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Crash Dummy Movie, LLC v. Mattel, Inc., 601 F.3d 1387, 94 U.S.P.Q.2d 1315, 81 Fed. R. Evid. Serv. 1261

Facts

The case involves a dispute between The Crash Dummy Movie, LLC (CDM) and Mattel, Inc. regarding the trademark CRASH DUMMIES. CDM sought to register the mark for games and playthings, but Mattel opposed the application, claiming priority based on its prior use and registration of the mark. Mattel's predecessor, Tyco Industries, had registered the marks in the early 1990s and sold toys under them until the late 1990s. After a period of nonuse, Mattel argued that it had not abandoned the marks and intended to resume use.

Issue

Did Mattel overcome the statutory presumption of abandonment of its CRASH DUMMIES trademarks?

Did Mattel overcome the statutory presumption of abandonment of its CRASH DUMMIES trademarks?

Rule

Abandonment of a trademark is a factual question reviewed for substantial evidence. Nonuse for three consecutive years is prima facie evidence of abandonment, shifting the burden to the trademark owner to show intent to resume use. The court considers evidence beyond the three-year period to infer intent.

Analysis

The court found substantial evidence supporting the Trademark Trial and Appeal Board's conclusion that Mattel intended to resume use of the CRASH DUMMIES marks. Evidence included discussions with retailers about exclusive sales, the recording of Tyco's trademark assignment, and ongoing product development efforts. The Board's decision was supported by the testimony of Mattel's marketing manager and internal documents detailing the timeline of product development.

Substantial evidence supports the Board's finding that Mattel intended to resume use of the CRASH DUMMIES marks during the contested time period. First, in 1998, Mattel entered into discussions with KB Toys about becoming the exclusive retailer of CRASH DUMMIES toys. Mattel considered the relative merits of exclusive sales through KB Toys and the high cost of retooling Tyco's product line to meet Mattel's stringent safety standards.

Conclusion

The court affirmed the Board's decision, concluding that substantial evidence supported Mattel's intent to resume use of the CRASH DUMMIES marks, thus overcoming the presumption of abandonment.

Because substantial evidence supports the Board's finding that Mattel intended to resume use of the CRASH DUMMIES marks during the period of non-use, this court affirms.

Who won?

Mattel, Inc. prevailed in this case as the court affirmed the Trademark Trial and Appeal Board's decision sustaining Mattel's opposition to CDM's trademark application. The court found that Mattel had provided sufficient evidence to rebut the presumption of abandonment, demonstrating its intent to resume use of the CRASH DUMMIES marks through various actions taken during the period of nonuse.

Mattel, Inc. prevailed in this case as the court affirmed the Trademark Trial and Appeal Board's decision sustaining Mattel's opposition to CDM's trademark application.

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