Surgicenters of America, Inc., an Arizona Corporation v. Medical Dental Surgeries, Co., an Oregon Corporation Dba Medical Dental Surgicenters

601 F.2d 1011
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 22, 1979
Docket77-2490
StatusPublished
Cited by88 cases

This text of 601 F.2d 1011 (Surgicenters of America, Inc., an Arizona Corporation v. Medical Dental Surgeries, Co., an Oregon Corporation Dba Medical Dental Surgicenters) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Surgicenters of America, Inc., an Arizona Corporation v. Medical Dental Surgeries, Co., an Oregon Corporation Dba Medical Dental Surgicenters, 601 F.2d 1011 (9th Cir. 1979).

Opinions

JAMESON, District Judge:

Appellant, Surgicenters of America, Inc. (Surgicenters), brought this action against appellee, Medical Dental Surgeries Co., dba Medical Dental Surgicenters (Medical), under the Trademark Act of 1946 as amended, 15 U.S.C. § 1051 et seq., for infringement of its registered service mark, “Surgicenter.” The parties filed cross-motions for summary judgment, based upon agreed facts, 45 exhibits, answers to interrogatories, and two depositions. The district court denied appellant’s motion and granted appellee’s motion, finding “Surgicenter” was not a lawfully registered service mark. We affirm.

Factual Background

The basic facts are undisputed, both parties accepting a summary contained in the opinion of the district court. In March, 1970, a month after operating a “facility for one-day surgical care” in Phoenix, Arizona, Surgicenter, Inc., applied for registration of the service mark “Surgicenter” for “services rendered in an in and out surgical facility.” On August 31, 1971 the mark “SURGICENTER” was registered to Surgi-center, Inc. “For: PROVIDING FACILITIES FOR DOCTORS TO PERFORM OPERATIONS ON PATIENTS”.1 On October 6,1971, the registration was assigned to appellant.

Since the registration of the service mark, Surgicenters has licensed use of the mark in other states.2 The doctors who formed the original corporation have worked since 1968 to popularize their concept of economical one-day surgical care to insure its acceptance by major insurance carriers.

In 1962 Medical, an Oregon corporation, filed the assumed business name “Medical Dental Hospital Co.” and did business under that name until December, 1972, when the name was changed to “Medical Dental Surgeries Co.” In January, 1975, Medical changed its name to “Medical Dental Surgi-centers” and filed this business name with the Oregon Corporation Commission. Medical provides facilities for out-patient surgical procedures.

On January 28,1975 Surgicenters notified Medical that Medical’s use of the name “Surgicenter” infringed Surgicenters’ mark. On June 13, 1975, Surgicenters filed this action to enjoin Medical from further use of the term, to require an accounting and payment of profits for its use since notification, and for damages for infringement

Opinion of District Court

The district court, in its opinion granting appellee’s motion for summary judgment, held that the mark “Surgicenter” was not a lawfully registered service mark because it was “generic” and thus not registrable. The court concluded further that if the term were considered “descriptive” rather than “generic”, it had not “developed a secondary meaning in this area in which [1013]*1013Medical operates”. In a judgment based upon its opinion, the court denied the injunction and demand for an accounting and damages.

In determining that the term “Surgicen-ter” is generic the court concluded that “Surgicenter” is a “coined word of the combination and abbreviation type which clearly connotes a center for surgery”. Since the term “surgery center” obviously “would not be capable of registration because it is quite clearly generic”, the term “Surgicen-ter” was likewise found to be generic.3

The district court held further: “Although there are undoubtedly those who connect ‘Surgicenter’ with the Arizona corporation, the consuming public generally understands the word to mean exactly what it says. This is amply demonstrated in the exhibits.” Among the exhibits upon which the court relied was a proposed rule of the United States Department of Health, Education and Welfare appearing in 38 Fed. Reg. 313-81 (1973) defining “Health Care Facilities”. The definition included “facilities providing surgical treatment to patients not requiring hospitalization (surgi-centers), which are not part of a hospital but which are organized and operated to provide medical care to out-patients”.4 Other exhibits included magazine and medical journal articles, letters and a television transcript which used the term “surgicen-ter”.5

Contentions on Appeal

Appellant contends that it “coined an arbitrary and fanciful word through the combination of two common or ordinary words” and that the trademark Surgicenter is neither generic nor descriptive. It argues that the district court erred in failing to address properly the issue of genericness, used an analysis of descriptiveness to conclude that the word is generic, used “a scalpel technique” as a method of analysis, misapplied the burden of proof, and its opinion is contrary to case law with respect to combination of an abbreviated word.

Summary Judgment

Summary judgment is appropriate where no material issues of fact exist and where a party is entitled to judgment as a matter of law. Rule 56(c), F.R.Civ.P. Here the parties made cross-motions for summary judgment following extensive discovery. As appellant states in its reply brief:

[1014]*1014The ease was submitted on stipulated facts and the parties agreed that there were no genuine issues of material fact. Where the matter is submitted to the court based upon affidavits, exhibits and certain stipulated facts, and where no testimony was taken, the determination by the court is a question of law, readily reviewable by the appellate court. .
It is this legal proposition [the conclusion that two abbreviated, ordinary words into a single word created a generic term] which appellant requests this court to review along with other issues of law raised in appellant’s opening brief.

In other words, this was a trial on a stipulated record and was so intended by the parties.6 There are no genuine issues of material facts. It is a proper case for disposition through summary judgment.7

Validity of the Service Mark

(a) Effect of Registration

15 U.S.C. § 1057(b) provides that:

A certificate of registration of a mark . shall be prima facie evidence of the validity of the registration, registrant’s ownership of the mark, and of registrant’s exclusive right to use the mark in commerce in connection with the goods or services specified in the certificate, subject to any conditions and limitations stated therein.

The district court properly recognized that a “properly registered service mark is presumed to be valid”.8

(b) Categories of Marks

The cases identify four categories of terms with respect to trademark protection: (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or fanciful. As the district court correctly noted, the lines of demarcation are not always clear, and the “entire area of trade or service marks . is fraught with difficulties and ambiguities”.9

The basic principles of trademark law, including a description of the four categories of mark, are set forth in Abercrombie & Fitch Co. v. Hunting World, Inc., 537 F.2d 4, 9-11 (2 Cir. 1976).

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Cite This Page — Counsel Stack

Bluebook (online)
601 F.2d 1011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/surgicenters-of-america-inc-an-arizona-corporation-v-medical-dental-ca9-1979.