`ESTTA523423
`ESTTA Tracking number:
`02/25/2013
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`91208865
`Defendant
`Lutron Electronics Co., Inc.
`NICOLE K MCLAUGHLIN
`DUANE MORRIS LLP
`30 S 17TH ST FL 5
`PHILADELPHIA, PA 19103-4196
`UNITED STATES
`nkmclaughlin@duanemorris.com
`Motion to Dismiss - Rule 12(b)
`Nicole K. McLaughlin
`nkmclaughlin@duanemorris.com, pdmcpherson@duanemorris.com
`/Nicole K. McLaughlin/
`02/25/2013
`Applicants Motion to Dismiss and Brief in Support Thereof.pdf ( 14 pages
`)(3340594 bytes )
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`Proceeding
`Party
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`Correspondence
`Address
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`Submission
`Filer's Name
`Filer's e-mail
`Signature
`Date
`Attachments
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`In re Serial No. 85/298,600
`Mark: Product Configuration for Light Switch/Dimmer
`
`PASS & SEYMOUR, INC.,
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`Opposer,
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`2
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`Opposition No. 91/208,865
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`LUTRON ELECTRONICS CO., INC.,
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`APPLICANT’S MOTION TO DISMISS AND BRIEF IN SUPPORT THEREOF
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`Pursuant to 37 C.F.R. § 2.116(a) and Fed. R. Civ. P. 12(b)(6), Applicant, Lutron
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`Electronics Co., Inc. (“Lutron”), hereby moves to dismiss Opposer’s Notice of Opposition for
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`failure to state a claim for which relief can be granted on alleged claims of fraud.
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`The Notice of Opposition fails to assert fraud with particularity because it is not directed
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`to any conduct regarding the features that make up Lutron’s Mark, it does not identify how the
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`allegedly withheld information is material to the registrability of Lutron’s Mark, or even
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`remotely begin to allege sufficient facts from which an intent to deceive could be inferred.
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`I.
`
`Introduction
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`In yet another attempt to misappropriate Lutron’s intellectual property rights, the would-
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`be recidivist infringing Opposer has filed the present Notice of Opposition alleging Lutron
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`committed fraud during the prosecution of the present application directed to the product
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`configuration of Lutron’s “Diva” electric light dimmer and fan speed control. While
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`unfortunate, it is not surprising, since Opposer has a history of disregarding Lutron’s Valid
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`intellectual property rights. Opposer is a competitor to Lutron and sells competing electric light
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`dimmers, including some that have infringed Lutron’s patents. Opposer’s blatant disregard for
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`Lutron’s rights has caused Lutron to actively defend its rights including (1) filing a patent
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`infringement action in May 2011 in the U.S. District Court for the Central District of California
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`against Opposer, (2) filing a complaint with the International Trade Commission in May 2011 to
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`prevent Opposer from importing infringing products, and (3) defending itself from a baseless
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`request for reexamination filed by Opposer in August 2011 against one of Lutron’s patents for
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`which the USPTO eventually affirmed the patentability of the claims without amendment.
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`Continuing this pattern of abuse, Opposer’s claims of fraud in this proceeding are
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`illusory. In order to “create” a purported claim of fraud, Opposer has arbitrarily selected
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`functional features from the claims of Lutron’s US. Patent No. 5,637,930, e.g., a relatively large
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`actuator and small dimmer actuator, and has asserted that these functional features comprise the
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`totality of Lutron’s Mark. Based on this false premise, Opposer alleges that Lutron’s supposed
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`failure to provide documents from the prosecution of the ‘930 Patent discussing these functional
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`features (including declarations from 18 years ago) in the present application represents an
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`attempt by Lutron to intentionally mislead the USPTO. However, Lutron’s Mark is comprised
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`only of ornamental features, and the drawing of record clearly shows these ornamental features.
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`These ornamental features -- the relevant substance of the applied for Mark -— are not even
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`mentioned in Opposer’s allegations of fraud. The information that Opposer claims was allegedly
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`withheld from the USPTO is simply not material when Lutron’s actual Mark is considered.
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`Because Opposer created a fictional mark for the purpose of generating a fraud claim and does
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`not even consider Lutron’s actual Mark, its allegations of fraud do not meet the pleading
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`requirements of Rule 9(b), and thus Opposer has failed to state a claim upon which relief can be
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`granted.
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`Further, the ornamental features of the design for which registration is being sought were
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`not even shown or described in the '930 Patent. Rather, several very different looking designs
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`are shown. Thus, the '930 Patent demonstrates a variety of other equally efficient designs that do
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`not include the ornamental features of the present mark, and there is no competitive advantage to
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`the particular combination of features of the design mark that would render the mark functional.
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`Although the '93O Patent covers many switch-dimmer combinations that perform the same
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`function as the “Diva” electric light dimmer and fan speed control, the ‘930 Patent neither shows
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`nor describes the ornamental features of the design for which registration is sought.
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`In addition, Opposer’s allegations of deceptive intent are based solely on “information
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`and belief’ without any factual support. Specifically, Opposer alleges on “information and
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`belief” that Lutron’s filing of the present application is unfair and improper because Lutron also
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`owns patents directed to the same product. Such speculative allegations are without legal or
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`factual support and do not meet Rule 9(b)‘s requirements and, thus, provide an independent basis
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`for dismissing the Notice of Opposition regarding its fraud allegations.
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`II.
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`Background
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`On July 28, 1988, Lutron filed a utility patent application directed to functional features
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`of a dimmer switch, titled “Wall—Mountable Switch & Dimmer” which eventually issued
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`(through two continuation applications) as U.S. Pat. No. 5,637,930 (‘930 Patentl) on June 10,
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`1997.
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`1 Ex. B to NOO.
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`In May 1992, Lutron introduced the “Diva” electric light dimmer and fan speed control
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`(“DIVA dimmer”). The DIVA dimmer was an instant success in the marketplace. Since its
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`introduction to the present date, the DIVA dimmer has generated over $450 million in wholesale
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`sales to Lutron.
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`On March 31, 1992, Lutron filed a design patent application directed to some of the
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`ornamental design features of the DIVA Dimmer titled “Combined Bezel and Actuator For
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`Dimmer Switch” which issued as Des. 364,141 (‘ 141 Design Patentz) on November 14, 1995.
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`On March 31, 1992, Lutron filed a utility patent application directed to functional
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`features of the switch actuator (without a dimmer) which was eventually incorporated into the
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`switching portion of the DIVA control, titled “Snap-Action Switch Actuator” which issued as
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`U.S. Pat No. 5,207,317 (‘317 Patent3) on May 4, 1993.
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`On Mar 31, 1993, Lutron filed a utility patent application directed to functional features
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`of the DIVA dimmer, titled “Electrical Switch and Dimmer Control Device” which issued as
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`U.S. Pat. No. 6,005,308 (‘308 Patent4) on December 21, 1999. The ‘308 Patent is a continuation
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`in part of the ‘3 17 Patent.
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`In 1995, during the prosecution of the ‘930 Patent, Lutron submitted the declaration of
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`Dr. Peter Lucas dated August 30, 1995, discussing functional features of the claimed invention
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`including the “switching” actuator being substantially larger (and therefore more accessible to
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`the user) than the “dimming” actuator (“Lucas Declaration”5). Lutron also submitted the
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`Ex. A to Opposer’s Notice of Opposition (NOO), (Jacoby Declaration Ex. C-1)
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`3 Ex. A to NOO; (Jacoby Declaration Ex. C-2)
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`4 Ex A to NOO (Jacoby Declaration Ex. C-3)
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`5 Ex. D to NOO.
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`declaration of Dr. Woodie C. Flowers dated May 10, 1995, discussing the functional features of
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`the claimed invention and the differences over the prior art (“Flowers Declaration”6).
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`On April 8, 2003 and August 3, 2004, reexamination requests for Re—examinati0n Nos.
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`90/006,594 and 90/007,153, respectively, were filed directed to the ‘930 Patent. The
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`reexamination proceedings were consolidated and the Reexamination Certificate for the ‘930
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`Patent issued on September 13, 2006.
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`On April 19, 2011, Lutron filed the present Application Ser. No. 85/298,600 for a product
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`configuration for the DIVA dimmer. On June 4, 2012, during the prosecution of the present
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`application, Lutron submitted the declaration of Elliot Jacoby dated May 29, 2012, directed to
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`the ornamental features of the product configuration and identifying the ‘l41 Design Patent,
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`‘3 17, ‘308, and ‘930 Patents in response to the examining attorneys rejection of the product
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`configuration as functional (“Jacoby Declaration”7).
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`III. Previous Litigation Between the Parties
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`On May 16, 2011, Lutron filed a complaint with the International Trade Commission
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`(ITC Investigation No. 337—TA—776) against Opposer and other manufacturers for infringement
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`of the ‘930 Patent. Opposer subsequently agreed to a Consent Order where it agreed to cease
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`selling for importation, importing into the United States, offering for sale, or selling in the United
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`States after importation, any products which infringe any of the asserted claims of the ‘930 .
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`Patent (“ITC Action”).
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`On May 16, 2011, Lutron filed a companion civil action in the United States District
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`Court for the Central District of California on May 16, 2011 (1 1 -cV-00748-JST) against Opposer
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`6 Ex. F to NOO.
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`7 Ex. A to NOO.
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`and other manufacturers for infringement of the ‘93O Patent (“Civil Action”). The infringing
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`product sold by the Opposer also copied the ornamental features of Applicant’s Mark. On
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`August 10, 2011, during the pendency of the civil action, Opposer filed a request for
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`reexamination of the ‘930 Patent. During reexamination, Lutron submitted an Office Action
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`response dated April 10, 2012, which discussed the functional features of a large switch actuator
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`and a small dimmer actuator (“Reexam Response”8.) On August 21, 2012, the USPTO affirmed
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`thepatentability of the claims of the ‘930 Patent without amendment. On December 5, 2012,
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`Opposer settled the Civil Action with Lutron under confidential terms.
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`IV.
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`Legal Principles
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`A.
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`Failure to State a Claim
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`The defense of failure to state a claim upon which relief can be granted can be raised by
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`means of a motion to dismiss prior to answering a notice of opposition. TBMP § 503.01 (citing
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`Fed. R. Civ. P. 12 (b); Hollowform Inc. v Delma/leh, 180 USPQ 284, 285 (TTAB 1973), afl’d
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`515 F.2d 1174, 185 U.S.P.Q. 790 (CCPA 1975). “The filing ofa motion to dismiss for failure to
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`state a claim upon which relief can be granted tolls the time for filing an answer.” Id.
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`B.
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`Fraud Must be Pleaded with Particularity
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`In opposing the registration of a mark on the ground of fraud, a petitioner must allege the
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`elements of fraud with particularity in accordance with Fed. R. Civ. P. 9(b), made applicable to
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`Board proceedings by Trademark Rule 2.116(a). Under Rule 9(b), together with Fed. R. Civ. P.
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`11 and USPTO Rule 11.18, the pleadings must contain explicit rather than implied expression of
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`the circumstances constituting fraud.” King Automotive, Inc. v. Speedy Mufiler King, Inc., 667
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`F.2d 1008, 212 USPQ 801, 803 (CCPA 1981).
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`8 Ex. C to NOO.
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`To satisfy Rule 9(b), any allegations based on information and belief must be
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`accompanied by a statement of facts upon which the belief is founded. Asian and Western
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`Classics B. V, v. Selkow, 92 U.S.P.Q. 2d 1478 (T.T.A.B. 2009)(granting motion to dismiss fraud
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`claim).
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`Although Rule 9(b) allows that intent may be alleged generally, the pleadings must allege
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`sufficient underlying facts from which a court may reasonably infer that a party acted with the
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`requisite intent and state of mind.
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`Ia’.
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`C.
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`Functionality of Trade Dress
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`A particular arbitrary combination of functional figures, the combination of which is not
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`itself functional properly enjoys protection. Sunbeam Prods., Inc. v. W. Bend C0., 39 U.S.P.Q.
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`2d 1545, 1550 (S.D. Miss. 1996), afl’d, 123 F.3d 246 (5th Cir. 1997). Even if certain features
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`found in a product design are functional and common to other similar products, it does not
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`necessarily follow that the overlapping appearance of the claimed design configuration is
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`functional. In re Hershey Chocolate and Confectionary Corporation, Serial No. 77809223,
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`(T.T.A.B. June 28, 2012)(non precedential).
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`“A collection of functional features in a product design does not necessarily make the
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`collection of those features functional and therefore unprotectable.” Pebble Beach Co. v. Tour
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`18 ILtd., 155 F.3d 526, 538 (5th Cir. 1998). “The appropriate inquiry is not whether each
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`individual feature of the trade dress is functional but whether the whole combination of features,
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`taken together, is functional.” Hartford House, Ltd. V. Hallmark Cards, Inc. 846 F.2d 1268,
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`1272 00”‘ Cir. 1988).
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`D.
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`Trade Dress Rights and Utility Patent Rights Are Not Mutually Exclusive
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`Trade dress rights and utility patent rights in the same product are not mutually exclusive
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`and, thus, existence of a patent does not prevent the patent owner from seeking trade dress
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`protections for ornamental aspect of features found in a patent claim. Trafix Devices, Inc. Mktg.
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`Displays, Inc. 532 U.S. 23,29 (200l)(“ln a case where a manufacturer seeks to protect arbitrary,
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`incidental or ornamental aspects of features of a product found in patent claims, such as arbitrary
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`curves in the legs or an ornamental pattern painted on the springs, a different result might obtain.
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`There the manufacturer could perhaps prove that those aspects do not serve a purpose within the
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`terms of a utility patent”)
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`V.
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`Argument
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`Opposer’s fraud allegations fail as a matter of law for several reasons. First, Opposer’s
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`allegations of fraud are not directed to the Mark. Second, Opposer’s dissection of a mark into
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`individual components and assessing the functionality of individual components is contrary to
`well established precedent for evaluating the overall appearance of the claimed trade dress.
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`Third, Opposer fails to specifically identify how the allegedly false statements and allegedly
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`withheld information are material to the registrability of the Mark. Finally, Opposer’s allegation
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`of Lutron’s intent to deceive relies solely “upon information and belief” and is not accompanied
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`by a statement of facts upon which the belief is founded.
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`A.
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`Opposer’s Allegations of Fraud Are Not Directed to the Applied for Mark
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`Opposer’s assertion of fraud is based on a faulty premise --that is, the misconception that
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`Lutron’s Mark consists of any switch and dimmer configuration that has a relatively big on/off
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`actuator as compared to a relatively small dimmer actuator. Specifically, the Opposer has
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`asserted that the fraud allegations are based on the failure to disclose the following information:
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`(1)
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`Statements from the Reexam Response where Lutron stated “the switch
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`function actuator area is substantially larger than that of the dimmer function
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`actuator and dominates dimmer function actuator by emphasizing the switch
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`function visually and physically,” and “the switch and dimmer actuator areas,
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`though separate, are spaced immediately adjacent to each other and both occupy
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`a common region that services as an active control zone for the device.” NOO at
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`1] 22.
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`(2)
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`The Lucas Declaration (made 18 years before the filing of the present
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`trademark application) regarding the information content required to perform the
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`two control actions of an actuator and separate dimmer control as compared to
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`other designs available in 1995. N00 at 127.
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`(3)
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`The Flowers Declaration extolling “the utilitarian benefits of the ‘930
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`Patent’s invention combination of a large switch with a small dimmer.” NOO at
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`1l38.
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`Thus, it is clear that Opposer has defined Lutron’s Mark to constitute any switch and
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`dimmer configuration that has a relatively large on/off actuator as compared to a relatively small
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`dimmer actuator. However, the general concept of a relatively large on/off actuator as compared
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`to a relatively small dimmer actuator is not the applied-for Mark. Rather, during prosecution of
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`the present application, Lutron made it clear that functional features claimed in the ‘3 l 7, ‘308
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`and ‘93O Patents were not part of its trade dress and that the trade dress shown in the drawing of
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`record of the instant application is the totality of the specific ornamental features of the design as
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`presented in the drawing.9 Thus, Opposer’s arbitrary identification of general functional features
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`9 A. to NOO at 1114.
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`rather than the ornamental combination of specific features of the Mark does not satisfy the
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`Opposer’s obligation to particularly allege the elements of its fraud claim.
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`B.
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`Opposer’s Dissection of the Mark into Individual Components and
`Assessment of the Alleged Functionality of Individual Components is
`Improper.
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`However, even if Applicant’s trade dress broadly encompassed the relatively large on/off
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`actuator as compared to a relatively small dimmer actuator, it is improper for the Opposer to
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`dissect the mark into individual components and only consider the functionality of the individual
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`components.
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`It is well established that the appropriate inquiry is not whether each individual
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`feature of the trade dress is functional but whether the whole combination of features, taken
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`together, is functional. Hartford House at 1272. Opposer’s fraud allegations, based solely on
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`allegedly functional features viewed individually, misapply the test for evaluating whether a
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`trade dress is protectable. Thus, Opposer has failed to state the elements of its fraud claim with
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`particularity.
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`C.
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`Third, Opposer Fails to Provide Factual Support for its Allegations That the
`Purportedly False Statements or Information Purportedly Withheld is
`Material to the Mark
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`Opposer’s instances of alleged fraud are all based on Opposer’s improper definition of
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`the Mark, and, thus the allegedly withheld material or false statements are not material to the
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`registrability of Lutron’s actual Mark. For example, Opposer’s first instance of alleged fraud is
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`based on Opposer’s allegations that the Jacoby Declaration is inconsistent with the Reexam
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`Response submitted during the reexamination of the ‘930 Patent. However, as the Opposer
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`admits, the Jacoby Declaration identified the ‘93O Patent to the examiner and informed the
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`examiner that the functional features claimed in the ‘930 Patent are not part of the trademark for
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`which registration is sought. The Opposer has failed to identify how statements made during the
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`reexamination of the ‘93O Patent which is directed solely to functional features and not the
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`specific appearance of the Mark is relevant to the actual Mark which does not include functional
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`features.
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`Likewise, Opposer’s second instance of alleged fraud directed to allegedly withheld
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`material or false statements also is not material to the registrability of Lutron’s actual Mark.
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`Here, Opposer asserts that the alternate designs of other dimmers available today discussed in the
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`Jacoby Declaration are inconsistent with Lucas Declaration’s functional description of the
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`invention claimed in the ‘930 Patent. The Lucas Declaration describes the benefits of separating
`the on/off actuator from the dimming actuator. The Jacoby Declaration provided examples of
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`alternate designs of dimmers having separate on/off actuators and dimming actuators available
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`today. Opposer fails to allege how the benefits described in the Lucas Declaration, which are
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`equally applicable to the Mark as well as the competitors alternate designs, is material to the
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`registrability of the Mark
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`Opposer’s third instance of alleged fraud also is directed to allegedly withheld material or
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`false statements that are not material to the registrability of Lutron’s actual Mark. Here Opposer
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`asserts that the Lucas Declaration and the Flowers Declaration discuss the functional aspects of
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`the ‘930 patent directed to a relatively large on/off actuator as compared to a relatively small
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`dimmer actuator. However, because the relatively large on/off actuator as compared to a
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`relatively small dimmer actuator are not the ornamental features of the Mark, Opposer fails to
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`identify how a functional description of a general concept from almost 18 years ago is material to
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`the registrability of the Mark with the specific design shown in the drawing of record.
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`-11-
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`D.
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`Opposer Failed to Allege Sufficient Underlying Facts From Which a Court
`May Reasonably Infer That a Party Acted With the Requisite Intent
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`Opposer’s allegation of intent are all based solely on “information and belief’:
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`Upon information and belief, the Design has enjoyed great commercial
`48.
`success owing to its utilitarian features, and Applicant has actively sued alleged
`infringers of its patent rights to exclude competitors form the marketplace. Upon
`information and belief, Applicant filed the Application (on April 19, 2011) in
`anticipation of the expiration of the ‘930 patent on June 10, 2014, in order to
`unfairly extend the monopoly of the ‘930 patent through trademark law, to
`continue to exclude opposer and other competitors from practicing the Design of
`the ‘930 patent after it enters the public domain, and to maintain its revenue
`stream associated with the exclusive right to the Design. Upon information and
`belief, the foregoing interests evidence Applicant’s intent to deceive the USPTO
`by presenting false statements of material fact in the Jacoby Declaration, and
`withholding material information in the Flowers and Lucas Declarations and the
`response to Reexam Office Action. NOO at ‘H48.
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`However, any allegations based on information and belief must be accompanied by a
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`statement of facts upon which the belief is founded. Asian and Western Classics at 1478.
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`Opposer has utterly failed to provide a statement of facts upon which its asserted belief is
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`founded. To the contrary, utility patent rights and trade dress rights are not mutually exclusive
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`and thus existence of a patent does not prevent the patent owner from seeking trade dress
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`protections for ornamental aspect of features found in a patent claim:
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`In a case where a manufacturer seeks to protect arbitrary, incidental or ornamental
`aspects of features of a product found in patent claims, such as arbitrary curves in
`the legs or an ornamental pattern painted on the springs, a different result might
`obtain. There the manufacturer could perhaps prove that those aspects do not
`serve a purpose within the terms of a utility patent.
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`Trafix Devices, Inc. Mktg. Displays, Inc. 532 U.S. 23,29 (2001).
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`Thus, there is nothing improper or unfair regarding Lutron’s application for trade dress
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`protection for ornamental features in conjunction with its patent protection of functional features,
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`and there is no basis to infer, from the facts alleged in the Notice of Opposition, any intent and
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`state of mind of Lutron to deceive the PTO in connection with the instant application. The
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`simple fact is that Lutron is seeking trade dress protection for its product embodying a specific
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`trade dress, where the product has been commercially successful and subject to patent protection.
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`These facts demonstrate lawful and reasonable actions of an owner exercising its legal rights for
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`the full protection of its intellectual property. Thus, Opposer has failed to plead the required
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`element of intent with particularity required by Rule 9(b), which is an independent basis for
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`dismissing Opposer’s counterclaim of fraud.
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`VI.
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`Conclusion
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`For the foregoing reasons, it is respectfully requested that the Opposer’s Notice of
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`Opposition is dismissed for failure to state a claim for which relief can be granted on alleged
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`claims of fraud.
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`Respectfully Submitted
`
`/Nicole K. McLaughlin/
`Nicole K. McLaughlin
`DUANE MORRIS LLP
`30 S. 17TH Street, Floor 5
`Philadelphia, PA 19103-4196
`Telephone: (215) 979-1151
`Facsimile: (215) 979-
`NKMCLaughlin@,duanerno1ris.com
`
`Patrick D. McPherson
`
`DUANE MORRIS LLP »
`505 9”‘ Street, NW, Suite 1000
`Washington DC 20004
`Telephone: 202-776-5214
`Facsimile: 202-478-0826
`
`pdmcpherson@duanemorris.com
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`Attorneys for Applicant
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`Date: February 25, 2013
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`DM2\4l28843 .1
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`-13-
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`CERTIFICATE OF ELECTRONIC FILING
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`I hereby certify that Applicant’s Motion to Dismiss and Brief in Support thereof is being
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`filed with the Trademark Trial and Appeal Board, Commissioner for Trademarks, P.O. Box
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`1451, Alexandria, Virginia, 22313-1451, by using the ESTTA electronic filing system, this 25th
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`day of February, 2013.
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`/Josh Staples/
`Josh Staples
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`CERTIFICATE OF SERVICE
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`I hereby certify that the forgoing Motion to Dismiss and Brief in Support thereof has
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`been served on Opposer’s Attorney of record, Mark D. Giarratana, McCarter & English LLP,
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`CityP1ace I, 185 Asylum Street, Hartford, Connecticut 06103-3495, Via first class mail, postage
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`pre—paid, this 25th day of February, 2013.
`
`/Josh Staples/
`Josh Staples
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`DM2\4l28843.l