FI LED U. S . COURT OF AP PE ALS E L E V E N T H C IR C U IT Jul y 18, 2006 T HOM AS K. KAHN CL E RK

Honora ble David G. Trag er, United States District Judg e for the Easter

n District of New * York, sitting by

designation. [ P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 05- 13492

________________________ D . C . D ocketN o. 02 -024 59 -C V -T W T -1 I N T E RN A T I O N A L S T A M P A R T , I N C ., P la in tif f - A p p e lla n t, v ersu s U N I T E D S T A T E S P O S T A L S E R V I C E , D e f e n d a n t- A p p e lle e .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o r th e r n D is tr ic t o f G e o r g ia

_________________________ ( Ju l y 18, 2006) B ef ore B IR C H and C A RN E S , C i rc ui tJudg es , and T R A G E R , D i stri ctJudg e. * P E R C U R I A M:2

P l ai n t i ff-ap p el l an t , In t ern at i o n al S t am p A rt , In co rp o rat ed (“ IS A ”) ap p eal s a grantof sum m ary j ud gm enti n favor of defendant -app el l ee , the U ni t ed S t at es P os t a l S e r vi c e ( “ P os t a l S e r vi c e ” ) w i th r e s pe c tt o the P os t a l S e r vi c e ’ s a s s e r t i on of fa i r use i n res po nse t o IS A ’ s a l l egat i on s of tra dem ark i nfri ng em ent . T he appeal re qu i re s us t o d et erm i ne the approp ri at e l egal st andard for goo d fai th w i th res pect t o a f a i r - u s e d e f

e n s e i n th i s c o n t e x t , a n i s s u e o f f i r s ti m p r e s s i o n f

o ru s . B e c a u s e we j oi n f ourothe rc i r c ui t s i n hol di ng tha tthe l e ga l s t a nda r d i s the s a m e a s f ora ny other tra dem ark i nfri ng em enti nq ui ry i nt o g oo d fai th – w hether the al l eged i nf r i nge ri nt e nde d t o be ne f i tf r om the good w i l l a s s oc i a t e d w i th the hol de rof the m ark – and b ec ause there i s no evi dence i n the re cord i nd i ca t i ng thatthe P ost al S e r v i c e s o i n t e n d e d , w e A F F I R M. I . B AC KG RO UN D IS A , a fo r-p ro fi tco rp o rat i o n en g ag ed i n th e p ro d u ct i o n o f n o t e card s, g reet i n g s card s, p o st ers, an d p ri n t s, w as fo u n d ed i n 1 9 8 5 . F o r m o sto f th ese p r o d u c ts , I S A h a s u s e d a p e r f o r a te d b o r d e rd e s ig n th a t e v o k e s th e f u n c tio n a l f

la tedged p er fora t i on of an ol der post age s t am p. S ee R 3-56 , E xh s. Q , S . In O ct ob er 19 94 , IS A fi l ed an appl i ca t i on w i th the U ni t ed S t at es P at entand T ra dem ark o ff i ce se eki ng t o regi st erthe perfora t ed bo rderdesi gn as a tra dem ark and , i n 1 99 6, w as gr a nt e d U . S . R e gi s tr a t i on N o. 1, 985, 086 f ortha tm a r k f

orus e on pr i nt e d not e c a r dsSection 1065 of Title 15 of the United States Code provides that 1 [e]xc ept o n a

groun d f or whic h a pp lic atio n toc anc e l ma

y befi le d at any

tim e un der p aragra

ph s ( 3) and

(5 ) o f s e c tio n 1 06 4 o f t

histitle , a nd e xcept to th ee xtent, if any, towhic h th eus eof

a mark re g ist e re d o n th eprinc ipal re g ist e r inf ring e s a valid right acquire d under thelaw of a ny State or Ter

ritory by use of a mark or tra denamec ontin

uingfrom a

dateprior

to t hedateof re g ist ratio n und e r t

his chapter of suc h reg istered mar k, the right of the re g istrant to use such re g istered mark in commerce f

or the g oods or servic es on or in conne ction with which such reg istered mar

k has been in continuous use for f ive conse cutive year s subsequent to the date of

such re g istration and is still in use in commerc e, shall be incontestable. 15 U. S.C. § 1 06 5. To c laim s uc h s tatus , a mark ho lder m us t f ilean a ff ida vit se ttingfo rt

h complianceof its mark with all requirements of this section. I d. § 1065(3). “ Oncea mar k has a c hieve d ‘ inc onte sta

ble ’ s tatus , it s v alidity

c ann ot b ec halleng e d o n th egroun ds that it is m e re ly descriptive, even if thechalleng er c an show that the ma rk wa s improperly

reg istered initially .” D i e t e r v . B &HIn d

u s . o f S w . F l a . , In c . , 8 8 0 F . 2 d

3 2 2 , 3 2 8 ( 1 1 thC i r . 1 9 8 9 ) . M o reg e n e ral l y, “its validity

is presumed, subjec t to certain enumerated def enses.”I d.

3 and g re et i ng ca rds. F or the pu rposes of the sum m ary j ud gm entm ot i on fr om w hi ch th e o r d e rn o w b e f

o r e u s a r is e s , th e p a r tie s h a v e s tip u la te d th a t th e m a r k is i ncon t es t abl e. 1 A l m ostfr om i t s i ncept i on , IS A w as a non -e xcl usi ve l i ce nsee of the P ost al S e r v ic e . B e tw e e n 1 9 8 5 a n d 1 9 9 7 th e r e w e r e a s e r ie s o f lic e n s e a g r e e m e n ts b e tw e e n th e p a r t i e s . I n e a c h c a s e , th e Po s t a l Se r v i c e l i c e n s e d u s e o f i t s “ s t a mp de s i gns ” w hi c h w e r e f

ur the rs pe c i f

i e d t o i nc l ude “ [ a ] l l U ni t e d S t a t e s pos t a ge st am ps t o w hi ch the U . S . P ost al S ervi ce ow ns the copyri gh t . ” S ee R 1-19 , E xh . 1 at 1- 2, 19; i d. , E xh. 2 a t1- 2, 19. S t a m p i m a ge s w e r e tr a ns m i tt e d t o l i c e ns e e s i n the4

form of tra nspare nci es , ea ch m arked as c op yr i gh tprot ec t ed and d epi ct i ng the ent i re s t a m p i nc l udi ng a ny pe r f or a t e d e dge s . S e e , e . g. , R 3- 49 a tA 204 ( l i c e ns i ng tra nspare ncy of G i rl S cout s S t am p); se e a l so R 3-56 , E xh . C at72 . T he P ost al S e r vi c e r e t a i ne d r i ghtof appr ova l ove ra l l l i c e ns e d pr oduc t s . R 1- 19, E xh. 1 a t6- 8; id ., E x h . 2 a t 6 - 8 . A s a l i c e ns e e , I S A a l s o s oughtt o s e l l i t s pr oduc t s a tP os t a l S e r vi c e l oc a t i ons na t i onw i de , a nd t o tha te nd m a de s e ve r a l pr e s e nt a t i ons t o the P os t a l S e r vi c e a nd, l a t e r , t o i t s l i c e ns e m a na ge m e ntf i r m , H a m i l t on P r oj e c t s . I n the l a t e 1980s a nd earl y 1 9 9 0 s, a few P o st al S erv i ce st o res d i d carry IS A p ro d u ct s. In th e m i d 1 9 9 0 s, the part i es di sc usse d the po ss i bi l i ty of e xp andi ng such sa l es t o P ost al S ervi ce s to r e s n a tio n w id e . N o th in g f u r th e rc a m e o f

it, h o w e v e r , a n d th e P o s ta l S e r v ic e d id notr e s pond t o a ny of

I S A ’ s s ubs e que ntpr opos a l s t o ha ndl e i t s di s tr i but i on a nd m a n a g e m e n t o f

s ta tio n a r y a n d g r e e tin g c a r d s . I n th e l a t e 1 9 9 0 s , th e P o s t a l S e r v i c e R e t a i l Di v i s i o n b e g a n o f f e r i n g i t s o wn l i ne of s t a m p a r tc a r ds . M os tof the s e c a r ds i nc l ude d the pe r f or a t e d bor de rof

the or i gi na l s t a m p a s pa r tof the s t a m p’ s i m a ge . S e e , e . g. , R 1- 1, E xhs . 3 ( S y l ve s t e ra nd T w e e ty ) , 5 ( L o v e ) , & 6 ( S n o o p y ) . T h e P o s ta l S e r v ic e h a s a ls o o c c a s io n a lly l i c e ns e d orpr oduc e d c a r ds i nc orpor a t i ng the a r tde pi c t e d i n i t s s t a m ps w i thouta ny pe r f or a t e d bor de r . R 3- 56, E xh. R ( E l vi s , H ol l y , P a ns y , tw o ve r s i ons of M i dni ghtThe Sylvester a nd Tweety

card is the only

exception to this rule. Thefront of thecard 2 depicts the entire imag e of theorig inal stamp, with its ol der f unctional perforated edg e. R3-56, 5 A ng el ). M ostca rds have i ncl ud ed the st am p v al ue desi gn at i on and t he “ U S A ” a s the y appe a r e d on the s t a m p, buts om e of the c a r ds tha ti nc orpor a t e onl y the a r ta nd n o tth e e n t i r e s t a m p i m a g e h a v e n o ti n c l u d e d th o s e e l e m e n t s . I d . ( P a n s y , two vers i on s of M i dn i gh tA ng el ). T he P ost al S ervi ce ’ s c ho i ce abou tw hether t o d epi ct st am p i m ages or som e other f orm of the un derl yi ng st am p arthas oft en re fl ec t ed the e xt e ntof

i t s ow ne r s hi p i nt e r e s ti n the s t a m p i m a ge . S e e i d. , E xh. C a t38- 39; i d. , E xh. D a t28- 30. I n the c a s e of j oi nt l y - ow ne d s t a m p de s i gns , i n w hi c h the copyri gh ti nt er es ti n the un derl yi ng artw ork i s hel d b y a no ther, the P ost al S ervi ce ha s of t e n be e n l i m i t e d t o r e pr oduc i ng the e nt i r e s t a m p i m a ge w i th a l l i t s c ons t i tue nt el em ent s – the “ U S A , ” the pri ce , and any perfora t i on s – because i ti s notl i ce nsed to r e p r o d u c e th e u n d e r ly in g a r t a lo n e . I d ., E x h . C a t 3 8 - 3 9 ; id ., E x h . D a t 2 7 - 3 0 . S i nce the P ost al S ervi ce adop t ed se l f- adhesi ve for i t s s t am ps, P ost al S ervi ce ca rds i ncorpo ra t i ng the i m ages of st am ps have depi ct ed the st am ps w i th thei r new se rpent i ne di e- cut“ perf orat ed” borders. R 1-1, E xh s. 5-6; R 3-56 , E xh . P (L ov e, S n o o p y , P u p p y , K w a n z a a , H a n u k k a h ) . P o s ta l S e r v ic e c a r d s in c lu d e a n e a s ily vi si bl e i m pri ntof i t s f

am i l i arE agl e tra dem ark o n the back, general l y a cc om pani ed by i nf or m a t i on a boutthe hi s t or y of the s t a m p ors t a m p a r tde pi c t e d on the c a r d a nd anot her s m al l eri m age of the ent i re st am p. R 3-56 , E xh s. P , R . T here i s no rec ord 2Exh. P (Sylvester a nd Tweety). The back appe ars to be plain red a nd mostly blank, but does bea

r an ac knowledgment of Warner Brothers as thesourceof the c haracter s and of the Postal Service as the sourc e of thestamp design. I d. The c ard doe s not carr y the Eag le trademark. I d. Some of the alleg edly

infring ing Postal Servicecards also prominently include the trademark of thecontracted c ard de signer in addition to that of the Postal Service. Seeid., Ex h. P (Snoopy

(Hallmark), Kwa

nzaa (America

n Gre eting s), Hanukka

h (American Greeting s)). The c ourt also found that g enuine issues of material fact pre cluded summary judgment 3 as to the Postal Service’ s alternative arguments assertingabandonment and ac tual notice. R4-77 at 18, 20. 6 evi dence thatthe P ost al S ervi ce has c re at ed any c ar d thatadds a per fora t ed bo rder t o th e i m ag e o f o n e o f th e few st am p s i th as p ro d u ced w i th o u tan y p erfo rat i o n s. I n S e pt e m be r2002, I S A s ue d the P os t a l S e r vi c e a l l e gi ng unl a w f ul i nfri ng em entof i t s per fora t ed bo rderm ark w i th res pectt o tho se P ost al S ervi ce c a r ds de pi c t i ng the e nt i r e i m a ge of a s t a m p. T he P os t a l S e r vi c e m ove d f or s um m a r y j udgm e nt , a s s e r t i ng tha t( 1) i tdi d notus e the m a r k; ( 2) i t s us e of the p erfo rat ed b o rd er i n d ep i ct i n g i m ag es o f i t s st am p s fel l w i th i n th e fai r-u se exce pt i on prov i ded b y l aw ; (3) I S A had aband on ed the m ark; and (4) dam ages w er e pre cl ud ed base d o n actual no t i ce . T he di stri ctcourtfoun d thatthe P ost al S e r vi c e ha d us e d the di s put e d bor de r , buttha ti tha d us e d i t“ othe rtha n a s a m a r k, in a d e s c r ip tiv e m a n n e r , a n d in g o o d f a ith ,” a n d g r a n te d s u m m a r y ju d g m e n t in f a v o ro f th e Po s t a l Se r v i c e o n th e b a s i s o f f a i ru s e . R4 - 7 7 a t1 3 . O n ap p e a l , I SA

3 d is p u te s th e g r a n t o f

s u m m a r y ju d g m e n t a r g u in g o n ly th a t th e d is tr ic t c o u r t e r r e d in7

f in d in g n o g e n u in e is s u e o f m a te r ia l f

a c t a s to th e P o s ta l S e r v ic e ’s g o o d f a ith in u s in g th e b o r d e r . I I . DI S CUS S I ON

“ W e r evi ew a di stri ctcourt ’ s gra ntof sum m ary j ud gm entde no vo . ” S i e m e ns P ow e rT r a ns m i s s i on & D i s tr i but i on, I nc . v. N or f ol k S . R y . , 420 F . 3d 1 2 4 3 , 1 2 4 8 (1 1 th C i r. 2 0 0 5 ). S u m m ary j u d g m en ti s ap p ro p ri at e “ i f th e p l ead i n g s, de pos i t i ons , a ns w e r s t o i nt e r r oga t or i e s , a nd a dm i s s i ons on f i l e , t oge the rw i th the a f f i da vi t s , i f

a ny , s how tha tthe r e i s no ge nui ne i s s ue a s t o a ny m a t e r i a l f a c ta nd th a tth e mo v i n g p a r ty i s e n t i t l e d t o a j u d g me n ta s a ma tt e ro f l a w . ” Fe d . R. Ci v . P. 56 (c ). O nce the m ov i ng party has prop er l y s up po rt ed i t s m ot i on for s um m ary ju d g m e n t, th e b u r d e n s h if ts to th e n o n m o v in g p a r ty to “c o m e f o r w a r d w ith s p e c if

ic fact s sh o w i n g th atth ere i s a g en u i n e i ssu e fo r tri al . ” S ee M at su sh i t a E l ec. In d u s. C o. v. Z e ni th R a di o C orp. , 475 U . S . 574, 586- 87, 106 S . C t . 1348, 1356 ( 1986) (quo t at i on s a nd em ph as i s om i tt ed). If the m ov antbear s the bu rden of proo f on an i ssu e, b ecau se, as a d efen d an t , i ti s assert i n g an affi rm at i v e d efen se, i tm u st es t abl i sh thatthere i s no g enui ne i ss ue of m at er i al fa ctas t o any el em entof that d e f e n s e . S e e M a rtin v . A la m o C o m m u n ity C o lle g e D is t., 3 5 3 F .3 d 4 0 9 , 4 1 2 ( 5 th C i r. 20 03 ).8

A tr a de m a r k i s “ a ny w or d, na m e , s y m bol , orde vi c e , ora ny c om bi na t i on th ereo f [u sed ] t o i d en t i fy an d d i st i n g u i sh [o n e’ s] g o o d s . . . fro m th o se m a nuf a c tur e d ors ol d by othe r s a nd t o i ndi c a t e the s our c e of the goods . ” G i f

tof L ea rni ng F ou nd at i on , Inc. v. T G C , Inc. , 32 9 F . 3d 79 2, 79 7 (11 th C i r. 20 03 ) ( per curi am ) ( qu ot i ng 15 U . S . C . § 1 12 7). “ A pl ai nt i ff se eki ng t o p re vai l on a tra dem ark i nf r i nge m e ntc l a i m m us ts how 1) tha the ha d a va l i d tr a de m a r k a nd 2) tha tthe d e f e n d a n t h a d a d o p te d a n id e n tic a l o rs im ila rm a rk s u c h th a t c o n s u m e r s w e r e lik e ly to c o n f u s e th e tw o .” I d . A s f o rth e f ir s t e le m e n t, th e p a r tie s h a v e s tip u la te d th a t I S A ’s m a r k is i ncon t es t abl e. A s t o the se cond , the di stri ctcourtfoun d thatthe P ost al S ervi ce s ta m p a r t p r o d u c ts d id in c o rp o r a te a p e r f o r a te d b o r d e rs im ila rto I S A ’s m a r k . A c c or di ngl y , the que s t i on be c a m e w he the rornotthe P os t a l S e r vi c e ’ s us e of the bo rdercoul d b e def

ended as a “ fa i r use ” of the m ark. B ec ause the P ost al S ervi ce m ov ed for s um m ary j ud gm enton the grou nd thati tcoul d b e s o d ef ended, i thad the bur de n t o e s t a bl i s h tha tthe r e w a s no ge nui ne i s s ue of m a t e r i a l f

a c ta s t o a ny e l e m e ntof

the f a i r - us e de f

e ns e . S e e M a r t i n, 353 F . 3d a t413. A f a i r - us e de f

e ns e i s e s t a bl i s he d i f

a de f e nda ntpr ove s tha ti t s us e i s “ ( 1) o th e rth a n a s a m a r k , ( 2 ) i n a d e s c r i p t i v e s e n s e , a n d ( 3 ) i n g o o d f a i th . ” E MI C a t a l ogue P ’ s hi p v. H i l l , H ol l i da y , C onnor s , & C os m opul os , I nc . , 228 F . 3d 56, 649

( 2 d C ir . 2 0 0 0 ) ( c itin g 1 5 U .S .C § 1 1 1 5 ( b ) ( 4 ) ) ; s e e a ls o S o w e c o , I n c . v . S h e ll O il C o. , 61 7 F . 2d 11 78 , 11 85 (5th C i r. 19 80 ). “ T he ‘ fa i r- use’ defe nse, i n ess ence , f orbi ds a tr a de m a r k r e gi s tr a ntt o appr opr i a t e a de s c r i pt i ve t e r m f or[ i t s ] e xc l us i ve u s e a n d s o p r e v e n t o th e r s f r o m a c c u r a te ly d e s c r ib in g a c h a r a c te r is tic o f th e ir goods . ” S ow e c o, 617 F . 2d a t1185. I n thi s c a s e , the di s tr i c tc our tf ound no ge nui ne i s s ue of

m a t e r i a l f

a c ta s t o w he the rthe P os t a l S e r vi c e ha d ( 1) us e d the b o r d e ro th e rth a n a s a m a r k , ( 2 ) u s e d th e b o r d e rd e s c r ip tiv e ly , a n d ( 3 ) d o n e s o in good f a i th. O n appe a l , I S A c ha l l e nge s onl y the f i ndi ng of no ge nui ne i s s ue of m a t e r i a l f

a c ta s t o w he the rthe P os t a l S e r vi c e us e d the bor de ri n good f a i th. W e have notye tes t abl i shed a l egal st andard for goo d fai th for pu rposes of a f a ir - u s e d e f

e n s e in th e c o n te x t o f

tr a d e m a r k in f

r in g e m e n t. I n a d d r e s s in g th is q u est i o n , o th er ci rcu i t s h av e co n cl u d ed th atth e st an d ard fo r g o o d fai th fo r fai r u se i s the s a m e a s the l e ga l s t a nda r d f orgood f a i th i n a ny othe rtr a de m a r k i nf r i nge m e nt c ont e xta nd tha ttha ts t a nda r d a s ks w he the rthe a l l e ge d i nf r i nge ri nt e nde d t o tr a de on the good w i l l of

the tr a de m a r k ow ne rby c r e a t i ng c onf us i on a s t o the s our c e of the goods ors e r vi c e s . S e e E M I , 228 F . 3d a t66 ( “ I n a na l y z i ng the pr ope rs c ope of fa i r use go od fa i th, prec edent s di sc ussi ng go od fa i th [as partof the st andard tr a de m a r k] l i ke l i hood of c onf us i on a na l y s i s a r e r e l e va ntbe c a us e the f oc us of the in q u iry is th e s a m e , n a m e ly , w h e th e rd e f e n d a n t in a d o p tin g its m a r k in te n d e d to10

c api t a l i z e on pl a i nt i f

f’ s good w i l l . ” ) ; I ns t . f

orS c i e nt i f

i c I nf o. , I nc . v. G or don & B r e a c h, S c i e nc e P ubl i s he r s , I nc . , 931 F . 2d 1002, 1009- 10 ( 3d C i r . 1991) ( hol di ng thatuse of i nfri ng i ng ph ra se af t erthree -y ea r use of agre ed al t ernat i ve ra i se d an i s s ue of m a t e r i a l f

a c ta s t o good f

a i th be c a us e i tm a y i ndi c a t e a n “ i nt e nt [ ] t o tr a de upon a nd di l ut e the good w i l l ” of the m a r k) ; P a c km a n v. C hi c a go T r i bune C o. , 267 F . 3d 628, 642 ( 7th C i r . 2001) ( “ M e r e know l e dge of [ pl a i nt i f f’ s ] tr a de m a r k on the phr a s e i s i ns uf

f i c i e ntt o e s t abl i s h tha t[ de f e nda ntpubl i s he r s ] a c t e d i n ba d f a i th a nd to p r e c lu d e s u m m a r y ju d g m e n t. T h e d e f e n d a n ts ’ g o o d f

a ith ‘c a n b e ju d g e d o n ly by i nqui r y i nt o [ the i r ] s ubj e c t i ve purpos e i n us i ng the s l oga n[ ] . ’ ” ) ( c i t a t i on o m itte d ) ; S ie r r a O n - L in e , I n c . v . P h o e n ix S o f tw a r e , I n c ., 7 3 9 F .2 d 1 4 1 5 , 1 4 2 3 ( 9 th C i r. 1 9 8 4 ) (h o l d i n g th atg o o d fai th i s p u tati ssu e b y ch o i ce o f i n fri n g i n g p h rase w he n othe rphr a s e s w e r e a va i l a bl e be c a us e i tm a y i ndi c a t e “ a n i nt e ntt o tr a de on [m ark h ol der’ s] go od w i l l and p rodu cti dent i ty” ); se e a l so Z at ar ai ns, Inc. v. O ak G rove S m ok ehou se , Inc. , 69 8 F . 2d 78 6, 79 6 (5th C i r. 19 83 ) ( concl ud i ng that i nt ent i on al l y di ss i m i l arpackagi ng and l abel i ng of prod uctdesi gn ed t o m i ni m i ze co n fu si o n o v er so u rce su ffi ci en t l y d em o n strat ed g o o d -fai th fai r u se o f t erm “ fi sh f r y ” t o d e s c r i b e p r o d u c t ) . No c i r c u i th a s u s e d a n y a l t e r n a t i v e s t a n d a r d , a n d we agre e thatthi s i s the approp ri at e s t andard t o u se .11

A ppl y i ng thi s s t a nda r d he r e , w e obs e r ve tha tthe r e c or d i ndi c a t e s tha tthe i m age bot h cop yr i gh t ed and l i ce nsed by the P ost al S ervi ce w i th res pectt o eac h s ta m p in c lu d e s a p e r f

o r a te d e d g e w h e n th e o r ig in a l s ta m p w a s p r o d u c e d w ith p e r f o r a t e d e d g e s . Se e R3 - 4 9 a tA 2 0 4 ( l i c e n s i n g tr a n s p a r e n c y o f G i r l Sc o u t s St a mp d e n o tin g c o p y r ig h t a s s e r tio n o v e re n tir e s ta m p im a g e , in c lu d in g p e r f o r a te d e d g e s ) . T he re cord show s thatthe ov erw hel m i ng m aj ori ty of s t am ps the P ost al S ervi ce prod uces i ncl ud e per fora t ed edges and have l on g d on e s o. T he P ost al S ervi ce has a ls o p r o v id e d a f

f ir m a tiv e e v id e n c e o f

g o o d f a ith in s h o w in g th a t it p r o m in e n tly p la c e s its o w n f

a m ilia rE a g le tr a d e m a r k o n th e b a c k s o f its s ta m p a r t p r o d u c ts the r e by i de nt i f

y i ng the m a s P os t a l S e r vi c e pr oduc t s r a the rtha n the pr oduc t s of a ny one e l s e i n the m a r ke tpl a c e . S e e C os m e t i c a l l y S e a l e d I ndus tr i e s , I nc . v. C he s e br ough- P ond’ s U S A C o. , 125 F . 3d 28, 30 ( 2d C i r . 1997) ( “ T he n o n - tr a d e m a r k u s e o f

th e c h a lle n g e d p h r a s e a n d th e d e f e n d a n ts ’ g o o d f

a ith a r e b o th evi denced by the fa ctthatthe source of the defendant s’ prod ucti s c l ea rl y i dent i fi ed b y th e p r o m in e n t d is p la y o f th e d e f e n d a n ts ’ o w n tr a d e m a r k s .” ) . F in a lly , in re spon se t o thi s e vi dence, IS A has noti dent i fi ed any e vi dence thatthe P ost al S e r vi c e s oughtt o m i s l e a d orc onf us e c ons um e r s i nt o thi nki ng tha tthe s our c e of the c a r ds i tpr oduc e d w a s a c tua l l y I nt e r na t i ona l S t a m p A r tora ny one othe rtha n the P o s ta l S e r v ic e . I n s u m , th e r e is n o e v id e n c e th a t th e P o s ta l S e r v ic e in te n d e d toI SA argues that the burden ought to be on the Postal Service to show that it used the 4 mark in g ood faith rather than upon I SA to show bad faith. In the context of moving for summary judgment, the Postal S ervic e must show that thereis no genuine issue of material fact a s toany e le ment o f t

hefair -u sede fens e , in c ludingwh e ther it us e d th eperf orate d b ordersin its card designs in good f

aith. Acc ording ly , at this stage , the Postal Service already bear s the burde n, and

wene e d v e ntu

reno fu rt her intotheburde n a

nalysis . 12 creat e co n fu si o n as t o th e so u rce o f i t s st am p artcard s b y d ep i ct i n g th e st am p s’ e dge s a s pa r tof

the i m a ge of

e a c h s t a m p. A l though I S A a r gue s tha t“ [ t ] he i nqui r y i n a f a i rus e a na l y s i s ne e d nots t op atw hether the subsequentuseri nt ended t o tra de on the go od w i l l of the tra dem ark o wn e r , ” i tf

a i l s t o a r t i c u l a t e e x a c t l y wh a tf u r th e ri n q u i r y , r e l e v a n tt o tr a d e m a r k l a w, ou gh tt o b e pursued. A pp el l ant ’ s R epl y B r. at6. IS A al so ar gu es thati thas r ai se d 4 a genui ne i ss ue of m at er i al fa ctas t o the go od fa i th o f the P ost al S ervi ce even u n d e rth e m a

jo r ity s ta n d a r d . In conn ec t i on w i th thi s s ec on d p oi nt , IS A fi rs tas se rt s thatthe P ost al S ervi ce ha d a non- i nf

r i ngi ng, c om m e r c i a l l y vi a bl e a l t e r na t i ve . F a i l ur e t o e m pl oy a noni nfri ng i ng , com m er ci al l y vi abl e a l t ernat i ve ca n rai se a genui ne i ss ue of m at er i al f a c t . S e e G or don & B r e a c h, 931 F . 2d a t1009- 10; S i e r r a O n- L i ne , I nc . , 739 F . 2d at14 23 . M ore s peci fi ca l l y, IS A sugg es t s thatthe P ost al S ervi ce coul d p rodu ce c a r ds de pi c t i ng the a r tupon w hi c h i t s s t a m p de s i gns w a s ba s e d, r a the rtha n the s t a m ps the m s e l ve s , a nd poi nt s outtha tthe P os t a l S e r vi c e ha s a l r e a dy done thi s on m ul t i pl e oc c a s i ons . T hi s , how e ve r , i s nota n a l t e r na t i ve m a nne rof de pi c t i ng the13

stam p s, b u t rath era c h o ice n o t t o d ep ict stam p s. F u rth er , alth o u g h IS A ’s s u g g e s te d a lte r n a tiv e w o u ld b e p o s s ib le w ith r e g a r d to th e s ta m p d e s ig n s w h o lly ow ne d by the P os t a l S e r vi c e , i tm i ghtnotbe pos s i bl e w i th r e ga r d t o thos e de s i gns o f w h i c h th e c o p y r i g h tt o th e u n d e r l y i n g a r ti s h e l d b y a n o th e r . A c c o r d i n g l y , I SA h as n o td em o n strat ed th atan y tru e al t ern at i v e ex i st s. I S A a ls o a r g u e s th a t th e P o s ta l S e r v ic e f a ile d to c o n s u lt c o u n s e l p r io rto prod uci ng ca rds depi ct i ng i t s s t am ps. A l tho ug h thi s f ac t or m ay const i tut e e vi dence of bad fai th u nd erce rt ai n ci rc um st ance s, i n thi s c as e, because the P ost al S ervi ce w a s e n title d to u s e th e p e r f o r a te d b o r d e rd e s c r ip tiv e ly , a s p a r t o f th e im a g e o f

its prod uct s, thati tm i gh thave do ne so “ w i tho utconsul t i ng coun se l has no t endency t o s how ba d f

a i th. ” S e e C a r - F r e s hne rC orp. v. S . C . J ohns on & S on, I nc . , 70 F . 3d 267, 270 ( 2d C i r . 1995) ( “ A s [ de f e nda nt ] w a s f

ul l y e nt i t l e d t o us e a pi ne - tr e e s hape desc ri pt i vel y notw i thst andi ng [pl ai nt i ff’ s] use of atre e s hape as a m ark, the fa ct th a t it d id s o w ith o u t c o n s u ltin g c o u n s e l h a s n o te n d e n c y to s h o w b a d f a ith .” ) . A c c o r d in g ly , w e c o n c lu d e th a t th is e v id e n c e , e v e n ta k e n in th e lig h t m o s t f a v o r a b le to I S A , d o e s n o t w e ig h in its f a v o r . IS A fu rth erar g u es th at th e P o stal S er v ice h ad k n o w led g e o f I S A ’s r e g is tr a tio n o f

th e m a r k , a n d th a t it h a d b e e n w a r n e d a b o u t its in f r in g in g c a r d s . K no w l edge, un der c ert ai n ci rc um st ance s, m ay ra i se a genui ne i ss ue of m at er i al fa ct14

a s to g o o d f

a ith . S e e G T E C o rp . v . W illia m s , 9 0 4 F .2 d 5 3 6 , 5 4 1 ( 1 0 th C ir . 1 9 9 0 ) . B uts e e C a dbur y B e ve r a ge s , I nc . v. C ottC orp. , 73 F . 3d 474, 483 ( 2d C i r . 1996) ( “ F ul l know l e dge of

a pr i orus e of

a pr ot e c t e d m a r k i s notne c e s s a r i l y i nc ons i s t e nt w ith a f in d in g o f g o o d f a ith , p a r tic u la r ly w h e r e th e a lle g e d in f r in g e ris u n s u r e a s to the s c ope of

the pr ot e c t i on. ” ) . B e c a us e our“ ul t i m a t e f oc us i s on w he the rthe [ a l l e ge d i nf

r i nge r ] ha d the i nt e ntt o be ne f i tf r om the r e put a t i on orgoodw i l l of the [m ark h ol der] , ” G T E C orp. , 90 4 F . 2d at54 1, w e c on cl ud e that , kn ow l edge al on e, in th e c o n te x t o f

a n o n - tr a d e m a r k , d e s c r ip tiv e u s e – p a r tic u la r ly w h e n th e r e is a f f i r m a t i ve e vi de nc e of

a n i nt e ntnott o c onf

us e , a nd no di r e c te vi de nc e t o the c ontr a r y – i s i ns uf

f i c i e ntt o r a i s e a ge nui ne i s s ue of m a t e r i a l f

a c ta s t o good f

a i th. IS A further c om pl ai ns thatthe di stri ctcourtfa i l ed t o con si der e vi dence that the P os t a l S e r vi c e ( 1) r e f us e d t o e nt e ra di s tr i but i on c ontr a c tw i th I S A a nd ( 2)

“ m i s appr opr i a t [ e d] ” i t s c onc e ptof s e l l i ng pape rpr oduc t s c ont a i ni ng the i m a ge s of pos t a ge s t a m ps . A ppe l l a nt ’ s B r . a t3. A l though thi s e vi de nc e m i ghtr a i s e a n i s s ue as t o g o o d fai th i n b u si n ess rel at i o n s, trad em ark l aw d o es n o tp ro t ectag ai n st m i s appr opr i a t i on of

bus i ne s s c onc e pt s . T hi s c a s e i s be s tunde r s t ood by pl a c i ng the e m pha s i s on the unc ont e s t e d f a c ttha tthe P os t a l S e r vi c e ’ s i nc orpor a t i on of the p erfo rat ed b o rd er i n i t s g reet i n g card s d ep i ct i n g p o st ag e st am p s i n v o l v es a n o n - tr a d e m a r k u s e o f

I S A ’s m a r k . W h e r e , a s h e r e , u s e o f th e m a r k , a s th e “o n ly15

[ s y m bol ] r e a s ona bl y a va i l a bl e ” t o i ndi c a t e tha tthe i m a ge on the c a r d i s m e a ntt o be a p o s ta g e s ta m p , “d o e s n o t a tte m p t to c ap ita liz e o n c o n s u m e rc o n f u s io n o rto approp ri at e the ca chet ” of the m ark h ol der, i tfa i l s t o “ i m pl i ca t e the sourcei de nt i f i c a t i on f unc t i on tha ti s the purpos e of tr a de m a r k. ” S e e N e w K i ds on the B l oc k v. N e w s A m . P ubl ’ g I nc . , 971 F . 2d 302, 308 ( 9th C i r . 1992) . T hus , i tc a nnot c o n s titu te in f

r in g e m e n t. I I I . CONCL US I ON I S A c ha l l e nge s the di s tr i c tc our t ’ s gr a ntof s um m a r y j udgm e nti n f a vorof the P os t a l S e r vi c e a s t o I S A ’ s tr a de m a r k i nf r i nge m e ntc l a i m . B e c a us e w e s e e no e v id e n c e in th e r e c o r d to s u p p o r t th e a lle g a tio n th a t th e P o s ta l S e r v ic e , in pr oduc i ng c a r ds de pi c t i ng i m a ge s of i t s s t a m ps , i nt e nde d t o be ne f i tf r om the good w i l l as soci at ed w i th IS A ’ s per fora t ed bo rdertra dem ark, w e AF F I RM the di stri ct c o u r t’s g r a n t o f

s u m m a r y ju d g m e n t in f a v o ro f th e P o s ta l S e r v ic e o n th e b a s is o f its fa i r- use def

ense .