In Re Wella A.G.

858 F.2d 725, 8 U.S.P.Q. 2d (BNA) 1365, 1988 U.S. App. LEXIS 13167, 1988 WL 99265
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 29, 1988
DocketAppeal 88-1150
StatusPublished
Cited by5 cases

This text of 858 F.2d 725 (In Re Wella A.G.) 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
In Re Wella A.G., 858 F.2d 725, 8 U.S.P.Q. 2d (BNA) 1365, 1988 U.S. App. LEXIS 13167, 1988 WL 99265 (Fed. Cir. 1988).

Opinions

FRIEDMAN, Circuit Judge.

This case is before us for the second time. In the prior opinion we reversed the refusal of the Trademark Trial and Appeal Board (Board) to register a trademark because, we held, the Board’s action rested upon a misinterpretation of section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d) (1982). We remanded the case to the Board for further proceedings in accordance with our opinion. In re Wella A.G., 787 F.2d 1549, 229 USPQ 274 (1986).

On the remand, the Board held that section 2(d) did not bar registration, but denied registration on the new ground that the applicant for registration was not the owner of the mark. We hold that the Board did not comply with our prior order, vacate the Board’s latest decision, and remand the case for further proceedings consistent with this opinion.

I

The appellant Wella A.G., a German corporation, sought registration of the mark WELLASTRATE for use on hair straightening products. The Board, affirming the examiner, refused registration in light of four marks registered by the Wella Corporation (Wella U.S.), an American subsidiary of the German corporation, which also covered various hair care products: WELLA-TONE, WELLA STREAK, WELLASOL, and WELLA plus a design.

The Board relied upon section 2(d), which bars registration of a mark that “so resembles a mark registered in the Patent and Trademark Office or a mark or trade name previously used in the United States by another and not abandoned, as to be likely, when applied to the goods of the applicant, to cause confusion.” The Board followed its prior cases, which, it said, held that registration may not “be issued for the same or similar marks for the same or closely related goods to two separate legal entities, notwithstanding that they may be related companies within the meaning of Section 5 of the Act.” 787 F.2d at 1550-51.

This court reversed. We held that where the applicant is a related company of an existing registrant, section 2(d)

requires a thorough inquiry into whether, considering all the circumstances, use of the mark by the applicant is likely to confuse the public about the source of the applicant’s goods because of the resemblance of the applicant’s mark to the mark of the other company....
The question is whether, despite the similarity of the marks and the goods on which they are used, the public is likely to be confused about the source of the hair straightening products carrying the trademark “WELLASTRATE.” In other words, is the public likely to believe that the source of that product is Wella U.S. rather than the German company or the Wella organization.

787 F.2d at 1552.

The first sentence of the penultimate paragraph of our opinion stated:

The only issue for the Board to consider on the remand is whether, considering all the circumstances, there is a likelihood of confusion between the mark sought to be registered and the four Wella U.S. marks which under section 2(d) would warrant refusal of registration.

Id. at 1553.

The opinion concluded:

The decision of the Trademark Trial and Appeal Board affirming the examiner’s refusal to register the trademark “WELLASTRATE” is vacated, and the case is remanded to the Board for further proceedings in accordance with this opinion.

Id.

Appended to the opinion were the “additional views” of Judge Nies, a member of the panel. She “agree[d] with the majority that the section 2(d) rejection cannot stand and that the application must be remanded for further examination. The question of likelihood of confusion where goods of a [727]*727foreign corporation and goods of a related U.S. corporation are sold under the same or a confusingly similar mark is not resolvable simply on the basis that the companies are separate entities.” Id. at 1554. She then stated:

There is, however, a different question, not addressed in the initial prosecution of the application, with respect to ownership of U.S. rights in the WELLA marks. Is Wella A.G. the owner of such rights or is its subsidiary, Wella U.S., the owner?

Id. (emphasis in original).

Pointing out that “[u]nder section 1 of the Lanham Act, only the owner of a mark is entitled to apply for registration” (id., emphasis in original, footnote omitted), Judge Nies concluded:

As far as the PTO is concerned, in view of section 7, supra note 5, the PTO must accept the correctness of the existing title records for the WELLA registrations, which show that the WELLA marks are owned solely by Wella U.S. Wella A.G. is, therefore, not entitled to the registration it seeks until these title records reflect the ownership it now claims or the registrations are cancelled. Thus, a new rejection on the basis of sections 1 and 7 appears appropriate.

Id. at 1555.

B. On remand the Board, noting both our “only issue” instruction and the “additional views” of Judge Nies, stated that it was “somewhat uncertain as to which procedural course to take.” The Board concluded that

[o]n the one hand, the Court's decision is clear that the Board must consider the Section 2(d) likelihood of confusion question in light of the Court’s opinion and that this is “the only issue” for the Board to consider on remand. On the other hand, the “additional views” section, while not the Court’s holding and while not a specific order to the Board, clearly indicates that, in Judge Nies’s view, a rejection of applicant’s application on the basis of Sections 1 and 7 of the Act appears appropriate.
In order to comply fully with the Court’s directions and also to proceed in accordance with Judge Nies’ “additional views,” the Board hereby defers action on the Section 2(d) question and remands the application, pursuant to Trademark Rule 2.142(f)(1), for further examination. In particular, the Examining Attorney should consider a refusal to register, in accordance with Judge Nies’s comments, under Sections 1 and 7 of the Trademark Act, on the ground that applicant is not the owner of the mark it seeks to register.

In re Wella A.G., 230 USPQ 77, 78 (T.T.A.B. 1986).

The examining attorney refused registration “under Section 1 and 7 of the Trademark Act on the ground that applicant Wella A.G. (West Germany [sic] Corporation) is not the owner of the mark in the United States. Rather, it appears that The Wella Corporation (New York Corporation) is the owner of the mark in the United States, as evidenced by the four reference-registrations in the name of the Wella Corporation.” The examining attorney forwarded the application to the Board “for further action.”

The Board reversed the refusal to register under section 2(d) but affirmed the refusal to register “on the grounds that Wella A.G. does not own the mark it seeks to register.” In re Wella A. G., 5 USPQ2d 1359, 1362 (T.T.A.B. 1987). With respect to the section 2(d) rejection, the Board ruled that

Wella A.G. and Wella U.S.

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858 F.2d 725, 8 U.S.P.Q. 2d (BNA) 1365, 1988 U.S. App. LEXIS 13167, 1988 WL 99265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wella-ag-cafc-1988.