TTAB Cancels Registration Finding Company's Internal Use Was Not Use In Commerce | Practical Law

TTAB Cancels Registration Finding Company's Internal Use Was Not Use In Commerce | Practical Law

In City National Bank v. OPGI Management GP Inc., the USPTO Trademark Trial and Appeal Board (TTAB) granted a petition to cancel a registration for the mark TREASURYNET for financial information services on the ground of abandonment, finding that the registrant's internal use of the mark for its own benefit was not a use in commerce.  

TTAB Cancels Registration Finding Company's Internal Use Was Not Use In Commerce

Practical Law Legal Update 1-526-8205 (Approx. 3 pages)

TTAB Cancels Registration Finding Company's Internal Use Was Not Use In Commerce

by PLC Intellectual Property & Technology
Published on 30 Apr 2013USA (National/Federal)
In City National Bank v. OPGI Management GP Inc., the USPTO Trademark Trial and Appeal Board (TTAB) granted a petition to cancel a registration for the mark TREASURYNET for financial information services on the ground of abandonment, finding that the registrant's internal use of the mark for its own benefit was not a use in commerce.

Key Litigated Issue

The key litigated issue before the Trademark Trial and Appeal Board (TTAB) was whether the respondent OPGI Management GP Inc.'s registration should be cancelled based on abandonment because the mark was not used in commerce as required for federal trademark protection.

Background

The petitioner City National Bank petitioned to cancel the registration of respondent OPGI Management GP Inc. for the mark TREASURYNET for financial information services.
As grounds for cancellation, the petitioner asserted that OPGI:
  • Lacked intent to use the mark in commerce.
  • Had abandoned the registered mark because it had not used the mark in commerce since its registration.

Outcome

In its April 26, 2013 precedential decision in City National Bank v. OPGI Management GP Inc., the TTAB granted the petition to cancel the TREASURYNET service mark registration.
The TTAB found that the respondent had only used the mark internally for an informational database available through an intranet website, which was only accessible to the respondent's employees and not for use by third parties. Further, the respondent did not advertise under the TREASURYNET mark.
Based on these facts, the TTAB found that the respondent had not demonstrated that it had used TREASURYNET in commerce within the meaning of Section 45 of the Lanham Act (15 U.S.C. § 1127), since at least February 20, 2007, the date its registration was issued. The respondent therefore could not overcome the Lanham Act's presumption of abandonment after three consecutive years of nonuse. The TTAB noted that nearly all authorities that have addressed the issue of whether an entity's internal use constitutes use in commerce have acknowledged that the primary beneficiary of any services proved under the mark should be individuals or entities other than the party rendering the services.

Practical Implications

Parties seeking to show use of a service mark for federal trademark protection should note that use is not likely to be sufficient where:
  • The mark is only used internally.
  • The entity remains the primary beneficiary of any services provided under the mark.
  • Third parties and those outside of the entity are unaware of the mark.