Date: 20130606
Docket: T-1570-12
Citation: 2013 FC 608
Ottawa, Ontario, June 6, 2013
PRESENT: The Honourable Madam Justice Snider
BETWEEN:
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JTI
MACDONALD TM CORP.
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Applicant
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and
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IMPERIAL
TOBACCO PRODUCTS
LIMITED
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Respondent
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REASONS
FOR JUDGMENT AND JUDGMENT
I. Background
[1]
On September 19, 2006, Imperial Tobacco Products Limited
(Imperial or the Respondent) filed two trade-mark applications with the
Canadian Intellectual Property Office (CIPO). The two applications are
identified by their application numbers, 1,317,127 (the '127 Application) and
1,317,128 (the '128 Application).
[2]
Both applications claim the following:
[t]he
trade-mark consists of the colour orange applied to the visible surface of the
particular packaging as shown in the attached drawing. The drawing has been
lined for colour. (Applicant Record [AR], Vol III, Tabs 34-35, which also
provides the attached drawing of the trade-marks.)
[3]
The applications state that the respective trade-marks have
been used in association with the relevant wares, “manufactured tobacco
products, namely cigarettes”, since April 10, 2006.
[4]
JTI-Macdonald TM Corp (JTI or the Applicant) filed
statements of opposition with respect to both trade-marks in 2007. Imperial
responded to these grounds of opposition. Both parties filed evidence and made
arguments before the Trade-marks Opposition Board (the Board). In two decisions
(the '127 Decision and the '128 Decision; collectively, the Decisions) dated
May 31, 2012, the Board rejected all of JTI’s grounds of opposition.
[5]
As permitted by s. 56 of the Trade-marks Act, RSC
1985, c T-13 [Trade-marks Act or the Act], JTI appeals the Board’s
Decisions in the present proceeding. Rule 300(d) of the Federal Courts Rules,
SOR/98-106 [the Rules] directs that appeals under the Act are to be brought by
way of and considered as “applications” under the Rules.
[6]
The first problem with this matter is that JTI appeals two
decisions without leave of the Court. Rule 302 mandates that, unless the Court
orders otherwise, an application “shall be limited to a single order in
respect of which relief is sought” [emphasis added]. In this case, JTI has
brought its appeal in respect of two decisions, without seeking leave of the
Court. At the hearing of the appeals, I raised this issue with counsel. In
light of the close relationship between the two Decisions and the lack of
objection by the Respondent’s counsel, I permitted the two decisions to be
dealt with in one application.
II. Issues
[7]
The Applicant raises three issues in this appeal:
(1)
Did the Board err in finding that the '128 Design is not a
distinguishing guise?
(2)
Did the Board err in finding that the '127 Design meets the
requirements of s. 30(h) of the Act?
(3)
Did the Board err in finding that both the '127 and '128
Designs are distinctive?
Decisions under Review
[8]
It is helpful to review the findings of the Board relevant
to the issues now before me.
A. The
'127 Decision and s. 30(h) of the Act
[9]
The Board concluded that the '127 Application met the
requirements of s. 30 of the Trade-marks Act ('127 Decision at paras
27-40). Of specific relevance to the appeal, the Board found that s. 28 of the Trade-marks
Regulations, SOR/96-195 [Trade-marks Regulations or the Regulations]
does not require the specification of a shade of colour. The Board also
concluded that the application met the relevant requirements for an accurate
drawing and representation of the Design under s. 30(h). The December 6, 2000
Practice Notice of the Canadian Intellectual Property Office (the Practice
Notice) states that two-dimensional marks should be depicted in isolation of
three-dimensional objects upon which they are applied. The drawing portrays the
colour orange applied on the surface of the packaging using dotted lines,
clearly outlining the limits of the mark. Since Imperial is claiming the colour
orange and not the packaging as a trade-mark, the drawing sufficiently depicts
the mark for which Imperial applied.
B. The
'128 Decision and Distinguishing Guise
[10]
JTI was unsuccessful in opposing the '128 Design on the
basis that it was it was a distinguishing guise and should not be registered as
a trade-mark ('128 Decision at paras 33-36). The Board referred to Federal
Court decisions explaining the difference between a distinguishing guise and an
ordinary trade-mark. The Board concluded that one or more colours applied to
the whole of a visible surface of an object is a trade-mark, rather than a
distinguishing guise.
C. The
Decisions and Distinctiveness
[11]
With respect to both Decisions, the Board concluded that
JTI did not adequately support its grounds of opposition with respect to
distinctiveness. To establish its initial evidential burden, JTI had to provide
evidence that orange packages were common in the tobacco trade as of the
material date ('127 Decision at paras 26, 44; '128 Decision at paras 25, 38).
The Board was prepared to consider tobacco products other than cigarettes.
However, the Board rejected some of JTI’s evidence, since it was not from the
relevant period. Also, much of JTI’s evidence related to “peach” rather than
“orange” products. The remaining products lacked sales data or had very low
sales figures ('127 Decision at paras 45-51; '128 Decision at paras 39-45). The
Board thereby concluded that JTI did not meet its burden and this ground of
opposition could not succeed.
IV. Standard of review
[12]
A preliminary step in the analysis of the issues should be
a determination of the applicable standard of review. The standard of review
depends, to some extent, on the issue and the materiality of evidence that has
been put before me in this application.
A. Distinguishing
Guise and Compliance with Section 30(h) of the Act
[13]
In my view, a reasonableness standard of review is
appropriate for each of these issues of distinguishing guise and s. 30(h) of
the Act.
[14]
The appropriate standard of review depends on the nature of
the question before the Board. In this case, the Board was required to
determine whether the '128 Design was a distinguishing guise and whether the
'127 Design met the requirements of s. 30(h) of the Act. These are issues of
mixed fact and law and thus reviewable on a standard of reasonableness.
[15]
Reasonableness is the applicable standard to review a
finding of compliance with s. 30(h) of the Act (Novopharm Ltd v Astrazeneca AB,
2001 FCT 645 at paras 28-30, 32-33, 13 CPR (4th) 61 [Novopharm], rev’d
on other grounds, 2002 FCA 387, 21 CPR (4th) 289). The adequacy of the drawing
and verbal description of a trade-mark application is within the Board’s
expertise, relating to practice and procedure of the Registrar of Trade-marks.
[16]
Similarly, whether the relevant designs are distinguishing
guises is an issue of mixed fact and law falling within the expertise of the
Board. This inquiry relates to the interpretation of the drawing and verbal
description of the proposed mark, which falls within the expertise of the Board
(Novopharm, above at para 32).
B. Distinctiveness
[17]
In this case, JTI presented additional evidence to the
Court with respect to the issue of distinctiveness. The applicable standard of
review of this issue will depend on the nature of that new evidence.
[18]
On appeal from a decision of the Board, an applicant may
present additional evidence to the Court. When an applicant supplements the
record in this manner, the standard of review will depend on the materiality of
any of the “new” evidence. Where such evidence would have “materially affected”
the Board’s finding of fact or his exercise of discretion, the Court must reach
its “own conclusion as to the correctness of the Registrar’s decision” (Molson
Breweries v John Labatt Ltd, [2000] 3 FC 145 at para 51, 5 CPR (4th)
180 (CA)). However, if the new evidence is merely repetitive of the
evidence adduced before the Board, reasonableness is the appropriate standard (Telus
Corp v Orange Personal Communications Services Ltd, 2005 FC 590 at para 33,
39 CPR (4th) 389).
[19]
The new evidence filed by JTI is an affidavit of Richard
Sue, sworn September 19, 2012 (Further Sue Affidavit). This affidavit includes
photographs and sales data for four tobacco products: Skoal Long Cut (Peach);
Cohiba Club; Phillies Blunt (Peach); and Prime Time Plus (Peach).
[20]
The Further Sue Affidavit merely provides additional
examples of products rejected by the Board in its analysis of the
distinctiveness ground of opposition:
•
Three of the four additional products presented by Mr. Sue
include the word “peach” on the packaging. The Board found that such inclusion
of the word “peach” demonstrated that peach and not orange was the colour that
consumers would associate with the ware ('127 Decision at para 48; '128
Decision at para 42). The new evidence of these three products is
therefore not significant, and would not have materially affected the Board’s
findings.
•
Cohiba Club, the one product not associated with the word
“peach”, has very low sales figures. The Board rejected evidence relating to
two different products whose sales figures were between 7,000 and 40,000
packages at the relevant time ('127 Decision at para 51; '128 Decision at para
43). The sales figures for Cohiba Club fall at the low end of this range,
especially since those figures were expressed not as number of packages, but as
number of cigarritos. Therefore, this new evidence would not have materially
affected the Board’s findings.
[21]
The usual situation in these appeals is that additional
evidence is introduced by the applicant only. In this case, I also have
evidence from the Respondent in the form of an affidavit sworn by Gilbert
Janssens on October 19, 2012 (Janssens Affidavit). I agree with the Applicant
that there is no principled reason why additional evidence filed by a
respondent should not be considered on the question of whether there is
additional material evidence. However, in my view, the evidence disclosed by
the Janssens affidavit does not assist JTI.
[22]
In his affidavit, Mr. Janssens discusses the demographic
differences between individuals who smoke cigarettes as compared to individuals
who smoke other tobacco products, such as cigars and cigarillos. These
observations are based on survey data from 2009-2012.
[23]
The Janssens Affidavit does not justify a departure from
the reasonableness standard. This affidavit simply provides another reason for
rejecting the evidence of orange products submitted by JTI and reinforces the
Board’s overall conclusion that JTI did not meet its initial burden (9013-0501
Québec Inc v Bluedot Jeanswear Co, 2004 FC 197 at para 10, 31 CPR
(4th) 361). Nonetheless, even if this evidence materially undermines the
Board’s factual finding that the entire tobacco market is relevant, the
evidence relates to the 2009-2012 period. Although Mr. Janssens states
that the survey results may be extrapolated back to the relevant time, this
assertion is not supported by any analysis or reasoning (Janssens Affidavit at
paras 5-6). New evidence relating to a period after the relevant date is not sufficiently
significant to warrant the application of a correctness standard of review (Hawke
& Company Outfitters LLC v Retail Royalty Co, 2012 FC 1539 at para 31,
[2012] FCJ No 1622 [Hawke]).
[24]
It follows that a reasonableness standard is applicable to
all of the issues before me. As set out in Dunsmuir v New Brunswick,
2008 SCC 9 at para 47, [2008] 1 S.C.R. 190 [Dunsmuir], under this
deferential standard, the Court should focus on “whether the decision falls
within a range of possible, acceptable outcomes which are defensible in respect
of the facts and law” and whether the decision displays “justification,
transparency and intelligibility”.
[25]
With this determination of the appropriate standard of
review, I turn to the issues raised in these appeals.
V. '128 Design and Distinguishing Guise
[26]
A distinguishing guise is defined in s. 2 of the Act:
“distinguishing guise” means
(a) a shaping of wares or their containers,
or
(b) a mode of wrapping or packaging wares
the appearance of which is used by a person for the
purpose of distinguishing or so as to distinguish wares or services
manufactured, sold, leased, hired or performed by him from those
manufactured, sold, leased, hired or performed by others;
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« signe distinctif » Selon le
cas :
a) façonnement de marchandises ou de leurs
contenants;
b) mode d’envelopper ou empaqueter des marchandises,
dont la présentation est employée par une personne afin
de distinguer, ou de façon à distinguer, les marchandises fabriquées,
vendues, données à bail ou louées ou les services loués ou exécutés, par
elle, des marchandises fabriquées, vendues, données à bail ou louées ou des
services loués ou exécutés, par d’autres.
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[27]
Distinguishing guises are subject to a different regulatory
treatment under the provisions of the Act. In this case, treatment as a
distinguishing guise would favour JTI’s position.
[28]
Under the heading “Colour”, the Practice Notice provides
that:
Trade-marks that contain colour as an element are considered
to be distinguishing guises if the colour forms part of a mode of wrapping or
packaging wares the appearance of which is used for the purpose of
distinguishing or so as to distinguish one person’s wares or services from
those of others.
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Quand une couleur fait partie des composantes d'une
marque de commerce, on considère qu'il s'agit d'un signe distinctif si la
couleur en question fait partie intégrante du mode d'envelopper ou empaqueter
dont l'apparence est employée afin de distinguer, ou de façon à distinguer,
les marchandises ou les services d'une personne de ceux des autres.
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[29]
The Practice Notice continues on to provide a number of
exceptions to this general rule, that are registrable as trade-marks rather
than distinguishing guises. This part of the Practice Notice is derived from
the decision in Smith Kline & French Canada Ltd v Canada (Registrar of
Trade Marks), [1987] 2 FC 628, 14 CPR (3d) 432 (TD) [Smith Kline]. Smith,
Kline, above at 631-632 states that a distinguishing guise must be a separate
covering or container for wares.
[30]
JTI advances three reasons why the Board unreasonably
concluded that the '128 Design was not a distinguishing guise:
1.
The '128 Design should be characterized as a mode of
wrapping or packaging the wares and the Practice Notice demonstrates that it
is, therefore, a distinguishing guise. The Board erred by relying on case law
in which trade-mark was applied to the wares rather than applied to the
packaging.
2.
The Board’s reasoning contradicts the Practice Notice. The
Practice Notice explains that, when the colour forms part of the packaging, the
design is a distinguishing guise.
3.
The registrations provided to the Board by Imperial, by way
of the affidavit of Gay Owens sworn July 29, 2009 (the Owens Affidavit), did
not provide evidence that such a trade-mark is registrable; only two
registrations referred to in the Owens Affidavit claim a mark related to
“packaging” and not all of these registrations occurred after the Practice
Notice.
[31]
It is important to begin the analysis with an understanding
of the trade-mark for which the Applicant actually applied (Simpson
Strong-Tie Co v Peak Innovations Inc, 2009 FC 1200 at para 49, 79 CPR (4th)
79 [Simpson]; aff’d 2010 FCA 277, 90 CPR (4th) 399). The '128
Application claims “the colour orange applied to the visible surface of the
particular packaging”. In my view, it is reasonable to conclude that Imperial
claims the colour orange in association with the relevant wares. A colour alone
may constitute a valid trade-mark (Simpson, above at para 65). The Board
reasonably viewed the reference to the packaging as defining the scope of the
application of the trade-mark rather than part of the trade-mark itself.
[32]
The Board’s '128 Decision is consistent with the Practice
Notice. The Practice Notice states that, “a trade-mark consisting only of one
or more colours applied to the whole of a visible surface of a particular
three-dimensional object”, is not considered to be a distinguishing
guise and is registrable as a trade-mark “unless [it forms] part of a
mode of wrapping or packaging wares” (emphasis added). JTI alleges that the '128
Design cannot fall within this exception, since the colour is not applied to
the wares but is applied to the packaging. However, I disagree. The drafters of
the Practice Notice could have easily used the words “ware” or “wares” instead
of the word “object” but they chose not to do so. In my opinion, the more
general wording employed in the Practice Notice supports Imperial’s position
that colour applied to a “three-dimensional object” could reasonably appear on
the packaging of the wares and does not have to be applied directly to the
wares themselves.
[33]
Further, allowing the “three-dimensional object” to be the
packaging does not unreasonably render part of the Practice Notice meaningless.
The Practice Notice states:
Trade-marks that contain colour as
an element are considered to be distinguishing guises if the colour forms
part of the mode of wrapping or packaging wares the appearance of which is used
for the purpose of distinguishing or so as to distinguish one person’s wares or
services from those of others.
[Emphasis added.]
[34]
In the present case, the colour orange is not “an element”
that “forms part” of the mark for which Imperial applied – the colour is
the mark. This case is similar to Simpson, in which the opponent argued
that the green colour formed part of the powder coating of the wares and the
trade-mark application was a “mode of wrapping or packaging wares”. I rejected
this argument, finding that the trade-mark at issue was the green colour, and
not the powder coating (Simpson, above at para 49).
[35]
The exceptions outlined in the Practice Notice underscore
the distinction between colour claimed alone, which is a trade-mark, and colour
claimed with other three-dimensional elements, which may be a distinguishing
guise. The exceptions outlined in the Practice Notice are registrable as
trade-marks, “consisting only of one or more colours”, possibly combined with
other two dimensional design elements, as applied to a three-dimensional
object. These trade‑marks may be applied to the packaging. However, since
they are claimed independent from the packaging, these trade-marks cannot be a
separate covering or container for the wares and, therefore, cannot be
distinguishing guises as defined in Smith Kline.
[36]
Novopharm Ltd v Hoffman-La Roche Ltd (2006), 55 CPR (4th) 226, [2006] TMOB No 66 [Hoffman-La
Roche], cited by JTI, is distinguishable. In that case, the Board
characterized the application as claiming an “ingestible pharmaceutical
capsule” and not merely a colour (Hoffman-LaRoche, above at 234-235).
[37]
Lastly, existing trade-mark applications support the
Board’s decision. The Federal Court recognizes that third party trade-mark
applications may be persuasive in the context of a trade‑mark opposition
(RJ Reynolds Tobacco Co v Rothmans, Benson & Hedges Inc (1993), 47
CPR (3d) 439 at 443, 62 FTR 92 [RJ Reynolds]). In this case, Imperial
relies on a trade-mark entitled “Package Design”, claiming “the colour yellow
as applied to the whole of the visible surface of the particular object, namely
box, shown in the attached drawing”. Since the relevant wares in this
application were vehicle parts, the box is analogous to the cigarette box in
the present case. This application was approved in 2007, after the publication
of the Practice Notice in 2000. Such a trade-mark is persuasive evidence that
supports the Board’s decision.
[38]
Therefore, the Board reasonably found that the '128 Design
should not have been registered as a distinguishing guise.
VI. '127 Design and s. 30(h) of the Act
[39]
The trade-marks for which Imperial applied must meet the
requirements of paragraph 30(h) of the Act, with respect to the depiction
of trade-marks:
30. An applicant for the registration of a trade-mark
shall file with the Registrar an application containing
…
(h) unless the application is for the
registration only of a word or words not depicted in a special form, a
drawing of the trade-mark and such number of accurate representations of the
trade-mark as may be prescribed; . . .
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30. Quiconque sollicite l’enregistrement d’une marque
de commerce produit au bureau du registraire une demande renfermant :
…
h) sauf si la demande ne vise que l’enregistrement
d’un mot ou de mots non décrits en une forme spéciale, un dessin de la marque
de commerce, ainsi que le nombre, qui peut être prescrit, de représentations
exactes de cette marque;
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[40]
Section 30(h) of the Act requires that an application for a
trade-mark include a drawing of that trade-mark and any prescribed
representations of the mark. A trade-mark is a statutory monopoly and
consequently, its scope must be described with precision (Apotex Inc v
Searle Canada Inc (2000), 6 CPR (4th) 26 at para 7, 187 FTR 136 [Apotex]).
This drawing must be a meaningful representation of the design and must allow a
reader to determine the limits of the trade-mark.
[41]
Section 28 of the Regulations clarifies the requirements in
s. 30(h) of the Act with respect to colour. Where the description of a colour
is not clear, an applicant must file a drawing “lined for colour” in accordance
with a schematic of colour identifications (Regulations, s. 28(2)).
[42]
The Applicant argues that Board erred in finding that the
'127 Design complies with s. 30(h) of the Act. The Applicant asserts that
the '127 Design forms part of the packaging of the wares and the Board’s
reliance on the Practice Notice is misplaced. The Applicant makes the following
assertions:
1.
The '127 Design does not clearly demonstrate the limits of
the packaging. The two-dimensional representation renders it unclear whether
the package is a paper or foil wrapper or a container. Further, if the package
is a container, the shape and size of the container are not displayed in the
drawing.
2.
The '127 Design does not display any other design elements
or adornments that would be included on the packaging.
3.
The colour of the '127 Design is not accurately
represented. The evidence filed by Imperial demonstrates that a consistent
colour orange, as represented in the drawing, was not used; instead, the colour
fades from darker to lighter. Inaccurate specification of the colour of a
trade-mark demonstrates failure to comply with s. 30(h).
[43]
I do not agree. In my view, the Board reasonably concluded
that the requirements of s. 30(h) were met.
[44]
Two of JTI’s arguments inaccurately presuppose that the
trade-mark for which Imperial applied includes the packaging. JTI argues that
the '127 Design does not clearly demonstrate the limits of the packaging and
does not display the design elements or adornments that would be included on
the packaging. However, the Board reasonably viewed the trade-mark application
as one for colour applied to the packaging, and not as an application for the
packaging itself. Therefore, these two arguments lack merit.
[45]
Furthermore, the reasonableness of the Board’s decision is
supported by the Practice Notice, Federal Court jurisprudence and other
trade-mark registrations. The dimensions of the object to which a colour is to
be applied do not need to be set out, since colour alone is an acceptable
trade-mark (Simpson, above at paras 64-65). The trade-mark application
complies with the Practice Notice, which requires that applications for
two-dimensional marks show the mark in isolation. Lastly, similar third party
trade-mark registrations are persuasive evidence that the application before
the Court may be registrable (RJ Reynolds, above at 443). Imperial
points to one trade-mark registration associated with wares identified as “ice
cream toppings” and “peanut butter”; the trade-mark is described as the colour
orange applied to the visible surface of packaging. This trade-mark was
accepted in 2003, after the publication of the Practice Notice.
[46]
JTI’s remaining argument with respect to the colour of the
'127 Design is also flawed. In my view, it was open to the Board to find that
Imperial’s drawing lined for colour in accordance with the applicable
regulations reasonably satisfied the requirements of s. 30(h). The minor
discrepancy with respect to orange shading is not a significant inaccuracy that
would warrant the intervention of the Court.
[47]
The representation of the trade-mark must be meaningful in
the context of its written description (Apotex, above at para 7). Where
the trade-mark application provides a description or diagram that is inaccurate
or misleading, it may not comply with s. 30(h) (Simpson, above at para 66);
for example, where the description refers to the colour pink, while the drawing
is hatched in the colour blue (Novopharm Ltd v Bayer Inc, [2000] 2 FC
553 at paras 38-54, 3 CPR (4th) 305 (TD)).
[48]
In the present case, a drawing lined for colour was
included with the application, in accordance with s. 28 of the Trade-marks
Regulations. Where a description of the colour would not be sufficiently
clear, a drawing lined for colour in accordance with an appended colour chart
should be included. For the colour orange, only one sample drawing is provided
in the Regulations.
[49]
Board case law as well as s. 28 of the Regulations supports
Imperial’s position that specification of a particular hue or shade of a colour
in a trade-mark application is not necessary. Differing shades must be
represented by the same drawing lined for colour in accordance with s. 28
of the Regulations; for example, the required drawing for red and pink is the
same, as is the required drawing for violet and purple. This supports
Imperial’s position that the shade or hue of a colour does not need to be
specified in the context of a trade-mark application. As well, in Novopharm
Ltd v Pfizer Products Inc, [2009] TMOB No 180 at para 26, it was not
necessary to provide the hue or shade beyond a description stating that “the
colour blue” was claimed. This is consistent with the Regulations, which
specify one colour sample for the colour blue, with no options that would allow
an applicant to denote a particular shade.
[50]
Hoffman-La Roche, cited by JTI, is distinguishable, since there were further problems with
the description of the colour that are not raised in the present case. In Hoffman-La
Roche, it was unclear from the description whether the colour claimed was
applied to the material comprising the capsule shell of the relevant wares or
whether the colour arose from this material (Hoffman-La Roche, above at
237). As well, differing descriptions of the colour in the trade‑mark
application (“blue”) as compared to the product monograph (“dark-blue”)
created further uncertainty (Hoffman-La Roche, above at 237). Finally,
the applicant appeared to rely on the inclusion of a specimen of the capsule,
which could not form part of the application (Hoffman-La Roche, above at
237). Therefore, Hoffman-La Roche is not determinative in the present
case.
[51]
In sum, the finding of the Board that JTI did not meet its
initial burden with respect to compliance with s. 30(h) is reasonable.
VII. Distinctiveness
[52]
A fundamental requirement of a trade-mark is that it must
be “distinctive”. According to s. 2 of the Act, a distinctive trade-mark is “a trade-mark that actually distinguishes the wares or
services in association with which it is used by its owner from the wares or
services of others or is adapted so to distinguish them”. Sections 12(d) and 16
explain that a trade-mark is not registrable if it is confusing.
[53]
The Applicant asserts that the Board erred in finding that
it failed to meet its initial evidentiary burden to support its distinctiveness
grounds of opposition.
[54]
The relevant date to evaluate distinctiveness and confusion
is the date of filing of the opposition (Simpson, above at para 21; E
& J Gallo Winery v Andres Wines Ltd, [1976] 2 FC 3 at 7, 25 CPR (2d)
126). In this case, the relevant dates are August 14, 2007 for the '128 Design and October 1, 2007
for the '127 Design.
[55]
In a trade-mark opposition, there is an initial burden on
the party bringing the opposition to adduce a prima facie case that each
ground of opposition is sustainable (Simpson, above at para 29). If a prima
facie case is demonstrated by the opponent, the applicant for the
trade-mark must adduce sufficient evidence to rebut this case.
[56]
JTI provided voluminous affidavit evidence with respect to
other products and asserts that this evidence establishes that it met its
initial evidentiary burden. However, there are three main problems with this
evidence which demonstrate that the Board reasonably found that JTI did not
meet its initial evidentiary burden.
[57]
First, some of JTI’s evidence is irrelevant based on its
date. Evidence must relate to the time period before the date of the filing of
the opposition to be probative (Simpson, above at para 26). However, the
MORE cigarette product was not launched until October 2007, after the filing of
both statements of opposition. The cross-examination of Mr. Bussey, a witness
for Imperial, also states that NUMBER 7 cigarettes were first sold in Canada in 2008. JTI does not identify any contrary evidence that establishes an earlier
date of release of the NUMBER 7 product.
[58]
Second, much of JTI’s evidence relates to products
displaying the word “peach” on the packaging. In my view, it was open to the
Board to conclude that these products will be associated with the colour peach,
rather than the colour orange. This is a matter of weighing the evidence
relating to an issue that lies at the heart of the Board’s expertise. JTI does
not address the irrelevance of the peach products. Therefore, deference is
warranted with respect to this finding of fact.
[59]
Third, a number of products advanced by JTI either lack
sales data or have very low sales figures. The affidavits of Mr. Tanton, Mr.
Bower and Mr. Fortin describe some non-peach products, including Juicy Jay
Cigarette Paper (Orange), Juicy Blunts Orange Overload, Roll-N-Save Cigarette
Tobacco Pouch and Smoking Rolling Paper (Orange). However, JTI provided no
specific sales figures for these products. Further, the two non-peach products
advanced with sales numbers in Mr. Sue’s initial affidavit had low sales
figures. Therefore, the Board’s finding that JTI did not meet its burden is
reasonable in light of the failure to provide sales figures for some non-peach
products and the low sales figures for the remaining non-peach products.
[60]
In sum, it was reasonable for the Board to find that JTI
did not meet its initial evidentiary burden in establishing distinctiveness as
a ground of opposition.
VIII. Conclusion
[61]
In conclusion, my key findings are:
1.
JTI has not submitted any additional evidence to this Court
that would have “materially affected” the Board’s finding of fact or his
exercise of discretion;
2.
A standard of review of reasonableness is applicable to the
Decisions and, in particular, with respect to all of the questions raised by
JTI in its appeals; and
3.
The Board’s conclusions that (a) the '128 Design was not a
“distinguishing guise”; (b) the '127 Design met the requirements of s. 30(h) of
the Act; and (c) both designs were “distinctive”, all fall within a range of
possible, acceptable outcomes which are defensible in respect of the facts and
law.
4.
As a result the appeals will be dismissed with costs to the
Respondent.
JUDGMENT
THIS COURT ORDERS AND ADJUDGES that:
1.
The appeals of the '127 Decision and the '128 Decision are
dismissed, with costs to the Respondent.
“Judith
A. Snider”