Wallpaper Manufacturers, Ltd. v. Crown Wallcovering Corp.

680 F.2d 755, 214 U.S.P.Q. (BNA) 327, 1982 CCPA LEXIS 128
CourtCourt of Customs and Patent Appeals
DecidedJune 17, 1982
DocketAppeal No. 81-550
StatusPublished
Cited by38 cases

This text of 680 F.2d 755 (Wallpaper Manufacturers, Ltd. v. Crown Wallcovering Corp.) 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
Wallpaper Manufacturers, Ltd. v. Crown Wallcovering Corp., 680 F.2d 755, 214 U.S.P.Q. (BNA) 327, 1982 CCPA LEXIS 128 (ccpa 1982).

Opinions

NIES, Judge.

This appeal is from the decision of the Trademark Trial and Appeal Board (board)1 granting a petition to cancel Reg.No. 620,3962 for the trademark CROWN for wallpaper on the ground of abandonment. We reverse.

Background

On July 23, 1975, appellee, Crown Wall-covering Corporation (CWC), a New York corporation, filed a petition to cancel the registration of CROWN for wallpaper owned by appellant, The Wall Paper Manufacturers Limited (WPML), a corporation of the United Kingdom.

In the petition, as amended,3 CWC alleged that for many years it has been using the corporate name Crown Wallcovering Corp., its trade name CROWN WALLCOV-ERING, and its trademark CROWN in connection with the manufacture, sale and distribution of wallcoverings, including wallpapers; and that CROWN has become and now is the means by which CWC’s wallcov-erings are known and their source or origin [758]*758identified. As grounds for cancellation, CWC alleged (1) that prior to CWC’s first use of CROWN, or subsequently, WPML had discontinued use of CROWN as a trademark for wallpaper with intent not to resume use of the mark; and, (2) that for the purpose of obtaining a right of incontestability under 15 U.S.C. § 1065, WPML had filed an affidavit on July 17, 1961, falsely asserting continuous use of its trademark CROWN during the preceding five years.

Extensive evidence was submitted by both parties in the form of depositions and accompanying exhibits of advertising, wallpaper books, packaging, and sales figures, to show the manner and extent of their respective uses of CROWN in connection with wallcoverings.

The record shows that WPML is one of the largest wallpaper manufacturers in the world and CROWN is one of its principal trademarks. The testimony of Eric Baver-stoek, secretary of WPML, was that CROWN has been used throughout the world since 1930, excluding the war years. A summary of its business in the United States under the mark from 1957 to March 1975 showed sales in each year, ranging from a low of £ 4,816 in 1968 to a high of £ 240,612 for fiscal year ending March 1975, and totalling £ 755,422 for the entire period.

Gilbert Goodman, a resident of Canada, is the president of CWC, a New York corporation with offices in New York City. Since 1945, Mr. Goodman has been active in a family business, Crown Wall Paper Company, in Toronto, Canada. The exact relationship between the Canadian corporation and the New York corporation is not clear. Much of the advertising put in evidence by appellee carries the names of both companies and Mr. Goodman’s testimony, as well as the testimony of other witnesses, does not, in many instances, distinguish between the two.4

CWC is not a manufacturer but converts its own line of goods5 and is a distributor of imported goods of others. The record establishes that CWC has continuously, since 1964, used Crown in its company name. The company name is displayed on sample books and goods of others, which it handles as a distributor, i.e., in legends such as “Imported by Crown Wallcovering Corp.” on the DECORENE and REGALIA lines of Storey Brothers & Company Limited. CROWN VINYL was used on labels for wallpaper and instruction leaflets beneath REGALIA in the early 1970’s but was stopped in 1975 when WPML made an objection to use of this mark to Storey Brothers, the British manufacturer and supplier to both the U.S. and Canadian companies of Mr. Goodman. CWC has also identified its business by the trade names “Crown” and “Crown Wallcovering” in advertising. It has used CROWN FOILS as a trademark for wallcovering from time to time or possibly continuously since 1965-66. CROWN has been displayed on labels for wallcover-ings called DECOR Photowalls since sometime after 1970. CWC’s overall business has increased from $12,000 in 1964 to $1,250,000 in 1973 and to over $1,900,000 in 1975. No specific figures are given for CROWN FOIL or any CROWN brand products.

With respect to the allegations of abandonment based on WPML’s non-use of the mark CROWN, the board said:

Petitioner argued, with some vigor, that even conceding that there were some sales of wallcoverings under the trademark “CROWN” in the United States by respondent, they were insufficient to avoid abandonment as a result of nonuse coupled with an intention not to resume use, or nonuse for two consecutive years, because the quantum of use was very small both in absolute terms and in relation to respondent’s worldwide sales.
sf: ij:
Our discussion of the evidence shows that, starting at least as early as 1948, respondent has made commercial sales of [759]*759wallcoverings marked with the trademark “CROWN” to the United States. The sales were effected until the mid-1970’s through independent distributors who, at least through the “LANCAST-RIA” collections, participated in the selection of the papers to be included in the various offerings. Since about the mid-1970’s, sales have been made through companies under common corporate control with respondent.
It may be true that the “LANCAST-RIA” collections were promoted and sold under that name, but as discussed above, that does not denigrate the trademark significance of “CROWN”, which was printed or stamped on the selvage or on the back or on the label of the wallcover-ings. There is no rule of law that the owner of a trademark must reach a particular level of success, measured either by the size of the market or by its own total worldwide sales, to avoid abandoning a mark.
The law on what is needed to maintain the right to a mark against a charge of nonuse was explained in La Societe Ano-nyme des Parfums le Galion v. Jean Pa-tou, Inc., [495 F.2d 1265] 181 USPQ 545 (2nd Cir., 1974). The important facts were that Patou, the American company, used its registration of “SNOB” for perfume to exclude from this country the “SNOB” perfume sold by le Galion in a number of countries while Patou itself used the mark only to the extent of selling 89 bottles of'perfume in a period of twenty-one years without ever making a serious effort to merchandise its product. In view of this situation, the Court said, at 181 USPQ 548:
“Adoption and a single use of the mark may be sufficient to entitle the user to register the mark,. . . But more is required to sustain the mark against a charge of nonuse. To prove bona fide usage, the proponent of the trademark must demonstrate that his use of the mark has been deliberate and continuous, not sporadic, casual or transitory [citations omitted].”
Respondent’s [WPML’s] use was certainly deliberate; it was planned, purposeful, and ... profitable. The use was continuous; it could not remotely be described as sporadic, casual or transitory. *******
Accordingly, we hold that respondent did not abandon its trademark “CROWN” because of nonuse for any period of time... .

CWC’s failure to prove the allegations of. its petition, however, did not end the matter.

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680 F.2d 755, 214 U.S.P.Q. (BNA) 327, 1982 CCPA LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallpaper-manufacturers-ltd-v-crown-wallcovering-corp-ccpa-1982.