Second Circuit Vacates Peju Summary Judgment: Lower Court Misapplied Issue Preclusion and Misread B&B Hardware
A mere three weeks after hearing oral argument, the U.S. Court of Appeals for the Second Circuit vacated and remanded the July 12, 2024 judgment of the district court in Cesari S.R.L. v. Peju Province Winery L.P., Civil Action No. 17 Civ. 873 (NRB) (S.D.N.Y. Dec. 11, 2017) [pdf here], in which the court granted Plaintiff Cesari's motion for partial summary judgment on its trademark infringement claim, ruling that preclusion applied to the issue of likelihood of confusion based on a 2004 TTAB decision. The Second Circuit's non-precedential order may be downloaded here.
In the TTAB opposition, Cesari contended that Peju’s LIANA mark was likely to cause confusion with its LIANO mark. The TTAB conducted its Section 2(d) analysis exclusively “on the basis of the identification of goods set forth in [Peju’s] application,” without considering “the particular nature of [Peju’s] goods, the particular channels of trade[,] or the class of purchasers to which the sales of goods are directed.”
Ten years later, Cesari sued Peju for trademark infringement, and then moved for partial summary judgment on the issue of whether Peju was precluded from relitigating the “likelihood of confusion” element of the trademark-infringement claim. The district court granted the motion, ruling that Peju was “precluded from relitigating the likelihood of confusion between the parties’ marks” – an element of Cesari’s trademark infringement claim – because the TTAB’s 2004 trademark registration decision had settled the matter once and for all."
The Second Circuit, however, found that "the TTAB decision – on its face – did not consider the parties’ 'actual usage in the marketplace.'" "Importantly, the TTAB never considered the merits of Peju’s principal defense to Cesari’s infringement claim: “that its wine [wa]s distinguishable [from Cesari’s] because it is a dessert wine” and therefore not likely to confuse consumers.
Therefore, because the issues before the TTAB and the district court were not the same, the district court should not have given preclusive effect to the TTAB’s ruling on the likelihood of confusion.
Read comments and post your comment here.
TTABlogger comment: TTABlog hat tip to Joel MacMull (who argued the case) and Marty Schwimmer. If you listened to the oral argument, you are not surprised by the swiftness of this ruling.
Text Copyright John L. Welch 2026.



















