Shammas v. Rea

978 F. Supp. 2d 599, 2013 WL 5672404, 2013 U.S. Dist. LEXIS 149947
CourtDistrict Court, E.D. Virginia
DecidedOctober 15, 2013
DocketCase No. 1:13-cv-1462
StatusPublished
Cited by6 cases

This text of 978 F. Supp. 2d 599 (Shammas v. Rea) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shammas v. Rea, 978 F. Supp. 2d 599, 2013 WL 5672404, 2013 U.S. Dist. LEXIS 149947 (E.D. Va. 2013).

Opinion

MEMORANDUM OPINION

T.S. ELLIS, III, District Judge.

At issue on cross motions for summary judgment in this action seeking review of a decision from the Patent and Trademark Office’s (“PTO”) Trial and Appeal Board (“TTAB”) is whether the TTAB erred in denying registration for the term “PROBI-OTIC” on the grounds that the term is generic in connection with fertilizer, and alternatively, that the term at best is descriptive and has not acquired secondary meaning. For the reasons that follow, the TTAB did not err in denying registration to plaintiff. Accordingly, plaintiffs motion for summary judgment must be denied, and defendant’s motion for summary judgment must be granted.

I.

Plaintiff Milo Shammas, the sole owner of Dr. Earth, Inc., filed a federal trademark application on June 12, 2009 for the term PROBIOTIC in connection with fertilizer. In an Office Action on September [604]*60414, 2009. the Trademark Examining Attorney of the PTO refused to register PRO-BIOTIC on two grounds, stating (1) that the term PROBIOTIC is generic in connection with fertilizer and (2) that, at most, PROBIOTIC is merely descriptive for fertilizer and has not acquired secondary meaning. Plaintiff filed a response on August 30, 2010, arguing that PROBIOTIC has acquired distinctiveness over the past 10 years. The PTO’s Examining Attorney disagreed, and on February 24, 2011, issued a Final Office Action denying registration. Plaintiff then appealed this ruling to the TTAB, arguing that the PTO erred in finding the term generic, and alternatively, lacking in secondary meaning. Thereafter, on October 12, 2012, TTAB affirmed the Examining Attorney’s refusal to register the term PROBIOTIC as a trademark. In re Milo Shammas, No. 77758863 at 13, 2012 WL 5493559 (T.T.A.B. Oct. 25, 2012).

In affirming the Examining Attorney’s denial, the TTAB found that the term was merely generic, stating that “competitors’ use of the term ‘Probiotics’ as the technology behind their products is persuasive evidence that the relevant consumers perceive the term as generic ... and that competitors need to use the term.” In re Milo Shammas, No. 77758863 at 13. In support of this finding, the TTAB noted that “articles about soil treatment identify probiotics as ... the technology or method of using friendly bacteria on the soil as an ingredient of fertilizer.” Id. Thus, the TTAB concluded that “the relevant consumers are going to understand PROBI-OTIC as the genus of goods, namely a fertilizer utilizing probiotic technology.” Id. at 16.

Alternatively, the TTAB also found that the term PROBIOTIC, even if descriptive, has not acquired secondary meaning. In reaching this result, the TTAB noted that plaintiff “did not submit any sales figures, either in dollar or units, market share information, or advertising expenditures” to support any finding of distinctiveness. Id. at 18. The TTAB also noted that “the record is lacking in any media recognition regarding applicant’s product and how the term PROBIOTIC points uniquely and exclusively to applicant.” Id.

Thereafter, on December 19, 2012, Plaintiff filed this action seeking review of the TTAB’s decision pursuant to 15 U.S.C. § 1071(b)(1), arguing that the TTAB erred in finding that the term PROBIOTIC is generic, and alternatively, that the term, even if descriptive, has not acquired secondary meaning. Plaintiff seeks (1) reversal of the TTAB’s decision, (2) a declaration that the term PROBIOTIC is suggestive or, alternatively, that it merits registration as a distinctive trademark that has acquired secondary meaning, and (3) any other relief deemed proper.

The parties have filed cross motions for summary judgment that essentially present the following two questions: (1) whether the TTAB erred in finding that the term PROBIOTIC is generic for fertilizer, and (2) whether the TTAB erred in finding, alternatively, that the term PROBI-OTIC, even if descriptive, has not acquired secondary meaning.

II.

The summary judgment standard is too well-settled to merit extended discussion, nor do the parties dispute this standard. Summary judgment should not be granted when the non-moving party has “set forth specific facts showing that there is a genuine issue for trial” through “affidavits or as otherwise provided.” Fed. Rules Civ. P. 56. A genuine factual dispute exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving [605]*605party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

III.

Plaintiff has filed this action under 15 U.S.C. § 1071, which allows trademark applicants dissatisfied with the TTAB’s decision either to appeal to the Court of Appeals for the Federal Circuit or to file an action in district court. Where, as here, the plaintiff files an action in the district court, the district court “ ‘sits in a dual capacity,’ serving on one hand as the finder of fact with respect to new evidence presented by the parties, and on the other as an appellate reviewer of facts found by the TTAB.” Glendale Intern. Corp. v. U.S. Patent & Trademark Office, 374 F.Supp.2d 479, 485 (E.D.Va.2005).

When acting as an appellate reviewer in an action under § 1071(b), a district court reviews the TTAB’s findings of fact deferentially and must uphold those findings of fact if they are supported by “substantial evidence” under the Administrative Procedure Act (“APA”).1 The TTAB’s findings that a term is generic2 or lacks secondary meaning3 are both findings of fact to be reviewed for such substantial evidence.

“Substantial evidence,” as stated by the Supreme Court, is “more than a mere scintilla of evidence” and requires “such relevant evidence as a reasonable mind would accept as adequate to support a conclusion.” In re Pacer Technology, 338 F.3d 1348, 1349 (Fed.Cir.2003) (quoting Consol. Edison v. N.L.R.B., 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). As the Federal Circuit has noted, “a review for substantial evidence ‘involves examination of the record as a whole, taking into account evidence that both justifies and detracts from an agency’s decisions.’ ” On-Line Careline, 229 F.3d at 1086 (quoting Universal Camera Corp. v. N.L.R.B., 340 U.S. 474, 487-88, 71 S.Ct. 456, 95 L.Ed. 456 (1951)). A finding of fact by the TTAB will not be “upset unless it is not supported by substantial evidence.” McCarthy on Trademark, § 21:21. Moreover, “the possibility of drawing two inconsistent conclusions from the evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Id. (quoting Consolo v. Federal Maritime Comm’n, 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966)). As stated by the Federal Circuit, the TTAB’s decision “may not be reversed ...

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Bluebook (online)
978 F. Supp. 2d 599, 2013 WL 5672404, 2013 U.S. Dist. LEXIS 149947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shammas-v-rea-vaed-2013.