Common Stockholders, Directors, or Officers

Corporations are not "related companies" within the

meaning of §5 of the Trademark Act,

15 U.S.C.

§1055

, merely because they have the same stockholders,

directors, or officers, or because they occupy the same premises.

Great Seats, Ltd. v. Great Seats,

Inc.

, 84 USPQ2d 1235, 1243

(TTAB 2007) (holding that the fact that both the applicant corporation and

the corporate user of the mark have the same president and controlling

stockholder, and share the same premises, does not make them related companies);

In re Raven Marine,

Inc.

, 217 USPQ 68, 69

(TTAB 1983) (holding statement that both the applicant corporation and the

corporate user of the mark have the same principal stockholder and officer

insufficient to show that the user is a related company).

If an individual applicant is not the sole owner of

the corporation that is using the mark, the question of whether the corporation

is a "related company" depends on whether the applicant maintains control over

the nature and quality of the goods or services such that use of the mark inures

to the applicant’s benefit. A formal written licensing agreement between the

parties is not necessary, nor is its existence sufficient to establish ownership

rights. The critical question is whether the applicant sufficiently controls the

nature and quality of the goods or services with which the mark is used.

See

Pneutek, Inc. v. Scherr,

211 USPQ 824, 833 (TTAB 1981)

(holding that the applicant, an individual, exercised sufficient control over

the nature and quality of the goods sold under the mark by the licensee that the

license agreement vested ownership of the mark in the applicant).

Similarly, where an individual applicant is not the

sole owner of the corporation that is using the mark, the fact that the

individual applicant is a stockholder, director, or officer in the corporation

is insufficient in itself to establish that the corporation is a related

company

goods sold under the mark by the licensee that the

license agreement vested ownership of the mark in the applicant).

Similarly, where an individual applicant is not the

sole owner of the corporation that is using the mark, the fact that the

individual applicant is a stockholder, director, or officer in the corporation

is insufficient in itself to establish that the corporation is a related

company. The question depends on whether the applicant maintains control over

the nature and quality of the goods or services.

See

TMEP

§1201.03(b)

regarding use by wholly owned related

companies.