Mission Dry Corp. v. Seven-Up Co.

193 F.2d 201, 39 C.C.P.A. 744, 92 U.S.P.Q. (BNA) 144, 1951 CCPA LEXIS 366
CourtCourt of Customs and Patent Appeals
DecidedDecember 18, 1951
DocketPatent Appeals 5826
StatusPublished
Cited by6 cases

This text of 193 F.2d 201 (Mission Dry Corp. v. Seven-Up Co.) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mission Dry Corp. v. Seven-Up Co., 193 F.2d 201, 39 C.C.P.A. 744, 92 U.S.P.Q. (BNA) 144, 1951 CCPA LEXIS 366 (ccpa 1951).

Opinion

JACKSON, Judge.

On May 2, 1938, appellant filed its application, serial No. 405,933 to register the trade-mark “Charge Up” as applied to nonalcoholic, maltless beverages used as soft drinks, together with syrups and extracts for preparing the same. The mark, bearing No. 360,613, was registered September 20, 1938.

Appellee petitioned the Commissioner of Patents to cancel the registration of appellant’s mark on November 7, 1947 under the provisions of the Trade-Mark Act of 1946, 15 U.S.C.A. § 1051 et seq. Appellee, in its petition, alleged that it adopted and began the use of the trade-mark “Seven Up” or “7 Up” for non-alcoholic beverages and for extracts and flavors therefor on or about August 7, 1928; that it is the owner of six registered trade-marks each of which includes the mark “Seven Up” or “7 Up” the first of which was issued February 5, 1929 and the last December 11, 1945; that the goods of the respective parties possess identical characteristics and *202 that appellant’s mark so nearly resembles the marks of appellee as to be likely to cause confusion in trade; and that appellant, upon the request of appellee, abandoned the use of the mark on or about November 14, 1939.

Appellant, in its answer to the petition, admits the ownership of the registered marks to be in appellee; denies that the involved marks are in any way similar or that confusion and mistake would result due to their concurrent use; and denies that the mark of appellant had ever become abandoned. Appellant also alleged that if appellee ever had any rights in the premises it has been guilty of gross laches in bringing this proceeding so as to bar the attempt to cancel appellant’s mark.

Testimony and briefs were filed by the parties who were represented at the hearing before the Examiner of Interferences.

It is clear from the evidence that the beverages and extracts of the parties are identical in a trade-mark sense. It also appears that on July 13, 1937 appellant used as a trade-mark the expression “Charge-Er” or “Charger” for which it obtained registration No. 353,414.

Appellee first learned of appellant’s use of the mark “Charge Up” sometime prior to November 14, 1939, during a convention of the American Bottlers of Carbonated Beverages held in San Francisco, California. At that time appellee gave notice to the then president of appellant that the use of the mark “Charge Up” was an infringement of appellee’s mark. Shortly thereafter, the president of appellant corporation under date of November 14, 1939, sent a letter to appellee in which the following appeared: “However, since you expressed yourself as being somewhat displeased with our contemplated use of the word ‘Charge-Up’ we have so changed our trade-mark for this particular product that the word ‘Up’ has been entirely eliminated. Because of this decision on our part we have not forwarded any Charge-Up bottles to St. Louis as previously promised.”

That letter was acknowledged by appellee on November 17, 1939 in which it was stated: “We have your letter of November '14th and are glad you are making the change eliminating the word ‘Up’ from your drink ‘Charge Up’.”

It appears that no further use was made of the mark “Charge Up” by appellant until the early part of 1946 when it once more began the use of the mark. That date was about five years subsequent -to the death of the president of appellant who had received notice from appellee that the use of the mark “Charge Up” was an infringement of appellee’s marks.

The Examiner of Interferences, in his decision, held that the circumstances of the case indicated to him that the recognition by appellant in 1939 of the trade-mark rights of appellee and the following non-use by appellant of its mark until 1946 in deference to such rights, relieved appellee during that time of any obligation to take further action against appellant and, accordingly, appellant was estopped from invoking the doctrine of laches as a bar against whatever rights appellee had in the premises. In support of that holding the examiner cited Rothman et al. v. Greyhound Corp. et al., 4 Cir., 175 F.2d 893; Vita-Var Corporation v. White Company, 76 U.S.P.Q. 267; Saperstein v. Grund, D.C., 85 F.Supp. 647.

The examiner then considered the grounds for cancellation with respect to the confusion in trade clause. Since there was no question but that appellee was the prior user and because the parties are clearly competitive there only remained for consideration, in the opinion of the examiner, the question of whether the involved marks are confusingly similar. He held that while identical portions of the marks are unlike in some respects, considered in their entireties, the resemblances between them predominate over their differences and therefore their concurrent use by the parties would be reasonably likely to cause confusion in trade. The examiner further held that the record was not sufficient to support the contention of appellee that appellant abandoned its mark and sustained the petition for cancellation on the ground that the marks were confusingly similar.

On appeal, the Commissioner of Patents, through Assistant Commissioner Joe E. Daniels, affirmed the decision of the Ex *203 aminer of Interferences, 86 U.S.P.Q. 263. The Assistant Commissioner held that the non-use by appellant of the mark “Charge Up” was not merely temporary, but was an intentional and complete discontinuance of its use and, as shown by the letter of November 14, 1939, there was a definite intent on the part of appellant to eliminate the mark.

The Assistant Commissioner then properly stated that when the use of a mark is discontinued with intent to abandon, it constitutes an immediate abandonment and the continuance of non-use in this case from 1939 until 1946 indicated an intention to abandon even though such abandonment had not been specifically expressed. That holding of the Assistant Commissioner is in accord with Section 45 of the TradeMark Act of 1946, which was cited in the Commissioner’s decision, reading as follows :

Sec. 45. Construction and definitions

“In the construction of this Act, unless the contrary is plainly apparent from the context- — ■

******

“Abandonment of mark. A mark shall ■be deemed to be ‘abandoned’—

“(a) When its use has been discontinued with intent not to resume. Intent not to resume may be inferred from circumstances. Non-use for two consecutive years shall be prima facie abandonment.

“(b) When any course of conduct of the registrant, including acts of omission as well as commission, causes the mark to lose its significance as an indication of origin. * * * ”

The Assistant Commissioner further noted that Section 14 of the Act provides for the cancellation of a registration of any mark which has been so abandoned and therefore the registration of appellant should be cancelled whether or not there was confusing similarity between the marks of the parties.

It was the opinion of the Assistant Commissioner that because of his holding with respect to abandonment it was not necessary to consider the question of confusing similarity.

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193 F.2d 201, 39 C.C.P.A. 744, 92 U.S.P.Q. (BNA) 144, 1951 CCPA LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mission-dry-corp-v-seven-up-co-ccpa-1951.