throbber
Trademark Trial and Appeal Board Electronic Filing System. httgj/estta.usQto.gov
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`
`91 1 92657
`
`Defendant
`Doctor's Associates Inc.
`
`RICHARD R MICHAUD
`MICHAUD KINNEY GROUP LLP
`306 INDUSTRIAL PARK ROAD, SUITE 206
`MIDDLETOWN, CT 06457-1532
`UNITED STATES
`
`mutch|er@mkgip.com, snyder@mkgip.com, enge|@mkgip.com,
`doo|an@mkgip.com, we|sh@mkgip.com, michaud@mkgip.com
`Defendant's Notice of Reliance
`
`Walter B Welsh
`
`we|sh@mkgIp com
`/Walter Welshl
`
`04/01/2012
`
`DAI'S Eleventh Notice of Re|iance.pdf (3 pages )(75061 bytes)
`Att. A to DA|'s Eleventh Notice of Reliance — APP 275.pdf ( 19 pages )(772499
`bytes)
`Att. B to DA|'s Eleventh Notice of Reliance — APP 025.pdf ( 5 pages )(399783
`bytes)
`Att. C to DA|'s Eleventh Notice of Reliance — APP 028.pdf ( 39 pages )(8558540
`bytes)
`Att. D to DA|'s Eleventh Notice of Reliance — APP 023.pdf ( 26 pages )(2468895
`bytes )
`
`Proceeding
`Party
`
`Correspondence
`Address
`
`Submission
`Filer's Name
`Filer's e-mail
`Signature
`Date
`Attachments
`
`Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov
`ESTTA464772
`ESTTA Tracking number:
`04/01/2012
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`91192657
`Defendant
`Doctor's Associates Inc.
`RICHARD R MICHAUD
`MICHAUD KINNEY GROUP LLP
`306 INDUSTRIAL PARK ROAD, SUITE 206
`MIDDLETOWN, CT 06457-1532
`UNITED STATES
`mutchler@mkgip.com, snyder@mkgip.com, engel@mkgip.com,
`doolan@mkgip.com, welsh@mkgip.com, michaud@mkgip.com
`Defendant's Notice of Reliance
`Walter B. Welsh
`welsh@mkgip.com
`/Walter Welsh/
`04/01/2012
`DAI'S Eleventh Notice of Reliance.pdf ( 3 pages )(75061 bytes )
`Att. A to DAI's Eleventh Notice of Reliance - APP 275.pdf ( 19 pages )(772499
`bytes )
`Att. B to DAI's Eleventh Notice of Reliance - APP 025.pdf ( 5 pages )(399783
`bytes )
`Att. C to DAI's Eleventh Notice of Reliance - APP 028.pdf ( 39 pages )(8558540
`bytes )
`Att. D to DAI's Eleventh Notice of Reliance - APP 023.pdf ( 26 pages )(2468895
`bytes )
`
`

`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`
`Opposition No. 91192657
`
`SHEETZ OF DELAWARE, INC.
`
`
`
`
`
`
`Opposer,
`
`
`
`
`
`
`
`v.
`
`
`
`
`
`
`
`
`DOCTOR’S ASSOCIATES INC.
`
`
`
`
`
`
`
`
`Applicant.
`
`
`
`
`
`
`
`
`
`
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`
`
`DAI’S ELEVENTH NOTICE OF RELIANCE
`
`
`
`Applicant Doctor’s Associates Inc. (“DAI” or “Applicant”) hereby gives notice pursuant
`
`to TBMP §§ 704-05, Trademark Rule 2.120, the Stipulation to Proceed Under ACR (Doc. No.
`
`60), and the Board’s Order granting the same (Doc. No. 61) that DAI intends to rely on the
`
`following evidence at trial:
`
`Applicant
`Exhibit
`APP 023
`
`APP 025
`APP 028
`APP 275
`
`Title
`
`Complaint in DAI v. Sheetz, Inc. et al. in 1:09cv88 (EDVA)
`Declaration of Mr. Robert Wilker
`Declaration of Tammy Dunkley of February 4, 2009
`Hearing Transcript
`
`
`
`
`
`
`
`
`
`1
`
`

`
`Respectfully Submitted,
`
`Attorney for Doctor’s Associates Inc.
`
`/s/ Walter Welsh
`Walter B. Welsh
`
`Michaud-Kinney Group LLP
`101 Centerpoint Road
`Suite 206
`Middletown, CT 06457
`Tel: (860) 632-7200
`
`Fax: (860) 632-8269
`welsh@mkgip.com
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`2
`
`Date: March 30, 2012
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`
`CERTIFICATE OF SERVICE AND FILING
`
`The undersigned hereby certifies that a copy of the DAI’S ELEVENTH NOTICE OF
`RELIANCE is being transmitted electronically to the Commissioner of Trademarks and is being
`served by overnight carrier on the attorney for Opposer at the following address:
`
`Roberta Jacobs-Meadway
`Eckert Seamans Cherin & Mellott, LLC
`Two Liberty Place
`50 South 16th Street
`22d floor
`Philadelphia PA 19102
`
`
`
`
`
`
`
`
`
`
`/s/ Walter Welsh
`Name:
`
`
`
`
`
`
`
`
`
`3
`
`
`
`March 30, 2012
`Date:
`
`
`
`
`
`
`
`

`
`UNITED STATES DISTRICT COURT
`EASTERN DISTRICT OF VIRGINIA
`ALEXANDRIA DIVISION
`
`DOCTOR'S ASSOCIATES,
`Plaintiff,
`
`INC.,
`
`V.
`
`)
`5 Docket No. 1:09-cv-88
`) Alexandria, Virginia
`
`§ February 6, 2009
`
`SHEETZ,
`
`INC., et al.,
`Defendants.
`
`10:00 a.m.
`
`)
`5
`
`TRANSCRIPT OF HEARING
`
`BEFORE THE HONORABLE CLAUDE M. HILTON
`
`UNITED STATES DISTRICT JUDGE
`
`APPEARANCES:
`
`For the Plaintiff:
`
`Paul Grandinetti, Esq.
`Rebecca J. Stempien, Esq.
`
`For the Defendants:
`
`Roberta Jacobs—Meadway, Esq.
`Edward J. Longosz, II, Esq.
`Sean McConnell, Esq.
`
`Court Reporter:
`
`Tracy L. Westfall, RPR, CMRS, CCR
`
`Proceedings reported by machine shorthand,
`by computer—aided transcription.
`
`transcript produced
`
`Tracy L. Westfall
`
`OCR—USDC/EDVA
`
`APP 27.5, Page 1 of 19
`
`10
`
`ll
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`‘l8
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`APP 275, Page 1 of 19
`
`

`
`P R O C E E D I N G S
`
`THE CLERK: Civil Action 09-88, Doctor's Associates,
`
`Inc. v. Sheetz, Inc., et al.
`
`MS. STEMPIEN: Good morning, Your Honor.
`
`Rebecca J.
`
`Stempien for the plaintiff. With me is Mr. Paul Grandinetti.
`
`Your Honor, we had moved for admission of
`
`Mr. Grandinetti pro hac on Wednesday to the clerk, but it hasn't
`
`quite worked its way up.
`
`I would orally move for his admission.
`
`THE COURT: All right.
`
`Your motion is granted.
`
`MR. LONGOSZ: Good morning, Your Honor.
`
`Edward Longosz
`
`on behalf of the Sheetz defendants. With me is my partner,
`
`Roberta Jacobs—Meadway, and also Sean McConnell.
`
`We'd likewise —— we'd moved for Ms. Jacobs—Meadway's
`
`admission earlier this week and the papers are before the Court.
`
`She will be giving the argument today, if it pleases the Court.
`
`THE COURT: Your motion is granted as well.
`
`MS.
`
`JACOBS-MEADWAY:
`
`Thank you, Your Honor.
`
`THE COURT: All right.
`
`MR. GRANDINETTI: Your Honor, may it please the Court,
`
`with the Court's permission, I'd like to pass up just a few
`
`documents.
`
`THE COURT: All right.
`
`MR. GRANDINETTI:
`
`The main documents are already in the
`
`record.
`
`I just thought separate copies might be a little easier
`
`for everybody to follow.
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`.23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 2 of 19
`
`APP 275, Page 2 of 19
`
`

`
`Oh, and if I may, after reading the response brief
`
`yesterday,
`
`I thought it might beneficial to pass copies of these
`
`letters up.
`
`They are not in the record and they're not
`
`particularly important regarding their content, but they do
`
`establish a date or two which might be useful as we discuss this
`
`matter.
`
`In particular, it seemed to me as though it might have
`
`been a little unclear, but the headquarters of Subway, which is
`
`Doctor's Associates,
`
`to the best of their knowledge first
`
`learned about the Sheetz advertisements on or around
`
`January 9th.
`
`The purpose of these two letters is to show that
`
`on January 14th,
`
`they sent out a letter regarding their
`
`concerns. They received their response on January 22nd.
`
`That‘s
`
`really the only purpose of these letters.
`
`The only other thing is that the letter from Eckert
`
`Seamans on the last page,
`
`third to last paragraph,
`
`talks about
`
`how the Sheetz advertising campaign is scheduled to terminate in
`
`about five to six weeks from right now.
`
`So it's really the only
`
`two pieces of information important there.
`
`Your Honor,
`
`the first page I passed up is, as I said,
`
`already in the record. This was Exhibit 3 to Subway's
`
`complaint. This is a photocopy of Subway's composite mark.
`
`After reading the response brief yesterday,
`
`I thought it might
`
`be beneficial to take a look at the composite mark and to go
`
`through what Subway is claiming trademark rights to. Forgive
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`‘ 24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 3 of 19
`
`APP 275, Page 3 of 19
`
`

`
`the grammar.
`
`Basically, Subway came up with a composite mark where
`
`they use some symbols and at least one word element that are
`
`somewhat unrelated. There's a hand,
`
`there's a dollar symbol
`
`with a numeral, and then there's the word footlong. This
`
`combination of different elements forms a composite mark. Any
`
`one particular element may or may not have a meaning, may have
`
`some descriptive nature, but there's a bit of a fanciful play
`
`here which has proved well for Subway, and one is is that they
`
`associate the word foot with a completely opposite symbol of the
`
`word hand.
`
`So it's somewhat fanciful.
`
`It's a bit of a play.
`
`They've chosen the word footlong as opposed to
`
`submarines, grinders,
`
`the many other words that these kinds of
`
`sandwiches can be called, and have even filed for a trademark
`
`registration for the word footlongs for their sandwiches.
`
`It's
`
`this grouping of symbols and often the word footlong that forms
`
`the composite mark.
`
`Subway began using this composite around May of 2008
`
`and it's had a lot of success, a lot of public recognition.
`
`For
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`.20
`
`that reason, I've passed up to the Court another copy of
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Enclosure 1 to Mr. Wilker's declaration, This is entitled Key
`
`Measures Summary. This document was not prepared for the
`
`purposes of this hearing. This is something that was internal
`
`to Subway.
`
`They were trying to figure out how was their
`
`campaign going, what was it that the public was recognizing.
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 4 of 19
`
`APP 275, Page 4 of 19
`
`

`
`If the Court would notice, at the top of the middle
`
`column is the composite mark that we just described:
`
`the hand,
`
`the dollar sign symbol, a numeral, and the word footlongs.
`
`Then
`
`also next to that is another symbol, mostly text, and that
`
`appears in many of the placards that Subway uses.
`
`The benefit that this particular exhibit gives us is
`
`that it does show that the use of the composite mark has been
`
`quite successful.
`
`The public does recognize it as coming from
`
`or designating the source of Subway for particular services and
`
`goods,
`
`that at least 41 percent of the public says that it could
`
`only be for Subway. That when the composite mark is used with
`the subway house brand, recognition goes up to 93 percent.
`
`The lower chart here shows the statistics of the
`
`recognition of these marks with just the hand cutout,
`
`the words
`
`$5 footlong,
`
`the 12-inch arrow,
`
`the orange background, and it
`
`shows what the public in general identifies with Subway
`
`regarding these composite marks and the various elements in the
`
`mark. Once again,
`
`this was not prepared for purposes of this
`
`hearing. This was just something that was internal which we
`
`were able to present to the Court in our main brief.
`
`Now, Sheetz is a good—sized retail oil company.
`
`They're a sophisticated company. This is not a mom-and—pop
`
`operation.
`
`They have, and they say this in their brief,
`
`they
`
`have for many years been developing their own branding.
`
`In
`
`particular, if you're familiar with it, I know we have one out
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 5 of 19
`
`APP 275, Page 5 of 19
`
`

`
`in Chantilly,
`
`they have these usually quite beautiful,
`
`distinctive buildings with these awnings, or whatever it is that
`
`you drive under when you're going to get your gas, and red is
`
`their color.
`
`If you've ever seen one of these stations, you
`
`remember red.
`
`The other thing is is at night they light up
`
`their stations like there's no tomorrow.
`
`It's like the sun.
`
`They have for many years been developing their own marks and
`
`their own brand identification.
`
`The point to that is that they don't -— a company that
`
`‘sophisticated and having those resources does not have to trade
`
`off or knock off somebody else's marks.
`
`If we can take a look at the other page I passed up, it
`
`is a copy, this is a copy of the Sheetz mark. This was Exhibit
`
`5 on Subway's complaint.
`
`The purpose of handing the Court this
`
`is to show that the composite mark that was adopted by Sheetz
`
`has the same key elements,
`
`the same design features,
`
`the same.
`
`word element; that is, a hand closely associated with the word
`
`foot in the word footlong.
`
`So it's the same play on words,
`
`the
`
`same fanciful connection.
`
`It also has the dollar symbol and it
`
`has a numeral.
`
`So it's the same composite elements, but also, and
`
`importantly, as far as trademark usage, it's in the same general
`
`relationship, spacial and geometric relationship. You've got
`
`the hand and the dollar sign,
`
`the numeral, sort of overlapping
`
`in close association with each other. They're off to —- as you
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR—USDC/EDVA
`
`APP 275, Page 6 of 19
`
`APP 275, Page 6 of 19
`
`

`
`1
`
`.look at it -— the left.
`
`Then across the banner you have the
`
`word footlong.
`
`What is interesting here is Sheetz, with its resources,
`
`could have done this many other ways.
`
`They could have been
`
`distinctive.
`
`They could have come up with their own branding.
`
`They could have come up with their own association and spacial
`
`arrangements.
`
`They could have separated the hand from the
`
`dollar symbol, for example.
`
`They could have used some word
`
`other than footlong.
`
`They could have used 12-inch sub,
`
`submarine sandwich. There's many other words they could have
`
`used, but what they did is they have at least four elements that
`
`form the same composite mark.
`
`Now, after reading the response brief yesterday,
`
`there
`
`seems to be some confusion. Once again, according to the
`
`letter, Sheetz is planning on terminating its advertising
`
`campaign in about five weeks.
`
`Subway is not here asking the
`
`Court to enjoin the Sheetz advertising campaign.
`
`We don't —— or at least our client does not care if
`
`Sheetz is selling $4 subs.
`
`It does not care if it's advertising
`
`to the world that they're $4. What Sheetz —- what Subway is
`
`asking Sheetz to do is to pull down the signs that have this
`
`composite mark and to use their own mark, come up with something
`
`on their own.
`
`To pull down these signs from the windows in the
`
`Sheetz gas stations is essentially no cost. Sheet; is a
`
`privately—owned company so all of the managers of these stations
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 7 of 19
`
`APP 275, Page 7 of 19
`
`

`
`are employees. There's no hardship to them. They're not
`
`separate franchisers, for example.
`
`One single e—mail from the
`
`company can get these signs down in an afternoon.
`
`Now, a lot was made of the billboards.
`
`The billboards,
`
`it would be nice to have them down in an afternoon, but if an
`
`extra few days or a week is required, Subway certainly
`
`understands that. Once again, Subway is not asking the Court to
`
`order Sheetz to stop its advertising campaign.
`
`They can sell as
`
`many sandwiches as they want at $4 or $2. That's not the
`
`important issue.
`
`It's knocking off the composite mark.
`
`Your Honor,
`
`the last page I just handed up was the
`
`second page of a declaration from Mr. Rogers. Mr. Rogers is a
`
`statistician with Subway. This second page was prepared for
`
`purposes of this hearing. What the second page shows is that
`
`where you look at Subways that are in the same zip code area as
`
`Sheetz stores that are using the composite mark,
`
`there has been
`
`a decline in customer count and also the average unit volume of
`
`dollars passing through those particular Subway stores.
`
`When you look at the statistics that occur where --
`
`well, nationally, which would be the lower chart,
`
`the same harm
`
`and damage is not being done.
`
`Now,
`
`this is not an overly
`
`sophisticated survey or anything like that-. These are
`
`statistics that were readily available for purposes of this
`
`hearing, but these statistics, which were submitted in
`
`declaration format, do show that the use of this composite mark,
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 8 of 19
`
`APP 275, Page 8 of 19
`
`

`
`which the public recognizes,
`
`the use of this composite mark by
`
`Sheetz is hurting,
`
`is causing confusion,
`
`is causing erosion of
`
`market share and is damaging Subway.
`
`Now,
`
`there was one other thing in the brief that I was
`
`reviewing yesterday that may be a little bit muddled.
`
`Subway's
`
`concern, again,
`
`is that its marks are being knocked off by
`
`Sheetz.
`
`Sheetz has its own advertising people, certainly is
`
`wealthy enough to come up with its own campaign, use its own
`
`brand identity, but given the opportunity in this situation,
`
`Subway sees Sheetz using the same composite mark,
`
`the same
`
`spacial arrangements.
`
`The point of the commercial,
`
`that was discussed in our
`
`brief and also in the Sheetz brief, is that in 2003 Sheetz ran a
`
`commercial advertisement which, for the most part, was a parody.
`
`Once again, Subway understands that, you know, competitors are
`
`allowed to do direct comparisons of marks to marks, competitors
`
`are allowed to do parodies. There's no problem with that.
`
`People don't necessarily like it, but that's the way it is.
`
`What was done in the 2003 advertisement is that at the
`
`very end of the commercial, what Sheetz did is they flashed the
`
`word Jared up on the screen.
`
`It appears on a license plate of a
`
`car that the individual was driving.
`
`Jared is another mark that
`
`is very closely associated only with Subway.
`
`It's not a common
`
`name.
`
`It's a mark of Subway.
`
`The purpose of bringing that up in the briefs is to
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 9 of 19
`
`APP 275, Page 9 of 19
`
`

`
`10
`
`1
`
`show that is somewhat predatory in behavior,
`
`that Sheetz does
`
`not seem to be out there developing its own marks or knocking
`
`off other people's marks.
`
`They seem to be focusing on Subway.
`
`The only other item which I would like to address is
`
`that a lot was made in the Sheetz brief about third~party usage
`
`of various elements and, you know, whether or not there are
`
`other trademarks out there of a hand or a dollar symbol or
`
`something along those lines that use the word footlong.
`
`The individual components on their own are different.
`
`The fact that it's a composite mark, it's the grouping, it's the
`
`spacial arrangement,
`
`the geometry,
`
`that is what Subway is
`
`complaining about here today and that's why we're asking the
`
`Court to enjoin'She%tz from using these composite marks, not
`their advertisement campaign.
`
`Thank you, Your Honor.
`
`THE COURT: All right.
`
`MS.
`
`JACOBS—MEADWAY: Good morning, Your Honor.
`
`There are a number of facts that I think need to be
`
`emphasized here. One is that Subway's use of the alleged
`
`composite mark is not only relatively recent, it's extremely
`
`inconsistent.
`
`If you look at the signage in the Metzger
`
`declaration, Exhibit 2, what you see is a wide range of
`
`arrangements of the alleged composite elements.
`
`Sometimes the
`
`hand is there, sometimes the hand isn't there. At one point
`
`Subway,
`
`in its papers,
`
`talked about a distinctive orange color.
`
`10
`
`11
`
`12
`
`13
`
`’_14.
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`pTracy L. Westfall
`
`OCR—USDC/EDVA
`
`APP 275, Page 10 of 19
`
`APP 275, Page 10 of 19
`
`

`
`11
`
`In fact, most of the signage that we've seen and that you see in
`
`the exhibits,
`
`in the Dunkley and the Metzger declarations,
`
`is
`
`yellow and green.
`
`There isn't any one composite mark, generally speaking.
`
`You have an advertising campaign by Subway for $5 footlongs.
`
`Now, it's not foot.
`
`It's not contrasting a hand and a foot the
`
`way Mr. Grandinetti would have it.
`
`It's footlong, and footlong
`
`is a generic term for a sandwich of approximately 12 inches.
`
`The fact that there may be other synonyms that people can use
`
`for a footlong sandwich doesn't make footlong any less generic
`
`and any less subject to exclusive appropriation.
`
`What Subway has done is they've built an advertising
`
`campaign around the concept of a $5 footlong. Their television
`
`commercials don't show the composite mark,
`
`the radio doesn't
`
`show the alleged composite mark, much of the signage doesn't
`
`show the alleged composite mark because the focus of the
`
`campaign is a $5 footlong sandwich. That's the value
`
`proposition.
`
`Now, Sheetz,
`
`since the middle of November, has had a
`
`comparative price campaign for a $4 footlong sandwich. There is
`
`a clear price advantage for the Sheetz product.
`
`If you take a
`
`look at the Sheetz signage, which is Dunkley Declaration
`
`Exhibit 4 and Metzger Declaration Exhibit 2, which is the Subway
`
`advertising, you see very clearly that in fact these are
`
`different representations and there is in fact no knockoff.
`
`10
`
`ll
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR—USDC/EDVA
`
`APP 275, Page 11 of 19
`
`APP 275, Page 11 of 19
`
`

`
`12
`
`What you have here is a comparison between a $5
`
`footlong, which Subway offers, and the $4 footlong offer from
`
`Sheetz.
`
`It's very clear that in fact the spacial arrangement
`
`isn't the same.
`
`The concept is the same.
`
`There's the use of
`
`the footlong, which is the name of the product. There's a price
`
`with a dollar sign, which is what you're promoting.
`
`In each
`
`case there's the logo that is identified with each of the
`
`respective companies.
`
`Now, one of the things that the case law in this
`
`circuit clearly establishes is you don't look at any of these
`
`elements in a vacuum. You look at these elements in the context
`
`in which they are seen by the relevant consumer. Here you have,
`
`on the one hand,
`
`the relevant consumer going into a Sheetz store
`
`and seeing the Sheetz product in the context of the Sheetz red
`
`and orange color scheme, which Sheetz has used for many years as
`
`you can see in the exhibits to the Dunkley declaration.
`
`On the
`
`other hand, you have Subway's units which generally have their
`
`green and yellow color scheme and a wide range of different
`
`signage promoting their $5 footlong product.
`
`There's simply, Your Honor, no reasonable likelihood
`
`that any person who can see is going to be confused into
`
`thinking that there's some relationship, sponsorship, or
`
`affiliation here.
`
`If anything,
`
`the Subway campaign sets a
`
`particular price point and tells people come to Subway for your
`
`$5 footlong. What Sheetz has is a campaign that says if you
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OC'R~USDC/EDVA
`
`APP 275, Page 12 of 19
`
`APP 275, Page 12 of 19
`
`

`
`13
`
`want a $4 footlong, come over here to Sheetz. There's no
`
`confusion and there's no intent to confuse.
`
`Just like with the 2003 parody ad,
`
`the point of a
`
`parody is to say, hey, we're not them, come over and look at us
`
`instead. Not to confuse but to differentiate.
`
`For Subway to
`
`say that a parody ad in 2003 and a comparative campaign in 2008,
`
`2009 establishes some sort of pattern of predatory conduct is,
`
`I
`
`submit, overreaching.
`
`What you have here is an instance where we point to the
`
`third—party use, not to say that any one of those third parties
`
`has prior rights or anything else, it's simply to say that
`
`people don't look to certain elements as indicia of origin.
`
`Footlong is generic. Lots of people for many years have used
`
`fingers extended in different configurations to indicate
`
`numbers.
`
`You have here a situation where the Sheetz ad depicts
`
`the footlong sandwich.
`
`Subway’s ads don't.
`
`They show a hand,
`
`and the focus is the word footlong and a hand and the Sheetz --
`
`and the Subway logo.
`
`On the other hand, if you look at Sheetz‘,
`
`you've got the focal point being a sandwich graphic over the
`
`word Sheetz.
`
`The elements aren't the same.
`
`The elements are
`
`clearly distinguishable.
`
`You have,
`
`in the Subway papers, a lot of sort of
`
`extraneous information, but what this all boils down to is is
`
`there any real likelihood that consumers are going to be
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 13 of 19
`
`APP 275, Page 13 of 19
`
`

`
`14
`
`confused into thinking there's a relationship between Sheetz and
`
`Subway.
`
`I submit, Your Honor,
`
`that there is no such likelihood
`
`and that's really the beginning and the end of it.
`
`Now,
`
`the fact that Subway may have had a slight
`
`temporary drop in sales in an area, standing by itself,
`
`particularly because this is not a two-company market,
`
`there are
`
`lots of quick—service restaurants out there offering a wide
`
`range of products, and to say that Subway experienced a slight
`
`drop in one area without paying any attention to what's
`
`happening with the other competitors doesn't establish anything.
`
`There's no causal link. There's no notion here of, did
`
`everybody take a sales hit that month? Did everybody go up
`
`except Subway? Are other people with other offers cannibalizing
`
`some of Subway's business? There's no way to tell. There's no
`
`evidence. There's no causation.
`
`I submit that the chart may be of some interest later
`
`after some discovery, but at the present point, it says nothing.
`
`There is,
`
`in fact, Your Honor, no actual confusion. Despite the
`
`fact that Subway claims that these parties are head—to—head in
`
`the same marketplace and the Sheetz campaign has been out since
`
`the middle of November,
`
`there's no evidence of confusion because
`
`there is no likelihood of confusion and there won't be any.
`
`Does the Court have any questions?
`
`THE COURT: No.
`
`Do you have any response you want to
`
`make?
`
`10
`
`ll
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall
`
`OCR—USDC/EDVA
`
`APP 275, Page 14 of 19
`
`APP 275, Page 14 of 19
`
`

`
`15
`
`MR. GRANDINETTI:
`
`Just quickly, Your Honor.
`
`That the Enclosure 1 from the Wilker's, it does show
`
`that there's a lot of brand identification with this composite
`
`mark.
`
`The fact that there are other third parties out there
`
`selling sandwiches, none of them are knocking off the composite
`
`mark.
`
`There's a very strong likelihood of confusion based on
`
`what this study shows, and that is that the public does identify
`
`this composite mark with Subway.
`
`The other problem here is
`
`Subway often --
`
`THE COURT: Well,
`
`it's kind of hard not to.
`
`It says
`
`Subway on it, doesn't it?
`
`MR. GRANDINETTI: That particular copy, yes.
`
`THE COURT:
`
`Isn't that the one that you have these
`
`numbers to match? Or are you showing them.a whole variety of
`
`different’composites?~~
`
`. v_..-‘MR; GRAMDINETTI: That is the clearest --
`
`THE COURT:
`
`It's hard to look at this one and not
`
`associate it with Subway, and it‘s pretty hard to look at this
`
`one and not associated it with Sheetz. You got the name up
`
`there.
`
`The name is very prominent on both of them.
`
`MR. GRANDINETTI:
`
`The fact that the house brands are
`
`prominent would argue that it would help the public to
`
`distinguish, but the problem that Subway has with this is Subway
`
`often has concessions or franchisees in other people's gas
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`15
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 15 of 19
`
`APP 275, Page 15 of 19
`
`

`
`16
`
`stations, other people's stores.
`
`It's not uncommon to go along the highway and to go
`
`into a facility where there's gasoline being sold and have a
`
`number of restaurants,
`
`including a Subway restaurant,
`
`there.
`
`So
`
`the fact that there are sandwiches being sold in a gas station
`
`called Sheetz, but they're using Subway‘s composite mark,
`
`the
`
`fact that it's in a Sheetz and Sheetz has got its name up there
`
`doesn't lesson the likelihood of confusion because Subway puts
`
`its restaurants, its franchises,
`
`in other people's gas stations
`
`so there's still a very good risk that there's going to be
`
`confusion.
`
`They're trading on the goodwill of Subway.
`
`They didn't
`
`just come up with a campaign,
`
`they didn't just come up with a
`
`cheaper sandwich. What they did is they knocked off a composite
`
`mark and they're using it on the same goods and they're using it
`
`‘in the same type of outlet.
`
`Where that occurs,
`
`the chart shows,
`
`the statistics show,
`
`that in those zip codes it does hurt Subway
`
`and there is a likelihood that the public is going to be
`
`confused.
`
`That's why Subway is only asking that those signs be
`
`taken down.
`
`Sheetz can sell as many sandwiches as they want,
`
`they can put big signs in their windows that says we're cheaper,
`
`they can say four bucks,
`
`they can say anything they want, but
`
`use their own mark. What they've done is knock off Subway's
`
`composite mark.
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR-USDC/EDVA
`
`APP 275, Page 16 of 19
`
`APP 275, Page 16 of 19
`
`

`
`17
`
`They're a sophisticated company.
`
`They have plenty of
`
`resources.
`
`They could have come up with anything.
`
`They could
`
`have come up something distinctive, but they didn't. They used
`
`the same four elements and the same spacial arrangement and the
`
`same campaign,
`
`same goods,
`
`same type of outlet.
`
`THE COURT: Well,
`
`I understand your argument, but I
`
`guess I just don't see it.
`
`In looking at these two ads, it
`
`seems to me that there's little likelihood of confusion when
`
`looking at the two of them.
`
`The names are clearly there.
`
`And
`
`when you talk about the spacial arrangement,
`
`the spacial
`
`arrangement of the two are different.
`
`The names are clearly on
`
`both of them.
`
`I just don't see that there's any likelihood of
`
`confusion from looking at this trade address.
`
`You also have the problems with the fact that
`
`footlongs, that's certainly generic and somebody's hand's
`
`generic.
`
`I understand your argument that you could have a trade
`
`address that uses these combinations of things that could cause
`
`a problem, be distinctive, it could cause confusion, but in
`
`looking at these two ads,
`
`I just don't see it.
`
`I'm going to have to deny your motion for a temporary
`
`restraining order.
`
`I'll consider it a motion for a preliminary
`
`injunction and deny a motion for preliminary injunction as well.
`
`I make no assessment as to how these facts will develop and what
`
`you'll eventually be able to show, but on what's presented to
`
`me,
`
`I just don't find any likelihood of confusion and deny your
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`"20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall
`
`0CR—USDC/EDVA
`
`APP 275, Page 17 of 19
`
`APP 275, Page 17 of 19
`
`

`
`18
`
`motion on that basis.
`
`Are these something you would like to have back or you
`
`want
`
`them made a part of the record?
`
`MR. GRANDINETTI: We would ask they be made part of the
`
`record, Your Honor.
`
`THE COURT: All right. They'll be made part of the
`
`record.
`
`All right.
`
`If we have no further business, we'll
`
`adjourn until Monday morning at 9:30.
`
`9:**
`
`(Proceedings concluded at 10:31 a.m.)
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`.2Q
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR—USDC/EDVA
`
`APP 275, Page 18 of 19
`
`APP 275, Page 18 of 19
`
`

`
`19
`
`CERTIFICATION
`
`I certify,
`
`this 17th day of February 2009,
`
`that the
`
`foregoing is a correct transcript from the record of proceedings
`
`in the above-entitled matter.
`
`Tracy Westfall, RPR,
`
`CMRS, CCR
`
`10
`
`ll
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Tracy L. Westfall OCR—USDC/EDVA
`
`APP 275, Page 19 of 19
`
`APP 275, Page 19 of 19
`
`

`
`Case 1:09-cv-00088-CMH-IDD Document 8 Filed 02/02/09 Page 1 of 5
`
`UNITED STATES DISTRICT COURT
`
`EASTERN DISTRICT OF VIRGINIA
`ALEXANDRIA DIVISION
`
`DOCTOR'S ASSOCIATES INC.,
`
`Plaintiff,
`
`v.
`
`SHEETZ,INC.,
`
`SHEETZ OF DELAWARE, INC., and
`
`DOES 1-10,
`
`Defendants.
`
`)
`)
`)
`
`)
`
`)
`
`)
`
`)
`
`)
`)
`
`Case Number
`
`l'.V\ J.'.ii 12 P
`
`-
`
`..
`"'-
`
`■
`
`DECLARATION OF MR. ROBERT WILKER
`
`1.
`
`I am Mr. Robert Wilker, the Worldwide Profit Building Manager for the Plaintiff,
`
`Doctor's Associates Inc., and I am the official authorized to make this declaration. I declare as
`
`follows.
`
`2.
`
`Doctor's Associates Inc. (hereafter "Subway"), a Florida Corporation, is the
`
`owner of U.S. Trademark Registration Number 1,174,608 for the famous trademark
`
`SUBWAY®. Subway also owns other registered and unregistered trademarks and service marks
`
`associated with the SUBWAY® restaurant system. Subway vigorously protects its registered
`
`and unregistered trademarks. Additionally, Subway has copyright protection in all of the images
`
`and materials used throughout the Subway system, including all advertising materials.
`
`3.
`
`Subway is the franchiser of Subway restaurants. Subway licenses many franchises
`
`throughout the Commonwealth of Virginia including this Judicial District. Currently, there are
`
`21,900 SUBWAY® restaurants in the United States and 30,524 SUBWAY® restaurants
`
`operating worldwide.
`
`APP 025
`
`Page 1 of 5
`
`

`
`Case 1:09-cv-00088-CMH-IDD Document 8 Filed 02/02/09 Page 2 of 5
`
`4.
`
`Subway franchisees are commonly found in convenience stores, gasoline stations,
`
`roadside rest facilities, and similar concessions throughout the Eastern District of Virginia and
`
`elsewhere.
`
`5.
`
`There are currently 351 Subway locations operating in the Eastern District of
`
`Virginia. At least 28 of these locations are convenient stores and/or gas stations and at least four
`
`are truck stops.
`
`6.
`
`Subway

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket