CAFC Reverses the Bose Case and Rejects Medinol's "Should Have Known" Standard in Fraud Cases

In a long-awaited decision that is likely to curtail the number of USPTO-based “fraud” claims, the Court of Appeals for the Federal Circuit (“CAFC”) reversed the Trademark Trial and Appeal Board's (“Board”) decision to cancel Bose Corp.'s WAVE registration in Bose Corp. v. Hexawave, Inc., 88 USPQ 2d 1332 (TTAB 2007).  In summary, the CAFC rejected the strict Medinol standard of fraud, under which an entire registration was vulnerable to cancellation where a registrant knowingly or negligently made false representations as to some aspect of its mark (e.g. concerning the scope of use of its mark) – whether or not there was evidence of actual intent to deceive.  Instead, the CAFC adopted a more traditional test for fraud: did the applicant [registrant] knowingly make false, material representations with the intent to deceive the PTO?

Client_Alert_CAFC_Bose_083109.pdf (47 KB)