Spraying Systems Company v. Delavan, Incorporated

975 F.2d 387, 24 U.S.P.Q. 2d (BNA) 1181, 1992 U.S. App. LEXIS 22248, 1992 WL 226465
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 17, 1992
Docket91-1919
StatusPublished
Cited by148 cases

This text of 975 F.2d 387 (Spraying Systems Company v. Delavan, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spraying Systems Company v. Delavan, Incorporated, 975 F.2d 387, 24 U.S.P.Q. 2d (BNA) 1181, 1992 U.S. App. LEXIS 22248, 1992 WL 226465 (7th Cir. 1992).

Opinion

CUDAHY, Circuit Judge.

Spraying Systems Company sued Dela-van, Incorporated for trademark and trade dress infringement and unfair competition under the Lanham Act and for cancellation of Delavan’s two federal trademark registrations. The Trademark Trial and Appeal Board granted summary judgment in favor of Delavan, finding no genuine issue of confusing similarity between Delavan’s COLOR JET mark and Spraying Systems’ several marks, which include TEEJET, AIRJET, FOAMJET, CONEJET and QUICKJET. The district court, after considering additional evidence, also granted summary judgment in favor of Delavan. We affirm.

I.

Both parties manufacture and sell spray nozzles and related equipment for use in industrial and agricultural markets. Since 1938, Spraying Systems has held and used a number of valid federal trademarks containing the suffix “-JET.” It now owns *390 more than 35 such trademark registrations, most of which are incontestable. 1 Many of Spraying Systems’ customers know the company by the name “TEEJET,” a trademark first used in 1948. Spraying Systems’ annual sales of goods marketed under the “-JET” suffix names have exceeded $20 million since 1981 and $30 million since 1986.

Delavan owns two trademark registrations for the mark COLOR JET, 2 used in connection with spray nozzles designed primarily for agricultural applications. Dela-van concedes that its goods are similar to those of Spraying Systems and that the goods share essentially the same channels of trade and purchasers. It is undisputed, however, that Delavan and Spraying Systems use significantly different packaging in the marketing of their goods. Delavan’s packaging is red, white and blue, while Spraying Systems’ is yellow with black labeling. In addition, each company clearly marks the source of the product with the trademark “Delavan” or “Spraying Systems” on the packaging.

Spraying Systems and Delavan both col- or-code their spray nozzles to designate specific nozzle capacities and flow rates. Delavan’s color-coding system, which came into use in 1982, is registered under the trademark COLOR-BRATE. Spraying Systems began using its system, which it promotes under the trademark VISIFLO, in 1983. Although Delavan’s COLOR-BRATE system and Spraying Systems’ VI-SIFLO system use many of the same colors, the colors do not correspond to the same nozzle capacities.

On January 26, 1988, Spraying Systems petitioned the Trademark Trial and Appeal Board of the United States Patent and Trademark Office (TTAB or Board) to cancel Delavan’s two COLOR JET registrations. Spraying Systems argued that the COLOR JET mark so resembled its own “-JET” suffix marks as to be likely to cause confusion, mistake or deception. The TTAB, finding no genuine issue of material fact as to the likelihood of confusion, granted summary judgment for Dela-van. The Board noted that the sole similarity in the marks was the “JET” formative, which it found to be descriptive. It also relied on evidence of numerous third-party registrations and uses of marks containing the “JET” formative for spray nozzles and related goods.

Pursuant to § 21(b) of the Lanham Act, 15 U.S.C. § 1071(b), Spraying Systems sought review of the TTAB’s decision in the district court. (A party may appeal an adverse decision of the Board either to the U.S. Court of Appeals for the Federal Circuit or to a federal district court. An appeal to a district court is in part an appeal and in part a new action, since additional relief may be requested and additional evidence may be presented. See 2 J. Thomas McCarthy, Trademarks and Unfair Competition § 21:5, at 14-15 (2d ed. 1984).) In the district court, Spraying Systems again pursued its claim of infringement of its “-JET” trademarks and, in addition, sought protection of its color-coding scheme as a trademark and its overall product image as trade dress. The district court applied a “thorough conviction” standard to the TTAB’s decision on infringement of Spraying Systems’ “-JET” trademarks, concluding that summary judgment for Delavan was proper. As to the infringement claim premised on Spraying Systems’ color-coding scheme and the trade dress claim, the court found no genuine issue of material fact and entered summary judgment against Spraying Systems. *391 Spraying Systems Co. v. Delavan, Inc., 762 F.Supp. 772 (N.D.Ill.1991).

•Spraying Systems appeals, challenging several aspects of the district court’s decision. 3

II.

We must begin by addressing the standard of review, an issue that has generated some confusion in this case. The review mechanisms of 15 U.S.C. § 1071 are unique. Review of a TTAB decision in a federal district court is considered de novo because the parties are permitted to present new evidence and even enlarge the pleadings. See Teter, Inc. v. Rheem Mfg. Co., 334 F.2d 784, 786 (7th Cir.1964); Standard Pressed Steel Co. v. Midwest Chrome Process Co., 418 F.Supp. 485, 489 (N.D.Ill.1976). That characterization can be misleading, however, because deference is owed to the findings of the TTAB. In particular, this Court has declared that the Board’s decision “must be accepted as controlling upon a finding of fact about confusing similarity of trademarks, unless the contrary is established by testimony which in character and amount carries thorough conviction.” Fleetwood Co. v. Hazel Bishop, Inc., 352 F.2d 841, 844 (7th Cir.1965) (citing Morgan v. Daniels, 153 U.S. 120, 125, 14 S.Ct. 772, 773-74, 38 L.Ed. 657 (1894)).

Contrary to Spraying Systems’ assertion, the “vast majority of courts” apply the thorough conviction standard to such findings made by the Patent and Trademark Office. 2 McCarthy § 21:5, at 17. Spraying Systems argues that the thorough conviction standard should not apply to new evidence presented in the district court. It is true that new evidence must itself be considered de novo by the district court — in the sense of being fairly weighed without placing a thumb on the scales or dismissing it out of hand. But the evidence must then be weighed against the Board’s findings under the thorough conviction standard. Unless the new evidence leads to a thorough conviction that a finding of the Board is incorrect, that finding is controlling. Velsicol Chemical Corp. v. Monsanto Co., 579 F.2d 1038, 1042 (7th Cir.1978); Watkins Prods., Inc. v. Sunway Fruit Prods., Inc., 311 F.2d 496, 498-99 (7th Cir.1962), cert. denied, 373 U.S.

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975 F.2d 387, 24 U.S.P.Q. 2d (BNA) 1181, 1992 U.S. App. LEXIS 22248, 1992 WL 226465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spraying-systems-company-v-delavan-incorporated-ca7-1992.