Even with our new Nespresso maker, we're not sure we're caffeinated enough to get through all of your questions. Let's start with some of the basics.
Your previous application. Your 2005 application was abandoned in 2007 based on a failure to file a proper trademark specimen. You cannot revive that application but you can file a new application and claim your original 2002 priority date. However the application you filed was for entertainment services, "namely, live performances by a musical band" which is typically used when claiming trademark rights for a specific band, not for an annual charitable arts event with multiple performers. So if you do re-file your application, you would want to tweak your explanation of services to make it clear you provide event services.
The other application. The other trademark owners filed their application in 2016 claiming the following services: "Organizing live exhibitions and conferences in the fields of education, culture, sports and entertainment for non-business and non-commercial purposes." From an examining attorney's point of view, their services -- as broad as they are -- may overlap with your event services. Their application has been approved for publication which should occur on October 4, 2016. If you file in a different class (Class 35 doesn't seem appropriate for your services), an examining attorney could: (a) possibly find the other application for the same mark, recognize the overlapping services and object to your registration; and/or (b) determine your choice of class is inappropriate and recommend refiling in Class 41 (which could prove expensive).
Opposing the other application. If you want to oppose the other application, you have thirty days to file a Notice of Opposition (fee: $300) on the basis that there is a likelihood of confusion. You can pay to extend that deadline up to 180 days. (It's possible an attorney may also advise that you file a trademark application which you would then reference in your notice of opposition.) You can file your notice of opposition electronically (and the USPTO has provided a manual explaining the procedure). The notice will require a response by the applicant and that will result in an inter-partes proceeding before the Trademark Trial and Appeals Board (TTAB), basically an administrative mini-trial.
|Electronic filing basis for opposition|
Can the other applicant stop your use? Unregistered marks, even if they have priority, have limited rights versus registered marks. If you can prove priority you will probably be able to preserve your rights within the geographic area in which you have been operating ... but you won't be able to expand into other regions.