Dockets: T-382-15
T-383-15
Citation:
2016 FC 20
Ottawa, Ontario, January 7, 2016
PRESENT: The
Honourable Mr. Justice LeBlanc
Docket: T-382-15
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BETWEEN:
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KABUSHIKI KAISHA MITSUKAN GROUP HONSHA
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Applicant
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and
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SAKURA-NAKAYA
ALIMENTOS LTDA.
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Respondent
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Docket: T-383-15
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AND BETWEEN:
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KABUSHIKI
KAISHA MITSUKAN GROUP HONSHA
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Applicant
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and
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SAKURA-NAKAYA
ALIMENTOS LTDA.
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Respondent
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AMENDED JUDGMENT AND REASONS
I.
Introduction
[1]
These are appeals of two decisions of the
Registrar of the Trade-marks - Trade-marks Opposition Board - (the Registrar),
dated December 30, 2014, rejecting the opposition of Kabushiki Kaisha Mitsukan
Group Honsha (the Applicant) to the registration of the word mark SAKURA
(application no. 1, 520, 586) and the design mark SAKURA AND DESIGN
(application no. 1, 520, 821) by Sakura-Nakaya Alimentos Ltda (the
Respondent). As the same facts pertain to both applications, both appeals will
be dealt with together in this decision. These appeals are made pursuant to
section 56 of the Trade-marks Act, RSC 1985, c T-13 (the Act).
[2]
While the Respondent filed
a letter informing the Court that it intended to participate in these appeals,
it did not file a record nor attend the hearing. By letter dated November 20,
2015 (three days prior to the hearing), the Respondent advised that the parties
were engaged in settlement negotiations and requested the Court consider such
in the timing of the issuance of the Judgment in these matters. At the end of
the hearing held ex-parte on November 23, 2015, the Court, being
satisfied that the Applicant was not opposed to the Respondent’s request,
informed the parties that no decision would be released
in this matter before December 23, 2015.
[3]
The Court has received no
further communications from the parties regarding these negotiations and is
therefore ready to render judgment in both appeals.
II.
Background
[4]
On March 24 and 25,
2011, the Respondent filed registration applications for, respectively, the
proposed use of the word mark SAKURA and of the design mark SAKURA AND DESIGN
(the trade-marks) in association with sauces and condiments namely soy sauce,
pepper sauce, teriyaki (oriental sauce derived from soy sauce), barbecue sauce,
worcestershire sauce, sweet and sour sauce, and garlic sauce.
[5]
On June 19, 2012, the Applicant, a Japanese
company, filed a statement of opposition against the registration of both
trade-marks. The Applicant claimed that at the date of filing the opposed
applications and at any relevant date, the trade-mark SAKURA filed by the
Respondent was confusing with a trade-mark, namely SAKURA, that had been used
in Canada or made known in Canada by the Applicant or its distributor licensee
for the North American market, Mizkan Americas Inc (Mizkan), for vinegar and/or
products of the same nature as those covered by the opposed applications.
Accordingly, the Applicant contended that the opposed applications should be
refused pursuant to subsections 38(2)(c) and 16(3)(a) of the Act. The
Applicant further alleged that the trade-mark SAKURA filed by the Respondent
was not distinctive under section 2 of the Act.
[6]
The Applicant’s opposition to the registration
of the trade-marks was rejected by the Registrar on the ground that the
Applicant had failed to satisfy its initial burden to adduce sufficient admissible
evidence from which it could reasonably be concluded that the facts alleged to
support each ground of opposition existed.
[7]
In relation to the subsection 16(3)(a) ground of
opposition, the Registrar found that the Applicant failed to prove that the
alleged trade-mark SAKURA was used or made known in Canada prior to March 25,
2011 (the Material date). The Registrar noted in this regard from the dozens
of copies of orders and sample invoices filed by the Applicant in support of
this ground of opposition, that only three were dated prior to the Material
date and that all three were issued by Mizkan to companies with Canadian
addresses for sales of “4.2% Sakura Rice Vgr Label:
Mitsukan”. While the Registrar found that the sample invoices supported
the Applicant’s assertions of sales of its vinegar in Canada prior to the
Material date, the Registrar found that there was no evidence that the invoices
were associated with the goods at the time of the transfer of property or
possession. Therefore, the Registrar found that the only evidence that could
demonstrate the Applicant’s use of the SAKURA trade-mark in association with
the Applicant’s vinegar within the meaning of section 4(1) of the Act were the
labels affixed on the boxes containing the SAKURA vinegar. Since the labels did
not identify the Applicant as the owner of the SAKURA trade-mark, the Registrar
had to determine whether a licensing agreement within the meaning of subsection
50(1) of the Act existed between the Applicant and Mizkan.
[8]
In support of its assertions that a licensing
agreement did exist between the Applicant and Mizkan, the Applicant submitted a
document entitled “Confirmatory License.” In
analyzing the “Confirmatory License,” the
Registrar found that since the license agreement was only executed on December
13, 2011, with no reference to past events or prior agreements, the use of the
SAKURA trade-mark by Mizkan prior to December 13, 2011 did not accrue to the
benefit of the Applicant.
[9]
As a result, the Registrar found that the Applicant
did not satisfy its initial burden of proving that its SAKURA trade-mark was
used or made known in Canada prior to the Material date pursuant to subsection
16(3)(a) of the Act.
[10]
With respect to the section 2 ground of
opposition, the Registrar found that the only evidence of use that would enure
to the benefit of the Applicant was that of Mizkan between the effective date
of the license agreement, December 13, 2011, and the Material date for this
ground of opposition, which it held to be the filing date of the statement of
opposition, namely June 19, 2012.
[11]
In view of the small volume of sales to a
single customer in Canada and the relatively short period of use within the
meaning of section 50 of the Act, the Registrar was not satisfied that the
alleged trade-mark, SAKURA, had become known sufficiently to negate the
distinctiveness of the Respondent’s proposed SAKURA trade-mark in Canada as of
June 19, 2012.
[12]
The Applicant does not dispute the Registrar’s
findings. However, through evidence it filed before the Court, the Applicant
claims that it has remedied the deficiencies identified by the Registrar and
that this additional evidence would therefore have materially affected the
Registrar’s findings. In particular, the Applicant submits that this evidence,
namely, the Solemn Declaration of Koji Nozawa, Mizkan’s marketing director,
demonstrates that its use of the SAKURA trade-mark was carried out in
accordance with section 50 of the Act at all times since 1998, that is, well
before the filing date of the Respondent’s registration applications on March
24 and 25, 2011.
[13]
The Applicant contends that this Court should
consider its fresh evidence since Mr. Nozawa’s Solemn Declaration demonstrates
that Mizkan is a subsidiary of the Applicant and acts as distributor of the
Applicant’s products in North America. He further explains that the “Confirmatory License” signed between the Applicant
and Mizkan was written to confirm an earlier verbal license agreement between
the two companies, which was in force since at least as early as 1998 and up
until December 13, 2011.
[14]
The Applicant alleges that Mr. Nozawa’s
testimony demonstrates that it has satisfied its onus of establishing use of
the SAKURA trade-mark in Canada through a licensee in accordance with section
50 of the Act prior to March 25, 2011 and thereafter. As a result, the
Applicant asks this Court to refuse the Respondent’s trade-marks since the
fresh evidence demonstrates that the Applicant made prior use of the SAKURA
trade-mark and that there is confusion between its SAKURA trade-mark and the
Respondent’s trade-marks.
[15]
As indicated previously, the evidence filed by
the Applicant in support of its appeals of the Registrar’s decisions has not
been challenged by the Respondent.
III.
Issues and Standard of Review
[16]
In my view, this matter raises the following two
issues:
- Whether the fresh evidence adduced by the Applicant before this
Court would have materially affected the Registrar’s finding that Mizkan’s
use of the SAKURA trade-mark did not accrue to the benefit of the
Applicant prior to December 11, 2012 and if in the affirmative;
- Whether there is confusion between the parties’ SAKURA
trade-marks.
[17]
Generally, questions of fact or law that are
within the Registrar’s expertise are reviewable against the reasonableness
standard. In other words, this Court will only intervene if the Registrar’s
decision is clearly wrong (Producteurs Laitiers du Canada v Cyprus (Commerce and Industry), 2010 FC 719, at para 28, 393 FTR 1[Producteurs
Laitiers du Canada]; Restaurants La Pizzaiolle
Inc v Pizzaiolo Restaurants Inc, 2015 FC 240, at
para 40).
[18]
As contemplated by subsection 56(5) of the Act,
the reasonableness standard of review may give way to the correctness standard
where additional evidence is filed with the Court. In such instances, the
Court may exercise any discretion vested in the Registrar and come to its own
conclusion. However, as explained by Justice Yves de Montigny, now a judge of
the Federal Court of Appeal, in Producteurs Laitiers du Canada, this
will only occur where the fresh evidence is relevant insofar as it fills a gap
or remedies deficiencies identified by the Registrar or substantially adds to
what has already been submitted. On the other hand, where the fresh evidence
is repetitive and does not enhance the probative value of the evidence already
adduced, the standard of reasonableness will continue to apply (Producteurs
Laitiers du Canada, at para 28; see also Molson Breweries v John Labatt
Ltd, [2000] 3 FC 145 (CA), at para 51).
[19]
This Court’s case law is clear that fresh
evidence can only displace the deferential standard of reasonableness where it
can be shown to have materially affected the Registrar's findings of fact or
the exercise of his discretion (Retail Royalty Co v Hawke & Co
Outfitters LLC, 2012 FC 1539, at para 31, 424 FTR 164) [Retail Royalty
Co]. In other words, evidence that “merely
supplements or confirms earlier findings, or which pertains to facts posterior
to the relevant material date” is not sufficient to displace the burden.
Moreover, the test is “one of quality, not quantity”
(Canadian Council of Professional Engineers v Apa - The Engineered Wood Assn,
[2000] 184 FTR 55, at para 36, 7 CPR (4th) 239; Timberland Co v Wrangler
Apparel Corp, 2005 FC 722, at para 7, 272 FTR 270).
[20]
If fresh evidence adduced by the Applicant is
found to be material, then the Court’s role is to “decide
the issue on its merits” based on the evidence before it (Maison
Cousin (1980) Inc v Cousins Submarines Inc, 2006 FCA 409, at para 4 [Maison
Cousin]; Accessoires d'Autos Nordiques Inc v Canadian Tire Corp,
2007 FCA 367, at para 30). While the Court is usually hesitant to substitute
its own decision for that of the Registrar, where there is evidence before the
Court that the Registrar did not consider “the Court
will generally consider the case as it if were a trial de novo and may reverse
the Registrar’s decision if the new evidence so requires” (Cordon
Bleu International Ltd v Renaud Cointreau & Cie [2000] 10 CPR (4th)
367, at para 23, 102 ACWS (3d) 1150). In this respect, the Court is not
obliged to defer to the delegate's decision. Instead, the Court must decide the
issue on the basis of the evidence before it and the applicable legal
principles (Maison Cousin, above at paragraph 7).
[21]
The Federal Court of Appeal recently confirmed
this principle in Cathay Pacific
Airways Limited v Air Miles International Trading BV, 2015 FCA 253 at paragraph
15:
[15] The effect of section 56 was described
as follows by the Supreme Court in Mattel U.S.A. Inc. v. 3894207 Canada Inc.,
2006 SCC 22, [2006] 1 S.C.R. 772 (S.C.C.), at paragraph 35:
Where fresh evidence is admitted, it
may, depending on its nature, put quite a different light on the record that
was before the Board, and thus require the applications judge to proceed more
by way of a fresh hearing on an extended record than a simple appeal (Philip
Morris Inc. v. Imperial Tobacco Ltd. (No. 1) (1987), 17 C.P.R. (3d) 289
(F.C.A.)). Section 56 suggests a legislative intent that there be a full
reconsideration not only of legal points but also of issues of fact and
mixed fact and law, including the likelihood of confusion.
IV.
Analysis
A.
Would the fresh evidence adduced by the
Applicant before this Court have materially affected the Registrar’s findings?
[22]
As stated above, the key issue in the present appeals is whether the
Applicant’s fresh evidence demonstrates that a licensing agreement between the
Applicant and Mizkan existed prior to the Material date and that the Applicant
exerts direct or indirect control over the character or quality of the products
distributed by Mizkan which are sold in association with the SAKURA
trade-mark. For the reasons that follow, I believe that the Applicant has met
this burden.
[23]
The relevant portion of section 50 of the Act reads as follows:
50. (1) For the
purposes of this Act, if an entity is licensed by or with the authority of
the owner of a trade-mark to use the trade-mark in a country and the owner
has, under the licence, direct or indirect control of the character or
quality of the goods or services, then the use, advertisement or display of
the trade-mark in that country as or in a trade-mark, trade-name or otherwise
by that entity has, and is deemed always to have had, the same effect as such
a use, advertisement or display of the trade-mark in that country by the
owner.
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50. (1) Pour
l’application de la présente loi, si une licence d’emploi d’une marque de
commerce est octroyée, pour un pays, à une entité par le propriétaire de la
marque, ou avec son autorisation, et que celui-ci, aux termes de la licence,
contrôle, directement ou indirectement, les caractéristiques ou la qualité
des produits et services, l’emploi, la publicité ou l’exposition de la
marque, dans ce pays, par cette entité comme marque de commerce, nom
commercial — ou partie de ceux-ci — ou autrement ont le même effet et sont
réputés avoir toujours eu le même effet que s’il s’agissait de ceux du
propriétaire.
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[24]
It is well-established that for an applicant to meet the requirements of
section 50(1) of the Act, it must demonstrate that a licensing agreement
existed between itself and the licensee prior to the relevant date and that the
licensor has “direct or indirect
control of the character of quality of the goods” (Fairweather Ltd v Registrar of
Trade-marks, 2006 FC 1248, at paras 51 and 52, 301
FTR 263 aff’d 2007 FCA 376; Wells' Dairy, Inc v U L Canada Inc, [2000] 7
CPR (4th) 77, at para 42, 98 ACWS (3d) 189 [Wells’ Dairy]). Moreover,
evidence of a formal licensing agreement is not necessary to establish the
existence of a licensing agreement under section 50 of the Act (3082833 Nova
Scotia Co v Lang Michener LLP, 2009 FC 928 [Nova Scotia]; Wells' Dairy, above at para 38; TGI
Friday's of Minnesota Inc v Canada (Registrar of Trade Marks), [1999] 241
NR 362, sub nom Lindy v Canada (Registrar of Trade Marks), at para 9,
88 ACWS (3d) 201) As stated by Justice Kelen in Nova Scotia at
paragraph 32:
[32] […] A licensing agreement may be
inferred from the facts [and] […] need not be in writing [Wakefield Realty
Corp. v. Cushman & Wakefield Inc., 2004 FC 210, 247 F.T.R. 180 (F.C.), at
para. 56]. However, the mere fact that there is some common control between the
applicant's companies is not sufficient to establish that the use of the
trade-mark was controlled and therefore infer a licensing agreement [Cheung
Kong (Holdings) Ltd. v. Living Realty Inc. (1999), [2000] 2 F.C. 501, 179
F.T.R. 161 (Fed. T.D.), at paras. 44-45]. Evidence of control has to be
adduced.
[25]
In Empresa Cubana del Tabaco v Shapiro
Cohen, 2011 FC 102, 383 FTR 164, Justice Kelen explained
at paragraph 84, the three manners in which control can be demonstrated:
[84] There are three main methods by which
registered owners of trade-marks can demonstrate the control required to
benefit from the deeming provision in section 50(1) of the Act:
1. they can clearly swear to the fact
that they exert the requisite control: see, for example, Mantha &
Associés/Associates v. Central Transport Inc. (1995), 64 C.P.R. (3d) 354 (Fed.
C.A.), at paragraph 3;
2. they can provide evidence that
demonstrates that they exert the requisite control: see, for example, Eclipse
International Fashions Canada Inc. c. Shapiro Cohen, 2005 FCA 64 (F.C.A.), at
paragraphs 3-6; or
3. they can provide a copy of a
license agreement that explicitly provides for the requisite control.
[26]
In my view, the affidavit of Mr. Nozawa submitted before this Court
falls under the first category listed above as Mr. Nozawa swears that:
Under the verbal license concerning the
trade-mark SAKURA that was in force from at least as early as 1998 until
December 13, 2011 and that also covered Canada […] [the Applicant] handled the
quality control of all the goods produced by [Mizkan] that were sold in Canada
under the trade-mark SAKURA during that period.
[27]
In my view and in the absence of any rebuttal evidence or arguments from
the Respondent, Mr. Nozawa’s affidavit constitutes uncontradicted evidence that
the Applicant exerts control over the quality of the rice vinegars distributed
by Mizkan whose boxes are affixed with the SAKURA trade-mark. I am also
of the view that given Mr. Nozawa’s uncontradicted testimony and based on the
record before the Court, a verbal license agreement can be inferred between the
Applicant and Mizkan and that the “Confirmatory
License” agreement between them was signed to confirm the
existence of their verbal license agreement.
[28]
Thus, the fresh evidence submitted by the Applicant
fills in gaps identified by the Registrar, namely, Mr. Nozawa’s testimony
demonstrates that Mizkan’s use of the SAKURA trade-mark accrued in favour of
the Applicant since at least 1998 and would have materially affected the
Registrar’s determination that the Applicant did not satisfy its initial
evidentiary burden under subsection 16(3) of the Act.
[29]
As explained by the Registrar, the Applicant has
an initial evidentiary burden to demonstrate that its SAKURA trade-mark was
used or made known in Canada prior to the material date and has not been
abandoned at the date of advertisement of each of the applications (Joseph
Seagram & Sons Ltd v Seagram Real Estate Ltd, [1984] 3 CPR (3d) 325, at
para 5, TMOB No 69; John Labatt Ltd v Molson Companies Limited, [1990]
30 CPR (3d) 293, at para 36, 36 FTR 70).
[30]
To demonstrate prior use, the Applicant
submitted copies of documents purporting to show orders of SAKURA marked
vinegar dated between 1999 and 2012 and a number of sample invoices. While the
orders indicate that sales of SAKURA marked vinegar have been made in Canada
since at least December 21, 1999, in my view, the orders are not convincing evidence that the Applicant was
selling SAKURA vinegar in Canada through its verbal license agreement with
Mizkan since neither Mizkan nor the Applicant’s name appears on the order
documents.
[31]
On the other hand, the Registrar made a finding of fact that the sample
invoices support Mr. Nozawa’s assertions of sales of the Applicant’s vinegar in
Canada prior to the Material date. Of the sample invoices provided, only the
first three are relevant for establishing prior use as the other invoices
post-date the Material date. These three invoices indicate that Mizkan sold
240 cases of the Applicant’s vinegar in Canada bearing the SAKURA label since
July 19, 2010 which totaled $4, 172.00 in sales. Given the evidence of sales
and the Applicant’s demonstration that the SAKURA trade-mark was affixed on
boxes carrying the Applicant`s wares at the time of the transfer of wares in
accordance with section 4(1) of the Act, I am satisfied
the Applicant has met its initial evidentiary burden of demonstrating prior use
of the SAKURA trade-mark (Aerosol Fillers Inc (1980) v Plough (Canada) Ltd, [1981]
1 FC 679, at para 11, 5 ACWS (2d) 317; Playboy Enterprises Inc v
Germain, [1988] 1 FC 163, at para 13, 13 FTR 178).
[32]
Moreover, the evidence accepted by the Registrar demonstrates that the
Applicant did not abandon the SAKURA trade-mark before the material date of
June 19, 2012. On this point, the Registrar found that between the signing of
the confirmatory licensing agreement on December 13, 2011 and June 19, 2012,
Mizkan sold 120 cases of SAKURA vinegar representing approximately $2,300.00 in
sales.
[33]
Since I find that the Applicant has met its initial evidentiary burden
under section 16(3)(a) of the Act and that the mark has not been abandoned, I
must determine whether there is confusion between the Applicant’s SAKURA
trade-mark and the Respondent’s trade-marks.
B.
Is there confusion between the parties’ SAKURA
trade-marks?
[34]
The test for confusion is set out in subsection
6(5) of the Act, which reads as follows:
6. (1) For the purposes of this Act, a trade-mark or trade-name is
confusing with another trade-mark or trade-name if the use of the first
mentioned trade-mark or trade-name would cause confusion with the last
mentioned trade-mark or trade-name in the manner and circumstances described
in this section.
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6. (1) Pour l’application de la présente loi, une marque de
commerce ou un nom commercial crée de la confusion avec une autre marque de
commerce ou un autre nom commercial si l’emploi de la marque de commerce ou
du nom commercial en premier lieu mentionnés cause de la confusion avec la
marque de commerce ou le nom commercial en dernier lieu mentionnés, de la
manière et dans les circonstances décrites au présent article.
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[…]
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[…]
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(5) In determining whether trade-marks or trade-names are
confusing, the court or the Registrar, as the case may be, shall have regard
to all the surrounding circumstances including
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(5) En décidant si des marques de commerce ou des noms commerciaux
créent de la confusion, le tribunal ou le registraire, selon le cas, tient
compte de toutes les circonstances de l’espèce, y compris :
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(a) the inherent distinctiveness of the trade-marks or trade-names
and the extent to which they have become known;
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a) le caractère distinctif inhérent des marques de commerce ou
noms commerciaux, et la mesure dans laquelle ils sont devenus connus;
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(b) the length of time the trade-marks or trade-names have been in
use;
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b) la période pendant laquelle les marques de commerce ou noms
commerciaux ont été en usage;
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(c) the nature of the goods, services or business;
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c) le genre de produits, services ou entreprises;
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(d) the nature of the trade; and
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d) la nature du commerce;
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(e) the degree of resemblance between the trade-marks or
trade-names in appearance or sound or in the ideas suggested by them.
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e) le degré de ressemblance entre les marques de commerce ou les
noms commerciaux dans la présentation ou le son, ou dans les idées qu’ils
suggèrent.
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[35]
As I explained in Pizzaiolle, above, the
test for confusion is applied from the point of view of the average consumer.
As I stated in that case at paragraph 54:
[54] […] in order to determine whether there
is confusion between two trade-marks, one for which registration is sought and
the other already registered or previously in use, one must ask oneself
whether, as a first impression in the mind of a casual consumer somewhat in a
hurry, the sight of the mark for which registration is being sought is likely
to give the impression, at a time when he or she has no more than an imperfect
impression of the mark already registered and previously in use, and does not
pause to give the matter any detailed consideration or scrutiny, or to examine
closely the similarities and differences between the two marks, that the wares
or services associated with these marks were produced, sold or provided, as the
case may be, by the same person (Veuve Clicquot Ponsardin c. Boutiques Cliquot
Ltée, [2006] 1 S.C.R. 824 (S.C.C.) [Veuve Clicquot Ponsardin] at para 20;
Masterpiece, above, at para 40; and Miss Universe Inc. v. Bohna (1994), [1995]
1 F.C. 614 (Fed. C.A.) [Miss Universe] at paras 10-11).
[36]
Generally, the Respondent has the burden of
demonstrating that there is no confusion between the marks (Pizzaiolle, at
para 57). In this case, as the Respondent did not submit any materials before
the Court, I reviewed the arguments it submitted before the Registrar.
[37]
Regarding the inherent distinctiveness of the
SAKURA mark, I agree with the Applicant that both parties’ marks are composed
of the same foreign word and have approximately the same amount of inherent
distinctiveness. Therefore, this factor is neutral.
[38]
With respect to the length of time each mark has
been in use, since the Respondent’s mark is a proposed use trade-mark, it has
never been used in Canada. As I stated above, the evidence suggests that the
Applicant’s trade-mark has been in use in Canada since at least July 19,
2010. This factor favours the Applicant.
[39]
Regarding the nature of the wares, the Applicant
contends that there is an overlap between the parties’ activities since they
both sell food products belonging to the same category, namely, condiments that
enhance the taste of food. The Respondent however argued before the Registrar
that while the wares fall within the food category, the descriptions are
clearly different especially since the Respondent does not list vinegar as one
of its wares. In my view, this factor favours the Applicant since despite the
fact that the Respondent does not sell vinegar, vinegars and sauces fall under
the same type of food category and it is therefore possible for the wares of
both parties to be sold through the same channels of trade and potentially the
same retailers (Beavertails Brands Inc v 465708 Ontario Inc, 2014 TMOB
90, at para 36).
[40]
With respect to the nature of the trade, the
Supreme Court of Canada has taken the view that the Court must consider “what the respondent was doing, but also what it could do,
considering the lack of restrictions in the registration of its trade-mark”
(Masterpiece, above at para 53; see also Maison Cousin, above at
para 15). Since there are no restrictions to the Respondent’s trade-mark
applications in this case, its SAKURA marked products could be sold in the same
retail establishments where the Applicant’s products are sold. Therefore, I
agree that this factor favours the Applicant.
[41]
In my view, the degree of resemblance is strong
since both marks share the word SAKURA. As the Supreme Court stated in Masterpiece
at paragraph 49:
[49] [...] the degree of resemblance,
although the last factor listed in s. 6(5), is the statutory factor that is
often likely to have the greatest effect on the confusion analysis (K. Gill and
R. S. Jolliffe, Fox on Canadian Law of Trade-marks and Unfair Competition (4th
ed. (loose-leaf)), at p. 8-54; R. T. Hughes and T. P. Ashton, Hughes on Trade
Marks (2nd ed. (loose-leaf)), at §74, p. 939). As Professor Vaver points out,
if the marks or names do not resemble one another, it is unlikely that even a
strong finding on the remaining factors would lead to a likelihood of confusion.
The other factors become significant only once the marks are found to be
identical or very similar (Vaver, at p. 532). As a result, it has been
suggested that a consideration of resemblance is where most confusion analyses
should start (Vaver, at p. 532).
[42]
Given the strong degree of resemblance between
the marks and since the other factors favour the Applicant save the neutral
factor, I am of the view that the test for confusion favours the Applicant.
[43]
Accordingly, the appeal is allowed and the
Registrar’s decision is set aside. The Respondent is not entitled to register
its trade-marks bearing the applications nos. 1, 520, 586 and 1, 520, 821.
[44]
Since the Applicant met its initial evidentiary
burden under subsection 16(3)(a) of the Act, there is no need for me to
consider the grounds of opposition under section 2 of the Act as the applicant
need only raise one substantial issue for decision pursuant to subsection 38(4)
and 38(4) of the Act (see also Shell Canada Ltd
v PT Sari Incofood Corp, 32 CPR (4th) 180, at para 4, rev’d on other grounds
2008 FCA 279).
[45]
Given that these appeals were brought to remedy
deficiencies identified by the Registrar in the evidence submitted by the
Applicant in support of its opposition to the Respondent’s registration
applications, and not to overturn any error that would have been committed by
the Registrar, the Applicant will bear it costs in these appeals.