Spirits International B.V. (formerly Spirits International N.V.) (“Spirits”), appeals a decision of the Trademark Trial and Appeal Board (“Board”). The Board affirmed a decision by an examining attorney at the U.S. Patent and Trademark Office (“PTO”) refusing to register Spirits’ mark — MOSKOVSKAYA—for vodka.
In
re
Spirits Int’l N.V.,
BACKGROUND
Spirits filed an application for use of the mark MOSKOVSKAYA for vodka on April
Applying the doctrine of foreign equivalents (discussed below), the examining attorney translated the mark from Russian and found that the primary significance of the mark thus translated was “of or from Moscow.” The examining attorney then found that Moscow was a generally known geographic location and that the public would likely believe the goods were from Moscow because there was a goods/place association between vodka and Moscow. Finally, the examining attorney found that this belief would likely be material to consumers because Russian vodka is highly regarded.
On September 1, 2006, Spirits filed a response and motion for reconsideration. Spirits contended that the rejection was inappropriate. In that connection it relied on a mall-intercept survey sponsored by Spirits. On Nоvember 2, 2006, the examining attorney denied the motion for reconsideration. Spirits sought review by the Board, and on February 11, 2008, the Board affirmed.
The Board analyzed the mark under 15 U.S.C. § 1052(e)(3), which prohibits the registration of marks that are primarily geographically deceptively misdescriptive of the goods. Citing our decision
In re California Innovations, Inc.,
(1) the mark’s primary significance is a generally known geographic location; (2) the relevant public would be likely to believe that the goods originate in the place named in the mark (i.e., that a goods/place association exists) when in fact the goods do not come from that place; and (3) the misrepresentation is a mаterial factor in the consumer’s decision.
Spirits,
The Board also found that Moscow is reputed for high quality vodka, and thus that the public would likely be materially influenced by the mark in the purchasing decision.
Id.
In analyzing the materiality element, the Board stated that “an appreciable number of consumers for the goods or services at issue” must be deceived.
Id.
at 1085. But the Board concluded that “it is never necessary to show that all, or even
The Boаrd concluded that there is a “presum[ption] that a word in one of the common, modern languages of the world will be spoken or understood by an appreciable number of U.S. consumers for the product or service at issue.” Id. at 1085. The Board also took judicial notice of the fact that, according to the 2000 U.S. Census, Russian is spoken by 706,000 people in the United States. Id. The Board then appears to have found that 706,000 people is an “appreciable number” in an absolute sense. The Board fоund that “[a]t least one significant group of ‘ordinary American purchasers’ is the purchaser who is knowledgeable in English as well as the pertinent foreign language.” Id. The Board therefore concluded that this established a prima facie showing of deception under subsection (e)(3). Id. at 1086.
The Board then discussed the survey offered by the applicant, and found that it did not rebut this prima facie showing. The Board found that the survey was “not persuasive or probative of any issue in this case” for a variety of reasons, but prinсipally because it did not include Russian speakers. Id. at 1088. As a result, the Board affirmed the decision of the examining attorney. Spirits timely appealed to this court, and we have jurisdiction pursuant to 15 U.S.C. § 1071.
DISCUSSION
One aspect of the doctrine of foreign equivalents generally requires considering the meaning of a mark in a non-English language to the speakers of that language. As we stated in
Palm Bay,
“[ujnder the doctrine of foreign equivalents, foreign words from common languages are translated into English.... ”
Palm Bay Imps., Inc. v. Veuve Clicquot Ponsardin Maison Fondee en 1772,
Under the “doctrine of foreign equivalents,” foreign words are translated into English.... However, the “doctrine of foreign equivalents” is not an absolute rule, for it does not mean that words from dead or obscure languages are to be literally translated into English fоr descriptive purposes.
2 J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition § 11:34 (4th ed.2009) (hereinafter “McCarthy”) (footnotes omitted). The parties do not dispute this general requirement of translation under the doctrine of foreign equivalents. Nor do we.
We also note that there is a threshold limitation on the application of the doctrine of foreign equivalents, as discussed in
Palm Bay,
Although words from modem languages are generally translated into English, the doctrine of foreign equivalents is notan absolute rule and should be viewed merely as a guideline. The doctrine should be applied, only when it is likely that the ordinary American purchaser would stop and translate the word into its English equivalent.
Id. (emphases added, citations, quotation marks, and alteration omitted). The “ordinary American purchaser” is not limited to only those consumers unfamiliar with non-English languages; rather, the term includes all American purchasers, including those proficient in a non-English language who would ordinarily be expected to translate words into English.
As
Palm Bay
makes clear, there are situations in which the doctrine does not require translation even with respect to foreign language speakers. The ordinary American consumer would not translate VEUVE CLICQUOT because its literal translation would be irrelevant to even those ordinary American consumers who speak French.
Palm Bay,
[TJliere are foreign expressions that even those familiar with the language will not translate, accepting the term, as it is, and situations arise in the marketplace which make it unfeasible or even unlikely that purchasers will translate the brand names or labels appearing on canned foods and other like products.
That is not, however, the end of the inquiry. Once the word or phrase is translated, its impact must be “mаterial” under subsection (e)(3). The question here is the scope of the materiality requirement.
I
We begin with a brief description of the history of subsection (e)(3). As discussed at length in
California Innovations,
[The PTO shall not register a mark that] when used on or in connection with the goods of the apрlicant is primarily geographically descriptive or deceptively misdescriptive of them.
15 U.S.C. § 1052(e)(2) (1988);
see Cal. Innovations,
The NAFTA Act made two relevant changes to the law. First, the
Before the NAFTA Act, it was “quite easy for the PTO to deny registration on the principal register to geographically deceptively misdescriptive marks under § 1052(e)(2).”
Cal. Innovations,
In contrast to this pre-existing approach under subsection (e)(2), “the PTO required a much more demanding finding to reject for geographical deception under § 1052(a),” which barred and continues to bar “immoral, deceptive, or scandalous” marks.
Cal. Innovations,
The “addition of a matеriality inquiry [to subsection (e)(3) ] equates this test with the elevated standard applied under § 1052(a).” Id. at 1340. Since the NAFTA Act, the deceptiveness of the mark must be material under subsection (e)(3) just as it is under subsection (a).
However, California Innovations did not address the question of whether the materiality test of subsection (e)(3) embodies a requirement that a significant portion of the relevant consumers be deceived. We hold that subsection (e)(3) does incorporate such a requirement, and that the appropriate inquiry for materiality purposes is whether a substantial portion of the relevant consumers is likely to be deceived, not whether any absolute number or particular segment of the relevant consumers (such as foreign language speakers) is likely to be deceived.
In interpreting the materiality requirement of 15 U.S.C. § 1052(e)(3), it is appropriate to look to the history of subsection (a), which includes the same materiality
As the legislative history of the Lanham Act makes clear, subsection (a) was designed to codify common law standards for trademark infringement in the context of the registrability of trademarks under federal law. Although the Lanham Act departed from the common law in certain respects,
2
the prohibition in § 1052(a) of deceptive marks was not a departure from the prior common law. The Lanham Act was designed to codify, not change, the common law in this area by prohibiting the registration of deceptive marks that were unenforceable at common law. The Supreme Court has recognized the appropriateness of construing the Lanham Act provisions dealing with federal trademark registration together with provisions codifying the law concerning the infringement of common law trademarks.
See Wal-Mart Stores, Inc. v. Samara Bros.,
We thus must examine the common law to determine the scope of subsection (a). Before the Lanham Act, deceptive common law trademarks were unenforceable. This fell under the rubric of the doctrine of “unclean hands,” an equitable defense under the common law.
Worden & Co. v. Cal. Fig Syrup Co.,
The same common law requirement continues to this day. For example, the Restatement (Third) of Unfair Competition § 32 cmt. b discusses unclean hands and states that “a designation used as a trademark [that] ... misdescribes the goods ... in a manner likely to influence the purchasing decisions of a significant number of prospective purchasers ... is deceptive” (emphasis added). See also id. § 14 cmt. c.
A similar requirement applies in the analogous area of deceptive advertising under section 43(a) of the Lanham Act, 3 a provision which also covers the infringement of common law marks. The common law of false advertising requires deception of a significant portion of the audience. Again, the Restatement concludes:
In many instances a representation may be likely to deceive or mislead only some of the prospective purchasers to whom it is directed. A person is subjеct to liability under this Section only if the representation is likely to deceive or mislead a significant portion of the audience.
Restatement (Third) of Unfair Competition § 2 cmt. d (emphasis added).
The courts have also recognized a proportionality requirement for materiality in false advertising cases, requiring that a substantial portion of the audience be deceived. In
Johnson & Johnsom-Merck Consumer Pharmaceuticals Co. v. RhonePoulenc Rorer Pharmaceuticals, Inc.,
Though varying linguistic formulations have been used, the wide consensus of the courts of appeals is consistent with the conclusion of the Third Circuit in
Johnson & Johnson-Merck
that the mark or advertising must deceive a substantial portion of the relevant consumers.
See, e.g., Herman Miller, Inc. v. Palazzetti Imps. & Exps., Inc.,
Under the circumstances it is clear that section (e)(3) — like subsection (a), the false advertising provision of the Lanham Act, and the common law — requires that a significant portion of the relevant consuming public be deceived. That population is often the entire U.S. population interested in purchasing the product or service. We note that, in some cases, the use of a non-English language mark can be evidence that the product in question is targeted at the community of those who understand that language. In such cases, the relevant consuming public will be composed of those who are members of that targeted community, and, as a result, people who speak the non-English language could comprise a substantial portion of the relevant consumers.
See
2 McCarthy § 11:35 (discussing
In re New Yorker Cheese Co.,
II
We turn then to this particular case. In this case, аs in every case, in
We express no opinion on the ultimate question of whether a substantial portion of the intended audience would be materially deceived. We note that only 0.25% of the U.S. population speaks Russian. Appellant’s Br. 26. If only one quarter of one percent of the relevant consumers was deceived, this would not be, by any measure, a substantial portion. However, it may be that Russian speakers are a greater percentage of the vodka-consuming public; that some number of non-Russian speakers would understand the mark to suggest that the vodka came from Moscow; and that these groups would together be a substantial portion of the intended audience.
We remand to the Board for a determination of whether there is a prima facie case of material deception under the correct legal test in the first instance. Because of our disposition on the question of the prima facie case, we do not reach the questions raised by the appellant as to the Board’s rejection of the survey as rebutting the prima facie case, though we note that the Board’s holding as to this issue was heavily influenced by its incorrect view of materiality.
VACATED and REMANDED
COSTS
No costs.
Notes
. It should be noted that rejections under both the pre-NAFTA Act (e)(2) and the current (e)(2) are not permanent, but can be overcome upon a showing of acquired distinctiveness/secondary meaning. On the other hand, post-NAFTA Act (e)(3) rеjections are permanent, and so cannot be overcome by acquired distinctiveness.
See Cal. Innovations,
. See Hearing on H.R. 9041 Before the Sub-comm. on Trade-Marlcs of the H. Comm. On Patents, 75th Cong. 71-72 (1938) (statement of Edward S. Rogers, American Bar Association) (describing changes to the interpretations of geographically descriptive marks).
. Section 43(a)(1) provides:
Any person who, on or in connection with any goods or services, or any container for goods, uses in commerce any word, term, name, symbol, or device, or any combination therеof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which—
(A) is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, or
(B) in commercial advertising or promotiоn, misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person's goods, services, or commercial activities, shall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.
15U.S.C. § 1125(a).
.
See also Stiffel Co.
v.
Westwood Lighting Group,
. There are cases applying the doctrine of foreign equivalents somewhat differently in other contexts.
See, e.g., Weiss Noodle Co. v.
