Zheng Cai v. Diamond Hong, Inc.
901 F.3d 1367
| Fed. Cir. | 2018Background
- Diamond Hong, Inc. petitioned the TTAB to cancel Zheng Cai’s (doing business as Tai Chi Green Tea Inc.) federal registration for the mark “WU DANG TAI CHI GREEN TEA,” asserting a likelihood of confusion with its registered mark “TAI CHI.”
- The TTAB found Diamond Hong had standing and priority (unchallenged on appeal) and concluded there was a likelihood of confusion, cancelling Cai’s mark.
- The TTAB refused to consider factual materials and figures in Cai’s opening and reply briefs as evidence, treating those submissions as non‑evidentiary under the TBMP and applicable USPTO rules.
- Cai appealed, arguing the TTAB abused its discretion by excluding his submitted evidence and that the TTAB erred in its DuPont likelihood‑of‑confusion analysis.
- The Federal Circuit reviewed the evidentiary ruling for abuse of discretion and the likelihood‑of‑confusion legal conclusion de novo (with factual findings for substantial evidence).
- The court affirmed: (1) the TTAB did not abuse its discretion in excluding materials not properly entered into the record or submitted in an unauthorized reply brief; and (2) substantial evidence supported the TTAB’s DuPont factor findings (identical/overlapping goods, presumed shared trade channels, and similar marks invoking a yin‑yang device and the term “Tai Chi”).
Issues
| Issue | Plaintiff's Argument (Diamond Hong) | Defendant's Argument (Cai) | Held |
|---|---|---|---|
| Whether the TTAB abused its discretion by excluding factual materials in Cai’s briefs | TBMP and practice rules allow the TTAB to decline consideration of materials not in the trial record; exclusion appropriate | TTAB improperly excluded evidentiary materials attached to his main and reply briefs | No abuse of discretion; TBMP and rules permit treating briefs’ assertions/figures as non‑evidence and striking or ignoring unauthorized reply briefs |
| Whether the TTAB erred in finding likelihood of confusion under 15 U.S.C. § 1052(d) | Marks and trade channels are similar; cancellation justified (plaintiff sought cancellation) | Marks not sufficiently similar; proffered evidence (mostly excluded) would rebut confusion | Affirmed: substantial evidence supports TTAB on DuPont factors—identical/overlapping goods, presumed common channels, and similar commercial impressions of the marks |
Key Cases Cited
- Coach Servs., Inc. v. Triumph Learning LLC, 668 F.3d 1356 (Fed. Cir.) (standard for reviewing TTAB evidentiary rulings and comparison of marks’ commercial impression)
- In re Viterra Inc., 671 F.3d 1358 (Fed. Cir.) (presumption that identical goods travel in same channels; degree of similarity needed declines for identical goods)
- Stone Lion Capital Partners, L.P. v. Lion Capital LLP, 746 F.3d 1317 (Fed. Cir.) (standard for substantial evidence review and that likelihood of confusion is a legal conclusion based on factual DuPont findings)
- Application of E.I. DuPont DeNemours & Co., 476 F.2d 1357 (C.C.P.A.) (articulating the 13 DuPont factors for likelihood of confusion)
- Enzo Biochem, Inc. v. Gen‑Probe Inc., 424 F.3d 1276 (Fed. Cir.) (attorney argument is not a substitute for evidence)
- In re N.C. Lottery, 866 F.3d 1363 (Fed. Cir.) (review framework: de novo review of legal conclusions and substantial evidence for factual findings)
