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In re Bose Corp., 580 F.3d 1240, 91 U.S.P.Q.2d 1938

Facts

Bose Corporation appealed the Trademark Trial and Appeal Board's decision that canceled its trademark registration for WAVE, claiming that Bose committed fraud in its renewal application. The Board found that Bose had stopped manufacturing certain goods, including audio tape recorders and players, but Bose's general counsel argued that the repair of previously sold goods constituted 'use in commerce.' The Board concluded that Bose's belief was unreasonable and that the renewal application contained material misrepresentations.

Issue

Did Bose Corporation commit fraud on the Patent and Trademark Office in renewing its trademark registration for WAVE?

Did Bose Corporation commit fraud on the Patent and Trademark Office in renewing its trademark registration for WAVE?

Rule

Fraud in procuring a trademark registration occurs when an applicant knowingly makes false, material representations of fact. The burden of proof lies with the party seeking cancellation, requiring clear and convincing evidence of intent to deceive. A false misrepresentation without willful intent to deceive does not constitute fraud under the Lanham Act.

Analysis

The court analyzed whether Bose's general counsel had the intent to deceive the PTO when he signed the renewal application. Although the Board found that Bose had stopped manufacturing certain goods, the court noted that Mr. Sullivan believed that repairing and returning goods constituted use in commerce. The court emphasized that without clear evidence of deceptive intent, the claim of fraud could not be substantiated.

Conclusion

The court reversed the Board's decision, concluding that there was no evidence of intent to deceive, and remanded the case for further proceedings.

We hold that Bose did not commit fraud in renewing its WAVE mark and the Board erred in canceling the mark in its entirety.

Who won?

Bose Corporation prevailed in the appeal against the Trademark Trial and Appeal Board's cancellation of its WAVE trademark registration. The court found that the evidence did not support a finding of intent to deceive the PTO, which is a necessary element to establish fraud under the Lanham Act. The court emphasized that the burden of proof lies with the party alleging fraud, and since Hexawave failed to provide clear and convincing evidence of deceptive intent, the cancellation was reversed.

Bose Corporation prevailed in the appeal against the Trademark Trial and Appeal Board's cancellation of its WAVE trademark registration. The court found that the evidence did not support a finding of intent to deceive the PTO, which is a necessary element to establish fraud under the Lanham Act.

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