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Case 1:23-cv-01960-JRS-MKK Document 19 Filed 12/22/23 Page 1 of 22 PageID #: 87

UNITED STATES DISTRICT COURT


SOUTHERN DISTRICT OF INDIANA
INDIANAPOLIS DIVISION

S ECADA M EDICAL LLC D / B / A Case No. 1:23-cv-01960-JRS-MKK


V ENTRIS M EDICAL , LLC,
Plaintiff and Counterclaim
Defendant,
v.
N EXXT S PINE , LLC,
Defendant and
Counterclaimant.

NEXXT SPINE, LLC’S ANSWER, AFFIRMATIVE DEFENSES, AND


COUNTERCLAIM WITH DEMAND FOR JURY TRIAL

Defendant and Counterclaimant Nexxt Spine, LLC (“Nexxt Spine”), in accordance with

Rule 8(b) of the Federal Rules of Civil Procedure, answers the Complaint and Demand for Jury

Trial (the “Complaint”) filed by Plaintiff and Counterclaim Defendant Secada Medical LLC

d/b/a Ventris Medical, LLC (“Ventris”) as follows:

NATURE OF THE ACTION

1. Ventris develops, markets, and sells innovative tissue and bone healing products

to address the procedural needs of general, plastic, vascular, orthopedic, and spinal surgeons.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 1 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

2. Among its suite of products for surgeons, Ventris offers a surgical matrix product

for management of complex wounds called CONNEXT®. Ventris has been continuously offering

this product under the CONNEXT® mark for many years.


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ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 2 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

3. Defendant Nexxt Spine, which has no affiliation with Plaintiff, recently adopted

and is using the mark CONNEXX for a surgical implant kit. Defendant also owns intent-to-use

federal trademark Application Serial No. 97503747 for CONNEXX (the “CONNEXX

Application”).

ANSWER: Nexxt Spine admits that it has no affiliation with Plaintiff and that it is the

owner of federal trademark application serial no. 97503747 for the mark CONNEXX intended to

be used in connection with an orthopaedic implant kit comprised of screws, rods, hooks and

connectors made of artificial materials as well as surgical instrumentation for implanting the

aforesaid components within the spine. Nexxt Spine denies all remaining allegations in

paragraph 3 of the Complaint.

4. Defendant offers its CONNEXX product to the same surgeons and other medical

professionals in the same hospitals as the CONNEXT product offered and sold by Plaintiff. As

such, Defendant is likely to cause consumer confusion and deceive the public regarding the

source, sponsorship, and/or affiliation of its goods through use of its infringing CONNEXX

mark.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about whether it offers its INERTIA CONNEXX orthopaedic implant kit product to the same

surgeons and other medical professionals in the same hospitals as the CONNEXT product

offered and sold by Plaintiff and therefore denies those allegations by operation of Rule 8(b)(5)

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of the Federal Rules of Civil Procedure. Nexxt Spine denies all remaining allegations in

paragraph 4 of the Complaint.

5. The CONNEXT and CONNEXX marks are virtually identical from visual, aural,

and conceptual perspectives, and Defendant’s goods are highly related to the goods offered by

Plaintiff.

ANSWER: Nexxt Spine denies the allegations in paragraph 5 of the Complaint.

6. Defendant’s use of the CONNEXX mark infringes Plaintiff’s CONNEXT mark

and constitutes false designation of origin and unfair competition under the federal Lanham Act.

ANSWER: Nexxt Spine denies the allegations in paragraph 6 of the Complaint.

7. Plaintiff therefore brings this action to end Defendant’s infringement of Plaintiff’s

valuable CONNEXT mark. Plaintiff seeks to enjoin Defendant’s infringing conduct and to

recover damages and costs that it has sustained as a result of Defendant’s intentional use of the

confusingly similar CONNEXX mark.

ANSWER: Nexxt Spine admits that Plaintiff has sued it. Nexxt Spine denies there is

any legal or factual basis for the lawsuit and denies all remaining allegations in paragraph 7 of

the Complaint.

PARTIES

8. Plaintiff is a California limited liability company with its principal place of

business at 1201 Dove Street, Suite 470, Newport Beach, CA 92660.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 8 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

9. Defendant is an Indiana limited liability company with its principal place of

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business at 14425 Bergen Blvd, Suite B, Noblesville, IN 46060.

ANSWER: Nexxt Spine admits the allegations in paragraph 9 of the Complaint.

JURISDICTION AND VENUE

10. This action arises under the federal trademark statute (the “Lanham Act”), 15

U.S.C. § 1051 et seq.

ANSWER: Nexxt Spine admits that Ventris has sued it under the Lanham Act. Nexxt

Spine denies there is any legal or factual basis for the lawsuit and denies all remaining

allegations in paragraph 10 of the Complaint.

11. This court has original jurisdiction over the federal trademark and unfair

competition claims pursuant to 15 U.S.C. §§ 1114, 1121, 1125, and 28 U.S.C. §§ 1331, 1338,

and 1367.

ANSWER: Nexxt Spine admits the allegations in paragraph 11 of the Complaint.

12. This Court has personal jurisdiction over Defendant because, upon information

and belief, Defendant conducts business within the State of Indiana and this judicial district;

Defendant has advertised, promoted, and sold its CONNEXX medical product in the State of

Indiana and this judicial district; the causes of action asserted in this Complaint arise out of

Defendant’s contacts with the State of Indiana and this judicial district; Defendant has caused

tortious injury to Plaintiff in this judicial district; and Defendant has sufficient minimum

contacts with the State of Indiana through its business and activities offered or conducted in the

State of Indiana such that the maintenance of this suit does not offend traditional notions of fair

play and substantial justice.

ANSWER: Nexxt Spine admits that the Court has personal jurisdiction over it, that it

conducts business within the State of Indiana, including in this judicial district, and that it has

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advertised, promoted, and sold its INERTIA CONNEXX orthopaedic implant kit in the State of

Indiana, including in this judicial district. Nexxt Spine denies all remaining allegations in

paragraph 12 of the Complaint.

13. Venue is proper in this judicial district pursuant to 28 U.S.C. § 1391(b) and (c)

because Plaintiff conducts business within the State of Indiana and this judicial district;

Defendant has its principal place of business in this judicial district; Defendant has advertised,

promoted, and sold its CONNEXX medical product to consumers in the State of Indiana and

this judicial district; the causes of action asserted in this Complaint arise out of Defendant’s

contacts with the State of Indiana and this judicial district; and Defendant has caused tortious

injury to Plaintiff in this judicial district.

ANSWER: Nexxt Spine admits that venue is proper in this judicial district, that it

conducts business within the State of Indiana, including in this judicial district, that it has its

principal place of business in this judicial district, and that it has advertised, promoted, and sold

its INERTIA CONNEXX orthopaedic implant kit to consumers in the State of Indiana, including

in this judicial district. Nexxt Spine denies all remaining allegations in paragraph 13 of the

Complaint.

FACTUAL ALLEGATIONS

PLAINTIFF AND THE CONNEXT MARK

14. Plaintiff is a biologics company focused on quality, innovative design, and

processing of best-in-class products for optimal surgical outcomes. Ventris offers a variety of

allograft, synthetic, and bioactive products for soft and hard tissue applications. Its products

adhere to Current Good Tissue Practices and are regulated by the FDA Center for Biologics

Evaluation and Research.

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ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 14 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

15. Since at least as early as October 2018, Ventris has offered and sold a bovine

collagen indicated for the management of surgical wounds under the mark CONNEXT® (the

“CONNEXT Mark”).

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 15 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

16. The CONNEXT product has been extensively advertised and promoted in the

United States, including online through the Ventris Medical website

(https://www.ventrismedical.com/connext/), and marketed to hospitals, insurance companies, and

medical professionals.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 16 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

17. Plaintiff has devoted substantial time, effort, and resources to the development

and promotion of the CONNEXT Mark and product.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 17 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

18. On January 1, 2019, the United States Patent & Trademark Office (“PTO”) issued

to Plaintiff U.S. Trademark Registration No. 5,645,141 for the CONNEXT Mark in connection

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with “[s]ynthetic materials, namely, bovine collagen used for tissue healing for medical

purposes” in Class 5.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 18 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

19. A true and accurate copy of Plaintiff’s federal trademark registration for the

CONNEXT Mark is attached hereto as Exhibit A. In addition to this registration, Plaintiff owns

common law rights in the CONNEXT Mark as a result of its extensive use and promotion of the

mark in commerce.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 19 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

20. The CONNEXT registration is in full force and effect on the PTO’s Principal

Register and gives rise to a presumption in favor of Plaintiff with respect to validity, ownership,

and exclusive rights to use the CONNEXT Mark throughout the United States.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 20 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

21. By virtue of its use and federal registration, Plaintiff has the exclusive right to use

the CONNEXT Mark, as well as marks confusingly similar thereto, in commerce in connection

with medical goods indicated for surgical use.

ANSWER: Nexxt Spine denies the allegations in paragraph 21 of the Complaint.

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DEFENDANT’S APPLICATION FOR CONNEXX AND


UNAUTHORIZED USE OF PLAINTIFF’S MARK

22. On information and belief, Defendant owns intent-to-use Application Serial No.

97/503,747 for CONNEXX covering “[o]rthopaedic implant kit comprised of screws, rods,

hooks and connectors made of artificial materials as well as surgical instrumentation for

implanting the aforesaid components within the spine” in Class 10 (the “CONNEXX

Application”).

ANSWER: Nexxt Spine admits the allegations in paragraph 22 of the Complaint.

23. On information and belief, Defendant also owns and operates the website at

www.nexxtspine.com, which includes a page dedicated to its CONNEXX product at

https://nexxtspine.com/products/inertia/inertia-connexx/. A true and accurate screenshot from

this website is copied below.

ANSWER: Nexxt Spine admits it owns and operates the website at

www.nexxtspine.com and the aforementioned website includes a page featuring information on

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its INERTIA CONNEX orthopaedic implant kit at

https://nexxtspine.com/products/inertia/inertia-connexx/. Nexxt Spine denies all remaining

allegations in paragraph 23 of the Complaint.

24. Defendant’s CONNEXX mark is nearly identical to Plaintiff’s CONNEXT Mark,

with the only difference being in the final letter (“X” as opposed to “T”).

ANSWER: Nexxt Spine denies the allegations in paragraph 24 of the Complaint.

25. Defendant’s CONNEXX products are offered through the same marketing and

trade channels and to the same customers as Plaintiff’s products. Both products are sold to the

same hospitals, insurance companies, and medical professionals. Both parties’ respective goods

are offered and provided via the same channels of trade.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 25 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

26. Plaintiff began using the CONNEXT trademark nearly five years ago and well

before Defendant’s adoption of the confusingly similar CONNEXX trademark. Furthermore,

Plaintiff obtained a U.S. registration for the CONNEXT trademark and acquired recognition in

the general consuming public well prior to Defendant’s application for and use of the virtually

identical CONNEXX mark.

ANSWER: Nexxt Spine denies its use of the term CONNEXX is confusingly similar

to the CONNEXT mark. Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the remaining allegations in paragraph 26 of the Complaint and therefore

denies those allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

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27. In or around July of 2023, Plaintiff became aware of Defendant’s intent-to-use

application for the CONNEXX mark. Defendant’s application was published on July 4, 2023,

and Plaintiff therefore timely filed an extension of time to oppose the application on July 31,

2023.

ANSWER: Nexxt Spine admits that its intent-to-use application for the CONNEXX

mark was published on July 4, 2023, and that Ventris filed an extension of time to oppose the

application on July 31, 2023. Nexxt Spine lacks knowledge or information sufficient to form a

belief about the truth of the remaining allegations in paragraph 27 of the Complaint and therefore

denies those allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

28. Plaintiff’s counsel spoke with Defendant’s counsel on August 10, 2023, regarding

Plaintiff’s concerns about Defendant’s use of the CONNEXX mark. On September 5, 2023,

Defendant’s counsel replied by email that Defendant had no intention of abandoning the

CONNEXX Application or ceasing use of the CONNEXX mark.

ANSWER: Nexxt Spine admits Plaintiff’s counsel spoke with defendant’s counsel on

August 10, 2023, regarding plaintiff’s concerns about defendant’s use of CONNEXX creating

confusion as to source. Nexxt Spine further admits that defendant’s counsel replied by email to

plaintiff’s counsel on September 5, 2023 providing several reasons why plaintiff’s concerns

regarding confusion were unfounded and as such, declined plaintiff’s demand to cease and desist

use of CONNEXX and abandon the federal application for CONNEXX, but at the same time

would be open to further discussing the matter. Without contacting Nexxt Spine’s counsel to

discuss further, Plaintiff filed this action on November 1, 2023.

29. As of the date of this Complaint, Defendant continues to use the CONNEXX

mark to offer its highly-related surgical products. Defendant’s failure to comply with Plaintiff’s

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requests demonstrates a deliberate intent to continue to willfully infringe Plaintiff’s rights in its

CONNEXT Mark.

ANSWER: Nexxt Spine admits that it continues to use INERTIA CONNEXX in

connection with its orthopaedic implant kit. Nexxt Spine denies all remaining allegations in

paragraph 29 of the Complaint.

30. Defendant’s unauthorized use of the CONNEXX mark is misleading and is likely

to confuse consumers into believing that Defendant’s products are authorized by, sponsored by,

or otherwise affiliated with or approved by Plaintiff.

ANSWER: Nexxt Spine denies the allegations in paragraph 30 of the Complaint.

31. Defendant’s infringing use of the CONNEXX mark is knowing and willful.

ANSWER: Nexxt Spine denies the allegations in paragraph 31 of the Complaint.

COUNT I

FEDERAL TRADEMARK INFRINGEMENT UNDER 15 U.S.C. § 11

32. Plaintiff realleges and incorporates by this reference paragraphs 1 through 32 of

this Complaint as if fully set forth herein.

ANSWER: Nexxt Spine incorporates it answers to the preceding allegations as though

fully set forth herein.

33. Plaintiff owns the distinctive, valid, protectable, and federally registered

CONNEXT Mark.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 33 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

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34. Defendant has used the CONNEXX mark in commerce to advertise and offer

Defendant’s surgical products.

ANSWER: Nexxt Spine admits it has used the INERTIA CONNEXX mark to

advertise and offer its orthopaedic implant kit. Nexxt Spine denies all remaining allegations in

paragraph 34 of the Complaint.

35. Defendant is not affiliated or associated with Plaintiff or its goods, and Plaintiff

does not approve or sponsor Defendant or Defendant’s goods.

ANSWER: Nexxt Spine admits the allegations in paragraph 35 of the Complaint.

36. Defendant’s activities as described herein are likely to result in confusion,

mistake, or deception and cause the public to believe that Plaintiff has produced, sponsored,

authorized, licensed, or is otherwise connected or affiliated with Defendant’s goods, all to the

detriment of Plaintiff.

ANSWER: Nexxt Spine denies the allegations in paragraph 36 of the Complaint.

37. Upon information and belief, Defendant’s acts are deliberate and intended to

confuse the public as to the source of Defendant’s goods and to injure Plaintiff and reap the

benefit of Plaintiff’s goodwill associated with Plaintiff’s trademark.

ANSWER: Nexxt Spine denies the allegations in paragraph 37 of the Complaint.

38. As a direct and proximate result of Defendant’s willful and unlawful conduct,

Plaintiff has been injured and will continue to suffer injury to its business and reputation unless

Defendant is restrained by this Court from infringing Plaintiff’s trademark.

ANSWER: Nexxt Spine denies the allegations in paragraph 38 of the Complaint.

39. The actions of Defendant described above constitute trademark infringement in

violation of 15 U.S.C. § 1114(1).

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ANSWER: Nexxt Spine denies the allegations in paragraph 39 of the Complaint.

40. Plaintiff has been, and will continue to be, damaged and irreparably harmed by

the actions of Defendant, which will continue unless Defendant is enjoined by this Court.

Plaintiff has no adequate remedy at law in that the amount of harm to Plaintiff’s business and

reputation and the diminution of the goodwill of the CONNEXT Mark are difficult to ascertain

with specificity. Plaintiff is therefore entitled to injunctive relief pursuant to 15 U.S.C. § 1116.

ANSWER: Nexxt Spine denies the allegations in paragraph 40 of the Complaint.

41. Plaintiff is entitled to actual monetary damages in an amount to be determined at

trial and to any profits made by Defendant attributable to its infringing activities.

ANSWER: Nexxt Spine denies the allegations in paragraph 41 of the Complaint.

42. Defendant’s infringement of the registered CONNEXT Mark is deliberate, willful,

fraudulent, and without extenuating circumstances, and constitutes a knowing use of Plaintiff’s

trademark. Defendant’s infringement is thus an “exceptional case” within the meaning of section

35(a) of the Lanham Act, 15 U.S.C. § 1117(a). Plaintiff is therefore entitled to recover three

times the amount of its actual damages and the attorneys’ fees and costs incurred in this action,

as well as prejudgment interest.

ANSWER: Nexxt Spine denies the allegations in paragraph 42 of the Complaint.

COUNT II

FEDERAL UNFAIR COMPETITION AND FALSE DESIGNATION OF ORIGIN


UNDER 15 U.S.C. § 1125(A)

43. Plaintiff realleges and incorporates by this reference paragraphs 1 through 43 of

this Complaint as if fully set forth herein.

ANSWER: Nexxt Spine incorporates it answers to the preceding allegations as though

fully set forth herein.

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44. Plaintiff owns the distinctive, valid, protectable, and registered CONNEXT Mark.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 44 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

45. Defendant’s use of the CONNEXX mark in commerce to advertise, offer, and sell

Defendant’s surgical products is without Plaintiff’s permission or authority and is in total

disregard of Plaintiff’s rights to control its trademarks.

ANSWER: Nexxt Spine denies the allegations in paragraph 45 of the Complaint.

46. Defendant’s actions as described herein are likely to cause confusion, mistake,

and deception among ordinary consumers as to the affiliation, connection, or association of

Defendant with Plaintiff, as to the true source of Defendant’s goods, and as to the sponsorship or

approval of Defendant or Defendant’s services by Plaintiff.

ANSWER: Nexxt Spine denies the allegations in paragraph 46 of the Complaint.

47. Defendant’s acts have damaged and will continue to damage Plaintiff, and

Plaintiff has no adequate remedy at law.

ANSWER: Nexxt Spine denies the allegations in paragraph 47 of the Complaint.

48. Defendant’s actions constitute unfair competition and false designation of origin

in violation of 15 U.S.C. § 1125(a).

ANSWER: Nexxt Spine denies the allegations in paragraph 48 of the Complaint.

49. In light of the foregoing, Plaintiff is entitled to injunctive relief prohibiting

Defendant from using or applying for registration of the CONNEXX mark or any marks

confusingly similar thereto, and to recover all damages, including attorneys’ fees, that Plaintiff

has sustained and will sustain, and all gains, profits, and advantages obtained by Defendant as a

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result of its infringing acts alleged above in an amount not yet known, and costs pursuant to 15

U.S.C. §1117, as well as prejudgment interest.

ANSWER: Nexxt Spine denies the allegations in paragraph 49 of the Complaint.

COUNT III

COMMON LAW TRADEMARK INFRINGEMENT, UNFAIR COMPETITION,


AND PASSING OFF

50. Plaintiff realleges and incorporates herein by this reference paragraphs 1 through

50 of this Complaint as if fully set forth here.

ANSWER: Nexxt Spine incorporates it answers to the preceding allegations as though

fully set forth herein.

51. Plaintiff owns common law trademark rights in its CONNEXT Mark in the State

of Indiana and throughout the United States, and all such rights owned by Plaintiff are superior

to any rights that Defendant may claim to have in the CONNEXX mark.

ANSWER: Nexxt Spine lacks knowledge or information sufficient to form a belief

about the truth of the allegations in paragraph 51 of the Complaint and therefore denies those

allegations by operation of Rule 8(b)(5) of the Federal Rules of Civil Procedure.

52. Defendant’s unauthorized use of the CONNEXX mark in connection with surgical

products is likely to cause confusion as to the source or sponsorship of these services, and is

likely to lead the public to believe that Plaintiff is affiliated with or sponsors or endorses

Defendant and/or Defendant’s goods, and is likely to mislead persons in the ordinary course of

purchasing Defendant’s goods, thereby injuring the reputation and goodwill and unjustly

diverting from Plaintiff to Defendant the benefits arising therefrom.

ANSWER: Nexxt Spine denies the allegations in paragraph 52 of the Complaint.

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53. Defendant’s unlawful activities constitute trademark infringement, unfair

competition, and passing off as proscribed by common law.

ANSWER: Nexxt Spine denies the allegations in paragraph 53 of the Complaint.

54. Defendant’s acts of trademark infringement, unfair competition, and passing

off were committed, or will imminently be committed, willfully, knowingly, intentionally,

and in bad faith.

ANSWER: Nexxt Spine denies the allegations in paragraph 54 of the Complaint.

55. Defendant’s acts or intended acts of trademark infringement, unfair competition,

and passing off, unless enjoined by this Court, will threaten to cause Plaintiff irreparable

damage, loss, and injury for which Plaintiff has no adequate remedy at law.

ANSWER: Nexxt Spine denies the allegations in paragraph 55 of the Complaint.

AFFIRMATIVE DEFENSES

Nexxt Spine, in accordance with Rule 8(c) of the Federal Rules of Civil Procedure,

asserts the following affirmative defenses:

1. The Complaint fails to state a claim upon which relief can be granted.

2. Nexxt Spine’s use of the CONNEXX mark creates no likelihood of confusion.

3. The CONNEXT mark is merely descriptive of Ventris’s bovine collagen product

and lacks acquired distinctiveness and, as such, fails to identify source and function as a

trademark.

4. Ventris’s claims are barred by unclean hands.

5. Ventris’s claims are barred by fraud because Ventris committed fraud in the

procurement of its federal trademark registration for CONNEXT by knowingly making a false

and material representation of fact when its counsel informed the United States Patent and

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Trademark Office on March 16, 2018 that the wording “CONNEXT” had no meaning other than

trademark significance.

Discovery and investigation continue, and Nexxt Spine reserves the right to assert

additional affirmative defenses as warranted by that discovery and investigation.

COUNTERCLAIM TO CANCEL FEDERAL REGISTRATION

For its Counterclaim for cancellation of U.S. Federal Trademark Registration No.

5,645,141 (the “CONNEXT Registration”), Nexxt Spine alleges as follows:

FACTS COMMON TO ALL COUNTS

1. Nexxt Spine is an Indiana limited liability company with its principal place of

business at 14425 Bergen Blvd, Suite B, Noblesville, IN 46060.

2. Nexxt Spine is a medical device company that manufactures American-made

spinal implants and instruments that are regulated by the FDA Center for Devices and

Radiological Health.

3. Ventris is a California limited liability company which lists its principal place of

business at 1201 Dove Street, Suite 470, Newport Beach, CA 92660.

4. Ventris describes itself as a biologics company that provides tissue healing

products.

5. This Court has subject matter jurisdiction over Nexxt Spine’s counterclaims

because they arise under 15 U.S.C. § 1121 and 28 U.S.C. §§ 1331 and 1338.

6. Ventris purports to own the exclusive rights to use the mark CONNEXT based in

part on the CONNEXT Registration, the application for which was filed on January 3, 2018, as

application serial number 87742211 (the “CONNEXT Application”).

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7. The United States Patent and Trademark Office (“USPTO”) issued an Examiner’s

Amendment for the CONNEXT Application on March 16, 2018.

8. According to USPTO records, Peter J. Willsey was the attorney of record for the

CONNEXT Application when it was filed and remained the attorney of record when the

Examiner’s Amendment was issued.

9. Pursuant to 37 C.F.R. §2.61(b), the USPTO may require a trademark applicant to

“furnish such information, exhibits, affidavits or declarations, and such additional specimens as

may be reasonably necessary to the proper examination of the application.”

10. According to the Examiner’s Amendment, Peter J. Willsey authorized the

following amendment to the CONNEXT Application on March 16, 2018 (the “Significance

Amendment”):

“Significance of the Mark

The following statement is added to the record:

The wording ‘CONNEXT’ has no meaning other than trademark significance.

See 37 C.F.R. §2.61(b); TMEP §808.01(a).”

(emphasis in original)

11. On information and belief, the Significance Amendment was entered as a result of

a phone conversation between the Trademark Examining Attorney for the CONNEXT

Application and Mr. Willsey on March 16, 2018, during which the Trademark Examining

Attorney inquired of Mr. Willsey whether the term “CONNEXT” had any significance in the

relevant trade or industry or as used in connection with the goods listed in the application, and

Mr. Willsey denied any such significance.

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12. The Examiner’s Amendment instructed Ventris that it should “Please advise the

undersigned immediately of any objections” to the amendment. Ventris did not object to the

amendment.

COUNT I: CANCELLATION FOR MERE DESCRIPTIVENESS

13. Nexxt Spine realleges and incorporates herein by this reference paragraphs 1

through 12 as if fully set forth here.

14. The term “CONNEXT” is merely descriptive of Ventris’s bovine collagen used

for tissue healing for medical purposes.

15. The term “CONNEXT” is seen by relevant purchasers and users as an intentional

and slight misspelling of the term “CONNECT.” Therefore, the term “CONNEXT” would be

seen as the phonetic and legal equivalent of “CONNECT.”

16. The term “CONNECT” means to become joined or to join or fasten together.

17. Collagen is the main structural protein in the extracellular matrix found in the

body's various connective tissues. Collagen is used to make connective tissue, which is a type of

tissue that connects other tissues.

18. The term “CONNEXT” is merely descriptive of a characteristic, function, feature

or purpose of Ventris’s bovine collagen used for tissue healing for medical purposes because

Ventris’s product is made of the main structural protein of connective tissue, i.e., collagen, and

because it is used to promote tissue connection in wound healing.

19. Ventris has not shown and cannot show that the term “CONNEXT” has acquired

distinctiveness.

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Case 1:23-cv-01960-JRS-MKK Document 19 Filed 12/22/23 Page 20 of 22 PageID #: 106

20. As a descriptive term without secondary meaning, the term “CONNEXT” does

not distinguish Ventris’s CONNEXT product from other bovine collagen used for tissue healing

for medical purposes and fails to function as a trademark.

21. Because the CONNEXT Registration exceeds the scope of permissible

registration under 15 U.S.C. § 1052(e)(1), which prohibits registration of merely descriptive

terms, the CONNEXT Registration is subject to cancellation pursuant to 15 U.S.C. § 1064.

22. Nexxt Spine will be damaged if the CONNEXT Registration continues to exist

because Ventris has asserted alleged rights in the CONNEXT Registration and the term

CONNEXT in its Complaint, and the registration would be prima facie evidence of the validity

of the mark, of Ventris’s ownership of the mark, and of Ventris’s exclusive right to use the mark

in commerce in connection with the goods described in the CONNEXT Registration, when in

fact Ventris is not entitled to such rights.

23. The CONNEXT Registration should be cancelled pursuant to 15 U.S.C. §§ 1052

and 1064.

COUNT II: CANCELLATION FOR FRAUD ON THE USPTO

24. Nexxt Spine realleges and incorporates herein by this reference paragraphs 1

through 23 as if fully set forth here.

25. On information and belief, Mr. Willsey on behalf of Ventris represented to the

Trademark Examining Attorney on March 16, 2018, that the term “CONNEXT” has no

significance in the relevant trade or industry or as used in connection with the goods listed in the

CONNEXT Application. Further, neither Mr. Willsey, nor anyone else on behalf of Ventris,

objected to the Significance Amendment which stated that “The wording ‘CONNEXT’ has no

meaning other than trademark significance.”

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Case 1:23-cv-01960-JRS-MKK Document 19 Filed 12/22/23 Page 21 of 22 PageID #: 107

26. The representation made by Mr. Willsey was false at the time it was made

because the term “CONNEXT” would be seen as the phonetic and legal equivalent of

“CONNECT” and Ventris’s product is made of connective tissue, i.e., collagen, and is used to

promote tissue connection in wound healing.

27. Mr. Willsey’s representation was material because, but for such false

representation, the USPTO would not have granted Ventris’s request and issued the CONNEXT

Registration.

28. On information and belief, Mr. Willsey knew the representation was false when

he made it or made the representation with reckless disregard for the truth and failed to correct

the record upon receiving the Examiner’s Amendment.

29. On information and belief, Mr. Willsey made the representation to mislead the

USPTO and cause the USPTO to issue the CONNEXT Registration.

30. Nexxt Spine will be damaged if the CONNEXT Registration continues to exist

because Ventris has asserted alleged rights in the CONNEXT Registration and the term

CONNEXT in its Complaint, and the registration would be prima facie evidence of the validity

of the mark, of Ventris’s ownership of the mark, and of Ventris’s exclusive right to use the mark

in commerce in connection with the goods described in the CONNEXT Registration, when in

fact Ventris is not entitled to such rights.

31. Ventris obtained the CONNEXT Registration fraudulently and it should be

cancelled pursuant to 15 U.S.C. § 1064.

WHEREFORE, for the foregoing reasons, Nexxt Spine respectfully requests that the

Court enter judgment as follows:

A. Dismissing Ventris’s claims against Nexxt Spine with prejudice.

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Case 1:23-cv-01960-JRS-MKK Document 19 Filed 12/22/23 Page 22 of 22 PageID #: 108

B. On Nexxt Spine’s Counterclaims, ordering that the United States Patent and

Trademark Office cancel the CONNEXT Registration pursuant to 15 U.S.C. §§

1052 and1064.

C. Awarding Nexxt Spine its attorneys’ fees and costs.

D. Granting Nexxt Spine such other and further relief as the Court may deem just

and proper.

DEMAND FOR JURY TRIAL

Nexxt Spine, in accordance with Rule 38 of the Federal Rules of Civil Procedure and

Local Rule 38-1, hereby demands a trial by jury on all issues in the Complaint and Counterclaim

so triable.

F ROST B ROWN T ODD LLP

By: /s/Darren A. Craig


Darren A. Craig, #25534-49
Matthew J. Clark, #31263-49
111 Monument Circle, Suite 4500
P.O. Box 44961
Indianapolis, IN 46244-0961
Telephone: (317) 237-3800
Facsimile: (317) 237-3900
Email: dcraig@fbtlaw.com
mclark@fbtlaw.com

Attorneys for Defendant Nexxt Spine, LLC

0141151.0776101 4890-3217-4487v5

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