In Re: Detroit Athletic Co. , 903 F.3d 1297 ( 2018 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    IN RE: DETROIT ATHLETIC CO.,
    Appellant
    ______________________
    2017-2361
    ______________________
    Appeal from the United States Patent and Trademark
    Office, Trademark Trial and Appeal Board in No.
    86625093.
    ______________________
    Decided: September 10, 2018
    ______________________
    KATHRYN R. SPRAY, Wright Beamer, Farmington
    Hills, MI, argued for appellant.
    THOMAS L. CASAGRANDE, Office of the Solicitor, United
    States Patent and Trademark Office, Alexandria, VA,
    argued for appellee Andrei Iancu. Also represented by
    CHRISTINA J. HIEBER, THOMAS W. KRAUSE, JOSEPH MATAL.
    ______________________
    Before O’MALLEY, REYNA, and HUGHES, Circuit Judges.
    O’MALLEY, Circuit Judge.
    Detroit Athletic Co. (“DACo”) appeals from a decision
    of the Trademark Trial and Appeal Board affirming the
    Patent and Trademark Office’s refusal to register
    DETROIT ATHLETIC CO. for sports apparel retail
    services. In that decision, the Board concluded that
    2                                IN RE: DETROIT ATHLETIC CO.
    DACo’s mark is likely to be confused with the third-party
    mark DETROIT ATHLETIC CLUB, registered for cloth-
    ing goods. See In re Detroit Athletic Co., No. 86625093,
    
    2017 WL 2876815
     (T.T.A.B. June 2, 2017). Because the
    Board’s conclusion is predicated on factual findings sup-
    ported by substantial evidence, we affirm.
    I. BACKGROUND
    DACo is a “sports specialty shop” that sells souvenirs
    and apparel associated with Detroit professional sports
    teams. J.A. 85. Since at least 2004, DACo has been using
    the DETROIT ATHLETIC CO. mark in connection with
    its retail services.
    In May 2015, DACo filed an application to register the
    standard character mark DETROIT ATHLETIC CO. on
    the Principal Register for “[o]n-line retail consignment
    stores featuring sports team related clothing and apparel;
    [r]etail apparel stores; [r]etail shops featuring sports team
    related clothing and apparel; [r]etail sports team related
    clothing and apparel stores.” Detroit Athletic, 
    2017 WL 2876815
    , at *1 & n.1. In response to a non-final refusal,
    however, DACo disclaimed ATHLETIC CO. and amended
    the application to seek registration on the Supplemental
    Register.
    Thereafter, the examining attorney refused registra-
    tion of the mark under Section 2(d) of the Lanham Act, 
    15 U.S.C. § 1052
    (d), finding that DETROIT ATHLETIC CO.
    is likely to be confused with DETROIT ATHLETIC
    CLUB, which is registered on the Principal Register for
    “[c]lothing, namely athletic uniforms, coats, golf shirts,
    gym suits, hats, jackets, sweat pants, sweat shirts, polo
    shirts, and T-shirts.” 1 Id. at *1. The latter mark is owned
    by the Detroit Athletic Club, a private social club in
    Detroit originally “organized in 1887 as a place for men to
    1   The wording ATHLETIC CLUB is disclaimed.
    IN RE: DETROIT ATHLETIC CO.                               3
    congregate and enjoy watching or participating in numer-
    ous sporting events.” J.A. 66.
    The Board affirmed, concluding that, “because the
    marks are similar, the goods and services are related, and
    the channels of trade and consumers overlap,” consumers
    are likely to be confused by the marks. Detroit Athletic
    Club, 
    2017 WL 2876815
    , at *6. DACo appealed to this
    court, and we have jurisdiction under 
    28 U.S.C. § 1295
    (a)(4)(B).
    II. DISCUSSION
    Under Section 2(d) of the Lanham Act, a mark may be
    refused registration if it “so resembles a mark registered
    in the Patent and Trademark Office[] . . . as to be likely,
    when used on or in connection with the goods of the
    applicant, to cause confusion[.]” 
    15 U.S.C. § 1052
    (d).
    Likelihood of confusion is a legal determination based on
    underlying findings of fact. In re Viterra Inc., 
    671 F.3d 1358
    , 1361 (Fed. Cir. 2012). We review the Board’s legal
    determination without deference and its factual findings
    for substantial evidence. 
    Id.
     Substantial evidence is
    “such relevant evidence as a reasonable mind would
    accept as adequate to support a conclusion.” 
    Id.
     (internal
    quotation marks omitted).
    In the Patent and Trademark Office—and in appeals
    therefrom—likelihood of confusion is determined by
    assessing the relevant factors set forth in In re E. I.
    DuPont de Nemours & Co., 
    476 F.2d 1357
     (CCPA 1973). 2
    2   Those factors are: (1) the similarity or dissimilar-
    ity of the marks in their entireties as to appearance,
    sound, connotation, and commercial impression; (2) the
    similarity or dissimilarity and nature of the goods or
    services as described in an application or registration or
    in connection with which a prior mark is in use; (3) the
    similarity or dissimilarity of established, likely-to-
    4                                 IN RE: DETROIT ATHLETIC CO.
    See Juice Generation, Inc. v. GS Enters. LLC, 
    794 F.3d 1334
    , 1338 (Fed. Cir. 2015). The DuPont factors deemed
    relevant by the Board in this case are: the (A) similarity
    or dissimilarity of the marks in their entireties as to
    appearance, sound, connotation, and commercial impres-
    sion (factor 1); (B) similarity or dissimilarity and nature
    of the goods or services as described in an application or
    registration (factor 2); (C) similarity or dissimilarity of
    established, likely-to-continue trade channels (factor 3);
    and (D) the length of time during and conditions under
    which there has been concurrent use without evidence of
    actual confusion (factor 8).
    We address the Board’s ruling with respect to each of
    these factors below.
    A. Similarity or Dissimilarity of the Marks (Factor 1)
    The first DuPont factor considers “[t]he similarity or
    dissimilarity of the marks in their entireties as to appear-
    continue trade channels; (4) the conditions under which
    and buyers to whom sales are made—i.e., “impulse” vs.
    careful, sophisticated purchasing; (5) the fame of the prior
    mark (sales, advertising, length of use); (6) the number
    and nature of similar marks in use on similar goods;
    (7) the nature and extent of any actual confusion; (8) the
    length of time during and conditions under which there
    has been concurrent use without evidence of actual confu-
    sion; (9) the variety of goods on which a mark is or is not
    used (house mark, “family” mark, product mark); (10) the
    market interface between applicant and the owner of a
    prior mark; (11) the extent to which applicant has a right
    to exclude others from use of its mark on its goods;
    (12) the extent of potential confusion—i.e., whether de
    minimis or substantial; and (13) any other established
    fact probative of the effect of use. DuPont, 476 F.2d at
    1361.
    IN RE: DETROIT ATHLETIC CO.                                5
    ance, sound, connotation and commercial impression.”
    DuPont, 476 F.2d at 1361. Here, the Board found that the
    DETROIT ATHLETIC CO. and DETROIT ATHLETIC
    CLUB marks “are nearly identical in terms of sound,
    appearance and commercial impression.” Detroit Athletic,
    
    2017 WL 2876815
    , at *2. That finding is supported by
    substantial evidence.
    As the Board noted, both marks consist of three words
    beginning with the identical phrase “Detroit Athletic” and
    ending with one-syllable “C” words (i.e., “Co.” and “Club”).
    
    Id.
     Both marks, moreover, conjure an image of sporting
    goods or services having a connection to Detroit. When
    viewed in their entireties, the marks reveal an identical
    structure and a similar appearance, sound, connotation,
    and commercial impression. These similarities go a long
    way toward causing confusion among consumers. See In
    re Nat’l Data Corp., 
    753 F.2d 1056
    , 1060 (Fed. Cir. 1985)
    (finding similarity between CASH MANAGEMENT
    ACCOUNT         and    THE      CASH       MANAGEMENT
    EXCHANGE because they “are, in large part, identical in
    sound and appearance and have a general similarity in
    cadence”); Van Pelt & Brown, Inc. v. John Wyeth & Bro.,
    Inc., 
    161 F.2d 244
    , 246 (CCPA 1947) (finding similarity
    where both marks “have the same number of syllables,
    the suffix of each is pronounced the same, when spoken
    both have the same cadence and have a very little distin-
    guishable difference in sound”).
    The identity of the marks’ initial two words is particu-
    larly significant because consumers typically notice those
    words first. See Palm Bay Imps., Inc. v. Veuve Clicquot
    Ponsardin Maison Fondee en 1772, 
    396 F.3d 1369
    , 1372
    (Fed. Cir. 2005) (finding similarity between VEUVE
    ROYALE and two VEUVE CLICQUOT marks in part
    because VEUVE “remains a ‘prominent feature’ as the
    first word in the mark and the first word to appear on the
    label”); Century 21 Real Estate Corp. v. Century Life of
    Am., 
    970 F.2d 874
    , 876 (Fed. Cir. 1992) (finding similarity
    6                               IN RE: DETROIT ATHLETIC CO.
    between CENTURY 21 and CENTURY LIFE OF
    AMERICA in part because “consumers must first notice
    th[e] identical lead word”). Indeed, in view of the marks’
    structural similarity, the lead words are their dominant
    portion and are likely to make the greatest impression on
    consumers. See id.; see also 4 J. Thomas McCarthy,
    McCarthy on Trademarks and Unfair Competition
    § 23:42, at 23-245 (5th ed. 2018) (“It is appropriate in
    determining the question of likelihood of confusion to give
    greater weight to the important or ‘dominant’ parts of a
    composite mark, for it is that which may make the great-
    est impression on the ordinary buyer.”). This likeness
    weighs heavily in the confusion analysis, and the Board
    did not err in so finding. 3
    DACo nevertheless argues that the Board failed to
    consider the marks in their entireties and instead empha-
    sized the similarity between the marks’ first two words
    while downplaying the differences between their terminal
    words. According to DACo, the differences engendered by
    the words “Co.” and “Club” would allow consumers to
    distinguish between the marks. We disagree on both
    counts. First, the Board reiterated that it was assessing
    the marks “in their entireties” and proceeded to do just
    that. Detroit Athletic, 
    2017 WL 2876815
    , at *2; see also
    id. at *3 (“[V]iewed as a whole, the similarities between
    the marks in appearance, sound, connotation and com-
    mercial impression[] . . . outweigh the dissimilarities.”).
    3   The Board acknowledged that “the wording
    DETROIT ATHLETIC is itself conceptually weak” insofar
    as DETROIT is geographically descriptive and
    ATHLETIC is merely descriptive, but the Board neverthe-
    less found that the identical wording at the beginning of
    the marks “lessens the possible influence of differing
    wording at the end.” Detroit Athletic, 
    2017 WL 2876815
    ,
    at *2. We see no reversible error in this finding.
    IN RE: DETROIT ATHLETIC CO.                                 7
    Second, while it is true that the words “Co.” and
    “Club” technically differentiate the marks, those words do
    little to alleviate the confusion that is likely to ensue.
    Both words are descriptive insofar as they merely de-
    scribe the business form of the entity that owns the
    marks. See Goodyear’s Rubber Mfg. Co. v. Goodyear
    Rubber Co., 
    128 U.S. 598
    , 602–03 (1888) (noting that the
    addition of the word “Company” indicates only the busi-
    ness form of the entity); cf. McCarthy on Trademarks
    § 23:49, at 23-279 (“Tacking on a generic business entity
    name such as ‘company,’ or ‘Inc.’ or ‘Partners’ will not
    usually avoid a likelihood of confusion to an otherwise
    confusingly similar mark.”). Indeed, both “Co.” and
    “Club” were disclaimed in DACo’s application and the
    Detroit Athletic Club’s registration, respectively. See J.A.
    33 (requiring DACo to disclaim ATHLETIC CO. “because
    such wording appears to be generic in the context of
    applicant’s services”).
    Those words are therefore unlikely to change the
    overall commercial impression engendered by the marks.
    See Hewlett-Packard Co. v. Packard Press, Inc., 
    281 F.3d 1261
    , 1266 (Fed. Cir. 2002) (“Given the descriptive nature
    of the disclaimed word ‘Technologies,’ the Board correctly
    found that the word ‘Packard’ is the dominant and distin-
    guishing element of PACKARD TECHNOLOGIES.”);
    Cunningham v. Laser Golf Corp., 
    222 F.3d 943
    , 947 (Fed.
    Cir. 2000) (finding similarity between LASER for golf
    clubs and golf balls and LASERSWING for golf practice
    devices, and noting that “the term ‘swing’ is both common
    and descriptive” and therefore “may be given little weight
    in reaching a conclusion on likelihood of confusion” (inter-
    nal quotation marks omitted)); cf. McCarthy on Trade-
    marks § 23:50, at 23-283 (merely adding “a generic,
    descriptive or highly suggestive term[] . . . is generally not
    sufficient to avoid confusion”).
    To be sure, the mere fact that “Co.” and “Club” were
    disclaimed does not give one license to simply ignore those
    8                                IN RE: DETROIT ATHLETIC CO.
    words in the likelihood of confusion analysis. “This is so
    because confusion is evaluated from the perspective of the
    purchasing public, which is not aware that certain words
    or phrases have been disclaimed.” Shen Mfg. Co. v. Ritz
    Hotel, Ltd., 
    393 F.3d 1238
    , 1243 (Fed. Cir. 2004); Nat’l
    Data, 
    753 F.2d at 1059
     (“The technicality of a disclaimer
    in National’s application to register its mark has no legal
    effect on the issue of likelihood of confusion. The public is
    unaware of what words have been disclaimed during
    prosecution of the trademark application at the PTO.”
    (footnote omitted)). Thus, the Board must consider the
    mark “in its entirety, including the disclaimed portion.”
    Viterra, 
    671 F.3d at 1367
    .
    But, “in articulating reasons for reaching a conclusion
    on the issue of confusion, there is nothing improper in
    stating that, for rational reasons, more or less weight has
    been given to a particular feature of a mark, provided the
    ultimate conclusion rests on consideration of the marks in
    their entireties.” Nat’l Data, 
    753 F.2d at 1058
    . As de-
    scribed above, the non-source identifying nature of the
    words “Co.” and “Club” and the disclaimers thereof consti-
    tute rational reasons for giving those terms less weight in
    the analysis. Thus, while it would be impermissible to
    ignore the words outright, the Board did not err in focus-
    ing on the other, more dominant portions of the marks.
    See In re Dixie Rests., Inc., 
    105 F.3d 1405
    , 1407 (Fed. Cir.
    1997) (finding that the dominant part of applicant’s mark,
    THE DELTA CAFE, was the word “Delta” in part because
    the generic word “cafe” was disclaimed); McCarthy on
    Trademarks § 23:42, at 23-248 (“The fact that in a regis-
    tration, certain descriptive or generic terms are dis-
    claimed indicates that those terms are less significant and
    the other parts of the mark are the dominant parts that
    will impact most strongly on the ordinary buyer.”).
    This case is therefore distinguishable from Juice Gen-
    eration, on which DACo relies. In that case, the Board
    found a likelihood of confusion between PEACE LOVE
    IN RE: DETROIT ATHLETIC CO.                              9
    AND JUICE for juice bars and PEACE & LOVE for
    restaurants. That conclusion was predicated on the
    Board’s declaration that the “dominant portion” of the
    former mark was “virtually identical” to the latter mark,
    and its conclusory statement that “the additional dis-
    claimed word ‘JUICE’ . . . do[es] not serve to sufficiently
    distinguish” the marks. 794 F.3d at 1341 (internal quota-
    tion marks omitted). We vacated that ruling, finding that
    the Board did not adequately consider whether the marks
    convey distinct meanings nor set forth an analysis show-
    ing that it in fact considered the disclaimed term. See id.
    In so ruling, however, we made clear that the Board “may
    properly afford more or less weight to particular compo-
    nents of a mark for appropriate reasons” as long as it
    “view[s] the mark as a whole.” Id. As explained above,
    the Board here considered the marks as a whole. And,
    significantly, rather than simply dismissing “Co.” and
    “Club” out-of-hand as in Juice Generation, the Board
    proffered rational reasons why those words, as mere
    business identifiers, do not sufficiently distinguish the
    marks.
    Finally, the record evidence shows that, regardless of
    whether “Co.” and “Club” were disclaimed, they do not
    serve source-identifying functions. Several third-party
    registrations proffered by the examining attorney, for
    example, establish that many clubs, including the Detroit
    Athletic Club itself, are corporations. This evidence
    suggests that “Co.” and “Club” are not mutually exclusive.
    Thus, as the Board noted, the fact that an entity does
    business as a club does not foreclose its existence as a
    corporation. See Detroit Athletic, 
    2017 WL 2876815
    , at
    *2–3. The words “Co.” and “Club” therefore do not distin-
    guish the marks in the manner that DACo urges. 4
    4  DACo attacks the third-party registrations, argu-
    ing that they use the terms “Co.” and “Club” in ways
    10                               IN RE: DETROIT ATHLETIC CO.
    Substantial evidence thus supports the Board’s find-
    ing that the marks are similar.
    B. Similarity or Dissimilarity and
    Nature of the Goods or Services (Factor 2)
    The second DuPont factor considers “[t]he similarity
    or dissimilarity and nature of the goods or services as
    described in an application or registration or in connec-
    tion with which a prior mark is in use.” DuPont, 476 F.2d
    at 1361. Here, the Board found that the clothing goods
    described in the Detroit Athletic Club’s registration are
    broad enough to cover “all types of clothing, which in-
    cludes sports teams’ clothing” sold by DACo. Detroit
    Athletic, 
    2017 WL 2876815
    , at *5. This finding, too, is
    supported by substantial evidence.
    The services described in DACo’s application relate to
    sports apparel and include “[o]n-line retail consignment
    stores featuring sports team related clothing and apparel;
    [r]etail apparel stores; [r]etail shops featuring sports team
    related clothing and apparel; [r]etail sports team related
    clothing and apparel stores.” The clothing sold through
    those services is a subset of the goods described in the
    Detroit Athletic Club’s registration, which include
    “[c]lothing, namely athletic uniforms, coats, golf shirts,
    gym suits, hats, jackets, sweat pants, sweat shirts, polo
    shirts, and T-shirts.” Put another way, the Detroit Ath-
    contrary to the terms’ common meanings. DACo cites to a
    laundry list of evidence that it alleges is more probative of
    how consumers would perceive the marks at issue. But
    the third-party registrations were proffered merely to
    show that “club” trademarks can be owned by corpora-
    tions, which refutes DACo’s claim that the word “Club”
    tells the consumer that one entity is a club, while “Co.”
    conveys that the other entity is a corporation. According-
    ly, DACo’s arguments on this point are unpersuasive.
    IN RE: DETROIT ATHLETIC CO.                                11
    letic Club’s clothing goods are “very general” in nature
    and cover “all types of clothing,” including the clothing
    sold through DACo’s sports apparel retail services. De-
    troit Athletic, 
    2017 WL 2876815
    , at *4–5.
    Thus, while the goods and services are not identical,
    they substantially overlap, which weighs in favor of
    finding a likelihood of confusion. See Hewlett-Packard,
    
    281 F.3d at 1268
     (finding confusion to be likely between
    HEWLETT PACKARD and PACKARD TECHNOLOGIES
    where “several of HP’s registrations cover goods and
    services that are closely related to the broadly described
    services that Packard Press seeks to register”); In re
    Hyper Shoppes (Ohio), Inc., 
    837 F.2d 463
    , 464 (Fed. Cir.
    1988) (“[A]pplicant’s ‘general merchandise store services’
    would include the sale of furniture . . . . What else it sells
    is irrelevant; there is overlap.”).
    Indeed, the record evidence shows that several third-
    party apparel retailers—i.e., adidas, Hanes, Nike, and
    Puma—sell clothing bearing their own marks in addition
    to clothing bearing sports team names and logos. This
    evidence suggests that consumers are accustomed to
    seeing a single mark associated with a source that sells
    both its own branded clothing (as does the Detroit Athlet-
    ic Club) as well as sports-teams-branded clothing (as does
    DACo). See Hewlett-Packard, 
    281 F.3d at 1267
     (stating
    that evidence that “a single company sells the goods and
    services of both parties, if presented, is relevant to a
    relatedness analysis”); In re Halo Leather Ltd., No. 2017-
    1849, 
    2018 WL 2974462
    , at *4 (Fed. Cir. June 13, 2018)
    (per curiam) (finding likelihood of confusion where the
    record evidence showed that “the goods come from the
    same sources under one mark” and that “consumers are
    accustomed to seeing the applied-for and registered goods
    originating from the same source”). In view of this evi-
    dence, the Board did not err in finding similarity between
    the respective goods and services.
    12                               IN RE: DETROIT ATHLETIC CO.
    DACo objects to this analysis, pointing out that DA-
    Co’s application describes services in International Class
    35, while the Detroit Athletic Club’s registration describes
    goods in International Class 25. But that difference does
    not alter our conclusion. Classification is solely for the
    “convenience of Patent and Trademark Office administra-
    tion,” 
    15 U.S.C. § 1112
    , and “is wholly irrelevant to the
    issue of registrability under section 1052(d), which makes
    no reference to classification,” Jean Patou, Inc. v. Theon,
    Inc., 
    9 F.3d 971
    , 975 (Fed. Cir. 1993). It is therefore well
    established that “confusion may be likely to occur from
    the use of the same or similar marks for goods, on the one
    hand, and for services involving those goods, on the other.”
    Trademark       Manual       of    Examining      Procedure
    ¶ 1207.01(a)(ii) (emphases added) (citing Hyper Shoppes,
    
    837 F.2d at 464
    ). Indeed, we have held that confusion is
    likely where one party engages in retail services that sell
    goods of the type produced by the other party, as here.
    See Hyper Shoppes, 
    837 F.2d at
    464–65 (finding similarity
    between furniture and “general merchandise store ser-
    vices,” and rejecting the distinction between goods and
    services as having “little or no legal significance”). Thus,
    that the goods and services at issue fall within different
    classes does not preclude a finding that they are similar.
    DACo next argues that consumers would have little
    problem distinguishing between DACo’s clothing store
    and the Detroit Athletic Club’s private social club. While
    this may be true, it is largely irrelevant. The relevant
    inquiry in an ex parte proceeding focuses on the goods and
    services described in the application and registration, and
    not on real-world conditions. See In re i.am.symbolic, llc,
    
    866 F.3d 1315
    , 1325 (Fed. Cir. 2017) (“In reviewing the
    second factor, ‘we consider the applicant’s goods as set
    forth in its application, and the [registrant’s] goods as set
    forth in its registration.’” (quoting M2 Software, Inc. v. M2
    Commc’ns, Inc., 
    450 F.3d 1378
    , 1382 (Fed. Cir. 2006)).
    DACo’s arguments on this point are, thus, misdirected.
    IN RE: DETROIT ATHLETIC CO.                             13
    The registration for the DETROIT ATHLETIC CLUB
    mark describes clothing, not social clubs. The relevant
    inquiry, therefore, is whether consumers would believe
    that the Detroit Athletic Club—in its capacity as a seller
    of clothes—owns, sponsors, supplies, or is otherwise
    affiliated with DACo, a clothing store of a similar name.
    See Coach Servs., Inc. v. Triumph Learning LLC, 
    668 F.3d 1356
    , 1369 (Fed. Cir. 2012) (“[L]ikelihood of confusion can
    be found if the respective products are related in some
    manner and/or if the circumstances surrounding their
    marketing are such that they could give rise to the mis-
    taken belief that they emanate from the same source.”
    (internal quotation marks omitted)); see also Giant Food,
    Inc. v. Nation’s Foodserv., Inc., 
    710 F.2d 1565
    , 1570 (Fed.
    Cir. 1983) (“While we recognize that the average consum-
    er makes a distinction between fast-food restaurants and
    supermarkets, we are satisfied that, if the marks them-
    selves are confusingly similar, customers of the fast-food
    restaurant would be likely to believe that opposer owned,
    sponsored, or supplied that business.”). As described
    above, the Board did not err by finding that consumers
    are in fact likely to conflate the source of the goods and
    services covered by the two marks at issue here.
    Substantial evidence therefore supports the Board’s
    finding that the goods or services associated with each
    mark are similar.
    C. Similarity of Trade Channels (Factor 3)
    The third DuPont factor considers “[t]he similarity or
    dissimilarity of established, likely-to-continue trade
    channels.” DuPont, 476 F.2d at 1361. The Board found
    that the Detroit Athletic Club’s clothing comprises the
    type of goods likely to be sold through DACo’s sports
    apparel retail services.    Detroit Athletic, 
    2017 WL 2876815
    , at *5. Once again, this finding is supported by
    substantial evidence.
    14                               IN RE: DETROIT ATHLETIC CO.
    The registration contains no restrictions on the chan-
    nels of trade or classes of customers. As a result, the
    Detroit Athletic Club’s clothing is presumed to be sold in
    all normal trade channels to all the normal classes of
    purchasers. See i.am.symbolic, 866 F.3d at 1327 (“In the
    absence of meaningful limitations in either the applica-
    tion or the cited registrations, the Board properly pre-
    sumed that the goods travel through all usual channels of
    trade and are offered to all normal potential purchas-
    ers.”). The Board found that the “ordinary channels of
    trade for clothing items include all types of clothing
    stores, both online, and brick and mortar, including those
    that specialize in sports teams.” Detroit Athletic, 
    2017 WL 2876815
    , at *5. In other words, the Board found that
    the Detroit Athletic Club’s trade channels are broad
    enough to encompass DACo’s. We see no reversible error
    in this finding.
    DACo argues that the Detroit Athletic Club sells
    clothing only to its club members and only in its gift shop
    located onsite. DACo contends that this fact would pre-
    vent confusion among the public at large. Even if true,
    this assertion is, once again, irrelevant.        The third
    DuPont factor—like the second factor—must be evaluated
    with an eye toward the channels specified in the applica-
    tion and registration, not those as they exist in the real
    world. See i.am.symbolic, 866 F.3d at 1325–27; Stone
    Lion Capital Partners, L.P. v. Lion Capital LLP, 
    746 F.3d 1317
    , 1323 (Fed. Cir. 2014) (stating with respect to the
    third DuPont factor that “[i]t was proper[] . . . for the
    Board to focus on the application and registrations rather
    than on real-world conditions, because the question of
    registrability of an applicant’s mark must be decided on
    the basis of the identification of goods set forth in the
    application” (internal quotation marks omitted)). As
    described above, the registration does not set forth any
    restrictions on use and therefore “cannot be narrowed by
    testimony that the applicant’s use is, in fact, restricted to
    IN RE: DETROIT ATHLETIC CO.                              15
    a particular class of purchasers.” Stone Lion, 746 F.3d at
    1323 (internal quotation marks omitted). Indeed, the
    owner of an unrestricted registration is entitled to change
    its current trade channels at any time. See CBS Inc. v.
    Morrow, 
    708 F.2d 1579
    , 1581 (Fed. Cir. 1983). Thus, we
    may not assume that the club will never sell clothing
    online or through third-party distributors.
    To the extent DACo objects to the breadth of the goods
    or channels of trade described in the Detroit Athletic
    Club’s registration, that objection amounts to an attack
    on the registration’s validity, an attack better suited for
    resolution in a cancellation proceeding. See 
    15 U.S.C. § 1068
     (stating that, in such proceedings, the Patent and
    Trademark Office may “modify the application or regis-
    tration by limiting the goods or services specified there-
    in”). “The present ex parte proceeding is not the proper
    forum from which to launch such an attack.” In re Calgon
    Corp., 
    435 F.2d 596
    , 598 (CCPA 1971); see also Dixie
    Rests., 
    105 F.3d at 1408
     (refusing to let an ex parte appli-
    cant narrow the scope of goods described in the cited
    registration).
    Substantial evidence therefore supports the Board’s
    finding that the trade channels for each mark overlap.
    D. Evidence of a Lack of Actual Confusion (Factor 8)
    Finally, the eighth DuPont factor considers “[t]he
    length of time during and conditions under which there
    has been concurrent use without evidence of actual confu-
    sion.” DuPont, 476 F.2d at 1361. Here, DACo submitted
    evidence purporting to show a lack of actual confusion,
    including an affidavit of a long-time customer attesting to
    his history of purchasing goods from DACo, as well as
    Internet search results and online customer reviews for
    each company. The Board rejected this evidence, finding
    that it lacked probative value. See Detroit Athletic, 
    2017 WL 2876815
    , at *6. Substantial evidence supports the
    Board’s findings.
    16                               IN RE: DETROIT ATHLETIC CO.
    As an initial matter, the relevant test is likelihood of
    confusion, not actual confusion. Thus, while evidence
    that the consuming public was not actually confused is
    legally relevant to the analysis, it is not dispositive. This
    is particularly true in the context of an ex parte proceed-
    ing. Likelihood of confusion in this context can be estab-
    lished even in the face of evidence suggesting that the
    consuming public was not actually confused. See In re
    Majestic Distilling Co., 
    315 F.3d 1311
    , 1317 (Fed. Cir.
    2003) (“The lack of evidence of actual confusion carries
    little weight, especially in an ex parte context.” (citation
    omitted)).
    Further, DACo’s evidence does not establish a lack of
    confusion. The customer affidavit on which DACo relies is
    just four sentences in length and states only that the
    customer had been purchasing clothing at DACo’s store
    for the past sixteen years and understands that the word
    “Detroit” in DACo’s name refers to Detroit sports teams
    rather than the location in which the clothing is made.
    J.A. 57. The affidavit does not, however, mention the
    DETROIT ATHLETIC CLUB mark, let alone suggest a
    lack of confusion between the two marks. The Internet
    search results and online reviews fare no better. The
    search results show that the two companies do not appear
    together in online searches but speak only to how the
    search engine’s software processes the search terms. The
    online reviews reference consumers’ experiences with one
    company or the other, but not both. Neither piece of
    evidence establishes a lack of consumer confusion in
    other, more commercially meaningful contexts.
    Substantial evidence therefore supports the Board’s
    finding that DACo’s evidence purporting to show a lack of
    actual confusion was not sufficiently probative.
    E. Balancing the Factors
    The Board balanced the DuPont factors and concluded
    that, “because the marks are similar, the goods and
    IN RE: DETROIT ATHLETIC CO.                               17
    services are related, and the channels of trade and con-
    sumers overlap, . . . confusion is likely between Appli-
    cant’s mark DETROIT ATHLETIC CO. and the mark
    DETROIT ATHLETIC CLUB in the cited registration.”
    Detroit Athletic, 
    2017 WL 2876815
    , at *6. In view of the
    findings described above, we agree with this conclusion.
    DACo argues that the Board erred by not addressing
    all DuPont factors for which evidence was proffered. We
    disagree. It is well established that the Board need not
    consider every DuPont factor. See Citigroup Inc. v. Capi-
    tal City Bank Grp., Inc., 
    637 F.3d 1344
    , 1355 (Fed. Cir.
    2011) (“The T.T.A.B. is not required to discuss every
    DuPont factor and may find a single factor dispositive.”);
    Herbko Int’l, Inc. v. Kappa Books, Inc., 
    308 F.3d 1156
    ,
    1164 (Fed. Cir. 2002) (noting that the likelihood of confu-
    sion analysis may focus “on dispositive factors, such as
    similarity of the marks and relatedness of the goods”
    (internal quotation marks omitted)). To the extent the
    Board did not expressly address each evidentiary item
    proffered by DACo pertaining to the Detroit Athletic
    Club’s actual services, the Board was not required to do
    so; again, it is the scope of the club’s registration that is
    relevant in this context, not its actual practices.
    We therefore conclude that the Board did not err in
    balancing the relevant DuPont factors.
    III. CONCLUSION
    We have considered DACo’s remaining arguments and
    find them unpersuasive. Because substantial evidence
    supports each of the Board’s factual findings, and those
    findings inevitably lead to the conclusion that DETROIT
    ATHLETIC CO. and DETROIT ATHLETIC CLUB are
    likely to be confused, we affirm the Board’s ruling.
    AFFIRMED
    18                   IN RE: DETROIT ATHLETIC CO.
    COSTS
    No costs.
    

Document Info

Docket Number: 17-2361

Citation Numbers: 903 F.3d 1297

Filed Date: 9/10/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (18)

In Re Dixie Restaurants, Inc. , 105 F.3d 1405 ( 1997 )

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Citigroup Inc. v. Capital City Bank Group, Inc. , 637 F.3d 1344 ( 2011 )

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Shen Manufacturing Co., Inc. v. The Ritz Hotel Limited, ... , 393 F.3d 1238 ( 2004 )

Herbko International, Inc. v. Kappa Books, Inc. , 308 F.3d 1156 ( 2002 )

In Re Hyper Shoppes (Ohio), Inc. , 837 F.2d 463 ( 1988 )

Hewlett-Packard Company v. Packard Press, Inc. (Formerly ... , 281 F.3d 1261 ( 2002 )

Jean Patou, Inc. v. Theon, Inc. , 9 F.3d 971 ( 1993 )

M2 Software, Inc. v. M2 Communications, Inc. , 450 F.3d 1378 ( 2006 )

Cbs Inc. v. George Clifford Morrow , 708 F.2d 1579 ( 1983 )

In Re Majestic Distilling Company, Inc , 315 F.3d 1311 ( 2003 )

In Re Viterra Inc. , 671 F.3d 1358 ( 2012 )

Application of Calgon Corporation , 435 F.2d 596 ( 1971 )

Century 21 Real Estate Corporation v. Century Life of ... , 970 F.2d 874 ( 1992 )

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