Opinion ID: 443024
Heading Depth: 2
Heading Rank: 2

Heading: Effect of Federal Trademark Registrations

Text: 18 In October 1982, after appeal from the T.T.A.B.'s decision had been taken, but before the court of appeals had announced its decision, EZ was granted federal registrations for some of its trademarks. EZ contends that the registrations confer substantial procedural advantages that it lacked in the previous proceedings, and that it would be unfair to give collateral effect to a decision rendered without the benefit of these registrations. See Restatement (Second) of Judgments Sec. 28(4) (1982) (exception to rule of issue preclusion where party against whom preclusion sought had a significantly greater burden of persuasion in initial action, burden has shifted to adversary, or adversary has significantly greater burden). In order to assess EZ's claim that the registrations lessen significantly its burden of proof on the issue of likelihood of confusion, we must examine what advantages are gained by the grant of a federal trademark registration. 19 By statute, a certificate of registration is prima facie evidence of the validity of the registration, registrant's ownership of the mark, and of registrant's exclusive right to use the mark in commerce in connection with the goods ... specified in the certificate. 15 U.S.C. Sec. 1057(b). 20 Despite EZ's argument that the lack of registration allowed Cox freely to argue that EZ's marks were invalid, the Board accepted the validity of the marks as well as EZ's ownership of the marks and its priority of use. EZ also argues that, because the registrations had not yet issued, Cox was able to argue that its marks were merely descriptive. However, the registration of a trademark does not confer upon that mark a presumption of nondescriptiveness, see Chicago Reader, Inc. v. Metro College Publishing Co., 711 F.2d 801 (7th Cir.1983) (rejecting argument that grant of registration indicates mark not descriptive); Telemed, Inc. v. Tel-Med, Inc., 588 F.2d 213 (7th Cir.1978), at least where the mark has not become incontestable, see Union Carbide Corp. v. Ever-Ready, Inc., 531 F.2d 366 (7th Cir.), cert. denied, 429 U.S. 830, 97 S.Ct. 91, 50 L.Ed.2d 94 (1976). Moreover, while the T.T.A.B. found the word Loader highly suggestive of EZ's products, it also found that the mark EZ Loader has acquired distinctiveness as a source of EZ's trailers. EZ Loader Boat Trailers, Inc., 213 U.S.P.Q. at 600. 21 We do not find that the procedural advantages conferred by registration are substantial, at least in the context of determining the issue of likelihood of confusion. Therefore, we see no inequity in applying collateral effect to the decision of the Court of Appeals for the Federal Circuit.