Opinion ID: 3036357
Heading Depth: 5
Heading Rank: 1

Heading: the extent of sales and advertising leading to

Text: buyer association; (2) length of use; (3) exclusivity of use; (4) the fact of copying; (5) customer surveys; (6) customer testimony; (7) the use of the mark in trade journals; (8) the size of the company; (9) the number of sales; (10) the number of customers; and, (11) actual confusion. Commerce Nat’l Ins. Services, Inc. v. Commerce Ins. Agency, Inc., 214 F.3d 432, 438 (3d Cir. 2000). “[T]he evidentiary bar must be placed somewhat higher” when the challenged term is particularly descriptive. Id. at 441. Browne’s proffered showing of secondary meaning includes the following evidence: • its use and promotion of the term “Cocoa Butter Formula” continuously for 20 years; • the substantial amounts of money it has spent promoting the term “Cocoa Butter Formula;” • the nature and quality of the advertising in support of the term “Cocoa Butter Formula;” • Cococare’s alleged intent to copy the term 28 “Cocoa Butter Formula;” and • the increase in the sales of products bearing the term “Cocoa Butter Formula.” This evidence may seem, at first blush, to support Browne’s claim that the term “Cocoa Butter Formula” has gained secondary meaning. But serious flaws cause it to fail to create a genuine issue of material fact on the question of secondary meaning. The evidence’s core deficiency is that while it shows Browne used the term “Cocoa Butter Formula” on many occasions over a long period of time, it does not show Browne succeeded in creating secondary meaning in the minds of consumers. Although the evidence leaves no doubt that Browne hoped the term would acquire secondary meaning, nothing shows that it achieved this goal. Jurors would have to make a leap of faith to conclude that the term gained secondary meaning because the record fails to provide meaningful support. A jury could evaluate the quality of the advertising or consider the rise in product sales, but it would have to guess what lasting impression the advertising left in the mind of consumers or what portion of Browne’s revenue growth it caused. We indicated in Commerce National Insurance Services that a plaintiff might establish secondary meaning through 29 evidence of advertising and sales growth. See id. at 438.15 A plaintiff could create a reasonable inference, for example, that a term had gained secondary meaning by showing that it had appeared for a long period of time in a prevalent advertising campaign. Evidence of revenue growth simultaneous with such marketing would strengthen that inference, particularly if supported by evidence of other factors among those we listed in Commerce National. This case, however, differs in an important way from such an example. Browne has introduced no evidence indicating that it ever used “Cocoa Butter Formula” as a standalone term in marketing or packaging. Instead, it always used the term connected with the “Palmer’s,” forming the phrase “Palmer’s Cocoa Butter Formula.” For example, Browne’s lotion bottles bore logos with “Palmer’s” immediately above the words “Cocoa Butter Formula,” creating one visual presentation for the consumer. The marketing and sales evidence thus likely would raise a reasonable inference that “Palmer’s Cocoa Butter Formula” has gained secondary meaning in the minds of the 15 We do not suggest that a party attempting to establish secondary meaning always must show that marketing materials succeeded in creating buyer association or that the term contributed to sales growth. 30 public.16 But Browne wants to do something more complicated: it wants to establish that a portion (“Cocoa Butter Formula”) of the larger term (“Palmer’s Cocoa Butter Formula”) has acquired an independent secondary meaning. Nothing in the record would allow a jury to evaluate the strength of the term “Cocoa Butter Formula” independently from the larger term including “Palmer’s.” We thus conclude, under the specific circumstances presented by this case, that the marketing and sales evidence provided by Browne does not create a reasonable inference that “Cocoa Butter Formula” has acquired secondary meaning. Nor does Browne’s asserted evidence of Cococare’s intent to copy the term “Cocoa Butter Formula” create a genuine issue of material fact as to secondary meaning. This evidence pertains almost exclusively to trade dress (i.e., the overall appearance of labels, wrappers, and containers used in 16 This case does not put that question at issue. The parties do not dispute that Browne has a valid, registered trademark in the term “Palmer’s Cocoa Butter Formula.” Cococare does seek alteration of the principal registration of that term, but only to the extent it includes the term “Cocoa Butter Formula,” which it asserts is generic. 31 packaging a product),17 an issue not presented by this case.18 Browne only identifies one piece of evidence that conceivably suggests an intent to copy. Cococare’s founder testified that he may have known about Browne’s use of “Cocoa Butter Formula” when Cococare began using that term on its own products. But he also testified that he decided to use the word “Formula” because it is a standard descriptor in the cosmetics industry. He never testified that he copied Browne and nothing in the record suggests that he did. Even viewing this evidence in the light most favorable to Browne, we cannot discern how a reasonable jury could conclude that Cococare intended to copy Browne’s use of the term “Cocoa Butter Formula.” Browne could have overcome these deficiencies in its evidence by conducting a secondary meaning survey in the same way it conducted its genericness survey. It could have used survey evidence to show that “Cocoa Butter Formula” had acquired secondary meaning in the minds of consumers, thus creating a genuine issue of material fact on that issue.19 We 17 See generally 1 McCarthy on Trademarks § 8:1 (comparing trade dress and trademarks). 18 Browne apparently dropped a trade dress claim because Cococare presented unrebutted evidence that it adopted the contested trade dress earlier than Browne. 19 Cococare conducted a secondary meaning survey that it argues tends to prove a lack of secondary meaning in the term 32 never have held, and do not hold today, that a party seeking to establish secondary meaning must submit a survey on that point. However, Browne’s failure to conduct a secondary meaning survey leaves it without evidence of any sort in this case of the secondary meaning of the term “Cocoa Butter Formula.” We thus conclude that Browne has failed to identify evidence creating a genuine issue of material fact on the question whether “Cocoa Butter Formula” has acquired secondary meaning. Cococare is entitled to entry of summary judgment on the basis that Browne lacks a protectable trademark interest in the term “Cocoa Butter Formula.” B. Cancellation or Alteration of Registrations and Remaining Arguments Having held “Cocoa Butter Formula” to be generic, the “Cocoa Butter Formula.” That survey does not support Browne’s position. Instead, it arguably provides evidence against Browne and would be used by Cococare to rebut any evidence of secondary meaning offered by Browne. We need not attempt to discern, however, whether Cococare’s survey undercuts any evidence by Browne. That is not our role at the summary judgment stage. Instead, we ask whether Browne has identified sufficient evidence to allow a jury to resolve the secondary meaning question in its favor. We conclude that it has not. Accordingly, we need not consider here any evidence offered in support of Cococare’s position. 33 District Court briefly considered whether (as Cococare requested in a counterclaim) it should require a disclaimer of the “Cocoa Butter Formula” portion of the principal registration of “Palmer’s Cocoa Butter Formula” and cancel the supplemental registration of “Cocoa Butter Formula.” See 15 U.S.C. § 1119. This provision states in relevant part: “In any action involving a registered mark the court may determine the right to registration, order the cancellation of registrations, in whole or in part, restore canceled registrations, and otherwise rectify the register with respect to the registrations of any party to the action.” Id. We have explained that “a controversy as to the validity of or interference with a registered mark must exist before a district court has jurisdiction to grant the cancellation remedy.” Ditri v. Coldwell Banker Residential Affiliates, Inc., 954 F.2d 869, 873 (3d Cir. 1992). A controversy clearly existed as to the validity of the term “Cocoa Butter Formula” and its place on the supplemental register. This raises the question of the need for a disclaimer on the principal register of that portion of the larger mark “Palmer’s Cocoa Butter Formula.” Moreover, Cococare explicitly counterclaimed for modification of that larger mark. These circumstances meet Ditri’s requirement that “a controversy as to the validity of or interference with a registered mark must exist.” 20 20 Since this case falls squarely within Ditri’s requirements, we need not define the exact contours of “controvers[ies] as to the validity of or interference with a registered mark.” For example, we do not decide whether, in the absence of an 34 The District Court declined to order relief under § 1119, however. It apparently believed that a disclaimer of “Cocoa Butter Formula” on the principal registration of “Palmer’s Cocoa Butter Formula” would not benefit Cococare. See generally 15 U.S.C. § 1119; 3 McCarthy on Trademarks § 19:63 (explaining effect of a disclaimer). Yet, even if Cococare will not benefit from that disclaimer, we should not allow the absence of a disclaimer on the principal register to confuse a future business into believing that it may not use the term “Cocoa Butter Formula.” Cf. Berner, 987 F.2d at 979. As such, on remand the District Court should order that an appropriate disclaimer should be entered on the principal register. The treatment of the supplemental registration is more complicated since a descriptive term lacking secondary meaning may not appear on the principal register, but may appear on the supplemental register. See, e.g., In re Bush Bros. & Co., 884 F.2d 569, 570 (Fed. Cir. 1989). The District Court should not enter any order regarding the supplemental registration unless for some reason Cococare proceeds to trial on its counterclaim and prevails on the issue of the genericness of the term “Cocoa Butter Formula.” If Cococare does prove “Cocoa Butter Formula” to be generic, the District Court then could order the appropriate counterclaim, a District Court may order the addition of a disclaimer to a term (e.g., “Palmer’s Cocoa Butter Formula”), including a portion found to be generic (e.g., “Cocoa Butter Formula”). 35 removal of that term from the supplemental register. Cococare argues that Browne’s trademark claim must fail because of Browne’s failure to assert its rights in the term “Cocoa Butter Formula” in a timely fashion and, because of alleged misrepresentations to the PTO, Browne has “unclean hands.” Cococare also argues that it should receive summary judgment on its affirmative defense that its use of the term “Cocoa Butter Formula” constitutes fair use. We need not reach these arguments in light of our conclusion that Browne does not have a protectable trademark right in the term “Cocoa Butter Formula.”