Combe Incorporated v. Dr. August Wolff GMBH & Co. KG

Court of Appeals for the Fourth Circuit·Decided April 13, 2021·No. 19-1674·Unpublished

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 19-1674

COMBE INCORPORATED, Plaintiff – Appellee,

v.

DR. AUGUST WOLFF GMBH & CO. KG ARZNEIMITTEL, Defendant – Appellant.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. T. S. Ellis, III, District Judge. (1:17-cv-00935-TSE-MSN)

Argued: January 28, 2021 Decided: April 13, 2021

Before AGEE, THACKER and QUATTLEBAUM, Circuit Judges.

Affirmed by unpublished per curiam opinion.

ARGUED: Ross Quinn Panko, ARENT FOX LLP, Washington, D.C., for Appellant. Douglas Anthony Rettew, FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP, Washington, D.C., for Appellee. ON BRIEF: Michael A. Grow, Laura E. Zell, ARENT FOX LLP, Washington, D.C., for Appellant. Anna B. Naydonov, Sydney N. English, FINNEGAN, HENDERSON, FARABOW, GARRETT & DUNNER, LLP, Washington, D.C., for Appellee.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

This case involves a trademark registration dispute between two makers of vaginal-

health and hygiene products that are marketed under the respective brands “Vagisil” and “Vagisan.” Combe, Inc. (“Combe”), which owns the Vagisil mark, contended that registration of Dr. August Wolff GMBH & Co. KG Arzneimittel’s (“Wolff”) Vagisan mark would likely confuse consumers, and thus should be disallowed under the Lanham Act, 15 U.S.C. § 1051 et seq. The district court agreed with Combe. Wolff appeals. For the reasons set out below, we affirm the judgment of the district court.

I.

Since the mid-1970s Combe has sold an array of women’s vaginal-health products under the name “Vagisil.” In 1978, it registered “Vagisil” with the U.S. Patent and Trademark Office (“PTO”) and has maintained ownership of a Vagisil mark covering “pharmaceutical preparations,” particularly “medicated cremes,” ever since. J.A. 1336. In subsequent years, Combe acquired ownership of additional registered Vagisil marks to cover its expanded product line, which now includes vaginal-health powders, wipes, washes, and moisturizers.

Since 1998 Wolff, a German-based company, has used the name “Vagisan” to sell vaginal-health and hygiene products internationally. It owns several foreign trademark registrations for Vagisan, but has not sold Vagisan products in the United States. Desiring to enter the previously untapped American market, Wolff applied with the PTO to register

the unadorned, standard characters “VAGISAN” as a U.S. trademark for various “pharmaceutical preparations” and other related products in 2012. J.A. 268.

Combe opposed the registration of Wolff’s mark, asserting Vagisan’s similarity to Vagisil would create a likelihood of confusing consumers. The Trademark Trial & Appeals Board (“TTAB”) dismissed Combe’s opposition and allowed Wolff to register the Vagisan mark.

Thereafter, Combe filed a timely civil action under 15 U.S.C. § 1071(b) seeking to have Wolff’s Vagisan mark cancelled. 1 After a bench trial, the district court found that because the Vagisan mark presented a likelihood of confusing consumers, its registration violated the Lanham Act. The district court entered judgment in favor of Combe, reversed the TTAB ruling dismissing Combe’s opposition, and ordered refusal of Wolff’s application to register the Vagisan mark.

Wolff noted a timely appeal, and the Court has jurisdiction under 28 U.S.C. § 1291 and 15 U.S.C. § 1121.

1 This provision of the Lanham Act authorizes individuals “dissatisfied with the decision of the [TTAB]” to allow registration of a mark to file a civil action to have the registration canceled and obtain other appropriate relief. 15 U.S.C. § 1071(b)(1). A § 1071(b) action is pursued in lieu of an appeal of the TTAB decision, which must be filed in the U.S. Court of Appeals for the Federal Circuit. See § 1071(a) and (b)(1). Therefore, a § 1071(b) action is a new proceeding, and the parties are permitted to submit new evidence beyond the TTAB record. See Kappos v. Hyatt, 566 U.S. 431, 439 (2012).

II.

The Lanham Act prohibits registration of a mark that “so resembles a mark registered in the Patent and Trademark Office . . . as to be likely, when used on or in connection with the goods of the applicant, to cause confusion, or to cause mistake or to deceive.” 15 U.S.C. § 1052(d). This standard is met if the new mark is “likely to produce confusion in the minds of consumers about the origin of the goods or services in question.” Swatch AG v. Beehive Wholesale, LLC, 739 F.3d 150, 158 (4th Cir. 2014). “To determine if there is a likelihood of confusion between two marks, we consider nine non-exhaustive and non-mandatory factors,” which “serve as a guide rather than ‘a rigid formula’” and “are not all of equal importance” or “relevant in every case.” Id. at 158–59 (quoting George & Co., LLC v. Imagination Entm’t Ltd., 575 F.3d 383, 393–94 (4th Cir. 2009)).

The factors, how the district court weighed them, and their status on appeal are represented below:

Factor 2 District Court Finding Status on Appeal

Strength or distinctiveness Favored Combe Challenged of the plaintiff’s mark

Similarity of the marks Favored Combe Challenged

Similarity of the goods or Favored Combe Unchallenged services the marks identify

Similarity of the Favored Combe Unchallenged markholders’ facilities

2 Drawn from Pizzeria Uno Corp. v. Temple, 747 F.2d 1522, 1527 (4th Cir. 1984).

Similarity of the Favored Combe Unchallenged markholders’ advertising

Defendant’s intent Minimally favored Wolff Unchallenged Actual confusion Favored Combe Challenged

Quality of the defendant’s Did not apply Unchallenged mark

Sophistication of the Neutral Challenged consuming public

Because the district court entered judgment in favor of Combe following a bench trial, “the standard of review is a deferential one requiring appellate respect for the trial court’s findings.” Petro Shopping Ctrs., L.P. v. James River Petroleum, Inc., 130 F.3d 88, 92 (4th Cir. 1997). “Likelihood of confusion is an inherently factual issue, and [the Court reviews] district court determinations regarding it under a clearly erroneous standard.” Swatch AG, 739 F.3d at 155 (internal quotation marks and alteration omitted); see Fed. R. Civ. P. 52(a)(6) (“Findings of fact, whether based on oral or other evidence, must not be set aside unless clearly erroneous, and the reviewing court must give due regard to the trial court’s opportunity to judge the witnesses’ credibility.”). A district court’s finding is “‘clearly erroneous’ when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 573 (1985).

III.

On appeal, Wolff challenges the district court’s determination that Combe had shown a likelihood of confusing Vagisil and Vagisan. Specifically, it asserts the district court erred in assessing four of the factors: strength or distinctiveness of the Vagisil mark, similarity of the two marks, actual confusion, and sophistication of the consumer. We have reviewed the record and conclude that the district court’s determinations were not clearly erroneous as to any of these factors. 3 Accordingly, we will affirm the judgment of the district court.

A. Strength of the Vagisil Mark Wolff understandably spends a substantial time arguing that the district court erred in finding that the strength of the mark factor favored Combe given that this is “[t]he first and paramount factor” in the confusion assessment. Pizzeria Uno Corp. v. Temple, 747 F.2d 1522, 1527 (4th Cir. 1984). This factor assesses “the degree to which a consumer in the relevant population, upon encountering the mark, would associate the mark with a unique source.” CareFirst of Md., Inc. v. First Care, P.C., 434 F.3d 263, 269 (4th Cir. 2006). “Generally, the stronger the mark, the greater the likelihood that consumers will be confused by competing uses of the mark.” George & Co., 575 F.3d at 393.

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