Carefree Trading, Inc. v. Life Corp.

19 F. App'x 841
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 16, 2001
DocketNo. 00-1274
StatusPublished

This text of 19 F. App'x 841 (Carefree Trading, Inc. v. Life Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carefree Trading, Inc. v. Life Corp., 19 F. App'x 841 (Fed. Cir. 2001).

Opinion

DECISION

SCHALL, Circuit Judge.

Carefree Trading Inc. (doing business as CFT, Inc.) (“Carefree”) manufactures and sells cardiopulmonary resuscitation (“CPR”) face masks under the registered “LIFE MASK” mark.1 Life Corporation (“Life”) sells entire emergency oxygen units that include CPR masks. On April 21, 1994, Life initiated cancellation proceedings before the Trademark Trial and Appeals Board (“Board”) on the ground that there was a likelihood of confusion between the LIFE MASK mark and Life’s previously used and registered marks, “LIFE CORPORATION,”2 “LIFE COR[843]*843PORATION OXYGEN PAC,”3 and “LIFE-02.” 4 In due course, following the receipt of deposition testimony and exhibits and a hearing, the Board held that there was a likelihood of confusion between Carefree’s mark and Life’s registered “LIFE” trade name and trademark. Life Corp. v. Carefree Trading Corp., 47 USPQ2d 1151 (TTAB 1998). Accordingly, it ordered the cancellation of Carefree’s mark.

Carefree appealed the Board’s decision pursuant to 15 U.S.C. § 1071(b)5 by filing a complaint in the United States District Court for the District of Arizona on August 31, 1998. In addition to challenging the Board’s decision, Carefree asserted patent infringement claims against Life. Life counterclaimed for trademark infringement, antitrust violations, and unfair competition. In addition, it sought a declaratory judgment of invalidity of Carefree’s asserted patent. Subsequently, however, it withdrew the trademark infringement and unfair competition claims. On February 3, 2000, the district court granted Life’s motion for summary judgment affirming the decision of the Board. Carefree Trading, Inc. v. Life Corp., 83 F.Supp.2d 1111, 1117 (D.Ariz.2000). Thereafter, the parties stipulated to the dismissal with prejudice of Carefree’s patent infringement claims and Life’s antitrust and declaratory judgment counterclaims, the remaining claims in the case. An order of dismissal was entered by the district court on March 20, 2000, and Carefree timely appealed.

On appeal, Carefree challenges the district court’s grant of summary judgment by arguing that it was not permitted an opportunity for full and effective discovery. Because we agree, we vacate the grant of summary judgment and remand the case to the district court in order that Carefree may have the opportunity for further discovery.

DISCUSSION

I.

A disappointed party in a cancellation proceeding has two available avenues for appeal. The party may bring the appeal in this court under 15 U.S.C. § 1071(a), or it may opt to present additional evidence or claims and bring the action in a United States district court under 15 U.S.C. § 1071(b). 15 U.S.C. § 1071. As noted, Carefree chose the option of appealing the Board’s decision in district court pursuant to 15 U.S.C. § 1071(b). Generally, the district court’s § 1071(b) decision would be appealed directly to the regional circuit. 15 U.S.C. § 1121; Williams v. Dep’t of the Army, 715 F.2d 1485, 1490, n. 5 (Fed.Cir.1983). However, Carefree added patent infringement claims to its appeal of the Board’s decision. The patent claims are no longer at issue in the case, having been dismissed by the district court. Nonetheless, we have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1) because jurisdiction in the district court was based in part on 28 U.S.C. § 1338. Our exclusive jurisdiction over matters arising in part under the patent laws is not defeated by the fact that the patent claims have been dismissed with prejudice. See Zenith Elecs. Corp. v. Ex-[844]*844zec Inc., 182 F.3d 1340, 1346, 51 USPQ2d 1337, 1341-42 (Fed.Cir.1999).

II.

Summary judgment is proper when, in viewing the evidence in the light most favorable to the non-moving party, there are no genuine issues of material fact. Qualls v. Blue Cross of Cal., Inc., 22 F.3d 839, 842 (9th Cir.1994). In the Ninth Circuit, a district court’s grant of summary judgment is reviewed de novo to determine whether the summary judgment standard has been met. Qualls, 22 F.3d 839, 842 (9th Cir.1994). Carefree argues that the district court erred in granting summary judgment in favor of Life because it did so before Carefree had had the opportunity for adequate discovery. In addressing this contention, it is necessary to set forth the course of proceedings in the district court.

Carefree’s complaint was filed in the district court on August 31, 1998. On November 9, 1998, Life answered the complaint and filed its counterclaims. On February 1, 1999, Judge Roger G. Strand, to whom the case then was assigned, issued an order that set a discovery deadline of October 1, 1999. On March 12, 1999, Life moved for summary judgment on all of the trademark and unfair competition claims asserted by the parties in the case. Life argued that the facts relating to the issue of likelihood of confusion were undisputed and that therefore the decision of the Board should be affirmed. Life asked the court to enter judgment on its trademark infringement and unfair competition counterclaims and to enjoin Carefree from use of LIFE, LIFE MASK, and LIFE combined with another descriptive or generic term or design.

On April 26, 1999, Carefree filed its opposition to Life’s motion for summary judgment. Carefree argued that summary judgment was inappropriate because there were genuine issues of material fact. Carefree also argued that it was entitled to discovery. In that regard, pursuant to Federal Rule of Civil Procedure 56(f), Carefree submitted the affidavit of its trial counsel Stephen T. Sullivan. In his affidavit, Mr. Sullivan asserted that neither party had served the other with any discovery; he also asserted that Carefree had prepared written discovery requests and that it intended to proceed with discovery promptly. Among other things, Mr. Sullivan stated that, as yet, Carefree had been unable take discovery to test Life’s allegations concerning likelihood of confusion. Mr. Sullivan specified that Carefree had “been unable to fully explore third party uses of names and marks which include the word life in the relevant field and among the relevant classes of consumers.” Third party uses of a mark diminish the mark’s strength and restrict the amount of protection afforded to the mark’s owner. AMF, Inc. v. Sleekcraft Boats,

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19 F. App'x 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carefree-trading-inc-v-life-corp-cafc-2001.