throbber
ESTTA Tracking number:
`
`ESTTA1330860
`
`Filing date:
`
`12/27/2023
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Proceeding no.
`
`91288289
`
`Party
`
`Correspondence
`address
`
`Submission
`
`Filer's name
`
`Filer's email
`
`Signature
`
`Date
`
`Attachments
`
`Defendant
`VPR BRANDS LP
`
`JOEL B. ROTHMAN
`SRIPLAW
`21301 POWERLINE ROAD, SUITE 100
`BOCA RATON, FL 33433
`UNITED STATES
`Primary email: trademarks@sriplaw.com
`Secondary email(s): joel.rothman@sriplaw.com, alissa.shapiro@sriplaw.com
`(561) 404-4350
`
`Motion to Suspend for Civil Action
`
`Joel B. Rothman
`
`Trademarks@SRIPLAW.com, Joel.Rothman@SRIPLAW.com,
`Alissa.Shapiro@SRIPLAW.com
`
`/JOEL B. ROTHMAN/
`
`12/27/2023
`
`2023.12.27 Motion to Suspend Opposition Proceeding.pdf(207753 bytes )
`Exhibit 1_DE 0083. ORDER GRANTING PLAINTIFFS MOTION FOR PRELIM-
`INARY I NJUNCTION [ECF No. 5] AND DENYING DEFENDANTS MOT
`(2023.02.23).pdf(451168 bytes )
`Exhibit 2_DE 0001. Complaint Against iMiracle HK Limited and Heaven G
`ifts.pdf(1809671 bytes )
`Exhibit 3_DE 0149. Partial ANSWER and Affirmative Defenses to Complai nt
`with Jury Demand and COUNTERCLAIM against VPR (2023.04.26).pdf(506768
`bytes )
`Exhibit 4_DE 0019. ANSWER to Third Party Complaint Third Party CROSSC
`LAIM against VPR Brands LP by IMIRACLE (HK). LT (2023.06.07).pdf(576108
`bytes )
`Exhibit 5_DE 0029. ANSWER and Affirmative Defenses to Complaint with Jury
`Demand COUNTERCLAIM against VPR Brands LP(2023.06.02).pdf(2112305
`bytes )
`Exhibit 6_DE 0080. MOTION TO DISMISS [61] Amended ComplaintAmended
`No tice of Removal FOR FAILURE TO STATE A CLAIM
`(2023.02.21).pdf(410716 bytes )
`
`

`

`
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`TRADEMARK TRIAL AND APPEAL BOARD
`OPPOSITION PROCEEDING NO.: 91288289
`APPLICATION NO.: 97834845
`MARK: ELF
`
`
`
`IMIRACLE (HK) LIMITED,
`
`
`Opposer,
`
`
`v.
`
`VPR BRANDS, LP,
`
`
`Applicant.
`
`
`
`
`
`
`
`MOTION TO SUSPEND OPPOSITION PROCEEDING
`
`Applicant VPR BRANDS, LP (“VPR”), by and through its undersigned counsel, submit
`
`its Motion to Suspend this Opposition Proceeding.
`
`1.
`
`This proceeding was filed by IMIRACLE (HK) LIMITED (“iMiracle HK”). The
`
`application at issue is the ELF trademark application at Serial No.: 97834845 (the “ELF Mark”)
`
`in class 003 for “Oral vaporizer cartridges sold filled with essential oils for smoking purposes;
`
`Oral vaporizers for smoking purposes sold filled with essential oils” and class 005 for “Dietary
`
`supplements for animals; Gummy vitamins; Herbal drinks used to aid in sleep and relaxation;
`
`Herbal male enhancement capsules; Herbal pills and mixes for the psychological benefit of
`
`cleansing one's karma; Herbal supplements; Herbal supplements for sleeping problems; Fungal
`
`extracts sold as a component ingredient of nutritional supplements and vitamins; Medicinal
`
`herb extracts.”
`
`2.
`
`iMiracle HK’s opposition is based upon iMiracle’s ELFBAR (Stylized/Design)
`
`trademark application at Serial No.: 97580609 (the “ELFBAR Mark”) in class 034 for
`
`“Cigarettes; Cigarette holders; Devices for heating tobacco for the purpose of inhalation;
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`SRIPLAW
`
`

`

`
`
`Electronic cigarette atomizers sold empty; Electronic cigarette cases; Electronic cigarette
`
`liquid (e-liquid) comprised of propylene glycol; Electronic cigarette refill cartridges sold
`
`empty; Electronic cigarettes for use as an alternative to traditional cigarettes; Flavourings,
`
`other than essential oils, for use in electronic cigarettes; Lighters for smokers; Liquid nicotine
`
`solutions for use in electronic cigarettes; Oral vaporizers for smokers; Electronic cigarettes.”
`
`3.
`
`This proceeding is related to several other ongoing proceedings that the Board
`
`previously suspended. Those are Cancellation No. 92082460, Imiracle (HK) Limited v. VPR
`
`Brands LP; Cancellation No. 92081685, Ecto World LLLC d/b/a Demand Vape v. VPR Brands
`
`LP. Both Cancellation No. 92081685 and Cancellation No. 92082460 were suspended pending
`
`the trademark and patent infringement action filed by Applicant in the Southern District of
`
`Florida captioned VPR Brands, LP v. Shenzhen Weiboli Technology Co. Ltd. (ELF BAR), Ylsn
`
`Distribution LLC, Safa Goods LLC, UNISHOW (U.S.A.), INC., SV3 LLC, Kingdom Vapor Inc.,
`
`Ecto World LLC, iMiracle (HK) Limited, Heaven Gifts International Limited and Shenzhen
`
`iMiracle Technology Co. Ltd., Case No. 22-cv-81576- CANNON/Reinhart (the Weiboli Case),
`
`which was consolidated with related case VPR Brands, LP v. iMiracle HK Limited and Heaven
`
`Gifts International Limited, in the Southern District of Florida, Case No.: 9:22-cv-81977-
`
`CANNON/Reinhart (filed on December 27, 2022) and VPR Brands, LP v. Shenzhen iMiracle
`
`Technology Co., Ltd., YLSN Distribution LLC, Ecto World LLC, Safa Goods, LLC, D&A
`
`Distribution LLC, Unishow (U.S.A.), Inc., SV3 LLC, and Kingdom Vapor Inc., Case No. 9:22-
`
`cv-81943 (filed on December 16, 2022) [See Case No. 22-cv-81576, ECF No. 166].
`
`4.
`
`Opposer iMiracle HK is a Chinese seller or distributor of vaporizers and e-
`
`cigarettes. iMiracle HK is an affiliate of the Chinese manufacturer of the same products,
`
`SHENZHEN IMIRACLE TECHNOLOGY CO. LTD (“Shenzhen iMiracle”). iMiracle HK and
`
`2
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`
`
`Shenzhen iMiracle are both affiliates of the Chinese company SHENZHEN WEIBOLI
`
`TECHNOLOGY CO. LTD. (“Weiboli”), which is a manufacturer of vaporizers and e-cigarettes.
`
`All these companies are parties to the case pending in district court.
`
`5.
`
`Opposer distributes a wide variety of brands of electronic cigarette and accessory
`
`products in the United States.
`
`6.
`
`On February 23, 2023, Judge Cannon in the Weiboli Case pending in the Southern
`
`District of Florida entered an Order Granting Plaintiff’s Motion for Preliminary Injunction and
`
`Denying Defendants’ Motion to Reopen the Evidentiary Hearing (ECF 83). A copy of the
`
`Court’s order is attached hereto as Exhibit 1.
`
`7.
`
`Opposer and the other defendants appealed the preliminary injunction to the
`
`United States Court of Appeals for the Federal Circuit. That appeal is pending as Case No. 23-
`
`1544.
`
`8.
`
`The defendants in the consolidated Weiboli Case made the same arguments it
`
`makes in the instant Notice of Opposition in its opposition to the motion for preliminary
`
`injunction in the case pending in the Southern District of Florida. (See Exhibit 1 at pp. 6-12).
`
`9.
`
`There are currently at least four other cases pending in the Southern District of
`
`Florida where the named defendants make products that infringe upon Applicant VPR Brands,
`
`LP’s ELF Mark. The actions are:
`
`a. VPR Brands, LP v. Shenzhen Sigelei Technology Co. Ltd. dba ELF Tank, GD
`Sigelei Electronic Tech Co. Ltd. dba ELF TANK, ProVape Enterprise, Inc.,
`Waterfall Holding LLC dba Vape Wholesale USA, Limitless Accessories, Inc.
`dba Valgous dba alternativepods.com, LA Vapor Inc., World Wholesale Inc., G
`& A Wholesale Distributors Inc. dba nyvapeplus.com, and Kloud King
`Distributors Inc. dba kksmoke.com, in the Southern District of Florida, Case
`No. 9:23-cv-80291 (filed on February 24, 2023).
`
`3
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`
`
`b. VPR Brands, LP v. iMiracle HK Limited and Heaven Gifts International
`Limited, in the Southern District of Florida, Case No.: 9:22-cv-81977 (filed on
`December 27, 2022).
`
`c. VPR Brands, LP v. Shenzhen iMiracle Technology Co., Ltd., YLSN
`Distribution LLC, Ecto World LLC, Safa Goods, LLC, D&A Distribution LLC,
`Unishow (U.S.A.), Inc., SV3 LLC, and Kingdom Vapor Inc., in the Southern
`District of Florida, Case No. 9:22-cv-81943 (filed on December 16, 2022)
`
`d. VPR Brands, LP Vape Loft Abercorn, LLC et. al., in the Southern District of
`Georgia, Case No.: 4:23-cv-00115 (filed on May, 2023).
`
`10.
`
`In the cases listed above, iMiracle and its co-defendants have raised the same
`
`issues that Opposer raises in its Notice of Opposition.
`
`11.
`
`In the cases listed above where defendants have filed responses to the complaint,
`
`Opposer’s interests are aligned with the defendants’ interests because Opposer also distributes
`
`the products sold by defendants in those cases.
`
`12.
`
`Consideration of the Notice of Opposition would potentially cause conflicting
`
`results between the actions pending in district court and this proceeding.
`
`MEMORANDUM OF LAW
`
`The U.S. Trademark Law Rules of Practice provide that “[w]henever it shall come to the
`
`attention of the Trademark Trial and Appeal Board that a civil action. . . may have a bearing on a
`
`pending case, proceedings before the Board may be suspended until termination of the civil
`
`action . . . A civil action or proceeding is not considered to have been terminated until an order or
`
`ruling that ends litigation has been rendered and noticed and the time for any appeal or other
`
`further review has expired with no further review sought.” 37 C.F.R. § 2.117(a); TBMP Rule
`
`510.02(a) (“Whenever it comes to the attention of the Board that a party or parties to a case
`
`pending before it are involved in a civil action that may have a bearing on the Board case,
`
`proceedings before the Board may be suspended until final determination of the civil action.”)
`
`Regardless of whether the civil action involves other matters or issues, the Board’s policy
`
`4
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`
`
`is to suspend upon request pending the outcome of the other proceeding seeks suspension
`
`because of a civil action pending between the parties in a federal district court. TBMP Rule
`
`510.02(a). Even though a civil action may involve broader issues beyond right to registration,
`
`judicial economy is usually served by suspension. TBMP Rule 510.02(a), Note 2.
`
`Unless there are unusual circumstances, the Board will suspend proceedings. Id.
`
`Suspension of a Board proceeding pending the final determination of another proceeding is
`
`within the discretion of the Board. Id. When a motion to suspend pending the outcome of a civil
`
`action is filed, the Board normally requires that a copy of the operative pleadings from the civil
`
`action be submitted, so that the Board can ascertain whether the final determination of the civil
`
`action may have a bearing on the issues before the Board. Id. Note 15.
`
`Attached hereto as Exhibits are the following:
`
`Exhibit 2 Complaint with Exhibits filed against iMiracle in Case No.: 9:22-
`cv-81977 prior to consolidation (ECF No. 1).
`
`Exhibit 3
`
`iMiracle’s Partial Answer, Affirmative Defenses and
`Counterclaims in Case No. 9:22-cv-81576 (ECF No. 149), after
`the case was consolidated, raising the same issues raised in the
`Notice of Opposition here.
`
`Exhibit 4
`
`iMiracle’s Answer to Vape Loft’s Third-Party Complaint and
`Third-Party Crossclaims Against VPR Brands LP in Case No
`4:23-cv-00115 (ECF No. 19).
`
`Exhibit 5 GD Sigelei’s Answer and Counterclaim in Case No. 9:23-cv-
`90291 (ECF No. 29).
`
`Exhibit 6 Defendants’ Consolidated Motion to Dismiss or, Alternatively,
`For Summary Judgment in Case No. 9:22-cv-81576 (ECF No. 80)
`
`
`
`Issue has been joined in the complaint. Here, the answer and counterclaims filed by
`
`iMiracle in district court raises the same issues as the instant notice, namely likelihood of
`
`confusion, lack of priority, and lack of bona fide use due to unlawful use doctrine. (See Exhibit
`
`5
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`
`
`2-4). iMiracle’s co-defendants also filed a consolidated motion to dismiss or, alternatively for
`
`summary judgment raising the identical issue that VPR’s complaint must be dismissed alleging
`
`VPR’s use of the ELF Mark has been unlawful. (See Exhibit 6). Furthermore, iMiracle’s alleged
`
`predecessor-in-interest, GD Sigelei Electronic Technology Inc., filed counterclaims against VPR
`
`seeking cancellation of the ELF Mark on the exact issue based on a lack of priority in the ELF
`
`Mark. (See Exhibit 5).
`
`Suspension serves the purpose of the rule, namely, to prevent inconsistent decisions
`
`between the TTAB and the district courts. Opposer iMiracle is attempting to obtain a favorable
`
`decision here on the same issues raised with the district court. Consideration of this Notice of
`
`Opposition would potentially cause conflicting results which should be avoided.
`
`Therefore, the opposition proceeding should be suspended.
`
`Dated: December 27, 2023
`
`Respectfully submitted,
`
`
`
`/s/ Joel B. Rothman
`JOEL B. ROTHMAN
`Florida Bar Number: 98220
`joel.rothman@sriplaw.com
`trademarks@sriplaw.com
`
`SRIPLAW, P.A.
`21301 Powerline Road
`Suite 100
`Boca Raton, FL 33433
`561.404.4350 – Telephone
`561.404.4353 – Facsimile
`
`Counsel for Applicant, VPR Brands, LP
`
`
`
`
`
`6
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that a true and complete copy of the foregoing Motion to Suspend
`Opposition Proceeding has been served on Opposer’s counsel, Carrie A. Shufflebarger with
`
`Thompson Hine LLP, by forwarding said copy on December 27, 2023, via email to:
`
`carrie.shufflebarger@thompsonhine.com, docket@thompsonhine.com,
`
`eric.heyer@thompsonhine.com, joe.smith@thompsonhine.com, michelle.li@thompsonhine.com,
`
`anna.stressenger@thompsonhine.com, and krupa.patel@thompsonhine.com.
`
`
`
`
`
`/s/ Joel B. Rothman
`JOEL B. ROTHMAN
`Florida Bar Number: 98220
`joel.rothman@sriplaw.com
`trademarks@sriplaw.com
`
`SRIPLAW, P.A.
`21301 Powerline Road
`Suite 100
`Boca Raton, FL 33433
`561.404.4350 – Telephone
`561.404.4353 – Facsimile
`
`Counsel for Applicant, VPR Brands LP
`
`
`
`
`
`
`
`7
`SRIPLAW
`
`CALIFORNIA ◆ GEORGIA ◆ FLORIDA ◆ TENNESSEE ◆ NEW YORK
`
`

`

`Exhibit 1
`Exhibit 1
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 1 of 32
`
`
`
`
`
`
`
`
`
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF FLORIDA
`WEST PALM BEACH DIVISION
`
`CASE NO. 22-81576-CIV-CANNON
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`VPR BRANDS, LP,
`
`
`
`
`Plaintiff,
`v.
`
`SHENZHEN WEIBOLI TECHNOLOGY
`CO. LTD. et al.,
`
`Defendants.
`
`_______________________________/
`
`ORDER GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION
`[ECF No. 5] AND DENYING DEFENDANTS’ MOTION TO REOPEN [ECF No. 76]
`
`THIS CAUSE comes before the Court upon Plaintiff’s Motion for Preliminary Injunction
`
`
`
`(the “Motion”) [ECF No. 5], filed on October 14, 2022. The Motion asks the Court to enter a
`
`preliminary injunction enjoining Defendants from using Plaintiff’s ELF trademark or any
`
`substantially similar imitation design; selling any products using the ELF trademark; and
`
`advertising or marketing any products using the ELF trademark [ECF No. 5 p. 18]. The Court
`
`held a hearing on the Motion on November 18, 2022, and December 1, 2022 [ECF Nos. 39, 46,
`
`52, 60]. At the hearings, the Court admitted evidence and heard witness testimony [ECF Nos. 46,
`
`54, 55, 56, 57, 58, 60]. The Court has reviewed the Motion, Defendants’ Response in Opposition
`
`[ECF No. 32], Plaintiff’s Reply [ECF No. 34], Plaintiff’s Proposed Findings of Fact and
`
`Conclusions of Law [ECF No. 66], Defendants’ Proposed Findings of Fact and Conclusions of
`
`Law [ECF No. 65], and the full record. For the reasons set forth below, the Motion [ECF No. 5]
`
`is GRANTED, and Defendants’ Motion to Reopen the Evidentiary Hearing [ECF No. 76] is
`
`DENIED.
`
`
`
`
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 2 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`FACTUAL AND PROCEDURAL BACKGROUND
`
`Plaintiff VPR Brands, LP (“Plaintiff”) manufactures electronic cigarettes (“e-cigarettes”)
`
`and related products [ECF No. 1 ¶¶ 10–11]. Plaintiff has marketed a line of e-cigarettes and
`
`accessories under the mark ELF since November 24, 2017 [ECF No. 1 ¶¶ 13–14]. Plaintiff
`
`obtained a trademark in the ELF mark from the United States Patent and Trademark Office
`
`(“USPTO”) on June 5, 2018 [ECF No. 1 ¶ 15; ECF No. 1-1]. The trademark allows Plaintiff to
`
`use the mark “in connection with ‘Electronic cigarette lighters; Electronic cigarettes; [and]
`
`Smokeless cigarette vaporizer pipe’” [ECF No. 1 ¶ 15; ECF No. 1-1]. Plaintiff currently markets
`
`two products under the ELF mark: (1) the ELF Original Auto Draw Conceal Kit, “a reusable
`
`(non-disposable) bar-shaped e-cigarette”; and (2) a high-capacity e-cigarette battery for use with
`
`the “industry standard refillable 510 mouthpieces” [ECF No. 1 ¶¶ 19, 22]. The ELF Original Auto
`
`Draw Conceal Kit is “a square box vaporizer with a mouthpiece attached to the top,” which allows
`
`the consumer to inhale products such as essential oils, nicotine, and other products [ECF No. 46
`
`pp. 18:4–8, 19:7–9; see also ECF No. 38-2 (photo of ELF Original Auto Draw Conceal Kit)]. The
`
`vaporizer is sold empty, without liquid [ECF No. 46 p. 20: 19–20], and it is reusable, allowing the
`
`consumer to “use [the] product for the lifespan of the rechargeable battery” [ECF No. 46
`
`p. 25:16–22].
`
`Defendant Shenzhen Weiboli Technology Co. Ltd. (“Weiboli”) is a Chinese manufacturer
`
`of e-cigarettes that markets its e-cigarettes under the name ELFBAR [ECF No. 1 ¶¶ 39, 41]. The
`
`ELFBAR product is an e-cigarette disposable vaporizer that is made out of plastic and comes
`
`“pre-filed with nicotine e-liquid” [ECF No. 46 p. 34:14–19; see also ECF No. 56 (ELF product)].1
`
`
`1 Plaintiff’s ELF Auto Draw Conceal Kit is classified as an “open system,” which allows a user to
`refill the tank and is re-usable, as opposed to a disposable e-cigarette product similar to
`Defendants’ ELFBAR product [ECF No. 60 pp. 63:23–25, 64:1–6].
`
`
`
`2
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 3 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`The other seven Defendants operate as Weiboli’s wholesale distributors of the ELFBAR products
`
`within the United States [ECF No. 1 ¶¶ 42–55].
`
`Plaintiff alleges that Weiboli’s distribution of the ELFBAR e-cigarette products infringes
`
`on Plaintiff’s ELF trademark, because it is “confusingly similar to Plaintiff’s ELF Mark as applied
`
`to e-cigarette products, and is likely to cause confusion among consumers, retailers and distributors
`
`in the United States” [ECF No. 1 ¶ 65]. Plaintiff alleges that Weiboli was on notice of this
`
`likelihood of confusion after the USPTO, on July 19, 2021, rejected Weiboli’s application to
`
`register the ELFBAR mark because it could result in confusion with Plaintiff’s ELF mark
`
`[ECF No. 1 ¶ 70; ECF No. 38-3 (USPTO official letter refusing registration application “because
`
`of a likelihood of confusion with the mark in U.S. Registration No. 5486616,” and then addressing
`
`similarity of the marks and relatedness of the goods and/or services)]. Weiboli nonetheless entered
`
`the U.S. market after the USPTO rejection and began to distribute its ELFBAR e-cigarettes
`
`[ECF No. 1 ¶ 72].2 Weiboli abandoned its application to register the ELFBAR mark with the
`
`USPTO as of January 20, 2022 [ECF No. 1 ¶ 71].
`
`On October 15, 2022, Plaintiff filed a four-count Complaint [ECF No. 1]. As relevant to
`
`Plaintiff’s Motion for Preliminary Injunction [see ECF No. 5 p. 9], the Complaint asserts that
`
`(1) Defendants are liable for trademark infringement under the Lanham Act because Defendants’
`
`use of the ELFBAR mark is likely to cause confusion with Plaintiff’s ELF mark in the marketplace
`
`[ECF No. 1 ¶¶ 100–07] (Count I – Trademark Infringement Under Section 32(a) of the Lanham
`
`Act, 15 U.S.C. § 114(a)); and (2) Defendants are liable for false designation of origin, because
`
`their use of the ELFBAR mark could cause confusion to consumers as to Plaintiff’s affiliation with
`
`
`2 The Complaint does not specify the exact date (after July 19, 2021) when Weiboli entered the
`U.S. market, but a representative for one of the distributors (Demand Vape) testified at the hearing
`that it began distributing Weiboli’s ELFBAR products in October 2021 [ECF No. 60 p. 88:10–12].
`
`
`
`3
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 4 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`Defendants’ products [ECF No. 1 ¶¶ 108–16] (Count II – Trademark Infringement, False
`
`Designation of Origin, and Unfair Competition Under Section 43(a) of the Lanham Act, 15 U.S.C.
`
`§ 1125(a)). 3
`
`On October 14, 2022, Plaintiff filed the instant Motion, seeking a preliminary injunction
`
`to enjoin Defendants from marketing their ELFBAR products or otherwise infringing on Plaintiff’s
`
`trademark [ECF No. 5]. Following notice to Defendants, a hearing, and full briefing, the Motion
`
`is ripe for adjudication [ECF Nos. 32, 34, 65, 66; see ECF Nos. 28, 75].4
`
`LEGAL STANDARD
`
`To obtain preliminary injunctive relief, a party must establish the following elements:
`
`“(1) a substantial likelihood of success on the merits; (2) that irreparable injury will be suffered if
`
`the relief is not granted; (3) that the threatened injury outweighs the harm the relief would inflict
`
`on the non-movant; and (4) that entry of the relief would serve the public interest.” Schiavo ex.
`
`rel Schindler v. Schiavo, 403 F.3d 1223, 1225–26 (11th Cir. 2005); see also Levi Strauss & Co. v.
`
`Sunrise Int’l Trading Inc., 51 F.3d 982, 985 (11th Cir. 1995). None of the four requirements “has
`
`a fixed quantitative value. Rather, a sliding scale is utilized, which takes into account the intensity
`
`of each in a given calculus.” Texas v. Seatrain Int’l, S.A., 518 F.2d 175, 180 (5th Cir. 1975) (citing
`
`
`3 Plaintiff also asserts claims for common law unfair competition against all Defendants (Count
`III), direct patent infringement against Weiboli (Count IV), and cybersquatting against Weiboli
`under the Lanham Act (Count V) [ECF No. 61]. On December 16, 2022, after the hearing on this
`Motion, Plaintiff filed a First Amended Complaint (the “FAC”) to add a claim for cybersquatting
`against Weiboli under the Lanham Act [ECF No. 61]. The FAC does not alter Plaintiff’s claims
`for trademark infringement and unfair competition under the Lanham Act. Accordingly, given
`the procedural history of this case as relates to this Motion, citations in this Order to Plaintiff’s
`complaint are to Plaintiff’s original complaint, whose allegations as relevant here are unchanged.
`
` 4
`
` Of the eight named defendants, seven were served with the Complaint and the Motion prior to
`the first hearing on the Motion [ECF No. 28]. The remaining defendant, Unishow (U.S.A.), Inc.,
`was served on January 30, 2023 [ECF No. 75], but appeared at the hearing and joined the
`opposition through counsel representing all Defendants in this action [ECF Nos. 16, 17, 26]. There
`is no suggestion of lack of notice as to Unishow.
`
`
`
`
`4
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 5 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`Siff v. State Democratic Exec. Comm., 500 F.2d 1307 (5th Cir. 1974)).5
`
`A “preliminary injunction is an extraordinary and drastic remedy not to be granted unless
`
`the movant ‘clearly carries the burden of persuasion’ as to the four prerequisites[,]” and ‘“[t]he
`
`burden of persuasion in all of the four requirements is at all times upon the plaintiff.”’ United
`
`States v. Jefferson Cnty., 720 F.2d 1511, 1519 (11th Cir. 1983) (quoting Canal Auth. v. Callaway,
`
`489 F.2d 567, 573 (5th Cir. 1974)). “[A] district court may rely on affidavits and hearsay materials
`
`which would not be admissible evidence for a permanent injunction, if the evidence is ‘appropriate
`
`given the character and objectives of the injunctive proceeding.”’ Levi Strauss & Co. v. Sunrise
`
`Int’l Trading Inc., 51 F.3d 982, 985 (11th Cir. 1995) (quoting Asseo v. Pan Am. Grain Co., 805
`
`F.2d 23, 26 (1st Cir. 1986)).
`
`To prevail on a trademark infringement claim, “a plaintiff must demonstrate (1) that its
`
`mark has priority and (2) that the defendant’s mark is likely to cause consumer confusion.”
`
`Frehling Enters., Inc. v. Int’l Select Grp., Inc., 192 F.3d 1330, 1335 (11th Cir. 1999). Courts
`
`consider seven factors in determining whether a likelihood of confusion exists: (1) type of mark;
`
`(2) similarity of the mark; (3) similarity of the products the marks represent; (4) similarity of the
`
`parties’ retail outlets (trade channels) and customers; (5) similarity of advertising media;
`
`(6) defendant’s intent; and (7) actual confusion. Id.
`
`DISCUSSION
`
`
`
`Upon review of the Motion and the full record, the Court hereby enjoins Defendants from
`
`use of Plaintiff’s ELF trademark through the selling of Defendants’ ELFBAR products in the
`
`United States. In doing so, the Court first determines that Defendants’ unlawful use argument
`
`lacks merit as a tool in this proceeding to invalidate and/or to declare Plaintiff’s trademark
`
`
`5 The Eleventh Circuit adopted as binding precedent all decisions of the former Fifth Circuit issued
`prior to October 1, 1981. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981).
`
`
`
`5
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 6 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`unenforceable. Turning to the applicable factors for injunctive relief, the Court concludes that
`
`Plaintiff has carried its heavy burden to show that it is likely to succeed on the merits of its
`
`trademark infringement claim because its ELF mark has priority and because Defendants’
`
`ELFBAR mark is likely to cause consumer confusion. Without injunctive relief, Plaintiff has
`
`sufficiently established that it is likely to suffer irreparable injury; that the threatened injury to
`
`Plaintiff outweighs any harm the injunction will pose to Defendants; and that the preliminary
`
`injunction will serve the public interest. The Court addresses each aspect of the analysis in turn.
`
`I.
`
`Unlawful Use Doctrine
`
`At the outset, the Court rejects Defendants’ lead argument to declare as unenforceable
`
`Plaintiff’s trademark under the “unlawful use doctrine,” which the Eleventh Circuit has not
`
`adopted [ECF No. 32 pp. 2–4, 7–9; ECF No. 65 pp. 5–6, 13–15]. As described by the Eleventh
`
`Circuit in FN Herstal SA v. Clyde Armory Inc., 838 F.3d 1071 (11th Cir. 2016), “[t]he ‘unlawful
`
`use doctrine’ appears almost exclusively in the administrative setting, originating in United States
`
`Trademark Trial and Appeal Board (“TTAB”) proceedings to oppose trademark applications or
`
`cancel registrations.” Id. at 1086.6 Interpreting the definition of the phrase “use in commerce” in
`
`15 U.S.C. § 1127, the TTAB has stated that “[a] mark ha[s] to comply with all applicable laws and
`
`regulations before a party may claim trademark protection for that mark.” Id. at 1087 (internal
`
`quotation marks omitted). 7 A party using the “unlawful use doctrine” to oppose a trademark
`
`
`6 The TTAB’s administrative trademark judges are authorized to determine a party’s right to
`register a trademark with the federal government or to retain a registration under challenge. The
`TTAB does not determine questions of trademark infringement or unfair competition. See
`generally About TTAB, USPTO Website, https://www.uspto.gov/trademarks/trademark-trial-and-
`appeal-board/about-ttab.
`
`7 Section 1127 defines “use in commerce” as “the bona fide use of a mark in the ordinary course
`of trade” which may lawfully be regulated by Congress, specifying further that a mark “shall be
`deemed to be in use in commerce on goods when,” as relevant here,” “the goods are sold or
`transported in commerce,” and separately defining “commerce” to mean “all commerce which
`may lawfully be regulated by Congress.” 15 U.S.C. § 1127.
`
`
`
`6
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 7 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`application or cancel a trademark application before the TTAB must prove by clear and convincing
`
`evidence that the mark being challenged is not entitled to trademark protection, because there has
`
`been “a finding of non-compliance[] by a court or government agency having competent
`
`jurisdiction under the statue involved, or where there has been a per se violation of a statute
`
`regulating the sale of a party’s goods.” Id.; see 37 C.F.R. § 2.111(b) (permitting “any person” to
`
`file a petition to TTAB for cancellation of trademark registration). A challenge under the
`
`“unlawful use doctrine” goes to the merits of a party’s trademark rights.
`
`As a defense to the Motion, Defendants argue that Plaintiff’s “asserted ELF trademark is
`
`unenforceable due to illegality,” because Plaintiff has not obtained FDA pre-marketing
`
`authorization to sell its ELF-branded products as required by 21 U.S.C. § 387j(a)(1)–(2).8 In a
`
`nutshell, Defendants’ position is that Plaintiff’s ELF-branded products—i.e., the ELF-branded
`
`vaporizer and e-cigarette battery—qualify as “new tobacco products” for which “premarket
`
`review” is required, see 21 U.S.C. § 387j(a)(1)–(2), because they are “intended or reasonably
`
`expected” to be used “for the human consumption of a tobacco product.”9 The FDCA prohibits
`
`“the introduction or delivery for introduction into interstate commerce of any . . . tobacco product
`
`
`8 Chapter 9 of the Federal Food, Drug, and Cosmetics Act (FDCA) gives the FDA authority to
`regulate tobacco products. 21 U.S.C. § 387a.
`
` 9
`
` A “new tobacco product,” includes, as relevant here, “(A) any tobacco product (including those
`products in test markets) that was not commercially marketed in the United States as of February
`15, 2007,” 21 U.S.C. § 387j(a)(1), and a “tobacco product,” in turn, is defined as
`
`
`any product made or derived from tobacco, or containing nicotine from any source,
`that is intended for human consumption, including any component, part, or
`accessory of a tobacco product (except for raw materials other than tobacco used in
`manufacturing a component, part, or accessory of a tobacco product).
`
`21 U.S.C. § 321(rr)(1). The FDA issued regulations, effective August 8, 2016, defining the terms
`“component or part” as “any software or assembly of materials intended or reasonably
`expected . . . [t]o be used with or for the human consumption of a tobacco product,” even if it does
`not itself contain tobacco or is derived from tobacco. 21 C.F.R. § 1100.3.
`
`
`
`
`7
`
`

`

`Case 9:22-cv-81576-AMC Document 83 Entered on FLSD Docket 02/23/2023 Page 8 of 32
`
`
`
` CASE NO. 22-81576-CIV-CANNON
`
`. . . that is adulterated,” 21 U.S.C. 331(a), and a “new tobacco product” without premarket
`
`authorization is considered an “adulterated product,” 21 U.S.C. § 387(b). Hence, Defendants
`
`contend, Plaintiff’s continued “marketing and sale of the [ELF] products is a per se violation of
`
`21 U.S.C. § 331(a),” which means, in Defendants’ view, that this Court should declare Plaintiff’s
`
`registered ELF mark unenforceable in this proceeding [ECF No. 32 pp. 7–9; ECF No. 65
`
`pp. 13–15]. Defendants do not dispute that there has been no finding by a court or government
`
`agency that Plaintiff is in violation of 21 U.S.C. § 331(a) or the pertinent regulations, and the
`
`record reflects neither a FDA proceeding against Plaintiff for its ELF products nor a TTAB
`
`declaration of unlawful use.10 11
`
`Acknowledging Defendants’ argument and the absence of definitive guidance from the
`
`Eleventh Circuit, see FN Herstal SA, 838 F.3d at 1087, the Court permitted Defendants to make a
`
`record on this issue,12 but the Court ultimately declines to apply the “unlawful use doctrine” to bar
`
`
`10 Defendants offered the testimony of Bryan Haynes, an expert in FDA marketing restrictions for
`tobacco products [ECF No. 60 pp. 13–54]. Mr. Haynes opined that Plaintiff’s ELF products would
`be classified as “tobacco product components,” because they are intended or reasonably expected
`to be used to consume a tobacco product and thus require pre-market authorization from the FDA
`[ECF No. 60 pp. 38:6–21, 39:12–23]. Mr. Haynes based his opinion in part on two FDA “Warning
`Letters” issued to other companies not implicated here, extrapolating from those letters that FDA
`would treat Plaintiff’s products similarly [ECF No. 58-5; ECF No. 58-6]. Mr. Haynes
`acknowledged that he had not seen an example of an FDA enforcement proceeding against a
`product “just like this”; that he was not aware of an FDA enforcement action or warning letter
`specific to Plaintiff’s ELF products [ECF No. 60 p. 47:8–14]; and that the application of the
`pre-marketing authoriz

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