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`ESTTA Tracking number:
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`ESTTA738199
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`Filing date:
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`04/06/2016
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
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`Proceeding
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`92060308
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`Party
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`Correspondence
`Address
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`Submission
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`Filer's Name
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`Filer's e-mail
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`Signature
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`Date
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`Defendant
`Corcamore, LLC
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`CHARLES L THOMASON
`55 W 12TH AVE
`COLUMBUS, OH 43210
`UNITED STATES
`thomason@spatlaw.com
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`Other Motions/Papers
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`Charles L. Thomason
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`thomason@spatlaw.com
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`/Charles L. Thomason/
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`04/06/2016
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`Attachments
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`Sprout_Corca_NMo_Vacate_04_06_2016.pdf(210736 bytes )
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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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`Cancellation No: 92 060308
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`Registration No. 3708453
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`SFM, LLC,
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`Petitioner,
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`v.
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`Corcamore, LLC
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`Respondent-Registrant.
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`MOTION OF RESPONDENT-REGISTRANT
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`FOR LEAVE TO FILE
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`A MOTION TO VACATE.
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`TO: Nicole M. Murray, Esq.
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`Quarles & Brady LLP
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`300 N. LaSalle St., Suite 4000
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`Chicago, IL 60654
`Email: Nicole.Murray[at]quarles[dot]com
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`PLEASE TAKE NOTICE that the Respondent Corcamore LLC moves for leave to file
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`a motion to vacate the ruling, by the Board attorney at Dkt. #14, which denied Respondent’s
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`Rule 12(b) motion to dismiss that challenged petitioner’s allegations of standing, and also, to
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`vacate the ruling of the Board, at Dkt. #28, which denied Respondent’s motion for
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`reconsideration of the Rule 12(b) motion to dismiss that challenged petitioner’s allegations of
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`standing, on the basis of Lexmark Int'l, Inc. v. Static Control Components, Inc., ––– U.S. ––––,
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`109 USPQ2d 2062 (2014) and Belmora LLC v. Bayer Consumer Care AG, --- F.Supp.3d --- 115
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`USPQ2d 1032, 1038 (E.D. Va. 2015). Now that the Fourth Circuit Court of Appeals has ruled
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`that the Lexmark two-prong standard for standing applies to Section 14 petitions for cancellation,
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`the prior contrary rulings in this Section 14 matter at Dkt. #14 and Dkt. #28 should be vacated.
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`Belmora LLC v. Bayer Consumer Care AG, --- F.3d --- (4th Cir. Mar. 23, 2016).
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`Entry of a thirty-day briefing schedule is requested.
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`Based up the record before it, and the now-prevailing authorities, the Board erred in
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`reaching the order or decisions it issued at Dkt. #14 and Dkt. #28. These orders were “at least in
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`part if not entirely, based on law that has since” been corrected by a U.S. Court of Appeals.
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`Sulzer Textil A.G. v. Picanol N.V., 358 F.3d 1356, 1368 (Fed. Cir. 2004).
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`Leave to file the motion is requested per the ruling requiring “prior Board permission.”
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`Respondent would present its motion to vacate on the basis of the now-controlling law.
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`6 APR 2016
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`Respectfully submitted,
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` ~ S ~ /Charles L. Thomason/
`Charles L. Thomason
`55 W. 12th Ave.
`Columbus, OH 43210
`Email: Thomason[at]spatlaw[dot]com
`Telep. (502) 349-7227
`Attorney for Respondent-Registrant
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`CERTIFICATE OF SERVICE
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`I hereby certify that on this 6th day of April, 2016, I electronically filed the foregoing
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`Notice of Motion, and mailed a copy to the attorneys for the Petitioner, directed to the address of
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`the attorney indicated below:
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`Nicole M. Murray, Esq.
`Quarles & Brady LLP
`300 N. LaSalle St., Suite 4000
`Chicago, IL 60654
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` ~ S ~ /Charles L. Thomason/
`Charles L. Thomason
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`Date: 6 APR 2016
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 1 of 35
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`PUBLISHED
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`UNITED STATES COURT OF APPEALS
`FOR THE FOURTH CIRCUIT
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`No. 15-1335
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`BELMORA LLC,
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`Plaintiff - Appellee,
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`v.
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`BAYER CONSUMER CARE AG, a Swiss corporation; BAYER
`HEALTHCARE LLC, a Delaware Limited Liability Company,
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`Defendants - Consolidated Plaintiffs - Appellants,
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`v.
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`BELMORA LLC, a Virginia Limited Liability Company; JAMIE
`BELCASTRO, an individual; DOES, 1-10, inclusive,
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`Consolidated Defendants - Appellees,
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`and
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`MICHELLE K. LEE, Undersecretary for Intellectual Property
`and Director of the United States Patent and Trademark
`Office (Director),
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`Intervenor.
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`---------------------
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`AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION,
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`
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`Amicus Curiae.
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`
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`Appeal from the United States District Court for the Eastern
`District of Virginia, at Alexandria. Gerald Bruce Lee, District
`Judge. (1:14-cv-00847-GBL-JFA)
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`
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 2 of 35
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`Argued: October 27, 2015
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`Decided: March 23, 2016
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`Before AGEE, FLOYD, and THACKER, Circuit Judges.
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`Vacated and remanded by published opinion. Judge Agee wrote the
`opinion, in which Judge Floyd and Judge Thacker joined.
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`ARGUED: Bradley Louis Cohn, PATTISHALL, MCAULIFFE, NEWBURY,
`HILLIARD & GERALDSON LLP, Chicago, Illinois, for Appellants.
`Martin Schwimmer, LEASON ELLIS LLP, White Plains, New York, for
`Appellee. Lewis Yelin, UNITED STATES DEPARTMENT OF JUSTICE,
`Washington, D.C., for Intervenor. ON BRIEF: Phillip Barengolts,
`Andrew R.W. Hughes, PATTISHALL, MCAULIFFE, NEWBURY, HILLIARD &
`GERALDSON LLP, Chicago, Illinois; Robert J. Shaughnessy, Eric C.
`Wiener, WILLIAMS & CONNOLLY LLP, Washington, D.C., for
`Appellants. Craig C. Reilly, Alexandria, Virginia; John L.
`Welch, WOLF, GREENFIELD & SACKS, P.C., Boston, Massachusetts;
`Lauren B. Sabol, LEASON ELLIS LLP, White Plains, New York;
`Rebecca Tushnet, GEORGETOWN UNIVERSITY LAW CENTER, Washington,
`D.C., for Appellees. Mark R. Freeman, Civil Division, UNITED
`STATES DEPARTMENT OF JUSTICE, Washington, D.C.; Dana J. Boente,
`United States Attorney, Benjamin C. Mizer, Principal Deputy
`Assistant Attorney General, OFFICE OF THE UNITED STATES
`ATTORNEY, Washington, D.C.; Nathan K. Kelley, Solicitor,
`Christina J. Hieber, Associate Solicitor, Mary Beth Walker,
`Associate Solicitor, Benjamin T. Hickman, Associate Solicitor,
`UNITED STATES PATENT AND TRADEMARK OFFICE, Alexandria, Virginia,
`for Intervenor. Sharon A. Israel, President, AMERICAN
`INTELLECTUAL
`PROPERTY LAW ASSOCIATION, INC., Arlington,
`Virginia; Jennifer L. Kovalcik, STITES & HARBISON, PLLC,
`Nashville, Tennessee, for Amicus Curiae.
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`
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`2
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 3 of 35
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`AGEE, Circuit Judge:
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`In this unfair competition case, we consider whether the
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`Lanham Act permits the owner of a foreign trademark and its
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`sister company to pursue false association, false advertising,
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`and trademark cancellation claims against the owner of the same
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`mark in the United States. Bayer Consumer Care AG (“BCC”) owns
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`the trademark “FLANAX” in Mexico and has sold naproxen sodium
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`pain relievers under that mark in Mexico (and other parts of
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`Latin America) since the 1970s. Belmora LLC owns the FLANAX
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`trademark in the United States and has used it here since 2004
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`in the sale of its naproxen sodium pain relievers. BCC and its
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`U.S. sister company Bayer HealthCare LLC (“BHC,” and
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`collectively with BCC, “Bayer”) contend that Belmora used the
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`FLANAX mark to deliberately deceive Mexican-American consumers
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`into thinking they were purchasing BCC’s product.
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`BCC successfully petitioned the U.S. Trademark Trial and
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`Appeal Board (“TTAB”) to cancel Belmora’s registration for the
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`FLANAX mark based on deceptive use. Belmora appealed the TTAB’s
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`decision to the district court. In the meantime, BCC filed a
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`separate complaint for false association against Belmora under
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`§ 43 of the Lanham Act, 15 U.S.C. § 1125, and in conjunction
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`with BHC, a claim for false advertising. After the two cases
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`were consolidated, the district court reversed the TTAB’s
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`3
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 4 of 35
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`cancellation order and dismissed the false association and false
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`advertising claims.
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`Bayer appeals those decisions. For the reasons outlined
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`below, we vacate the judgment of the district court and remand
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`this case for further proceedings consistent with this opinion.
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`I. Background
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`This appeal comes to us following the district court’s
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`grant of Belmora’s Federal Rule of Civil Procedure 12(b)(6)
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`motion to dismiss Bayer’s complaint and Belmora’s Rule 12(c)
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`motion for judgment on the pleadings on the trademark
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`cancellation claim. In both circumstances, we “assume all well-
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`pled facts to be true and draw all reasonable inferences in
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`favor of” Bayer as the plaintiff. Cooksey v. Futrell, 721 F.3d
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`226, 234 (4th Cir. 2013).1
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`A. The FLANAX Mark
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`BCC registered the trademark FLANAX in Mexico for
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`pharmaceutical products, analgesics, and anti-inflammatories.
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`It has sold naproxen sodium tablets under the FLANAX brand in
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`Mexico since 1976. FLANAX sales by BCC have totaled hundreds of
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`millions of dollars, with a portion of the sales occurring in
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`1 We have omitted internal quotation marks, alterations, and
`citations here and throughout this opinion, unless otherwise
`noted.
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`4
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 5 of 35
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`Mexican cities near the United States border. BCC’s FLANAX
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`brand is well-known in Mexico and other Latin American
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`countries, as well as to Mexican-Americans and other Hispanics
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`in the United States, but BCC has never marketed or sold its
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`FLANAX in the United States. Instead, BCC’s sister company,
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`BHC, sells naproxen sodium pain relievers under the brand ALEVE
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`in the United States market.
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`Belmora LLC began selling naproxen sodium tablets in the
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`United States as FLANAX in 2004. The following year, Belmora
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`registered the FLANAX mark in the United States. Belmora’s
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`early FLANAX packaging (below, left) closely mimicked BCC’s
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`Mexican FLANAX packaging (right), displaying a similar color
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`scheme, font size, and typeface.
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`5
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 6 of 35
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`J.A. 145. Belmora later modified its packaging (below), but the
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`color scheme, font size, and typeface remain similar to that of
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`BCC’s FLANAX packaging.
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`Id.
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`In addition to using similar packaging, Belmora made
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`statements implying that its FLANAX brand was the same FLANAX
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`product sold by BCC in Mexico. For example, Belmora circulated
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`a brochure to prospective distributors that stated,
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`For generations, Flanax has been a brand that Latinos
`have turned to for various common ailments. Now you
`too can profit from this highly recognized topselling
`brand among Latinos. Flanax is now made in the U.S.
`and continues to show record sales growth everywhere
`it is sold. Flanax acts as a powerful attraction for
`Latinos by providing them with products they know,
`trust and prefer.
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`J.A. 196. Belmora also employed telemarketers and provided them
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`with a script containing similar statements. This sales script
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`stated that Belmora was “the direct producers of FLANAX in the
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`US” and that “FLANAX is a very well known medical product in the
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`Latino American market, for FLANAX is sold successfully in
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`6
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 7 of 35
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`Mexico.” Id. Belmora’s “sell sheet,” used to solicit orders
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`from retailers, likewise claimed that “Flanax products have been
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`used [for] many, many years in Mexico” and are “now being
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`produced in the United States by Belmora LLC.” Id.
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`Bayer points to evidence that these and similar materials
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`resulted in Belmora’s distributors, vendors, and marketers
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`believing that its FLANAX was the same as or affiliated with
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`BCC’s FLANAX. For instance, Belmora received questions
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`regarding whether it was legal for FLANAX to have been imported
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`from Mexico. And an investigation of stores selling Belmora’s
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`FLANAX “identified at least 30 [purchasers] who believed that
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`the Flanax products . . . were the same as, or affiliated with,
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`the Flanax products they knew from Mexico.” J.A. 416.
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`B. Proceedings Below
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`1.
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`In 2007, BCC petitioned the TTAB to cancel Belmora’s
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`registration for the FLANAX mark, arguing that Belmora’s use and
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`registration of the FLANAX mark violated Article 6bis of the
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`Paris Convention “as made applicable by Sections 44(b) and (h)
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`of the Lanham Act.” J.A. 89. BCC also sought cancellation of
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`Belmora’s registration under § 14(3) of the Lanham Act because
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`Belmora had used the FLANAX mark “to misrepresent the source of
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`7
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 8 of 35
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`the goods . . . [on] which the mark is used.” Id.; see also
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`Lanham Act § 14(3), 15 U.S.C. § 1064(3).
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`The TTAB dismissed BCC’s Article 6bis claim, concluding
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`that Article 6bis “is not self-executing” and that § 44 of the
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`Lanham Act did not provide “an independent basis for
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`cancellation.” J.A. 95. However, the TTAB allowed Bayer’s
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`§ 14(3) claim to proceed. In 2014, after discovery and a
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`hearing, the TTAB ordered cancellation of Belmora’s FLANAX
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`registration, concluding that Belmora had misrepresented the
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`source of the FLANAX goods and that the facts “d[id] not present
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`a close case.” J.A. 142. The TTAB noted that Belmora 1) knew
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`the favorable reputation of Bayer’s FLANAX product, 2) “copied”
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`Bayer’s packaging, and 3) “repeatedly invoked” that reputation
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`when marketing its product in the United States. J.A. 143-45.
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`2.
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`Shortly after the TTAB’s ruling, Bayer filed suit in the
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`Southern District of California, alleging that 1) BCC was
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`injured by Belmora’s false association with its FLANAX product
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`in violation of Lanham Act § 43(a)(1)(A), and 2) BCC and BHC
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`were both injured by Belmora’s false advertising of FLANAX under
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`§ 43(a)(1)(B). The complaint also alleged three claims under
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`California state law.
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`8
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 9 of 35
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`Belmora meanwhile appealed the TTAB’s cancellation order
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`and elected to proceed with the appeal as a civil action in the
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`Eastern District of Virginia.2 It argued that the TTAB erred in
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`concluding that Bayer “had standing and/or a cause of action”
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`under § 14(3) and in finding that Belmora had misrepresented the
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`source of its goods. J.A. 218. Belmora also sought a
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`declaration that its actions had not violated the false
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`association and false advertising provisions of Lanham Act
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`§ 43(a), as Bayer had alleged in the California district court
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`proceeding. Bayer filed a counterclaim challenging the TTAB’s
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`dismissal of its Paris Convention treaty claims.
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`The California case was transferred to the Eastern District
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`of Virginia and consolidated with Belmora’s pending action.
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`Belmora then moved the district court to dismiss Bayer’s § 43(a)
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`claims under Rule 12(b)(6) and for judgment on the pleadings
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`under Rule 12(c) on the § 14(3) claim. On February 6, 2015,
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`after two hearings, the district court issued a memorandum
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`opinion and order ruling in favor of Belmora across the board.
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`The district court acknowledged that “Belmora’s FLANAX
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`. . . has a similar trade dress to Bayer’s FLANAX and is
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`2 A party to a cancellation proceeding who is dissatisfied
`with the TTAB’s decision may either “appeal to” the U.S. Court
`of Appeals for the Federal Circuit, 15 U.S.C. § 1071(a), or
`elect to “have remedy by a civil action” in the district court,
`id. § 1071(b). Belmora chose the latter option.
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`9
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 10 of 35
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`marketed in such a way that capitalizes on the goodwill of
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`Bayer’s FLANAX.” J.A. 475. It nonetheless “distilled” the case
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`“into one single question”:
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`Does the Lanham Act allow the owner of a foreign mark
`that is not registered in the United States and
`further has never used the mark in United States
`commerce to assert priority rights over a mark that is
`registered in the United States by another party and
`used in United States commerce?
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`J.A. 476. The district court concluded that “[t]he answer is
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`no” based on its reading of the Supreme Court’s decision in
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`Lexmark International, Inc. v. Static Control Components, Inc.,
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`134 S. Ct. 1377 (2014). J.A. 476. Accordingly, the district
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`court dismissed Bayer’s false association and false advertising
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`claims for lack of standing. At the same time, it reversed the
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`TTAB’s § 14(3) cancellation order.
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`Bayer filed a timely notice of appeal, and we have
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`jurisdiction under 28 U.S.C. § 1291. The U.S. Patent and
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`Trademark Office (“USPTO”) intervened to defend the TTAB’s
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`decision to cancel Belmora’s registration and to argue that the
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`Lanham Act conforms to the United States’ commitments in Article
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`6bis of the Paris Convention.3
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`3 The district court had agreed with the TTAB that Article
`6bis does not create an independent cause of action for the
`cancellation of Belmora’s FLANAX registration. Because Bayer
`appears to have abandoned its treaty claims on appeal and their
`resolution is not necessary to our decision, we do not address
`any issue regarding the Paris Convention arguments.
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`10
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 11 of 35
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`II. Discussion
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`We review de novo the district court’s decision to dismiss
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`a proceeding under Rules 12(b)(6) and 12(c), accepting as true
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`all well-pleaded allegations in the plaintiff’s complaint and
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`drawing all reasonable factual inferences in the plaintiff’s
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`favor. Priority Auto Grp., Inc. v. Ford Motor Co., 757 F.3d
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`137, 139 (4th Cir. 2014); see also Bell Atl. Corp. v. Twombly,
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`550 U.S. 544, 555–56 (2007). In ruling on a motion to dismiss,
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`“a court evaluates the complaint in its entirety, as well as
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`documents attached or incorporated into the complaint.” E.I. du
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`Pont de Nemours & Co. v. Kolon Indus., Inc., 637 F.3d 435, 448
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`(4th Cir. 2011).
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`A. False Association and False Advertising Under Section 43(a)
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`The district court dismissed Bayer’s false association4 and
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`false advertising claims because, in its view, the claims failed
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`to satisfy the standards set forth by the Supreme Court in
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`Lexmark. At the core of the district court’s decision was its
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`conclusion that 1) Bayer’s claims fell outside the Lanham Act’s
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`“zone of interests” –- and are not cognizable -- “because Bayer
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`4 As the district court pointed out, we have sometimes
`denominated Lanham Act § 43(a)(1)(A) claims as “false
`designation” claims. We think it preferable to follow the
`Supreme Court’s terminology in Lexmark and instead refer to such
`claims as those of “false association,” although the terms can
`often be used interchangeably.
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`11
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 12 of 35
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`does not possess a protectable interest in the FLANAX mark in
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`the United States,” J.A. 485, and 2) that a “cognizable economic
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`loss under the Lanham Act” cannot exist as to a “mark that was
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`not used in United States commerce.” J.A. 488-89.
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`On appeal, Bayer contends these conclusions are erroneous
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`as a matter of law because they conflict with the plain language
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`of § 43(a) and misread Lexmark.
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`1.
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`“While much of the Lanham Act addresses the registration,
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`use, and infringement of trademarks and related marks, § 43(a)
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`. . . goes beyond trademark protection.” Dastar Corp. v.
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`Twentieth Century Fox Film Corp., 539 U.S. 23, 28-29 (2003).
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`Written in terms of the putative defendant’s conduct, § 43(a)
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`sets forth unfair competition causes of action for false
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`association and false advertising:
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`Any person who, on or in connection with any goods or
`services, or any container for goods, uses in commerce
`any word, term, name, symbol, or device, or any
`combination thereof, or any false designation of
`origin, false or misleading description of fact, or
`false or misleading representation of fact, which --
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`(A) [False Association:] is likely to cause
`confusion, or to cause mistake, or to deceive as
`to the affiliation, connection, or association of
`such person with another person, or as to the
`origin, sponsorship, or approval of his or her
`goods, services, or commercial activities by
`another person, or
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`12
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`commercial
`in
`Advertising:]
`[False
`(B)
`advertising or promotion, misrepresents the
`nature, characteristics, qualities, or geographic
`origin of his or her or another person’s goods,
`services, or commercial activities,
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`shall be liable in a civil action by any person who
`believes that he or she is or is likely to be damaged
`by such act.
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`Lanham Act § 43(a)(1), 15 U.S.C. § 1125(a)(1). Subsection A,
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`which creates liability for statements as to “affiliation,
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`connection, or association” of goods, describes the cause of
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`action known as “false association.” Subsection B, which
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`creates
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`liability
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`for
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`“misrepresent[ing]
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`the
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`nature,
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`characteristics, qualities, or geographic origin” of goods,
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`defines the cause of action for “false advertising.”
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`Significantly, the plain language of § 43(a) does not
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`require that a plaintiff possess or have used a trademark in
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`U.S. commerce as an element of the cause of action. Section
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`43(a) stands in sharp contrast to Lanham Act § 32, which is
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`titled as and expressly addresses “infringement.” 15 U.S.C.
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`§ 1114 (requiring for liability the “use in commerce” of “any
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`reproduction, counterfeit, copy, or colorable imitation of a
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`registered mark” (emphasis added)). Under § 43(a), it is the
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`defendant’s use in commerce -- whether of an offending “word,
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`term, name, symbol, or device” or of a “false or misleading
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`description [or representation] of fact” -- that creates the
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`injury under the terms of the statute. And here the alleged
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`offending “word, term, name, symbol, or device” is Belmora’s
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`FLANAX mark.
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`What § 43(a) does require is that Bayer was “likely to be
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`damaged” by Belmora’s “use[] in commerce” of its FLANAX mark and
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`related advertisements. The Supreme Court recently considered
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`the breadth of this “likely to be damaged” language in Lexmark,
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`a false advertising case arising from a dispute in the used-
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`printer-cartridge market. 134 S. Ct. at 1383, 1388. The lower
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`courts in Lexmark had analyzed the case in terms of “prudential
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`standing” -– that is, on grounds that are “prudential” rather
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`than constitutional. Id. at 1386. The Supreme Court, however,
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`observed that the real question in Lexmark was “whether Static
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`Control has a cause of action under the statute.” Id. at 1387.
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`This query, in turn, hinged on “a straightforward question of
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`statutory interpretation” to which it applied “traditional
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`principles” of interpretation. Id. at 1388. As a threshold
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`matter, the Supreme Court noted that courts must be careful not
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`to import requirements into this analysis that Congress has not
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`included in the statute:
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`We do not ask whether in our judgment Congress should
`have authorized Static Control’s suit, but whether
`Congress in fact did so. Just as a court cannot apply
`its independent policy judgment to recognize a cause
`of action that Congress has denied, it cannot limit a
`cause of action that Congress has created merely
`because ‘prudence’ dictates.
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`Id. The Court concluded that § 43(a)’s broad authorization --
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`permitting suit by “any person who believes that he or she is or
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`is likely to be damaged” -- should not be taken “literally” to
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`reach the limits of Article III standing, but is framed by two
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`“background principles,” which may overlap. Id.
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`First, a plaintiff’s claim must fall within the “zone of
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`interests” protected by the statute. Id. The scope of the zone
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`of interests is not “especially demanding,” and the plaintiff
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`receives the “benefit of any doubt.” Id. at 1389. Because the
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`Lanham Act contains an “unusual, and extraordinarily helpful”
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`purpose statement in § 45, identifying the statute’s zone of
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`interests “requires no guesswork.” Id. Section 45 provides:
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`The intent of this chapter is to regulate commerce
`within the control of Congress by making actionable
`the deceptive and misleading use of marks in such
`commerce; to protect registered marks used in such
`commerce from interference by State, or territorial
`legislation; to protect persons engaged in such
`commerce against unfair competition; to prevent fraud
`and deception in such commerce by the use of
`reproductions, copies, counterfeits, or colorable
`imitations of registered marks; and to provide rights
`and remedies stipulated by treaties and conventions
`respecting trademarks, trade names, and unfair
`competition entered into between the United States and
`foreign nations.
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`Lanham Act § 45, 15 U.S.C. § 1127.5
`
`
`5 In the same section, the Lanham Act defines “commerce” as
`“all commerce which may lawfully be regulated by Congress.”
`Lanham Act § 45, 15 U.S.C. § 1227. We have previously construed
`this phrase to mean that the term is “coterminous with that
`(Continued)
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`
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`The Supreme Court observed that “[m]ost of the enumerated
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`purposes are relevant to a false-association case,” while “a
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`typical false-advertising case will implicate only the Act’s
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`goal of ‘protecting persons engaged in commerce within the
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`control of Congress against unfair competition.’” Lexmark, 134
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`S. Ct. at 1389. The Court concluded “that to come within the
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`zone of interests in a suit for false advertising under
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`[§ 43(a)], a plaintiff must allege an injury to a commercial
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`interest in reputation or sales.” Id. at 1390.
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`The second Lexmark background principle is that “a
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`statutory cause of action is limited to plaintiffs whose
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`injuries are proximately caused by violations of the statute.”
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`Id. The injury must have a “sufficiently close connection to
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`the conduct the statute prohibits.” Id. In the § 43(a)
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`context, this means “show[ing] economic or reputational injury
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`flowing directly from the deception wrought by the defendant’s
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`advertising; and that that occurs when deception of consumers
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`causes them to withhold trade from the plaintiff.” Id. at 1391.
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`
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`commerce that Congress may regulate under the Commerce Clause of
`the United States Constitution.” Int’l Bancorp, LLC v. Societe
`des Bains de Mer et du Cercle des Etrangers a Monaco, 329 F.3d
`359, 363-64 (4th Cir. 2003). “Commerce” in Lanham Act context
`is therefore an expansive concept that “necessarily includes all
`the explicitly identified variants of interstate commerce,
`foreign trade, and Indian commerce.” Id. at 364 (citing U.S.
`Const. art. I, § 8, cl.3); see also infra n.6).
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`The primary lesson from Lexmark is clear: courts must
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`interpret the Lanham Act according to what the statute says. To
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`determine whether a plaintiff, “falls within the class of
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`plaintiffs whom Congress has authorized to sue,” we “apply
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`traditional principles of statutory interpretation.” Id. at
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`1387. The outcome will rise and fall on the “meaning of the
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`congressionally enacted provision creating a cause of action.”
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`Id. at 1388.
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`We now turn to apply these principles to the case before
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`us.
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`2.
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`a.
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`We first address the position, pressed by Belmora and
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`adopted by the district court, that a plaintiff must have
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`initially used its own mark in commerce within the United States
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`as a condition precedent to a § 43(a) claim. In dismissing
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`BCC’s § 43(a) claims, the district court found dispositive that
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`“Bayer failed to plead facts showing that it used the FLANAX
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`mark in commerce in [the] United States.” J.A. 487. Upon that
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`ground, the district court held “that Bayer does not possess a
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`protectable interest in the [FLANAX] mark.” Id.
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`As noted earlier, such a requirement is absent from
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`§ 43(a)’s plain language and its application in Lexmark. Under
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`
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`17
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`the statute, the defendant must have “use[d] in commerce” the
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`offending “word, term, name, [or] symbol,” but the plaintiff
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`need only “believe[] that he or she is or is likely to be
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`damaged by such act.” Lanham Act § 43(a), 15 U.S.C. § 1125(a).
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`It is important to emphasize that this is an unfair
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`competition case, not a trademark infringement case. Belmora
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`and the district court conflated the Lanham Act’s infringement
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`provision in § 32 (which authorizes suit only “by the
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`registrant,” and thereby requires the plaintiff to have used its
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`own mark in commerce) with unfair competition claims pled in
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`this case under § 43(a). Section 32 makes clear that Congress
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`knew how to write a precondition of trademark possession and use
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`into a Lanham Act cause of action when it chose to do so. It
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`has not done so in § 43(a). See Russello v. United States, 464
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`U.S. 16, 23 (1983) (“[W]here Congress includes particular
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`language in one section of a statute but omits it in another
`
`section of the same Act, it is generally presumed that Congress
`
`acts intentionally and purposely in the disparate inclusion or
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`exclusion.”).
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`Given that Lexmark advises courts to adhere to the
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`statutory language, “apply[ing] traditional principles of
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`statutory interpretation,” Lexmark, 134 S. Ct. at 1388, we lack
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`authority to introduce a requirement into § 43(a) that Congress
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`plainly omitted. Nothing in Lexmark can be read to suggest that
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`§ 43(a) claims have an unstated requirement that the plaintiff
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`have first used its own mark (word, term, name, symbol, or
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`device) in U.S. commerce before a cause of action will lie
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`against a defendant who is breaching the statute.
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`The district court thus erred in requiring Bayer, as the
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`plaintiff, to have pled its prior use of its own mark in U.S.
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`commerce when it is the defendant’s use of a mark or
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`misrepresentation that underlies the § 43(a) unfair competition
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`cause of action. Having made this foundational error, the
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`district court’s resolution of the issues requires reversal.6
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`Admittedly, some of our prior cases appear to have treated
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`a plaintiff’s use of a mark in United States commerce as a
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`
`6 Even though the district court’s error in transposing
`§ 43(a)’s requirements for a defendant’s actions upon the
`plaintiff skews the entire analysis, the district court also
`confused the issues by ill-defining the economic location of the
`requisite unfair competition acts. As noted earlier, supra n.5,
`a defendant’s false association or false advertising conduct
`under § 43(a) must occur in “commerce within the control of
`Congress.” Such commerce is not limited to purchases and sales
`within the territorial limits of the United States as the
`district court seems to imply at times with regard to § 43(a)
`and § 14(3) claims. See J.A. 483, 506 (as to § 14(3), stating
`that “Bayer did not use the FLANAX mark in the United States”);
`J.A. 487 (as to § 43(a), stating that “Bayer failed to plead
`facts showing that it used the FLANAX mark in commerce in [the]
`United States”). Instead, as we explained in International
`Bancorp, Lanham Act “commerce” includes, among other things,
`“foreign trade” and is not limited to transactions solely within
`the borders of the United States. Int’l Bancorp, 329 F.3d at
`364. Of course, any such “foreign trade” must satisfy the
`Lexmark “zone of interests” and “proximate cause” requirements
`to be cognizable for Lanham Act purposes.
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`
`
`19
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`Appeal: 15-1335 Doc: 57 Filed: 03/23/2016 Pg: 20 of 35
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`prerequisite for a false association claim. See Lamparello v.
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`Falwell, 420 F.3d 309, 313 (4th Cir. 2005) (“Both infringement
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`[under § 32] and false designation of origin [under § 43(a)]
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`have [the same] five elements.”); People for the Ethical
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`Treatment of Animals v. Doughney, 263 F.3d 359, 364 (4th Cir.
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`2001) (same); Int’