Docket: T-185-16
Citation:
2018 FC 42
Ottawa, Ontario, January 17, 2018
PRESENT: The
Honourable Mr. Justice Southcott
BETWEEN:
|
SADHU SINGH
HAMDARD TRUST
|
Applicant
|
and
|
NAVSUN HOLDINGS
LTD.
|
Respondent
|
JUDGMENT AND REASONS
I.
Overview
[1]
This decision relates to an appeal under s 56(1)
of the Trade-marks Act, RSC 1985, c T-13 [the Act], of a decision by a
member of the Trade-marks Opposition Board [the Board] dated November 30, 2015
[the Decision], refusing the Applicant’s application to register the trade-mark
AJIT based on its use in association with printed publications and newspapers.
[2]
For the reasons explained in greater detail
below, this appeal is dismissed. I find that the Board correctly applied the
applicable law, that the new evidence introduced in this appeal would not have
materially affected the Board’s decision, and that the decision is reasonable.
II.
Background
[3]
The Applicant, Sadhu Singh Hamdard Trust [the
Trust], is a charitable trust established under the laws of India. It publishes
a daily newspaper in India named “AJIT” and
operates a corresponding website, both in the Punjabi language. The Respondent,
Navsun Holdings Ltd. [Navsun], is a Canadian corporation. Navsun also publishes
a newspaper bearing the name “AJIT” and operates
a corresponding website, again both in Punjabi. The Navsun newspaper is published
weekly and is distributed in Vancouver and the Greater Toronto Area. For the
sake of clarity, the Trust’s newspaper will be referred to as the “Ajit Daily” and Navsun’s newspaper will be referred
to as the “Ajit Weekly”.
[4]
“Ajit” is a Punjabi word meaning “invincible”
or “unconquerable”. The parties to this application
have been engaged in intellectual property litigation surrounding their use of
this word in a number of jurisdictions and for more than a decade. This
includes an action by the Trust against Navsun for passing off and copyright
infringement (see Sadhu Singh Hamdard Trust v Navsun Holdings Ltd, 2016
FCA 69 rev’g 2014 FC 1139). Counsel advised at the hearing of this application
that the claims in that action had recently been amended to include an action
for trade-mark infringement, as a result of the Trust having successfully
registered another trade-mark in Canada.
[5]
At issue in this case is the Trust’s trade-mark
application #1487122, filed in 2010 to register the mark AJIT for use in association
with printed publications and newspapers. This application was opposed by
Navsun, which alleged, among other things, that the applied-for mark did not
satisfy the requirement of distinctiveness. In the Decision that is the subject
of this appeal, the Board agreed with this ground of opposition.
III.
The Board’s Decision
[6]
The evidence before the Board consisted of an
affidavit by Mr. Kanwar Bains, a director of Navsun, as well as the transcript
of his cross-examination and related exhibits, and an affidavit by Mr. Narinder
Pal Singh, the Circulation Manager of the Trust’s newspaper in Jalandar, India.
[7]
The Decision sets out the history of the Ajit
Weekly and its publication in Canada, noting that it was first printed in 1993
and that, at the time of the Decision, Navsun was printing 11,000 copies per
week through its Vancouver-based printer and 13,000 copies per week through its
Toronto-based printer. The Board also referred to Navsun’s publication of the Ajit
Weekly online, through a website which was launched in 1998 and which received
between 14,000 to 38,000 visits each month. Because the Trust’s newspaper is a
major Punjabi newspaper in India, the Board found that it was likely that Navsun
had knowledge of that paper when it adopted the AJIT mark in Canada and that it
was likely that Navsun’s readers in Canada were, and continue to be, aware that
a newspaper of the same name is published in India.
[8]
The Board also reviewed the evidence of Narinder
Pal Singh, including records appended to his affidavit, which the Trust relied
upon to substantiate its claim that the applied-for mark had been used in
Canada since at least as early as 1968. This evidence established that the
Trust’s newspaper was delivered to Canadian addresses, although in small
numbers. There were 4 subscriptions in Canada in the period from January to
June 1968. In relation to later periods, the Board calculated that there were
on average 29 annual subscribers for the period from 1990 to 1993, 13 for 1994
to 2001, and 6 for 2002 to 2010.
[9]
Applying the date of filing of the opposition
(December 28, 2012) as the material date as of which to assess distinctiveness,
the Board found that as of that date Navsun’s mark AJIT had acquired a
significant reputation in Canada for the target population served by its
newspaper. The Board also concluded that, based on the evidence that the Ajit
Daily had only 6 subscribers from 2002 to 2010, the Trust’s mark had at best a
minimal reputation in Canada for the same target population as of the material
date. Therefore, the Board found that Navsun’s mark AJIT was sufficiently known
to negate the distinctiveness of the applied-for mark as of the material date.
The Board stated that, in other words, at the material date the target
population reading the Canadian newspaper AJIT would identify a Canadian
publisher as the source of the newspaper, rather than the Trust.
IV.
Issues and Standard of Review
[10]
Each of the parties has filed additional
evidence in this appeal, as permitted by s 56(5) of the Act. The Trust’s
evidence consists of 21 affidavits sworn by witnesses of fact. Navsun has filed
two affidavits. The first is a supplementary affidavit by Mr. Kunwar Bains, who
had provided Navsun’s evidence before the Board. The other is an expert
affidavit sworn by Mr. Sukhwant Hundal. The submission of the additional
evidence gives rise to some of the issues for the Court’s consideration in this
appeal, including the selection of the standard of review to be applied in considering
the Decision.
[11]
The Applicant articulates the following issues
for the Court’s consideration:
A. Whether the new evidence would have materially affected the Board’s
decision;
B. Whether the Board erred in permitting Navsun to rely on its own deceptive
use of the trade-mark;
C. Whether the Board correctly applied the test for distinctiveness;
D. Whether the fact that AJIT is a common first name among Punjabi
males is relevant;
E. Whether the affidavit of Sukhwant Hundal is admissible;
F. Whether the Respondent may raise unpleaded grounds of opposition.
[12]
The Respondent instead characterizes the issues
as follows:
A. Whether the Applicant is entitled to raise new issues on appeal
about its electronic newspapers;
B. The selection of the appropriate standard of review;
C. Whether the Board’s identification and application of the legal test
and evidentiary standard was incorrect or unreasonable;
D. Whether infringement is relevant to the distinctiveness of the
Applicant’s AJIT mark;
E. Whether the Applicant’s new evidence about foreign and internet use would
have materially affected the Board’s factual findings regarding the
distinctiveness of the Applicant’s AJIT mark in association with printed
publications and newspapers in Canada;
F.
Whether the Board’s factual finding that any distinctiveness
of the Applicant’s AJIT marks had been negated by the Respondent’s reputation
in Canada was reasonable.
[13]
Having considered the parties’ respective
written and oral submissions, my conclusion is that the following list of
issues represents an appropriate analytical framework within which to address
the parties’ arguments:
A. Is either of the parties seeking to raise a new issue on appeal that
was not pleaded before the Board?
B. What is the appropriate standard of review?
C. Did the Board apply an incorrect test for distinctiveness, or
otherwise err in law, in assessing the distinctiveness of the Applicant’s mark?
D. Applying the appropriate standard of review, taking into account the
new evidence introduced on appeal, did the Board err in its findings regarding
the distinctiveness of the Applicant’s mark?
V.
Analysis
A.
Is either of the parties seeking to raise a new
issue on appeal that was not pleaded before the Board?
[14]
Each of the parties has taken the position that
the other is seeking to raise a new issue on appeal that was not pleaded before
the Board. In relation to the Trust’s case, Navsun asserts that the Trust is
raising a new issue under the guise of introducing new evidence in the appeal. The
new affidavits filed by the Trust include evidence of the readership of its
electronic newspaper, which the Trust wishes to rely upon to establish that its
mark is distinctive of its printed newspapers in Canada. The Trust argues that,
although its application for registration of its mark applied to “printed publications and newspapers,” that language
is broad enough to apply to its electronic newspaper.
[15]
In making this argument, the Trust relies on
the decision of the Ontario Court of Appeal in John v Ballingall, 2017
ONCA 579 [John], which interpreted the word “newspaper”
to include the online version of a newspaper. At paragraphs 22 to 24 of that
decision, the Ontario Court of Appeal relied on its earlier decision in Weiss
v Sawyer (2002), 61 OR (3d) 526 [Weiss], in concluding that a
newspaper does not cease to be newspaper when it is published online, as
applicable principles of statutory interpretation favour an effort to achieve
the intent of the legislature in the context of advances in technology.
[16]
I agree with Navsun’s position that this
argument seeks to raise a new issue that was not pleaded before the Board. The
Trust has referred to nothing in the record to suggest that that this argument
was raised before the Board. To the contrary, the record evidences an intention
by the Trust not to seek registration of its mark in association with
electronic publications. As reflected in the Decision, the Trust’s original
application filed on June 10, 2010, sought to register the mark AJIT in
association with “printed and electronic publications,
newspapers and magazines” and with the operation of a website. However,
the application was subsequently amended to cover only “printed
publications and newspapers.” The amendment to remove the express
references to electronic material and the operation of a website can only be interpreted
as evidencing an intention by the Trust to restrict its application to use in
association with printed material.
[17]
Indeed, the particular argument advanced by the Trust,
in reliance upon the jurisprudence from the Ontario Court of Appeal, did not appear
even in the Applicant’s Memorandum of Fact and Law filed in this appeal. It was
first raised in the Trust’s oral submissions before the Court, supported by
case law provided to the Court on the day of the hearing.
[18]
I also find this case law to provide little
support for the Trust’s position. Both Weiss and John were
decided in a very different context, being the interpretation of the limitation
period prescribed by s 5(1) of the Libel and Slander Act, RSO 1990, c
L12, for actions for libel in a newspaper. I would therefore consider this
jurisprudence, and the principles of statutory interpretation upon which it
relies, to be of little application to the question of the meaning of the word “newspapers” within the phrase “printed publications and newspapers” employed in the
Trust’s amended trade-mark application. Again taking into account the
amendments made to the trade-mark application as described above, I find that
the application cannot be interpreted as intended to extend to the electronic
version of the Trust’s newspaper.
[19]
While s 56(5) of the Act entitles the Trust to
introduce new evidence in this appeal, the Trust is not entitled to rely on
that evidence to raise new issues that were not before the Board (see Procter
& Gamble Inc. v Colgate-Palmolive Canada Inc., 2010 FC 231 at para 26,
and Tiger Calcium Services Inc. v Compass Minerals Canada Corp., 2015 FC
1257 at para 44). In essence, the new argument that the Trust is now advancing
before the Court represents an impermissible effort to expand the scope of the
Trust’s application for registration of its mark.
[20]
This conclusion is relevant to the question of
the effect of the Trust’s new evidence, as to the readership of its electronic
newspaper, upon the distinctiveness of the Trust’s mark as used in association
with its printed newspapers in Canada. That question will be addressed later in
these Reasons.
[21]
The Trust likewise argues that Navsun is also attempting
to raise new grounds of opposition in this appeal that were not pleaded before
the Board. Navsun has filed new evidence concerning a Hindi newspaper called “Ajeet Patrika,” the prevalence of use of the word “Ajit” in business names in India, and the use of “Ajit” as a first name for male individuals. The Trust
submits that none of these circumstances were alleged in Navsun’s statement of
opposition before the Board. It contends that Navsun is attempting to assert,
under the guise of a distinctiveness argument, that the Trust’s mark
contravenes s 12(1)(a) of the Act, which in certain circumstances precludes
registration of an individual’s name as a trade-mark.
[22]
I agree with the Trust that the new evidence
offered by Navsun should not be considered by the Court in deciding this appeal.
Navsun’s statement of opposition raised several grounds of opposition under s
38(2) of the Act. Navsun asserted under s 38(2)(a) that the Trust’s application
did not comply with certain requirements of s 30 of the Act and asserted under
s 38(2)(c) that the Trust was not the person entitled to registration under s
16(1)(a) of the Act. The Board rejected those grounds of opposition and Navsun
has not appealed those findings. Navsun also asserted under s 32(2)(d) that the
Trust’s mark is not distinctive within the meaning of s 2 of the Act. It raised
that argument on two separate grounds. The first was that the Trust’s mark does
not actually distinguish the wares and services of the Trust from the wares and
services of Navsun, by reason of Navsun’s use of its own mark. The Board’s
acceptance of this ground of opposition is the sole basis for the present
appeal by the Trust. The second ground of opposition raised by Navsun under s
32(2)(d) was that the Trust’s mark does not actually distinguish its wares and
services from those of others and is not adapted to distinguish them. The Board
made no findings on this latter ground, and Navsun has not appealed this
result. The new evidence filed by Navsun could have been relevant to this
latter ground of opposition had it been the subject of this appeal. However, I
do not consider it relevant to the distinctiveness of the Trust’s mark by
reason of Navsun’s use of its own mark, which is, as noted above, the sole
ground for this appeal.
[23]
I note that the Trust also raises various other objections
to the admission of Navsun’s affidavit from its proposed expert witness, Mr.
Sukhwant Hundal. Given my above conclusion on the relevance of Navsun’s new
evidence as a whole, it is not necessary for me to address these additional
objections specifically directed at Mr. Hundal’s affidavit.
B. What is the appropriate standard of review?
[24]
The parties are agreed that the standard of
review for a decision of the Board is usually reasonableness, but that this
will give way to a standard of correctness where new evidence proffered on
appeal would have materially affected the Board’s decision (see Molson
Breweries v John Labatt Ltd, [2000] 3 FCR 145 at para 51 (FCA)). For this
to be the case, the fresh evidence must be relevant. For example, it must fill
a gap, remedy deficiencies identified by the Board, substantially add to what
has already been submitted, or enhance the probative value of the evidence
already adduced (see Kabushiki Kaisha Mitsukan Group Honsha v Sakura-Nakaya
Alimentos Ltda., 2016 FC 20 at paras 18-19). A correctness standard of
review then applies to findings of fact which are materially affected by the
new evidence, while other findings of fact remain subject to the more
deferential reasonableness standard (see Eclectic Edge Inc. v Gildan Apparel
(Canada) LP, 2015 FC 1332 at paras 43-48).
[25]
The parties also agree that, if the Court is
being asked to consider an extricable or pure question of law arising from the
Board’s decision, then the standard of correctness applies to the Court’s
review of that question (see Cyprus (Commerce and Industry) v Producteurs Laitiers
du Canada, 2010 FC 719 at para 29, aff’d 2011 FCA 201).
[26]
I will apply these principles surrounding the
standard of review to the substantive issues canvassed below.
C. Did the Board apply an incorrect test for distinctiveness, or
otherwise err in law, in assessing the distinctiveness of the Applicant’s mark?
[27]
The Trust advances various arguments in support
of its position that the Board erred in the test it applied, or otherwise in the
analytical approach that it adopted, in addressing the question of whether
Navsun’s use of its mark had negated the distinctiveness of the Trust’s mark.
In its written and oral submissions, the Trust relies upon a number of
authorities of this Court and the Federal Court of Appeal in support of its
arguments. At the conclusion of his oral submissions, the Trust’s counsel
identified what he characterized as a list of policy questions, derived from
the case law, which he submitted the Board was obliged to consider and the
Court must now consider in this appeal. As the Trust’s counsel did not, for the
most part link, these policy questions individually to particular cases, I will
consider the Trust’s position by reference to the various authorities upon
which it relies and the arguments it derives from those authorities. To the
extent that these arguments raise what can be characterized as pure or extricable
questions of law, I will examine them under the standard of correctness in this
potion of these Reasons.
[28]
The Trust argues that the Board applied the
wrong test for considering whether Navsun’s use of its mark had negated the
distinctiveness of the Trust’s mark. The Board relied on the following
statement by Justice Noël in Bojangles’ International LLC v Bojangles Café
Ltd., 2006 FC 657 [Bojangles] at para 34:
[34] A mark must be known to some
extent at least to negate the established distinctiveness of another mark, and
its reputation in Canada should be substantial, significant or sufficient. […]
[29]
The Trust submits that Justice Noël’s statement
simply reflects that evidence is needed to prove facts and that the Board erred
by using it as a test for the determination of distinctiveness. In the Trust’s
submission, the applicable test is that prescribed by the Federal Court of
Appeal in Miranda Aluminum Inc. v Miranda Windows & Doors Inc., 2010
FCA 104 [Miranda FCA], that the challenger to the distinctiveness of
another mark must have established in the minds of consumers that there was a
competing source of the goods. The Trust refers to paragraph 29 of Miranda
FCA, in which Justice Evans stated as follows:
[29] In light of the
evidence indicating the father’s abandonment of the use of the name, the breaks
in the corporate chain, the absence of assignments of rights, the father’s
deceptive later use of the name, and the Judge’s credibility finding, I am not
satisfied that the Judge made a palpable and overriding error when she
concluded that the father’s use of the name Miranda had not destroyed its
distinctiveness by establishing in the minds of consumers that there was a
competing source for the aluminum products and associated services. Again, the
appellant is asking the Court to step into the shoes of the Judge and reweigh
the evidence. This is not the function of an appellate court.
[30]
I disagree with the Trust’s position that Miranda
FCA prescribes a test for determining when the use of a mark by one party
has destroyed the distinctiveness of the mark of another. Rather, the statement
by the Federal Court of Appeal on which the Trust relies is a description of a factual
finding of the trial judge with which the appellate court found no error. The
relevant analysis in the trial decision is found at paras 38-42 of Miranda
Aluminum Inc. v Miranda Windows & Doors Inc., 2009 FC 669 [Miranda
FC], in which Justice Simpson found that the applicant’s use of the name
Miranda was not intended to present the applicant as a distinct company and
concluded that the distinctiveness of the respondent’s mark was not affected.
[31]
I find no basis to conclude that Miranda FCA
detracts from the law as stated in Bojangles, in which Justice Noël
canvassed the jurisprudence surrounding the evidential standard that has to be
satisfied in order to prove that a trademark is sufficiently known to negate
another trademark’s distinctiveness and described that standard in the manner
quoted by the Board in the case at hand. I find no error of law in the Board’s
reliance on Bojangles.
[32]
I also understand the Trust to be arguing that
the Board was required to balance the competing interests of the parties, as well
as the public interest, in determining whether registration of the Trust’s mark
should have been allowed. The Trust refers to the decision in Aladdin
Industries Inc. v Canadian Thermos Products Ltd. (1969), 57 CPR 230 [Aladdin] at
275, in which the Exchequer Court of Canada described in this manner the
analysis it conducted in deciding whether to expunge the respondent’s
trade-mark THERMOS. That case arose from the respondent’s mark having become
generic, as a result of which the applicant wished to use the name THERMOS in
its own business. The Court concluded that expungement of the respondent’s mark
would involve a serious risk that an appreciable number of consumers might be
confused if bottles from manufacturers other than the respondent were marked as
THERMOS bottles. This risk outweighed the disadvantage to the applicant in not
being able to use the mark in its business. Aladdin dealt with a fact
pattern quite dissimilar from that of the case at hand, and I do not regard it
as prescribing a test or analysis that the Board was required to apply in
determining whether one mark has negated the distinctiveness of another.
[33]
The Trust also relies upon the recent decision
of the Federal Court of Appeal in the Trust’s passing off action against
Navsun, to support an argument that the Board erred by adopting an error of law
on the part of the trial judge in that other case. After finding that Navsun
had succeeded in its ground of opposition based on distinctiveness, the Board
stated the following at paragraph 43 of the Decision, under the heading “Related Jurisprudence”:
[43] In the recently decided Federal
Court case Sadhu Singh Hamdard Trust v. Navsun Holdings Ltd, 2014 FC
1139, the plaintiff Sadhu (the applicant herein) accused Navsun Holdings (the
opponent herein) of copyright infringement, passing off, and making false
statements about Sadhu’s publication the Ajit Weekly. None of Sadhu’s
claims succeeded. The Court case is of course distinguishable from the present
opposition in many respects and in particular the Court was concerned with the
mark AJIT in the Punjabi script rather than with the English term AJIT.
Nevertheless, I note that the Court made findings of fact comparable to the
findings of fact that I have made in this opposition, albeit on the basis of a
different evidentiary record:
[83] The Plaintiff alleged that
the mark is “famous” amongst the Punjabi speaking public. At the hearing, the
Plaintiff argued that there is “no dispute - it is a famous institution”. The
Plaintiff submitted that the evidence of large circulation in the Punjab and
the paper’s availability on the internet shows that everyone knows of the
paper. The Plaintiff’s evidence is that every Punjabi family worldwide knows
the Ajit Daily and in fact even the Defendants’ family read the Ajit Daily in
India.
[84] The Plaintiff’s
evidence falls short of demonstrating reputation in the Defendants’ geographic
region. There is no survey or other independent
reputable evidence before me to find that the Ajit Daily has commercial
goodwill in Canada or is famous in Canada as the only evidence presented to me
is of seven subscribers in Canada in 2010… (emphasis added)
[34]
Subsequent to the Decision, the trial decision
cited by the Board was overturned in Sadhu Singh Hamdard Trust v. Navsun
Holdings Ltd, 2016 FCA 69 [Sadhu Singh Hamdard Trust], in which Justice
Gleason, writing for the Federal Court of Appeal, held as follows at paragraph
25:
[25] In analyzing the
existence of goodwill solely from the perspective of those who were shown to
have read the Ajit Daily in Canada, the Federal Court erred in law because use
of a trade-mark in Canada is not a necessary pre-condition for the existence of
goodwill in Canadian law. Rather, the requisite goodwill within a defendant’s
market may be shown to exist by virtue of the reputation of the plaintiff’s
trade-mark in the defendant’s market, even where the plaintiff does not use the
trade-mark in that market: Orkin Exterminating Co. Inc. v. Pestco Co. of
Canada Ltd. et al., [1985] O.J. No. 2536, 1985 CarswellOnt 144; Enterprise
Rent-A-Car Co. v. Singer, [1996] 2 F.C.R. 694, 1996 CarswellNat 2506 at
paragraph 52 aff’d 1998 CanLII 7405 (F.C.A.).
[35]
The Trust argues that the Board relied upon the
findings of fact in the trial decision as to the reputation of the Trust’s mark
in Canada, findings which were then set aside by the Federal Court of Appeal as
having been based on a misapprehension of law. In particular, the conclusion on
appeal was that the trial judge’s finding that the Trust had no goodwill in
Canada was arrived at after wrongly excluding the reputation achieved in the
minds of Punjabi Canadian immigrants before coming to Canada. The Trust submits
that the Board’s reliance upon the trial judge’s findings adopted that error of
law and further represents an error by the Board because it limited the
assessment of distinctiveness to the Trust’s mark’s reputation with its six
subscribers in Canada while ignoring the 450,000 immigrants who arrived in
Canada already familiar with the mark.
[36]
I disagree with the Trust’s argument that this
portion of the Decision demonstrates an error of law on the part of the Board,
as a review of the Decision does not support the Trust’s contention that the
Board relied upon findings of fact made by the trial judge. Rather, the Board
expressly stated that the trial decision was distinguishable in many respects
and, even in noting that the Court had made findings of fact comparable to
those of the Board, the Board observed that this was on the basis of a
different evidentiary record. It is also significant that the Board’s reference
to the related jurisprudence followed the conclusion of the Board’s own
analysis of the distinctiveness of the Trust’s mark and its conclusion that
Navsun had succeeded on that ground of opposition. While the Board then
proceeded to point out the consistency between its findings and those of the Federal
Court in the Trust’s passing off action, I cannot conclude that the Board
relied upon the Court’s findings of fact in arriving at its own findings.
[37]
Moreover, I disagree that the legal principle
underlying the decision of the Federal Court of Appeal applies to the present
case. The relevant analysis in Sadhu Singh Hamdard Trust was concerned
with whether or not the Trust had proven the elements necessary to succeed in
an action for passing off. First, it was necessary for the Trust to demonstrate
the existence of goodwill. Having noted at paragraph 25 that use of a trade-mark
in Canada is not a necessary precondition for the existence of goodwill in the
Canadian market, Justice Gleason reached the following conclusions at paragraph
27:
[27] Here, there was evidence before
the Federal Court to indicate that the Ajit Daily enjoyed a reputation in the
eyes of several affiants in Canada as a well-known Punjabi-language newspaper
published in India. There was also evidence that a number of Canadians accessed
the Ajit Daily’s online version by visiting its website. It was incumbent on
the Federal Court to evaluate this evidence to determine whether it was
sufficient to establish that the Ajit Daily had garnered a reputation among a
wider group in Canada than the few subscribers who bought the paper. Had such a
wider reputation been established, it would have been sufficient to establish
the requisite goodwill to meet the first step in the tripartite test for
passing off. The Federal Court, however, did not engage in this analysis as it
erroneously viewed the issue of goodwill from the vantage point of the few
Canadian subscribers who were shown to have purchased the Ajit Daily in Canada.
The Federal Court therefore erred in law as it failed to apply the correct test
for the assessment of goodwill.
[38]
The second element of passing off, deception of
the public by misrepresentation, involved demonstrating that Navsun’s mark was confusing
with the Trust’s mark. Justice Gleason’s conclusions on this element included a
finding that the trial judge had erred by failing to consider the evidence as
to the reputation that the Ajit Daily enjoyed, which may have contributed to
the mark’s acquiring distinctiveness (para 30). The trial judge’s analysis of distinctiveness,
in assessing confusion, is found at paragraphs 89 to 91 of the Federal Court’s
decision. This analysis appears to have considered only inherent
distinctiveness, not acquired distinctiveness. In other words, in assessing the
distinctiveness of the Trust’s mark, the trial judge had not given any
consideration to the reputation of the Ajit Daily, whether acquired through
subscriptions to the print newspaper in Canada or acquired through other means.
[39]
Neverthless, I read the appellate finding, that
the Federal Court had erred by failing to consider the effect of the Ajit
Daily’s reputation upon acquired distinctiveness, as including the reputation
that Justice Gleason explained at paragraph 27 the
Federal Court was required to assess in considering goodwill, i.e. a possible
reputation among a wider group in Canada than the few subscribers who bought
the print version of the paper. As such, Sadhu Singh Hamdard Trust
turned in part on conclusions as to the evidence that should have been
considered in assessing the acquired distinctiveness of the Trust’s mark.
However, it remains the case that those conclusions were reached in the context
of a claim for passing off in which, as clearly established by the authorities
cited by the Federal Court of Appeal, the reputation and resulting goodwill that
are the subject of the claim need not arise from the plaintiff’s use of the
relevant trade-mark in the defendant’s market. It follows that, in assessing a
passing off claim, the distinctiveness of the mark relevant to the confusion
assessment can also be acquired through use of the plaintiff’s mark outside
Canada. As submitted by Navsun, the principles are different in the context of
an application to register or maintain a trademark, where the jurisprudence
provides that distinctiveness of a mark can only be acquired by use in Canada.
[40]
Navsun refers the Court in particular to the
decision in Boston Pizza International Inc. v Boston Chicken Inc., 2003
FCA 120 [Boston Pizza], in which the Federal Court of Appeal stated as
follows at paragraph 13:
[13] While there may be some difference
between distinctive character and the distinctiveness of a mark, the
jurisprudence is consistently to the effect that distinctiveness can only be
acquired by use in Canada. It is not obvious why the demonstration of
"distinctive character" should not be subject to the same condition.
The following comments of Tomlin J. in Impex Electrical Ltd. v. Weinbaum
(1927), 44 R.P.C. 405, at p. 410 have frequently been cited in the Federal
Court:
For the purpose of seeing whether the
mark is distinctive, it is to the market of this country alone that one has to
have regard. For that purpose foreign markets are wholly irrelevant, unless it
be shown by evidence that in fact goods have been sold in this country with a
foreign mark on them, and that the mark so used has thereby become identified
with the manufacturer of the goods.
See Societe des Accumulateurs
fixes et de traction v. Charles Le Borgne Ltee (1975), 22 C.P.R. (2nd)
178 (F.C.T.D.), Madger v. Brecks Sporting Goods Co. (1973), 17 C.P.R. (2nd)
201 (F.C.A.), Consorzio del Prosciutto di Parma v. Maple Leaf Meats Inc.
(2001), 11 C.P.R. (4th) 48 (F.C.T.D), Unitel Communications Inc.
v. Bell Canada (1995), 61 C.P.R. (3rd) 95. (F.C.T.D).
[Emphasis added]
[41]
While Boston Pizza was addressing the
requirement to show “distinctive character”
under s 14(1)(b) of the Act, in connection with an application for registration
in Canada of a foreign registered trademark, the Court’s conclusion was based
on jurisprudence surrounding distinctiveness for trademarks applied for based
on use in Canada. As identified in the above quotation, Boston Pizza
relied in part on the comments of Justice Tomlin in Impex Electrical Ltd. v
Weinbaum (1927), 44 RPC 405 [Impex]. In Consorzio Del Prosciutto
Di Parma v Maple Leaf Meats Inc., [2001] 2 FC 536 at para 28, aff’d 2002
FCA 169, the Federal Court relied on the same quotation from Impex in
considering an effort by the applicant, a consortium of prosciutto producers from
Parma, Italy, to expunge the trade-mark PARMA registered to the respondent. The
Court noted the irrelevance of the “spillover”
effect, in that case an increasing recognition in Canada of the reputation of prosciutto
produced in Parma, Italy, as opposed to the respondent’s actual sales in Canada
of meat products in association with the respondent’s mark. In concluding that
the applicant had failed to demonstrate that the respondent’s mark was not distinctive,
the Court remarked at paragraph 35 that the distinctiveness of a trademark must
be measured in the Canadian marketplace alone.
[42]
I note that one of the authorities
identified by the parties is the decision in Motel 6, Inc. v No. 6 Motel
Ltd. (1981), 56 CPR (2d) 44 [Motel 6], in which this Court
considered a circumstance where Canadian consumers were exposed to a trade-mark
while outside the country. The plaintiff operated a large chain of motels under
the name “Motel 6” throughout most of the United
States, with many of its customers being Canadian motorists. It sought to
strike out the trade-mark of the defendant, a British Colombia company which
employed a similar mark in connection with its operation of three motels in
Canada. The Court granted this relief, concluding that the defendant’s mark was
not distinctive of its services, in part based on Canadian residents having
attended the plaintiff’s motels and having informed residents of Canada about
them. The Court explained at paragraph 38 the breadth of evidence potentially
relevant to its analysis of the distinctiveness of the defendant’s mark:
[38] The attack based on
non-distinctiveness is not restricted to actual performance of services in
Canada as in the case of a claim of prior use pursuant to s. 4. It also may be
founded on evidence of knowledge or reputation of the opposing mark spread by
means of word of mouth and evidence of reputation and public acclaim and
knowledge by means of newspaper or magazine articles as opposed to advertising.
All relevant evidence may be considered which tends to establish
non-distinctiveness.
[43]
As emphasized by Navsun, the mark to which the
Canadian consumers were exposed while outside the country in Motel 6 was
that of a party which sought to challenge the distinctiveness of a registered
mark, not that of a party which was a applying for or seeking to maintain
registration of a mark in Canada based on use in Canada. I also note that Motel
6 was considered by this Court in Unitel Communications Inc. v Bell
Canada (1995), 92 FTR 161 [Unitel] where the applicant relied on
that case, in seeking to strike the registration of the respondent’s marks, to
support its position that constant exposure to the use of a mark in the United
States can affect public perception in Canada and can be sufficient to
establish a reputation of a trade name in Canada. Justice Gibson preferred the
position of the respondent, concluding at paragraphs 33 to 34, in part based on
authorities relying on Impex, that evidence as to use of terms in the
United States identical or similar to the respondent’s marks was irrelevant.
[44]
Unitel is one of
the decisions cited by the Federal Court of Appeal in Boston Pizza in
support of its conclusion that the jurisprudence is consistently to the effect
that distinctiveness can only be acquired by use in Canada. Boston Pizza
is binding upon me. Returning to Sadhu Singh Hamdard Trust, as explained
above, that case was decided in the context of a passing off claim rather than
an application to acquire the monopoly associated with registration of a
trade-mark based on its use in Canada. I therefore do not interpret Sadhu
Singh Hamdard Trust to have varied or departed from the jurisprudence
reflected in Boston Pizza.
[45]
That conclusion disposes of the Trust’s argument
that the Board erred in limiting its assessment of the Trust’s trade-mark to
Canadian subscribers while ignoring people who arrived in Canada already
familiar with the mark. As explained later in these Reasons, that conclusion is
also significant for the analysis of the relevance and materiality of the
Trust’s new evidence.
[46]
The Trust also argues that the Board erred in
permitting Navsun to rely on what the Trust characterizes as Navsun’s “deceptive” use of its mark. The Trust again relies on
Miranda FC, citing the following conclusions by Justice Simpson at
paragraph 32 to support its submission that a party cannot rely on its own
confusing use of a trade-mark to challenge another’s rights to the mark:
[32] In my view, the Father’s evidence
does not establish prior use of the name Miranda. Before 2000, the evidence of
use is not credible and, even if the Miranda name was used, it was twice
abandoned. Further, between 2000 and 2004, when TMR was dissolved, the Father’s
use of the name Miranda in the Design Mark was calculated to confuse consumers.
This is not prior use which entitles the Applicant to the benefit of subsection
17(1) of the Act.
[47]
To similar effect, the Trust relies on the
following passage from Andres Wines Ltd. v E & J Gallo Winery (1975),
[1976] 2 FC 3 (FCA) [Andres] at page 18:
On the facts of the present case I am of the
opinion that here too the registration of the mark “SPANADA” as the trade mark
of the respondent and its use by the respondent in association with its wines
would be calculated to deceive and mislead the public and that it follows from
this that the mark is not adapted to distinguish the wares of the respondent.
The opposition of the appellant under section 37(2)(d) of the Trade Marks
Act should therefore be sustained.
[48]
The Trust also refers the Court to the following
paragraph from Mr. P’s Mastertune Ignition Services Ltd. v Tune Masters
(1984), 82 CPR (2d) 128 (FCTD) at page 144:
The owner of a trade mark may lose his
exclusive right in the mark if he permits the widespread use of it by rival
traders either by concurrence or negative action. In that event the trade mark
ceases to be distinctive of the owner’s wares or services. But an owner does
not lose his rights in his trademark because someone infringes his rights.
[Applicant’s emphasis]
[49]
In response to these arguments, Navsun takes the
position that whether its use of its own mark was an infringement of the rights
of the Trust is not a question that was before the Board or that is now before
the Court. Rather, the applicable question is whether Navsun’s use, regardless
of whether it represented infringing use, negated the distinctiveness of the
Trust’s mark. Navsun submits that the jurisprudence is clear that infringing
use may cause a trademark to lose its distinctiveness, although it is a
question of degree as to how much of such use will be required in order to have
this effect (see Farside Clothing Ltd. v Caricline Ventures Ltd., 2002
FCA 446 at para 9). I agree with this statement of the law. Indeed, as
explained by the Federal Court of Appeal in Auld Phillips Ltd. v Suzanne’s
Inc., 2005 FCA 429 at paras 5-7, it is possible for a single infringer to
be the cause of a mark’s loss of distinctiveness, although the Court also
commented that this will be a rare occurrence. Ultimately, the question of whether
a trade-mark has lost its distinctiveness is one of fact, or mixed fact and
law, to be determined on the evidence of a particular case.
[50]
Consistent with that understanding of the law, I
do not regard Miranda FC or Andres to support the proposition
advanced by the Trust, that there is a legal principle to the effect that a
party cannot rely on its own confusing use of a trade-mark to challenge
another’s rights to the mark. It must be remembered that the issue the Board
was required to consider was not whether Navsun’s mark was distinctive of its
own publication but whether the existence of that mark in the market negated
the distinctiveness of the Trust’s mark. A principle of the sort advocated by
the Trust would conflict with the jurisprudence that infringing use can cause a
loss of distinctiveness. I read the decisions in Miranda FC and Andres
as turning on their respective facts, and I do not regard the Decision as
demonstrating an error in law on the part of the Board in relying on Navsun’s
use of its mark as negating the distinctiveness of the Trust’s mark.
[51]
I note that the extent to which the owner of a
trade-mark takes action to protect its mark can be relevant to whether its
distinctiveness is negated by an infringing mark (see Mattel U.S.A. Inc. v
3894207 Canada Inc., 2006 SCC 22 at para 26; Philip Morris Inc. v
Imperial Tobacco Ltd (1987), 17 CPR (3d) 289 (FCA) [Philip Morris FCA] at
pp 297-298). The Trust argues that steps it has taken to defend its trade-mark
preclude a finding that its distinctiveness has been negated. However, this is
a question of mixed fact and law, which I will consider later in these Reasons.
[52]
The final argument that I consider to raise a
pure or extricable question of law is the Trust’s submission that an opponent’s
use of a trade-mark is only relevant if it was a prior user of the mark in
Canada. The Trust relies on s 16(1)(a) of the Act and argues that considering
Navsun’s use of its mark in relation to distinctiveness, when the Board found
that it had not established prior use or making known of the mark, conflicts
with the priority scheme established by the Act.
[53]
I disagree with this position. Section 16(1)(a)
of the Act provides that registration of a trade-mark based on it having been
used or made known in Canada is not available if, on the date that it was first
used or made known, the mark was confusing with a trademark that had been
previously used or made known in Canada by another person. However, the Trust
has cited no authority which would suggest that the right to challenge the
distinctiveness of an applied-for mark, under ss 38(2)(d) and 2 of the Act, is
restricted to such persons. In my view, such a conclusion would be inconsistent
with the principle, as acknowledged by the Trust in its Memorandum of Fact and
Law, that the material date to assess distinctiveness is the date of filing of
the opposition to the application, as opposed to the assessment of confusion
under section 16(1)(a) of the Act which is expressly required to be conducted
as of the date of first use by the alleged prior user.
[54]
Having found no pure errors of law demonstrated
by the Decision, I will move to consideration of the Board’s findings regarding
the distinctiveness of the Trust’s mark.
D.
Applying the appropriate standard of review,
taking into account the new evidence introduced on appeal, did the Board err in
its findings regarding the distinctiveness of the Applicant’s mark?
(1)
Materiality of the New Evidence
[55]
As previously explained, the selection of the
standard of review applicable to the Board’s findings of fact and mixed fact
and law is influenced by the materiality of the new evidence introduced on
appeal. The Trust filed 21 affidavits as new evidence in this appeal. These
affidavits can be summarized as follows:
- Affidavit of Dr. Barjinder Singh Hamdard, the
Editor in Chief of the Ajit Daily, whose evidence included an explanation
of the history of the newspaper, its circulation in India, the number of
Canadian subscribers between 1990 and 2010, and his knowledge of the Ajit
Weekly since 1995;
- Three affidavits of Satpaul Singh Johal, a
correspondent employed by the Trust to write for the Ajit Daily in Canada,
whose evidence includes statistics on the number of Punjabi immigrants to
Canada and statistics obtained from a third party website (Alexa.com) related
to the number of visitors from Canada to the online version of the Ajit
Daily. Mr. Johal also deposes that, since he came to Canada in 2001, he
has had to clarify almost daily to confused readers of the Ajit Daily that
it and the Ajit Weekly are unrelated;
- Affidavits of three other journalists employed by
the Trust to write for the Ajit Daily in Canada, one residing in Ontario
and the other two in Alberta, who depose that they have been asked by
Punjabis living in Canada about the connection between the Ajit Daily and
the Ajit Weekly, as they assumed that the publications were related;
- Affidavit of Sukhvinder Singh, the Trust’s
Marketing Manager, whose evidence includes information obtained from
Google Analytics regarding the number of visitors from Canada to the
online version of the Ajit Daily;
- Affidavits of thirteen Canadian residents of
Punjabi descent, who immigrated from India between 1970 and 2009 and now
live in either Ontario or Alberta. These affiants depose that they read
the Ajit Daily in India, in some cases that they read the Ajit Daily
regularly on the internet since coming to Canada, and that upon first
seeing the Ajit Weekly in Canada they thought that it was the same or a
related publication.
[56]
In broad strokes, the new evidence is offered by
the Trust to establish that the Ajit Daily is well known to members of the
Punjabi community residing in India, that the number of members of that
community who have immigrated to Canada has grown from approximately 136,000 in
1991 to 450,000 in 2011, and that Punjabi immigrants to Canada arrive with
knowledge of the Ajit Daily and, at least initially, assume that the Ajit
Weekly is the same or a related publication. The new evidence is also intended
to establish that, while the number of Canadian subscribers to the print
version of the Ajit Daily is small, a significantly larger number of Punjabi
Canadians read the electronic version of the Ajit Daily online. The data from
Google Analytics reflects an average of 260,000 visits per month to the Trust’s
website between May and August 2008 and between 215,000 and 272,000 visits per
month in certain selected months between May 2013 and December 2014.
[57]
Having concluded earlier in these Reasons that
distinctiveness of a mark can only be acquired through use in Canada, much of
the Trust’s new evidence is irrelevant and therefore could not have materially
affected the Board’s decision. This applies to the evidence of the reputation
of the Ajit Daily in India, the magnitude of immigration to Canada, and the
confusion on the part of Punjabi immigrants who arrive with knowledge of the
Ajit Daily.
[58]
Turning to the evidence of the number of Punjabi
Canadians who read the electronic version of the Ajit Daily online, I again
find this new evidence to be irrelevant to the issue of distinctiveness that
was before the Board. The meaning of the term “distinctive”
is prescribed by s 2 of the Act as follows:
distinctive, in relation to a trade-mark, means a trade-mark that actually
distinguishes the goods or services in association with which it is used
by its owner from the goods or services of others or is adapted so to
distinguish them; (distinctive)
|
distinctive Relativement à une marque de commerce, celle qui distingue
véritablement les produits ou services en liaison avec lesquels elle est
employée par son propriétaire, des produits ou services d’autres
propriétaires, ou qui est adaptée à les distinguer ainsi. (distinctive)
|
[Emphasis added]
|
[soulignement
ajouté]
|
[59]
The meaning of the term “use”
is prescribed by s 2 of the Act as follows:
use, in relation to a trade-mark, means any use that by section 4 is
deemed to be a use in association with goods or services; (emploi ou usage)
|
emploi ou usage À l’égard
d’une marque de commerce, tout emploi qui, selon l’article 4, est réputé un
emploi en liaison avec des produits ou services. (use)
|
[60]
Section 4(1), which relates to use of a
trademark in association with goods, in turn provides as follows:
When deemed to be used
|
Quand une marque de commerce
est réputée employée
|
4 (1)
A trade-mark is deemed to be used in association with goods if, at the time
of the transfer of the property in or possession of the goods, in the normal
course of trade, it is marked on the goods themselves or on the packages in
which they are distributed or it is in any other manner so associated with
the goods that notice of the association is then given to the person to whom
the property or possession is transferred.
|
4 (1) Une marque de commerce est réputée employée en liaison avec des
produits si, lors du transfert de la propriété ou de la possession de ces
produits, dans la pratique normale du commerce, elle est apposée sur les
produits mêmes ou sur les emballages dans lesquels ces produits sont
distribués, ou si elle est, de toute autre manière, liée aux produits à tel
point qu’avis de liaison est alors donné à la personne à qui la propriété ou
possession est transférée.
|
[61]
The conditions necessary to establish
distinctiveness were summarized as follows in Philip Morris Inc. v Imperial
Tobacco Ltd (1985), 7 CPR (3d) 254 (FCTD) [Philip Morris FC] at page
270; aff’d Philip Morris FCA:
From these definitions, one can see why a loss
of distinctiveness can invalidate the registration of a trade mark, since the
very nature of a trade mark is to permit to distinguish the wares to which it
is associated from others. One can also see that distinctiveness requires that
three conditions be met: (1) that a mark and a product (or ware) be associated;
(2) that the “owner” uses this association between the mark and his product and
is manufacturing and selling his product; and, (3) that this association
enables the owner of the mark to distinguish his product from that of others.
[62]
What is apparent from both the statutory
provisions quoted above and this summary is that the analysis of
distinctiveness is concerned with whether a mark distinguishes the particular
goods and services in association with which it is used, such use being through
means prescribed by s 4 of the Act. While the distribution in Canada of printed
materials bearing the Trust’s mark represents use of that mark in association
with those goods, I agree with Navsun’s submission that evidence of the Trust’s
use of its mark on its website and electronic publications is irrelevant to
whether the mark is distinctive of the printed materials, as such use does not
represent use in association with those materials. Earlier in these Reasons, I
rejected the Trust’s argument that, although its application for registration
of its mark applied to “printed publications and
newspapers”, that language is broad enough to apply to its electronic
newspaper. I therefore find the evidence of the number of Punjabi Canadians who
read the electronic version of the Ajit Daily online to be irrelevant to the
distinctiveness of the Trust’s mark for purposes of the application that was
before the Board, and I find that such evidence could not have materially affected
the Board’s decision.
[63]
The above conclusions eliminate the materiality
of the affidavits of the thirteen Canadian residents of Punjabi descent, whose
evidence of confusion between the Ajit Daily and Ajit Weekly is based on having
read the Ajit Daily in India before immigrating to Canada and in some cases
based on reading the Ajit Daily on the internet since coming to Canada. The
affidavit of Sukhvinder Singh, the Trust’s Marketing Manager, is also irrelevant
and immaterial, as the substance of his evidence related to information as to
the number of visitors from Canada to the online version of the Ajit Daily. The
same conclusion applies to the evidence of Satpaul Singh Johal, the Canadian
correspondent for the Trust, as to the number of visitors from Canada to the
online publication. The affidavit of Dr. Barjinder Singh Hamdard provides
information on the number of Canadian subscribers to the print newspaper
between 1990 and 2010. This information is relevant but is not material, as it does
not substantially add to, or enhance the probative value of, the evidence that
had been adduced before the Board.
[64]
This leaves consideration of the evidence of
Satpaul Singh Johal and the other three journalists working for the Trust in
Canada, as to the confusion between the Ajit Daily and Ajit Weekly which has
been expressed to them by Canadian consumers of Punjabi descent. Leaving aside
concerns which Navsun raises as to the hearsay nature of this evidence, it is
not sufficiently clear from these affidavits whether those consumers’ exposure
to the Ajit Daily was through reading it in India prior to emigrating, reading
the electronic version in Canada, or being one of the small number of print
subscribers in Canada. Only the last means of exposure would have arisen through
use by the Trust in Canada of the mark in relations to the goods that are the
subject of its application for registration of the mark. As I am unable to determine
from the journalists’ affidavits whether any of the evidence of confusion falls
into this category, I cannot conclude that it is relevant or material.
[65]
It is therefore my conclusion that none of the
new evidence is material and that the Board’s findings regarding the
distinctiveness of the Trust’s mark are to be reviewed on a standard of reasonableness.
(2)
Reasonableness of the Board’s Findings on
Distinctiveness
[66]
As previously noted, the extent to which the
owner of a trade-mark takes action to protect its mark can be relevant to
whether its distinctiveness is negated by an infringing mark. The Trust submits
that it began challenging Navsun’s use of the mark AJIT in 2004 and commenced
its passing off action in 2010. It also obtained trade-mark registration for
another related mark and filed the application for registration of the AJIT
mark that is the subject of this appeal. I understand that the proceedings
commenced in 2004 challenged an application by Navsun to register for its own
use the mark AJIT in Canada and that, while Navsun’s application was
successful, it subsequently cancelled that registration when the Trust brought
an application to expunge it. The passing off action commenced in 2010 is the
proceeding that was the subject of the decision by the Federal Court of
Appeal in Sadhu Singh Hamdard Trust, as a result of which the Trust’s claims
in that action are to be re-determined by the Federal Court.
[67]
I do not consider this Canadian litigation
history to undermine the reasonableness of the Board’s conclusion that, as of
the date of filing its opposition, December 28, 2012, Navsun’s mark was
sufficiently known to negate the distinctiveness of Trust’s mark. While the Trust
commenced efforts in 2004 to preclude Navsun from having a monopoly on the use
of the mark in Canada, it did not take steps to prevent Navsun from using the
mark until it commenced its passing off action and this application for
registration of its own mark in 2010. By that time, Navsun had been using its
mark in Canada for 17 years. Even if one were to take into account the steps
which the Trust commenced in 2004, Navsun’s mark had by then been in use for
over a decade.
[68]
The Trust also argues that the Board erred by
presuming from Navsun’s use of its mark that the mark had become distinctive of
Navsun, as it submits that mere use is not sufficient to displace the
established prior meaning of another mark. The Trust’s position is that, in
order to succeed in challenging the distinctiveness of its mark, Navsun was
obliged to inform the public that it was a new and different source of the
relevant goods and to prove that it had done so successfully. It relies on MC
Imports Inc. v AFOD Ltd., 2016 FCA 60 [MC Imports] at paras 78-82, in
which the Federal Court of Appeal upheld the conclusion of the trial judge the
appellant’s mark was not registrable and was invalid under s 12(1)(a) of the
Act, as the evidence of the duration of its use was insufficient to meet the
burden of demonstrating that the mark had acquired distinctiveness in the minds
of consumers. That case involved the descriptive mark LINGAYEN, which described
the municipality in the Philippines which was the place of origin of the goods
with which the mark was associated, and the Court was considering what it
referred to as an implicit argument under s 12(2) that the mark had been otherwise
used in Canada so as to have become distinctive.
[69]
I read the decision in MC Imports as
turning on the particular issue and evidence in that case and not as
prescribing a legal principle which would undermine the reasonableness of the
Board’s decision in the case at hand. The Board found that Navsun’s mark was sufficiently
known so as to negate the distinctiveness of the applied-for mark as of the
material date and, alternatively, described that finding as a conclusion that
the target population reading the Canadian newspaper AJIT would identify a
Canadian publisher as the source of the newspaper, rather than the Applicant. The
Board’s finding turned on the evidence that the circulation of Navsun’s
newspaper had grown to 11,000 per week from its Vancouver-based printer and
13,000 per week from its Toronto-based printer, in comparison with the six
Canadian subscribers to the Trust’s paper in the period 2002 to 2010. While the
Board’s conclusion, as to the respective reputations of the parties’ marks, was
based on the circulation volumes, as opposed to evidence of consumer
perceptions, I regard its reasoning and conclusion as falling within the range
of possible, acceptable outcomes and to be reasonable.
[70]
I note that the Board’s alternative description
of its conclusion, i.e. that the target population reading the Canadian
newspaper AJIT would identify a Canadian publisher as the source of the
newspaper, rather than the Applicant, arguably extends further towards a
finding as to the distinctiveness of Navsun’s mark than was necessary to
address its ground of opposition. As previously explained in these Reasons, the
question the Board was required to address was whether Navsun’s use of its mark
had negated the distinctiveness of the Trust’s mark, not whether Navsun’s mark
was distinctive of its own publications. However, the Board’s articulation of
the extent to which Navsun’s mark had become known is consistent with its finding
that Navsun’s mark was sufficiently known to negate the distinctiveness of the
Trust’s mark, which is in turn consistent with the jurisprudential guidance on
the question the Board was required to determine.
[71]
The Trust also relies on the decision of this
Court in Heitzman v 751056 Ontario Ltd. (1990), 34 CPR (3d) 1 [Heitzman]
at 16-17, as support for its position that Navsun had a duty to inform the
public that it was a new and different source of newspapers than the Trust.
However, I find this authority to be of little assistance to the Trust, as it involved
circumstances quite different from those in the present case. The issue in
Heitzman was whether the respondent’s trade-mark should be expunged because
its mark had ceased to be distinctive of its products, after it changed the
manufacturing source of the pianos it was selling. It was in that context that
the Court concluded there was an obligation on the respondent, in order to
maintain the validity of its mark, to inform the public that the source of the product
it was selling under its mark had changed.
[72]
Finally, the Trust relies on Alibi Roadhouse
Inc. v Grandma Lee’s International Holdings Ltd. (1997), 136 FTR 66, for
the proposition that, as long as a mark remains distinctive in an identifiable
geographic segment of the relevant market, it remains distinctive. The Trust
submits that Navsun has only distributed its newspapers in a few urban centres
and that there is no evidence that its mark is known in most of Canada. Navsun
appears to accept that it is possible for a mark to acquire local
distinctiveness, but it submits that the Trust has not adduced any evidence as
to where in Canada its newspaper is circulated and that the present case is not
one in which the parties’ wares are limited to local customers. I agree with
Navsun’s position. While the Trust is correct that Navsun’s evidence
establishes distribution of the Ajit Weekly only in British Columbia and
Ontario, the Trust’s evidence does not provide a geographic breakdown within
Canada as to where the Ajit Daily is distributed. Given the evidentiary record
in this matter, the Decision is reasonable in reaching no conclusions on local
distinctiveness.
[73]
In conclusion, I find the Decision to be
reasonable and will accordingly dismiss this appeal.
VI.
Costs
[74]
Each of the parties has claimed costs in this
appeal. At the hearing, the parties agreed on the quantification of costs to be
awarded to the successful party. The agreed amount is $11,500.00, with
applicable HST to be added only if the costs are being awarded to the
Respondent. As the Respondent is the successful party, taking into account HST
of 13% applicable in Ontario where the Respondent is based, my Judgment will
award costs to the Respondent in the amount of $12,995.00.