Precedential No. 25: TTAB Awards Priority to Opposer over Its Employee, Sustains Opposition to DISTRICT OF FASHION Mark

In a highly fact-dependent, yet precedential, decision, the Board sustained this opposition to registration of the mark DISTRICT OF FASHION for fashion show exhibitions, finding that Opposer "BID" had priority of use of the mark DOWNTOWNDC DISTRICT OF FASHON for the same services, and that any use of the latter mark by Applicant Clarke prior to her application filing date occurred as an employee of BID and therefore inured to BID's benefit. The Board then found confusion likely between the two marks. DowntownDC Business Improvement District v. Roquois Y. Clarke, Opposition No. 91275100 (October 8, 2024) [precedential] (Opinion by Judge Cheryl S. Goodman).

Applicant Clarke was hired by Opposer BID as a "Digital Content and Design Assistant." Because of her fashion industry experience, she was assigned to three fashion show events in 2018 and 2019, for which BID expended "significant resources." In 2021, Clarke's position was eliminated and she was let go. In May 2021, Clarke filed the subject intent-to-use application to register the mark DISTRICT OF FASHION.

Clarke admitted that she created the mark DISTRICT OF FASHION "during the temporal period she was employed by Opposer," but claimed that she worked on the project during off-hours, created the DISTRICT OF FASHION "brand identity" so as to allow any entity to sponsor the fashion show.

Both parties relied on the same use of the mark DOWNTOWNDC DISTRICT OF FASHION as the basis of their priority claims. Clarke admitted that she never used that mark apart from BID's use for the 2018 and 2019 fashion shows. However, she argued that she created the mark outside of the scope of her employment, that the mark was not assigned to BDI, and that any use by BDI was by implied license and inured to her benefit. In sum:

[R]esolution of the priority issue depends on what the record reveals as to whether the DOWNTOWNDC DISTRICT OF FASHION name and services were developed in the course of Applicant’s employment, outside the scope of her employment, and/or whether there was an implied license between Applicant and Opposer with the benefit of Opposer’s use of DOWNTOWNDC DISTRICT OF FASHION inuring to Applicant’s benefit.

The Board found that BDI assigned the fashion work to Clarke and had control over the work performed. BDI regularly approved tasks and expenses for the events. There was "no question that Applicant's work on promoting and producing the fashion shows was as Opposer's employee." The Board declined to give "great weight to the fact that some of the work was performed after hours since, inter alia, Clarke was "tasked as a dedicated staff member" and received bonuses for her efforts on the fashion shows. The Board concluded that Clarke "performed the fashion show work within the scope of her employment."

Under such circumstances, there is a prima facie presumption that any use of DOWNTOWNDC DISTRICT OF FASHION “during this period …. was done so [by Applicant] as a representative or an agent of opposer, on behalf of opposer, and in furtherance of opposer’s business; and any goodwill created by such use inured to opposer’s benefit.” Scranton Plastic Laminating, 1975 TTAB LEXIS 85, at *26-27.

It was then Clarke's burden to overcome this presumption "by presenting competent and convincing proof that opposer's activities were as a licensee under applicant's control and supervision." The evidence showed that Clarke was BDI's representative and acted at the direction of BDI. "Opposer, not applicant, stood behind the services offered under the mark DOWNTOWNDC DISTRICT OF FASHION." The Board concluded that "the parties’ objective intentions and expectations, as evidenced by Applicant’s and Opposer’s conduct, do not reflect an implied license but that Opposer owned the DOWNTOWNDC DISTRICT OF FASHION mark."

Since the uses of the mark in 2018 and 2019 inured to the benefit of BDI, and since Clarke may rely only on her 2021 filing date as her (constructive) first use date, Opposer BDI has priority for the DOWNTOWNDC DISTRICT OF FASHION mark.

Turning to the issue of likelihood of confusion, the Board wasted no time in sustaining BDI's Section 2(d) claim.

Because DISTRICT OF FASHION forms a significant portion of Opposer’s mark and DISTRICT OF FASHION is the entirety of Applicant’s mark, we find the marks as a whole are similar in appearance, sound, connotation and commercial impression. The additional wording DOWNTOWNDC in Opposer’s mark does not significantly alter the commercial impression, as purchasers will likely take DOWNTOWNDC as simply identifying the location of the services or their connection to the District of Columbia. Consumers thus are likely to view the two marks as variations of each other, but pointing to a single source.

Because the parties' services overlap, the second DuPont factor "weighs heavily" in favor of a finding of likelihood of confusion. Likewise, the channels of trade and classes of consumers overlap, and so the third factor also weighs in favor of finding a likelihood of confusion.

All of the DuPont factors for which there is evidence in the record—the similarity of the marks, the in-part identical nature of the services, the trade channels and classes of consumers—favor likelihood of confusion. In re Charger Ventures LLC, 64 F.4th 1375, 1381 (Fed. Cir. 2023). We therefore conclude that confusion is likely.

Read comments and post your comment here.

TTABlogger comment: A fifty-page opinion reaching the inevitable result. Why precedential?

Text Copyright John L. Welch 2024.