Goya Foods, Inc. v. Tropicana Products, Inc.

666 F. Supp. 585, 4 U.S.P.Q. 2d (BNA) 1893, 1987 U.S. Dist. LEXIS 7055
CourtDistrict Court, S.D. New York
DecidedAugust 6, 1987
DocketNo. 87 Civ. 3527 (MP)
StatusPublished
Cited by1 cases

This text of 666 F. Supp. 585 (Goya Foods, Inc. v. Tropicana Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goya Foods, Inc. v. Tropicana Products, Inc., 666 F. Supp. 585, 4 U.S.P.Q. 2d (BNA) 1893, 1987 U.S. Dist. LEXIS 7055 (S.D.N.Y. 1987).

Opinion

OPINION

MILTON POLLACK, Senior District Judge.

This is a trademark action for a declaratory judgment of noninfringement, brought under the Declaratory Judgment Act, 28 U.S.C. §§ 2201, 2202.

Defendant has moved to dismiss the complaint, or alternatively to stay the action pending a final decision by the Trademark Trial and Appeal Board regarding related administrative proceedings involving plaintiff and defendant.

Plaintiff Goya Foods, Inc. (“Goya”) manufactures, distributes, and sells, among other products, two soft drinks bearing the trademarks at issue in this case: (1) a cola flavored carbonated soft drink sold under the trademark TROPICOLA; (2) a coconut flavored carbonated soft drink sold under the trademark TROPICOCO. The complaint alleges that Goya and its predecessors in interest have continuously used the TROPICOLA and TROPICOCO marks on the products since 1974.

Goya’s applications to re-register the TROPICOLA and TROPICOCO trademarks are pending in the U.S. Patent and Trademark Office. According to Goya’s complaint, the marks were previously registered in 1975, but were automatically can-celled pursuant to 15 U.S.C. § 1058(b) when Goya failed to file a timely affidavit of continued use as required by 15 U.S.C. § 1058(a) to avoid automatic cancellation of the marks.

Goya’s applications to re-register TROPI-COLA and TROPICOCO were filed with the Patent and Trademark Office on January 25, 1985. A Trademark Examining Attorney of the Patent and Trademark Office preliminarily determined that TROPICOLA and TROPICOCO did not resemble any existing registration as to cause confusion, mistake, or deception. Goya subsequently received “Notices of Publication” from the Patent and Trademark Office informing that TROPICOLA and TROPICOCO would be published in the Office’s Official Gar zette pursuant to 15 U.S.C. § 1062(a).

On October 30,1985 defendant Tropicana Products, Inc. (“Tropicana”) commenced an opposition proceeding before the Trademark Trial and Appeal Board, pursuant to 15 U.S.C. § 1063, which challenged the proposed registration by Goya of TROPICO-LA. Tropicana claimed that it had priority to the TROPICOLA mark, and that GOYA’s TROPICOLA mark resembled Tropicana’s registered trademarks — TROPICANA, TROPIC-ANA, and TROPI — as to create confusion, mistake, or deception. Goya answered Tropicana’s registration opposition with a denial, and counterclaimed for cancellation of defendant’s TROPI trademark registration.

On September 25, 1986 Tropicana commenced an opposition proceeding before the Trademark Trial and Appeal Board challenging Goya’s proposed trademark registration of TROPICOCO. The Board ordered Tropicana’s two oppositions consolidated on April 24, 1987.

After the administrative proceedings had been pending for almost two years, Goya instituted this declaratory judgment action in the Southern District of New York on May 21, 1987. Goya seeks a declaration that, inter alia, there has been no infringement by Goya of Tropicana’s trademarks, that the TROPICOLA and TROPICOCO marks as used in Goya’s business are not confusingly similar with Tropicana’s marks, and that Tropicana’s registration for TROPI be cancelled.

On May 22, 1987 the Trademark Trial and Appeal Board granted Goya’s request to suspend the administrative proceedings, with leave to Tropicana to move to resume the opposition proceedings if the Court grants this motion to dismiss or stay.1

[588]*588DISCUSSION

Under the Declaratory Judgment Act (“the Act”), “In a case of actual controversy within its jurisdiction,” a federal court “may declare the rights and other legal relations of any interested party seeking such declaration ...” 28 U.S.C. § 2201 (1987).

“[E]ven when justiciability is present the court is not required to proceed with the declaratory judgment action, for it is well settled that a trial court’s decision to exercise declaratory jurisdiction is a discretionary one.” Muller v. Olin Mathieson Chemical Corp., 404 F.2d 501, 505 (2d Cir.1968).

In patent and trademark cases, a justiciable “actual controversy” under the Act exists if defendant has charged plaintiff with infringement, or has threatened plaintiff with an infringement suit either directly or indirectly. Muller, 404 F.2d at 504; 2 McCarthy, Trademarks and Unfair Competition, § 32:18 at 710 (2d ed. 1984). However, in this ease, there is no trademark infringement claim asserted by Tropicana.

The filing of an opposition in a trademark registration proceeding is not tantamount to a charge of infringement or a warning of a future charge of infringement. Topp-Cola Company v. Coca-Cola Company, 314 F.2d 124, 126 (2d Cir.1963); Merrick v. Sharp & Dohme, Inc., 185 F.2d 713, 717 (7th Cir.1950), cert. denied, 340 U.S. 954, 71 S.Ct. 573, 95 L.Ed. 687 (1951).

It may very well be that sending intimidating letters to a trademark registration applicant, his licensee, or a potential customer, support a suit under the Declaratory Judgment Act on the ground that it is reasonable to infer therefrom a threatened claim of infringement. Chesebrough-Pond’s Inc. v. Faberge, Inc., 666 F.2d 393, 396-97 (9th Cir.), cert. denied, 459 U.S. 967, 103 S.Ct. 294, 74 L.Ed.2d 277 (1982); Airship Industries (UK) Ltd. v. Goodyear Tire & Rubber Co., 643 F.Supp. 754, 759 (S.D.N.Y.1986) (discussing cases); Muller, 404 F.2d at 504-505.

However, even cases exercising jurisdiction under the Declaratory Judgment Act make clear that “a simple opposition proceeding in the Patent and Trademark Office generally will not raise a real and reasonable apprehension of suit.” E.g., Chesebrough-Pond’s, Inc., 666 F.2d at 396.

Where no claim of infringement is made, and the only concrete dispute between the parties relates to a registration proceeding in an administrative agency, the Declaratory Judgment Act should not be used to adjudicate trademark rights. See Topp-Cola Company v. Coca-Cola Company, 314 F.2d 124, 126-27 (2d Cir.1963) (court abused discretion by asserting jurisdiction). The preferable course is to allow the agency to resolve the issues of registration properly before it. Id.

Congress has established administrative procedures whereby an interested party can contest trademark registration before the Trademark Trial and Appeal Board. 15 U.S.C.

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Related

Goya Foods, Inc. v. Tropicana Products, Inc.
846 F.2d 848 (Second Circuit, 1988)

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Bluebook (online)
666 F. Supp. 585, 4 U.S.P.Q. 2d (BNA) 1893, 1987 U.S. Dist. LEXIS 7055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goya-foods-inc-v-tropicana-products-inc-nysd-1987.