Date: 20061128
Docket: T-588-06
Citation: 2006 FC 1440
Edmonton,
Alberta, this 28 day of November,
2006
PRESENT: The Honourable Mr. Justice Russell
BETWEEN:
TINT
KING OF CALIFORNIA INC.
Applicant
and
THE REGISTRAR OF TRADE-MARKS and
ATTORNEY GENERAL OF CANADA
Respondents
REASONS FOR JUDGMENT AND JUDGMENT
APPLICATION
[1]
This
is an appeal, pursuant to section 56 of the Trade-marks Act R.S.C. 1985
c. T-13 (Act), of a decision of the Registrar of Trade-Marks (Registrar)
to expunge the trade-mark TINT KING (Mark) in accordance with section 45 of the
Act. The Mark was registered on April 21, 1989 by the Applicant’s sole officer
and director, Allen Elliot Starkman (Mr. Starkman). The move to expunge the
Mark was initiated by Borden Ladner Gervais LLP on behalf of an interested
party. A notice of proceedings dated June 14, 2005 requesting the Applicant to
furnish an affidavit showing the Mark was in use in Canada in the
previous three years was sent to Mr. Starkman’s home address. However, as the
affidavit of Penney Dawn Starkman, Mr. Starkman’s widow explains, Mr. Starkman
died of cancer in December 2004 after a year long illness, and during a period
of bereavement following his death she did not read business correspondence
addressed to the Applicant. As a result, she was not aware until November,
2005 of the Registrar’s letter dated October 20, 2005 notifying Mr. Starkman
that the Mark had been expunged. The earlier letter dated June 14, 2005 giving
Mr. Starkman the required three month notice period has not been located by his
widow. However, once aware of the contents of the letter, Mrs. Starkman
initiated these proceedings to demonstrate use of the Mark in the previous
three years.
[2]
The
Respondent has indicated that it will not be filing submissions on this appeal.
ISSUE
1.
Has
the Applicant provided acceptable evidence of use, as required by section 45 of
the Act?
ANALYSIS
The Law
[3]
Subsections
45 (formerly 44) and 56 of the Act read as follows:
45. (1) The Registrar may at any time and, at the written
request made after three years from the date of the registration of a
trade-mark by any person who pays the prescribed fee shall, unless the
Registrar sees good reason to the contrary, give notice to the registered
owner of the trade-mark requiring the registered owner to furnish within
three months an affidavit or a statutory declaration showing, with respect to
each of the wares or services specified in the registration, whether the
trade-mark was in use in Canada at any time during the three year period
immediately preceding the date of the notice and, if not, the date when it
was last so in use and the reason for the absence of such use since that
date.
(2) The Registrar shall not receive any evidence other
than the affidavit or statutory declaration, but may hear representations
made by or on behalf of the registered owner of the trade-mark or by or on
behalf of the person at whose request the notice was given.
(3) Where, by reason of the evidence furnished to the
Registrar or the failure to furnish any evidence, it appears to the Registrar
that a trade-mark, either with respect to all of the wares or services
specified in the registration or with respect to any of those wares or
services, was not used in Canada at any time during the three year period
immediately preceding the date of the notice and that the absence of use has
not been due to special circumstances that excuse the absence of use, the
registration of the trade-mark is liable to be expunged or amended
accordingly.
(4) When the Registrar reaches a decision whether or not
the registration of a trade-mark ought to be expunged or amended, he shall
give notice of his decision with the reasons therefore to the registered
owner of the trade-mark and to the person at whose request the notice
referred to in subsection (1) was given.
(5) The Registrar shall act in accordance with his
decision if no appeal therefrom is taken within the time limited by this Act
or, if an appeal is taken, shall act in accordance with the final judgment
given in the appeal.
56. (1) An appeal lies to the Federal Court from any
decision of the Registrar under this Act within two months from the date on
which notice of the decision was dispatched by the Registrar or within such
further time as the Court may allow, either before or after the expiration of
the two months.
(2) An appeal under subsection (1) shall be made by way
of notice of appeal filed with the Registrar and in the Federal Court.
(3) The appellant shall, within the time limited or
allowed by subsection (1), send a copy of the notice by registered mail to
the registered owner of any trade-mark that has been referred to by the
Registrar in the decision complained of and to every other person who was
entitled to notice of the decision.
(4) The Federal Court may direct that public notice of
the hearing of an appeal under subsection (1) and of the matters at issue
therein be given in such manner as it deems proper.
(5) On an
appeal under subsection (1), evidence in addition to that adduced before the
Registrar may be adduced and the Federal Court may exercise any discretion
vested in the Registrar.
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45. (1) Le registraire peut, et doit sur demande écrite
présentée après trois années à compter de la date de l’enregistrement d’une
marque de commerce, par une personne qui verse les droits prescrits, à moins
qu’il ne voie une raison valable à l’effet contraire, donner au propriétaire
inscrit un avis lui enjoignant de fournir, dans les trois mois, un affidavit
ou une déclaration solennelle indiquant, à l’égard de chacune des
marchandises ou de chacun des services que spécifie l’enregistrement, si la
marque de commerce a été employée au Canada à un moment quelconque au cours
des trois ans précédant la date de l’avis et, dans la négative, la date où
elle a été ainsi employée en dernier lieu et la raison de son défaut d’emploi
depuis cette date.
(2) Le registraire ne peut recevoir aucune preuve autre
que cet affidavit ou cette déclaration solennelle, mais il peut entendre des
représentations faites par le propriétaire inscrit de la marque de commerce
ou pour celui-ci ou par la personne à la demande de qui l’avis a été donné ou
pour celle-ci.
(3) Lorsqu’il apparaît au registraire, en raison de la
preuve qui lui est fournie ou du défaut de fournir une telle preuve, que la
marque de commerce, soit à l’égard de la totalité des marchandises ou
services spécifiés dans l’enregistrement, soit à l’égard de l’une de ces
marchandises ou de l’un de ces services, n’a été employée au Canada à aucun
moment au cours des trois ans précédant la date de l’avis et que le défaut
d’emploi n’a pas été attribuable à des circonstances spéciales qui le
justifient, l’enregistrement de cette marque de commerce est susceptible de
radiation ou de modification en conséquence.
(4) Lorsque le registraire
décide ou non de radier ou de modifier l’enregistrement de la marque de
commerce, il notifie sa décision, avec les motifs pertinents, au propriétaire
inscrit de la marque de commerce et à la personne à la demande de qui l’avis
visé au paragraphe (1) a été donné.
(5) Le registraire
agit en conformité avec sa décision si aucun appel n’en est interjeté dans le
délai prévu par la présente loi ou, si un appel est interjeté, il agit en
conformité avec le jugement définitif rendu dans cet appel.
56. (1)
Appel de toute décision rendue par le registraire, sous le régime de la
présente loi, peut être interjeté à la Cour fédérale dans les deux mois qui
suivent la date où le registraire a expédié l’avis de la décision ou dans tel
délai supplémentaire accordé par le tribunal, soit avant, soit après
l’expiration des deux mois.
(2) L’appel est
interjeté au moyen d’un avis d’appel produit au bureau du registraire et à la
Cour fédérale.
(3) L’appelant
envoie, dans le délai établi ou accordé par le paragraphe (1), par courrier
recommandé, une copie de l’avis au propriétaire inscrit de toute marque de
commerce que le registraire a mentionnée dans la décision sur laquelle porte
la plainte et à toute autre personne qui avait droit à un avis de cette
décision.
(4) Le tribunal peut
ordonner qu’un avis public de l’audition de l’appel et des matières en litige
dans cet appel soit donné de la manière qu’il juge opportune.
(5) Lors de l’appel, il peut être apporté une preuve en
plus de celle qui a été fournie devant le registraire, et le tribunal peut
exercer toute discrétion dont le registraire est investi.
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Grounds for Appeal
[4]
The
Applicant relies upon Austin Nichols & Co. (c.o.b. Orangina
International Co.) v. Cinnabon, Inc., [1998] 4 F.C. 569, 231 N.R.
362 (C.A.) for the proposition that it should be allowed to submit evidence on
appeal that was not before the Registrar when the Registrar made the decision
to expunge the Mark. In Austin Nichols, the Court found as follows at paragraph
13:
The role of the court sitting in appeal of a decision of the
Registrar is made abundantly clear by the last words of subsection 56(5). In
giving the Court the same discretion as that “vested in the Registrar”,
Parliament has recognized that the Court sitting in appeal is expected to be
able to decide the issues as if they were tried for the first time before the
Court […]
[5]
This means that a registered owner has on appeal the same
opportunity to file evidence as before the Registrar.
[6]
However,
further hurdles to hearing a section 56 appeal in the present case are that no
reply was made to the Registrar’s section 45 letters, and the original affidavit
(Original Affidavit) submitted to the Court is not in the name of the sole
director and shareholder of the Applicant, Mr. Starkman, but was sworn by Mrs.
Starkman. Roebuck v. Canada (Registrar of Trade Marks), 15
C.P.R. (3d) 113, 13 C.I.P.R. 75 (F.C.T.D.), supports the argument that Mrs.
Starkman’s lack of response to the expungement letters may be excused. In Roebuck,
Justice Martin provided the applicant, who did not receive the expungement
notice because of an address change, with some leniency. Justice Martin found at
page 3 that the purpose of section 44 (now 45) “is not designed or intended as
a procedure for adjudicating disputes between competing interests.” The fact
that the evidence before the Court was not before the Registrar did not bar the
appeal. Thus, in my view, in the present case, the fact that Mrs. Starkman did
not open her mail during a period of bereavement does not bar her from making a
section 56 appeal on behalf of the Applicant.
[7]
Justice
Martin in Roebuck at page 3 also asserts that an affidavit sworn in
support of a section 56 appeal may be made by a third party. This argument was
first upheld by the Federal Court of Appeal in the case Canada (Registrar of
Trade Marks) v. Harris Knitting Mills Ltd. (1985), 4 C.P.R. (3d) 488
60 N.R. 380 (F.C.A.) at page 5. As a result, although Mrs. Starkman is not
listed as a director and shareholder of the Applicant, as the executor of Mr.
Starkman’s will she is entitled to submit affidavit evidence in support of the
present section 56 appeal.
[8]
In
accordance with the principles set forth in Centre Ice Ltd. v. National
Hockey League (1995), 63 C.P.R. (3d) 498 at 494 for the granting of an
extension of time, I find that the Applicant has established that an extension
is appropriate in this case.
Evidence of Use
[9]
According
to section 2 of the Act, use “in relation to a trade-mark, means any use that
by section 4 is deemed to be a use in association with wares or services.”
[10]
Hence,
the Applicant must provide evidence of use of the Mark in association with its
wares or services in Canada during the previous
three years, as per section 45 of the Act. Mrs. Starkman has provided the
following evidence of use: (a) a December 2001-December 2002 City of Toronto
phone listing advertising the firm; (b) an August 2002/2003 York region phone
advertisement listing; (c) an advertisement using the name Tint King from
January 1984; and (d) a copy of a current invoice.
[11]
Footlocker
Group Canada Inc.
v. Steinberg (2004), 35 C.P.R. (4th) 443, 2004 FC 717 at
paragraph 73 (QL) provides the following guidance when considering evidence of
use:
The
case law establishes the limited onus that rests on the owner of a trade-mark
of proving use to a sufficient degree to avoid expungement in a s.45
proceedings. The cases also establish that the affidavit evidence does not
have to be perfect. In Gesco Industries Inc., supra, Wetston J.
said that “evidence filed with the Registrar must establish facts from which a
conclusion of ‘use’ or ‘use in the normal course of trade’ would follow as a
logical inference from the facts established.”
[12]
The
decision of Justice Martineau in Swabey Ogilvy Renault (2002), 19
C.P.R. (4th) 516, 2002 FCT 458 at paragraph 7 further supports the
contention that “section 45 is a summary procedure designed to clear the
register of trade-marks that have fallen into disuse and that are, at least
arguably to some extent, ‘deadwood’”. As such, “‘evidentiary overkill’” is not
required by the registered owner and the threshold for use is not a stringent
one.
[13]
Turning
to the case at bar, and applying these principles to the facts, is there sufficient
evidence submitted by Mrs. Starkman to support the statement of use of the Mark
in the previous three years? Considering the number of Canadian branches of
the Applicant as listed in the Original Affidavit at paragraph 4 (there are 11
locations listed in Canada, as well as another branch in Costa Rica), the evidence
submitted in support of the application is somewhat slim. At the hearing of
this matter counsel requested an adjournment sine die to allow him time
to provide clarification on use of the Mark. I granted the adjournment on
condition that he would provide me with authority for his request to file
supplemental materials and he followed up on these matters by letter dated
October 24, 2006.
Adducing
New Evidence
[14]
Rule
312 of the Federal Courts Rules, SOR 98/106, as identified by counsel
for the Applicant in his submissions, provides as follows:
312. With
leave of the Court, a party may
(a) file
affidavits additional to those provided for in rules 306 and 307; […]
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312. Une partie peut, avec l’autorisation de
la Cour :
a)
déposer des affidavits complémentaires en plus de ceux visés aux règles 306
et 307;
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[15]
Rules
306 and 307 outline the filing requirements for the standard affidavits that
are required from Applicants and Respondents.
[16]
A
related rule is Rule 84(2) which provides as follows:
84(2) A party who
has cross-examined the deponent of an affidavit filed in a motion or
application may not subsequently file an affidavit in that motion or
application, except with the consent of all other parties or with leave of
the Court.
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(2) La
partie qui a contre-interrogé l’auteur d’un affidavit déposé dans le cadre
d’une requête ou d’une demande ne peut par la suite déposer un affidavit dans
le cadre de celle-ci, sauf avec le consentement des autres parties ou
l’autorisation de la Cour.
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[17]
According
to Justice Heneghan in Robert Mondavi Winery v. Spagnol’s Wine & Beer
Making Supplies Ltd. (2000), 10 C.P.R. (4th) 331 (F.C.T.D.) at paragraphs
21-22, although Rules 84 and 312 should yield similar interpretations, Rule
84(2) is intended to deal with matters that arise during cross-examination and which
could not have been foreseen with reasonable diligence. Rule 312 seems to be
the broader provision and would appear to apply in this case.
[18]
The
leading case interpreting Rule 312 is the decision of Justice Nadon of the Federal
Court of Appeal in Atlantic Engraving Ltd. v. Lapointe Rosenstein (2002),
299 N.R. 244, 2002 FCA 503 where the Court of Appeal affirmed the decision of
Justice Rouleau of the Federal Court. Justice Rouleau had allowed the respondent
in that case an adjournment to file a further and better affidavit in a
trade-mark appeal on the grounds that respondent’s counsel was not familiar
with the trade-mark field and that it was unfair for the respondent to be
denied his trade-mark rights because of ineptitude. The respondent had not
applied for the adjournment and had not shown that the evidence to be adduced
was not available earlier.
[19]
The Federal
Court of Appeal allowed the appeal because the respondent had not met the test
under Rule 312, which is outlined at paragraphs 8-9:
[…]
By exception, rule 312 allows a party, with leave of the Court, to file
additional affidavits. Under that rule, the Court may allow the filing of
additional affidavits if the following requirements are met:
i)
The evidence to be
adduced will serve the interests of justice;
ii)
The evidence will
assist the Court;
iii)
The evidence will not
cause substantial or serious prejudice to the other side […]
Further,
an applicant, in seeking leave to file additional material, must show that the
evidence sought to be adduced was not available prior to the cross-examination
of the opponent’s affidavits. Rule 312 is not there to allow a party to split
its case and a party must put its best case forward at the first opportunity.
[…]
[20]
In
addition, Justice Evans in Mazhero v. Canada (Industrial Relations Board)
(2002), 292 N.R. 187, 2002 FCA 295 stated that any supplementary affidavit should
not deal with material which could have been made available at an earlier date,
and it should not unduly delay the proceedings.
[21]
The
facts in Atlantic Engraving are similar to the matter in issue in the
present case and suggest that a party is permitted to seek leave to file
additional material even at the hearing itself (even though the initiative in
that case was instigated by the Court and not the parties). In this case, the
first three factors identified by Justice Nadon in Atlantic Engraving are
easily met. The sympathetic circumstances of the Applicant merit some
leniency, the Court requires more evidence to effectively evaluate whether the Mark
has been in use, and it is difficult to see how the submission of additional
evidence could prejudice the other side when the Respondent has not
participated in the appeal and has not submitted any material.
[22]
An
issue does arise, however, with respect to the additional requirement that the
evidence must not have been available at an earlier date. But the circumstances
of this case suggest there is no practical logic for rigidly enforcing this
factor. There is no evidence that the Applicant is attempting to split its
case. In fact, there would appear to be no incentive or advantage in doing so.
Furthermore, there are situations where this requirement has been interpreted
with flexibility. In this regard, the Applicant refers to the decision in Larson-Radok
v. Minister of National Revenue, [2000] 3 C.T.C. 163, 2000 DTC 6322 at
paragraphs 6-7, where Prothonotary Hargrave stated, after noting that the
supplemental affidavit met the first three requirements under Rule 312, as
follows:
The
difficulty is that a supplementary affidavit ought not to deal with material
which could have been made available at an earlier date. Yet, I do not believe
that this concept ought to be slavishly applied, where innocent confusion on
the part of counsel, confusion not shared by the other side, confusion which
would prejudice the applicants is involved. Counsel and client are not always,
for all purposes, one entity, with the oversight of counsel an inescapable
consequence for client: […] In the present instance, for justice to be done, a
supplemental affidavit is in order.
[23]
Although
the decision in Larson-Radok was driven by the fact that counsel for the
applicant had not followed the applicant’s instructions, the situation of the
Applicant in the present case also suggests that allowing a supplemental
affidavit to be filed is necessary “for justice to be done.” Given that the
interests of justice will in no way be compromised by allowing an additional
affidavit to be filed, it would appear that this is an appropriate case for the
Court to exercise its discretion in favour of the Applicant and allow the
supplemental affidavit (Supplemental Affidavit) of Mrs. Starkman.
[24]
Rule
312, however, refers to filing supplemental affidavits, not legal argument. Some
cases have held that reply memoranda or supplementary records, for instance,
cannot contain legal argument. See: Vrabek v. R, [1997] 2 C.T.C. 261
(F.C.A.), and Bayer A.G. v. Apotex Inc. (1998), 156 F.T.R. 303, 84
C.P.R. (3d) 23 (F.C.T.D.), aff’d on other grounds 2001 FCA 263, leave to appeal
denied [2001] S.C.C.A. No. 556. In this instance, the only legal argument is
contained in a letter that the Court requested, providing information as to the
Applicant’s right to file additional evidence, and clarifying the purpose of
the evidence. Furthermore, the right to consider the additional submissions
appears to be covered by Rule 313, which was not addressed by the Applicant’s
counsel in his submissions. Rule 313 reads as follows:
313. Where
the Court considers that the application records of the parties are
incomplete, the Court may order that other material, including any portion of
a transcript, be filed.
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313. Si la Cour estime que les dossiers des parties sont
incomplets, elle peut ordonner le dépôt de documents ou d’éléments matériels
supplémentaires, y compris toute partie de la transcription de témoignages
qui n’a pas été déposée.
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[25]
There
has been little judicial consideration of this provision, but Justice Hughes in
Canadian Private Copying Collective v. Fuzion Technology Corp. (2005),
47 C.P.R. (4th) 265, 2005 FC 1557 gave Rule 313 and its related provisions a
very broad interpretation and grouped it with Rule 312 at paragraph 7 when he
noted that “Rules 312 and 313 provide for additional affidavits, cross-examination,
records and other material.” It was also used in Haddad v. Canada (Minister
of Citizenship and Immigration), 2003 FCT 690 to remedy late filing of
material from a Citizenship Judge in the appeal of the Citizenship Judge’s
decision.
[26]
In
my view, therefore, the circumstances of this case warrant admitting into
evidence the Supplemental Affidavit of Mrs. Starkman and the accompanying
submissions from counsel.
Evidence
of Use
[27]
Section
45 of the Act requires the owner to demonstrate use at any time during the
three- year period preceding the date of the notice for each of the registered
wares and/or services for which the Mark is registered. In this case, the date
of notice was June 14, 2005.
[28]
The
Applicant’s trade-mark registration record from the Canadian Intellectual
Property Office for TINT KING (Exhibit B of Mrs. Starkman’s Original Affidavit)
lists several wares sold, generally related to automobile accessories,
including window tint; the Mark is also registered in association with
automobile services, including window tinting, leasing, maintenance and
repairs, and cleaning. Thus, the Applicant has to provide evidence of use of
the Mark in relation to both the wares and the services listed in the Registry.
[29]
In
this case, the sole evidence submitted to demonstrate use of the Mark are 3
invoices of sale, a blank invoice, and 3 advertisements. The advertisement from
1984 does not show use in the preceding 3 years and so cannot be considered in
this appeal.
Use with
respect to wares
[30]
Subsection
4(1) governs use with respect to wares and provides as follows:
4. (1) A
trade-mark is deemed to be used in association with wares if, at the time of
the transfer of the property in or possession of the wares, in the normal
course of trade, it is marked on the wares themselves or on the packages in
which they are distributed or it is in any other manner so associated with
the wares that notice of the association is then given to the person to whom
the property or possession is transferred.
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4. (1) Une marque de commerce est réputée employée en liaison avec des
marchandises si, lors du transfert de la propriété ou de la possession de ces
marchandises, dans la pratique normale du commerce, elle est apposée sur les
marchandises mêmes ou sur les colis dans lesquels ces marchandises sont
distribuées, ou si elle est, de toute autre manière, liée aux marchandises à
tel point qu’avis de liaison est alors donné à la personne à qui la propriété
ou possession est transférée.
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[31]
In Havana
House Cigar & Tobacco Merchants Ltd. v. Skyway Cigar Store (1998), 81
C.P.R. (3d) 203, 147 F.T.R. 54 (F.C.T.D.), varied on other grounds (1998), 147
F.T.R. 54, 81 C.P.R. (3d) 203, Justice Teitelbaum reviewed the conditions which
must exist in order to establish use of a trade-mark with respect to wares. At
page 218 of his decision, Justice Teitelbaum refers to his reasons in an
earlier case, White Consolidated Industries Inc. v. Beam of Canada Inc.
(1991), 39 C.P.R. (3d) 94 (F.C.T.D.), where he noted as follows:
In
order to establish use of a trade mark with respect to wares, the following
conditions must exist at the date of transfer of the property in or possession
of the wares:
1.
The mark must be
a trade mark as defined in s.2 [of the Trade-marks Act], that is, used for the
purpose of distinguishing wares;
2.
The mark must be
associated with the wares so that notice of the association is given; and
3.
The transfer of
the property or possession therein must occur in the normal course of trade
[32]
The
use of a trade-mark on an invoice may or may not be considered use in
association with wares described in the invoice. The major consideration is
whether the trade-mark is being used as a trade-mark in describing the wares
contained in the invoice and, as such, whether appropriate notice of such use is
being given to the transferee of the wares. The jurisprudence appears somewhat
mixed in this regard. It appears that whether the use of a trade-mark on an
invoice is use as a trade-mark in association with wares is most often decided
on its position on the invoice. If a trade-mark is placed at the top of the
invoice, with no use in the body of the invoice, the use will not generally be
in association with the invoiced wares. D. Savard, Senior Hearing Officer with
the Trade-Marks Opposition Board (TMOB) explained in Moffat & Co. v.
Conagra, Inc. (1993), 52 C.P.R. (3d) 564 (T.M.O.B.) as follows:
Concerning
the wares “fish”, it would appear from the evidence that the word “Conagra”
only appears on the invoices representing sales of such wares. The trade mark
appears at the top of the invoices either with a logo or as part of the name of
the company. In my view, such manner of use would not appear to identify wares
but would appear to identify the registrant or its business. Consequently, it
is use of a trade name or at best the logo on the invoices is use of a trade
mark in association with services.
[33]
In Sterling
& Affiliates v. A.C.B. Dejac SA (1994), 58 C.P.R. (3d ) 540 (T.M.O.B.),
D. Savard held that the use of the trade-mark at the top of the invoice did not
demonstrate use in association with the wares at the time of transfer of the
wares in the normal course of trade, and its use at the top of invoices
constituted use as a trade-name. D. Savard held that there is a distinction
between the use of the mark at the top of an invoice and cases where the mark
appears in the body of an invoice with the description of the product: See,
for instance, Gordon A. MacEachern Ltd. v. National Rubber Co. (1963),
41 C.P.R. 149, 39 D.L.R. (2d) 668 (Ex. Ct.) where Justice Noël of the Exchequer
Court held at page 157 as follows:
Now
the question as to whether an invoice or invoices with the inscription of the
trade mark thereon in association with wares are associated to a point that the
receiver would thereby get notice of the association is, of course, a question
of fact.
Having
decided that proof of a number of sales or transmutations of goods or wares is
before this court and that in all cases invoices were forwarded and received by
the buyers, I have no difficulty in finding that the reception of these
invoices with the trade mark inscribed thereon in association with the goods,
in the normal course of trade of the applicant company's is sufficient evidence
of notification and of use as set down in s. 4(1) of the Act and that,
consequently, the trade mark is thereby “so associated with the wares that
notice of the association is then given to the person to whom the property or
possession is transferred”.
[34]
Also,
in Goudreau Gage Dubuc & Martineau v. Niagara Mist Marketing, Ltd.
(1997), 78 C.P.R. (3d) 255 (T.M.O.B.), the registrant submitted invoices which
he alleged showed sales of a number of products sold under the trade-mark. D.
Savard held that, because the trade-marks also appeared on the right hand side of
the invoice and were not associated with an address, they could be perceived as
relating to the wares:
I
note that the trade-marks are not identified in the body of the invoices beside
each of the products, but the words NIAGARA MIST appear at the top of the
invoices, on the left hand side and on the right hand side. Although I am of
the view that the words NIAGARA MIST as they appear on the left hand side
followed by a street address, would probably be perceived as identifying the
originator for the wares, I am not convinced that the words NIAGARA MIST
appearing on the right hand side would not be perceived as a trade-mark
distinguishing the registrant’s wares. Bearing in mind that none of the
particular products listed in the invoices have been identified under a particular
trade-mark, and given that Mr. Prentice has clearly described the registrant
company as the manufacturer of the products, I am prepared to accept that the
use of the trade-mark in such manner satisfies the requirements of section 4(1)
of the Act in that the invoices would provide notice of the association to the
person to whom the property or possession is being transferred.
[35]
Thus,
the central consideration appears to be whether, in the case of invoices, the wares
themselves are identified with the trade-mark, or whether the trade-mark seems
to be associated on the invoice with the distributor, in which case it is more
likely proof of use in relation to services. In the present case, the invoices
submitted in evidence indicate the Mark at the top of the invoice, directly
above the address of the proprietor. Thus, in my view, the use of the Mark on
the invoices submitted is best considered evidence of use with respect to
services and is not acceptable evidence of use in association with the
Applicant’s wares.
[36]
According
to Justice McNair in Philip Morris Inc. v. Imperial Tobacco Ltd. (1987),
8 F.T.R. 310, 13 C.P.R. (3d) 289, evidence of a single sale in the normal
course of trade will suffice to show use in respect of wares, as long as it
follows the pattern of a genuine commercial transaction and is not seen as
being deliberately manufactured or contrived to protect the registration of the
trade-mark.
[37]
There
are several wares listed in the Applicant’s registration. Some cases suggest
that a registrant does not have to prove use regarding every item in a given
category, just use with respect to a broad category of goods. As Justice
Tremblay-Lamer noted in Moffat & Co. v. Westinghouse Air Brake Co.
(2001), 14 C.P.R. (4th) 257, 2001 FCT 1061 at para.22:
On
appeal, the applicant submits that it is only necessary to demonstrate use on
association with some of the wares where the registered wares fall into one
broad category and that some of the wares are constituent parts of the devices
comprised in the category. More particularly, the new evidence shows that the
registered wares can be described as a general category of wares namely railway
equipment or parts used in railway equipment construction.
[38]
However,
it has to be admitted that decisions on this matter appear to go both ways. In
some instances, the Court has been stricter in requiring use to be demonstrated
with respect to wares. For instance, according to Justice Stone in John
Labatt Ltd. v. Rainier Brewing Co. (1984), 80 C.P.R. (2d) 228, 54 N.R. 296
(F.C.A.):
The
fact that the other wares specified fall within a group of wares that are in
some way related to beer is not sufficient, in my view to preserve the
registration intact. That could only be done if the respondent had show that
the trade mark is in use in Canada with respect to each of the other wares.
[39]
Since
it appears to me in the present case that no use has been demonstrated with
respect to wares, there is no need to address whether some goods are
sufficiently related to others to satisfy the requirements by showing use only
of one good.
[40]
With
regard to the advertisement, generally, evidence of advertisement in Canada of the wares with which
a trade-mark is associated is not sufficient to constitute use of the
trade-mark. See J.C. Penney Co. v. Gaberine Clothing Co. (2001), 213
F.T.R. 189, 2001 FCT 1333 at paragraphs 75-76.
[41]
I note
that Applicant’s counsel raises the case of Ridout & Maybee LLP v. Omega
SA (Omega AG (Omega Ltd) (2005), 343 N.R. 226, 2005 FCA 306 as standing for
the proposition that the Court cannot change the wording of the register in
appeals from section 45 decisions. However, that does not appear to me to be
what the Federal Court was saying in Ridout. Justice Létourneau appeared
to be taking issue not with the Court ordering the amendment of the register
but with the Court’s interpretation of the wording of the registration,
specifically the categorization of the classes of wares. Justice Létourneau
held at paragraph 4 that a Federal Court judge is entitled to determine if the
mark was being used in regard to the property specified under the classes.
[42]
In
conclusion, in my view, the Applicant has not demonstrated use with respect to
any of the listed wares.
Use in relation to
services
[43]
Use
is deemed in respect of services where the requirements of subsection 4(2) are
met:
4(2) A
trade-mark is deemed to be used in association with services if it is used or
displayed in the performance or advertising of those services.
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4(2) Une
marque de commerce est réputée employée en liaison avec des services si elle
est employée ou montrée dans l’exécution ou l’annonce de ces services.
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[44]
Mere
advertising, without performing actual services, does not constitute use: see Cornerstone
Securities Canada Inc. v. Canada (Registrar of Trade Marks)(F.C.T.D.), [1994] F.C.J. No. 1713
at para.9. However, in Sunshine Village Corp (Re), [1996] T.M.O.B. No.
219, D. Savard held that advertisements during the relevant period can be
sufficient to evidence use of a mark in association with services.
[45]
Advertising
through telephone directories appears to be recognized as a means to evidence
use. The Federal Court of Appeal in Foodcorp Ltd. v. Chalet Bar B Q (Canada)
Inc., (1982), 47 N.R. 172, 66 C.P.R. (2d) 56 (F.C.A.) indicated that use
could probably be demonstrated through telephone listings. At paragraph 29,
Chief Justice Thurlow held as follows:
The
use relied on was the listings which appeared in various city telephone
directories. On behalf of the respondent the submission was made that such a
listing of a trade mark is advertising of the services of the restaurant in
association with the trade mark within the meaning of subsection 4(2) of the
Trade Marks Act. Not without some doubt I am inclined to think that may be so
where the trade mark itself is what is listed.
[46]
More
recent decisions by the TMOB have held that telephone directories are
conclusive evidence of use, at least in the context of an expungement hearing
under section 45. In The Bum Wrap Clothing Ltd. (Re) (1995), 63 C.P.R.
(3d) 564 (T.M.O.B.), one of the exhibits contained a photocopy of a listing for
one year in a telephone directory. D. Savard held as follows:
[..]
The photograph of a clothing store having a store sign bearing the trade-mark
and the advertisement in the 1992 Penticton telephone directory referring to
THE BUM WRAP under the heading clothing” show use of the trade-mark in the
advertisement of registered services […]
[…]
[…]
In the present case, the evidence shows the trade-mark being advertised in the Penticton telephone directory in association with the services during
the relevant period and the evidence establishes that the trade-mark was also
used in the performance of the services during the relevant period.
See also El Toro
Restaurant & Pizzeria Ltd. (Re) (1996), 70 C.P.R. (3d) 346 (T.M.O.B.).
[47]
In
the present case, because the notice date is June 14, 2002, only the December
2001-December 2002 and the August 2002-August 2003 directories can be used as
evidence of use within the requisite period. One is for a Mississauga branch of
the Applicant and one for Oshawa. These two directories provide some evidence of use during
the requisite period. They also provide evidence that the services that are
provided consist of a wide variety of automobile-related accessories, including
tinting.
[48]
With
respect to the invoices, displaying the mark on invoices, envelopes and
business cards may constitute use of a mark in association with an automobile
sales and servicing business. In Campbell Ford Sales Ltd. (Re), [1996]
T.M.O.B. No. 117 (QL), cited by the Applicant, C.R. Vandenakker, Hearing
Officer, held at paragraph 9 as follows:
In
the present case, the registrant has stated that the trade-mark is in use and
has been for a number of years. To corroborate this statement, the registrant
has attached copies of representative invoices dated within the relevant period
for servicing of automobiles showing the trade-mark THE HOME OF THE
“HASSLE-FREE LOANER” marked directly thereon. Further, the registrant has
included a card clearly displaying the trade-mark which the registrant deposes
is given to all customers for new cars and for used cars for which the warranty
has not expired. In my view, this evidence is sufficient to show use of the
mark in the performance of services pursuant to s. 4(2) of the Act.
[49]
D.
Savard in Accessoires d’Autos Nordiques Inc. (Re), [2005] T.M.O.B.
No. 163 (QL) discusses the distinction between invoices as evidence of use in
association with wares and of services at paragraph 26:
The
fact that the trade-mark appears at the top of the invoices, or on a sign in
front of the registrant’s business or on bags used to insert one or more items
being purchased by a customer does not in this case serve to prove the type of
association required between the trade-mark and these wares pursuant to s.4(1).
[…] taking into consideration that the registrant’s business is operated under
the trade-mark NORDIQUES it seems most likely that the use or display of the
trade-mark on store signs, on bags and on the invoices would be considered a use
of the mark in association with the registrant’s business […]
[50]
Thus,
the invoices submitted in the Supplemental Affidavit in the present case of
Mrs. Starkman, particularly in conjunction with the telephone directories, are,
in my view, sufficient to show use in relation to the identified services. From
the cases, it does not appear that a vast degree of evidence is needed to
demonstrate use. What is necessary is to show all the necessary elements of
use. I believe the Applicant has done that here. The invoices, in conjunction
with the descriptions in the telephone directories, do demonstrate use with
respect to the provision of services relating to automobile tint and provision
of automobile accessories. It is less certain that automotive leasing is evidenced
by the documents provided, but, in my view, this can be construed as a part of
the broad class of services.
JUDGMENT
THIS COURT ORDERS THAT:
1.
The
Appeal is allowed in part. The Decision of the Registrar with respect to the
expungement of wares from the Register is upheld, but the Mark is restored with
respect to the services on the Register.
“James
Russell”
FEDERAL COURT
SOLICITORS OF RECORD
DOCKET: T-588-06
STYLE OF CAUSE: TINT
KING OF CALIFORNIA INC. v.
REGISTRAR OF TRADE MARKS and others
PLACE OF
HEARING: Toronto, Ontario
DATE OF
HEARING: August
15, 2006
REASONS FOR JUDGMENT: RUSSELL
J.
DATED: November
28, 2006
APPEARANCES:
Mr. Michael R.
Carey
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FOR THE APPLICANT
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(No one
appearing)
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FOR THE RESPONDENTS
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SOLICITORS
OF RECORD:
Macdonald
Sager Manis LLP
Toronto, Ontario
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FOR THE APPLICANT
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Not applicable
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FOR THE RESPONDENTS
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