Tatuaje Order

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    coggins Mailed: August 30, 2010Opposition No. 91185180

    Tatuaje Cigars, Inc.

    v.

    Nicaragua Tobacco Imports, Inc.

    Before Walters, Grendel, and Bergsman,Administrative Trademark Judges.

    By the Board:

    This case comes up on opposer's second motion for summary

    judgment (filed December 18, 2009) on applicant's pleaded

    defense of unclean hands.

    Background

    Opposer filed a notice of opposition against the

    registration of applicant's mark on the ground of priority and

    likelihood of confusion pursuant to Section 2(d) of the

    Trademark Act of 1946, 15 U.S.C. 1052(d). In the notice of

    opposition, opposer asserted ownership of Registration No.

    2836665 for the mark TATUAJE, in typed form, for "cigars," in

    Class 34.

    As an affirmative defense in the answer, applicant

    pleaded, inter alia, that:

    UNITED STATES PATENT AND TRADEMARK OFFITrademark Trial and Appeal BoardP.O. Box 1451Alexandria, VA 22313-1451

    THIS OPINION IS NOT A

    PRECEDENT OF THE TTAB

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    On information and belief, [o]pposer uses packagingfor its goods that include the mark "TATUAJE" alongwith and in proximity to markings that aredeceptive or deceptively misdescriptive regardingthe geographic origin, character, quality,composition, and/or source of those goods, and is

    therefore barred from relief by having uncleanhands.

    On January 28, 2009, opposer filed a motion for summary

    judgment on the sole pleaded ground of priority and likelihood

    of confusion. In an order dated September 17, 2009, the Board

    granted opposer's motion for summary judgment, in part, as to

    standing, priority, the similarity of parties' goods, the

    channels of trade, and the classes of purchasers.

    In the September 17, 2009 order, the Board noted that the

    parties had devoted much of their arguments in their briefs (on

    the first motion for summary judgment) to discussing each

    other's conduct, unclean hands, and fraud. The Board also

    noted that "a discussion of opposer's use of other terms on

    packaging for opposer's goods appears to be immaterial to this

    proceeding." (Order at pp. 4-5.) The Board resumed proceedings

    and reset the trial schedule. Opposer then filed the second

    motion for summary judgment.

    Motion for Summary Judgment

    As the Board stated in the September 17, 2009 order, a

    party is entitled to summary judgment when it has demonstrated

    that there are no genuine issues as to any material facts, and

    that it is entitled to judgment as a matter of law. Fed. R.

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    Civ. P. 56(c). The evidence must be viewed in a light

    favorable to the nonmoving party, and all justifiable

    inferences are to be drawn in the nonmovant's favor. Opryland

    USA Inc. v. The Great American Music Show, Inc., 970 F.2d 847,

    23 USPQ2d 1471 (Fed. Cir. 1992).

    By way of its second motion for summary judgment, opposer

    argues that it is entitled to judgment as a matter of law on

    applicant's affirmative defense of unclean hands.

    Specifically, opposer argues that the misconduct alleged by

    applicant (i.e., opposer's use of markings other than the

    TATUAJE mark) is unrelated to opposer's pleaded ground of

    priority and likelihood of confusion with opposer's TATUAJE

    mark.

    In opposition to the motion, applicant argues that opposer

    developed its trademark rights in the pleaded TATUAJE mark

    while using other deceptive or deceptively misdescriptive marks

    adjacent to and in conjunction with the TATUAJE mark; during

    examination of the application which matured into Registration

    No. 2836665, opposer submitted a specimen which did not show

    use of the other deceptive or deceptively misdescriptive marks

    even though opposer was at the time using those other marks on

    other packaging for its goods; and during the pendency of this

    opposition proceeding, opposer filed a new application for

    registration of the mark TATUAJE in a bad faith attempt to

    create further dispute between the parties.

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    Applicant supported its motion with various exhibits

    including photographs of one of opposer's cigar boxes and the

    specimen opposer submitted during examination of the

    application which matured into Registration No. 2836665.

    As noted above, opposer pleaded ownership of Registration

    No. 2836665 for the mark TATUAJE, in typed form for cigars.

    Opposer's registered mark is entitled to all of the

    presumptions of Trademark Act Section 7(b), 15 U.S.C.

    1057(b), including its validity and opposer's exclusive right

    to use the registered mark in commerce on the goods specified

    in the registration. As a matter of procedure, we note that in

    the absence of a counterclaim, applicant may not attack the

    validity of the registration. See Gor-Ray Limited v. Garay &

    Co., Inc., 167 USPQ 694, 695 (TTAB 1970); and Trademark Rule

    2.106(b)(2)(ii), 37 C.F.R. 2.106(b)(2)(ii). Moreover, as a

    matter of substance, even if applicant had filed a

    counterclaim, applicant's allegations do not support any

    cognizable ground for cancelling opposer's pleaded

    registration. See Trademark Act Section 14, 15 U.S.C. 1064.

    Importantly, we note that applicant's affirmative defense

    of unclean hands does not pertain to opposer's pleaded

    registered mark TATUAJE or to opposer's claim of likelihood of

    confusion. Rather, the proposed defense alleges misconduct in

    connection with opposer's alleged use and registration of other

    marks or designations and the propriety of the specimen

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    submitted in connection with the pleaded registration. The

    defense of unclean hands must be related to opposer's claim

    and, therefore, applicant has not asserted a viable affirmative

    defense of unclean hands. SeeTony Lama Company, Inc. v.

    Anthony Di Stefano, 206 USPQ 176 (TTAB 1980). See also VIP

    Foods, Inc. v. V.I.P. Food Products, 200 USPQ 105 (TTAB 1978),

    and cases cited therein.

    Opposer's claim does not depend on use of any mark other

    than the TATUAJE mark as shown in Registration No. 2836665 and,

    therefore, opposer's alleged use of other marks or

    designations, the legality of such use, or whether such other

    marks or designations were shown on opposer's specimens during

    the prosecution of its underlying application has no bearing

    upon the issue of likelihood of confusion with TATUAJE. We

    note that use of multiple marks in relation to goods is not

    precluded under the law. See General Foods Corporation v. Ito

    Yokado, Ltd., 219 USPQ 822 (TTAB 1983). Packaging for a

    product may contain multiple marks. See Safe-T Pacific Company

    v. Nabisco, Inc., 204 USPQ 307, 315 (TTAB 1979).

    As to applicant's argument that opposer's conduct during

    this opposition proceeding has been inequitable because opposer

    filed a new application for its TATUAJE mark, we note, first,

    that the pleaded affirmative defense makes no reference to such

    conduct and, second, that the conduct is unrelated to the

    ground for opposition. Moreover, there is no prohibition

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    against filing an intent-to-use application for a mark already

    used in commerce. According to Office practice, an applicant

    filing under Section 1(b) of the Trademark Act may assert dates

    of use that are earlier than the filing date of the application

    in an amendment to allege use or a statement of use. See TMEP

    903. Further, to the extent that applicant views opposer's

    later-filed application as an attempt to induce a prospective

    refusal under Section 2(d) of the Trademark Act, based on

    applicant's TATTOO application which is the subject of this

    opposition proceeding, or that applicant emphasizes the fact

    that the Examining Attorney did not cite applicant's TATTOO

    application against opposer's later-filed application, we

    remind applicant that the Board is not bound by an Examining

    Attorney's prior determination as to registrability. See

    McDonald's Corp. v. McClain, 37 USPQ2d 1274 (TTAB 1995).

    Upon careful consideration of the arguments and evidence

    presented by the parties, and drawing all inferences with

    respect to the motion in favor of applicant as the nonmoving

    party, we find that there is no genuine issue of material fact

    in regard to applicant's affirmative defense of unclean hands,

    and opposer is entitled to judgment in its favor on this

    defense. Even if we were to deny the instant motion for

    summary judgment in order to give applicant a chance to prove

    the pleaded allegations at trial, the allegations would not be

    material or sufficient to carry applicant's burden of proving

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    the affirmative defense of unclean hands. Accordingly,

    opposer's second motion for summary judgment is granted as to

    applicant's affirmative defense of unclean hands.1

    Procedural Note

    Inasmuch as the Board has determined two summary judgment

    motions in this case, the parties may not file another motion

    for summary judgment. This case will proceed to trial on the

    remaining issue of the similarity of the marks.

    Schedule

    Proceedings are resumed. Discovery is closed. Trial

    dates are reset on the following schedule.

    Plaintiff's Pretrial Disclosures 9/27/2010

    Plaintiff's 30-day Trial Period Ends 11/11/2010

    Defendant's Pretrial Disclosures 11/26/2010

    Defendant's 30-day Trial Period Ends 1/10/2011

    Plaintiff's Rebuttal Disclosures 1/25/2011Plaintiff's 15-day Rebuttal Period

    Ends 2/24/2011

    In each instance, a copy of the transcript of testimony

    together with copies of documentary exhibits, must be served

    on the adverse party within thirty days after completion of

    the taking of testimony. Trademark Rule 2.l25. Briefs

    shall be filed in accordance with Trademark Rules 2.128(a)

    1 The parties are reminded that evidence submitted in support ofor in opposition to a motion for summary judgment is of recordonly for consideration of that motion. Any such evidence to beconsidered at final hearing must be properly introduced duringthe appropriate trial period. See, for example, Levi Strauss &Co. v. R. Joseph Sportswear Inc., 28 USPQ2d 1464 (TTAB 1993).

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    and (b). An oral hearing will be set only upon request

    filed as provided by Trademark Rule 2.l29.