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ARTICLE · 02 NOVEMBER 2020

Sanctions And Standing Issues SPROUT From Appeal Of Board Decision

Finnegan, Henderson, Farabow, Garrett & Dunner LLP
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In Corcamore, LLC v. SFM, LLC, No. 2019-1526 (Fed. Cir. Oct. 27, 2020), the Federal Circuit affirmed the Trademark Trial and Appeal Board's entrance of default judgment as a sanction against Corcamore

United StatesIntellectual Property

In Corcamore, LLC v. SFM, LLC, No. 2019-1526 (Fed. Cir. Oct. 27, 2020), the Federal Circuit affirmed the Trademark Trial and Appeal Board's entrance of default judgment as a sanction against Corcamore.

SFM owns a registered trademark for SPROUTS for use in connection with grocery store services. Corcamore owned a registered trademark for SPROUT in connection with vending machine services.  SFM filed a petition to cancel Corcamore's registered SPROUT mark.  Corcamore moved to dismiss SFM's petition for lack of standing.  The Board, relying on Empresa Cubano v. General Cigar, concluded that SFM established standing to bring suit because it sufficiently alleged a real interest and a reasonable belief of damage.  At the close of fact discovery, SFM moved for judgment as a sanction for Corcamore's litigation misconduct.  The Board granted SFM's motion and ordered that Corcamore's registered mark be canceled. 

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