FREHLING ENTERPRISES, INC., d.b.a. Oggetti, Plaintiff-Appellant, Counter-defendant, versus INTERNATIONAL SELECT GROUP, INC., d.b.a. Bell ‘Oggetti International Ltd., Defendant - Appellee Counter-claimant.
No. 98-4153
IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT
October 18, 1999
D. C. Docket No. 96-1486-CIV-GRAHAM
(October 18, 1999)
Before ANDERSON, Chief Judge, MARCUS, Circuit Judge, and MILLS*, Senior District Judge.
ANDERSON, Chief Judge:
* Honorable Richard H. Mills, Senior U.S. District Judge for the Central District of Illinois, sitting by designation.
I. INTRODUCTION
This is a servicemark infringement case. Plaintiff Frehling Enterprises, Inc. (“Frehling“) claims that its registered “OGGETTI” mark is being infringed upon by Defendant International Select Group, Inc.‘s (“ISG“) “BELL’ OGGETTI” mark. Frehling sells high-end decorative accessories and furniture for the home under its “OGGETTI” mark, and ISG sells ready-to-assemble furniture designed to house electronic equipment in the home under its “BELL’ OGGETTI” mark. The district court held a bench trial and ruled in favor of ISG, finding that there was no likelihood of consumer confusion with respect to the two marks. Frehling appeals, and argues that the district court‘s finding as to the lack of a likelihood of confusion between the two marks was clearly erroneous.
II. STATEMENT OF FACTS
“OGGETTI” means “objects” in Italian. Robert Frehling, president of Frehling Enterprises, began using the mark in connection with his decorative furniture business in 1975. He adopted the name because many of Frehling‘s products were manufactured in Italy. He filed an application to register the mark with the Patent & Trademark Office in 1985. The application was accepted and the mark was accordingly registered as a service mark, thus receiving federal
“BELL’ OGGETTI” means “beautiful objects” in Italian. ISG began using this mark in 1989 in connection with its line of audio-visual furniture. In May 1990, ISG filed an application to register its mark with the Patent & Trademark Office, but was denied because of the perceived confusion that might arise in connection with the earlier-registered “OGGETTI” mark. Upon ISG‘s further application, however, the Office ruled in favor of ISG and permitted registration of the trademark.1 ISG sells ready-to-assemble equipment-containing furniture like
In 1994, ISG procured the toll-free telephone number, “1-800-OGGETTI.” This number was included on the enclosed instruction sheet accompanying the purchased product and detailing how to assemble to the furniture. “BELL’ OGGETTI” and “1-800-OGGETTI” appeared on the instruction sheet.
In 1995, Frehling president Robert Frehling saw an advertisement for BELL’ OGGETTI in a House Beautiful magazine. He called ISG complaining of what he felt was service mark infringement. Shortly thereafter, he sent a demand letter asking ISG to cease using the mark and to cancel its registration. ISG refused, but did stop promoting the “1-800-OGGETTI” toll free phone number. It retained the phone number, but only printed and distributed the numeric toll free number. Frehling then filed suit under the Trademark (Lanham) Act,
III. DISCUSSION
Under the Lanham Act,
- Type of mark
- Similarity of mark
- Similarity of the products the marks represent
- Similarity of the parties’ retail outlets (trade channels) and customers
- Similarity of advertising media
- Defendant‘s intent
- Actual confusion
See Lone Star, 122 F.3d at 1382. Of these, the type of mark and the evidence of actual confusion are the most important. See Dieter, 880 F.2d at 326. The findings as to each factor, and as to the ultimate conclusion regarding whether or not a likelihood of confusion existed, are subject to the clearly erroneous standard of review. See id. at 325.
1. Type of Mark
Classifying the type of mark Plaintiff has determines whether it is strong or weak. See John H. Harland Co. v. Clarke Checks, Inc., 711 F.2d 966, 973 (11th Cir. 1983). The stronger the mark, the greater the scope of protection accorded it,
Also important in gauging the strength of a mark is the degree to which third
Finally, if a mark is “incontestable,” that is, if it has been registered for five years with the Patent & Trademark Office, its holder has filed the affidavit required by
In the instant case, the district court found that Frehling‘s “OGGETTI” mark was suggestive.3 The court found that the mark was adopted to create an Italian connotation (because the products were manufactured in Italy) and that the mark
In particular, the district court did not address the lack of third-party use of Frehling‘s mark in gauging the mark‘s strength. The case law is clear that such lack of third-party use should be considered in assessing the strength of a mark. See, e.g., John H. Harland Co., 711 F.2d at 973-75 (collecting cases standing for the proposition that extent of third-party use is an important factor in determining the distinctiveness and thus the strength of the mark); Sun Banks, 651 F.2d at 613 (same); 2 McCarthy, supra, § 11.88 (same). Where there is a lack of third-party use, the mark‘s strength is enhanced, as it is more distinctive, and therefore more easily recognized by consumers. See Sun Banks, 651 F.2d at 613. The record indicates that the “OGGETTI” mark was not used by third parties, thereby contributing to its distinctiveness and enhancing its strength. Thus, by failing to recognize the lack of third-party use of Frehling‘s mark and by not inserting that
Moreover, the district court failed to consider the fact that Frehling‘s mark is incontestable and therefore constitutes a “relatively strong mark.” See Wilhelm Pudenz, 177 F.3d at 1208; Dieter, 880 F.2d at 329. Like the lack of third-party use, this is a factor that should have contributed to the strength of the mark, but which the district court failed to mention in its discussion of the mark‘s type. In sum, a proper assessment of the “OGGETTI” mark‘s strength reveals that the first factor in the analysis – the type of mark – clearly favors Frehling.
2. Similarity of the Marks
Here, the court compares the marks and considers the overall impressions that the marks create, including the sound, appearance, and manner in which they are used. See John H. Harland Co., 711 F.2d at 975-76. In the instant case, the district court found that although the marks both include the Italian term “OGGETTI,” they are not similar because ISG adduced evidence showing that Frehling often used the words “Tavola Collection” in connection with its “OGGETTI” mark. According to the court, these extra words – “Tavola Collection” – render the marks dissimilar and significantly reduce the likelihood that consumers would confuse “OGGETTI” with “BELL’ OGGETTI.” The court
We are persuaded, however, that the marks are very similar, and that this factor strongly favors Frehling; the district court clearly erred in concluding otherwise. ISG‘s “BELL’ OGGETTI” mark is extremely similar to Frehling‘s “OGGETTI” mark in that the dominant focus in both marks is the Italian term “OGGETTI.” Both parties stylize their marks in like fashion, using all capital letters. “BELL’ OGGETTI” entirely encompasses “OGGETTI” and merely adds a descriptive adjective “BELL‘” meaning “beautiful” to the dominant portion of the mark – the noun “OGGETTI,” meaning objects. Thus, the overall impression the marks create is one of striking similarity – they are strikingly similar in sight, sound, and meaning. Moreover, the manner in which they are used is similar in that both are used in advertising to denote home furnishings. In sum, then, the instant comparison reveals the sort of high degree of similarity between marks that portends a likelihood of consumer confusion. Given this palpable similarity, we hold that the “similarity of marks” factor strongly favors Frehling.
In finding the marks dissimilar, the district court‘s considerable reliance on the fact that Frehling‘s mark often appeared as “Tavola Collection by OGGETTI” is misplaced. The underlying purpose in considering the similarity of marks as an indicator of likelihood of confusion is that the closer the marks are, the more likely
3. Similarity of the Goods
This factor requires a determination as to whether the products are the kind that the public attributes to a single source, not whether or not the purchasing public can readily distinguish between the products of the respective parties. See E. Remy Martin & Co., S.A. v. Shaw-Ross Int‘l Imports, Inc., 756 F.2d 1525, 1530 (11th Cir. 1985). In the instant case, the district court found that the products were not similar, holding that they were not similar in function or design. The court focused on the differences in composition: “BELL’ OGGETTI” furniture was typically made of metal and tempered glass and came in ready-to-assemble form and was meant to house electronic equipment, whereas “OGGETTI” furniture was made of more “exotic” material like wood, marble, stone, or shell veneer, was marketed and designed to appear unique, and was meant mainly for decoration.
The district court noted that it was unpersuaded by Frehling‘s evidence which attempted to show that “OGGETTI” offered custom-made armoires to house television sets, thus serving the same function as “BELL’ OGGETTI” furniture, housing electronic components, because the “OGGETTI” armoires were made of wood, not black metal, and further were not ready-to-assemble, and were more
Although we hesitate to attach a clearly erroneous label to the district court‘s finding that the parties’ products were dissimilar, we are persuaded that the district court improperly weighed this evidence in the overall balance of the likelihood of confusion analysis. In other words, we find that the outcome as to this factor is far closer than the district court indicated and thus does not clearly favor ISG.
In E. Remy Martin, our Court reversed the lower court‘s finding that wine and cognac or brandy were dissimilar “to the drinking world.” 756 F.2d at 1530. For our Court, the test was not whether the goods could be distinguished, as they could be by any drinker, but whether the goods are so related in the minds of consumers that they get the sense that a single producer is likely to put out both goods. See id. Thus, in E. Remy Martin, it was not unreasonable to conclude that a maker of wine could also produce brandy. See id.
Viewing the instant case in this light, a reasonable consumer could possibly attribute the products here to the same source – both products are home furnishings. While the compositional differences matter, they are not dispositive; we focus, rather, on the reasonable belief of the average consumer as to what the
Therefore, although the products are somewhat dissimilar in composition, function, and design, they are similar in that they are both home furnishings sold under a very similar Italian label, and hence it seems possible that a consumer could attribute both products to a single source. While this possibility is perhaps not strong enough to suggest a likelihood of consumer confusion, neither is it so remote as to raise the opposite inference – that a reasonable consumer would likely not be confused. Thus, to the extent that the district court found that this factor favored ISG significantly, we find that the attribution of such weight to this factor in ISG‘s favor was clearly erroneous.
4. Similarity of the Parties’ Retail Outlets (Trade Channels) and Customers
“Dissimilarities between the retail outlets for and the predominant customers of plaintiff‘s and defendant‘s goods lessen the possibility of confusion, mistake, or
As with the similarity of products factor, we find that the district court‘s conclusion with respect to the instant factor, while not clearly erroneous, does not militate heavily in favor of ISG, if at all. We are troubled by the district court‘s methodology of dividing the world up into distinct segments of “affluent” and “less affluent” for the purpose of determining the balance of the instant factor.
5. Similarity of Advertising Media
Evidence was presented below demonstrating that in addition to advertising in electronics publications, ISG advertised in home magazines, like Design Times and House Beautiful. Indeed, at oral argument, ISG conceded that for two years, one-quarter of its advertising was in House Beautiful. Frehling adduced evidence that “OGGETTI” advertises in the same genre of home magazines as “BELL’ OGGETTI,” including Interior Design and Architectural Digest. ISG argued, and the district court accepted, the premise that the parties have never advertised in the same publication and therefore the advertising media used by the parties were not similar.
This argument does not fairly represent the proper legal standard, however. Identity of periodicals is not required; the standard is whether there is likely to be
6. Defendant‘s Intent
If it can be shown that a defendant adopted a plaintiff‘s mark with the intention of deriving a benefit from the plaintiff‘s business reputation, this fact alone may be enough to justify the inference that there is confusing similarity. See John H. Harland Co., 711 F.2d at 977. In the instant case, the district court found that there was no conscious intent to capitalize on Frehling‘s business reputation on the part of the ISG, but that ISG was “intentionally blind” in deciding to adopt the “BELL’ OGGETTI” mark, and accordingly noted that this factor favored
On appeal, Frehling points out that this intentional blindness was manifested by ISG‘s failure to conduct a trademark search before attempting to register its “BELL’ OGGETTI” mark in 1990. In addition, Frehling notes that after ISG‘s request to register the “BELL’ OGGETTI” mark was refused by the Patent & Trademark Office because of the potential likelihood that it may be confused with Frehling‘s earlier-registered “OGGETTI” mark, ISG continued to pursue the use of its “BELL’ OGGETTI” mark, without making any attempt to contact Frehling or to explore the potential likelihood of confusion between the two marks. In other words, ISG clearly had notice as to the strong similarity of the marks and hence was aware that they may be confused and yet continued to use the “BELL’ OGGETTI” mark. Moreover, given this knowledge, Frehling asserts that ISG‘s later adoption of the 1-800-OGGETTI toll free number is particularly indicative of improper intent. Indeed, the 1-800 number constitutes a direct replication of Frehling‘s “OGGETTI” mark. Furthermore, ISG continued to use the 1-800 number despite Frehling‘s repeated objections and contrary to the advice of ISG‘s own counsel. Given the totality of this evidence, we agree with the district court that ISG‘s behavior displays an improper intent through intentional blindness and, given the demonstrated prevalence of this improper intent, we
7. Actual confusion
It is undisputed that evidence of actual confusion is the best evidence of a likelihood of confusion. See John H. Harland Co., 711 F.2d at 978. However, such evidence is not a prerequisite, and thus it is up to individual courts to assess this factor in light of the particular facts of each case. See Amstar, 615 F.2d at 263. The district court found that Frehling had not made a showing of actual confusion.
At trial, the Plaintiff did offer some evidence of actual confusion.4 The principal evidence of actual confusion adduced at trial was Robert Frehling‘s testimony that a professional “BELL’ OGGETTI” buyer, along with his wife, visited an “OGGETTI” showroom in High Point, North Carolina. Apparently, the man mistakenly believed that he was in a “BELL’ OGGETTI” store. He could not understand why the showroom sign said only “OGGETTI” and not “BELL’
On appeal, Frehling characterizes the evidence as much more probative. In support of its argument that this incident embodies compelling evidence of actual confusion, Frehling points out that it is not the number of people actually confused by the marks that is important, but rather the type of person confused. This notion is supported by the case law. See Safeway Stores, 675 F.2d at 1167 (noting that “the people confused are precisely those whose confusion is most significant: a supplier, presumably relatively familiar with an enterprise since he is actually providing it with goods, and a customer, without whom the business would not exist“).
In the instant case, the type of person confused was telling: a professional buyer for “BELL’ OGGETTI,” visiting a company showroom. As noted above, the district court did not mention this point, but instead seemed to discount the entire incident as constituting vague and, hence, unpersuasive evidence. The court, however, did not expressly make a finding that Frehling‘s testimony was not credible, and the fact that Frehling could not remember the buyer‘s name does not seem significant enough that it would strip the testimony of all its credibility and
Evaluating the overall balance of the seven above factors, we hold that Frehling demonstrated a likelihood that its senior “OGGETTI” mark would be confused with ISG‘s junior “BELL’ OGGETTI” mark. We hold that the district court‘s conclusion to the contrary, that there was no likelihood of confusion, was clearly erroneous. In so holding, we conclude that factors one, strength of the mark, two,
IV. CONCLUSION
For the foregoing reasons, we reverse the judgment of the district court and remand the case for further proceedings consistent with this opinion.
REVERSED AND REMANDED.
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Notes
We also note that ISG argued at trial that Frehling had not proffered any survey evidence demonstrating actual confusion and therefore a presumption against such confusion should apply. This Circuit, however, has moved away from relying on survey evidence. See Safeway Stores, 675 F.2d at 1167 n.10. Thus, the failure to adduce such evidence is not damaging to the Plaintiff‘s case. The district court correctly held that the lack of survey evidence was not dispositive.
