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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`NUTRINOVA, INC.,
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`Petitioner,
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`v.
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`V
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`E
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`Cancellation No. 29,639
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`RIT-CHEM CO., INC.,
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`Respondent
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`Attorney Reference: C-18055
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`07-27-2001
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`u.s. Patent a. TMOfcITM Mall Rcpt Dt. m
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`PETITIONER’S MOTION FOR LEAVE TO AMEND PETITION
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`Petitioner herein, NUTRINOVA, INC., through its counsel, respectfully moves this
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`Board pursuant to Rule 2.115 of the Trademark Rules of Practice and Rule 15(a) of the
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`Federal Rules of Civil Procedure for leave to amend the current Amended Petition for
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`Cancellation to specifically include a claim of fraud in procurement of the registration at
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`issue in this case by reason of Respondent having submitted an Allegation of Use for
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`Intent- to-Use Application with Declaration based upon a token sale of goods bearing the
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`trademark to qualify it for registration, contrary to the requirements of Lanham Act §45,
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`15 U. S. C. §1127. This Motion is supported by the accompanying Memorandum.
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`Dated: Middletown, New York,
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`July 24, 2001
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` .2"
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`Peter M. Ferrell III
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`Attorney for Petitioner
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`Ki’
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`N‘
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`Peter M. Ferrell III, Esq.
`c/o Eileen T. Brown Associates LLC
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`90 Crystal Run Road, Suite 401
`Middletown, New York 10941
`Telephone: (914) 695-1661
`Facsimile: (914) 695-1558
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`CERTIFICATE OF SERVICE
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`I hereby certify that true copies of the within PETITIONER’S MOTION FOR LEAVE
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`TO AMEND PETITION and accompanying MEMORANDUM IN SUPPORT OF
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`PETITIONER’S MOTION TO AMEND PETITION were served upon counsel for
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`Respondent on this 24th day of July, 2001, by depositing same with the U. S. Postal
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`Service as first-class mail, postage prepaid, in an envelope addressed to:
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`Theodore W. Atkinson, Esq.
`VENABLE
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`P.O. Box 34385
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`Washington. D.C. 20043-9
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`Peter M. Ferrell III
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`CERTIFICATE OF MAILING
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`. @7//
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`I hereby certify that the foregoing PETITIONER’S MOTION FOR LEAVE TO AMEND
`PETITION with accompanying MEMORANDUM IN SUPPORT OF PETITIONER’S
`MOTION TO AMEND PETITION in Cancellation No. 29,630, is being deposited with
`the United States Postal Service with sufficient postage as First Class mail in an envelope
`addressed to:
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`Hon. Commissioner for Trademarks
`
`ATT: Trademark Trial and Appeal Board
`South Tower Building, 9”‘ Floor
`2900 Crystal Drive
`Arlington, VA 22202
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`on July 24, 2001.
`
`Peter M. Ferrell III
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`,4?’
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`
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`Q.
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`NUTRINOVA, INC.,
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`Petitioner,
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`V.
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`RIT-CHEM CO., INC.,
`
`Respondent
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`Cancellation No. 29,630
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`SECOND AMENDED PETITION FOR CANC ELLATIQN
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`Petitioner, NUTRINOVA, lNC., a corporation duly organized and existing under
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`the laws of the State of Delaware, having its principal office at 285 Davidson Avenue,
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`Somerset, New Jersey 08873, believes that it is or will be damaged by Registration No.
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`2,196,690, and hereby petitions to cancel same through this Second Amended Petition for
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`Cancellation amended to add a claim of fraud which has become known from the
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`evidence developed through discovery of records and personnel of Respondent in this
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`proceeding under the first Amended Petition for Cancellation.
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`Description of Respondent’s Registration: Filed on June 6, 1997, for the mark
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`K ACE-K SWEETENER and Design, registered on October 13, 1998 on the Principal
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`Register, in class 1 for artificial sweetener; claiming first use on February 9, 1998; no
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`claim is made to the exclusive right to use “SWEETENER” apart from the mark as
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`shown.
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`3
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`A?
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`As grounds for this Petition, it is alleged that:
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`1.
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`Petitioner is a leading manufacturer, seller and distributor of acesulfame
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`potassium, known in the trade as ACE-K and used as an artificial
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`sweetener as stated in Respondent’s description of goods in its trademark
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`application.
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`Petitioner, for many years prior to Respondent’s filing date and alleged
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`date of first use, has used ACE-K in its generic sense, i.e., a customary
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`and convenient abbreviation for acesulfame potassium. Furthermore,
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`others in the trade have so used this term and Petitioner has successfully
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`alleged in this proceeding that Respondent has no reasonable basis to
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`allege sole, exclusive use of it for trademark purposes.
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`Petitioner is likely to be damaged by registration of the said generic term
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`whether or not the exclusive right to its use is ultimately disclaimed of
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`record, in that the commercial effect of said registration tends to impair
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`Petitioner’s right to legal use of ACE-K in the manufacture, sale and
`distribution of acesulfame potassium which is identical or closely related
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`to Respondent’s goods and to which Petitioner has a valid and legal right
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`to refer by its common descriptive name.
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`Respondent’s registration was obtained fraudulently in that in the formal
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`application papers filed by Respondent under notice of 18 U.S.C. §l0O1 it
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`was stated that Respondent believed that to the best of its knowledge no
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`other person, firm, corporation or association had the right to use the mark
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`containing the undisclaimed generic term in commerce, either in the
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`identical form thereof or in such near resemblance thereto as to be likely ,
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`when used on or in connection with the goods/services of such other
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`person, to cause confusion, to cause mistake or to deceive. Said statement
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`was made by an authorized agent of Respondent with the knowledge and
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`belief that said statement was false. Said false statement was made with
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`the intent to induce authorized agents of the U. S. Patent and Trademark
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`Office to grant said registration and, reasonably relying upon the truth of
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`said false statements, the U. S. Patent and Trademark Office did, in fact,
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`grant such registration to Respondent. Petitioner is damaged by said false
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`statements and the registration issued in reliance thereon in that long prior
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`to the filing date of the application for registration of Respondent’s
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`trademark containing undisclaimed generic matter and the alleged date of
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`first use, Petitioner has continuously used the term ACE—K on or in
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`connection with its acesulfame potassium goods and Petitioner’s
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`continued and legal use of the generic term is and will be impaired by the
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`continued registration of said mark of Respondent.
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`Upon information and belief, Respondent’s registration was obtained
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`fraudulently in that in its Allegation of Use for Intent-to-Use Application,
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`with Declaration dated May 26, 1998 Respondent states that the date of
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`first use of its trademark in international commerce was February 9, 1998,
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`whereas the sale of goods allegedly bearing the trademark on that date was
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`not use in commerce sufficient to qualify the K ACE-K SWEETENER
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`and Design trademark for registration under Lanham Act §45, 15 U. S. C.
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`§l 127, but at best appears to be a token shipment made merely to reserve
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`a right in the mark. Said statement was made by an authorized agent of
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`Respondent with the knowledge and belief that said statement was false.
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`Said false statement was made with the intent to induce authorized agents
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`of the
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`U. S. Patent and Trademark Office to grant said registration and,
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`reasonably relying upon the truth of said false statements, the U. S. Patent
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`and Trademark Office did, in fact, grant such registration to Respondent.
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`Petitioner is damaged by said false statements and the registration issued
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`in reliance thereon in that long prior to the filing date of the application for
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`registration of Respondent’s trademark containing undisclaimed generic
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`matter and the alleged date of first use, Petitioner has continuously used
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`the term ACE-K on or in connection with its acesulfame potassium goods
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`and Petitioner’s continued and legal use of the generic term is and will be
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`impaired by the continued registration of said mark of Respondent.
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`6 .
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`Upon information and belief, Respondent’s address is:
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`Rit-Chem Co., Inc.
`109 Wheeler Avenue
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`Plcasantville, New York 10570
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`WHEREFORE, Petitioner respectfully prays that Registration No. 2,196,690 for
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`the mark K ACE-K SWEETENER and Design be cancelled and that its Petition for
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`Cancellation be sustained in favor of the Petitioner. Alternatively, if the Trademark Trial
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`and Appeal Board does not sustain the Petition for Cancellation of the Registration in its
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`entirety, Petitioner respectfully prays that Respondent be required to disclaim any
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`exclusive right to use of the generic term ACE—K other than in the mark as shown in the
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`said Registration in accordance with the Order of this Board mailed November 28, 2000.
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`Dated: Middletown, New York
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`July 24, 2001.
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`NUTRINOVA, INC.
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`By:
`
`
`
` Peter M. Ferrell I
`
`Attorney for Petitioner
`c/o Eileen T. Brown Associates LLC
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`90 Crystal Run Road, Suite 401
`Middletown, New York 10941
`Telephone: (845) 703-1661
`
`
`
`
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`5-‘
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`NUTRINOVA, INC.,
`
`Petitioner,
`
`v.
`
`E
`
`Cancellation No. 29,630
`
`RIT-CHEM co., 1NC.,
`
`Respondent
`
`Attorney Reference: C-18055
`
`MEMORANDUM IN SUPPORT OF PETITIONER’S
`MOTION FOR LEAVE TO AMEND PETITION.
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`Petitioner herein, NUTRINOVA, INC., respectfully submits this Memorandum in
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`support of its Motion for Leave to Amend the Amended Petition for Cancellation of
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`Registration No. 2,196,690 on grounds of evidence located during the discovery phase of
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`this proceeding indicating that the use of the K ACE-K SWEETENER and Design
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`trademark in commerce relied upon by Respondent to qualify it for registration was
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`insufficient for the purpose under Lanham Act §45, 15 U. S. C. §1127.
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`I. INTRODUCTION AND SUMMARY.
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`By its Order mailed November 28, 2000, the Trademark Trial and Appeal Board
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`determined that Respondent would be allowed to amend its Trademark Registration No.
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`2,196,690 to add a disclaimer to any exclusive right to use of the term ACE-K, rendering
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`moot the first claim of Petitioner in the Amended Petition to cancel the registration on
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`grounds of generic content. This case thus proceeds solely on Petitioner’s claim of fraud
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`in procurement of the registration.
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`E
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`II. STATEMENT OF FACTS.
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`Petitioner had filed the first Amended Petition in response to the July 10, 2000
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`Order of the Board allowing it to do so, and clearly stated a claim for fraud premised on
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`the allegation that Respondent knew at the time of filing its Trademark Application with
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`Declaration that others had the right to use the undisclaimed generic term in commerce
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`(Amended Petition, Section 4). During the discovery phase of this proceeding, Petitioner
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`has obtained evidence that Respondent has compounded the fraud upon the United States
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`Patent and Trademark Office of stating it had the exclusive right to registration and use of
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`the trademark containing an undisclosed generic term by fraudulently claiming qualifying
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`use of the mark in commerce.
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`The Trademark Application file for Registration No. 2,196,690 of the trademark
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`K ACE—K SWEETENER and Design contains the Allegation of Use for Intent-To-Use
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`Application, with Declaration (Amendment to Allege Use/Statement Use) executed by
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`Respondent on May 26, 1998 alleging first use of the trademark in commerce regulated
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`by the United States Congress on February 9, 1998. During depositions of certain
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`executives of Respondent on April 24, 2001, the President of the company was asked
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`about the alleged date of first use and provided a redacted copy invoice purporting to
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`show sale and shipment of a 25 kg. drum of acesulfame potassium allegedly bearing the
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`trademark to an undisclosed customer in Canada on the date claimed (Petitioners
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`Deposition Exhibit 30 for ID, copy attached as Exhibit A).
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`The Petitioner in this case markets acesulfame potassium made under a process
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`patent owned by its corporate parent, Nutrinova Nutrition Specialties & Food Ingredients
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`GmbH. When it was reported that Respondent was selling product produced abroad in
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`United States commerce, possibly in violation of the patent rights, Petitioner and its
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`parent company engaged patent counsel to contact the Respondent. On information and
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`belief, the two organizations have discussed settlement of the patent claim without
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`resorting to litigation, and copies of certain correspondence have been made available to
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`the undersigned counsel for Petitioner for use in this proceeding. The two letters
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`Respondent sent to patent counsel for Petitioner and attached to this memorandum as
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`Exhibits B and C (including for clarity the form Affidavit ANNEX 1 referred to in the
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`Rit—Chem letter) therein will be offered into evidence and qualified as business records of
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`Petitioner during its testimony period in this case. They are also subj ects of a Request for
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`Admission(s) served simultaneously with this Motion.
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`On information and belief, the negotiations of the claim of patent infringement
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`include or included the request for Respondent to disclose its sales volumes of
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`acesulfame potassium for purposes of discussing financial damages to Petitioner. The list
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`of sales with redacted invoices produced under the March 7, 2001 letter from Respondent
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`attached as Exhibit B clearly shows the first sale of product as having an invoice date of
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`June 7, 1999. The reference to that list contained in Exhibit C, the letter of June 14,
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`2001, affirms the accuracy of the information in the last paragraph of its first page and in
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`the comments to ANNEX 1 on the second. And yet the May 26, 1998 Allegation of Use
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`for Intent-To-Use Application with Declaration in the USPTO Trademark Application
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`File recites that the date of first use by Respondent of the K ACE-K SWEETENER and
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`Design trademark as applied to the Respondent’s acesulfame potassium product in
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`commerce lawfully regulated by the United States Congress was February 9, 1998.
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`While it is possible Respondent may have had another supplier of acesulfame potassium
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`at the time of the alleged sale of product in February 1998, at this point there has been no
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`record or testimony from Respondent identifying either the customer or supplier of that
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`product despite appropriate discovery requests by Petitioner. The nearly one and one-
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`half year interval between the sale dates shown in the Allegation of Use and the first date
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`on the list in Exhibit B has prompted this Motion to broaden the scope of the fraud claim.
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`III. ARGUMENT
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`Through review of responses to discovery requests and during discussions of this
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`case with opposing counsel, both in connection with discovery requests and at the
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`discovery depositions of executives of Respondent, the undersigned counsel for
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`Petitioner has been informed that a number of outstanding discovery requests are viewed
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`by Respondent as not being relevant to the issue of cancellation of the subject trademark
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`registration for fraud on grounds of knowledge of a generic component at the time of
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`application. Immediately prior to the depositions of executives of Respondent in April,
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`2001, a form of Protective Order was provided to counsel for the Respondent but it has
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`not been executed nor will Respondent provide further information withheld from
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`production in response to discovery requests on grounds of relevance and confidentiality
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`without a contested Motion to Compel.
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`The same sort of reasoning is being used by Respondent to avoid providing
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`additional data as to the particulars of sale of product under the trademark at issue in this
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`proceeding, the objection being that such data does not relate to the fraud claim based on
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`genericness stated in the Amended Petition, which certainly alludes to the date of first use
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`by Respondent only as “alleged.” Petitioner submits it is appropriate for the Trademark
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`Trial and Appeal Board to grant leave to amend the Petition in this cancellation action to
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`include a claim of fraud based upon an apparent. single, token shipment of product
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`allegedly bearing the trademark by Respondent in 1998 made merely to reserve a right in
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`its mark contrary to the provisions of Lanham Act §45, 15 U. S. C. §1127. The Act
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`provides inter alia that, “The term ‘use in commerce’ means the bona fide use of a mark
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`in the ordinary course of trade, and not made merely to reserve a right in the mark.”
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`In spite of the difficulties encountered in its discovery efforts, Petitioner has
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`included documentation with this Motion which demonstrates a significant possibility of
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`fraud on the part of Respondent in the trademark application process. If admissible
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`evidence ultimately proves that claim unfounded, it will have had the benefit of scrutiny
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`and determination by the Trademark Trial and Appeal Board.
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`IV. CONCLUSION.
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`Petitioner fully intends to file the necessary Motion to Compel at the appropriate
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`interval in this case, at which time it may be seen whether the Respondent has or can be
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`expected to meaningfully reply to the Request for Admission(s) seeking direct
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`confirmation of the of the source of Exhibits B and C to this Memorandum. If history is
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`any guide, it is suggested that allowing the amendment of the Petition to the form
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`included with this Motion reflecting developments to date will serve to better focus the
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`outstanding requests for evidence relevant to trademark law issues expected to be briefed
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`in proceedings on the Motion to Compel, rather than encourage argument that the fraud
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`claim in the Petition does not extend to the apparent token sale upon which Respondent
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`qualified its trademark for registration. If leave to amend the Petition were not granted,
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`Petitioner could continue to be frustrated in its efforts to complete permissible discovery
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`to establish elements of fraud.
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`Dated: Middletown, New York,
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`July 24, 2001
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`
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`Peter M. Ferrell III
`
`Attorney for Petitioner
`c/o Eileen T. Brown Associates LLC
`
`90 Crystal Run Road, Suite 401
`Middletown, New York 10941
`Telephone: (914) 695-1661
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that true copies of the within PETITIONER’S MOTION FOR LEAVE
`
`TO AMEND PETITION and accompanying MEMORANDUM IN SUPPORT OF
`
`PETITIONER’S MOTION FOR LEAVE TO AMEND PETITION were served upon
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`counsel for Respondent on this 24th day of July, 2001, by depositing same with the U. S.
`
`Postal Service as first-class mail, postage prepaid, in an envelope addressed to:
`
`-5-
`
`
`
`
`
`Theodore W. Atkinson, Esq.
`VENABLE
`
`P.O. Box 34385
`Washington. D.C. 20043-999
`
` Peter M. F
`
`ell III
`
`CERTIFICATE OF MAILING
`
`I hereby certify that the foregoing PETITIONER’S MOTION FOR LEAVE TO AMEND
`PETITION with accompanying MEMORANDUM IN SUPPORT OF PETITIONER’S
`MOTION FOR LEAVE TO AMEND PETITION in Cancellation No. 29,630, is being
`deposited with the United States Postal Service with sufficient postage as First Class Mail
`in an envelope addressed to:
`
`Hon. Commissioner for Trademarks
`
`on July 24, 2001.
`
`ATT: Trademark Trial and Appeal Board
`South Tower Building, 9”‘ Floor
`2900 Crystal Drive
`Arlington, VA 22202
`
`
`
`Peter M. Ferrell III