.3The panel affirmed the district court’s grant of summary judgment in favor of the plaintiff on the defendant’s claimthat the plaintiff’s trademark registration should be cancelledfor fraud. The panel also held that Japanese parent companydid not abandon its right to the exclusive use of the marks byengaging in “naked licensing,” or licensing the marks to the plaintiff without providing for a mechanism to oversee thequality of the mushrooms the plaintiff sold under them.
Alan M. Kindred (argued) and Ivan Posey, Kindred | Posey,Hacienda Heights, California, for Defendant-Counter-Claim-Third-Party-Plaintiff–Appellant.David A. Dillard (argued), Christie, Parker & Hale, LLP,Glendale, California, for Plaintiff-Counter-Defendant– Appellee and Third-Party-Defendant–Appellee.
WARDLAW, Circuit Judge:In this trademark infringement action, Hokto Kinoko Co.(Hokto USA), a wholly owned subsidiary of Hokuto Co., Ltd.(Hokuto Japan), sued Concord Farms, Inc. (Concord Farms)for violating its rights to marks under which it markets itsCertified Organic Mushrooms, which are produced in theUnited States. Hokto USA claimed that Concord Farmswrongly imported and marketed mushrooms under its marksfor Certified Organic Mushrooms, but which were cultivated