Bacardi and Company Limited v. United States Patent & Trademark Office

104 F.4th 527
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 13, 2024
Docket22-1659
StatusPublished
Cited by2 cases

This text of 104 F.4th 527 (Bacardi and Company Limited v. United States Patent & Trademark Office) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bacardi and Company Limited v. United States Patent & Trademark Office, 104 F.4th 527 (4th Cir. 2024).

Opinion

USCA4 Appeal: 22-1659 Doc: 33 Filed: 06/13/2024 Pg: 1 of 16

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 22-1659

BACARDI & COMPANY LIMITED; BACARDI USA, INC.,

Plaintiffs – Appellants,

v.

UNITED STATES PATENT & TRADEMARK OFFICE; KATHI VIDAL, in her official capacity as the Director of the United States Patent and Trademark Office,

Defendants – Appellees.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. Liam O’Grady, Senior District Judge. (1:21-cv-01441-LO-IDD)

Argued: March 7, 2023 Decided: June 13, 2024

Before RICHARDSON and RUSHING, Circuit Judges, and MOTZ, Senior Circuit Judge.

Reversed and remanded by published opinion. Judge Rushing wrote the opinion, in which Judge Richardson and Senior Judge Motz joined.

ARGUED: David Meir Zionts, COVINGTON & BURLING, LLP, Washington, D.C., for Appellants. Nicholas Steven Crown, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellees. ON BRIEF: Michael C. Lynch, Damon W. Suden, KELLEY DRYE & WARREN, LLP, New York, New York, for Appellants. Brian M. Boynton, Principal Deputy Assistant Attorney General, Daniel Tenny, Civil Division, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C.; Thomas W. Krause, Solicitor, Christina J. Hieber, Senior Counsel for Trademark Policy and Litigation, Mary USCA4 Appeal: 22-1659 Doc: 33 Filed: 06/13/2024 Pg: 2 of 16

Beth Walker, Associate Solicitor, UNITED STATES PATENT AND TRADEMARK OFFICE, Alexandria, Virginia; Jessica D. Aber, United States Attorney, OFFICE OF THE UNITED STATES ATTORNEY, Richmond, Virginia, for Appellees.

2 USCA4 Appeal: 22-1659 Doc: 33 Filed: 06/13/2024 Pg: 3 of 16

RUSHING, Circuit Judge:

Plaintiffs Bacardi & Company Limited and Bacardi USA, Inc. (collectively,

Bacardi) claim that the Director of the United States Patent and Trademark Office (PTO)

violated Section 9 of the Lanham Act, 15 U.S.C. § 1059, and the PTO’s own regulations

by purporting to renew a trademark registration ten years after it expired. Bacardi sued

under the Administrative Procedure Act (APA), 5 U.S.C. § 702, to set aside the allegedly

unlawful agency action. The district court believed the Lanham Act precluded judicial

review under the APA and so dismissed Bacardi’s lawsuit for lack of subject matter

jurisdiction. We conclude that the Lanham Act does not foreclose an APA action for

judicial review of the PTO’s compliance with statutes and regulations governing trademark

registration renewal. We therefore reverse the district court’s judgment.

I.

Underlying this appeal is a long-running trademark ownership dispute. From at

least the 1930s, José Arechabala, S.A., a Cuban corporation owned principally by members

of the Arechabala family, produced rum that it exported to the United States under the

registered trademark HAVANA CLUB. In 1960, Cuba’s Communist government seized

and expropriated Arechabala’s assets without compensation. See Havana Club Holding,

S.A. v. Galleon S.A., 203 F.3d 116, 119–120 (2d Cir. 2000). By 1974, Arechabala’s U.S.

trademark registrations for HAVANA CLUB rum had expired, after which Empresa

Cubana Exportadora de Alimentos y Productos Varios—a company owned by the Cuban

government and doing business as Cubaexport—registered the HAVANA CLUB

trademark in the United States for itself. See Empresa Cubana Exportadora de Alimentos

3 USCA4 Appeal: 22-1659 Doc: 33 Filed: 06/13/2024 Pg: 4 of 16

y Productos Varios v. U.S. Dep’t of the Treasury, 638 F.3d 794, 797 & n.2 (D.C. Cir. 2011).

Years later, Arechabala sold its interest in the mark to Bacardi, which filed its own

application to register the HAVANA CLUB mark and petitioned the PTO to cancel

Cubaexport’s registration. The PTO denied Bacardi’s application because of Cubaexport’s

preexisting registration, and the Trademark Trial and Appeal Board (TTAB) denied

Bacardi’s cancellation petition. Bacardi then filed a civil action in the United States

District Court for the District of Columbia challenging the TTAB’s denial of cancellation.

See 15 U.S.C. § 1071(b) (authorizing judicial review). That lawsuit, filed in 2004, remains

pending. See Bacardi & Co. v. Empresa Cubana Exportadora de Alimentos y Productos

Varios, No. 1:04-cv-00519-EGS (D.D.C. Mar. 29, 2004).

Meanwhile, Cubaexport’s registration was set to expire on July 27, 2006, unless it

renewed its trademark. See 15 U.S.C. § 1058(a) (“Each registration shall remain in force

for 10 years . . . .”). Specifically, the Lanham Act required Cubaexport to make two filings.

Section 8 requires the owner of a trademark registration to file an affidavit identifying use

of the registered trademark in commerce (or excusable nonuse) every ten years and pay a

related fee. See id. § 1058. If the owner does not comply, the registration “shall be

canceled by the Director” of the PTO. Id. § 1058(a). Section 9 provides that, subject to

satisfying the requirements of Section 8, a trademark owner can renew its registration every

ten years by filing a written application and paying a fee before the end of each successive

ten-year renewal period or “within a grace period of 6 months” thereafter. Id. § 1059(a).

If the PTO finds a renewal application deficient, the applicant may correct the deficiency

“within the time prescribed after notification of the deficiency.” Id. If an acceptable

4 USCA4 Appeal: 22-1659 Doc: 33 Filed: 06/13/2024 Pg: 5 of 16

renewal application is not filed within the statutory time period, “the registration will

expire.” 37 C.F.R. §§ 2.182, 2.184(b)(1), (c), 2.185(b).

When it was time for Cubaexport to renew its HAVANA CLUB registration in

2006, a trade embargo stood in its way. Pursuant to a 1998 law, Cubaexport was no longer

permitted to pay the required renewal fee without first obtaining an exception (known as a

“specific license”) from the Department of the Treasury’s Office of Foreign Assets Control

(OFAC). See Empresa Cubana Exportadora, 638 F.3d at 797, 802. OFAC denied

Cubaexport’s request for a specific license, and the PTO notified Cubaexport that, because

it failed to submit the renewal fee on time, its registration would expire. 1

In October 2006, Cubaexport petitioned the Director of the PTO to reverse the

decision denying renewal of its registration. See 37 C.F.R. § 2.146. Action on the petition

was suspended while Cubaexport challenged OFAC’s denial of a specific license in court,

a lawsuit Cubaexport ultimately lost in 2012. See Empresa Cubana Exportadora, 638 F.3d

at 802–803, cert. denied, 566 U.S. 986 (2012). The petition remained pending with the

Director until January 2016, when OFAC changed course and issued a specific license

authorizing Cubaexport “to engage in all transactions” and make payments “necessary to

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