Opinion

Barrco Consumer Products Inc. v. Bajaj

Court
District Court, M.D. Florida
Filed
Oct 23, 2024
Cited by
0 cases
Authority
More cited than 31.3%

The opinion

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF FLORIDA

TAMPA DIVISION

BARRCO CONSUMER PRODUCTS INC.,

Plaintiff,

v. Case No. 8:23-cv-1180-TPB-TGW

RAMAN BAJAJ,

Defendant.

/

ORDER DENYING CROSS-MOTIONS FOR SUMMARY JUDGMENT

This matter is before the Court on cross-motions for partial summary judgment.

On September 8, 2024, Plaintiff Barrco Consumer Products Inc. filed a motion for

partial summary judgment as to Counts I through VI of the complaint.1 (Doc. 96). On

September 9, 2024, Defendant Raman Bajaj filed his own motion for summary

judgment as to Counts I through VIII of the complaint, and on the issues of priority

and likelihood of confusion. (Doc. 99). The parties filed responses in opposition (Docs.

105; 106) and replies (Docs. 107; 109). Upon review of the motions, responses, replies,

record, and court file, the Court finds as follows:

Background

This case arises from a trademark dispute involving the marks FUNATIK and

FUNATIC. Defendant Raman Bajaj started selling t-shirts at flea markets in New

York in the late 1980’s or early 1990’s for which he registered a series of trademarks,

1 In the event the Court grants Plaintiff’s motion and invalidate the trademarks, the motion

also seeks summary judgment on Defendant’s counterclaims.

including Funatik, Sports Funatik, Fitness Funatik, GoldFunatik, Football Funatik,

and Baseball Funatik. These registrations lapsed, but some were subsequently

refiled. Relevant here, Defendant is the owner of U.S. Registration No. 3,611,733 for

the standard character mark FUNATIK in connection with shirts and t-shirts, and

U.S. Registration No. 4,969,987 for the standard character mark FUNATIC in

connection with shirts, sweatshirt, and t-shirts.2

On June 20, 2016, Plaintiff Barrco Consumer Products began using the mark

FUNATIC to market socks, and it filed an application for federal registration of the

mark on June 28, 2016. The application was allowed to lapse. On March 1, 2018,

Plaintiff filed another application for registration of the mark FUNATIC for socks.

This application was granted on October 1, 2018. On November 29, 2018, Plaintiff

filed an application to register the mark FUNATIC for use in connection with shirts, t-

shirts, sweatshirts, and other apparel. On March 7, 2019, the United States Patent

and Trademark Office (“USPTO”) refused the application based on a likelihood of

confusion with Defendant’s marks.

Subsequently, on April 9, 2019, Plaintiff filed petitions to cancel the first

registration based on fraud, the second registration on the ground that Defendant

failed to make bona fide use of FUNATIC prior to the expiration of the time to file a

statement of use, and both of the registrations on the ground of abandonment,. The

Trademark Trial and Appeal Board “(“TTAB” or “Board”) consolidated the two

2 FUNATIK was registered on April 28, 2009, based on a claim of use in commerce. FUNATIC

was registered on May 31, 2016, based on a claim of use in commerce.

cancellation proceedings and ultimately denied both petitions to cancel. Plaintiff filed

a motion for reconsideration, which was likewise denied.

This appeal followed, and Plaintiff seeks de novo review of the Board’s decisions.

Plaintiff asserts the following causes of action: review of TTAB final decision (Count I),

cancellation of Defendant’s first registration for abandonment (Count II), cancellation

of Defendant’s first registration for fraud on the USPTO (Count III), cancellation of

Defendant’s second registration for abandonment (Count IV), cancellation of

Defendant’s second registration for fraud on the USPTO (Count V), cancellation of

Defendant’s second registration on ground of no bona fide use (Count VI), damages for

fraudulent registration of Funatik pursuant to 15 U.S.C. § 1120 (Count VII), and

damages for false or fraudulent registration of Funatic pursuant to 15 U.S.C. § 1120

(Count VIII). Defendant has filed counterclaims for federal trademark infringement

(Count I), federal unfair competition (Count II), false designation of origin (Count III),

Florida trademark infringement (Count IV), and cancellation of U.S. registration No.

5,579,859 (Count V).

Legal Standard

Summary judgment is appropriate “if the movant shows that there is no

genuine dispute as to any material fact and the movant is entitled to judgment as a

matter of law.” Fed. R. Civ. P. 56(a). A properly supported motion for summary

judgment is only defeated by the existence of a genuine issue of material fact.

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986).

The moving party bears the initial burden of showing that there are no genuine

issues of material fact. Hickson Corp. v. N. Crossarm Co., 357 F.3d 1256, 1260 (11th

Cir. 2004). When the moving party has discharged its burden, the nonmoving party

must then designate specific facts showing the existence of genuine issues of material

fact. Jeffery v. Sarasota White Sox, Inc., 64 F.3d 590, 593-94 (11th Cir. 1995). If there

is a conflict between the parties’ allegations or evidence, the nonmoving party’s

evidence is presumed to be true and all reasonable inferences must be drawn in the

nonmoving party’s favor. Shotz v. City of Plantation, 344 F.3d 1161, 1164 (11th Cir.

2003).

The standard for cross-motions for summary judgment is not different from the

standard applied when only one party moves for summary judgment. Am. Bankers

Ins. Grp. v. United States, 408 F.3d 1328, 1331 (11th Cir. 2005). The Court must

consider each motion separately, resolving all reasonable inferences against the party

whose motion is under consideration. Id. “Cross-motions for summary judgment will

not, in themselves, warrant the court in granting summary judgment unless one of the

parties is entitled to judgment as a matter of law on facts that are not genuinely

disputed.” United States v. Oakley, 744 F.2d 1553, 1555 (11th Cir. 1984) (quoting

Bricklayers Int’l Union, Local 15 v. Stuart Plastering Co., 512 F.2d 1017 (5th Cir.

1975)).

Analysis

Plaintiff argues that it is entitled to summary judgment on Counts I, III, V, and

VI in their entirety because Defendant perpetrated fraud on the USPTO, thereby

invalidating the registrations. Specifically, Plaintiff claims that Defendant

perpetrated fraud on the USPTO by lying about whether and when he became

incapacitated by a musculoskeletal condition that prevented him from working, which

the USPTO relied upon when granting the renewal of his two registrations. Plaintiff

additionally argues that it is entitled to summary judgment as to Counts I, II, and VI

because Defendant has failed to use or has at best made de minimis use of the

trademarks over the last two decades. Plaintiff points to several perceived oversights

and errors made by the TTAB when urging the Court to reverse the TTAB’s decisions

and invalidate Defendant’s trademarks.

Defendant argues that he is entitled to summary judgment on Counts I through

VIII of the complaint because the facts and evidence support the original findings of

the TTAB and demonstrate that Defendant has always made bona fide use of the

marks and did not commit fraud upon the USPTO. He also argues that he is entitled

to summary judgment on the issues of priority and likelihood of confusion.

It appears that the primary issue for the Court to resolve, which the parties

discuss at length in their respective motions and responses, is whether Defendant

committed fraud on the USPTO. “Fraud occurs when an applicant knowingly makes

false, material misrepresentations of fact in connection with an application for a

registered mark.” Angel Flight of Ga., Inc. v. Angel Flight Am., Inc., 522 F.3d 1200,

1209 (11th Cir. 2008). As the party seeking to cancel the mark, Plaintiff bears the

burden of proving the alleged fraud by clear and convincing evidence. Id. Plaintiff

attempts to do so by pointing to inconsistencies in Defendant’s record statements

concerning his medical condition. However, Defendant vigorously disputes the facts

underlying Plaintiff’s fraud allegations and has addressed Plaintiff’s arguments in his

response. These types of disputes about fraud, which requires clear and convincing

evidence, raise genuine issues of material fact and preclude summary judgment. See

Shenzhen Kinwong Electronic Co., Ltd. v. Kukreja, 574 F. Supp. 3d 1191, 1244 (6.D.

Fla. Dec. 9, 2021). To be clear, whether Defendant actually made any false

representations, whether he knowingly made any false representations, and whether

he had the intent to deceive the USPTO are key matters that cannot be resolved at

summary judgment. The best course is to reserve these and other issues for the fact-

finder, who will be able to make credibility determinations at trial.?

Accordingly, it is

ORDERED, ADJUDGED, and DECREED:

1. “Plaintiff's Motion and Memorandum of Law in Support of Partial Summary

Judgment as to Counts I Through VI of the Complaint” (Doc. 96) is hereby

DENIED.

2. “Defendant’s Motion for Partial Summary Judgment” (Doc. 99) is DENIED.

DONE and ORDERED in Chambers, in Tampa, Florida, this 23rd day of

October, 2024.

AP. GA.

TOMBARBER = ssi—its—sS—

UNITED STATES DISTRICT JUDGE

The Court notes that this case has been set for a bench trial in December 2024. See (Docs.

31; 110). As with the fraud allegations, it appears best to address Defendant’s bona fide or de

minimis usage of the marks at the bench trial.

Page 6 of 6

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