Ttabvue-91254146-OPP-4.Pdf

Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov ESTTA Tracking number: ESTTA1036564 Filing date: 02/18/2020

IN THE UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD Proceeding 91254146 Party Plaintiff Skunk Inc. Correspondence MARY ANN NOVAK Address HILGERS GRABEN PLLC 575 FALLBROOK BOULEVARD, SUITE 202 LINCOLN, NE 68521 UNITED STATES [email protected], [email protected], [email protected], [email protected] 4022182106

Submission Motion to Suspend for Civil Action Filer's Name Mary Ann Novak Filer's email [email protected] Signature /Mary Ann Novak/ Date 02/18/2020 Attachments 2020-02-18 Motion to Suspend re SKUNK BRAND_FINAL.pdf(90414 bytes ) Ex 1 - 049 2019-05-15 BBK 1st Amended Complaint.pdf(3717946 bytes ) Ex 2 - 128 2019-12-02 Skunks amended answer and counterclaims.pdf(590562 bytes ) Ex 3 - Order of suspension re Opp No. 91241486.pdf(94559 bytes ) Ex 4 - Order of suspension re Cancellation No. 92071164.pdf(87104 bytes ) IN THE UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD

In the Matter of Application Serial No. 88/221,710 For the mark SKUNK BRAND in International Class 34 Published: October 22, 2019

Skunk, Inc. Opposition No.

Opposer,

BBK Tobacco & Foods, LLP d/b/a HBI International,

Applicant.

MOTION TO SUSPEND

Pursuant to 37 C.F.R. § 2.117 and TBMP § 510.02(a), Opposer Skunk, Inc. (“Skunk”), by and through its counsel of record, hereby moves the Board to suspend the above-titled proceeding as parties are involved in civil action pending before the United States District Court for the District of Arizona—BBK Tobacco & Foods, LLP, d/b/a HBI International v. Skunk, Inc. et al., case number 2:18-cv-02332-JAT (the “Arizona District Court Litigation”). The Arizona

District Court Litigation has been pending since July 25, 2018. A copy of the operative First

Amended Complaint (“Arizona Complaint”) filed in the Arizona District Court Litigation is attached as Exhibit 1 and a copy of Skunk’s First Amended Answer to First Amended Complaint

(“Arizona Answer”) and Counterclaims filed in that litigation is attached Exhibit 2. Among other things, the Arizona District Court Complaint alleges that BBK Tobacco & Foods, LLP d/b/a HBI

International (“BBK”) uses the SKUNK BRAND mark to identify certain smoking-related products it sells, including smokers’ rolling trays (see Arizona Complaint (Ex. 1) at ¶ 21 & Ex. A), and that Skunk has infringed BBK’s rights in that mark (see, e.g., Arizona Complaint (Ex. 1) at

¶¶ 84-97). The Arizona District Court Litigation also involves claims by Skunk that BBK has misused the federal registration symbol and that BBK’s asserted marks are merely descriptive (see, e.g., Arizona Answer (Ex. 2) at ¶¶ 194-196, 198, 219-220).

Skunk has also requested, and the Board has grant, suspension of two other related matters pending before the Trademark Trial and Appeal Board pending resolution of the Arizona District

Court Litigation—namely, Opposition No. 91241486 (in which BBK opposes Skunk’s application to register its SKUNK & Design mark) and Cancellation No. 92071164 (in which BBK seeks cancellation of Skunk’s registration for its SKUNK mark). A copy of the Orders granting suspension of these proceedings are attached as Exhibits 3 and 4 respectively.

As the claims in the Arizona District Court Litigation will have a direct bearing on this opposition proceeding, the interest of judicial economy is strongly served by suspension of this opposition proceeding until termination of the civil action. Accordingly, Skunk respectfully requests an order from the Board suspending all activity related to the above-captioned opposition proceeding pending the outcome of the Arizona District Court Litigation.

2 Dated: February 18, 2020 Respectfully submitted,

HILGERS GRABEN PLLC

By: /Mary Ann Novak/ Mary Ann Novak – NE Bar #24851 575 Fallbrook Blvd., Suite 202 Lincoln, NE 68521 (402) 218-2106 [email protected]

Majed Dakak Kesselman Brantley Stockinger LLP 1230 Rosecrans Avenue, Suite 400 Manhattan Beach, CA 90266 (310) 307-4555 [email protected]

Counsel for Opposer Skunk, Inc.

CERTIFICATION OF SERVICE

I hereby certify that a true and complete copy of the foregoing MOTION TO SUSPEND

was filed electronically on the 18th day of February 2020 via ESTTA, and a copy was emailed

to BBK’s counsel:

Frank Long Cassandra Markoff Dickinson Wright PLLC 1850 N. Central Avenue, Suite 1400 Phoenix, Arizona 85004 [email protected] [email protected]

Dated: February 18, 2020 /Mary Ann Novak/ Mary Ann Novak

EXHIBIT 1 Case 2:18-cv-02332-JAT Document 49 Filed 05/15/19 Page 1 of 28

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(;+,%,7) Case 2:18-cv-02332-JAT Document 49-6 Filed 05/15/19 Page 2 of 5 Vatra Oers Choices for the True Fashionista

By Danny Reed - October 11, 2016

Vatra sees a sweet future for its Skunk line of stylish, discreet bags.

In our dreams, broken glass may represent disappointment and negativity. For those who have shattered their favorite pipes, the sentiment is remarkably similar.

Protecting expensive glass seems like an obvious necessity, but not everyone is comfortable slinging an obvious paraphernalia holder over their shoulder. Many cannabis apparel and accessory companies do not place an emphasis on fashion and discretion. Vatra does.

The term Vatra means “@re” in Romanian, but the word often is used to convey passion. Alise, Vatra’s founder and chief executive ocer, certainly brings passion to his company’s extensive line of products. Case 2:18-cv-02332-JAT Document 49-6 Filed 05/15/19 Page 3 of 5 “Neutralizing odors is an integral part of where the industry is going.” —Alise, founder and CEO of Vatra

Alise grew up in Eastern Europe. His family did not have the resources to @nance his dreams. He learned early he had to be creative if he were going to get what he wanted. “In order to express myself and be creatively dierent when I was a kid, I had to design my own clothes,” he said. He would buy used clothing and materials in order to make his own T-shirts, jeans, and other garments.

The early exposure to design quickly expanded into entrepreneurship. “By the time I was 18, I had my own clothing company where I made leather jackets and uniforms for dancers and celebrities in Europe,” he said.

Two years later, in 1994, Alise moved to Los Angeles and quickly adjusted to the city’s culture. “Coming of age in L.A., I spent a lot of time sur@ng and working odd jobs,” he said. He worked as a lifeguard in Santa Monica but always kept an eye on design.

“In the 1990s, I began working with Hookah Brothers,” he recalled. His time at Hookah Brothers was his entry into the smoke-shop industry. When friends suggested he create bags and cases for glass pieces, he began designing fashion accessories.

Alise noticed a severe market need. Not only was there a shortage of protective cases and bags, but also the available items reAected the “stoner” stereotype. Sure, consumers could @nd hemp jewelry and hippie T-shirts, but Alise wanted “to make something you would actually want to wear.”

Thus, Vatra was born. In 1997, he and his team conceived and developed products in preparation for the company’s hard launch in 1999. Alise saw the big picture during a time when many companies were living in the moment. Only recently legalized by the passage of Proposition 215, the cannabis industry was in its infancy. Most patients had not yet begun seeking discreet ways to carry their medicine and protect their accessories.

Vatra is a veteran among companies in a young industry. The vast majority of Alise’s employees have been with him for more than ten years. He realizes a company is only as good as its team. “We have great designers and a unique team of people. We look at [Vatra] as a family,” he said. Case 2:18-cv-02332-JAT DocumentThe concept 49-6 of familyFiled 05/15/19extends to Page companies 4 of 5 with which Vatra does business. Vatra sells products nationwide and tries hard to maintain great relationships with retailers. “We back up all of our products with a warranty,” Alise said. Vatra’s “no dust policy” sets it apart from competitors and cultivates good karma with shop owners. “If a product collects dust on the shelf, let us know and we will take it back,” he said.

From its inception, Vatra’s mission has been to create a range of quality products. The company’s current lineup demonstrates dedication to that goal. Vatra oers dozens of bags, cases, and protective capsules for glass. The company also produces smell-proof containers, vaporizer bags, and pocket cases for accessories. Producing so many unique products can be challenging. “Sometimes I wish we only had a handful of products,” Alise joked.

One of the most recognizable lines is a collection of tube bags designed to protect bongs. Other companies oer similar items, but Vatra’s tube bag is unique. “We have a patent for our particular design,” said Alise. Tubular pockets are sewn together and the inside is hand-stued with a cotton- like material to oer maximum protection and minimize odors.

Alise is now looking to the future. Most people working in the cannabis industry realize the market is changing, but not everyone is preparing for the inevitable market shift. As cannabis becomes woven into the fabric of mainstream culture, consumers are seeking out accessories that match their everyday needs.

Vatra aims to meet the new industry’s needs with its newest line of products, Skunk. Ironically, Skunk was conceived to eliminate odors, but consumers want to wear the fashionable bags daily, not just to a cannabis convention or a smoke session. “I wanted to create a line of accessories that someone could take into a professional setting,” said Alise.

“When the economy is bad and people are still bying our bags, you feel the love and gratitude.” —Alise, founder and CEO of Vatra

While Alise is proud of Vatra’s success, he insists the company evolve with the industry. Eventually bags “can become smelly,” he said. Most protective cases for cannabis products undoubtedly will encounter Aower, resin, ash, and dirty water. “We feel that neutralizing odors is an integral part of where the industry is moving,” he said.

After testing compounds and materials from around the world, Alise and his team believe they have devised a perfect system for eliminating odors. Skunk bags are made with a more eective kind of activated carbon, according to Alise. “I have seen fabrics that look identical. One may cost two dollars per square meter while ours costs about $10,”Case he 2:18-cv-02332-JATsaid. “Both can be called Document activated 49-6 carbon, Filed 05/15/19but ours is Page of superior 5 of 5 quality.”

New Skunk products are on the horizon. Drug-sning dogs are not particularly friendly to fabrics, so Vatra has completed prototypes for a canine-proof bag. “The testing on the canine bag is going very well,” Alise said. He expects a design to be ready for the market by the spring or summer of 2017.

Even as Alise is excited about the future, a speci@c period in his past seems to motivate him the most.

“Even in the darkest economic times during 2008, our customers kept us going; kept food on the table. I will always be thankful for that,” he said. “When the economy is bad and people are still buying our bags, you feel true love and gratitude. That is what keeps inspires us.”

For wholesale orders, visit Vatra.com.

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NO NAME CUSTOM DESIGNS 10080 NOBLE GLASS 7032 NU-VENTURE LLC 5071 OCB USA 6027 OHIO VALLEY GLASS 4053 OHM WHOLESALE 7109 OLD TOWN GLASS BLOWERS / OTG GLASS 7041 OOZE 1033 PARTYNUTS 2001 PAX LABS INC. 5068 PEEPACK / SWABPOD 6087 PERUVIAN HANDCRAFTS 8004 PHARAOHS HOOKAHS 3014 PHOENICIAN ENGINEERING LLC 6081 PICHINCHA / SPIRIT OF NATURE 2023 PIECE WATER SOLUTION 6083 PRECISION GRINDERS 4090 PRICE CHECK 7005 PROCK CREATIVE PRODUCTS INTERNATIONAL 2086 PROKANA 4103 PUFFCO 7063 PULSAR VAPORIZERS AND WATER PIPES 1014 PURE CHAMP 5095 PYP TEK LLC 7075 PYRO 17 QLOUD UP 3065 QUANT VAPOR 10086 QUANTUM SCI GLASS 2069 QUIK WIKK 10054 QUIVER FABRICATIONS 10052 R BABU ENTERPRISES 7080

Case 2:18-cv-02332-JAT Document 49-8 Filed 05/15/19 Page 12 of 17 !

RANDYS 3021 RDS DISTRIBUTORS 6086 RED DAWN / EVOL NUTRITION 8063 RED ROCKET GEAR LLC 5104 REHAB GLASS 3026 RESOLUTION 10046 RESREMOVER 9074 ROILTY 10070 ROOR 4021 ROYAL KRATOM 3083A RYOT / KANNASTOR 3015 S&A WHOLESALE 9090 SALT BAE 50 / FRUTTI TWIST 8081 SANDBERG GLASS 20 SANTA CRUZ SHREDDER 5011 SANTA INTL LLC 1103 SAS WHOLESALERS 7102 SAVVY SALES 10060 SENSI MAGAZINE, LAS VEGAS 9034 SERIOUS MONKEY BIZZNESS 8045 SHATTER BATTER 8108 SHENZHEN EVEROLL TECHNOLOGY CO. LTD 3095 SHENZHEN RELAXO TECHNOLOGY CO. LTD. 5101 SHO PRODUCTS / ROSIN TECH 1056 SHUHBUH 6 SKEYE WHOLESALE 1006 SKILLETOOLS 5010 SKY HIGH SMOKE SHOP & WHOLESALE INC 1107 SLX - NEVER STICKS - GRINDERS 7010A SMITTY GLASS ART 10 SMOKE BUDDY 1026

Case 2:18-cv-02332-JAT Document 49-8 Filed 05/15/19 Page 13 of 17 !

SMOKE NATION LLC 3101 SMOKEHOUSEDISTRIBUTION.COM 4095 SMOKES PROS / CONCEPT CRAFTS 10087 SMOKEYZ WHOLESALE 8087 SMOKIN SCREWS LLC 8095 SMOKIT 10016 SOL TRADING 1086 SONICS IMPORTS INC 11005 SOUR 2068 SOUTH SEA VENTURES 7090 SPARTAN SHOWCASE 2088 SPECTRUM GLOBAL ENT. 8075 SPRAYGROUND 3063 STARFISH DESIGNS 8040 STASH CBD 1003 STEVE H 27 STINGER DETOX 3080 STOGY WRAPS, LLC 2096 STORZ & BICKEL 4071 SUA VAPORS SUPER SALT 4107 SUNSHINE JOY 1044 TALENT GLASSWORKS 6040 TAP PACKAGING SOLUTIONS 9032 TASTY PUFF 5027 TC DISTRIBUTION LLC 8091 THE 710 STORE 8038 THE CBDISTILLERY 3094 THE CRUSH 6033 THE GOODFELLAS GROUP / KURED / FRESH CBD 7086 THE INFINITY WATERFALL 10074 THE KIND GROUP 1039

Case 2:18-cv-02332-JAT Document 49-8 Filed 05/15/19 Page 14 of 17 !

THE MAMASAN 7101 THE SOCIAL WEED 3092 THICK ASS GLASS 5100 THINGYMAJIGGY LLC 10048 THREE NS DEEP 8021 10030 THRIVE DISTRO 8086 TIGHTPAC AMERICA INC 7034 TMS INTERNATIONAL 2027 TOBACCOMASTERS & UNDOO 2080 TOKER POKER 3059 TONY KAZY GLASS 15 TOOBS DISTRIBUTION 7062 TOPGREEN US CORP. 2093 TOPOO INDUSTRIES 3069 TOTAL STEALTH DETOX 5026 TRIDENT GLASS 4057 TRILOGY GLASS 6091 TROG DISTRIBUTION 2057 TRUFFOIRE LV 3108 TRUWEIGH LLC 2090 TSUNAMI PREMIUM VAPOR 7015 TWISTED LABS 4080 TWISTED SISTERS GLASSWORKS 1038 UNIQUE TRADING OF NEW YORK INC. 8027 US GLOBAL PRODUCTS INC. 11008 US VAPE WHOLESALE 8105 V SYNDICATE 8064 5080 5081 5086 VAPOR TECH USA 5087 VAPRWEAR 1092 VATRA / SKUNK 5015

Case 2:18-cv-02332-JAT Document 49-8 Filed 05/15/19 Page 15 of 17 !

VECTOR KGM INDUSTRIES 4033 VEDA 5105 VEGAS CANNABIS MAGAZINE 6108 VIP GLASS 6011A VPR COLLECTION 8100 VULCAN GLASS ART STUDIO 19 10058 VXL DISTRIBUTORS 1075 WAIBA INTERNATIONAL INC 8077 WEIGHMAX GROUP 3100 WELL CARTEL 10085 WELLGENIX 9068 WEST COAST VAPE SUPPLY 5020 WHITE LABLE LIQUIDS 10083 WHW INC 2077 WILD BERRY INCENSE 3086 WILLIAM R SEIDE AGENCY LLC 10020 WINDSHIP TRADING COMPANYS LLC 6069 WINDSTAR GLASS 13 WOOD BROTHERS 7081 WORLDWIDE FANUFACTURING LLC 2204 YNY INTERNATIONAL INC. 7094 ZIG-ZAG 2032 ZOMBIE HAND STUDIOS 10064 ZONG / TWISTED 8057

Case 2:18-cv-02332-JATDocument49-8Filed05/15/19Page16of17

Fh Fh

Red Drive #42a

BOA BOA

BOA BOA #42 LVE SERVICE DESK 26' 25' 9' 32'

HIMALAYAN S-1a NEXXGEN HIGH 1000 HERBAL 1006 1014 PULSAR 1020 1026 1032 M 1038 1044 CATCH 1062 1068 1070N 1074 GROUP 1086 1092 1094 1096 CLEAN TWISTED INC END AZ VAPORIZERS A 1056 / / BLOWFISH SOL HUNI INC GLASS INFYNITI BG & DABBER & K SKEYE AND CYCLE SMOKE SUNSHINE FIRE ESQUIRE VAPRWEAR BOA TOTAL SISTERS GLASSWORKS & / SCALES SWAGG 11000 WATER M HAT BOX G P BADGER (VAPERGOODS MG ECLIPSE SHO DISTRIBUTION CRAFT WHOLESALE DETOX PIPES STICKERS TECH GLASSWORKS JOY 1050PINS 1052 GLASS USA TRADING 1102SQUARE 1104SAUCE 1106 1108 HEMPSTAR WHOLESALE BUDDY PRODUCTS DIST.) / ROSIN Mach. TECH 11001 BOA 1 2 3 4 5 6 1075 SKY 1003 1007 1015 1021 1027 1033 1039 1045 1047 LIQUID FLAME 1063 1069 1071 1081 1087 1091 1093 1095 1101 1103 1107 1109 AREHART'S ANTHEA GNARLY THE GLASS PRINCESS SHUHBUH HENRUI HIGH FOREVER GLASS GURU SANTA GLASS HARLEY GLASS 8 GREEN BAD ENVY CUSTOM WORKS HERBAL AIRISTECH EMERSON EK EASY TECHNOLOGY SMOKE KIND ROLLING LEAF IMPORTS SHOP ASH TORCHES MILE CHEF NATURALS EXPRESS CO. INTL & HIGH MAGAZINE INC LTD LIMITED WHOLESALE WHOLESALE BOA 7 12 INC OOZE GROUP IZZY SMITTY BYRON Fhc Fhc Fhc GENTRY NATRIX GRINDER LLC GLASS THE SMOKE STASH CALI GLASS KEIRNAN VXL FLASH LIQUID DIME GLASSGLASSBLOWERGLASS GLASS GLASSHEADS ART Phones AMG CHOICE 2108 CBD KRATOM 8 9 10 11 / PROCK SCI DISTRIBUTORS TOBACCOMASTERS STOGY KULTURE / / CREATIVE SPARTAN STR8 & TRUWEIGH KOI FLY FLY HAKUNA GLASS TONY HARDMAN ATX WINDSTAR ERIC PRODUCTS WRAPS, HICDOGG ART THE ZIG-ZAG GLASS KAZY PYRO SOUR UNDOO SHOWCASE LLC CHOICE RUNES GLASS SUPPLY BAGS GLASS BRAND INTERNATIONAL GLASS LLC LLC Phone & Vending 2020SYSTEM 2032 2038 Fhc 13 14 15 16 17 18 2068 2080 2086 2088 2090 CBD2094 2096 2100GLASS 2106

50' 2057 PICHINCHA CELEBRATION LEAF 2001 2015 2021 2023 2027 2033 2035 2039 2041OF 40' TROG 2063 2069 2075 2077 2081 2087 BLU 2091 2093 2095 2097 2101 2103 NEPAL 2107 2109 / PIPES LIFE FEDTRADE TOPGREEN FREEDOM 11005 2007 NEWPORT DIME TMS GLOWFLY CAPTAIN WELLNESS DISTRIBUTION NEW GALAXYWHW / BOULDER AX BENJIMAN BRONCO ART NHM SPIRIT / / AMSTERDAM INTL INTERNATIONAL US DISTRIBUTION LEAF DISTRIBUTING REGISTRATION OF GLASS SMART TERPENE ENAILS FONTEM IMPORTS DANKLIN PALACE INTERNATIONAL CONFECTION QUANTUM CORP. INC BAGS NATURE COMPANY Fhc INC VENTURES INC BUTANE TRADING LONG SPARK INC SONICS PARTYNUTS ISLAND 3014 3020 3026 3032GLASSSTONE GLASS SCI 3074 FOCUS 3108 IMPORTS / ASPIRE WILD THE HIGH KRATOM WORLDWIDE PHARAOHS GOT REHAB / DOOB MYSTIC SMG JAGUAR STINGER HOLLYWOOD ANGEL THE WEIGHMAX IRIE TRUFFOIRE INC SANDMASTER VAPE BERRY SOCIAL TECHNOLOGY TRADE FANUFACTURING ORANGE GLASS GLASS DETOX GLASS WHOLESALE CBDISTILLERY GROUP LV TUBES TIMBER 3056 CO. ASSOCIATION LLC HOOKAHS VAPE GLASS CHRONIC 3038 3040 3062 CO. IMPORTS 3080 3082 3086INCENSE 3090 3092WEED 3094 3096LTD 3100 2202 2204 3106CBD HBI 40' INTERNATIONAL 50' 23' S-1b ENTRY UNIT A 3021 3027 3039 3057 3059 3063 3065 3069 3075 3081 3083A 3087 3091 3095 SHENZHEN 3101 3105 3107 GREEN EVEROLL SMOKE AQUA GRASSROOTS QLOUD BOUNDLESS ROYAL 11008US SPRAYGROUND HIMALAYAN TECHNOLOGY LEAF HEADQUEST GOLDENGATE TOKER TECHNOLOGY ROADS NATION DOMINGUSA.COM GLOBAL KRATOM CO. RYOT RANDYS GLASSWORKS GREEN CALIFORNIA GLASSWORKS POKER UP FREE BUYER PRODUCTS WORLD CREATIONS LTD LLC / 13' / TOPOO INC. Fhc EUGENE INDUSTRIES / ALS PLANET RIVER KILL GLASS 4080 YOUR HQ / GET BORO DA MOOD SCHOOL BANANA TWISTED CULTURE PRECISION 11009 KANNASTOR ALTERNATIVE PRODUCTS SYNDICATE VINCI DISTRIBUTING APPAREL BNB CANNAPRESSO GAGA PUBLISHING DOWN / CALGREENS VAPORIZER BROS. LABS GRINDERS 3MDMATS LIFESTYLE PRODUCTIONS DAB ENTERPRISES 3001 3015 4020 4022 4026 3033 4038ART 4040 4062 4064 4086 PADZ INC SYSTEMS 4090 4094CRAFT 4100 4106IMPORTS 24' 11010 ENTRY UNIT B Fhc TRUSS ARCHWAY

4001 4007 4011AHVY 4015 4021 4027HBG 4033 4039 4045 4051 4053 4057 4059 4063 4069BLU 4071 4075 4081 4083 4087 4091 4093 4095 4101 4103 4105 4107 SUA GLASS VECTOR * OHIO STORZ DOWNTOWN CLARK-ESPOSITO NATURALLY SCIENTIFIC TRIDENT / CHRONIC MNG EXCLUSIVE CHILLHIT KLEAR LAW VAPORS HVY MININAIL SMOKEHOUSEDISTRIBUTION.COM KRATOM ENTRANCE KGM CHRIS VALLEY & HOOKAH WHOLESALE KRYPTONITE PROKANA FIRM, / / JELLYFISH GLASS FONTEM CANDY LABS SUPER & / JUDGES DISTRIBUTORS DNS P.C. ZOB ROOR DABOLOGY INDUSTRIES HURLEY GLASS VENTURES BICKEL CONNECTION SALT NATURALLY S-1c GOURMET FUTUROLA HEMP ZOB NECTAR GREENLANE WEST COLLECTOR 5050 ED 5080 RED INNOVATIONS USA TOTAL HIGH COLORADO BLAZER PAX VAPOR VAPOR THICK JUICY / COAST EMPIRE BOB / GLASS WOLFES MJ APOLLO LUCKY ROCKET SKILLETOOLS WASATCH STEALTH VOLTAGE SNODGRASS PRODUCTS DISTRACTIONS LABS TECH TECH EXTRACTCRAFT VAPE GLASSWORKS GOT ARSENAL ELIXINOL ASS GEAR J MATHEMATIX GLASSWORKS / GLASSWORKS 5010 5020 SUPPLY 5026 DETOX 5032 5038 DETOX 5044 5046K INC 5056 5058GLASS 5068INC. 5070 5074 USA 5086 USA 5090ASTAR 5094 5100GLASS 5102 5104LLC 5106 GLASS

TRUSS ARCHWAY 23' S-1d 5021A MAMA'S ELITE 5007 5011 5015 5027 5033 C2 5039 5041 5045 5051HOME 5053CLIC 5059 5063 5065 5071 5075 5081 VAPOR 5087 VAPOR 5091 5095 5101SHENZHEN 5103 5105 5107 SANTA GLASS NU-VENTURE RELAXO CHEECH VAPOR MR. DR HIGHER LLC HUNDREDS 11014 CRUZ TASTY MEDICALI / PRODUCTS PURE TECHNOLOGY CALI CUSTOM BLOWN STANDARDS TECH TECH GLASS SHREDDER VATRA AMERICA MERC'S POD DABBER ISODIOL INTERNATIONAL CO. PREMIUM VEDA CROWN CREATIONS MINIONS GLASS GLASS SYSTEM FLOW USA USA LTD. DISTRIBUTION S-1e GLOW PUFF MW NITERIDER LLC CHAMP LTD JUICE GAMES GROUP STUDIOS LA MARS 6108 INDUSTRIES / AMERICAN DISPLAY GUOFEN LIGHTER VEGAS iDAB TALENT ABR HEADY LUCKY INDUSTRIAL RDS BO INC NYC CO WEIGH GLASSWORKS GROUP / FASHIONCRAFT CANAGEL CANNABIS FRANTICUS BAR* USA GLASS LIMITED. DISTRIBUTORS VAPING EAGLE MAGAZINE SKUNK 6026WHOLESALE 6032 6038 6040 6050IMAGERY 5057 BAR HARVEST6062 6068 6074SALES 6080 6086 6090 6094 TORCH 6100INC 6102 6106 6000 EARTH'S TRUSS ARCHWAY

DAB LVE STAGING AREA REMEDY LABZ 6005 6011A 6015 6021 6023 6027 6033 6039 6057 1531 6063 6069 WINDSHIP 6075 6081 6083 6087 6091 6095 6097 6101NEW 6103 6107 6109 6001AB2B ILLADELPH PHOENICIAN PIECE PEEPACK AM MK WHOLESALER VIP CHAMELEON ATMOS TRADING THE EZEESHIP ENGINEERING WATER TRILOGY BALIE DOUBLE NORM MAGAZINE GLASS GLASS COMPANYS / GLOBAL IMPEX / GLASS MAV TECHNOLOGY LLC SOLUTION LLC DIP E MGT 3 MASTER CRUSH INC LLC DIAMOND SWABPOD GLASS LIQUID INC NEPAL MEDIA MINDED BE OCB DISTRIBUTION 11015 SLX DISTRIBUTION THE - GLASS R GOODFELLAS BAZAAR TIGHTPAC APPLIED BLAZING HUMBOLDT GROUP SOUTH YNY IL 11018 NEVER LIT NOBLE HABITAT TOOBS CBD / DITANIUM CANALIGHT SAS STICKS AMERICA SCIENCES BLUE VAPE HOOKAHZZ KURED INTERNATIONAL FLOW BEARS SEA LLC WOO - GLASS BABU / VAPOR INC. WHOLESALERS INFUSED GLASS INC LLC TECH FRESH VENTURES HEMPER 7000A GRINDERS GLASS DISTRIBUTION NUTRACEUTICALS 7010A USA USA 7032 7034 7038 7040 7056 7062 7068 7070 ENTERPRISES7080 7086 CBD 7090 7092 7094 7096 7100USA 7102 7104 BLACK

BALL 23' CORP 7005 7015 7021 7027A 7033 7039 7041OLD 7063 7069 7075 7077 7081 7087 7091 7097 7101 7103 7105 7107 7109 TOWN PYP 7095 100ML 11020 PRICE JM EARTHLY GLASS WOOD EXPERIENCE GOGREEN THE HUNTINGTON OHM BLOWERS INSTAHOOKAH BRADLEY'S FUMA FIVE / TEK JUICE Fhc BODY MEDTAINER BROTHERS HEMP MAMASAN LLC WHOLESALE TSUNAMI OTG PUFFCO CBD BRAND VAPOR CHECK ILLUMINATI PLASTICS FAMOUS GLASS LLC CO PREMIUM GLASS 8108 THE EASY BOULDER GREEN BR FORGOTTEN PERUVIAN DIAMOND BRANDZ STARFISH V LEM'N BOVEDA THRIVE VPR SHATTER 710 BUTTER GLASSTRIBE CASE BUDALISH MERCHANT NOT VAPOR DESIGNS SYNDICATE INC LOTUS COLLECTION BATTER HANDCRAFTS CO BERRY COMPANY SERVICE GONE 8004 8026AGLASS STORE8038 8040 Fhc 8062 8064 8068 8074 8076 8080 Fhc 8086DISTRO 8090HEMP 8094 8096 8100 8102 8106 Fhc HS WHOLESALE TRUSS ARCHWAY

UNIQUE 8033 8039 VULCAN19 20 21 22 23 24 8057 RED 8081 8087 DONGGUAN 8013A 8021 8027 HEADDIES 8045 8047 HAROLD MATT 8063 8065 8069 8071 8075 8077 8091 8093 8095 8097 8101 8103 8105 8107 8109 GLASS SANDBERG ERKLE'S MAASEN GREEN TRADING JEDI LUDEMAN IZLOW MK CHAKOU SERIOUS GLASS GLASS C SPECTRUM SMOKIN ART GLASS GLASS DAWN WAIBA SALT TC US OF / GLASS DIPSTICK FLYTLAB STUDIO / HERBALOGIX INTERNATIONAL EONSMOKE STS CULTURE SILICONE NEW MONKEY GLASS GLASS GLOBAL DISTRIBUTION CARTISAN SCREWS VAPE PRODUCTS THREE WHITE EVOL VAPES INC BAE PURE LLC GROUP MAGAZINE YORK BIZZNESS ZONG ENT. LLC WHOLESALE CO., INC. LIMITED RABBIT WORKS 25 NUTRITION LLC LLC INC. INC LTD, HAPPYTIME STEVE 50 SMOKEYZ BDD CHROMA 30 GLASS H / NATURAL NS SENSI 26 27 TWISTED / LA GLASS TAP 2829 EMPHASIS WHOLESALE MAGAZINE, GENIUS 420 BE WHOLESALE PACKAGING LASERTREES WELLGENIX / RESREMOVER CBD FRUTTI S&A WHOLESALE LAB LAS EXPRESSIONS NEXT SOLUTIONS PIPE ISODIOL PURE WHOLESALE KINGS GENERATION 8001A VEGAS AXIS TWIST INC HILLSIDE DEEP 9026303 9032 9034 9040 9044 9046 313233343536 9062 9068 9070HEMP 9074 9076 9090 9092 9094 GLASS

TRUSS ARCHWAY 11'

10080NO 10081ENCORE 10083 10085 10086 10087SMOKES THREE BEST KUSHED HOT VULCAN ZOMBIE HARD DAMAGE THE WHITE 10024JM 10026BEARDED 10030 10040 10042 10044HARLEY 10046THINGYMAJIGGY 10048BUDDYCLIP 10050 10052QUIVER 10054QUIK 10056EZ 10058 10060 10064 10066 10068CONTROL 10070DOWNLOW 10072 10074 PROS CLUB NS VALUE OUT SKULL RESOLUTION GLASS SAVVY HAND TIMES INFINITY NAME BY WELL QUANT DISTRIBUTION LLC LLC FABRICATIONS SILICONE ROILTY / CERAMICS MORALES ART DESIGN WATERFALL LABLE WILLIAM DEEP VACS1003610038 FASHION INC. WIKK BAKE STUDIO SALES STUDIOS GLASS LLC CUSTOM BLACK CONCEPT R CARTEL VAPOR SEIDE DESIGNS SHEEP CRAFTS 8003 SMOKIT AGENCY LIQUIDS

13 4' 10016 10020LLC #25 #26 #27 #28 #29 #30 BOA BOA BOA BOA BOA Oxygen (x5)

Propane (x4) 0'5' 10' 20'

SCALE

South Drive Ev E Ev Ev Fh

Ev Case 2:18-cv-02332-JATDocument49-8Filed05/15/19Page17of

Fh Fh

Red Drive #42a

BOA BOA

BOA BOA #42 LVE SERVICE DESK 26' 25' 9' 32'

50' 2057 PICHINCHA CELEBRATION LEAF 2001 2015 2021 2023 2027 2033 2035 2039 2041OF 40' TROG 2063 2069 2075 2077 2081 2087 BLU 2091 2093 2095 2097 2101 2103 NEPAL 2107 2109 / PIPES LIFE FEDTRADE TOPGREEN FREEDOM 11005 20020077 NEWPORT DIME TMS GLOWFLY CAPTAIN WELLNESS DISTRIBUTION NEW GALAXYWHW / BOULDER AX BENJIMAN BRONCO ART NHM SPIRIT / / AMSTERDAM INTL INTERNATIONAL US DISTRIBUTION LEAF DISTRIBUTING REGISTRATION OF GLASS SMART TERPENE ENAILS FONTEM IMPORTS DANKLIN PALACE INTERNATIONAL CONFECTION QUANTUM CORP. INC BAGS NATURE COMPANY Fhc INC VENTURES INC BUTANE TRADING LONG SPARK INC SONICS PARTYNUTS ISLAND 3014 3020 3026 3032GLASSSTONE GLASS SCI 3074 FOCUS 3108 IMPORTS / ASPIRE WILD THE HIGH KRATOM WORLDWIDE PHARAOHS GOT REHAB / DOOB MYSTIC SMG JAGUAR STINGER HOLLYWOOD ANGEL THE WEIGHMAX IRIE TRUFFOIRE INC SANDMASTER VAPE BERRY SOCIAL TECHNOLOGY TRADE FANUFACTURING ORANGE GLASS GLASS DETOX GLASS WHOLESALE CBDISTILLERY GROUP LV TUBES TIMBER 3056 CO. ASSOCIATION LLC HOOKAHS VAPE GLASS CHRONIC 3038 3040 3062 CO. IMPORTS 3080 3082 3086INCENSE 3090 3092WEED 3094 3096LTD 3100 2202 2204 3106CBD HHBIBI 40' INTERNATIONALNTERNATIONAL 50' 23' S-1b ENTRY UNIT A 3021 3027 3039 3057 3059 3063 3065 3069 3075 3081 3083A 3087 3091 3095 SHENZHEN 3101 3105 3107 GREEN EVEROLL SMOKE AQUA GRASSROOTS QLOUD BOUNDLESS ROYAL 11008US SPRAYGROUND HIMALAYAN TECHNOLOGY LEAF HEADQUEST GOLDENGATE TOKER TECHNOLOGY ROADS NATION DOMINGUSA.COM GLOBAL KRATOM CO. RYOT RANDYS GLASSWORKS GREEN CALIFORNIA GLASSWORKS POKER UP FREE BUYER PRODUCTS WORLD CREATIONS LTD LLC / 13' / TOPOO INC. Fhc EUGENE INDUSTRIES / ALS PLANET RIVER KILL GLASS 4080 YOUR HQ / GET BORO DA MOOD SCHOOL BANANA TWISTED CULTURE PRECISION 11009 KANNASTOR ALTERNATIVE PRODUCTS SYNDICATE VINCI DISTRIBUTING APPAREL BNB CANNAPRESSO GAGA PUBLISHING DOWN / CALGREENS VAPORIZER BROS. LABS GRINDERS 3MDMATS LIFESTYLE PRODUCTIONS DAB ENTERPRISES 3001 3015 4020 4022 4026 3033 4038ART 4040 4062 4064 4086 PADZ INC SYSTEMS 4090 4094CRAFT 4100 4106IMPORTS 24' 11010 ENTRY UNIT B Fhc TRUSS ARCHWAY

TRUSS ARCHWAY 23' S-1d 5021A MAMA'S ELITE 5007 50115 5015015 5027 5033 C2 5039 5041 5045 5051HOME 5053CLIC 5059 5063 5065 5071 5075 5081 VAPOR 5087 VAPOR 5091 5095 5101SHENZHEN 5103 5105 5107 SANTA GLASS NU-VENTURE RELAXO CHEECH VAPOR MR. DR HIGHER LLC HUNDREDS 11014 CRUZ TASTY MEDICALI / PRODUCTS PURE TECHNOLOGY CALI CUSTOM BLOWN STANDARDS TECH TECH GLASS SHREDDER VATRAVATRA AMERICA MERC'S POD DABBER ISODIOL INTERNATIONAL CO. PREMIUM VEDA CROWN CREATIONS MINIONS GLASS GLASS SYSTEM FLOW USA USA LTD. DISTRIBUTION S-1e GLOW PUFF MW NITERIDER LLC CHAMP LTD JUICE GAMES GROUP STUDIOS LA MARS 6108 INDUSTRIES / AMERICAN DISPLAY GUOFEN LIGHTER VEGAS iDAB TALENT ABR HEADY LUCKY INDUSTRIAL RDS BO INC NYC CO WEIGH GLASSWORKS GROUP / FASHIONCRAFT CANAGEL CANNABIS FRANTICUS BAR* USA GLASS LIMITED. DISTRIBUTORS VAPING EAGLE MAGAZINE SSKUNKKUNK 6026WHOLESALE 6032 6038 6040 6050IMAGERY 5057 BAR HARVEST6062 6068 6074SALES 6080 6086 6090 6094 TORCH 6100INC 6102 6106 6000 EARTH'S TRUSS ARCHWAY

TRUSS ARCHWAY 11'

13 4' 10016 10020LLC #25 #26 #27 #28 #29 #30 BOA BOA BOA BOA BOA Oxygen (x5)

Propane (x4) 0'5' 10' 20'

SCALE

South Drive Ev E Ev Ev Fh

Ev Case 2:18-cv-02332-JAT Document 49-9 Filed 05/15/19 Page 1 of 2

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EXHIBIT 2 Case 2:18-cv-02332-JAT Document 128 Filed 12/02/19 Page 1 of 62

1 Majed Dakak, pro hac vice CA Bar No. 271875 2 [email protected] KESSELMAN BRANTLY STOCKINGER LLP 3 1230 Rosecrans Ave., Suite 400 Manhattan Beach, CA 90266 4 Telephone: (310) 307-4555 Facsimile: (310) 307-4570 5 6 Mary Ann Novak, pro hac vice NE Bar No. 24851 7 [email protected] HILGERS GRABEN PLLC 8 575 Fallbrook Blvd, Suite 202 Lincoln, NE 68521 9 Telephone: (402) 218-2106 Facsimile: (402) 413-1880 10 11 Attorneys for Defendant/Counterclaim Plaintiff Skunk, Inc 12

13 UNITED STATES DISTRICT COURT 14 FOR THE DISTRICT OF ARIZONA 15

16 BBK Tobacco & Foods, LLP, an Arizona No. CV-18- 02332-PHX-JAT limited liability partnership, d/b/a 17 HBI International,

18 Plaintiff,

19 v. SKUNK, INC.’S FIRST AMENDED ANSWER TO FIRST AMENDED 20 Skunk, Inc., a California corporation; COMPLAINT AND Vatra, Inc., a California corporation, 21 COUNTERCLAIMS Defendants. 22 (Jury Trial Demanded) Skunk, Inc., a California corporation 23 Defendant/Counterclaim Plaintiff, 24 v. 25 BBK Tobacco & Foods, LLP, an Arizona 26 limited liability partnership, d/b/a HBI International, 27 Plaintiff/Counterclaim Defendant. 28

Case 2:18-cv-02332-JAT Document 128 Filed 12/02/19 Page 2 of 62

1 Defendant/Counterclaim Plaintiff Skunk, Inc. (“Skunk”) hereby responds to 2 the allegations set forth in the First Amended Complaint as follows: 3 THE PARTIES 4 5 1. Skunk lacks knowledge and information sufficient to form a belief as 6 to the truth of the allegations contained in Paragraph 1 and therefore denies the 7 allegations. 8 9 2. In response to the allegations contained in Paragraph 2, Skunk admits 10 that it is a California corporation with a place of business in Los Angeles County, 11 California. Except as expressly admitted herein, Skunk denies the remaining 12 13 allegations contained in Paragraph 2. 14 3. Skunk admits the allegations contained in Paragraph 3. 15 4. In response to the allegations contained in Paragraph 4, Skunk admits 16 17 that Vatra and Skunk share a common owner. Except as expressly admitted herein, 18 Skunk denies the remaining allegations contained in Paragraph 4. 19 JURISDICTION AND VENUE 20 21 5. Paragraph 5 contains legal conclusions to which no response is

22 required. To the extent a response is required, Skunk admits that this Court has 23 subject matter jurisdiction as this case involves a federal question, but denies that 24 25 the amount in controversy exceeds $75,000.

26 6. In response to the allegations contained in Paragraph 6, Skunk admits 27 Skunk operates a website with the domain name https://skunkbags.com (the “Skunk 28

Case 2:18-cv-02332-JAT Document 128 Filed 12/02/19 Page 3 of 62

1 Website”). Except as expressly admitted herein, Skunk denies the remaining 2 allegations in Paragraph 6. 3 7. In response to the allegations contained in Paragraph 7, Skunk admits 4 5 that the domain name https://skunkgaurd.com is used by Skunk to redirect visitors 6 to the Skunk Website. Except as expressly admitted herein, Skunk denies the 7 remaining allegations in Paragraph 7. 8 9 8. In response to the allegations contained in Paragraph 8, Skunk admits 10 Vatra operates a website with the domain name https://vatra.com (the “Vatra 11 Website”). Except as expressly admitted herein, Skunk denies the remaining 12 13 allegations in Paragraph 8. 14 9. In response to the allegations contained in Paragraph 9, Skunk admit 15 that each of the listed domain names in Paragraph 9 is owned by either Skunk or 16 17 Vatra. Except as expressly admitted herein, Skunk denies the remaining allegations 18 in Paragraph 9. 19 10. In response to the allegations contained in Paragraph 10, Skunk admits 20 21 that the domain name https://vatraprotection.com is used by Vatra to redirect visitors

22 to the wholesale login page of the Vatra Website. Except as expressly admitted 23 herein, Skunk denies the remaining allegations in Paragraph 10. 24 25 11. In response to the allegations contained in Paragraph 11, Skunk admits

26 that the Skunk Website asks users whether they are interested in joining a “Mailing 27 List for Sales & Specials.” 28

Case 2:18-cv-02332-JAT Document 128 Filed 12/02/19 Page 4 of 62

1 12. In response to the allegations contained in Paragraph 12, Skunk admits 2 that users of the Skunk Website may enter their email address to join a “Mailing List 3 for Sales & Specials.” 4 5 13. In response to the allegations contained in Paragraph 13, it is unclear 6 what Plaintiff means by “geographic restriction” as the Skunk Website “Mailing List 7 for Sales & Specials” consists solely of email addresses (not physical addresses). 8 9 Skunk admits that Skunk does not attempt to (nor could it) associate the email 10 addresses with geographic locations so as to place a geographic limitation on the 11 “Mailing List for Sales & Specials.” 12 13 14. In response to the allegations contained in Paragraph 14, Skunk admits 14 that Skunk identifies and offers for sale some of its products, including certain of its 15 smell proof bags, on its Skunk Website. Skunk further admit that Vatra identifies 16 17 and offers for sale some of its products on its Vatra Website, which products 18 presently include hard-shelled smell proof cases that is branded with the VATRA 19 mark. Skunk further admits that certain Skunk products are available for sale on the 20 21 Vatra Website. Except as expressly admitted herein, Skunk denies the remaining

22 allegations in Paragraph 14. 23 15. In response to the allegations contained in Paragraph 15, Skunk admits 24 25 that the Skunk Website and the Vatra Website provide a means for users to purchase

26 advertised products. Skunk further admits that smell proof backpacks can presently 27 be purchased through the Skunk Website, as well as through a wholesale portion of 28

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1 the Vatra Website that is accessible only to certain customers that have been 2 provided the requisite log on credentials, but denies that smell proof backpacks can 3 presently be purchased on a retail basis through the Vatra Website. Skunk admits 4 5 that vape cases can presently be purchased through the Vatra Website, but denies 6 that any of the vape cases shown on the website are branded with any mark 7 containing the word “Skunk” Except as expressly admitted herein, Skunk denies the 8 9 remaining allegations in Paragraph 15. 10 16. In response to the allegations contained in Paragraph 16, Skunk admits 11 that the Skunk Website and the Vatra Website provide a means for users to purchase 12 13 advertised products using a credit card. Except as expressly admitted herein, Skunk 14 denies the remaining allegations in Paragraph 16. 15 17. In response to the allegations contained in Paragraph 17, Skunk admits 16 17 that the “Checkout” page of the Skunk Website and the “Checkout” page of the Vatra

18 Website provide users with a drop-down box to choose the “State” portion of the 19 address to which an item will be shipped, which drop-down menu includes all 50 20 21 states (as well as three “Armed Forces” options). Except as expressly admitted

22 herein, Skunk denies the remaining allegations in Paragraph 17. 23 18. In response to the allegations contained in Paragraph 18 regarding 24 25 Plaintiff’s place of business, Skunk lacks knowledge and information sufficient to

26 form a belief as to the truth of the allegation and therefore denies the allegations. 27 Skunk admits that Skunk and Vatra sell goods online and that these goods can be 28

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1 shipped to customers throughout the United States; Skunk and Vatra, however, do 2 not have a physical presence in Arizona. Skunk denies that Skunk and Vatra are 3 subject to personal jurisdiction in this district and denies any remaining allegations 4 5 in Paragraph 18. 6 19. In response to the allegations contained in Paragraph 19, Skunk denies 7 that venue is proper in this district pursuant to 28 U.S.C. §1391(b) and denies that a 8 9 substantial part of the activities giving rise to the claims alleged in the First Amended 10 Complaint occurred in this district. 11 GENERAL ALLEGATIONS 12

13 A. HBI’s SKUNK Products and SKUNK Marks 14 20. Skunk lacks knowledge and information sufficient to form a belief as 15 to the truth of the allegations contained in Paragraph 20 and therefore denies the 16 17 allegations. 18 21. Skunk lacks knowledge and information sufficient to form a belief as 19 to the truth of the allegations contained in Paragraph 21 and therefore denies the 20 21 allegations.

22 22. In response to the allegations contained in Paragraph 22, Skunk admits 23 that according to the U.S. Patent and Trademark Office TESS database, BBK 24 25 Tobacco & Foods, LLP d/b/a HBI International (“HBI”) is identified as the owner

26 of U.S. Registration Nos. 2,435,666, 5,344,902, and 5,344,903 for the mark SKUNK 27 BRAND and U.S. Registration Nos. 4,436,677 and 4,569,712 for the mark SKUNK. 28

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1 Skunk, however, challenges the validity of the aforementioned registrations, as set 2 forth in its counterclaims and affirmative defenses below. Additionally, Skunk has 3 filed counterclaims petitioning to cancel U.S. Registration Nos. 2,435,666, 4 5 5,344,902, 4,436,677 and 4,569,712 in BBK Tobacco & Foods, LLP d/b/a HBI 6 International, v. Skunk, Inc., Opposition Proceeding No. 91241486, currently 7 pending before the Trademark Trial and Appeal Board. Except as expressly admitted 8 9 herein, Skunk lacks knowledge and information sufficient to form a belief as to the 10 truth of the remaining allegations contained in Paragraph 22 and therefore denies the 11 allegations. 12

13 B. PTO Registrations of HBI’s SKUNK Marks 14 23. In response to the allegations contained in Paragraph 23 (including sub- 15 paragraphs a-e), Skunk admits that according to the U.S. Patent and Trademark 16 17 Office TESS database, Defendant is identified as: 18 (a) the owner (by assignment) of U.S. Registration No. 2,435,666 and that 19 TESS identifies this registration as being for the mark SKUNK BRAND for 20 21 “cigarette rolling papers; cigarettes, tobacco, snuff, pipes for smoking, cigarette

22 lighters not of precious metal, and matches” (in International Class 34) and having 23 issued on March 13, 2001 (not December 28, 1999, as HBI alleges) from an 24 25 application filed September 9, 1998;

26 (b) the owner of U.S. Registration No. 4,436,677 and that TESS identifies this 27 registration as being for the mark SKUNK for “cigarette lighters not of precious 28

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1 metal; cigarette papers; cigarette rolling papers; cigarette tubes; herbs for smoking” 2 (the remaining goods having previously been deleted) (in International Class 34) and 3 having issued on November 19, 2013 from an application filed July 8, 2013; 4 5 (c) the owner of U.S. Registration No. 4,569,712 and that TESS identifies this 6 registration as being for the mark SKUNK for “electric cigarettes; electronic 7 cigarettes; electronic cigarettes for use as an alternative to traditional cigarettes; 8 9 electronic cigars” (in International Class 34) and having issued on July 15, 2014 10 from an application filed June 25, 2013; 11 (d) the owner of U.S. Registration No. 5,344,902 and that TESS identifies this 12 13 registration as being for the mark SKUNK BRAND for “cigarette tip made of glass,

14 namely, smokers’ mouthpieces for cigarettes” (in International Class 34) and having 15 issued on November 28, 2017 from an application filed February 15, 2017; 16 17 (e) the owner of U.S. Registration No. 5,344,903 and that TESS identifies this

18 registration as being for the mark SKUNK BRAND for “pre-rolled smoking tube 19 made of hemp-based paper, namely, cigarette and cigar tubes; hemp-based wrap for 20 21 smoking, namely, cigarette rolling papers” (in International Class 34) and having

22 issued on November 28, 2017 from an application filed February 15, 2017. 23 Skunk denies, however, HBI’s allegation that each of the aforementioned 24 25 registrations pre-dates “Applicant’s claimed date of first use,” denies that each of

26 the registration issued based on HBI’s use, and challenges the validity of the 27 aforementioned registrations, as set forth in its counterclaims and affirmative 28

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1 defenses below. Additionally, Skunk has filed counterclaims petitioning to cancel 2 U.S. Registration Nos. 2,435,666, 5,344,902, 4,436,677 and 4,569,712 in BBK 3 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Opposition 4 5 Proceeding No. 91241486, currently pending before the Trademark Trial and Appeal 6 Board and, in that proceeding, HBI has request that “cigarette rolling machines, 7 cigarettes containing tobacco substitutes not for medical purposes, machines 8 9 allowing smoking to make cigarettes themselves, and pocket apparatus for self- 10 rolling cigarettes” be deleted from U.S. Registration No. 4,436,677, as these goods 11 are not offered under the mark therein. Except as expressly admitted herein, Skunk 12 13 lacks knowledge and information sufficient to form a belief as to the truth of the 14 remaining allegations contained in Paragraph 23 (including sub-paragraphs a-e) and 15 therefore denies the allegations. 16 17 24. In response to the allegations contained in Paragraph 24, Skunk admits 18 that what appears to be copies of certificates of registration for U.S. Registration 19 Nos. 2,435,666, 4,436,677, 4,569,712, 5,344,902, and 5,344,903, but denies that 20 21 these certificates reflect the current status of said registrations. Except as expressly

22 admitted, Skunk lacks knowledge and information sufficient to form a belief as to 23 the truth of the remaining allegations contained in Paragraph 24 and therefore denies 24 25 the allegations.

26 25. In response to the allegations contained in Paragraph 25, Skunk admits 27 that according to the U.S. Patent and Trademark Office TESS database, HBI is 28

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1 identified as the owner of U.S. Application Serial No. 87/810,868, which is 2 identified by TESS as an intent-to-use application for the mark SKUNK for “wood 3 boxes” (in International Class 20), filed on February 26, 2018. Skunk denies that this 4 5 unissued intent-to-use application, filed long after Skunk commenced using its mark, 6 has any relevance to this proceeding. Except as expressly admitted herein, Skunk 7 lacks knowledge and information sufficient to form a belief as to the truth of the 8 9 remaining allegations contained in Paragraph 25 and therefore denies the allegations. 10 26. In response to the allegations contained in Paragraph 26, Skunk admits 11 that according to the U.S. Patent and Trademark Office TESS database, HBI is 12 13 identified as the owner of U.S. Application Serial No. 88/145,031, which is 14 identified by TESS as a use-based application for the mark SKUNK SACK for 15 “storage bags” (in International Class 20), filed on October 5, 2018. Skunk denies 16 17 that this unissued application, filed long after Skunk commenced using its mark, has 18 any relevance to this proceeding. Except as expressly admitted herein, Skunk lacks 19 knowledge and information sufficient to form a belief as to the truth of the remaining 20 21 allegations contained in Paragraph 26 and therefore denies the allegations.

22 27. In response to the allegations contained in Paragraph 27, Skunk admits 23 that HBI uses a cartoon portrayal of a skunk on at least some of its packaging. Except 24 25 as expressly admitted herein, Skunk lacks knowledge and information sufficient to

26 form a belief as to the truth of the remaining allegations contained in Paragraph 2 27 and therefore denies the allegations. 28

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C. HBI Promotion of the SKUNK Products using the Skunk Marks 1 2 28. Skunk lacks knowledge and information sufficient to form a belief as 3 to the truth of the allegations contained in Paragraph 28 and therefore denies the 4 5 allegations. 6 29. Skunk lacks knowledge and information sufficient to form a belief as 7 to the truth of the allegations contained in Paragraph 29 and therefore denies the 8 9 allegations. 10 30. Skunk admits that HBI was an exhibitor at the Champs Tradeshow in 11 Las Vegas, Nevada on July 17-18, 2018. Except as expressly admitted herein, Skunk 12 13 lacks knowledge and information sufficient to form a belief as to the truth of the 14 remaining allegations contained in Paragraph 30 and therefore denies the allegations. 15 31. Skunk admits that HBI was an exhibitor at the Champs Tradeshow on 16 17 February 19, 2018. Except as expressly admitted herein, Skunk lacks knowledge and 18 information sufficient to form a belief as to the truth of the remaining allegations 19 contained in Paragraph 31 and therefore denies the allegations. 20 21 32. Skunk admits that HBI was an exhibitor at the SoCal Cannabis Cup in

22 San Bernardino on April 20, 2018. Except as expressly admitted herein, Skunk lacks 23 knowledge and information sufficient to form a belief as to the truth of the remaining 24 25 allegations contained in Paragraph 32 and therefore denies the allegations. 26 27 28

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1 33. Skunk lacks knowledge and information sufficient to form a belief as 2 to the truth of the allegations contained in Paragraph 33 and therefore denies the 3 allegations. 4 5 Defendants’ Products and Advertising 6 34. In response to the allegations contained in Paragraph 34, Skunk admits 7 that Skunk is in the business of selling certain smell proof bag products and that 8 9 Vatra sells certain Skunk smell proof bag products. It denies that Vatra is primarily 10 in the business of selling smell proof bag products, as Vatra is primarily in the 11 business of selling its own large line of VATRA-branded protective bags and cases, 12 13 which are not branded with the word “Skunk” and, with limited exceptions, are not 14 marketed as smell proof. 15 35. Skunk admits the allegations contained in Paragraph 35. 16 17 36. Skunk denies the allegations contained in Paragraph 36. 18 37. In response to the allegations contained in Paragraph 37, Skunk admits 19 that Skunk uses a stylized design image that could be likened to a skunk tail or wisps 20 21 of smoke, as depicted below, on Skunk’s bag products but denies that this image is

22 used on Vatra’s bag products. 23 24 25 26

27 28

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1 Except as expressly admitted herein, Skunk denies the remaining allegations 2 contained in Paragraph 37. 3 38. Skunk admits the allegations contained in Paragraph 38. 4 5 39. In response to the allegations contained in Paragraph 39, Skunk admits 6 that Skunk currently sells, displays, and markets Skunk’s smell proof bag products 7 in the United States and admits that Vatra currently sells certain of Skunk’s smell 8 9 proof bags, primarily at the wholesale level. 10 40. Skunk admits the allegations contained in Paragraph 40. 11 41. Skunk admits that Skunk advertises its smell proof bag products to a 12 13 wide-array of consumers, which include but are not limited to purchasers of

14 smoking-related products, but denies that Skunk’s “smell proof” bag products 15 include “Vape Cases.” Except as expressly admitted herein, Skunk denies the 16 17 remaining allegations contained in Paragraph 41. 18 42. In response to the allegations contained in Paragraph 42, Skunk admits 19 that Skunk “smell proof” bag products have been advertised at tradeshows for 20 21 smoking-related products, but denies that Skunk’s “smell proof” bag products have

22 ever been displayed at trade shows under Vatra signage. 23 43. Skunk admits the allegations contained in Paragraph 43. 24 25 44. Skunk admits the allegations contained in Paragraph 44.

26 45. Skunk admits the allegations contained in Paragraph 45. 27 46. Skunk admits the allegations contained in Paragraph 46. 28

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1 47. Skunk admits the allegations contained in Paragraph 47. 2 48. Skunk admits the allegations contained in Paragraph 48. 3 49. Skunk admits the allegations contained in Paragraph 49. 4 5 50. In response to the allegations contained in Paragraph 50, Skunk admits 6 that on February 16, 2017, Skunk (through its Attorney of Record) filed an 7 application to register the below depicted mark for a number of different types of 8 9 bags and related products in International Class 18 (the “PTO Application”). 10 11 12 13

14 51. Skunk denies the allegations contained in Paragraph 51. 15 16 52. Skunk admits the allegations contained in Paragraph 52. 17 Defendant Vatra 18 53. In response to the allegations contained in Paragraph 53, Skunk admits 19 20 that Vatra has sold and sells Skunk’s “smell proof” bag products, which are branded

21 using the Skunk name and mark, but denies that Vatra uses the term “Skunk” to sell 22 or promote any of its own line of bag products. 23 24 54. In response to the allegations contained in Paragraph 54, Skunk admits

25 that Vatra has sold and sells Skunk’s “smell proof” bag products, which are branded 26 using the design depicted below, which could be likened to a skunk tail or wisps of 27 28

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1 smoke, but denies that Vatra uses the design to sell or promote any of its own line 2 of bag products. 3 4 5

6 7 Except as expressly admitted herein, Skunk denies the remaining allegations 8 9 contained in Paragraph 54. 10 55. Skunk admits the allegations contained in Paragraph 55, but denies that 11 the Skunk Website is operated by Vatra. 12 13 56. Skunk admits the allegations contained in Paragraph 56, but denies that 14 Vatra sells items on the Skunk Website or operates that website. 15 57. In response to the allegations contained in Paragraph 57, Skunk admits 16 17 that Vatra was previously listed on the contact page of the Skunk Website due to an 18 error made by the website designer; this error has now been corrected and Vatra is 19 no longer listed on the contact page. 20 21 58. In response to the allegations contained in Paragraph 58, Skunk admits 22 that Vatra was previously listed as a contact on the warranty page of the Skunk 23 Website, but alleges that this was an error and has been corrected, as Skunk (not 24 25 Vatra) handles warranty claims related to Skunk’s smell proof bag products. 26 27 28

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1 59. In response to the allegations contained in Paragraph 59, Skunk admits 2 that such link previously erroneously appeared on the Skunk Website but has now 3 been removed. 4 5 60. In response to the allegations contained in Paragraph 60, Skunk admits 6 that the domain name https://vatraprotection.com is used by Vatra to redirect visitors 7 to the wholesale login page of the Vatra Website. Except as expressly admitted 8 9 herein, Skunk denies the remaining allegations contained in Paragraph 60. 10 61. Skunk denies the allegations contained in Paragraph 61, as the 11 https://vatraprotection.com domain name redirects users to another website. 12 13 62. Skunk admits the allegations contained in Paragraph 62. 14 63. Skunk denies the allegations contained in Paragraph 63. 15 64. In response to the allegations contained in Paragraph 64, Skunk admits 16 17 that Vatra advertises Skunk’s Lock N’ Load cases (which are hard-shelled cases as 18 opposed to bags) on the Vatra Website as Skunk products. To the extent the phrase 19 “Skunk products” is used on the Vatra Website to refer to a grouping of products 20 21 that also includes (in addition to Skunk’s Lock N’ Load line of cases) Vatra’s Double

22 Decker line of cases, this is an error as the Double-Decker line of cases are a Vatra 23 product that are clearly branded with the VATRA name and mark and are not sold 24 25 under the “Skunk” name or mark. Expect as expressly admitted herein, Skunk denies

26 the remaining allegations contained in Paragraph 64. 27 28

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1 65. In response to the allegations contained in Paragraph 65, Skunk admits 2 that Vatra advertises Skunk’s Lock N’ Load cases (which are hard-shelled cases as 3 opposed to bags) on the Vatra Website as Skunk cases. To the extent the phrase 4 5 “Skunk case” is used on the Vatra Website to refer to a grouping of products that 6 also includes (in addition to Skunk’s Lock N’ Load line of cases) Vatra’s Double 7 Decker line of cases, this is an error as the Double-Decker line of cases are a Vatra 8 9 product that are clearly branded with the VATRA name and mark and are not sold 10 under the “Skunk” name or mark. Expect as expressly admitted herein, Skunk denies 11 the remaining allegations contained in Paragraph 65. 12 13 66. Skunk admits the allegations contained in Paragraph 66. 14 67. In response to the allegations contained in Paragraph 67, Skunk admits 15 that Vatra previously promoted the sale of Skunk’s “smell proof” bag products on 16 17 the Vatra Instagram, but denies that Vatra continues to do so and further alleges that

18 Vatra has not posted anything on the Vatra Instragram promoting Skunk’s products 19 since late January 2017. 20 21 Defendants’ Infringement

22 68. Skunk denies the allegations contained in Paragraph 68. 23 69. Skunk denies the allegations contained in Paragraph 69. 24 25 70. Skunk denies the allegations contained in Paragraph 70.

26 71. Skunk denies the allegations contained in Paragraph 71. 27 72. Skunk denies the allegations contained in Paragraph 72. 28

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COUNT 1 1 (Federal Trademark Infringement) 2 (15 U.S.C. § 1114) 3 (Against All Defendants)

4 73. In response to the allegations contained in Paragraph 73, Skunk re- 5 alleges and incorporates by reference its response to the all allegations contained in 6 7 the First Amended Complaint as though fully set forth herein. 8 74. In response to the allegations contained in Paragraph 74, Skunk admits 9 that this purports to be an action for trademark infringement arising under 15 U.S.C. 10 11 § 1114 but denies that either Skunk or Vatra has committed trademark infringement. 12 75. In response to the allegations contained in Paragraph 75, Skunk admits 13 that according to the U.S. Patent and Trademark Office TESS database, HBI is 14 15 identified as the owner of U.S. Registration Nos. 2,435,666, 5,344,902, and 16 5,344,903 for the mark SKUNK BRAND and U.S. Registration Nos. 4,436,677 and 17 4,569,712 for the mark SKUNK. Skunk denies that HBI uses the SKUNK BRAND 18 19 and SKUNK marks in commerce on all of the goods listed in those registrations. 20 Skunk further challenges the validity of the aforementioned registrations, as set forth 21 in its counterclaims and affirmative defenses below. Additionally, Skunk has filed 22 23 counterclaims petitioning to cancel U.S. Registration Nos. 2,435,666, 5,344,902,

24 4,436,677 and 4,569,712 in BBK Tobacco & Foods, LLP d/b/a HBI International, v. 25 Skunk, Inc., Opposition Proceeding No. 91241486, currently pending before the 26 27 Trademark Trial and Appeal Board. Except as expressly admitted herein, Skunk 28

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1 lacks knowledge and information sufficient to form a belief as to the truth of the 2 remaining allegations contained in Paragraph 75 and therefore denies the allegations. 3 76. In response to the allegations contained in Paragraph 76, Skunk admits 4 5 that according to the U.S. Patent and Trademark Office TESS database: U.S. 6 Registration No. 2,435,666 issued from an application filed September 9, 1998; U.S. 7 Registration No. 4,436,677 issued from an application filed July 8, 2013; U.S 8 9 Registration No. 4,569,712 issued from an application filed June 25, 2013; and U.S. 10 Registration No. 5,344,902 issued from an application filed February 15, 2017. 11 Skunk, however, challenges the validity of the aforementioned registrations and the 12 13 relevance of such registrations to the present case. Except as expressly admitted 14 herein, Skunk lacks knowledge and information sufficient to form a belief as to the 15 truth of the remaining allegations contained in Paragraph 76 and therefore denies the 16 17 allegations. 18 77. Skunk denies the allegations contained in Paragraph 77. 19 78. Skunk denies the allegations contained in Paragraph 78. 20 21 79. Skunk denies the allegations contained in Paragraph 79.

22 80. Skunk denies the allegations contained in Paragraph 80. 23 81. Skunk denies the allegations contained in Paragraph 81. 24 25 82. Skunk denies the allegations contained in Paragraph 82.

26 83. Skunk denies the allegations contained in Paragraph 83. 27 28

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COUNT 2 1 (Federal False Designation of Origin and Representation) 2 (15 U.S.C. § 1125(a)) 3 (Against All Defendants) 4 84. In response to the allegations contained in Paragraph 84, Skunk re- 5 alleges and incorporates by reference its response to the all allegations contained in 6 7 the First Amended Complaint as though fully set forth herein. 8 85. In response to the allegations contained in Paragraph 85, Skunk admits 9 that this purports to be an action for false designation of origin arising under 10 11 15 U.S.C. § 1125(a) but denies that either Skunk or Vatra has committed any act that 12 constitutes false designation or origin pursuant to 15 U.S.C. § 1125(a). 13 86. Skunk lacks knowledge and information sufficient to form a belief as 14 15 to the truth of the allegations contained in Paragraph 86 and therefore denies the 16 allegations. 17 87. Skunk lacks knowledge and information sufficient to form a belief as 18 19 to the truth of the allegations contained in Paragraph 87 and therefore denies the 20 allegations. 21 88. In response to the allegations contained in Paragraph 88, Skunk admits 22 23 that Skunk uses the name “Skunk” on or in connection with Skunk’s “smell proof”

24 bag products and admits that Vatra has sold certain Skunk products that are branded 25 with Skunk’s name and marks. Skunk denies that Vatra uses the “Skunk” name or 26 27 mark on or in connection with its bag products.

28 89. Skunk denies the allegations contained in Paragraph 89.

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1 90. In response to allegations contained in the first sentence of 2 Paragraph 90, Skunk admits that HBI has not expressly authorized Defendants to 3 “use the Skunk name,” but denies that such authorization is needed. Skunk further 4 5 alleges that HBI has been aware of Skunk’s use of the Skunk name and mark for 6 several years and despite ample opportunity to raise any objection it had thereto, 7 failed to do so until 2018. Skunk denies the allegations contained in the second 8 9 sentence of Paragraph 90. 10 91. Skunk denies the allegations contained in Paragraph 91. 11 92. Skunk denies the allegations contained in Paragraph 92. 12 13 93. Skunk denies the allegations contained in Paragraph 93. 14 94. Skunk denies the allegations contained in Paragraph 94. 15 95. Skunk denies the allegations contained in Paragraph 95. 16 17 96. Skunk denies the allegations contained in Paragraph 96. 18 97. In response to the allegations contained in Paragraph 97, Skunk admit 19 that HBI’s First Amended Complaint purports to seek “an order from this Court 20 21 under 15 U.S.C. § 1118 compelling Defendants to destroy all materials bearing the

22 Skunk name or any variants thereof,” but denies that HBI is entitled to such an order. 23 24 25 26 27 28

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COUNT 3 1 (Cancellation of Registration) 2 (15 U.S.C. § 1064) 3 (Against Defendant Skunk, Inc.) 4 98. In response to the allegations contained in Paragraph 98, Skunk re- 5 alleges and incorporates by reference its response to the all allegations contained in 6 7 the First Amended Complaint as though fully set forth herein. 8 99. Skunk admits the allegations contained in Paragraph 99. 9 100. Skunk admits the allegations contained in the first sentence of 10 11 Paragraph 100. The second sentence of Paragraph 100 states a legal proposition to 12 which no response is required. 13 Likelihood of Confusion Grounds for Cancellation 14 15 101. In response to the allegations contained in Paragraph 101, Skunk admits 16 that according to the U.S. Patent and Trademark Office TESS database, HBI is 17 identified as the owner of U.S. Registration Nos. 2,435,666, 5,344,902, and 18 19 5,344,903 for the mark SKUNK BRAND and U.S. Registration Nos. 4,436,677 and 20 4,569,712 for the mark SKUNK. Skunk denies that HBI uses the SKUNK BRAND 21 and SKUNK marks in commerce on all of the goods listed in those registrations. 22 23 Skunk further challenges the validity of the aforementioned registrations, as set forth

24 in its counterclaims and affirmative defenses below. Additionally, Skunk has filed 25 counterclaims petitioning to cancel U.S. Registration Nos. 2,435,666, 5,344,902, 26 27 4,436,677 and 4,569,712 in BBK Tobacco & Foods, LLP d/b/a HBI International, v.

28 Skunk, Inc., Opposition Proceeding No. 91241486, currently pending before the

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1 Trademark Trial and Appeal Board. Except as expressly admitted herein, Skunk 2 lacks knowledge and information sufficient to form a belief as to the truth of the 3 remaining allegations contained in Paragraph 101 and therefore denies the 4 5 allegations. 6 102. In response to the allegations contained in Paragraph 102, Skunk admit 7 that its U.S. Registration No. 5,072,795 is for the word mark SKUNK and that the 8 9 term “Skunk” also appears as part of the marks identified in U.S. Registration Nos. 10 2,435,666, 4,436,677, 4,569,712, 5,344,902, and 5,344,903; Skunk denies, however, 11 that the parties respective use or registration of marks containing the term “Skunk” 12 13 for their respective goods creates a likelihood of confusion. 14 103. Skunk denies the allegations contained in Paragraph 103. 15 104. Skunk denies the allegations contained in Paragraph 104. 16 17 105. Skunk denies the allegations contained in Paragraph 105. 18 106. Skunk denies the allegations contained in Paragraph 106. 19 Non-Use Grounds for Cancellation 20 21 107. In response to the allegations contained in Paragraph 107, Skunk admits

22 that Skunk has not used the Registered Mark in commerce in connection with some 23 of the Identified Goods, but disputes HBI’s definition of these supposedly “Never- 24 25 Used Goods,” as it is overbroad and includes goods on which Skunk has used its

26 registered SKUNK mark in commerce. 27 108. Skunk denies the allegations contained in Paragraph 108. 28

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1 109. Skunk denies the allegations contained Paragraph 109. 2 110. Skunk denies the allegations contained in Paragraph 110. 3 111. Skunk denies the allegations contained Paragraph 111. 4 5 112. Skunk denies the allegations contained Paragraph 112. 6 Abandonment Grounds for Cancellation 7 113. Skunk denies the allegations contained in Paragraph 113. 8 9 114. Skunk denies the allegations contained in Paragraph 114. 10 115. Skunk denies the allegations contained in Paragraph 115. 11 116. Skunk denies the allegations contained in Paragraph 116. 12 13 Fraud Grounds for Cancellation 14 117. In response to the allegations contained in Paragraph 117, Skunk admits 15 that in applying for the mark that matured into U.S. Registration No. 5,072,795, 16 17 Skunk’s Attorney of Record represented on March 24, 2016 that “the applicant 18 [Skunk] is using the mark in commerce on or in connection with the goods/services 19 in the application.” 20 21 118. In response to the allegations contained in Paragraph 118, Skunk admits

22 that while the mark was, in fact, being used in commerce on or in connection with 23 the goods listed in the application, it was not in use in commerce on or in connection 24 25 with every one of the goods listed in the application.

26 119. In response to the allegations contained in Paragraph 119, Skunk admits 27 that while the mark was, in fact, being used in commerce on or in connection with 28

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1 the goods listed in the application, it was not in use in commerce on or in connection 2 with every one of the goods listed in the application. 3 120. Skunk denies the allegations contained in Paragraph 120. 4 5 121. Skunk denies the allegations contained in Paragraph 121. 6 122. Paragraph 122 states a legal conclusion to which no response is 7 required. To the extent a response is required, Skunk denies the representation was 8 9 material as to the specific goods for which the mark was in use, as Skunk could have 10 obtained the registration as to those goods. Except as expressly admitted herein, 11 Skunk is without information and knowledge sufficient to form a belief as to what 12 13 the PTO relied upon and therefore denies the remaining allegations in Paragraph 14 122. 15 123. In response to the allegations contained in Paragraph 123, Skunk admits 16 17 that the application listed Section 1(a) as the filing basis and admits that Skunk’s

18 Attorney of Record represented that “the applicant [Skunk] is using the mark in 19 commerce on or in connection with the goods/services in the application.” Except as 20 21 expressly admitted herein, Skunk denies the remaining allegations contained in

22 Paragraph 123. 23 124. Skunk denies the allegations contained in Paragraph 124. 24 25 125. Skunk denies the allegations contained in Paragraph 125.

26 126. Skunk denies the allegations contained in Paragraph 126. 27 127. Skunk denies the allegations contained in Paragraph 127. 28

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1 128. In response to the allegations contained in Paragraph 128, Skunk admits 2 that U.S. Registration No. 5,072,795 issued to Skunk. Except as expressly admitted 3 herein, Skunk is without information and knowledge sufficient to form a belief as to 4 5 what the PTO relied upon and therefore denies the remaining allegations in 6 Paragraph 128. 7 129. In response to the allegations contained in Paragraph 129, Skunk admits 8 9 that Skunk’s Attorney of Record filed the application for registration of the mark for 10 the purpose of seeking registration of the mark, but denies any suggestion that there 11 was an intent to mislead or deceive the PTO. 12 13 130. Skunk denies the allegations contained in Paragraph 130. 14 131. Skunk denies the allegations contained in Paragraph 131. 15 132. Skunk denies the allegations contained in Paragraph 132. 16 17 133. Skunk denies the allegations contained in Paragraph 133. 18 134. Skunk denies the allegations contained in Paragraph 134. 19 135. In response to the allegations contained in Paragraph 135, Skunk admits 20 21 that Skunk has asserted counterclaims against HBI in BBK Tobacco & Foods, LLP

22 d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486, 23 currently pending before the Trademark Trial and Appeal Board. Except as expressly 24 25 admitted herein, Skunk denies the remaining allegations contained in Paragraph 135.

26 136. Skunk denies the allegations contained in Paragraph 136. 27 137. Skunk denies the allegations contained in Paragraph 137. 28

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1 138. Skunk denies the allegations contained in Paragraph 138. 2 139. Skunk denies the allegations contained in Paragraph 139. 3 140. Skunk denies the allegations contained in Paragraph 140. 4 5 COUNT 4 (Refusal of Application for Registration) 6 (15 U.S.C. §§ 1052(d), 1051(a)) 7 (Against Defendant Skunk, Inc.) 8 141. In response to the allegations contained in Paragraph 141, Skunk re- 9 alleges and incorporates by reference its response to the all allegations contained in 10 11 the First Amended Complaint as though fully set forth herein. 12 142. In response to the allegations contained in Paragraph 142, Skunk admits 13 that on February 16, 2017, Skunk (through its Attorney of Record) filed an 14 15 application to register the below depicted mark (the “Applied-for Mark”) for a 16 number of different types of bags and related products in International Class 18 (the 17 “PTO Application”). 18 19 20 21 22 23 Likelihood of Confusion Grounds for Refusal 24 143. In response to the allegations contained in Paragraph 143, Skunk admits 25 26 that according to the U.S. Patent and Trademark Office TESS database, HBI is 27 identified as the owner of U.S. Registration Nos. 2,435,666, 5,344,902, and 28

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1 5,344,903 for the mark SKUNK BRAND and U.S. Registration Nos. 4,436,677 and 2 4,569,712 for the mark SKUNK. Skunk denies that HBI uses the SKUNK BRAND 3 and SKUNK marks in commerce on all of the goods listed in those registrations. 4 5 Skunk further challenges the validity of the aforementioned registrations, as set forth 6 in its counterclaims and affirmative defenses below. Additionally, Skunk has filed 7 counterclaims petitioning to cancel U.S. Registration Nos. 2,435,666, 5,344,902, 8 9 4,436,677 and 4,569,712 in BBK Tobacco & Foods, LLP d/b/a HBI International, v. 10 Skunk, Inc., Opposition Proceeding No. 91241486, currently pending before the 11 Trademark Trial and Appeal Board. Except as expressly admitted herein, Skunk 12 13 lacks knowledge and information sufficient to form a belief as to the truth of the 14 remaining allegations contained in Paragraph 143 and therefore denies the 15 allegations. 16 17 144. In response to the allegations contained in Paragraph 144, Skunk admits

18 that Skunk’s Applied-for Mark seeks registration of a design mark (as depicted in 19 the above response to Paragraph 142 and incorporated herein by refence), which 20 21 includes the term “Skunk” as a component of the mark. Skunk admits that the term

22 “Skunk” also appears as part of the marks identified in U.S. Registration Nos. 23 2,435,666, 4,436,677, 4,569,712, 5,344,902, and 5,344,903. Skunk denies, however, 24 25 that the parties respective use or registration of marks containing the term “Skunk”

26 for their respective goods creates a likelihood of confusion. 27 145. Skunk denies the allegations contained in Paragraph 145. 28

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1 146. Skunk denies the allegations contained in Paragraph 146. 2 147. Skunk denies the allegations contained in Paragraph 147. 3 148. Skunk denies the allegations contained in Paragraph 148. 4 5 149. Skunk denies the allegations contained in Paragraph 149. 6 150. Skunk denies the allegations contained in Paragraph 150. 7 151. Skunk denies the allegations contained in Paragraph 151. 8 9 Non-Use Grounds for Refusal 10 152. In response to the allegations contained in Paragraph 152, Skunk admits 11 that Skunk has not used the Applied-for Mark in commerce in connection with some 12 13 of the goods identified in its PTO Application, but disputes HBI’s definition of these

14 supposedly “Non-Used Goods,” as it is overbroad and includes goods on which 15 Skunk has used the Applied-for Mark in commerce. 16 17 153. Skunk denies the allegations contained in Paragraph 153. 18 154. Skunk denies the allegations contained in Paragraph 154. 19 155. Skunk denies the allegations contained in Paragraph 155. 20 21 156. Skunk denies the allegations contained in Paragraph 156.

22 157. Skunk denies the allegations contained in Paragraph 157. 23 158. Skunk denies the allegations contained in Paragraph 158. 24 25 159. Skunk denies the allegations contained in Paragraph 159.

26 160. Skunk denies the allegations contained in Paragraph 160. 27 28

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Fraud Grounds for Refusal 1 2 161. In response to the allegations contained in Paragraph 161, Skunk admits 3 that in the PTO Application (Serial No. 87/339,278), Skunk’s Attorney of Record 4 5 represented on February 16, 2017 that Skunk is “using [the Applied-for Mark] in 6 commerce on or in connection with the goods/services in the application.” 7 162. In response to the allegations contained in Paragraph 162, Skunk admits 8 9 that while the mark was, in fact, being used in commerce on or in connection with 10 the goods listed in the application, it was not in use in commerce on or in connection 11 with every one of the goods listed in the application. 12 13 163. In response to the allegations contained in Paragraph 163, Skunk admits 14 that while the mark was, in fact, being used in commerce on or in connection with 15 the goods listed in the application, it was not in use in commerce on or in connection 16 17 with every one of the goods listed in the application. 18 164. Skunk denies the allegations contained in Paragraph 164. 19 165. In response to the allegations contained in Paragraph 165, Skunk admits 20 21 that Skunk’s Attorney of Record filed the application for registration of the mark for

22 the purpose of seeking registration of the mark, but denies any suggestion that there 23 was an intent to mislead or deceive the PTO. 24 25 166. Skunk denies the allegations contained in Paragraph 166.

26 167. Skunk denies the allegations contained in Paragraph 167. 27 168. Skunk denies the allegations contained in Paragraph 168. 28

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1 169. Skunk denies the allegations contained in Paragraph 169. 2 170. Skunk denies the allegations contained in Paragraph 170. 3 171. Skunk denies the allegations contained in Paragraph 171. 4 5 172. Skunk denies the allegations contained in Paragraph 172. 6 COUNT 5 7 (Trademark Infringement under Arizona Common Law) (Against All Defendants) 8 9 173. In response to the allegations contained in Paragraph 173, Skunk re- 10 alleges and incorporates by reference its response to the all allegations contained in 11 the First Amended Complaint as though fully set forth herein. 12 13 174. In response to the allegations contained in Paragraph 174, Skunk admits 14 that Count 5 of the First Amended Complaint purports to bring an action for 15 infringement under the common law of the State of Arizona, but denies that either 16 17 Skunk or Vatra has committed any act of infringement. 18 175. Skunk admits Skunk and Vatra have marketed certain of their 19 respective products at trade shows for consumers interested in smoking-related 20 21 products. Skunk denies that Skunk-branded bags are smoking-related goods and

22 alleges the bags have a broad-array of uses and markets. Except as expressly 23 admitted herein, Skunk denies the remaining allegations in Paragraph 175. 24 25 176. Skunk lacks knowledge and information sufficient to form a belief as

26 to the truth of the allegations contained in Paragraph 176 and therefore denies the 27 allegations. 28

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1 177. Skunk lacks knowledge and information sufficient to form a belief as 2 to the truth of the allegations contained in Paragraph 177 and therefore denies the 3 allegations. 4 5 178. In response to the allegations contained in Paragraph 178, Skunk denies 6 that either Skunk or Vatra has any physical retail location or place of business in 7 Arizona, but admits that Skunk’s smell-proof bag products may be purchased by 8 9 consumers on the Skunk Website and shipped throughout the United States. Skunk 10 further admits that Skunk and Vatra have shipped Skunk-branded “smell proof” bags 11 to Arizona but alleges that shipments to Arizona constitute an exceedingly small 12 13 percentage of sales of Skunk-branded bags. 14 179. In response to the allegations contained in Paragraph 179, Skunk admits 15 that HBI has not expressly authorized Defendants to “use the Skunk name in 16 17 connection with any of their products in Arizona or elsewhere,” but denies that such

18 authorization is needed. Skunk further alleges that HBI has been aware of Skunk’s 19 use of the Skunk name and mark for several years and despite ample opportunity to 20 21 raise any objection it had thereto, failed to do so until 2018.

22 180. Skunk denies the allegations contained in Paragraph 180. 23 181. Skunk denies the allegations contained in Paragraph 181. 24 25 182. Skunk denies the allegations contained in Paragraph 182.

26 183. Skunk denies the allegations contained in Paragraph 183. 27 28

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COUNT 6 1 (Unfair Competition under Arizona Common Law) 2 (Against All Defendants 3 184. In response to the allegations contained in Paragraph 184, Skunk re- 4 5 alleges and incorporates by reference its response to the all allegations contained in 6 the First Amended Complaint as though fully set forth herein. 7 185. In response to the allegations contained in Paragraph 185, Skunk admits 8 9 that Count 6 purports to be an action for unfair competition arising under the 10 common law of the State of Arizona, but denies that either Skunk or Vatra has 11 committed any act that constitutes unfair competition. 12 13 186. Skunk denies that either Skunk or Vatra has any physical retail location

14 or place of business in Arizona, but admits that Skunk’s smell-proof bag products 15 may be purchased by consumers on the Skunk Website and shipped throughout the 16 17 United States. Skunk further admits that Skunk and Vatra have shipped Skunk-

18 branded “smell proof” bags to Arizona but alleges that shipments to Arizona 19 constitute an exceedingly small percentage of sales of Skunk-branded bags. Skunk 20 21 alleges that the bags have a broad-array of uses and markets. Except as expressly

22 admitted herein, Skunk denies the remaining allegations in Paragraph 186. 23 187. Skunk lacks knowledge and information sufficient to form a belief as 24 25 to the truth of the allegations contained in Paragraph 187 and therefore denies the

26 allegations. 27 28

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1 188. Skunk lacks knowledge and information sufficient to form a belief as 2 to the truth of the allegations contained in Paragraph 188 and therefore denies the 3 allegations. 4 5 189. In response to the allegations contained in Paragraph 189, Skunk denies 6 that either Skunk or Vatra has any physical retail location or place of business in 7 Arizona, but admits that Skunk’s smell-proof bag products may be purchased by 8 9 consumers on the Skunk Website and shipped throughout the United States. Skunk 10 further admits that Skunk and Vatra have shipped Skunk-branded “smell proof” bags 11 to Arizona but alleges that shipments to Arizona constitute an exceedingly small 12 13 percentage of sales of Skunk-branded bags. 14 190. In response to the allegations contained in Paragraph 190, Skunk admits 15 that HBI has not expressly authorized Defendants to “use the Skunk name in 16 17 connection with any of their products in Arizona or elsewhere,” but denies that such

22 191. Skunk denies the allegations contained in Paragraph 191. 23 192. Skunk denies the allegations contained in Paragraph 192. 24 25 193. Skunk denies the allegations contained in Paragraph 193. 26 27 28

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PRAYER FOR RELIEF 1 2 No response is required to The Prayer for Relief (including paragraphs 1-15 3 contained therein). To the extent a response is required, however, Skunk denies that 4 5 HBI is entitled to any of the relief requested therein. 6 AFFIRMATIVE DEFENSES 7 FIRST AFFIRMATIVE DEFENSE 8 (Unclean Hands/Fraud/Misuse of the Federal Registration Symbol) 9 194. HBI’s action is barred by the doctrine of unclean hands because HBI 10 11 bears fault for the damages or injury it has or will suffer. 12 195. HBI is precluded by its unclean hands from relying on its pleaded 13 registrations and common law rights, as upon information and belief, HBI and its 14 15 predecessors in interest to the asserted marks have made false representations about 16 the scope of their rights in the SKUNK and SKUNK BRAND marks. Among other 17 things, as set forth in more detail in Skunk’s counterclaims (and incorporated herein 18 19 by reference), HBI has knowingly and willfully engaged in an extensive pattern of 20 misusing the federal registration symbol, ®, in connection with the terms SKUNK 21 and SKUNK BRAND, in an attempt to deceive or mislead consumers and third 22 23 parties into believing these marks were registered, either before they were registered

24 and/or for goods not covered by HBI’s federal registrations. 25 196. In addition to its misuse of the federal registration symbol outlined in 26 27 the Skunk’s counterclaims (relating to the pleaded registrations), HBI is knowingly

28 and willfully using the federal registration symbol, ®, next to the word SKUNK in

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1 conjunction with disposable clear plastic baggies—on both the packaging and the 2 product itself—despite the fact that the mark SKUNK is not registered for these 3 goods and, upon information and belief, is doing so in an attempt to deceive or 4 5 mislead consumers and third parties into believing the SKUNK or SKUNK BRAND 6 mark is registered for these goods and in an effort to overstate its purported 7 trademark rights vis-a-vis Defendants. 8 9 197. The doctrine of unclean hands also precludes HBI from relying on U.S. 10 Registration No. 2,435,666, as upon information and belief, multiple material false 11 representations were knowingly made to the USPTO, with the intent to deceive the 12 13 USPTO, in order to secure and maintain that registration. These representations are

14 outlined more fully in Skunk’s First Counterclaim (and Skunk incorporates herein 15 the allegations contained in that counterclaim by reference) and include 16 17 representations regarding the use of the SKUNK BRAND mark in commerce for the

18 goods identified in that registration made in a September 5, 2000 “Statement of Use 19 Under 37 CFR §2.88, with Declaration,” a June 28, 2006 “Combined Declaration of 20 21 Use and Incontestability Under Sections 8 & 15,” and an April 22, 2010 “Combined

22 Declaration of Use and/or Excusable Nonuse/Application for Renewal of 23 Registration of a Mark under Sections 8 & 9.” 24 25 198. Additionally, upon information and belief, HBI knowingly hid from the

26 USPTO the ties between the marks for which it has sought registration and the use 27 of its products by consumers in conjunction with cannabis in an effort to obtain 28

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1 registration for marks that are either generic or are merely descriptive and lack 2 secondary meaning, as well as in order to hide unlawful use of its products by 3 targeted consumer groups. 4 5 SECOND AFFIRMATIVE DEFENSE (Laches, Estoppel, Waiver, or Acquiescence) 6 7 199. HBI’s action is barred, in whole or in part, by the doctrine of laches, 8 estoppel, acquiescence, and/or waiver. 9 200. Skunk has been using the SKUNK word mark since at least 2014 in 10 11 connection with its smell proof line of bags. 12 201. Skunk has been using the below-depicted design (both alone and 13 accompanied by the word “Skunk”) in connection with its smell proof line of bags 14 15 since at least 2014. 16 17 18 19

20 202. Upon information and belief, HBI has been aware of Skunk Inc.’s use 21 of the marks depicted in the proceeding paragraphs since 2014 or shortly thereafter. 22 23 203. Upon information and belief, HBI has attended multiple tradeshows at

24 which Skunk’s SKUNK-branded bags were exhibited. 25 204. Skunk also owns U.S. Registration No. 5,072,795, which is an active 26 27 registration for the SKUNK word mark. The application that matured into U.S.

28 Registration No. 5,072,795 was published for opposition on August 16, 2016.

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1 205. Despite having had knowledge of Skunk’s use of the SKUNK mark and 2 name in connection with Skunk’s smell-proof bags for a number of years, HBI did 3 not object to that Skunk’s use of that name and mark until well into 2018. 4 5 206. HBI did not oppose registration of the mark shown in U.S. Registration 6 No. 5,072,795 when the mark shown there in was published for opposition in 2016. 7 207. HBI knowingly allowed and acquiesced in Skunk, Inc.’s use of the 8 9 SKUNK word mark. 10 208. As a result of HBI’s delay in asserting claims against Skunk’s use of 11 the SKUNK name and mark, Defendants have been prejudiced. 12 13 209. Between the time HBI first had knowledge of Skunk’s use of the

14 SKUNK name and mark and the time it first object to Skunk’s use of the SKUNK 15 name and mark, Skunk grew its business and invested in its mark. During this period, 16 17 SKUNK built considerable goodwill in its SKUNK name and mark. 18 210. Defendants believed that HBI did not plan to assert any claims based 19 on Skunk’s use of the SKUNK name and mark for Skunk’s bag products. 20 21 211. Defendants relied upon such belief and HBI’s silence.

22 212. As a result of above, HBI’s is barred from objecting to Skunk’s use and 23 registration of the SKUNK mark on Skunk’s smell proof line of bags. 24 25 THIRD AFFIRMATIVE DEFENSE (Prior Registration/Morehouse Defense) 26 27 213. HBI’s request that Skunk’s application for registration of U.S. Serial

28 No. 87/339,278 be refused is barred by the Skunk’s ownership of a prior registration

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1 for the mark SKUNK for “Backpacks, book bags, sports bags, bum bags, wallets and 2 handbags; Beach bags; Belt bags; Book bags; Diaper bags; Drawstring bags; Dry 3 bags; Duffle bags; Evening bags; Flight bags; Hiking bags; Hip bags; Hobo bags; 4 5 Hunting bags; Kit bags; Messenger bags; Sling bags; Suit bags; Tote bags; Traveling 6 bags; Wristlet bags,” as set forth in U.S. Registration No. 5,072,795. 7 214. The application that matured into U.S. Registration No. 5,072,795 was 8 9 published for opposition on August 16, 2016 and was not opposed by HBI during 10 that opposition period. 11 215. As HBI bases its opposition of U.S. Application Serial No. 87/339,278 12 13 on the word portion of that mark (namely, the term “Skunk”) and U.S. Registration 14 No. 5,072,795 covers the word mark SKUNK for goods that are substantially similar 15 to those in U.S. Application Serial No. 87/339,278, the period of delay during which 16 17 HBI failed to object registration is properly measured by the August 16, 2016 18 publication of U.S. Application Serial No. 87/339,278 and bars HBI from opposing 19 registration of U.S. Application Serial No. 87/339,278. 20 21 FOURTH AFFIRMATIVE DEFENSE (Non-Use/Abandonment) 22 23 216. The federal registrations HBI asserts in this action include goods on

24 which the SKUNK or SKUNK BRAND mark have never been used and/or for which 25 use of the SKUNK or SKUNK BRAND mark have been abandoned in that such use 26 27 has been discontinued by HBI with no intent to resume. These goods include at least 28

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1 the following items: “cigarettes,” “tobacco,” “snuff,” “pipes for smoking,” and 2 “matches.” 3 217. Paragraph 23 of HBI’s First Amended Complaint, as well as Exhibit D, 4 5 also list goods that were previously deleted from U.S. Registration No. 4,436,677 6 and for which the SKUNK BRAND mark is no longer registered and, upon 7 information and belief, is not in use, including at least the following items: “cigarette 8 9 rolling machines,” “cigarettes containing tobacco substitutes not for medical 10 purposes,” “machines allowing smokers to make cigarettes by themselves,” and 11 “pocket apparatus for self-rolling cigarettes.” 12 13 218. HBI has no rights in the SKUNK or SKUNK BRAND mark as to the 14 goods listed in the proceeding two paragraphs as to the extent it ever used the 15 SKUNK or SKUNK BRAND mark in connection with those goods, that use has 16 17 been discontinued and the marks have been abandoned as to these goods. 18 FIFTH AFFIRMATIVE DEFENSE 19 (HBI’s Asserted Marks are Generic and/or Merely Descriptive and Lack Secondary Meaning) 20 21 219. The term “Skunk” is a generic term for cannabis (marijuana) and/or

22 certain high-THC strains of cannabis. 23 220. As detailed more fully in Skunk’s counterclaims and incorporated by 24 25 reference herein, the relevant public would recognize that the term “skunk” when

26 used in connection with HBI’s smoking-related products to denotes that the item is 27 to be used for smoking (or preparing for smoking) cannabis or marijuana. 28

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1 221. SKUNK and SKUNK BRAND are generic as used in conjunction with 2 “cigarettes” and “herbs for smoking” as members of the relevant public would 3 understand SKUNK and SKUNK BRAND to refer to the subset of cigarettes that 4 5 contain cannabis or marijuana or to cannabis or marijuana, itself. 6 222. SKUNK and SKUNK BRAND are merely descriptive and lack 7 secondary meaning as used in conjunction with “electric cigarettes,” “electronic 8 9 cigarettes,” “electronic cigarettes for use as an alternative to traditional cigarettes,” 10 “electronic cigars,” “ceramic screens for e-cigarettes,” “cigarette tips made of glass, 11 namely, smokers’ mouthpieces for cigarettes,” and “pre-rolled smoking tube made 12 13 of hemp-based paper, namely, cigarette and cigar tubes,” “hemp-based wrap for

14 smoking, namely, cigarette rolling papers,” and “hemp cones.” Members of the 15 relevant public would understand these terms when used in conjunction with the 16 17 goods listed in this paragraph to describe a subset of these products—namely those 18 designed to be used in conjunction with cannabis or marijuana. Alternatively, these 19 terms as used in conjunction with the foregoing goods describe a quality, 20 21 characteristic, function, feature, purpose, or use of the specified goods (namely, the

22 ability to use the product with cannabis or marijuana) and lack secondary meaning. 23 223. As a result of the foregoing, each of the registrations HBI asserts in this 24 25 proceeding is invalid, at least in part.

26 224. Further because the asserted marks are generic and/or merely 27 descriptive and lack secondary meaning as applied to the above-listed goods, HBI 28

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1 has no rights at common law or otherwise in the SKUNK and SKUNK BRAND 2 marks as applied to these goods. 3 SIXTH AFFIRMATIVE DEFENSE 4 (Lack of Common Law Rights/Priority) 5 225. To the extent HBI purports to asserts that it has common law rights in 6 7 the SKUNK or SKUNK BRAND mark (or other purported “Skunk” marks) for 8 goods not listed in its five asserted federal registrations (e.g., those item listed in 9 Exhibit A not included in its registrations), its claims should be barred as HBI has 10 11 not plead allegations necessary to support an assertion that HBI has common law

12 rights in these marks, much less common law rights that pre-date Skunk’s first use 13 of its SKUNK mark. 14 15 226. The First Amended Complaint does allege when and how such marks 16 were first used in commerce in the United States in connection with each these non- 17 registered goods, the scope of such use, that these marks have acquired secondary 18 19 meaning, or that HBI’s alleged common law trademark rights as to these goods

20 pre-dates Skunk’s first use of the SKUNK mark for its smell proof bag products. 21 Accordingly, HBI should be precluded from relying on any purported common law 22 23 rights as to these non-registered goods.

24 227. Additionally, upon information and belief, HBI does not have prior 25 rights in the marks it has asserted in the First Amended Complaint for at least certain 26 27 categories of goods on which it purports to rely. 28

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COUNTERCLAIMS 1 2 FIRST COUNTERCLAIM 3 (Cancellation of U.S. Registration No. 2,435,666)

4 228. HBI is the owner, by assignment, of U.S. Registration No. 2,435,666 5 for the mark SKUNK BRAND for “cigarette rolling papers; cigarettes; tobacco; 6 7 snuff; pipes for smoking; cigarette lighters not of precious metal; and matches” in 8 International Class 034, which issued on March 13, 2001. 9 229. U.S. Registration No. 2,435,666 issued from U.S. Application Serial 10 11 No. 75/550,748.

12 230. Skunk is damaged by HBI’s continued registration of the SKUNK 13 BRAND mark, as set forth in U.S. Registration No. 2,435,666, as HBI has asserted 14 15 this registration (a) in this above-captioned litigation, (b) in a Notice of Opposition 16 it filed with the Trademark Trial and Appeal Board opposing registration of U.S. 17 Application Serial No. 87/339,278, owned by Skunk, Inc. (BBK Tobacco & Foods, 18 19 LLP d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486), 20 and (c) in a Petition to Cancel it filed with the Trademark Trial and Appeal Board 21 seeking cancellation of U.S. Registration No. 5,072,795, owned by Skunk (BBK 22 23 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Cancellation No.

24 92071164). 25 Fraud Grounds for Cancellation 26 27 231. Upon information and belief, the SKUNK BRAND mark, as identified

28 in U.S. Registration No. 2,435,666, has not been used in commerce in the United

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1 States on or in connection with “cigarettes,” “tobacco,” “snuff,” “pipes for 2 smoking,” and/or “matches.” 3 232. On or about September 5, 2000, the Attorney of Record for the then- 4 5 owner of U.S. Application Serial No. 75/550,748 submitted a “Statement of Use 6 Under 37 CFR §2.88, with Declaration” to the United States Patent and Trademark 7 Office (“USPTO”). That “Statement of Use Under 37 CFR §2.88, with Declaration” 8 9 represented that: 10 Applicant is using the [SKUNK BRAND mark] in interstate commerce 11 on or in connection with the following goods:

12 CIGARETTE ROLLING PAPERS; CIGARETTES; TOBACCO; 13 SNUFF; PIPES FOR SMOKING; CIGARETTE LIGHTERS NOT OF PRECIOUS METAL; AND MATCHES 14 15 (the “2000 Representation”).

16 233. The “Statement of Use Under 37 CFR §2.88, with Declaration” 17 included a Declaration executed by Orion Anthony, Director, on behalf of SBI 18 19 Enterprises, Ltd. (the then-owner of U.S. Application Serial No. 75/550,748).

20 234. Upon information and belief, at the time the “Statement of Use Under 21 37 CFR §2.88, with Declaration” was submitted to the USPTO, the SKUNK 22 23 BRAND mark was not in use in commerce in the United States on or in connection

24 with at least one of the following items: “cigarettes,” “tobacco,” “snuff,” “pipes for 25 smoking,” and/or “matches.” 26 27 235. Upon information and belief, at the time the “Statement of Use Under

28 37 CFR §2.88, with Declaration” was submitted to the USPTO, the then-owner of

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1 U.S. Application Serial No. 75/550,748 knew that the 2000 Representation was 2 false. 3 236. Upon information and belief, the 2000 Representation was made 4 5 willfully and with the fraudulent intent to deceive the USPTO and to obtain 6 registration of the SKUNK BRAND mark for all of the listed goods despite the fact 7 the mark was not being used in commerce in the United States in connection with 8 9 one or more of the goods identified in the 2000 Representation. 10 237. In reliance on the 2000 Representation, the USPTO subsequently issued 11 U.S. Registration No. 2,435,666 for all of the aforementioned goods. 12 13 238. On or about June 28, 2006, the attorney for S.B.I. Enterprises E.C. Ltd.,

14 the then-owner of U.S. Registration No. 2,435,666, filed a “Combined Declaration 15 of Use and Incontestability Under Sections 8 & 15” with the USPTO on the 16 17 company’s behalf, which included a representation that “For International Class 034, 18 the owner is using or is using through a related company or licensee the mark in 19 commerce on or in connection with all goods and/or services listed in the existing 20 21 registration.” The “Combined Declaration of Use and Incontestability Under

22 Sections 8 & 15” was accompanied by a Declaration, executed by Orion Anthony, 23 President, on behalf of S.B.I. Enterprises E.C. Ltd., in which he represented: 24 25 The owner is using or is using through a related company or licensee the mark in commerce on or in connection with the goods/services 26 identified above, as evidenced by the attached specimen(s) showing the 27 mark as used in commerce. The mark has been in continuous use in commerce for five consecutive years after the date of registration, or 28 the date of publication under Section 12(c), and is still in use in

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1 commerce on or in connection with all goods and/or services as identified above. 2 3 Collectively, the representations in this paragraph are referred to as the “2006 4 Representations.” 5 239. Upon information and belief, at the time the “Combined Declaration of 6 7 Use and Incontestability Under Sections 8 & 15” was submitted to the USPTO, the 8 SKUNK BRAND mark was not in use in commerce in the United States on or in 9 connection with at least one of the following items: “cigarettes,” “tobacco,” “snuff,” 10 11 “pipes for smoking,” and/or “matches.” 12 240. Upon information and belief, at the time the 2006 Representations were 13 made, S.B.I. Enterprises E.C. Ltd. knew that they were false, as the SKUNK 14 15 BRAND mark was not in use in commerce in the United States with one or more of 16 the goods listed in the registration. 17 241. Upon information and belief, the “Combined Declaration of Use and 18 19 Incontestability Under Sections 8 & 15” was filed with the USPTO with the intent 20 to deceive and defraud the USPTO and to maintain the registration for all of the 21 listed goods even though the SKUNK BRAND mark was not in use in commerce in 22 23 the United States on many of the listed items.

24 242. In reliance on the 2006 Representations, on or about November 19, 25 2006, the USPTO accepted the Section 8 Affidavit and maintained the registration 26 27 for all of the listed goods. 28

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1 243. On or about April 22, 2010, the then-owner of U.S. Registration 2 No. 2,435,666—GBK Worldwide, Inc.—filed a “Combined Declaration of Use 3 and/or Excusable Nonuse/Application for Renewal of Registration of a Mark under 4 5 Sections 8 & 9” which included the representation that “ For International Class 034, 6 the mark is in use in commerce on or in connection with all goods or services listed 7 in the existing registration for this specific class . . . .” It also included a declaration, 8 9 executed by Basilia Kesselman, as President of GBK Worldwide, Inc., representing 10 that “the mark is in use in commerce on or in connection with the goods.” 11 Collectively, the representations in this paragraph are referred to as the “2010 12 13 Representations.”

14 244. Upon information and belief, at the time the “Combined Declaration of 15 Use and/or Excusable Nonuse/Application for Renewal of Registration of a Mark 16 17 under Sections 8 & 9” was submitted to the USPTO, the SKUNK BRAND mark 18 was not in use in commerce in the United States on or in connection with at least 19 one of the following items: “cigarettes,” “tobacco,” “snuff,” “pipes for smoking,” 20 21 and/or “matches.”

22 245. Upon information and belief, at the time the 2010 Representations were 23 made to the USPTO, GBK Worldwide, Inc. knew that they were false, as the 24 25 SKUNK BRAND mark was not in use in commerce in the United States with one or

26 more of the goods listed in the registration. 27 28

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1 246. Upon information and belief, the “Combined Declaration of Use and/or 2 Excusable Nonuse/Application for Renewal of Registration of a Mark under 3 Sections 8 & 9” was filed with the USPTO with the intent to deceive and defraud 4 5 the USPTO and to maintain and renew the registration for all of the listed goods 6 even though the mark was not in use on many of the listed items. 7 247. In reliance on the 2010 Representations, on or about April 27, 2010, the 8 9 USPTO accepted the Section 8 Affidavit and renewed the registration for all the 10 listed goods. 11 248. On the basis of the actions pleaded in the preceding paragraphs, fraud 12 13 has been committed against the USPTO multiple times in both registering and 14 maintaining U.S. Registration No. 2,435,666, in violation of 15 U.S.C. § 1064(3), 15 and the registration should be cancelled in its entirety. 16 17 Abandonment Grounds for Cancellation 18 249. Alternatively, upon information and belief, to the extent the SKUNK 19 BRAND mark was ever used in commerce in the United States on or in connection 20 21 with cigarettes, tobacco, snuff, pipes for smoking, and matches by HBI and/or any

22 of the prior owners of U.S. Registration No. 2,435,666, such use has been 23 discontinued for three or more years. 24 25 250. Upon information and belief, HBI does not presently use the SKUNK

26 BRAND mark in commerce in the United States on or in connection with cigarettes, 27 tobacco, snuff, pipes for smoking, and/or matches. 28

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1 251. Upon information and belief, HBI does not intend to commence/resume 2 use of the SKUNK BRAND mark in commerce in the United States on or in 3 connection with cigarettes, tobacco, snuff, pipes for smoking, and/or matches. 4 5 252. Due to HBI’s non-use of the registered SKUNK BRAND mark on 6 cigarettes, tobacco, snuff, pipes for smoking, and matches, U.S. Registration 7 No. 2,435,666 is subject to partial cancellation, pursuant to 15 U.S.C. § 1064, as to 8 9 these goods—namely, cigarettes, tobacco, snuff, pipes for smoking, and matches. 10 Cancellation on the Basis That the Mark is Generic 11 253. U.S. Registration No. 2,435,666 for the mark SKUNK BRAND 12 13 identifies (among other goods) “cigarettes.”

14 254. The term “skunk” is a generic term for cannabis (marijuana) and/or 15 certain high-THC strains of cannabis. 16 17 255. The relevant public would understand that the term “skunk” when used

18 to refer to or in conjunction with cigarettes to denote a known subset of cigarettes— 19 namely those cigarettes that contain cannabis or marijuana (e.g., joints, blunts, 20 21 spliffs, or cannabis cigarettes)—as opposed to tobacco cigarettes.

22 256. Upon information and belief, HBI markets the goods it offers under the 23 SKUNK BRAND mark primarily to smokers of cannabis and to consumers 24 25 interested in cannabis.

26 257. The term “skunk brand,” as used in conjunction with “cigarettes,” is 27 generic, as members of the relevant public would understand and use the term 28

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1 “skunk” or “skunk brand” to identify a specific type of cigarette—namely, a 2 cigarette containing cannabis or marijuana, as opposed to tobacco. 3 258. As the term “skunk brand” is generic for certain goods covered by U.S. 4 5 Registration No. 2,435,666, the registration is subject to cancellation pursuant to 15 6 U.S.C. § 1064. Alternatively, a disclaimer must be added to U.S. Registration No. 7 2,435,666, disclaiming the exclusive right to use “skunk” apart from the mark as 8 9 shown. 10 SECOND COUNTERCLAIM 11 (Cancellation of U.S. Registration No. No. 4,436,677) 12 259. HBI is the owner of U.S. Registration No. 4,436,677 for the mark 13 SKUNK for “cigarette lighters not of precious metal; cigarette papers; cigarette 14 15 rolling papers; cigarette tubes; herbs for smoking” in International Class 034, which 16 issued on November 19, 2013. 17 260. Skunk is damaged by HBI’s continued registration of the SKUNK 18 19 mark, as set forth in U.S. Registration No. 4,436,677, as HBI has asserted this 20 registration (a) in this above-captioned litigation, (b) in a Notice of Opposition it 21 filed with the Trademark Trial and Appeal Board opposing registration of U.S. 22 23 Application Serial No. 87/339,278, owned by Skunk, Inc. (BBK Tobacco & Foods,

24 LLP d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486), 25 and (c) in a Petition to Cancel it filed with the Trademark Trial and Appeal Board 26 27 seeking cancellation of U.S. Registration No. 5,072,795, owned by Skunk (BBK 28

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1 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Cancellation No. 2 92071164). 3 Fraud Grounds for Cancellation 4 5 261. Prior to November 19, 2013, HBI commenced using the federal 6 registration symbol, ®, in connection with the mark SKUNK for the goods listed in 7 U.S. Registration No. 4,436,677. For example, at least as early as 2011, HBI was 8 9 using the federal registration symbol after the word SKUNK (i.e., SKUNK®) on 10 both the packaging for and in advertisement of its rolling papers, including its hemp 11 papers. At the time HBI commenced using the ® symbol in connection with the 12 13 SKUNK mark, the SKUNK mark was not federally registered. 14 262. Upon information and belief, HBI knowingly and willfully used the ® 15 symbol in connection with the term SKUNK in an attempt to deceive or mislead 16 17 consumers and others in the trade into believing that the mark was federally 18 registered. 19 263. On the basis of HBI’s fraudulent misuse of the federal registration 20 21 notice in connection with an unregistered mark, U.S. Registration No. 4,436,677

22 should be cancelled. 23 Cancellation on the Basis the Mark is Generic 24 25 264. U.S. Registration No. 4,436,677 for the mark SKUNK identifies

26 (among other goods) “herbs for smoking.” 27 28

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1 265. The term “skunk” is a generic term for cannabis (marijuana) and/or 2 certain high-THC strains of cannabis. 3 266. Marijuana is an herb. 4 5 267. The relevant public would understand that the term “skunk,” when used 6 in conjunction with “herbs for smoking,” to denote cannabis or marijuana. 7 268. Upon information and belief, HBI markets the goods it offers under the 8 9 SKUNK mark primarily to smokers of cannabis and to consumers interested in 10 cannabis. 11 269. The term “skunk,” as used in conjunction with “herbs for smoking,” is 12 13 generic as members of the relevant public would understand the term “skunk” to

14 identify a subset of herbs—namely those containing cannabis or marijuana. 15 270. As the SKUNK mark is generic for one or more subsets of the goods 16 17 covered by U.S. Registration No. 4,436,677, the registration is subject to 18 cancellation pursuant to 15 U.S.C. § 1064. 19 THIRD COUNTERCLAIM 20 (Cancellation of U.S. Registration No. No. 4,569,712) 21 271. HBI is the owner of U.S. Registration No. 4,569,712 for the mark 22 23 SKUNK for “electric cigarettes; electronic cigarettes; electronic cigarettes for use as

24 an alternative to traditional cigarettes; electronic cigars” in International Class 034, 25 which issued on July 15, 2014. 26 27 272. Skunk is damaged by HBI’s continued registration of the SKUNK

28 mark, as set forth in U.S. Registration No. 4,569,712, as HBI has asserted this

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1 registration (a) in this above-captioned litigation, (b) in a Notice of Opposition it 2 filed with the Trademark Trial and Appeal Board opposing registration of U.S. 3 Application Serial No. 87/339,278, owned by Skunk, Inc. (BBK Tobacco & Foods, 4 5 LLP d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486), 6 and (c) in a Petition to Cancel it filed with the Trademark Trial and Appeal Board 7 seeking cancellation of U.S. Registration No. 5,072,795, owned by Skunk (BBK 8 9 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Cancellation No. 10 92071164). 11 Fraud Grounds for Cancellation 12 13 273. Prior to July 15, 2014, Skunk, Inc. commenced using the federal 14 registration symbol, ®, in connection with the mark SKUNK for one or more of the 15 goods listed in U.S. Registration No. 4,569,712. For example, by at least as early as 16 17 February 2014, HBI was using the federal registration symbol after the word 18 SKUNK (i.e., SKUNK®) on vapor pens (a type of electronic cigarette). At the time 19 HBI commenced using the ® symbol in connection with the SKUNK mark on these 20 21 goods, the SKUNK mark was not federally registered for these goods.

22 274. Upon information and belief, HBI knowingly and willfully used the ® 23 symbol in connection with the term SKUNK in an attempt to deceive or mislead 24 25 consumers and others in the trade into believing that the mark was federally

26 registered for these goods. 27 28

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1 275. On the basis of HBI’s fraudulent misuse of the federal registration 2 notice in connection with an unregistered mark, U.S. Registration No. 4,569,712 3 should be cancelled. 4 5 Cancellation on the Basis the Mark is Merely Descriptive 6 276. U.S. Registration No. 4,436,677 for the mark SKUNK identifies 7 “electric cigarettes,” “electronic cigarettes,” “electronic cigarettes for use as an 8 9 alternative to traditional cigarettes,” and “electronic cigars.” 10 277. The term “skunk” is a generic term for cannabis (marijuana) and/or 11 certain high-THC strains of cannabis. 12 13 278. The relevant public would recognize that the term “skunk” when used 14 with electric cigarettes, electronic cigarettes, electronic cigarettes for use as an 15 alternative to traditional cigarettes, and electronic cigars to denote that the item is to 16 17 be used with cannabis or marijuana. 18 279. Upon information and belief, the types of products listed in U.S. 19 Registration No. 4,436,677 are commonly used with cannabis or marijuana. 20 21 280. Upon information and belief, the electric cigarettes, electronic

22 cigarettes, electronic cigarettes for use as an alternative to traditional cigarettes, and 23 electronic cigars that HBI markets under the SKUNK mark are commonly used with 24 25 cannabis or marijuana products.

26 281. Upon information and belief, HBI markets the electric cigarettes, 27 electronic cigarettes, electronic cigarettes for use as an alternative to traditional 28

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1 cigarettes and electronic cigars it offers under the SKUNK mark to smokers of 2 cannabis and to consumers interested in cannabis. 3 282. The term “skunk,” as used in conjunction with “electric cigarettes,” 4 5 “electronic cigarettes,” “electronic cigarettes for use as an alternative to traditional 6 cigarettes,” and “electronic cigars,” is merely descriptive as members of the relevant 7 public would understand the term “skunk” to identify a subset of these items— 8 9 namely those to be used in conjunction with cannabis products—and the term lacks 10 secondary meaning. 11 283. Alternatively, the term “skunk,” as used in conjunction with “electric 12 13 cigarettes,” “electronic cigarettes,” “electronic cigarettes for use as an alternative to

14 traditional cigarettes,” and “electronic cigars,” is merely descriptive, as it describes 15 a quality, characteristic, function, feature, purpose, or use of the specified goods 16 17 (namely, the ability to use the product with cannabis or marijuana) and lacks 18 secondary meaning. 19 284. As the SKUNK mark is merely descriptive and lacks secondary 20 21 meaning for the goods covered by U.S. Registration No. 4,436,677, the registration

22 is subject to cancellation pursuant to 15 U.S.C. § 1064. 23 FOURTH COUNTERCLAIM 24 (Cancellation of U.S. Registration No. No. 5,344,902) 25 285. HBI is the owner of U.S. Registration No. 5,344,902 for the mark 26 27 SKUNK BRAND for “cigarette tip made of glass, namely, smokers’ mouthpieces

28 for cigarettes” in International Class 034, which issued on November 28, 2017.

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1 286. Skunk is damaged by HBI’s continued registration of the SKUNK 2 BRAND mark, as set forth in U.S. Registration No. 5,344,902, as HBI has asserted 3 this registration (a) in this above-captioned litigation, (b) in a Notice of Opposition 4 5 it filed with the Trademark Trial and Appeal Board opposing registration of U.S. 6 Application Serial No. 87/339,278, owned by Skunk, Inc. (BBK Tobacco & Foods, 7 LLP d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486), 8 9 and (c) in a Petition to Cancel it filed with the Trademark Trial and Appeal Board 10 seeking cancellation of U.S. Registration No. 5,072,795, owned by Skunk (BBK 11 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Cancellation No. 12 13 92071164). 14 Fraud Grounds for Cancellation 15 287. Prior to November 28, 2017, HBI commenced using the federal 16 17 registration symbol, ®, between the words SKUNK and BRAND (i.e., SKUNK® 18 BRAND) marks in connection with its cigarette tips made of glass, despite the fact 19 that it did not own any federal registration for either the SKUNK or the SKUNK 20 21 BRAND mark that covered these tips. More specifically, by at least as early as

22 February 2017, HBI was using the federal registration symbol on the glass tips 23 themselves, the packaging in which the tips are displayed, as well as in marketing 24 25 the tips.

26 288. Upon information and belief, HBI knowingly and willfully used the ® 27 symbol in connection with the term SKUNK BRAND in an attempt to deceive or 28

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1 mislead consumers and others in the trade into believing that the mark was federally 2 registered for smokers’ mouthpieces for cigarettes. 3 289. On the basis of HBI’s fraudulent misuse of the federal registration 4 5 notice in connection with an unregistered mark, U.S. Registration No. 5,344,902 6 should be cancelled. 7 Cancellation on the Basis the Mark is Merely Descriptive 8 9 290. U.S. Registration No. 5,344,902 for the mark SKUNK BRAND 10 identifies the goods covered by the registration as “cigarette tips made of glass, 11 namely, smokers’ mouthpieces for cigarettes.” 12 13 291. The term “skunk” is a generic term for cannabis (marijuana) and/or 14 certain high-THC strains of cannabis. 15 292. The relevant public would recognize that the term “skunk” when used 16 17 with cigarette tips made of glass, namely smokers’ mouthpieces for cigarettes, to 18 denote that the item is to be used with cannabis or marijuana. 19 293. Upon information and belief, the types of smokers’ mouthpieces listed 20 21 in U.S. Registration No. 5,344,902 are commonly used for smoking cannabis or

22 marijuana. 23 294. Upon information and belief, the cigarette tips made of glass or 24 25 smokers’ mouthpieces that HBI markets under the SKUNK BRAND mark are

26 commonly used with cannabis or marijuana products. 27 28

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1 295. Upon information and belief, HBI markets the cigarette tips made of 2 glass or smokers’ mouthpieces that HBI offers under the SKUNK BRAND mark to 3 smokers of cannabis and to consumers interested in cannabis. 4 5 296. The term “skunk brand,” as used in conjunction with “cigarette tips 6 made of glass, namely, smokers’ mouthpieces for cigarettes,” is merely descriptive 7 as members of the relevant public would understand the term “skunk brand” to 8 9 identify a subset of these items—namely those mouthpieces to be used in 10 conjunction with cannabis products—and the term lacks secondary meaning. 11 297. Alternatively, the term “skunk brand,” as used in conjunction with 12 13 “cigarette tips made of glass, namely, smokers’ mouthpieces for cigarettes” is 14 merely descriptive as it describes a quality, characteristic, function, feature, purpose, 15 or use of the specified goods (namely, the ability to use the product with cannabis or 16 17 marijuana) and lacks secondary meaning. 18 298. As the SKUNK BRAND mark is merely descriptive and lacks 19 secondary meaning for the goods covered by U.S. Registration No. 5,344,902, the 20 21 registration is subject to cancellation pursuant to 15 U.S.C. § 1064.

22 FIFTH COUNTERCLAIM 23 (Cancellation of U.S. Registration No. No. 5,344,903)

24 299. HBI is the owner of U.S. Registration No. 5,344,903 for the mark 25 SKUNK BRAND for “pre-rolled smoking tube made of hemp-based paper, namely, 26 27 28

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1 cigarette and cigar tubes; hemp-based wrap for smoking, namely, cigarette rolling 2 papers” in International Class 034, which issued on November 28, 2017. 3 300. Skunk is damaged by HBI’s continued registration of the SKUNK 4 5 BRAND mark, as set forth in U.S. Registration No. 5,344,903, as HBI has asserted 6 this registration (a) in this above-captioned litigation, (b) in a Notice of Opposition 7 it filed with the Trademark Trial and Appeal Board opposing registration of U.S. 8 9 Application Serial No. 87/339,278, owned by Skunk, Inc. (BBK Tobacco & Foods, 10 LLP d/b/a HBI International, v. Skunk, Inc., Opposition Proceeding No. 91241486), 11 and (c) in a Petition to Cancel it filed with the Trademark Trial and Appeal Board 12 13 seeking cancellation of U.S. Registration No. 5,072,795, owned by Skunk (BBK 14 Tobacco & Foods, LLP d/b/a HBI International, v. Skunk, Inc., Cancellation No. 15 92071164). 16 17 Cancellation on the Basis the Mark is Merely Descriptive 18 301. U.S. Registration No. 5,344,903 for the mark SKUNK BRAND 19 identifies the goods covered by the registration as “pre-rolled smoking tube made of 20 21 hemp-based paper, namely, cigarette and cigar tubes; hemp-based wrap for smoking,

22 namely, cigarette rolling papers.” 23 302. The term “skunk” is a generic term for cannabis (marijuana) and/or 24 25 certain high-THC strains of cannabis.

26 303. The relevant public would recognize that the term “skunk” when used 27 with pre-rolled smoking tubes made of hemp-based paper, namely cigarette and 28

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1 cigar tubes, and hemp-based cigarette rolling papers to denote that the item is to be 2 used with cannabis or marijuana. 3 304. Upon information and belief, the types of cigarette and cigar tubes and 4 5 cigarette rolling papers listed in U.S. Registration No. 5,344,903 are commonly used 6 for smoking cannabis or marijuana. 7 305. Upon information and belief, the pre-rolled smoking tubes made of 8 9 hemp-based paper and hemp-based cigarette rolling papers that HBI markets under 10 the SKUNK BRAND mark are commonly, if not primarily, used with cannabis or 11 marijuana products, as opposed to tobacco products. 12 13 306. Upon information and belief, HBI markets the pre-rolled smoking tubes 14 made of hemp-based paper and hemp-based cigarette rolling papers that HBI offers 15 under the SKUNK BRAND mark to smokers of cannabis and to consumers 16 17 interested in cannabis.

18 307. The term “skunk brand,” as used in conjunction with “pre-rolled 19 smoking tube made of hemp-based paper, namely, cigarette and cigar tubes” and 20 21 “hemp-based wrap for smoking, namely, cigarette rolling papers,” is merely

22 descriptive as members of the relevant public would understand the term “skunk 23 brand” to identify a subset of these items—namely those to be used in conjunction 24 25 with cannabis products—and the term lacks secondary meaning.

26 308. Alternatively, the term “skunk brand,” as used in conjunction with “pre- 27 rolled smoking tube made of hemp-based paper, namely, cigarette and cigar tubes” 28

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1 and “hemp-based wrap for smoking, namely, cigarette rolling papers” is merely 2 descriptive as it describes a quality, characteristic, function, feature, purpose, or use 3 of the specified goods and lacks secondary meaning. 4 5 309. As the SKUNK mark is merely descriptive and lacks secondary 6 meaning for the goods covered by U.S. Registration No. 5,344,903, the registration 7 is subject to cancellation pursuant to 15 U.S.C. § 1064. 8 9 DEFENDANT’S PRAYER FOR RELIEF 10 WHEREFORE, Skunk respectfully prays that the Court grant the following 11 relief: 12 13 1. Entry judgment in favor of Skunk and against HBI on all causes of actions

14 alleged against Skunk in HBI’s First Amended Complaint; 15 2. Entry of judgment in favor of Skunk and against HBI as to Skunk’s 16 17 Counterclaims petitioning to cancel U.S. Registration No. 2,435,666, No. 4,436,677, 18 No. 4,569,712, No. 5,344,902, and No. 5,344,903; 19 3. Issuance of an order cancelling HBI’s U.S. Registration No. 2,435,666, 20 21 No. 4,436,677, No. 4,569,712, No. 5,344,902, and No. 5,344,903;

22 4. A finding that this is an exceptional case pursuant to 35 U.S.C. § 1117 and 23 an award of reasonable attorneys’ fees to Skunk pursuant to that provision and any 24 25 other applicable statutory provision; and

26 5. An award to Skunk of any such other and/or further relief as the Court 27 deems equitable and just under the circumstances. 28

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DEMAND FOR JURY TRIAL 1 2 Pursuant to Federal Rules of Civil Procedure 38, Skunk hereby demand a jury 3 trial on all issues so triable. 4 5 6 7 DATED: December 2, 2019 Respectfully submitted, 8 9 By: /s/ Mary Ann Novak 10 Majed Dakak, pro hac vice 11 CA Bar No. 271875 12 KESSELMAN BRANTLY STOCKINGER LLP 13 1230 Rosecrans Ave., Suite 400 14 Manhattan Beach, CA 90266 Telephone: (310) 307-4555 15 Facsimile: (310) 307-4570 16 pro hac vice 17 Mary Ann Novak, NE Bar No. 24851 18 HILGERS GRABEN PLLC 19 575 Fallbrook Blvd, Suite 202 Lincoln, NE 68521 20 Telephone: (402) 218-2106 21 Facsimile: (402) 413-1880

22 Attorneys for 23 Defendant/Counterclaim Plaintiff 24 Skunk, Inc.

25 26

27 28

EXHIBIT 3

UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 General Contact Number: 571-272-8500 General Email: [email protected]

September 24, 2019

Opposition No. 91241486

BBK Tobacco & Foods, LLP dba HBI International

Skunk Inc.

Geoffrey M. McNutt, Interlocutory Attorney:

This case comes up for consideration of Applicant’s April 19, 2019, motion to suspend this proceeding pending the final determination of a civil action between the parties currently pending in the United States District Court for the District of

Arizona, styled BBK Tobacco & Foods, LLP, v. Skunk, Inc., and Vatra, Inc., Case

2:18-cv-02332-JAT (the “Civil Action”). The motion is fully briefed.

Also pending are the following motions: Opposer’s motion (filed on April 1, 2019) to strike certain of Applicant’s affirmative defense filed on April 1, 2019); Opposer’s motion (filed on May 7, 2019) to amend its Registration No. 2435666; Opposer’s motion (filed on May 16, 2019) for leave to amend its notice of opposition; and

Applicant’s motion (filed on June 9, 2019) to amend its involved application.

It is the policy of the Board to suspend proceedings when the parties are involved in a civil action that may have a bearing on the Board case. Trademark Rule 2.117(a),

Opposition No. 91241486

37 C.F.R. § 2.117(a); see also TRADEMARK TRIAL AND APPEAL BOARD MANUAL OF

PROCEDURE (TBMP) § 510.02(a) (2019). Even if the district court action will not fully or necessarily dispose of the claims before the Board, the standard for suspension is not whether the civil action will be dispositive but whether it may have a bearing on the case. Trademark Rule 2.117(a); see also New Orleans La. Saints LLC v. Who Dat?

Inc., 99 USPQ2d 1550, 1552 (TTAB 2011).

The civil action pending in the United States District Court for the District of

Arizona easily meets the standard for suspension under Trademark Rule 2.117(a).

The parties are in the same positon in the civil action, and the civil action involves the same marks at issue in this opposition proceeding. With respect to Applicant’s

SKUNK mark, in its complaint in the civil action Opposer has asserted, inter alia, claims of federal trademark infringement under 15 U.S.C. § 1114 and false designation of origin under 15 U.S.C. § 1125(a).1 In support of its claims, Opposer has pleaded ownership of the same marks and registrations that it has asserted in this opposition in support of its claim of likelihood of confusion under Trademark Act

Section 2(d).2 In the civil action, Opposer also seeks cancellation of Applicant’s

Registration No. 5072795, which registration is the subject of a separate Board cancellation proceeding between the parties – Cancellation No. 92071164 – and also is the basis of Applicant’s Prior Registration defense in this opposition and is one of the defenses subject to Opposer’s motion to strike. In its prayer for relief in the civil complaint, Opposer seeks, inter alia, a permanent injunction preventing Applicant

1 Complaint ¶¶ 54–59, 65–73 (20 TATBVUE 13–14, 15–16). 2 Id. ¶¶ 19–21 (20 TTABVUE 8–9).

2 Opposition No. 91241486

from using in any manner the “Skunk” name or derivatives thereof, an order

cancelling Applicant’s Registration No. 5072795.3

The district court’s determinations regarding the parties’ rights in and to their respective marks, the issue of likelihood of confusion, the permanent injunctive relief sought by Opposer, and the issue of whether Applicant’s registration should be cancelled, by themselves, clearly will have a bearing on this opposition proceeding.

Additionally, the Board has reviewed the docket for the civil action on PACER (i.e., the federal government website for accessing court electronic records) and notes that in the civil action Applicant has counterclaimed for cancellation of each of the registrations asserted by Opposer in both the civil action and in this opposition proceeding.

In view of the foregoing, Applicant’s motion to suspend for civil action is

GRANTED and this opposition proceeding is SUSPENDED pending the final disposition of the civil action between the parties. Within THIRTY DAYS after the final determination of the civil action, the parties must so notify the Board in writing, including a copy of the court’s final order.4 During the suspension period, the parties must notify the Board of any address or email address changes for the parties or their attorneys.5

3 Complaint, Prayer for Relief, ¶¶ 6, 10 (20 TATBVUE 23, 24). 4 “A proceeding is considered to have been finally determined when an order or ruling that ends litigation has been rendered, and no appeal has been filed, or all appeals filed have been decided and the time for any further review has expired.” See TBMP § 510.02(b). 5 The change of address filed by counsel for Applicant on May 17, 2019, is noted, and the Board’s records have been updated accordingly.

3 Opposition No. 91241486

In view of this order, Opposer’s motion to strike certain of Applicant’s affirmative

defenses, Opposer’s motion to amend its Registration No. 2435666, Opposer’s motion

for leave to amend its notice of opposition, and Applicant’s motion to amend its involved application are denied without prejudice. If the outcome of the civil action does not dispose of this opposition proceeding, then upon resumption of this proceeding, and to the extent warranted by the facts, the parties can re-file their respective motions. In this regard, Opposer’s request that the Board decide its motion to strike before deciding Applicant’s motion to suspend is denied. The motion to strike is not potentially dispositive of this proceeding and it is evident that the civil action may have a bearing on Applicant’s affirmative defenses and the issues raised by

Opposer in the motion to strike.

Finally, as discussed above, the Board notes that the parties also are involved in

Cancellation No. 92071164, in which Opposer seeks cancellation of Applicant’s

Registration No. 5072795, in the event that the civil action does not dispose of the

cancellation action then, the Board will consider consolidating the opposition and cancellation proceeding involving the parties. If the parties believe consolidation is warranted, then they may file a consent motion or stipulation to consolidate the proceedings without awaiting Board action.

In the meantime, proceeding herein are SUSPENDED.

EXHIBIT 4

UNITED STATES PATENT AND TRADEMARK OFFICE Trademark Trial and Appeal Board P.O. Box 1451 Alexandria, VA 22313-1451 General Contact Number: 571-272-8500 General Email: [email protected] JMM September 27, 2019

Cancellation No. 92071164

BBK Tobacco & Foods, LLP dba HBI International

Skunk Inc.

Jill M. McCormack, Interlocutory Attorney:

On May 2, 2019, Respondent filed a motion to suspend this cancellation proceeding pending final disposition of a civil action between the parties that is pending before the United States District Court for the District of Arizona, styled

BBK Tobacco & Foods, LLP, d/b/a HBI International v. Skunk, Inc. et al., Case No.

2:18-cv-02332-JAT. (5 TTABVUE).

On June 3, 2019, no response thereto having been filed, the Board granted

Respondent’s motion as conceded and suspended this proceeding pending final disposition of the civil action. (7 TTABVUE).

On June 11, 2019, Petitioner filed what purports to be an opposition to

Respondent’s motion to suspend for civil action. The Board notes, however, that

Petitioner’s submission was filed long-after the time period to respond to

Respondent’s motion expired, and the motion does not appear to be related to this

Cancellation No. 92071164

cancellation. See, e.g., 9 TTABVUE 2 (arguing that the Board should first address the pending “motion to strike” when no such motion is pending in this proceeding).1

Accordingly, Respondent’s filing will be given no further consideration. See

Trademark Rule 2.127(a), 37 C.F.R § 2.127(a).

The Board notes, however, that it is the policy of the Board, absent unusual circumstances, to suspend proceedings when a civil action may be dispositive of or have a bearing on the Board’s decision. See Monster Energy Co. v. Martin, 125

USPQ2d 1774, 1778 (TTAB 2018); see also Whopper-Burger, Inc. v. Burger King

Corp., 171 USPQ 805, 806–07 (TTAB 1971). Here, the complaint in the civil action seeks cancellation of the subject Registration No. 5072795, and therefore a decision by the district court would have a bearing on this proceeding. Accordingly, suspension pending final disposition of the civil action is warranted.

The Board’s June 3, 2019 suspension order stands as issued.

1 It appears that Respondent intended to file the above-referenced submission in Opposition No. 91241486.