USPQ 243 (DC NY, 1969). That is to say, non-use, without abandonment, does not mean that the right to use has been destroyed as a matter of law. In the particular case, albeit petitioner had not used “MULTICAP” as a mark for its goods for a period in excess of two years, the evidence indicated no intent to abandon the said mark. As indicated by Justice Holmes in Beech-Nut Packing Co. v. P. Lorillard 273 US 629; 47 S. Ct. 481 (1926) this non-use without abandonment “does not end at once the preferential right of the proprietor to try it again upon goods of the same class with improvements that renew the proprietor’s hopes”.
In the Old Monk case there was no evidence submitted concerning “intent”. In that ease, the party relied upon evidence previously taken in a prior suit between the parties, evidence relating to matters five years prior to the institution of the second suit. That case is clearly distinguishable because we do have evidence which clearly shows no intent to abandon.
Since petitioner’s prior right to use “MULTICAP” was not lost at the time petitioner filed its petition for cancelation, and since respondent’s registration is inimical to petitioner’s right to use “MULTICAP” for capacitors, petitioner is necessarily damaged by respondent’s registration.

Opinion

1. THE TJSE-AT-THE-TIME-OE-PETITION DOCTRINE

Old Monk was, as Assistant Commissioner Leeds pointed out, a case decided under the 1905 Act. The Old Monk Olive Oil Company had sought cancellation of the appellee’s registration of “Old Monk” for various soft drinks on the ground that it was “invalid under the confusion in trade clause of section 5 of said trademark act.” It offered' no fresh evidence, relying instead on testimony and exhibits introduced five years earlier in an opposition proceeding between the same parties and on an official copy of an application, of its own then pending in the Patent Office. However, this court refused to consider the application for reasons which are not relevant here. The remaining evidence it found insufficient to establish that appellant had been injured by appellee’s registration, answering in the affirmative the question “whether, in order for appellant to succeed, it was incumbent upon it to establish use of its trade-mark upon * * * [its goods] on or about the filing date of its petition.” Since such proof was clearly lacking, this court affirmed the decision of the Commissioner refusing cancellation. Finally, in a paragraph upon which appellant has placed great emphasis, this court stated;

In conclusion we would observe that no question of abandonment by appellant of its mark is here involved, but only the question of its use on or about the time of the filing of its petition for cancellation. If it was not using its mark at [1131]*1131that time, it was not injured by the existence of appellee’s registration. [Emphasis ours.]

In evaluating the present strength, of the holding in the Old Monk

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461 F.2d 836, 59 C.C.P.A. 1127, 174 U.S.P.Q. (BNA) 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-lava-corp-v-multronics-inc-ccpa-1972.