`ESTTA1096413
`
`ESTTA Tracking number:
`
`Filing date:
`
`11/19/2020
`
`Proceeding
`
`Party
`
`Correspondence
`Address
`
`Submission
`
`Filer's Name
`
`Filer's email
`
`Signature
`
`Date
`
`Attachments
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`92066859
`
`Plaintiff
`Vans, Inc.
`
`CHRISTOPHER B LAY
`IPHORGAN LTD
`195 ARLINGTON HEIGHTS ROAD, SUITE 125
`BUFFALO GROVE, IL 60089
`UNITED STATES
`Primary Email: mail@iphorgan.com
`Secondary Email(s): clay@iphorgan.net, iplaw@iphorgan.com,
`jbathke@iphorgan.com
`847-808-5500
`
`Other Motions/Submissions
`
`Christopher B. Lay
`
`clay@iphorgan.com, mail@iphorgan.com
`
`/Christopher B. Lay/
`
`11/19/2020
`
`Petitioner Vans Paper Relating to Registrant Motion to Suspend - as f
`iled.pdf(193191 bytes )
`Motion to Stay - as filed in CD California.pdf(377477 bytes )
`Declaration of Nicholas J. Hoffman - as filed in CD California.pdf(176937 bytes )
`Declaration of Christopher B. Lay - as filed in CD California.pdf(473166 bytes )
`
`
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`
`
`
`Vans, Inc.
`Petitioner,
`
`
`
`
`
`
`
`
`
`v.
`
`
`
`
`Branded LLC
`
`
`
`Registrant.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`)
`)
`) Cancellation No. 92066859 (parent)
`) Cancellation No. 92066871
`) Cancellation No. 92066876
`)
`)
`
`PETITIONER VANS, INC.’S PAPER RELATING TO
`REGISTRANT BRANDED LLC’S MOTION TO SUSPEND
`
`Petitioner Vans, Inc., files this paper to inform the Board that on November 16, 2020,
`
`
`
`Vans filed in the United States District Court for the Central District of California, Case Number
`
`8:20-cv-02085-JVS-KES, a Motion to Stay Pending Proceedings in the Trademark Trial and
`
`Appeal Board. Attached herein are the Motion and declarations in support of the Motion. That
`
`civil action is the subject of Branded LLC’s Motion to Suspend Pending Resolution of Civil
`
`Action, 50 TTABVUE.
`
`
`
`
`
`Date: November 19, 2020
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
`/Christopher B. Lay/__________
`Christopher B. Lay
`John T. D. Bathke
`IPHORGAN LTD
`195 Arlington Heights Rd.
`Suite 125
`Buffalo Grove, IL 60089
`Telephone: (847) 808-5500
`Fax: (847) 808-7238
`clay@iphorgan.net; jbathke@iphorgan.com
`
`Attorneys for Petitioner,
`Vans, Inc.
`
`
`
`
`
`
`The undersigned hereby certifies that a true and correct copy of PETITIONER VANS,
`
`INC.’S PAPER RELATING TO REGISTRANT BRANDED LLC’S MOTION TO SUSPEND
`and attached Documents were served this 19th Day of November, 2020, by email on the
`following Attorney of Record for Registrant:
`
`Jeffrey M. Furr
`Furr Law Firm
`2622 Debolt Road
`Utica, OH 43080
`Tel.: (740) 817-2381
`Fax: (740) 892-2118
`jeffmfurr@furrlawfirm.com
`
`
`
`
`
`
`
`
`
`
`
`
`CERTIFICATE OF SERVICE
`
`
`
`
` By: /Christopher B. Lay/__________
`Christopher B. Lay
`IPHORGAN LTD
`195 Arlington Heights Rd.
`Suite 125
`Buffalo Grove, IL 60089
`Telephone: (847) 808-5500
`Fax: (847) 808-7238
`clay@iphorgan.net
`
`Attorney for Petitioner,
`Vans, Inc.
`
`
`
`2
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 1 of 21 Page ID #:57
`
`
`
`MCGUIREWOODS LLP
`Tanya L. Greene (State Bar No. 267975)
`tgreene@mcguirewoods.com
`Nicholas J. Hoffman (State Bar No. 284472)
`nhoffman@mcguirewoods.com
`Wells Fargo Center – South Tower
`355 South Grand Ave., Suite 4200
`Los Angeles, CA 90071-3103
`Telephone: (213) 627-2268
`Facsimile: (213) 627-2579
`
`MCGUIREWOODS LLP
`Lucy Jewett Wheatley (Pro Hac Vice Application forthcoming)
`lwheatley@mcguirewoods.com
`Gateway Plaza
`800 East Canal Street
`Richmond, VA 23219-3916
`Telephone: (804) 775-4320
`Facsimile: (804) 698-2017
`
`Attorneys for Defendant Vans, Inc.
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`CENTRAL DISTRICT OF CALIFORNIA
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`
`
`27
`
`28
`
`
`
`
`
`BRANDED LLC,
`
`
`Plaintiff,
`
`Defendant.
`
`vs.
`
`
`
`
`
`
`VANS, INC.,
`
`
` Case No. 8:20-cv-02085
`
`(Hon. James V. Selna)
`
`
`DEFENDANT VANS, INC.’S
`NOTICE OF MOTION AND
`MOTION TO STAY CASE PENDING
`PROCEEDINGS IN THE
`TRADEMARK TRIAL AND
`APPEAL BOARD; MEMORANDUM
`OF POINTS AND AUTHORITIES
`
`Date: December 14, 2020
`Time: 1:30 p.m.
`Court: 10C
`
`Complaint Filed:
`
`
` [Declaration of Nicholas J. Hoffman
`and exhibits thereto, Declaration of
`Christopher B. Lay, and [Proposed]
`Order filed concurrently herewith]
`
`10/28/2020
`
`
`
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 2 of 21 Page ID #:58
`
`
`
`
`
`1
`
`TO THE COURT, THE PARTIES, AND THEIR COUNSEL:
`
`2
`
`PLEASE TAKE NOTICE that, on December 14, 2020, at 1:30 p.m., or as soon
`
`3
`
`thereafter as the parties may be heard, before the Honorable James V. Selna, United
`
`4
`
`States District Judge, for the Central District of California, in Courtroom 10c of the
`
`5
`
`United States Courthouse, 411 West 4th Street, Santa Ana, California 92701,
`
`6
`
`Defendant Vans, Inc. (“Defendant” or “Vans”), by and through its undersigned
`
`7
`
`counsel, will and hereby moves this Court to stay this action until after the Trademark
`
`8
`
`Trial and Appeal Board (“TTAB”) renders a final decision in the action styled Vans,
`
`9
`
`Inc. v. Branded LLC, Cancellation No. 92066859 (petition for cancellation filed
`
`10
`
`September 12, 2017). The TTAB proceeding involves the same two parties and the
`
`11
`
`same trademark registrations asserted by Plaintiff Branded LLC (“Branded” or
`
`12
`
`“Plaintiff”) in this action. In addition, the TTAB proceeding has been underway for
`
`13
`
`over three years and the trial period is ongoing, the TTAB recently ordered a partial
`
`14
`
`grant of summary judgment cancelling pertinent portions of the OLD SCHOOL
`
`15
`
`registrations Branded now asserts in this action, and a final determination by the
`
`16
`
`TTAB on Vans’ abandonment claims would likely have preclusive effect on all of
`
`17
`
`Branded’s claims in this action.
`
`18
`
`This Motion is based upon this Notice of Motion, the accompanying
`
`19
`
`Memorandum of Points and Authorities, the Declaration of Nicholas J. Hoffman (and
`
`20
`
`exhibits thereto), the Declaration of Christopher B. Lay, and the [Proposed] Order
`
`21
`
`filed concurrently herewith, as well as all pleadings and papers on file in this action,
`
`22
`
`and any oral argument or documentary matters as may be presented to the Court at or
`
`23
`
`before the hearing on this Motion.
`
`24
`
`This motion is made following the conference of counsel pursuant to Local
`
`25
`
`Rule 7-3, which took place on November 9, 2020. Branded’s counsel declined to
`
`26
`
`consent to Vans’ motion to stay this action.
`
`27
`
`However, Branded’s counsel consented to Vans’ additional request for an order
`
`28
`
`extending Vans’ time to respond to the complaint in this action until 14 days after
`
`
`
`-2-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 3 of 21 Page ID #:59
`
`
`
`
`
`1
`
`either (a) the resumption of this action if the motion to stay is granted or (b) the
`
`2
`
`Court’s order denying Vans’ motion to stay this action.
`
`
`
`DATED: November 16, 2020
`
`MCGUIREWOODS LLP
`
`3
`
`4
`
`5
`
`6
`
`
`
`7
`
`8
`
`
`
`
`
`
`
`
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`By:
`
`/s/ Tanya L. Greene
`Tanya L. Greene
`Nicholas J. Hoffman
`Attorneys for Defendant Vans, Inc.
`
`-3-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 4 of 21 Page ID #:60
`
`
`
`I.
`
`II.
`
`TABLE OF CONTENTS
`
`INTRODUCTION ............................................................................................ 1
`
`FACTUAL AND PROCEDURAL BACKGROUND ..................................... 2
`
`A.
`
`B.
`
`C.
`
`Branded’s Action in this Court .............................................................. 2
`
`The TTAB Proceeding ........................................................................... 3
`
`Conference of Counsel Pursuant to Local Rule 7-3 .............................. 5
`
`III. LEGAL STANDARD ...................................................................................... 6
`
`IV. ARGUMENT ................................................................................................... 7
`
`A. A Stay Would Promote the Orderly Course of Justice .......................... 7
`
`B.
`
`C.
`
`D.
`
`No Party Would Be Damaged By a Stay ............................................... 9
`
`Vans Would Suffer Harm and Inequity if a Stay is Not Granted ........ 12
`
`In any Event, Vans Requests an Extension to Respond ...................... 13
`
`V.
`
`CONCLUSION .............................................................................................. 13
`
`
`
`
`
`
`-4-
`DEFENDANT’S MOTION TO STAY CASE
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 5 of 21 Page ID #:61
`
`
`
`Federal Cases
`
`TABLE OF AUTHORITIES
`
` Page(s)
`
`Applied Materials Inc. v. Semiconductor Spares, Inc.,
`1995 WL 261451 (N.D. Cal. April 26, 1995) .................................................... 13
`
`B & B Hardware, Inc. v. Hargis Indus., Inc.,
`575 U.S. 138, 135 S. Ct. 1293 (2015) .............................................................. 5, 8
`
`Citicasters Co. v. Country Club Commc'ns,
`44 U.S.P.Q.2d 1223, 1997 WL 715034 (C.D. Cal. July 21, 1997) .................. 6, 9
`
`CMAX, Inc. v. Hall,
`300 F.2d 265 (9th Cir. 1962) .................................................................. 6, 7, 9, 12
`
`Fujitsu Ltd. v. Nanya Technology Corp.,
`2007 WL 484789 (N.D. Cal. Feb. 9, 2007) ........................................................ 13
`
`General Cigar Co., Inc. v. G.D.M. Inc.,
`988 F. Supp. 647 (S.D.N.Y. 1997) ....................................................................... 8
`
`Karl Storz Endoscopy Am., Inc. v. Surgical Techs., Inc.,
`285 F.3d 848 (9th Cir. 2002) .............................................................................. 11
`
`Landis v. N. Am. Co.,
`299 U.S. 248 (1936) ............................................................................................. 6
`
`Leyva v. Certified Grocers of California, Ltd.,
`593 F.2d 857 (9th Cir. 1979) ................................................................................ 6
`
`Lodestar Anstalt v. Bacardi & Co., No. 16-06411 GHK,
`2016 WL 7635955 (C.D. Cal. Nov. 16, 2016) ................................. 6, 7, 9, 11, 12
`
`Lydo Enters., Inc. v. City of Las Vegas,
`745 F.2d 1211 (9th Cir. 1984) ............................................................................ 11
`
`Nat. Answers, Inc. v. SmithKline Beecham Corp.,
`529 F.3d 1325 (11th Cir. 2008) ............................................................................ 8
`
`Purecircle USA Inc. v. SweeGen, Inc.,
`No. 18-1679, 2019 WL 3220021 (C.D. Cal. June 3, 2019) (J. Selna) ................. 6
`
`
`
`-5-
`DEFENDANT’S MOTION TO STAY CASE
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 6 of 21 Page ID #:62
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`Rivers v. Walt Disney Co.,
`980 F. Supp. 1358 (C.D. Cal. 1997) ..................................................................... 6
`
`Shipley v. U.S.,
`608 F.2d 770 (9th Cir. 1979) ................................................................................ 6
`
`Specht v. Google Inc.,
`747 F.3d 929 (7th Cir. 2014), cert. denied, 135 S. Ct. 724, 190 L.
`Ed. 2d 442 (2014) ................................................................................................. 8
`
`Tigercat Int’l, Inc. v. Caterpillar Inc.,
`127 U.S.P.Q. 2d 1132 (D. Del. May 2, 2018) .............................................. 12, 13
`
`V.V.V. & Sons Edible Oils Ltd. v. Meenakshi Overseas LLC,
`No. 14-02961 ........................................................................................................ 6
`
`Federal Statutes
`
`15 U.S.C. § 1104(1) ................................................................................................... 9
`
`U.S. Lanham Act ............................................................................................... 2, 8, 9
`
`Rules
`
`Local Rule 7-3 ........................................................................................................... 5
`
`Local Rule 8-3 ........................................................................................................... 3
`
`
`
`
`
`
`-6-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 7 of 21 Page ID #:63
`
`
`
`1
`
`MEMORANDUM OF POINTS AND AUTHORITIES
`
`2
`
`I.
`
`INTRODUCTION
`
`3
`
`Defendant Vans, Inc. (“Defendant” or “Vans”), by and through its undersigned
`
`4
`
`counsel, hereby moves this Court to stay this action until after the U.S. Patent and
`
`5
`
`Trademark Office's Trademark Trial and Appeal Board (“TTAB”) renders a final
`
`6
`
`determination on the trial currently underway in the proceeding styled Vans, Inc. v.
`
`7
`
`Branded LLC, Cancellation No. 92066859, which was filed September 12, 2017. (the
`
`8
`
`9
`
`“TTAB Proceeding”).1
`
`Both the TTAB Proceeding and this action involve the same trademark
`
`10
`
`registrations and same dispositive issues. In both actions, Plaintiff Branded LLC
`
`11
`
`(“Branded” or “Plaintiff”) alleges it owns registrations in the mark OLD SCHOOL.
`
`12
`
`Meanwhile, Vans alleges in the TTAB Proceeding (and would allege in this action)
`
`13
`
`that Branded abandoned its asserted marks and therefore Branded’s registrations for
`
`14
`
`the mark OLD SCHOOL should be cancelled.
`
`15
`
`While this action is just beginning, the TTAB Proceeding has been ongoing and
`
`16
`
`actively litigated for over three years. The parties engaged in significant discovery,
`
`17
`
`including depositions taken by both sides. Recently, the TTAB granted partial
`
`18
`
`summary judgment cancelling pertinent portions of the same OLD SCHOOL
`
`19
`
`registrations Branded asserts in this action. Now the TTAB Proceeding is in the
`
`20
`
`middle of the trial period, and the trial concerns the few remaining portions of
`
`21
`
`Branded’s registrations. Following trial, the TTAB will likely cancel Branded’s OLD
`
`22
`
`SCHOOL registrations in whole as a result of abandonment, which would preclude
`
`23
`
`Branded’s trademark infringement claims here.
`
`24
`
`As the TTAB has specialized knowledge in this type of matter, it makes little
`
`25
`
`sense for this Court to expend judicial resources on this action, because the issues may
`
`26
`
`27
`
`28
`
`
`
`
`1 The TTAB Proceeding includes Cancellation No. 92066859, which is the parent
`case, as well as Cancellation Nos. 92066871 and 92066876.
`
`
`
`-1-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 8 of 21 Page ID #:64
`
`
`
`
`
`1
`
`be resolved in the context of the trial already underway in the TTAB Proceeding. The
`
`2
`
`TTAB’s final determination following the trial (along with its recent grant of partial
`
`3
`
`summary judgment) would at the very least be instructive, if not dispositive, on the
`
`4
`
`legal issues before this Court. Therefore, the stay of this action would eliminate
`
`5
`
`duplication of efforts and preserve the resources of the Court and the parties.
`
`6
`
`Vans also requests an order extending Vans’ time to respond to the complaint
`
`7
`
`in this action until 14 days after either (a) the resumption of this action if the motion
`
`8
`
`to stay is granted or (b) the Court’s order denying Vans’ motion to stay this action.
`
`9
`
`Branded has stipulated to the requested extension.
`
`10
`
`II.
`
`FACTUAL AND PROCEDURAL BACKGROUND
`
`11
`
`12
`
`A. Branded’s Action in this Court
`
`On October 28, 2020, Branded filed its complaint for trademark infringement,
`
`13
`
`false designation of origin, and unfair competition in violation of the U.S. Lanham
`
`14
`
`Act and California state law (“Complaint”). In the Complaint, Plaintiff alleges it is
`
`15
`
`the owner of the following marks:
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`• U.S. Trademark Registration No. 1387606 for OLD SCHOOL in
`international class 25 for “Men’s and Ladies’ shirts.” [Complaint ¶7.]
`
`• U.S. Trademark Registration No. 1915132 for OLD SCHOOL in
`international class 25 for “men’s and ladies’ clothing, namely jackets,
`raincoats, trousers, suits, sport coats, socks, sweaters, jeans, blazers,
`scarves, neckties, pajamas, swimwear, shorts, shoes, belts, and skirts.”
`[Complaint ¶8.]
`
`Branded further alleges that Vans’ use of the mark OLD SKOOL in connection
`
`with “clothing, shoes and other goods” is likely to result in consumer confusion and
`
`therefore constitutes trademark infringement, false designation of origin, and unfair
`
`competition. [Complaint ¶¶20, 29, 30.]
`
`Branded served Vans with the Summons and Complaint in this action on
`
`November 4, 2020. Because there have been no previous extensions of the deadline
`
`for Vans to respond to the Complaint, the parties stipulated to a 14-day extension of
`
`-2-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 9 of 21 Page ID #:65
`
`
`
`
`
`1
`
`time to answer pursuant to Local Rule 8-3 following either the resumption of this case
`
`2
`
`following the stay or the Court’s denial of Vans’ motion. Accordingly, this action is
`
`3
`
`at the beginning stages and no discovery has been taken.
`
`4
`
`5
`
`B.
`
`The TTAB Proceeding
`
`Branded’s claims in this action are premised on Branded’s ownership of viable
`
`6
`
`registrations for the OLD SCHOOL mark and/or a finding that Branded has not lost
`
`7
`
`its common law rights through abandonment. These very issues have been litigated
`
`8
`
`in the TTAB Proceeding for the past three years. On September 12, 2017, Vans
`
`9
`
`commenced the TTAB Proceeding by filing three cancellation actions:
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`• Cancellation No. 92066859, which seeks cancellation of OLD
`SCHOOL, Registration No. 1915132;
`
`• Cancellation No. 92066876, seeking cancellation of OLD SCHOOL,
`Registration No. 1387606; and
`
`• Cancellation No. 92066871, seeking cancellation of OLD SCHOOL
`CLOTHING CO., Registration No. 1570438.
`
`These three cancellation actions were consolidated under the parent case,
`
`Cancellation No. 92066859. Vans requested cancellation of Branded’s registrations
`
`based on a number of claims, including: Abandonment through non-use and intention
`
`not to resume use; Partial abandonment in the alternative as to some, but not all,
`
`identified goods; Fraud; Abandonment/Non-ownership owing to invalid assignment
`
`in gross; Abandonment/Non-ownership owing to invalid second assignment; and
`
`Abandonment through uncontrolled licensing. [Hoffman Decl., Ex. E.]
`
`The parties engaged in discovery including interrogatories and document
`
`requests served by both parties and multiple depositions taken by each side. [Lay
`
`Decl., ¶¶8-12.] Discovery closed two years ago. [Id. at ¶ 13.] During discovery,
`
`Branded failed to produce a single document showing actual use of its asserted
`
`trademarks at any time between 2008 or 2009 (when it acquired the purported rights)
`
`and the present. [Id. at ¶ 9.] In fact, Branded did not produce any documents at all.
`
`-3-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 10 of 21 Page ID #:66
`
`
`
`
`
`1
`
`[Id.] The deposition testimony demonstrated that, to the extent Branded did use the
`
`2
`
`asserted marks to sell a few categories of goods (if it did at all), Branded did so
`
`3
`
`through a naked license to an individual named Scott Kuhlman which would result in
`
`4
`
`an abandonment through naked licensing. [Deposition of Scott Kuhlman (Hoffman
`
`5
`
`Decl., Ex. H) at 105:21-106:23, 108:18-20, 116:14-19, 117:17-19, 123:17-25, 127:6-
`
`6
`
`13, 131:11-21.]
`
`7
`
`Also of note, Branded’s owner Keith Johnston admitted under oath he was
`
`8
`
`aware of Vans’ use of the mark OLD SKOOL since 2008, and believed that through
`
`9
`
`use of this mark Vans was infringing Branded’s OLD SCHOOL marks. Still, Branded
`
`10
`
`never sent Vans a cease and desist letter nor filed any claims against Vans for over a
`
`11
`
`decade. [Deposition of Keith E. Johnston (Hoffman Decl., Ex G) at 88:18-90:5.]
`
`12
`
`Despite knowing about Vans’ use of OLD SKOOL since 2008, the first time Branded
`
`13
`
`alleged likelihood of confusion against Vans was when Branded filed its Complaint
`
`14
`
`in this action, on October 28, 2020.
`
`15
`
`Vans filed two motions for summary judgment in the TTAB Proceeding. As a
`
`16
`
`result of the first motion, which Vans filed on September 4, 2018, the TTAB ruled
`
`17
`
`that OLD SCHOOL CLOTHING CO. was abandoned as a matter of law and granted
`
`18
`
`Vans’ summary judgment motion as to Cancellation No. 92066871. [Hoffman Decl.,
`
`19
`
`Ex. D.] With respect to the second motion, which Vans filed on July 31, 2019, the
`
`20
`
`TTAB granted summary judgment on Vans’ claim of partial nonuse abandonment “as
`
`21
`
`to ladies’ shirts (Reg. No. 1387606) and swimwear, shoes, skirts, and pajamas (Reg.
`
`22
`
`No. 1915132).” [Id. at Ex. F.]
`
`23
`
`After the TTAB’s second summary judgment order, the TTAB Proceeding
`
`24
`
`continued to trial with respect to the remaining goods in Registration Nos. 1387606
`
`25
`
`and 1915132. In the TTAB trial, the parties are litigating Vans’ multiple theories of
`
`26
`
`abandonment and whether Branded LLC has abandoned any remaining purported
`
`27
`
`rights in the OLD SCHOOL marks. Currently, the TTAB Proceeding is in the middle
`
`28
`
`of the trial period—Vans’s trial period ended on October 10, 2020, Branded’s trial
`
`
`
`-4-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 11 of 21 Page ID #:67
`
`
`
`
`
`1
`
`period is currently scheduled to end on December 9, 2020, and Vans’ rebuttal period
`
`2
`
`is scheduled to end January 23, 2021. After the trial period, the parties will submit
`
`3
`
`4
`
`their trial briefs and await a determination from the TTAB.2
`
`On November 4, 2020, just a few days after filing the Complaint in this action,
`
`5
`
`Branded moved to suspend the TTAB Proceeding pending disposition of this action.
`
`6
`
`Vans has opposed Branded’s motion to suspend the TTAB Proceeding. [Hoffman
`
`7
`
`Decl., Ex. J.] On November 9, 2020, rather than granting Branded’s motion to
`
`8
`
`suspend the TTAB Proceeding, the TTAB filed an order indicating it is actively
`
`9
`
`working to decide a motion relating to trial evidence. [Id. at Ex. K.]3
`
`10
`
`11
`
`C. Conference of Counsel Pursuant to Local Rule 7-3
`
`This motion is made following the conference of counsel pursuant to Local
`
`12
`
`Rule 7-3, which took place on November 9, 2020. [Hoffman Decl., ¶14.] During the
`
`13
`
`conference, Branded’s counsel declined to consent to Vans’ motion to stay this action.
`
`14
`
`However, Branded’s counsel consented to Vans’ additional request for an order
`
`15
`
`extending Vans’ time to respond to the complaint in this action until 14 days after
`
`16
`
`either (a) the resumption of this action if the motion to stay is granted or (b) the
`
`17
`
`Court’s order denying Vans’ motion to stay this action.
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`2 The Supreme Court has recognized that proceedings before the TTAB are “in many
`ways similar to a civil action in a federal district court.” B & B Hardware, Inc. v.
`Hargis Indus., Inc., 575 U.S. 138, 143, 135 S. Ct. 1293, 1300 (2015). The main
`difference is that the trial is conducted through a written record. Id.
`
`3 Even if the TTAB were to suspend the TTAB Proceeding during the pendency of
`this motion, the TTAB’s decision should have no bearing on the merits of this motion
`since the TTAB would restart the proceeding. See TBMP § 510.02(a) (“Suspension
`of a Board proceeding pending the final determination of another proceeding is solely
`within the discretion of the Board . . . However, if, as sometimes happens, the court
`before which a civil action is pending elects to suspend the civil action to await
`determination of the Board proceeding and the Board is so advised, the Board will go
`forward with its proceeding.”).
`
`-5-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 12 of 21 Page ID #:68
`
`
`
`
`
`III. LEGAL STANDARD
`
`Federal courts have the inherent authority to manage their dockets and to stay
`
`1
`
`2
`
`3
`
`proceedings before them. Landis v. N. Am. Co., 299 U.S. 248, 254-55 (1936); CMAX,
`
`4
`
`Inc. v. Hall, 300 F.2d 265, 268 (9th Cir. 1962) (citing Landis, 299 U.S. at 254-55);
`
`5
`
`Rivers v. Walt Disney Co., 980 F. Supp. 1358, 1360 (C.D. Cal. 1997). A stay pending
`
`6
`
`the outcome of an administrative proceeding that might render the relief sought in
`
`7
`
`district court unnecessary is a proper exercise of the Court’s discretion in controlling
`
`8
`
`the disposition of cases on its docket and avoiding unnecessary duplication of judicial
`
`9
`
`machinery. Shipley v. U.S., 608 F.2d 770, 775 (9th Cir. 1979).
`
`10
`
`Courts in this Circuit have exercised their discretion to stay trademark
`
`11
`
`infringement and unfair competition actions pending the disposition of the same or
`
`12
`
`similar issues in a TTAB proceeding. See, e.g., Lodestar Anstalt v. Bacardi & Co.,
`
`13
`
`No. 16-06411 GHK, 2016 WL 7635955, at *5 (C.D. Cal. Nov. 16, 2016) (granting
`
`14
`
`stay to await TTAB decision); Citicasters Co. v. Country Club Commc'ns, 44
`
`15
`
`U.S.P.Q.2d 1223, 1997 WL 715034, at *2 (C.D. Cal. July 21, 1997) (granting stay
`
`16
`
`“because of the efficiencies generated by the TTAB first addressing the issues
`
`17
`
`involved” in the matter); V.V.V. & Sons Edible Oils Ltd. v. Meenakshi Overseas LLC,
`
`18
`
`No. 14-02961 TLN(CKD), 2016 WL 1268008, at *4-6 (E.D. Cal. Mar. 31, 2016)
`
`19
`
`(granting stay of trademark infringement, dilution, and unfair competition action in
`
`20
`
`favor of the determination in a TTAB proceeding and appeal therefrom).4
`
`21
`
`“A trial court may, with propriety, find it is efficient for its own docket and the
`
`22
`
`fairest course for the parties to enter a stay of an action before it, pending resolution
`
`23
`
`of independent proceedings which bear upon the case.” Lodestar Anstalt, 2016 WL
`
`24
`
`7635955, *2 (quoting Leyva v. Certified Grocers of California, Ltd., 593 F.2d 857,
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`4 See also Purecircle USA Inc. v. SweeGen, Inc., No. 18-1679, 2019 WL 3220021, at
`*1 (C.D. Cal. June 3, 2019) (J. Selna) (granting stay of patent infringement case
`pending final decision from U.S. Patent Trial and Appeal Board (PTAB) on inter
`partes review petition which challenged every claim of the patent-in-suit).
`
`-6-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 13 of 21 Page ID #:69
`
`
`
`
`
`1
`
`863 (9th Cir. 1979). Such discretion is appropriately invoked when the resolution of
`
`2
`
`the other matter will have a direct impact on the issues before the court, substantially
`
`3
`
`simplifying issues presented. Lodestar Anstalt, 2016 WL 7635955, at *3 (finding that
`
`4
`
`TTAB’s potential cancellation of Lodestar’s registrations would render Lodestar
`
`5
`
`“unable to assert a claim for infringement of a registered trademark” and therefore
`
`6
`
`“simplify [the court’s] task and minimize the risk of inconsistent judgments”).
`
`7
`
`In CMAX, the Ninth Circuit set forth the three competing interests that a court
`
`8
`
`must weigh when deciding whether to grant a stay: (1) “the orderly course of justice
`
`9
`
`measured in terms of the simplifying or complicating of issues, proof, and questions
`
`10
`
`of law which could be expected to result from a stay”; (2) “the possible damage which
`
`11
`
`may result from the granting of a stay”; and (3) “the hardship or inequity which a
`
`12
`
`party may suffer in being required to go forward.” CMAX, 300 F.2d at 268; see also
`
`13
`
`Lodestar Anstalt, 2016 WL 7635955, at *2. In the present case, each factor weighs
`
`14
`
`in favor of granting a stay.
`
`15
`
`IV. ARGUMENT
`
`16
`
`17
`
`A. A Stay Would Promote the Orderly Course of Justice
`
`In this case, there can be little question that a stay would promote “the orderly
`
`18
`
`course of justice measured in terms of the simplifying or complicating of issues, proof,
`
`19
`
`and questions of law.” CMAX, 300 F.2d at 268.
`
`20
`
`The TTAB already granted partial summary judgment finding partial nonuse
`
`21
`
`abandonment and cancelling certain goods in Branded’s Registration Nos. 1387606
`
`22
`
`and 1915132. These canceled goods include, for example, shoes, which Branded
`
`23
`
`specifically lists as one of Vans’ allegedly infringing goods in the Complaint.
`
`24
`
`[Complaint ¶20.] Meanwhile, the parties are currently mid-trial on the remaining
`
`25
`
`goods for those same registrations, and the TTAB may cancel the two registrations in
`
`26
`
`whole following the trial.
`
`27
`
`Branded’s ownership of Registration Nos. 1387606 and 1915132 is central to
`
`28
`
`the present case. Branded’s federal trademark infringement claim in this action
`
`
`
`-7-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 14 of 21 Page ID #:70
`
`
`
`
`
`1
`
`(brought under the Lanham Act) are premised on Branded’s ownership of those same
`
`2
`
`registrations, which is a necessary prerequisite before reaching the question of
`
`3
`
`likelihood of confusion. If forced to proceed, Vans would counterclaim in this action
`
`4
`
`using the same claims it is already pursuing in the TTAB Proceeding, including the
`
`5
`
`facts that Branded’s trademark rights were abandoned through nonuse and
`
`6
`
`uncontrolled licensing.
`
`7
`
`Judicial efficiency will be greatly served by allowing the TTAB to issue its
`
`8
`
`final decision. At a minimum, the TTAB has already streamlined the issues in this
`
`9
`
`action by its orders on Vans’ motions for summary judgment, and the TTAB should
`
`10
`
`be provided an opportunity to include those orders in its final determination.
`
`11
`
`Moreover, if Vans prevails in the pending TTAB trial, Branded will be unable to
`
`12
`
`prevail on its claims in this action that are premised upon its two registrations for OLD
`
`13
`
`SCHOOL. As recognized by the U.S. Supreme Court, the TTAB’s determination of
`
`14
`
`trademark rights has a preclusive effect on subsequent trademark infringement claims,
`
`15
`
`such that the TTAB’s determination in favor of Vans would dispose of Branded’s
`
`16
`
`claims related to the two trademark registrations. See B & B Hardware, 575 U.S. at
`
`17
`
`160, 135 S. Ct. at 1310 (noting that the governing standards for trademark registration
`
`18
`
`and infringement are the same, and holding that “when the usages adjudicated by the
`
`19
`
`TTAB are materially the same as those before the district court, issue preclusion
`
`20
`
`should apply.”).5
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`5 The TTAB’s decision as to whether Branded has abandoned its OLD SCHOOL
`marks would likely also preclude Branded’s claims based on common law rights,
`since “a party that is found to have abandoned its mark is deprived of any claim to
`priority in the mark before the date of abandonment.” General Cigar Co., Inc. v.
`G.D.M. Inc., 988 F. Supp. 647, 658 (S.D.N.Y. 1997); Specht v. Google Inc., 747 F.3d
`929, 935 (7th Cir. 2014), cert. denied, 135 S. Ct. 724, 190 L. Ed. 2d 442 (2014)
`(affirming dismissal of unfair competition and common law trademark violations;
`holding that due to prior user’s abandonment, Google could not be liable for use of
`the Android mark). In other words, a TTAB finding of abandonment (which would
`have preclusive effect) would cut off all of Branded’s claims.
`
`-8-
`DEFENDANT’S MOTION TO STAY CASE
`
`
`
`Case 8:20-cv-02085-JVS-KES Document 14 Filed 11/16/20 Page 15 of 21 Page ID #:71
`
`
`
`
`
`1
`
`For this reason, the court in Lodestar Anstalt recognized that staying the federal
`
`2
`
`case was the “most efficient solution” in