Party defaulting before district court and enjoined cannot attack registration via cancellation
By McKee, Voorhees & Sease, P.L.C.
In a decision this week, the Federal Circuit held that a party against whom a default judgment was entered in a trademark infringement case before a district court cannot thereafter petition to cancel the registration at issue before the TTAB. The TTAB held the claim barred by res judicata. The court held that res judicata did not apply, because an invalidity counterclaim in the district court was not compulsory under Rule 13, and therefore the party now seeking cancellation was not required to assert the invalidity counterclaim before the district court. However, the court held that the cancellation would be an impermissible collateral attack on the previous judgment, and affirmed the TTAB's decision on that basis.
Judge Newman, concurring in the judgment, would have affirmed on the same grounds as the TTAB, namely that because the issue of the registration's validity was decided before the district court, res judicata applied to prevent relitigation of the issue.
More detail of Nasalok Coating Corp. v. Nylok Corp. after the jump.
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