Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov
`ESTTA211892
`ESTTA Tracking number:
`05/15/2008
`
`Filing date:
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`92043340
`Defendant
`Spirits International N.V.
`Lisa Pearson
`Kilpatrick Stockton LLP
`31 West 52nd Street, 14th Floor
`NEW YORK, NY 10019
`UNITED STATES
`lpearson@kilpatrickstockton.com, agarcia@kilpatrickstockton.com
`Brief on Merits for Defendant
`Laura C. Miller
`lamiller@kilpatrickstockton.com, lpearson@kilpatrickstockton.com,
`wbryner@kilpatrickstockton.com
`/Laura Miller/
`05/15/2008
`REDACTED RUSSKAYA Resp Brief.pdf ( 64 pages )(6672114 bytes )
`
`Proceeding
`Party
`
`Correspondence
`Address
`
`Submission
`Filer's Name
`Filer's e-mail
`
`Signature
`Date
`Attachments
`
`

`
`IN
`
`US. .P;’-ETENT Aifl} ’"E”R.,AI.}Ei\'L4’kRK (}E~’FLi{3?E
`
`BEFGRE
`
`'_i"RA.i'}E.I\/§_ARK TR} A1.‘ AND APFEA L. ‘8OA§‘{§‘_}
`
`A.V. BRANDS, INC. (by assignment),
`
`Petitioner,
`
`VS.
`
`SP'iR.i'E”S IN'I‘ERNATICa‘NAL, N.V.,
`
`Respondent and Registrant.
`
`K/\/\.-‘\/n./\/2/\2
`
`Carieeiiatiozrz No. 92043340
`
`Registration No 1.4874342
`
`Mark: RUS S’§{.e’§YA
`
`RESPGNBENTS TREAL BRIEF
`
`Lisa Pearson
`
`KELPATRICK STOCKTON LLP
`31 West 52nd Street
`14”‘ Floor
`
`New Yori.~:, NY 10019
`
`(212) 775-8700
`
`Wiiiiam M. Bryn_er
`Laura C. Miller
`
`K1LPATREC.K STOCKTC:=N LLP
`
`1%}. West Fourth Street
`
`W§nston~Sa1em, NC ZZ’.?"1{}1
`
`{S36} 60’7~"?3i3G
`
`

`
`TABLE GE‘ CGNTENTS
`
`Page
`
`ENTRGD UCTEGN ................................................................................................................. .. 1
`
`EEESEREFTEGN Q}? THE RECGRETE ................................................................................... ..3
`
`STATEMENT 037 TE-iii ESS§.EE<lS ......................................................................................... ..3
`
`Ei~}'.E"A.’.i"E§';I%'EL§31I“~§’i§f‘
`
`€32?‘ FACTS ................................................................................................... ..4
`
`I.
`
`The Parties and an Undisciesed R3211 Party in h1'£.€3I“€.?SE,
`
`................................................ .14
`
`A.
`
`B.
`
`'3.
`
`Res;:~onde1‘1‘t Eépi1'i‘ts En1‘m‘nati:>n:5.i, N.V. (ncsw kzmwn as; Spirits
`}111:e11‘112c£io11a1, B37 .) ........................................................................................... ..«'-'1
`
`Petitionar AN". Siimndg, iimc.
`
`Federal Trcasuly E11"Lé31“p1’iS(-3 Scijtizplefeoinipcrt ............................................... .. S
`
`H.
`
`SPFS International 'I’rad$:na1*§P0rt1“0§i0 21ndIE*'amo'11s. V/'0d.ka Brands. ......................... .. 7
`
`EH.
`
`’".E"‘h¢ E-Iist<:>ry of SPI’$ U.531 RUSSKAYA Registration ................................................. .. 8
`
`EV. Woridwide Liiigati1:311 Silrrounding ‘(ha Vedka. Marks ................................................ .1 3
`
`A.
`
`B.
`
`Russizm Proceedings ....................................................................................... .1 12
`
`The W3j3?’i} Rea:01"datio1': of C3ha11g,a of éffiwnarsliip 0f SPf3I’s 111te1‘11a1tE011a1
`Ragistraticns :0 3?”‘H59 and Resiximag I_..ifig21ti0.r1 to Corrmzt I1‘; .......................... .. 34
`
`Qiher Fcs1*eig11 Litigaiion and Prcwgteesdings ..................................................... ,. 1:3
`
`I). U 3?‘ms:£3edi11;_z_s ............................................................................................ .. 17
`
`‘V 1,
`
`SP1 Made
`
`Pr‘ude:.11: Business Decisicua Nat Ta mvaest E£1.1bstantia3 R.€tSO1li‘C€S
`
`to
`
`R€:i:1vig0rati:1g the REES; SK.A"1"./-*1 Branci in1‘;}.1e US. Whiis It Was I}efeendi11g its
`€j3wr.1ers}1.i;1*: 0ft}1eB1‘am31 in Wofleziwide Litigation ..................................................... .. 18
`A.
`The ‘1Vor1d1Ividc L.i1'.iga11ir311 Di\.it':rt<:d Criiicai Resources...................................18
`
`B.
`
`R.e~}Eau11c11§11g 231:3 RUSSK1-‘=J‘x’A Brand in the LES. Wsmld Have
`Required 21 Significant 1nves'i111r;=.11i in Uncertain Timesg ................................ .119
`
`V1,
`
`SETS 1111811111‘: R.e3:~E21unch the R.USf_w."KA.YA Ma1‘1«; in the US .................................... ..20
`
`A1
`
`8?} H215 Been E3Lng:;=.ge:d in Ongoing Negmiatiozls with its h'np02°ter. .............. ..2€I)
`
`US2000 10741152 12
`
`I
`
`

`
`TABLE OF Cenreigijs
`(centki)
`
`B.
`
`SPI’s Contract with Allied Domecq Does Not Preclude the Importation
`or Distribution of RUSSKAYA Vodka in the U.S ......................................... ..21
`
`Page
`
`C.
`
`SPI’s Actions Demonstrate Continued Interest and Investment in the
`
`RUSSKAYA Brand. ....................................................................................... ..22
`
`ARGUMENT ....................................................................................................................... .. 23
`
`1.
`
`Petitioner Has Not Carried Its Burden of Proving Its Standing to Cancel
`Respondent's RUSSKAYA Registration ....................................
`......................... ............. .. 23
`
`II.
`
`SP1 Has Not Abandoned the RUSSKAYA Mark ...................................................... .. 26
`
`A.
`
`B.
`
`Petitioner Has Not Carried its Heavy Burden of Proving Abandonment....... .. 26
`
`SPI Has Not Discontinued Use of the RUSS}§..AYA Mark "With An
`
`Intention Not To Resume Use ........................................................................ ..28
`
`1.
`
`3.
`
`SPTS Nonuse is iifixeused by the Legal Assault en its Rights tn
`the Vodka. Marks, ................................................................................ .329
`
`SP1
`
`an Intent Net To Resume Use ofthe
`
`RUSSKAYA Mark
`
`SPI’s Intent is Corroborated by SPI’s Continued Use and
`investment in the RUSSKAYA Mark ................................................ .. 3'?
`
`4.
`
`Petitioner Has Offered No Affirmative Proof of SPI’s Intent Not
`
`To Resume Use of the RUSSKAYA Mark ........................................ ..38
`
`EVIDENTIARY ISSUES .................................................................................................... .. 39
`
`I.
`
`II.
`
`Respondenrfls Response to Petitionefs “Objections” ................................................ ..39
`
`Respendenfs Objections ........................................................................................... ..4l
`
`A.
`
`Objections to Exhibits A, B, and C to A.V. Imports’ First Notice of
`Reliance .......................................................................................................... ..4l
`
`B.
`
`Objections to Exhibit F to A.V. Imports’ First Notice of Reliance ................ ..4l
`
`Objection to Exhibit J to A.V. Imports’ First Notice of Reliance .................. ..42
`
`Objection to Exhibit M to A.V. Imports’ First Notice of Reliance ................ ..43
`
`Objection to Exhibit N to A.V. Imports’ First Notice of Reliance
`
`ii
`
`D.
`
`iii,
`
`US2000 l0741l52.l2
`
`

`
`TABLE 8?‘ CQNTENTSV
`
`{ctmt‘d)
`
`F.
`
`Objection to Exhibit Q to A.V. Imports’ First and Second Notices of
`Reliance .......................................................................................................... ..44
`
`}’age
`
`DNCLUSEON
`
`44
`
`USZOOO 1074115212
`
`iii
`
`

`
`Cases
`
`”.E‘ABE_.:§l GE?’ A‘U’E‘Ei{)RET1ES
`
`
`
`
`
`................................................................... ..1Z7
`
`,}’.Q. 170 (T.T.A.B. 1984) ...............
`225
`£>;:.}j.W1;§‘;g1;;3g;ris. Inc. V. Ssiriis Intemationai. N3/'.,
`Cane.
`92043340, 2805 WI. 2366791 (T.T.A.B. Septembe1' 3.9, 2005)
`Burgess V. Giiman,
`78 U.S.P,Q.2d N73 (D. Nev. 2636) ............................................................................ I218? 39
`allace, inc. V. Procter £5 Gambia Ca,
`434 ”E".2d 794, I67 U.S.P.Q. 713 (9th Cir. 1970) ......................................................... ,;3G, 34
`Cervecsria Ce11t1'0an1<:rica11a. SA. V. Cervecc:i:3,,1;3‘g{§§1_§gjg§_:,
`S92 F.2ai 1(}2}{Fed. Cir. 1989) .......................................................................................... ..1Z?
`Chandon Cham 3a§3n{3 C€3.I'°3*. V. San Marine ‘~?v’ine‘§;g§§j§,_,
`
`335 F.2d 531, 142 U.S.P.Q. 239 (2d. Cir. ZE9€54} ......................................................... ..28, 1'19‘
`Ch<->;~;ie:r L. Krausc V. Krause Publfils. .Inc., '76 U.S.P.Q.2d 1964 (’1‘.'I".A.}3. 2095) ............... ..2
`Clcxrox Ca. V. Chemical Bank,
`
`......
`
`40 ’U.S,P.Q.2d 1998 (T.T.A.B. 1996) ........................................
`
`VC011iin::.11ia1 Distilling Com, V. 01:1 Chara-tr Disiiilem‘ Cu.
`£38 F.2d 614, 87 US. P.Q. 365 (DC. Cir. 1950)
`Cuban Cigar Brands NV. V’. Uggnann Inf}.
`457 F. Supp. 1390, 19%.? U.S,P.{;9. 193 (S.D.N.Y. 1978} ....................................................
`Emcrj
`One. inc. V.
`228 F.3d 531, 56 U,S.P.Qj.2d 1343 (4th Cir. 2060) ........................................................... ..28
`,.EJ;;13.11.1:;m::§a;C1>.1.b...amn..a.me¥.t.?.1....T....a.
`<30:*::.:,
`213 F.R.D. 151 {S.D.N.Y. EGGS) ....................................................................................... .29
`
`
`
`
`399 F.3d 458 (2d Cir. 29135} ............................................................................................... .36
`‘NE,
`..’Z(3()6) ............................................................................... ..17
`
`"25 F. Supp. 2d 458
`
`8% F. Siipp. 485) (EE§,D.N.Y. 1992:) .................................................................................... ..3 1
`
`899E’.;2c13575, 14U.S.P.Q.2d 139(}{E*'s<:£.{Zi1'.
`IEIE3 14 fi,1£ inc».
`482 F.3d £35 (2:31 Cir. EGG?) .............................................................................................. .36
`
`ETC V. ?L11”lCh..¢‘iI1i. £110.,
`
`74 ’U.S.P.Q.2d 12353 (S.E},N.Y. 2095) ............................................................................... ..37
`
`675) .3?".;2d 3024, 213 'U.ZS§.}’.Q. 185 (C'..(?.3§’.A.. E982} ............................................... H23. 24, 27
`..M§_a”_.1_:23
`,
`345 F. Supp. 527, E74 U.S.P.Q. 30 (S.D.N.Y. 3.972) ........................................................ ..29
`
`[$82009 E074! 152.23
`
`iv
`
`

`
`TABLE GE‘ AUTHGRETEES
`
`(«:<111i’§)
`
`1 U.S.P,Q.2d 1445 (T.'3.".A.B. 191111) .................................................................................. ..4«1
`
`969 11211 486, 22 11’.s.'11.Q. 1773 (5th 1:311. 1992) ............................................................... ..27
`
`17 ‘U.:§.1>.1'3. 21-1 111711 ('1‘.'1'.A.11. 1990) ............................................................................... .44
`
`1911 13.291 415, 911 U.S.P.Q. 1.511131%». 1951) ................................................................. .31)
`....On~Lim Care11.11...1».f1..i11.11:..:13.=..A1111§1ti9;@.1;}111i111;_;E.111;..1
`229 9.311 11131). U.S.P.Q.2d 1471 (Fed. 11:11-. 211119) ............................................................ ..27
`
`439 1.1.3. 32:1, 99 3.131. 645, 58 L.}§31i.2d 552 (1979)
`
`13
`
`1913 U.S.F.Q. 251 ('1.'1‘.A.13. 1.977) ............................................................................... .34,
`Rivard V. Linviiiee,
`133 F.3d, 1«=1:111.451;1.s.1>.1;3.211 13-74 (1135:. Cir. 1993) .......................................... .27. 29, 3:2
`Seidézlmarm
`14 U.S.P.Q.?.d 1497 (13. 11111, 11139;: ................................................................................... ..27
`
`3711 F.2d 40, 9 11.S.1>.Q.:2c1 177:1 (‘lei Cir. 1.939)....._ .........
`S1ar"Kis'i E10.
`759 13.241 1393, 2:27 ‘U.:1.1>.Q. 44 (9111 Cir. 1985} ......................................................... .28, 39
`
`..............
`
`.............
`
`................... ,.2s
`
`737 11.211 15711222 U.131.1>.Q;. 1165 (Fed. Cir. 1984) ........................................................... .39
`
`234 11.211. 633,, 1119 U.s.:1>.Q. 438 (211 Cir.
`
`3135 1.13:1 53:1, 67 U.S.P.Q.;i'Z1:i 144517111 1311». 3111113) ...................................................... .30. 34
`
`11131111133
`
`15 11.3.0. § 1957(1) ............................................................................................................... .25
`15 11.3.9 1. 11160 ................................................................................................................... .25
`15 11.5.6. § 101311121111) .......................................................................................................... ..-2.5
`15 U.S.C.
`11:27
`2.8, 36
`
`R11E1.=.s
`
`.. gm .
`.
`Ea‘:
`"C1 R 3* "C1 21)}
`<1
`,7
`‘
`.e..._..11.€)
`43
`F d 3%‘;
`If‘
`’d 4'1
`2
`1
`.
`}‘C{§. R. EV11:i.4()2 ................................................................................................................... ..4-.
`
`................................................................................................................... ..
`
`11
`
`................................................................................................................... ..
`
`Reg11iaii011s
`
`C.F.R.. § 2.121'J{§){3}(i) ...................................................................................................... ..44
`
`EJSZDOG 1074 I 15132
`
`

`
`TABLE OF A.U'"i‘Ei0RE'i"§ES
`
`(mnfd)
`
`3?‘ C.F.R § 2.l22(21) .............................................................................................................. .131
`3'7 CJXR §2.122(e)
`............................................. "4-2
`37 C117 R §fZ.l28(b) ................................................................................................................
`
`Qther Aufimriiies
`
`Pave1Arievich & 3‘uEi.'«m G§’9-$511;§_h§3S§?}_§§1§§_E32?ii!"§s?:$I1_§___:§fh£‘§__A§iT§f§£?1lE}r§§..Q§.§.§.9}fi§’§..f:v{Q§E§
`Brand, World Tra,demark Review (Ix/lay/Jux1e 2098) ......................................................... ..1 1
`Trademark Trig} and Appeals .‘i§oardMa1111a.1 of Procedme § 512 .......................................... ..4
`Tradernark Triai and Appeals Board Manua}. of Frocedtlre § 704(3) .................................... ,1}
`'1‘:'a.dema.:'3«: '1‘riaE a.r1dApp6a1s BoardMam.1a1 Qf Procedme § 7€)7.€)4
`................................... .39
`Trademark Tt°ia.E and Appeals Board ].\/.iIanua3 of Frocedtlre § 801.03 ..................................... ..3
`
`US$200-1) I074! I;$2.!2
`
`vi
`
`

`
`iiN"i‘R€J;°i)'UC'i‘i{}N
`
`As detailed mere fully below, this earioeiiatioii proceeding is just one front in the
`
`highly politicized worldwide attack on the trademark rights in highly successful vodka
`
`brands owne i by Spirits international
`
`and its successor {collectively “R.espendent”}.
`
`Tirese brands? ineiuding S'I’OLiCi-Ii*~EAYA,, it/it'}SC0‘»’SK./3i‘i’A3 and the RUS SE11’-‘i‘a’.A bnzind
`
`at issue in this nroeeetiing, are arnong the wori<‘i"‘s best known and best setting vodka brands.
`
`it is therefore. not surprising that others, irieiutiing the Russian Fetierzttieii, Petitioneris
`
`Russian st.ate—owrie 1 business partner and. new Petitioner, have tried to grab these brands, in
`
`courts, tradernsrk ofiiees and other trihuiieis around the world, for their ewn use eird
`
`expioitatiori.
`
`Respondent is the owner of U.S. Registration No. 1,487,042 for the mark
`
`RUSSKAYA for Vodka, as well as registrations for that mark in more than eighty-five other
`
`countries“ Res§:aor1tient}.i;=es never eeaseri use of the R.USSi<AYA mark in the U15, with an
`
`intent not to resunie use.
`
`instead, Respomient has been under siege, vigoreusiy defending
`
`ownership of its portfoiio of vodka tracieinariis in litigation. thretigheut the world. Due to the
`
`orchestrated giobai atttiei; on Respondent"s as inership of its vodka tradeniarks and the
`
`t3{)t’1C(.¥11‘1i‘iEtI1i drain on Respondenfis resources, Respondent rnade a}}1‘L1(1i€I‘hfLi’)uSi11§3$S decision.
`
`It decideti to devote its attention to insintaining the €??~;iS'ii1"1g
`
`1‘I?aE;tl‘i<;t3'iS for its vodka products
`
`and defer the substantial investment required to re-launch brands such as RUSSKAYA in the
`
`‘urrtit the tineertainty created by the litigation dissipated and Respondent eouid :.ievote
`
`the n.eeessai'y attention anti resourtzes to succeed in that endeavor.
`
`it has _i_i_e_‘_ig'_erj wavered in its
`
`resolve to use the RUSSKAYA mark in the U.S.
`
`US2000 10741152 12
`
`

`
`The faetuai record is Earge and dense. ‘Befere the Beard reviews it, it may wish ‘:0
`
`focus; an the ilhresheid pmeedtzrai issue of Pe1:iti0net°'s smmiizmg, addressed in Paint 1 of the
`
`Argument beiow. Aceeniing to the Motien to Eafubstitute Petitienex‘ flied on Ii?~‘eb1'11z1rj,«' 15,
`
`2008, the current Petitioner AV, Bifands, Ems, (“.A.V. B1'a:‘sds” er “Petiti011e1"’} put°p0:‘ts to
`
`have acquired its rights in the intent»te~use appiicatiens to register the R.VUSfEé}<;./5,‘§:’A mark
`
`fmm the eriginai Petitioner, AN’. imparts, inc. (“A..V. imports”), by assignment dated Aprii
`
`9, 2987. However, that assigmnem, is not part of the z'ec.0.rd, nor are any ether facts
`
`eenceming AIV. Bnmds. Further, a.ssig:.m:ems cf inte'm‘:~’e;e~use appiieafiens are only valéd in
`
`limited circumstances not pmven by Petitiener here. Aceerdingiy, this preeeeding is
`
`vulnerable 10 dismissai flue to Petitim*.e1"s {ask of standing, and the Board need never reach
`
`the merits efPetii‘iener’s grolmds fer esmszeilation.
`
`E}.’§Z~‘.0-3310'.’-'1l!.‘§2‘.2
`
`Rx.)
`
`

`
`IEE-.‘:§CREP”i‘i€}N OLE‘ 'I‘itE§Lt<l §E$t1~';‘(?€}RI}
`
`Respendeht submits this brief in aeeerdar1eeWithR.u1e 2.123(b) 01° the Tt'.;":tC§E:,t'I}£3a.i‘}~‘Z
`
`Ruies efPre.etiee, 37 CER.
`
`2.128.633), and T.i3.M.}?’. § 80E J33. Respondent accepts
`
`}’etiti.eher’s description efthe record as outlined in iE?etitiene.t’s Tria} Brief (hereinafter “Pet.
`
`B.r.”)_, but notes that the record 3330 CO1’t't.3Et.i£‘).S .AfV'. 3.t11p(‘3i'tS’ Seeersd Netiee <_‘2fRC§i53.1'1£}£3,
`
`including féixhibit Q, and AN, Imports’ Third Notice of Reiienee, ineiuding E>:11thit R.
`
`1‘§tetat>}},i., neither Petitieher 3101‘ AN’. hnperts has intmdttced any testimony frem any witness
`
`with fttet hand knew rledge of the facts at issue.
`
`S'E‘A'E‘E:‘V§.ENT 0}? THE ESSUES
`
`{1} Whether Petitioner has carrier} its burden efpreving its stanttirig. as the pttrperted
`
`aasignee of an intent-te~use epptieatien fer the RUSSKAYA. m§:1I‘}{ tiled by AN‘.
`
`imparts, in the absence ef may evidence efreeerd eeneerning either Petitioner or the
`
`assignments.
`
`(2)
`
`Whether Petiticrner has carried its heavy hurtieh ef previrtg that R.espem3te11t has
`
`abandoned its US, rights in the registered R.USE§iE<;Af“r’A nrark, (me of the premier
`
`brands in Respentter1t’s interrmttierral vezciftm. pert.feI.ie, based upon 2. three year peried
`
`of nenuse in the U.S., in Eight of (1) the weridwide legal attack en Respondertfs chain
`
`eftitie te its ‘vehzahle V-edtzia. trademarks; (ii) Resp-endent°s eorttinuing hegetiatierts
`
`with its US. distr‘ihutor ctmeerni.ng ar'e»1auneh ef the RUSSETAYA brand in the US.
`
`when the timing is right; (iii) preparatory steps to tie Se; and (iv) the substahtiéti
`
`reseurees Respenderrt has devoted to tiet‘etrdirag its tr‘;~2aderraa.ri§~: rights.
`
`US2000 1074115212
`
`

`
`t.
`
`\\\\\\\\\V<<\\\\
`w...w.~..~...~...““w...w...w.e
`The Parties anti an Uudiseiased Reat Parts‘ in interest
`
`STATEMENT OF FACTS
`
`This caueeiiaticrt proceeding is simply eue earripaign in the global assautt en
`
`Respouctiertfs Vaiuabie veciica tradeuiarks, spearheaded by the Russian Fedttratiert.
`
`A.
`
`Resptmtteut Sgririts interuatiezmai, N.V'. {new krmwu as Sgrtrits
`Euterrnatieuai, BX.)
`
`At the time this p1‘{)Ct3€3€iil“1g was instituted, Spirits interrmtiorzal, NQV. t:“Sfi*I VNV”), had
`
`owrieti, since effectively Iariuary 1, 2061, the 'RU‘SSKAYA mark and the .t‘egistratit.m at issue
`
`Reg,
`
`1,487,042).
`
`Fiukeisteiu
`
`1,,
`
`_8~C.
`
`iIr12t)(t7, ditririg the perideuey
`
`of this proceeding, SP1 NV eonverteti from a pubiicz timited Eiabiiity company into a private
`
`limited eemrtany, ‘E%pi1‘its I11teruatior1a1, BSV, (“SH BV”}.1
`
`Respcmdeut owns hundretis Of vodka trademarks worldwide for its famous vecika
`
`rartds, STOLECHNAYA, MOSK.()V'S}}~IAY‘.A, RUSSKAYA and many uthers. 01ij,"l“iii<.
`
`8:1 E 42:12.,
`
`3, Addenda 1 and 2; "t‘sypia}<0v 8:16-2.;?;. Resporadent iieenses these marks to
`
`its related etmtpanies, such as SP1 Spirits (Cyprus) Limited (“SP1 Cyprus”), which distribute
`
`Russian vodka products under R.esp<>n::ierit’s tradeniarks around the world. Giiyni}: S:3~8:2;
`
`Gusev 4:156:17, SP3: Grottp SA (“SP1 Grciup”) is the majority sha.rehe1der of bath
`
`Respeudeut arid S13} Cyprus. Gusev 4:3-5:7. Ali afthe related companies that term the SFI
`
`Group, iriszitidirtg Resporadetit, and their predeeessers
`
`hereiriat‘ter eeiiectivety referred tn
`
`“SP1.”
`
`SP1 ‘s primary business is the production anti sate of various spirits, including its
`
`extensive vodka poitfeiie. 131; at 73-23. SPFS fameu.s vetika bramts, and its irtteruatiertai
`
`E The (f0I“:V€}”Si(?3‘.‘. documents were recurdesii with the USLE-"I'{I> at Reel 3599, Frame 0672 on August 13, 2007.
`Retitieaer has not mnencied its Petition to Cancel or taker: ether action to refiect that SP3 EV is the current owner -3?
`
`the registration at issue.
`
`'I'.B,MP, § 512.
`
`4
`
`USZOO0 \O7/13152.32
`
`

`
`pertfeiio of ’i1‘§:1d%I1’1§;iI‘i€' i'egistrati0iis pmteciiiiig them, are discusseii. more fuily in Fcini II of
`
`this S‘i’§:1i€31T181‘i‘i; of ’i*’a<:-is ‘nelow.
`
`B.
`
`Petitimier AN‘. B§'€il‘i{§S,
`
`inc.
`
`A,V. B1‘aI1dS, as purported assignee oi’A.‘v’. imparts, filed a i\’iO‘£iO11 to Substitute A.V.
`
`Brands as the named P€.‘?ii‘EIi€.‘9I1‘c)i‘
`
`in this proceeding on Februaiy 15, EGGS, an the gr0'um'i that
`
`A.\'’. Brancis is new aiicgediy the owner by assigiimem, of Trademark App. Serial Nos.
`
`76/573,600 and “F8/’658,G5(§ for the rriarks RUSSKAYA and RE_J’SSKJ3‘iYA RUSSEAN
`
`VODKA & Desigii, respectixieiy, for use in canimction with Vodka. Timse applications were
`
`flied by ACV. iI}”.E}‘)OITS an an intenH‘0~use basis Linder Section 1(5) of the Laniiam Act. Resp.
`
`First Net. 0.’i‘Rei.
`
`2.~3.
`
`REEA€TE§
`
`C.
`
`Feéerai Treasury Eiiiierprise Ssjiizgsinfisimpurt
`
`In 2.901, the Russian Fecieration established Federai Treasury Emgerprise
`
`Sejuzpiadoinipcri, also kimwn in Russian as FKQEP‘ Sojuzpiorjoimport (collectively ref-errad to
`
`Z Resp. First Not. of Rel.
`US.
`
`USZOOO 1074! {€32.12
`
`i9-Zi dspict the conip1eri1em:at'y trade dress used on S’i‘OL1Ci-i]\7A‘i’A vodka in the
`
`5
`
`

`
`as “F1‘}5”). Tsyj{_>Eak0v 18:7—}§}:3 and
`
`1, fig’ 15.
`
`iE'*~‘TE.. is a Russian sE.a‘te~0wn6d company
`
`created to ma}‘:1ag,e the: Russian ‘mdka tradézmark registrations that were seized E011: SF} in
`
`Russia, am} to itry to reccwer {)Eh€1‘
`
`trademarks Qwned by ESP} outside Russia for the jptlrported
`
`benesfit oftha Russian Federaticme
`
`at 18:’/H.923 and Ex. 1,
`
`15.
`
`REEAQYEQ
`
`On. March 23,
`
`25305, ‘STE applied for 9. US. re.gi;~;tration of the RUSK./\"{A >:rad£:mark in its own name‘.
`
`under US, Trademark App. Sear. N0, 78.I’593363£?.
`
`j}:_‘i__._ at EX. 4.
`
`RE§A€TE§
`
`USZOOD 1074‘: .":‘2,§‘£
`
`

`
`REEACTES
`
`FTE and SP1 are net strangers to each other. As tiiscussed mart: fuily in Point {V of
`
`this Statement of Facts, in additien :0 msmaging the Russian vodka trademark 1‘egistrati0ns
`
`that were seized from SP1, iE¥"1‘Elhas chetilengeid SPYS rights to its vodka tradtzitnarks in
`
`litigation in such gaiaces as the U Australia, Austria.;, Brazil, the Netherlands, France,
`
`Azert>aijan, .A.rmania, Chiie, R0ma.n.ia,, Ht§§1g,2tI“y§ Butgaria, tht: Skwak Repubiic, Serbia,
`
`Czech Repubiitz, Venezueia, Jordan, "_E‘hai1and, Urugua;~/, Potand and tfihfit‘ coxtntries.
`
`'E‘syp1akoV 8:23»46;'7, Ex. 1, ENE 3.1533 amt
`
`LM; Oiiynik 16:1'7—17:6.
`
`H.
`
`\\\V<(KK\\\\\\\\\\\\\\\\\\\\\\\\\\\\
`§f1’s Enternatitmai Travdemagrk i’<>rtfaEit3 and Fa:n9us“§7t;dRa Bmn<i§
`
`SP1 owns a porttblio ctmrsisiing of hundreds of trastiemark registrations, in Various
`
`c<>urttri<:s amunti the Wctrlti. far its popular vedka precincts (caitiectivety, the “Vodka,
`
`Mafia”). Tsypiaktw 8216412; Oiiynik 8:11-11:12, Qiiynik EX. 1, Ad<ie1'ada 1 and
`
`'I".‘ne
`
`famous brands STOLICHNAYA, RUSSKAYA anti E\'tOSKO'\*'S}~";AY.A are among these
`
`registe3re€1‘v’odka Marks.
`
`'.i"sypEa}<0V 8:1«3—22. These three brands have been cczmsistently
`
`ranked ameng the top distiiied spirits bt';,mcis in tha world. Resp. Firs.tNo1. of Re}.
`
`40.3
`
`For extampie:
`
`as
`
`in 2000, 2002 and 2003, Impact‘ magazine ranked STOLICHNA‘:’A,
`
`MOSKOVSKAYA, and RUSSKAYA among the top ten distilled spirits
`
`3 Discovery ciosad in this proceeding an Aprit 35, 2005, so the docuntemary z'ee;:m'<i is not tzurrent with respect to
`media coverage and the Eike.
`
`U.‘i200C 1074‘. 152 l2
`
`

`
`brands worldwide hasad on tom}. voiunio ofsales. Resp. First Not. ofRoi.
`
`40 at S'PiGG0028~29; SPiG{}{)035~{)i)037; SP1G0G€}52~€30t)53.
`
`&‘ Buriiig the some time period, DH‘:-2ic.s jfiiEfi‘flafiOi'I££Z inagazine rarilozd
`
`}{USSK.A‘i'A as the fourth largest regionai hi':»a.n.tJi of tiistiiied spirits and ranked
`
`S'i‘0L1Ci*iNAYA, M€i}S1<';€Z)‘V SKAYA, and RUSSKAYA in this top ten ofthe
`
`woi'id’s iargest seiiing spirits hrands.
`
`j;g_1,,atiE§Ex. 40 at SPiG{}{3054~0€)G63;
`
`SFiiiG(3€){}43~{>i}(i5 1?.
`
`xx‘
`
`in 1998, .fnzpz.zci Ii'zz'9i~rzaiir;>rza£ ma.ga:.inc3 i'a.n1~:s3d S'I‘<j}LiiC}-{N’A‘1’A,
`
`M€)SIE{{?WSKA‘1’A, and R3(ISSKA‘t’A as the number 1, 2, am Vodka brands
`
`woridwide,
`
`1_@_._ at Ezaz. 40 at Si?}G0(‘3032a0GG33.
`
`~\‘ The record contains I‘au1’11E.”I‘Q1,tS aiticies that testify to the woridwide fame am}
`
`notoriety of Re$pone:it:nt’s R1}SSKAYA hi'am;i.
`
`at
`
`43.
`
`HI.
`
`'_'_ifh€7_HiS€0’§*3<‘ of SPPS US.
`
`Fetitionci does not challenge: Respond.-sntis chain oftitio to the RUSSKAYA
`
`registnztion at issue. It relies instead on an abatritionnient theory, N€3V§.?1”£i‘if:i€3SS,
`
`hociatise the
`
`history ofthe rogistratior: heips to provide: necessary contoxt and to oxpiain the 1“eic-savamce of
`
`rssiated litigation over '.R.espomient’s ti'a.cEem.ari<: portfolio, it
`
`siimmarizod below’:
`
`Under the government of the former Soviet Union, the vodka industry was st.a.te~i‘1m
`
`and 213i trademarks were O"W11§3d hy state entities. Tsyp1a1<ov 15:54 8 and
`
`1, ‘ii 2.
`
`RUTSSKAYA, STOLICHNAYA and other Russian vodka niarks mare l‘§3g‘iSf€I"€d
`
`in the
`
`U,S.S°R. and ini'ernation.a.1iy in tho tiahie of V"v'tL'> Sojuzpiodoinipciit ("W/’VO’°), at sta.to~ov~/nod
`
`company engagod in the export. of Vodka and other agricuitumi prodiiazts.
`
`jf_g_i__._ at 15:5~}.6:i6
`
`and EX.
`
`}. _,
`
`3.
`
`{E82990 107-‘HIST. ‘K.’
`
`

`
`VVQ filed an applieaticn to register {lie RUSSKAYA 11‘18.l“l{ with the ‘U35, Patel}: ami
`
`Trasilemarls; Office {“USPTO”) in l986, anal elmairraeri a. US. registration for
`
`RUSSKAYA
`
`marl; in 29880 Resp. Neiice efReiiaIi<:e Ex, lg Finkelsielri 4¢l:l9~45:15 and
`
`16, 13. 7.
`
`Uncler an Gctober 3, 198:5: appointment leiiei“, VVO appeimed Pepeiwifelal Inieinaticziial,
`
`Limited, a whcilljwowned subsidiary efPepsiCe, Inc. (°‘PepsiCo°’), to be the exclusive brand
`
`agent and aulhoimc-:.d imperier ef Rl;lSS}<;A"1'A \"O(_ll.~{i:l.
`
`l7l1’1ké:lS"Lf:iI1 44-:19~4S:lS and
`
`l6,
`
`p. 7. Pepsiffiio had pmvimisly parinered with VVO ‘Le establish the STOLICHNAYA brand in
`
`the US. and was ll1E€3l‘f3Sl¥3A;l
`
`in launching a second wxlka brand in the US. in Carder te grow
`
`the Russian vodka lausiness. fig
`
`In n1id~l99G, anal as part Gfthe ecmiomie referm program lQ’10W}.'1
`
`peresrroziisa, Elie
`
`Seviei govemmem autherized ihe i1*arisl‘o1*matieIi of state~ev~xne<‘l enterprises into pm"
`
`cempanies. Tsypialmxr ll}:5—ll:22, lS:S~l8 ziml
`
`1, ‘ll 4. In Septernller l§E=S}(l, VVVO was
`
`privatized imo the jein1‘~siC>cl< eeiripaiiy \"A€Z) SOj11Z}'}lOilQlF‘(ipOl“€
`
`("‘V‘.A€j}”).
`
`_l__«;j_,_ at 10:53: 1:22,
`
`E62348 am}
`
`1, *1] 5. V.Ai§} succeeded VVVO in the ewnership caf V‘V'0’s entire portfolio of
`
`Vodka Marks, iiicludizig the S’.lf'Oil_.TlCil?li‘€‘AYA ami R.'llSE€K.A.YiA marks. gig; at l{)::3~l l :22
`
`and
`
`1, ‘ll 6.4 (Elle lhissian Federatiam contends that this iransfer was not Valid, and has
`
`cvlialleriged SPl’s chain eftitle to ‘die Vecllm Marks in actimis and proceedings, firs: in Russia
`
`and mm’ amend the werlci. See Point IV, l?{3lOW.}
`
`The Seviet Unisin was disseived in December l99l
`
`at lO:5—l 1:223 and Ex. 1, ii 7.
`
`in Sepiembe1* 1992, VAO assigned the “v’0dl~;:>i lVia.rl<s3 inciiiciirig the R'USSl§;AYA mark, 10 its
`
`4 C‘uri<+=.1si},g in August Z1991, the U.S.S.R. Patent Office (fiospatent) annulled the Seviet STOLICHNAYA and
`¥{.U§*3SKAY;’§. registz'atl<ms on the gmund that those names had lrzeccme generic in the Soviet Union. Tsyplaksw
`lG::">~l l :22, l2:"/523 and
`l, ‘J 16 and Ex. A. Four momhs lzzier, ihe Seviet Union was dissolved. \/A0, as the
`successor to VVO, challenged Gospzatenfs decision, and, in l‘~/lay 1994, the Russian Patent Ofiiee ifiieapaatent)
`annulled Gcispatenfs decision and reinstated ‘»’AO’s rigliits in the vcsdka tz'2u.ie3riairl<;s,
`’l‘s‘ypl;1.l<mr 10:54 1:22, 15:5-l3
`and Ex. 1, ";l"f§ 16917 and Ex. 8.
`
`‘.).‘§20-‘JO '.G'.’—'H }S2 12
`
`S?
`
`

`
`US. distributor, Pepsifle,
`
`at 111:5-«11;22, 16:1?E?~23 and EX. 1, *3] 8; £Fin1¢e1stei11 1Z8:IZ1—
`
`31:10 and
`
`3. Pttratttmt t0 the assigratnent agreements, X/Ati} retained a reversiema.ajy
`
`interest in the V<3d1<a Ma1*1<s. Tsyp1a1;0v 1{}:5»11:22, 1§:5~18 and 1531K. 1,
`
`8; 171131-;e1stei11
`
`2i€:21~3-1:19 and
`
`3.
`
`Fauna September 1993 throttgh Janw-,t:.'y 1:999, }’epsiC0 V3gm.'eus1jy‘ defended at petitien
`
`t0 ezmcei the R1_.TSS1{A‘{.»’51 regigtratitm in the
`
`filed hy '1"hef3?*1'2a.n1<:1’esceh1temati0na1
`
`G1"‘011p, Limited.
`
`.Fin1<e1stei:r1 5”.7:E3~"G and
`
`431..
`
`111 January 199:9, the matter was
`
`ttitimateiy settied in 1*epsiCo"s favor and the petition ta eanee1 was dismieseai with prejudice.
`
`at 56:14~57:2 and
`
`31. As Petitiener ctmeedes, “[tjhe 3?t1_.TSS‘1(AY’A mar1< was used by
`
`Pepsitie during the pendency ofthe eaneetilatieh proceedings. . ..” Fet. B1‘. «'1; Einkelstein
`
`15:1€)~17,
`
`1.&:1.1-19:17 2:111:11,
`
`While those C.':111Cf311tt?.'i01’1‘§;‘)1‘0£.36€:€1111.gS were penefrhtg, in 11996, VA?)
`
`its name
`
`to VI«?i..»’-‘.10 SC3jt1Z}’31{)dGimp£1fE ("VZA(}”'_) te refieet its change eflegal farm to a e1esedjeint~
`
`stect: tztampany. Tsyplaicw 10:5~11:2’..Z, 1535418 and Ex. 1,
`
`9. Two years Eater, in January
`
`1998, VZAO geld its interest 11'; the Veeaka 1‘v1a:r1<s, inchtding its reversienary interests in the
`
`RUSSKAYA m:.>er1«; in the 1.1.3., to ZAO Sc»juzp1et10in1fper't (“ZAO”}, at Russ12'mj0i11t~st0ek
`
`company inc-otpetated in Osztmaer 199?.
`
`ILL at 10:5—11:22, 1
`
`7
`J4
`.::":~18 and Ex. 1, ‘E 10.
`
`111 Apri.1
`
`19991, ZAO said :11} 0f its rights in the V0(.13{{~i Eviarks to SP1, and SPI1 eentihued te suppiy
`
`Pepsitile with the vtxilza $016.1 u:1d.erthese1na1'1{.s in the U ;'[g1__._ at 18:54 1:22,
`
`i.S:5~17:1€S and
`
`1, W 11-12; Q1iynik .t~§:4~$3:4 a.ndi1E-lx.. 1.
`
`On Ivtay 10, 2601, Pepsifio executed at tteeti of assignment assigning all 01' its rights in
`
`the RU-SS1<l.A.‘x'A mark in the US. to SP1. Ts},Ip,1akm' 16:24—17:3; O1i;m.i}: 1.137522;
`
`Finkeistein 15:1€1~1"_i, 2G:3~23 and
`
`1,1.
`
`S and Ex. 13. The assignment was reeerded with
`1. (1
`
`US7.00'."r 117-741 1:72 12
`
`

`
`the US_l"i‘C> in March 2002.. Fiukelsteih iS:l€)~l‘7,, 2G:Z?;4~2l :21 ami Ex. 1, *5]
`
`{>7 and
`
`C. As
`
`a result of these transactions, SP1 now owns all rights te the RUSSl<AYA roark in the US.
`
`1‘:/'.
`
`
`}f¥"er'klwi{ie Liti<g;at§on Surrg‘uhdiue' the Vetika Marks
`
`The dispute surrouutiing the Vodka Marks since the eellapse ofthe U.S.S.R. “has
`
`been eventful, to say the least, with the fight ever rights to the [S'l‘C}L1‘Cfl-{N;'%[YA] mark
`
`exteruiirtg well beyond the borders ef the Russian Federation.” Pavel Arievieh & Julian
`
`G:»'ne<‘>11.» §.ha:ke:;._e.n§.1..§%tih:e.§t;,,‘The Acivmittlres 0ties§e:~:i§t;3<ie§ke..hrehrt Wm'1d 'I‘ra<iemark
`
`Review, at 5»8 (l.\/iayfluxie 2003).
`
`The Rtzssiah government, often acting through l'<"l‘E.5, bega.r1w-aging a worldwide
`
`attack on SETS Ownership of its Valuable tradermrié. portfolie shortly after Si’l’s aequisitier:
`
`efthe Vodka Mariks in 1999.5 According to Mikhail 'l'syoEal<ov, who oversees the legal
`
`activities of SP1, the Russian govemruehtfs relentless campaign to “re-=natienaii2e’°‘ (without
`
`eempensatiorr) the Vodka Marks, irtehtding RUSSK;l‘.{Y'A and STQLICHNAYA, has
`
`spawned litigation or administrative preeeedings in approxihticztely twenty eetmtries.
`
`Tsypl-skew’ 1615-1 1:22,. 1-'l{):i4~=-45:11 and Ex... 1,
`
`13. This has created “extreme urzeertaimy
`
`and lack of stability in respect of the issue of validity of ownership of SPE group i1'}.I'€Sp€C‘i of
`
`those valuabie assets.” :5; at 16:54 1:22; i2:24~l3:9 and
`
`1, if 13.
`
`Eivert those ehaliehges that do not directly invelve the RUS Si<A‘1’A mark place SPI"s
`
`rights in the RUSS.Kz»\&"A mark at risk because they rest on the theory that SP1’ is not the
`
`legal successor to the initial owner of the marks, VVO, and that VVO was not properly
`
`5 The Board may take judicial notice ofthe ‘fact that the Russian Federation is just one of the territories that was part
`ofthe former U.S.S.i§..
`’.l‘.B.Pvl.P
`704(a) and Fed. R. Evid. 201. After the U.S.S.R. clissolvecl, other territories also
`made plays for SPl’s famous vodka marks. E_i,1j_arg5:_;i§;§A_13/;a§ter§:_;§gg;:__y:m}§g:sice. Inc, 806 F. Supp. 480, 432483, n. 4
`( l99;?)) (Republic efhlerth Ossetia claimed rights to STOLICHNAYA mark amid “volatile” situai:ien
`former UlS.S.R‘..).
`
`USZOOO I074] 152.12
`
`1 1
`
`

`
`privatized,
`
`§_t‘_i_: at 23:8—24:4, 24:1S~2:1 1; 35:4~24; 45:15-45:15. As Mr. Tsypi