Sengoku Works Ltd. v. Rmc Int'l, Ltd., 96 F.3d 1217 (9th Cir. 1996). · Go Syfert
Sengoku Works Ltd. v. Rmc Int'l, Ltd., 96 F.3d 1217 (9th Cir. 1996). Cases Citing This Book View Copy Cite
G Cite
cited 4× by 4 distinct cases, 2007–2022 · 4 courts · …it is axiomatic in trademark law that the standard test of ownership is priority of use.
258 citation events (244 in the last 25 years) across 39 distinct courts.
Strongest positive: Larisa Kopets v. Lara Kajajian (ca9, 2023-06-23)
Treatment trajectory · 1996 → 2026 · click a year to view as-of
1996 2011 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Larisa Kopets v. Lara Kajajian
9th Cir. · 2023 · signal: see also · quote attribution · 1 verbatim quote · confidence high
can rebut this presumption . . . if the can show that he used the mark in commerce first
examined Cited as authority (verbatim quote) Progressive Emu, Inc. v. Nutrition & Fitness, Inc. (3×) also: Cited "see, e.g."
11th Cir. · 2016 · quote attribution · 2 verbatim quotes · confidence high
oth claim ownership of the keroheat trademark, and the issue is central to the finding for sengoku on trademark infringement.
discussed Cited as authority (quoted) Tammy Taylor Nails, Inc. v. Viljoen
S.D. Cal. · 2025 · quote attribution · 1 verbatim quote · confidence low
he party claiming ownership 10 must have been the first to actually use the mark in the sale of goods or services.
examined Cited as authority (quoted) Hyphy Music, Inc. v. Cruz (3×) also: Cited as authority (rule), Cited "see"
E.D. Cal. · 2025 · quote attribution · 1 verbatim quote · confidence low
it is axiomatic in trademark law that the standard test of ownership is priority of 4 use.
discussed Cited as authority (quoted) Moke America LLC v. American Custom Golf Cars, Inc.
E.D. Va. · 2022 · signal: see · quote attribution · 1 verbatim quote · confidence high
it is axiomatic in trademark law that the standard test of ownership is priority of use.
discussed Cited as authority (quoted) OL USA LLC v. TTS International LLC
E.D. Cal. · 2022 · signal: see · quote attribution · 1 verbatim quote · confidence high
party claiming 18 ownership must have been the first to actually use the mark
discussed Cited as authority (quoted) Lightfoot v. DeBruine
D. Ariz. · 2022 · signal: see · quote attribution · 1 verbatim quote · confidence high
it is axiomatic 27 in trademark law that the standard test of ownership is priority of use.
examined Cited as authority (quoted) Breaking Code Silence v. Papciak
S.D. Cal. · 2022 · signal: see, e.g. · quote attribution · 1 verbatim quote · confidence low
to acquire ownership of a trademark it is not enough to have invented the mark 17 first or even to have registered it first; the party claiming ownership must have been the 18 first to actually use the mark in the sale of goods or services.
discussed Cited as authority (quoted) Cloud 9 Comics LLC v. Cloud 9 Comics and More LLC
D. Or. · 2021 · quote attribution · 1 verbatim quote · confidence low
the party claiming ownership must have been the first to actually use the mark in the sale of goods or services
discussed Cited as authority (quoted) Trident Investment Partners Incorporated v. Evans
D. Ariz. · 2021 · signal: see, e.g. · quote attribution · 1 verbatim quote · confidence low
he registrant is granted a presumption of ownership, dating to 21 the filing date of the application for federal registration . . . .
discussed Cited as authority (quoted) Equitable National Life Insurance v. AXA Equitable Life Insurance Company
D. Utah · 2020 · quote attribution · 1 verbatim quote · confidence low
it is axiomatic in trademark law that the standard test of ownership is priority of use.
examined Cited as authority (quoted) Traeger Pellet Grills LLC v. Dansons US LLC
D. Ariz. · 2019 · quote attribution · 1 verbatim quote · confidence low
it is axiomatic in trademark law that the standard test of ownership is priority of use . . . 25 the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.
discussed Cited as authority (quoted) Irwin Holdings LLC v. Weigh to Wellness LLC
N.D. Ala. · 2019 · quote attribution · 1 verbatim quote · confidence low
it is axiomatic in trademark law that the standard test of ownership is priority of use.
examined Cited as authority (quoted) Hill Holliday Connors Cosmopulos v. Greenfield
4th Cir. · 2011 · signal: see also · quote attribution · 1 verbatim quote · confidence low
to acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.
examined Cited as authority (quoted) Hill Holliday Connors Cosmo-Pulos, Inc. v. Greenfield (2×) also: Cited "see, e.g."
4th Cir. · 2011 · signal: see also · quote attribution · 1 verbatim quote · confidence low
to acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.
discussed Cited as authority (quoted) Itc Limited v. Punchgini, Inc.
2d Cir. · 2007 · signal: see also · quote attribution · 1 verbatim quote · confidence low
it is axiomatic in trademark law that the standard test of ownership is priority of use.
discussed Cited as authority (rule) V.V.V. & Sons Edible Oils Limited v. Meenakshi Overseas LLC
E.D. Cal. · 2025 · confidence medium
Id. at 1220. 10 Here, Plaintiff argues they can demonstrate valid ownership rights in the 11 IDHAYAM mark because they own an Indian trademark for IDHAYAM registered in 12 1992 and have been selling sesame oil under the IDHAYAM mark in the United States 13 since 1998 by virtue of their predecessor company.
discussed Cited as authority (rule) TIW Holdings LLC v. Hotbox Farms LLC
D. Or. · 2024 · confidence medium
Prima facie evidence of the ownership and validity of a trademark can be rebutted by "by showing that the registrant had not established valid ownership rights in the mark at the time of registration." Sengoku Works Ltd., 96 F.3d at 1220.
discussed Cited as authority (rule) General Petroleum GmbH v. Stanley Oil & Lubricants, Inc. (2×) also: Cited "see, e.g."
E.D.N.Y · 2024 · confidence medium
Tactica, 154 F. Supp. 2d at 600 (quoting Sengoku, 96 F.3d at 1220-21).
discussed Cited as authority (rule) Bodine Perry PLLC v. Bodine (2×)
N.D. Ohio · 2023 · confidence medium
To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or service … When proving ownership of a trademark, federal registration of the mark is prima facie evidence that the registrant is the owner of the mark … Therefore, the registrant is granted a presumption of ownership, dating to the filing date of the application for federal registration, and the challenger must overcome this presumption by a preponderance of the eviden…
examined Cited as authority (rule) Lightfoot v. DeBruine (3×) also: Cited "see, e.g."
D. Ariz. · 2023 · confidence medium
Sengoku, 96 F.3d at 1219.
discussed Cited as authority (rule) Leftenant v. Blackmon (2×)
D. Nev. · 2022 · confidence medium
In contrast, Blackmon does not need to demonstrate registration of a trademark 1 presumption by a preponderance of the evidence.” Sengoku Works Ltd., 96 F.3d at 1219 (internal 2 citations omitted). 3 “The purpose of a trademark is to allow customers to identify the manufacturer or sponsor 4 of a good or the provider of a service.” Kassbaum v. Steppenwolf Productions, Inc., 236 F.3d 487 , 5 493 (9th Cir. 2000) (internal citation omitted); see also Commodores Ent.
cited Cited as authority (rule) Mike Sarieddine v. Alien 51 Pharms, LLC
C.D. Cal. · 2020 · confidence medium
If a party can show that it “used the mark in commerce first, then 22 the registration may be invalidated.” Id. at 1220.
discussed Cited as authority (rule) T.R.P. Company, Inc. v. Similasan AG
D. Nev. · 2020 · confidence medium
(ECF No. 141 at 26 7 Although “[w]hen proving ownership of a trademark, federal registration of the mark is 27 prima facie evidence that the registrant is the owner of the mark,” TRP’s mark has been cancelled. 28 Sengoku Works Ltd., 96 F.3d at 1219.
discussed Cited as authority (rule) Monster Energy Company v. Beastup LLC
E.D. Cal. · 2019 · confidence medium
The Lanham Act protects the earlier 10 “use of a mark in commerce.” Grupo Gigante SA De CV v. Dallo & Co., Inc., 391 F.3d 1088 , 11 1093 (9th Cir. 2004) (emphasis in original). “[I]t is not enough to have invented the mark first or 12 even to have registered it first; the party claiming ownership must have been the first to actually 13 use the mark in the sale of goods or services.” Sengoku Works Ltd., 96 F.3d at 1219.
discussed Cited as authority (rule) Covertech Fabricating, Inc. v. TVM Building Products, Inc. (2×) also: Cited "see"
3rd Cir. · 2017 · confidence medium
While some courts have distilled Professor McCarthy’s six factors to four, see Sengoku, 96 F.3d at 1220; Tecnimed, 763 F.Supp.2d at 403 , and others have varied the language, see, e.g., Ilapak, 762 F.Supp. at 1322 , all have cited either to Professor McCarthy’s treatise itself or to cases that do so, applying the McCarthy test with only minor variations across the federal courts. 3 Despite its general acceptance and although our own adoption of it today was presaged by Doebler, the McCarthy test is absent from the District Court’s analysis of the ULTRA mark in this case.
discussed Cited as authority (rule) Product Source International, LLC v. Nahshin (2×) also: Cited "see"
E.D. Va. · 2015 · confidence medium
Sengoku Works, Ltd., 96 F.3d at 1220. 17 Nahshin argues that this framework is inapplicable because PSI was never the “exclusive” distributor of NIC OUT in the United States, given the absence of an explicit exclusivity agreement and that Nahshin himself made individual direct sales to customers in the United States.
discussed Cited as authority (rule) Curtis v. Shinsachi Pharmaceutical Inc. (2×)
C.D. Cal. · 2014 · confidence medium
To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Id. at 1219.
discussed Cited as authority (rule) Lavatec Laundry Technology, GmbH v. Lavatec, Inc. (2×)
D. Conn. · 2014 · confidence medium
Sengoku Works Ltd., 96 F.3d at 1220.
discussed Cited as authority (rule) Southern California Darts Assn v. Dino M. Zaffina
9th Cir. · 2014 · confidence medium
Questions may arise as to whether specific unincorporated associations, particularly those operating not for profit, may be said to be using their marks “in commerce.” See 15 U.S.C. § 1127 (determining when “a mark shall be deemed to be in use in commerce”); Rearden, 683 *931 F.3d at 1203 (“the party claiming ownership must have been the first to actually use the mark in the sale of goods or services”); Sengoku Works, 96 F.3d at 1219 (same).
discussed Cited as authority (rule) Rearden LLC v. Rearden Commerce, Inc.
9th Cir. · 2012 · confidence medium
To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Sengoku Works Ltd. v. RMC Int'l, Ltd., 96 F.3d 1217, 1219 (9th Cir. 1996) (citing 2 J.
discussed Cited as authority (rule) Sunearth, Inc. v. Sun Earth Solar Power Co. (2×) also: Cited "see"
N.D. Cal. · 2012 · confidence medium
See Sengoku Works, 96 F.3d at 1219 (“the registrant is granted a presumption of ownership, dating to the filing date of the application for federal registration”); Rolley, Inc. v. Younghusband, 204 F.2d 209, 211 (9th Cir.1953) (“Upon registration the presumption as to date of first use by the registrant has been held to extend back to the filing date”). 7 However, “the non-registrant can rebut this presumption by showing that ... he used the mark in commerce first.” Sengoku Works, 96 F.3d at 1220.
examined Cited as authority (rule) TECNIMED SRL v. Kidz-Med, Inc. (4×) also: Cited "see"
S.D.N.Y. · 2011 · confidence medium
Sengoku, 96 F.3d at 1220; Tactica, 154 F.Supp.2d at 600 .
discussed Cited as authority (rule) Dallas Cowboys Football Club, Ltd. v. America's Team Properties, Inc.
N.D. Tex. · 2009 · confidence medium
A non-registrant can rebut a presumption of trademark validity by showing that the registrant had not established valid ownership rights in the mark at the time of registration — “in other words, if the non-registrant can show that he used the mark in commerce first, then the registration may be invalidated.” Sengoku Works, 96 F.3d at 1220.
discussed Cited as authority (rule) Pollution Denim & Co. v. Pollution Clothing Co.
C.D. Cal. · 2007 · confidence medium
As the Sengoku Works court noted, "[t]o acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Sengoku Works, 96 F.3d at 1219; see also, e.g., 2 McCarthy, supra, § 16:1 ("[I]n the United States, the rule of priority is that ownership and priority go to the party who was first-to-use”).
cited Cited as authority (rule) Krav Maga Ass'n of America, Inc. v. Yanilov
C.D. Cal. · 2006 · confidence medium
Sengoku Works Ltd. v. RMC International, Ltd., 96 F.3d 1217, 1219 (9th Cir.1996).
cited Cited as authority (rule) Quicksilver, Inc. v. Kymsta, Corporation
9th Cir. · 2006 · confidence medium
Sengoku Works Ltd., 96 F.3d at 1219; Dep’t of Parks & Recreation, 448 F.3d at 1125-26 .
discussed Cited as authority (rule) Department of Parks and Re-Creation for the State of California v. Bazaar Del Mundo Inc., a California Corporation
9th Cir. · 2006 · confidence medium
“To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Sengoku Works Ltd., 96 F.3d at 1219; see also 3 McCarthy § 19:1.1 at 19-12.
discussed Cited as authority (rule) Department of Parks v. Bazaar Del Mundo
9th Cir. · 2006 · confidence medium
“To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services.” Sen- goku Works Ltd., 96 F.3d at 1219; see also 3 McCarthy § 19:1.1 at 19-12.
cited Cited as authority (rule) Garden of Life, Inc. v. Letzer
C.D. Cal. · 2004 · confidence medium
See Brookfield, 174 F.3d at 1047 ; Sengoku Works, 96 F.3d at 1219; Casual Corner Assoc., Inc. v. Casual Stores of Nevada, Inc., 493 F.2d 709, 712 (9th Cir.1974).
examined Cited as authority (rule) Matrix Motor Co. v. Toyota Jidosha Kabushiki Kaisha (3×)
C.D. Cal. · 2003 · confidence medium
Sengoku Works Ltd., 96 F.3d at 1219-20; Pacific Supply Co-op. v. Farmers Union Central Exchange, 318 F.2d 894 , 905 (9th Cir.1963).
examined Cited as authority (rule) Tactica International, Inc. v. Atlantic Horizon International, Inc. (3×) also: Cited "see"
S.D.N.Y. · 2001 · confidence medium
Sengoku, 96 F.3d at 1220-1221; see also Omega Nutrition U.S.A.
discussed Cited as authority (rule) Maktab Tarighe Oveyssi Shah Maghsoudi, Inc. v. Kianfar (2×) also: Cited "see"
9th Cir. · 1999 · confidence medium
The defendants can raise neutral defenses, such as prior use of the marks, to the extent that they are applicable. 5 See Sengoku, 96 F.3d at 1219.
cited Cited as authority (rule) Pita Delight, Inc. v. Salami
E.D. Mich. · 1998 · confidence medium
Sengoku Works Ltd., v. RMC International, Ltd., 96 F.3d 1217, 1219 (1996); Vuitton et Fils S.A. v. J.
cited Cited "see" Mfib, LLC v. Ibca, LLC
9th Cir. · 2026 · signal: see · confidence high
See Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 , 1219 (9th Cir. 1996) (“It is axiomatic in trademark law that the standard test of ownership is priority of use.
discussed Cited "see" Bratt v. Lovestories TV Inc.
S.D. Cal. · 2024 · signal: see · confidence high
See Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 , 1219 4 (9th Cir. 1996) (“It is axiomatic in trademark law that the standard test of ownership is 5 priority of use . . . . [I]t is not enough to have invented the mark first or even to have 6 registered it first; the party claiming ownership must have been the first to actually use the 7 mark in the sale of goods or services.”).
discussed Cited "see" Restoration Hardware, Inc. v. Sichuan Wei Li Tian Xia Network Technology Co., Ltd
N.D. Cal. · 2023 · signal: see · confidence high
See 16 Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 , 1219 (9th Cir.1996). 17 For the unregistered trademarks, see supra at 2 n.2, “the standard test of ownership is 18 priority of use,” and “the party claiming ownership must have been the first to actually use the 19 mark in the sale of goods or services.” Halicki Films, LLC v. Sanderson Sales & Mktg., 547 F.3d 20 1213, 1226 (9th Cir. 2008) (citations omitted).
discussed Cited "see" Zamfir v. Casperlabs, LLC
S.D. Cal. · 2022 · signal: see · confidence high
See Sengoku 28 Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 , 1220 (9th Cir.), as modified, 97 F.3d 1460 1 (9th Cir. 1996). “[I]n other words, if the non-registrant can show that he used the mark in 2 commerce first, then the registration may be invalidated.” Id. 3 First, CasperLabs contends that Zamfir’s allegations “demonstrate that his 4 consulting services were about Casper but not called ‘Casper,’ dooming his trademark- 5 cancellation and infringement claims.” (See Mot. at 11 (emphasis in original).) In support 6 of this argument, CasperLabs cites several cases standing for…
discussed Cited "see" Olson Kundig Inc v. 12th Avenue Iron Inc (2×)
W.D. Wash. · 2022 · signal: see · confidence high
See Sengoku Works Ltd. v. RMC Int’l, Ltd., 96 F.3d 1217 , 1219-20 (9th Cir.), as 10 modified, 97 F.3d 1460 (9th Cir. 1996); Zobmondo Entm’t, LLC v. Falls Media, LLC, 602 11 F.3d 1108 , 1114 (9th Cir. 2010).
Retrieving the full opinion text from the archive…
Sengoku Works Ltd., a Corporation, Plaintiff-Counter-Defendant Appellee-Cross-Appellant
v.
Rmc International, Ltd., a Corporation Michael Resmo Joseph Malaga, Defendants-Counter-Plaintiffs Appellants-Cross-Appellees

96 F.3d 1217

40 U.S.P.Q.2d 1149, 96 Cal. Daily Op. Serv. 7048,
96 Daily Journal D.A.R. 11,557

SENGOKU WORKS LTD., a corporation,
Plaintiff-counter-defendant Appellee-Cross-Appellant,
v.
RMC INTERNATIONAL, LTD., a corporation; Michael Resmo;
Joseph Malaga, Defendants-counter-plaintiffs
Appellants-Cross-Appellees.

Nos. 95-55990, 95-56087.

United States Court of Appeals,
Ninth Circuit.

Argued Aug. 7, 1996.
Decided Sept. 20, 1996.

Jan P. Weir, Poms, Smith, Lande & Rose, Los Angeles, California, for defendants-counter-plaintiffs-appellants-cross-appellees.

R. Joseph Trojan, Trojan Law Offices, Beverly Hills, California, for plaintiff-counter-defendant-appellee-cross-appellant.

Appeals from the United States District Court for the Central District of California, Edward Rafeedie, District Judge, Presiding. D.C. No. CV-94-03197-ER.

Before REINHARDT, HALL and LEAVY, Circuit Judges.

CYNTHIA HOLCOMB HALL, Circuit Judge:

[*~1217]1

RMC International Ltd., and its officers Michael Resmo and Joseph Malaga, appeal the district court's judgment, following a jury trial, in favor of Sengoku Works Ltd. for trademark and trade dress infringement under the Lanham Act, 15 U.S.C. §§ 1051-1127, and breach of contract under California law. RMC had served since 1985 as exclusive United States distributor of kerosene heaters manufactured by Sengoku, a Japanese corporation, and these charges arose in connection with RMC's decision to market kerosene heaters from another source.

2

In this opinion we address only the issue of ownership of the Keroheat trademark. All the other issues are disposed of in a separate unpublished disposition.

3

* RMC is an importer of portable kerosene heaters. From 1985 to 1994, it imported and sold exclusively heaters manufactured by Sengoku, pursuant to yearly contracts signed by the parties. These contracts included exclusivity provisions, under which Sengoku appointed RMC its exclusive U.S. distributor, and RMC agreed to distribute only Sengoku-manufactured heaters. As part of this arrangement, Sengoku sold the heaters to an independent trading company, Zenith & Co., who then sold them to RMC. The RMC/Zenith/Sengoku heaters bore the trademark "Keroheat."Under the agreement, RMC handled all of the marketing and advertising for the heaters, and arranged for all of the retailer purchases of the heaters. Only RMC's name appeared on the product and packaging, and RMC dealt with all consumer complaints and returns. RMC claims that in the early 1990s it began to experience increasing quality problems with the Sengoku heaters, and increasing customer complaints. When Sengoku did not take satisfactory steps to remedy the problems, in 1993 RMC began to negotiate with Wooshin, a Korean corporation, to manufacture and supply kerosene heaters to RMC.

4

RMC maintains that they had no valid contract with Sengoku for 1994. For the first quarter of 1994, RMC performed as it had for the previous nine years. But in late March Sengoku became aware that RMC was selling heaters to Sengoku's largest U.S. customer that were manufactured by Wooshin, and that bore the Keroheat trademark and closely resembled Sengoku's heaters. Sengoku filed suit against RMC for breaching the exclusivity provision of their contract, and for trademark and trade dress infringement.

[*1217]5

Sengoku and RMC each claim ownership of the Keroheat trademark. From 1982 to 1985, prior to the Sengoku/RMC agreements, Sengoku heaters bearing the Keroheat mark were sold to a trading company called Imarflex, and were then sold in the U.S. by C.C.I., a company partially owned by Cort Clark. In 1985, Clark sued Imarflex for breach of contract and trademark infringement, claiming that he owned the Keroheat trademark. After the Sengoku/Imarflex/Clark deal ended, Clark then founded RMC, with Michael Resmo and Joseph Malaga. RMC began selling Sengoku heaters under the Keroheat mark in 1985, and obtained a federal registration of the mark. Clark left RMC in 1992, and now works for Sengoku.

[*~1218]6

In July 1994 the district court granted Sengoku a preliminary injunction to enjoin RMC from selling the Wooshin heater bearing the Keroheat mark. After a seven day jury trial, the jury found for Sengoku on all claims. The jury awarded Sengoku only $1.00 in damages on the trademark infringement claim. The district court then ordered the cancellation of RMC's federal trademark registration for Keroheat, and entered a permanent injunction barring RMC from using the mark. The district court also denied RMC's post-trial motions for judgment as a matter of law and for a new trial. This appeal followed.

II

[*~1219]7

Both parties agree that RMC did distribute heaters bearing the Keroheat trademark that were not manufactured by Sengoku. However, they both claim ownership of the Keroheat trademark, and this issue is central to the finding for Sengoku on trademark infringement.

8

Challenges to the sufficiency of the evidence and the denial of a motion for judgment notwithstanding the verdict are reviewed de novo to determine if the plaintiff's claims were supported by substantial evidence. Erickson v. Pierce County, 960 F.2d 801, 804 (9th Cir.), cert. denied, 506 U.S. 1035, 113 S.Ct. 815, 121 L.Ed.2d 687 (1992). Substantial evidence is such relevant evidence as reasonable minds might accept as adequate to support the jury's verdict. Murray v. Laborers Union Local No. 324, 55 F.3d 1445, 1452 (9th Cir.1995).

9

It is axiomatic in trademark law that the standard test of ownership is priority of use. To acquire ownership of a trademark it is not enough to have invented the mark first or even to have registered it first; the party claiming ownership must have been the first to actually use the mark in the sale of goods or services. See generally J. Thomas McCarthy, 2 McCarthy on Trademarks and Unfair Competition § 16.03 (3d ed.1996) (hereinafter McCarthy ). When proving ownership of a trademark, federal registration of the mark is prima facie evidence that the registrant is the owner of the mark. Lanham Act § 7(b), 15 U.S.C. § 1057(b); Lanham Act § 33(a), 15 U.S.C. § 1115(a). Therefore, the registrant is granted a presumption of ownership, dating to the filing date of the application for federal registration, and the challenger must overcome this presumption by a preponderance of the evidence. Vuitton et Fils S.A. v. J. Young Enterprises, 644 F.2d 769, 775-76 (9th Cir.1981); Rolley, Inc. v. Younghusband, 204 F.2d 209 (9th Cir.1953). However, the non-registrant can rebut this presumption by showing that the registrant had not established valid ownership rights in the mark at the time of registration--in other words, if the non-registrant can show that he used the mark in commerce first, then the registration may be invalidated.

10

Disputes over trademark ownership often arise when the mark is used on goods that are manufactured by one company, but are marketed by another pursuant to an exclusive distributorship agreement. These relationships usually arise in one of two factual situations: either (1) the manufacturer licenses the distributor to use a trademark owned by the manufacturer, or (2) the distributor owns its own mark, sometimes called a "private label," which it affixes to the manufacturer's product before delivery. In either case, the ownership of the mark turns on which party was the initial owner.

11

Unfortunately, not every distribution agreement fits clearly into one of these two categories. When disputes arise between a manufacturer and distributor, courts will look first to any agreement between the parties regarding trademark rights. Premier Dental Products v. Darby Dental Supply Co., 794 F.2d 850, 854 (3d Cir.), cert. denied, 479 U.S. 950, 107 S.Ct. 436, 93 L.Ed.2d 385 (1986). But in the absence of an agreement between the parties, the manufacturer is presumed to own the trademark. Energy Jet, Inc. v. Forex Corp., 589 F.Supp. 1110, 1116 (E.D.Mich.1984); Wrist-Rocket Mfg. Co. v. Saunders, 379 F.Supp. 902, 909 (D.Neb.1974) (" Wrist-Rocket I "), aff'd in part and rev'd in part on other grounds, 516 F.2d 846 (8th Cir.) (" Wrist-Rocket II "), cert. denied, 423 U.S. 870, 96 S.Ct. 134, 46 L.Ed.2d 100 (1975); Automated Productions Inc. v. FMB Maschinenbaugesellschaft MBH & Co., 36 U.S.P.Q.2d 1714, 1716, 1995 WL 459233 (N.D.Ill.1995). That presumption applies with equal force to cases involving foreign manufacturers. See, e.g., Energy Jet, 589 F.Supp. at 1116; Hank Thorp, Inc. v. Minilite, Inc., 474 F.Supp. 228, 236 (D.Del.1979). Although some courts have suggested that the presumption may be different in the case of foreign manufacturers, frequently the identical standard has in fact been applied, and we see no reason for doing otherwise.

12

The presumption in favor of the manufacturer is rebuttable, however, and a long-standing line of precedent holds that an exclusive distributor may acquire trademark rights superior to those of the manufacturer. See Menendez v. Holt, 128 U.S. 514, 9 S.Ct. 143, 32 L.Ed. 526 (1888); Omega Nutrition v. Spectrum Marketing, 756 F.Supp. 435, 438 (N.D.Cal.1991) (granting a preliminary injunction to the exclusive distributor against the manufacturer for trademark infringement); see also 2 McCarthy, § 16.15 n.3 (citing a long list of cases following this principle). Therefore, the distributor may rebut the presumption in favor of the manufacturer, and courts look to various factors when determining which party has the superior right of ownership, including:

13

(1) which party invented and first affixed the mark onto the product;

14

(2) which party's name appeared with the trademark;

15

(3) which party maintained the quality and uniformity of the product; and

16

(4) with which party the public identified the product and to whom purchasers made complaints.

17

Omega Nutrition, 756 F.Supp. at 438-39. Furthermore, courts will also consider which party possesses the goodwill associated with the product, or which party the public believes stands behind the product. Premier Dental, 794 F.2d at 854.

[*~1220]18

On appeal (and at trial), Sengoku seemed to argue that once it was established that Sengoku was the manufacturer and RMC was the exclusive distributor, then the issue of trademark ownership is resolved--in other words, if this was a manufacturer/exclusive distributor relationship, then Sengoku is entitled to the presumption in favor of the manufacturer and has therefore established its ownership of the trademark. This is, however, an oversimplification of the law.

19

The determinative issue is not which label is placed upon the relationship, but rather which party can establish priority of ownership. See Wrist-Rocket II, 516 F.2d at 850 (When the issue "is who, as between the manufacturer and distributor, has ownership of a trademark created after formation of the business relationship ... the dispositive question [is] which party has priority of appropriation and use of the trademark."). The court must first look to any agreement or acknowledgment between the parties regarding trademark rights. There was no such agreement between Sengoku and RMC; thus, if neither party can prove that it initially owned the trademark, then Sengoku is entitled to claim the presumption in favor of the manufacturer. In that case, RMC may rebut this presumption by addressing the factors set forth above.

20

While this is a close question, we find that there is substantial evidence in the record to support a finding that Sengoku owned the trademark. Sengoku first affixed the Keroheat mark to its heaters in 1982, at least two years before RMC began distributing Keroheat heaters. RMC's federal registration of the mark was not acquired until 1992, and RMC claimed it first used the mark in commerce in 1985. Although RMC claims that CCI, the exclusive distributor before RMC, owned the trademark, there is no evidence that ownership was transferred to RMC. Thus, the jury could reasonably have found that Sengoku established prior use.

21

Furthermore, when considering the factors that go to trademark ownership, some support Sengoku's argument, and some support RMC's. Only RMC's name appears on the product and packaging, and RMC handles all customer complaints and returns. However, Sengoku exercises control over the product quality and uniformity, and Sengoku apparently first affixed the trademark to its heaters. Also, other dealers in the business testified that they attribute the heaters bearing the Keroheat mark to Sengoku.

22

In determining whether substantial evidence supports a jury verdict, we cannot simply substitute our judgment for that of the jury. We must consider whether the record contains substantial evidence upon which reasonable minds could base the verdict. In this case, we find that the jury could reasonably have found that Sengoku owned the trademark. Therefore, we affirm the jury's verdict for Sengoku on trademark infringement.

III

23

RMC also challenges the jury instructions on trademark ownership. RMC claims that the instructions as formulated allowed the jury to find that because Sengoku was a foreign manufacturer it owned the trademark regardless of prior acquisition, and regardless of any other factors that prove ownership.

24

When evaluating the formulation of jury instructions, we consider the instructions as a whole and review them for an abuse of discretion. Gizoni v. Southwest Marine Inc., 56 F.3d 1138, 1142 n. 5 (9th Cir.1995). The instructions on trademark ownership set forth the general rule regarding the presumption in favor of the manufacturer: "Between a foreign manufacturer and its exclusive distributor, the law presumes that the foreign manufacturer is the owner or [sic] the trademark and/or trade dress unless there is an agreement to the contrary". RMC argues that this instruction was erroneous for two reasons. First, RMC claims that the instruction failed to notify the jury that ownership can be proven by an acknowledgment by Sengoku that RMC owned the mark. However, a later portion of the instruction indicates several factors to consider when determining ownership, including "admissions by the parties as to which one owns the trademark." We find that this instruction encompasses acknowledgment by Sengoku that RMC owned the mark.

25

Second, RMC claims that the instruction created an improper presumption, which allowed the jury to find that because Sengoku was the foreign manufacturer of the heaters, it was the owner of the mark, regardless of the evidence to the contrary. RMC correctly points out that the determinative issue on ownership is usually priority of use. See Wrist-Rocket II, 516 F.2d at 850 (When the issue "is who, as between the manufacturer and distributor, has ownership of a trademark created after formation of the business relationship ... the dispositive question [is] which party has priority of appropriation and use of the trademark."). But in cases where neither side can establish priority of use, then the presumption in favor of the manufacturer applies.

26

These instructions, taken as a whole, indicate that this presumption may apply here, but also that there are several other factors to consider as well--such as the origin of the trademark, whether the defendant had federally registered the mark, which party consumers believed to be the source of the goods identified, and which party controlled the quality and design of the goods. As a result, we find that these instructions, taken as a whole, adequately cover the issues, correctly state the law, and are not misleading. See Fikes v. Cleghorn, 47 F.3d 1011, 1013 (9th Cir.1995). We therefore hold that the district court did not abuse its discretion when it formulated the jury instructions regarding trademark ownership.

IV

[*~1221]27

For the foregoing reasons, we hold that the jury's verdict for Sengoku on trademark infringement is supported by substantial evidence, and is therefore AFFIRMED.