Date: 20111026
Docket: T-1702-10
Citation: 2011 FC 1216
Ottawa, Ontario, this 26th day of
October 2011
Present: The Honourable Mr. Justice
Pinard
BETWEEN:
McCALLUM INDUSTRIES LIMITED
Applicant
and
HJ HEINZ COMPANY AUSTRALIA
LTD.
Respondent
REASONS FOR
JUDGMENT AND JUDGMENT
[1]
On
October 20, 2010, the applicant, McCallum Industries Limited, filed a Notice of
Application under section 57 of the Trade-marks Act, R.S.C. 1985, c.
T-13, as amended (the Act), to have HJ Heinz Company Australia Ltd.’s, the
respondent, trade-mark “OX & PALM” expunged from the Register of
Trade-marks (the register).
[2]
McCallum
Industries Limited (“McCallum”) is a corporation with its head office in New Zealand. On August
10, 1995, McCallum filed an application for registration in Canada of the
trade-mark “PALM & Device” for the specific wares of “meat and meat
products, including canned and processed meat products”. McCallum started using
the trade-mark in 1998 when it began selling PALM & Device labelled wares.
These wares have since been continuously sold in Canada. All wares
sold in Canada have labels
attached to the cans, bearing the trade-mark PALM & Device. On July 14,
2003, the trade-mark application for PALM & Device was approved and registered.
[3]
HJ Heinz Company
Australia Ltd. (“Heinz”) is an Australian corporation. On December 11, 2002,
Heinz filed an application to register the trade-mark “OX & PALM” in Canada
for
the specific wares of “meat and processed meats namely, corned meat and tinned
meat” based on its use and registration of said trade-mark in Australia since April
30, 1976. This application was never opposed. On October 20, 2005, Heinz’s
application for registration was granted.
[4]
On
June 16, 2006, McCallum filed a second trade-mark application to register “NEW
ZEALAND PREMIUM QUALITY & Design” (“NZPQ”) premised on its use of the mark
since November 22, 2003. As of this date of first use, “NZPQ” was added to the
labels on which the PALM & Device trade-mark already appeared. On February
19, 2009, McCallum’s trade-mark application was granted and NZPQ was added to
the register for the specific wares of “meat and canned meat
products, namely beef hash, beef and onion, beef and chilli, beef and adobo,
beef and calderatta, beef and garlic, canned luncheon meat made from mutton,
canned corned beef, canned mutton, liver spreads”.
[5]
On
October 20, 2010, McCallum filed the present Notice of Application under section 57
of the Act to have Heinz’s registered trade-mark OX & PALM expunged.
[6]
The history
of each party and their sales throughout Canada is as follows.
I. The appearance of the
applicant’s marks on the Canadian market
[7]
Since
1998, the applicant has been selling a variety of meat products throughout Canada under the
trade-mark PALM & Device. The applicant has been advertising PALM & Device in Canada since 1999
and NZPQ since its appearance on the Canadian market in 2003, by providing
advertisements to its distributors, retailers and wholesalers for display.
[8]
The
applicant sells its products bearing the trade-marks PALM & Device and NZPQ
through three Canadian distributors located in British Columbia and Ontario. These
distributors then sell the wares to various Canadian wholesalers, which in turn
sell the wares to various ethnic oriental, Chinese and Philippine food
retailers, in addition to a few major retail chains in Canada, for
ultimate purchase by consumers.
[9]
The
annual sales of PALM & Device wares have generally increased. Since 2005,
these sales have been constantly increasing. The sales of NZPQ labelled wares
have fluctuated.
II. The appearance of the
respondent’s mark on the Canadian market
[10]
The respondent
manufactures and
packages its OX & PALM products in Australia. These
products have been sold in the United States for over 15 years, and some
visiting Filipino Canadians have been bringing these products back to Canada according to
the respondent.
[11]
Once
manufactured and packaged, these products are shipped to North America through
the respondent’s U.S. distributor, Mangal’s Meat Distribution. When
the products are destined for Canadian consumption, Mangal’s Meat Distribution
delivers the shipment to Centennial Food Service - World in Calgary, which
operates at the wholesale level. The parties disagree as to when the respondent’s
first sale in Canada of OX & PALM took place.
[12]
The
applicant believes the first sale of OX & PALM wares to the Canadian public
did not occur before January 26, 2011. On the other hand, the respondent alleges that
its first sale in Canada of OX & PALM wares occurred in July 2010.
[13]
On
July 27, 2010, the respondent sold to Mangal’s Meat Distribution one shipment
comprising 1660
cartons of clearly labelled OX & PALM corned beef. At this date, the
shipment was delivered to Centennial Food Service - World in Calgary. Ultimately,
the shipment arrived in Vancouver on August 28, 2010.
[14]
The
respondent claims that Centennial Food Service - World sold the wares to family-owned
stores and larger retail outlets across Canada. There is
evidence of actual sales of OX & PALM labelled products in Western
Canada.
Inversely, the applicant alleges that the respondent’s shipment of OX &
PALM was distributed after August 28, 2010, to Canadian retailers consisting
primarily of smaller ethnic stores targeted at the Filipino population of Canada.
* * * * * * * *
[15]
The
following provisions of the Trade-marks Act are relevant in determining
whether the respondent’s trade-mark should be struck out from the register:
Definitions
2. In
this Act,
“confusing”, when applied as
an adjective to a trade-mark or trade-name, means a trade-mark or trade-name
the use of which would cause confusion in the manner and circumstances
described in section 6;
“distinctive”, in relation to a
trade-mark, means a trade-mark that actually distinguishes the wares or
services in association with which it is used by its owner from the wares or
services of others or is adapted so to distinguish them;
“package” includes any
container or holder ordinarily associated with wares at the time of the transfer
of the property in or possession of the wares in the course of trade;
“person interested” includes any
person who is affected or reasonably apprehends that he may be affected by
any entry in the register, or by any act or omission or contemplated act or
omission under or contrary to this Act, and includes the Attorney General of
Canada;
“trade-mark” means
(a) a
mark that is used by a person for the purpose of distinguishing or so as to
distinguish wares or services manufactured, sold, leased, hired or performed
by him from those manufactured, sold, leased, hired or performed by others,
(b) a
certification mark,
(c) a
distinguishing guise, or
(d) a
proposed trade-mark;
“use”, in relation to a
trade-mark, means any use that by section 4 is deemed to be a use in
association with wares or services;
When deemed to be used
4. (1) A trade-mark is deemed to be used
in association with wares if, at the time of the transfer of the property in
or possession of the wares, in the normal course of trade, it is marked on
the wares themselves or on the packages in which they are distributed or it
is in any other manner so associated with the wares that notice of the
association is then given to the person to whom the property or possession is
transferred.
(2) A
trade-mark is deemed to be used in association with services if it is used or
displayed in the performance or advertising of those services.
Use by export
(3) A
trade-mark that is marked in Canada on wares or on the packages in which they
are contained is, when the wares are exported from Canada, deemed to be used
in Canada in association with those wares.
When mark or name confusing
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.
(2) The
use of a trade-mark causes confusion with another trade-mark if the use of
both trade-marks in the same area would be likely to lead to the inference
that the wares or services associated with those trade-marks are
manufactured, sold, leased, hired or performed by the same person, whether or
not the wares or services are of the same general class.
(3) The use of a trade-mark
causes confusion with a trade-name if the use of both the trade-mark and
trade-name in the same area would be likely to lead to the inference that the
wares or services associated with the trade-mark and those associated with
the business carried on under the trade-name are manufactured, sold, leased,
hired or performed by the same person, whether or not the wares or services
are of the same general class.
(4) The
use of a trade-name causes confusion with a trade-mark if the use of both the
trade-name and trade-mark in the same area would be likely to lead to the
inference that the wares or services associated with the business carried on
under the trade-name and those associated with the trade-mark are
manufactured, sold, leased, hired or performed by the same person, whether or
not the wares or services are of the same general class.
What to be
considered
(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
(a) the inherent distinctiveness
of the trade-marks or trade-names and the extent to which they have become
known;
(b) the length of time the
trade-marks or trade-names have been in use;
(c) the nature of the wares,
services or business;
(d) the nature of the trade; and
(e) the degree of resemblance
between the trade-marks or trade-names in appearance or sound or in the ideas
suggested by them.
When trade-mark registrable
12. (1) Subject to section 13, a trade-mark is
registrable if it is not […]
(d) confusing
with a registered trade-mark;
(2) A
trade-mark that is not registrable by reason of paragraph (1)(a) or
(b) is registrable if it has been so used in Canada by the applicant
or his predecessor in title as to have become distinctive at the date of
filing an application for its registration.
Marks registered and used abroad
16. (2) Any applicant who
has filed an application in accordance with section 30 for registration of a
trade-mark that is registrable and that the applicant or the applicant’s
predecessor in title has duly registered in or for the country of origin of
the applicant and has used in association with wares or services is entitled,
subject to section 38, to secure its registration in respect of the wares or
services in association with which it is registered in that country and has
been used, unless at the date of filing of the application in accordance with
section 30 it was confusing with
(a) a
trade-mark that had been previously used in Canada or made known in Canada
by any other person;
(b) a
trade-mark in respect of which an application for registration had been
previously filed in Canada by any other person; or
(c) a
trade-name that had been previously used in Canada by any
other person.
(3) Any
applicant who has field an application in accordance with section 30 for
registration of a proposed trade-mark that is registrable is entitled,
subject to sections 38 and 40, to secure its registration in respect of the
wares or services specified in the application, unless at the date of filing
of the application it was confusing with
(a) a trade-mark that had been previously
used in Canada or made known in Canada by any other person;
(b) a trade-mark in respect of which an
application for registration had been previously filed in Canada by any other person; or
(c) a trade-name that had been
previously used in Canada by any
other person.
Effect of registration in relation
to previous use, etc.
17. (1) No
application for registration of a trade-mark that has been advertised in
accordance with section 37 shall be refused and no registration of a
trade-mark shall be expunged or amended or held invalid on the ground of any
previous use or making known of a confusing trade-mark or trade-name by a
person other than the applicant for that registration or his predecessor in
title, except at the instance of that other person or his successor in title,
and the burden lies on that other person or his successor to establish that
he had not abandoned the confusing trade-mark or trade-name at the date of
advertisement of the applicant’s application.
When registration
incontestable
(2) In proceedings commenced
after the expiration of five years from the date of registration of a
trade-mark or from July 1, 1954, whichever is the later, no registration
shall be expunged or amended or held invalid on the ground of the previous
use or making known referred to in subsection (1), unless it is established
that the person who adopted the registered trade-mark in Canada did so with
knowledge of that previous use or making known.
When registration invalid
18. (1) The
registration of a trade-mark is invalid if
(a) the trade-mark was not
registrable at the date of registration,
(b) the trade-mark is not
distinctive at the time proceedings bringing the validity of the registration
into question are commenced, or
(c) the trade-mark has been abandoned,
and subject to section 17, it is invalid if
the applicant for registration was not the person entitled to secure the
registration.
Exception
(2) No registration of a
trade-mark that had been so used in Canada by the registrant or his predecessor in title
as to have become distinctive at the date of registration shall be held
invalid merely on the ground that evidence of the distinctiveness was not
submitted to the competent authority or tribunal before the grant of the
registration.
Rights conferred by
registration
19. Subject to sections 21,
32 and 67, the registration of a trade-mark in respect of any wares or
services, unless shown to be invalid, gives to the owner of the trade-mark
the exclusive right to the use throughout Canada of the trade-mark in respect of those
wares or services.
Exclusive jurisdiction of Federal Court
57. (1) The Federal Court has exclusive original
jurisdiction, on the application of the Registrar or of any person
interested, to order that any entry in the register be struck out or amended
on the ground that at the date of the application the entry as it appears on
the register does not accurately express or define the existing rights of the
person appearing to be the registered owner of the mark.
Restriction
(2) No
person is entitled to institute under this section any proceeding calling
into question any decision given by the Registrar of which that person had
express notice and from which he had a right to appeal.
|
Définitions
2. Les définitions
qui suivent s’appliquent à la présente loi.
«
créant de la confusion » Relative-ment à une marque de commerce ou
un nom commercial, s’entend au sens de l’article 6.
«
distinctive » Relativement à une marque de commerce, celle qui distingue
véritablement les marchan-dises ou services en liaison avec lesquels elle est
employée par son propriétaire, des marchandises ou services d’autres
propriétaires, ou qui est adaptée à les distinguer ainsi.
«
paquet » ou «
colis » Est assimilé à un paquet ou colis tout contenant ou
récipient ordinairement lié à des produits lors du transfert de la propriété
ou de la possession des marchandises dans la pratique du commerce.
«
personne intéressée »
Sont assimilés à une personne intéressée le procureur général du Canada et
quiconque est atteint ou a des motifs valables d’appréhender qu’il sera
atteint par une inscription dans le registre, ou par tout acte ou omission,
ou tout acte ou omission projeté, sous le régime ou à l’encontre de la
présente loi.
«
marque de commerce »
Selon le cas :
a) marque
employée par une personne pour distinguer, ou de façon à distinguer, les
marchandises fabriquées, vendues, données à bail ou louées ou les services
loués ou exécutés, par elle, des marchandises fabriquées, vendues, données à
bail ou louées ou des services loués ou exécutés, par d’autres;
b) marque
de certification;
c) signe
distinctif;
d) marque
de commerce projetée.
«
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 marchandises ou
services.
Quand une marque de commerce est réputée employée
4. (1) Une marque de commerce est réputée
employée en liaison avec des marchandises si, lors du transfert de la
propriété ou de la possession de ces marchandises, dans la pratique normale
du commerce, elle est apposée sur les marchandises mêmes ou sur les colis
dans lesquels ces marchandises sont distribuées, ou si elle est, de toute
autre manière, liée aux marchandises à tel point qu’avis de liaison est alors
donné à la personne à qui la propriété ou possession est transférée.
(2) Une marque de commerce est
réputée employée en liaison avec des services si elle est employée ou montrée
dans l’exécution ou l’annonce de ces services.
Emploi pour exportation
(3) Une
marque de commerce mise au Canada sur des marchandises ou sur les colis qui
les contiennent est réputée, quand ces marchandises sont exportées du Canada,
être employée dans ce pays en liaison avec ces marchandises.
Quand une marque ou un nom crée de la confusion
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.
(2) L’emploi d’une marque de
commerce crée de la confusion avec une autre marque de commerce lorsque
l’emploi des deux marques de commerce dans la même région serait susceptible
de faire conclure que les marchandises liées à ces marques de commerce sont
fabriquées, vendues, données à bail ou louées, ou que les services liés à ces
marques sont loués ou exécutés, par la même personne, que ces marchandises ou
ces services soient ou non de la même catégorie générale.
(3) L’emploi
d’une marque de commerce crée de la confusion avec un nom commercial, lorsque
l’emploi des deux dans la même région serait susceptible de faire conclure que
les marchandises liées à cette marque et les marchandises liées à
l’entreprise poursuivie sous ce nom sont fabriquées, vendues, données à bail
ou louées, ou que les services liés à cette marque et les services liés à
l’entreprise poursuivie sous ce nom sont loués ou exécutés, par la même
personne, que ces marchandises ou services soient ou non de la même catégorie
générale.
(4) L’emploi d’un nom commercial
crée de la confusion avec une marque de commerce, lorsque l’emploi des deux
dans la même région serait susceptible de faire conclure que les marchandises
liées à l’entreprise poursuivie sous ce nom et les marchandises liées à cette
marque sont fabriquées, vendues, données à bail ou louées, ou que les
services liés à l’entreprise poursuivie sous ce nom et les services liés à
cette marque sont loués ou exécutés, par la même personne, que ces
marchandises ou services soient ou non de la même catégorie générale.
Éléments d’appréciation
(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 :
a) le
caractère distinctif inhérent des marques de commerce ou noms commerciaux, et
la mesure dans laquelle ils sont devenus connus;
b) la
période pendant laquelle les marques de commerce ou noms commerciaux ont été
en usage;
c) le
genre de marchandises, services ou entreprises;
d) la
nature du commerce;
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.
Marque de commerce enregistrable
12. (1) Sous
réserve de l’article 13, une marque de commerce est enregistrable sauf dans
l’un ou l’autre des cas suivants […] d) elle crée de la confusion avec une marque
de commerce déposée;
(2) Une marque de commerce qui
n’est pas enregistrable en raison de l’alinéa (1)a) ou b)
peut être enregistrée si elle a été employée au Canada par le requérant ou
son prédécesseur en titre de façon à être devenue distinctive à la date de la
production d’une demande d’enregistrement la concernant.
Marques déposées et employées dans un autre pays
16. (2) Tout requérant qui a produit une demande selon l’article 30
en vue de l’enregistrement d’une marque de commerce qui est enregistrable et
que le requérant ou son prédécesseur en titre a dûment déposée dans son pays
d’origine, ou pour son pays d’origine, et qu’il a employée en liaison avec
des marchandises ou services, a droit, sous réserve de l’article 38, d’en
obtenir l’enregistrement à l’égard des marchandises ou services en liaison
avec lesquels elle est déposée dans ce pays et a été employée, à moins que, à
la date de la production de la demande, en conformité avec l’article 30, elle
n’ait créé de la confusion :
a) soit
avec une marque de commerce antérieurement employée ou révélée au Canada par
une autre personne;
b) soit
avec une marque de commerce à l’égard de laquelle une demande
d’enregistrement a été antérieurement produite au Canada par une autre
personne;
c) soit
avec un nom commercial antérieurement employé au Canada par une autre
personne.
(3) Tout requérant qui a produit une demande selon l’article 30
en vue de l’enregistrement d’une marque de commerce projetée et
enregistrable, a droit, sous réserve des articles 38 et 40, d’en obtenir
l’enregistrement à l’égard des marchandises ou services spécifiés dans la
demande, à moins que, à la date de production de la demande, elle n’ait créé
de la confusion :
a) soit avec une marque de commerce
antérieurement employée ou révélée au Canada par une autre personne;
b) soit avec une marque de commerce à
l’égard de laquelle une demande d’enre-gistrement a été antérieurement
produite au Canada par une autre personne;
c) soit avec un nom commercial antérieurement
employé au Canada par une autre personne.
Effet de l’enregistrement
relativement à l’emploi antérieur, etc.
17. (1) Aucune
demande d’enregistrement d’une marque de commerce qui a été annoncée selon
l’article 37 ne peut être refusée, et aucun enregistrement d’une marque de
commerce ne peut être radié, modifié ou tenu pour invalide, du fait qu’une
personne autre que l’auteur de la demande d’enregistrement ou son
prédécesseur en titre a antérieurement employé ou révélé une marque de
commerce ou un nom commercial créant de la confusion, sauf à la demande de
cette autre personne ou de son successeur en titre, et il incombe à cette
autre personne ou à son successeur d’établir qu’il n’avait pas abandonné
cette marque de commerce ou ce nom commercial créant de la confusion, à la
date de l’annonce de la demande du requérant.
Quand
l’enregistrement est incontestable
(2) Dans des procédures
ouvertes après l’expiration de cinq ans à compter de la date d’enregistrement
d’une marque de commerce ou à compter du 1er juillet 1954, en
prenant la date qui est postérieure à l’autre, aucun enregistrement ne peut
être radié, modifié ou jugé invalide du fait de l’utilisation ou révélation
antérieure mentionnée au paragraphe (1), à moins qu’il ne soit établi que la
personne qui a adopté au Canada la marque de commerce déposée l’a fait alors
qu’elle était au courant de cette utilisation ou révélation antérieure.
Quand l’enregistrement est
invalide
18. (1) L’enregistrement
d’une marque de commerce est invalide dans les cas suivants :
a) la marque de
commerce n’était pas enregistrable à la date de l’enregistrement;
b) la marque de
commerce n’est pas distinctive à l’époque où sont entamées les procédures
contestant la validité de l’enregistrement;
c) la marque de commerce
a été abandonnée.
Sous réserve de l’article 17, l’enregistrement
est invalide si l’auteur de la demande n’était pas la personne ayant droit de
l’obtenir.
Exception
(2) Nul enregistrement d’une
marque de commerce qui était employée au Canada par l’inscrivant ou son
prédécesseur en titre, au point d’être devenue distinctive à la date
d’enregistrement, ne peut être considéré comme invalide pour la seule raison
que la preuve de ce caractère distinctif n’a pas été soumise à l’autorité ou
au tribunal compétent avant l’octroi de cet enregistrement.
Droits conférés par
l’enregistrement
19. Sous réserve
des articles 21, 32 et 67, l’enregistrement d’une marque de commerce à
l’égard de marchandises ou services, sauf si son invalidité est démontrée,
donne au propriétaire le droit exclusif à l’emploi de celle-ci, dans tout le
Canada, en ce qui concerne ces marchandises ou services.
Juridiction exclusive de la Cour
fédérale
57. (1) La Cour fédérale a une compétence
initiale exclusive, sur demande du registraire ou de toute personne
intéressée, pour ordonner qu’une inscription dans le registre soit biffée ou
modifiée, parce que, à la date de cette demande, l’inscription figurant au
registre n’exprime ou ne définit pas exactement les droits existants de la
personne paraissant être le propriétaire inscrit de la marque.
Restriction
(2) Personne
n’a le droit d’intenter, en vertu du présent article, des procédures mettant
en question une décision rendue par le registraire, de laquelle cette
personne avait reçu un avis formel et dont elle avait le droit d’interjeter
appel.
|
* * * * * * * *
[16]
The respondent
raises the initial issue of the applicant’s standing to bring the present
application under section 57 of the Trade-marks Act. Therefore, it must
firstly be determined whether the applicant is a “person interested” under section
57 of the Act, as defined at section 2.
[17]
If
the applicant is considered to be a “person interested”, in order for the
respondent’s trade-mark to be expunged from the register, the following questions,
as submitted by the applicant, must be answered:
I.
Was the trade-mark OX
& PALM not registrable at the date of registration because as of that date,
the trade-mark OX & PALM was confusing with the applicant’s registered
trade-mark PALM & Device? In this regard, the applicant relies on
paragraphs 12(1)(d) and 18(1)(a) of the Act.
II.
Was the respondent not
the person entitled to secure registration of the trade-mark OX & PALM
because as of the date of filing the application for registration of the trade-mark
OX & PALM, the trade-mark OX & PALM was confusing with the applicant’s
trade-mark PALM & Device? In this regard, the applicant relies on paragraph
16(2)(a) and subsections 17(1) and 18(1) of the Act.
III.
Is the respondent’s
trade-mark OX & PALM invalid because it was not distinctive at the date of
commencement of the present application? In this regard, the applicant relies
on paragraph 18(1)(b) and section 2 of the Act.
[18]
At
the hearing before me, counsel for the applicant withdrew the issue of abandonment
of the trade-mark OX & PALM, as well as all issues with respect to the
applicant’s trade-mark NZPQ, which were originally raised in this Notice of
Application and in his written arguments.
* * * * * * * *
A. “Person interested”
[19]
Under
section 57 of the Act, the Federal Court has exclusive jurisdiction, on the
application of “any person interested”, to order that an entry in the register
be struck out on the ground that at the date of the application, the entry, as
it appears on the register, does not accurately express or define the existing
rights of the person appearing to be the registered owner of the mark. This
definition has been broadly interpreted (John Labatt Ltd. v. Carling
Breweries Ltd. (1974), 18 C.P.R. (2d) 15 [Labatt]).
[20]
The respondent
alleges that the applicant does not qualify as a “person interested” as defined
under section 2 of the Act because the applicant never opposed the registration
of OX & PALM, it waited near the end of the prescribed 5-year deadline
stated in subsection 17(2) of the Act for bringing the present application and
it did not establish that its business has suffered as a consequence of the
registration of OX & PALM. I agree.
[21]
The applicant
has to firstly establish that it is affected or reasonably apprehends that it
may be affected by the entry of OX & PALM in the register (section 2 of the
Act). This is a factual determination. The entry must be shown to stand in the applicant’s
way, as stated in Fairmont Resort Properties Ltd. v. Fairmont Hotel
Management, L.P. (2008), 67 C.P.R. (4th) 404 [Fairmont]
at paragraph 51, which quotes with approbation the following abstract of Labatt,
above, at page 25:
To
be a “person interested” there must be a reasonable apprehension that the
person will be affected by the registered trade mark. The entry must be shown
to stand in the way of the person seeking to expunge it.
[22]
The applicant
must show that he would suffer damage if the trade-mark remained in the
register, and carrying on the same type of business as the respondent is
insufficient evidence of damage. Moreover, continuous business growth negates a
finding that any harm occurred as a result of the registration. All this is
confirmed in Coronet Wallpaper (Ontario) Ltd. c.o.b. as Crown Wallpaper v. Wall
Paper Manufacturers, Ltd. (1983), 77 C.P.R. (2d) 282, at page 283:
Although
the applicant is carrying on the same business as the respondent, that is not
sufficient to make him “interested”. There must be reasonable apprehension that
he will be affected by the trade mark CROWN.
[.
. .]
There
is no evidence that the use of the trade name or mark CROWN has caused any
damage to the applicant. On the contrary, as is well demonstrated, the
applicant’s business has continuously grown since it was created.
[23]
Therefore,
an applicant does not qualify as a “person interested” if the registration of
the respondent’s trade-mark does not diminish or limit its rights in any way,
which would not be greater, even if the attacked trade-mark was struck out of
the register, as stated by the Federal Court of Appeal in Mihaljevic v. The
Queen in right of British
Columbia
(1990),
34 C.P.R. (3d) 54 at pages 56 and 57:
A
person is interested within the meaning of s. 2 if there is a reasonable
apprehension that he will suffer a prejudice of some sort if a trade mark is
not removed from the register. In the present case, whether or not the
respondent’s trade marks remain on the register, the appellant’s situation will
remain the same: he will be unable to use his mark because the expungement of
the respondent’s trade marks will not affect the existence of the official mark
EXPO. The presence of the respondent’s trade marks on the register does not
diminish or limit in any way the rights of the appellant which would not be
greater if those trade marks were struck. It cannot be said, therefore, that
the appellant is a “person interested” within the meaning of s. 2 of the Act:
see Powell v. Birmingham Vinegar Brewery Co., [1894] A.C. 8; Richfield
Oil Corp. v. Richfield Oil Corp. of Canada Ltd. (1955), 21 C.P.R. 85,
[1955] Ex. C.R. 17, 14 Fox Pat. C. 187; John Labatt Ltd. v. Carling
Breweries Ltd. (1974), 18 C.P.R. (2d) 15.
[24]
In
the case at hand, there is no evidence that the applicant reasonably apprehends
that it will be affected by the presence of OX & PALM on the register. In
particular, there is no evidence that the OX & PALM registration stands in
the way of the applicant; there is no evidence of any instances of confusion
between the marks OX & PALM and PALM & Device; and there is no evidence
that the applicant has suffered any damage. On the contrary, I tend to agree
with the respondent that the facts, when taken as a whole, establish that the
applicant could not reasonably apprehend to be affected, and indeed has not been
affected, by the presence of OX & PALM on the register for the last five
years. Most notably:
- the
examiner never cited OX & PALM as being confusingly similar to the
applicant’s registered trade-mark PALM & Device;
- the
applicant’s sales and revenue for meat products associated with PALM &
Device have steadily increased since 2005, the year of registration of OX &
PALM, to 2010;
- 2010 was
the applicant’s best year ever in term of sales and revenue of PALM &
Device meat products;
- the
applicant continues to sell its products in 2011;
- the
applicant never opposed the respondent’s OX & PALM application prior to
registration in Canada; and
- the
applicant waited nearly five years after the registration of the
OX & PALM trade-mark to commence the present expungement
proceedings.
[25]
With
respect to the applicant’s delay to commence the present expungement
proceedings, such a delay is inconsistent with the behaviour of a party that
perceives itself to be a “person affected”, or who reasonably apprehends that
it may be affected by the existence on the registry of the OX & PALM
trade-mark. The applicant failed to oppose the registration and waited one day
short of the prescribed five-year-after-registration deadline stated in subsection
17(2) of the Act to commence the present expungement proceedings, as in Fairmont, above. At paragraphs
54 and 55, Justice Frederick E. Gibson of this Court expressed the following:
[54] The
applicant, as noted earlier, did not oppose the registration of the Hotel
Marks and I am unsympathetic to Mr. Knight’s assertion that that was
somebody else’s oversight, not his. The applicant waited only one (1) day short
five of (5) years after the registration of the Hotel Marks to commence
this proceeding.
[55] In
short, the applicant has simply not acted as if it perceives itself to be a
person affected, or who reasonably apprehends that it may be affected, by the
entry of the Hotel Marks on the register or, indeed, by the use of
“Fairmont”, . . .
[26]
In
this context, whether or not the respondent’s OX & PALM trade-mark remains
on the register, it does not appear that its registration has, nor will
diminish or limit in any way the applicant’s rights in relation to its PALM
& Device trade-mark. The applicant’s situation will likely remain unchanged.
[27]
Each
one of the above considerations taken separately may not in itself be
sufficient to deny the applicant the requisite standing to bring the present
application, but taken together, in my view, they offer significant support to the
finding that the applicant has failed to establish that it is a “person
interested” within the meaning of section 57 of the Act. Therefore, I have
serious doubts as to whether the applicant does have the requisite standing to
bring the present application under section 57 of the Act.
[28]
However,
like Justice Gibson in Fairmont, at paragraph 57, I am mindful that “person
interested” is a low threshold as précised by a line of authority. In Unitel
Communications Inc. v. Bell Canada (1995), 61 C.P.R. (3d) 12 at 23, for
example, the “person interested” requirement is a de minimis threshold
which exists to defeat nuisance applications. Consequently, I will dispose of
the remaining issues dealing with the merits of the Notice of Application.
B. The first two issues raised by
the applicant
[29]
In
order to dispose of the first two issues raised by the applicant, which concern
registrability and entitlement, it must be determined whether or not the marks
OX & PALM and PALM & Device are confusing. Such a determination
constitutes a finding of fact.
[30]
Confusion
is defined at subsection 6(1) of the Act. The traditional test for confusion is
one of first impression and imperfect recollection, as stated by the Supreme
Court of Canada in Veuve Clicquot Ponsardin, Maison Fondée en 1772 v. Boutiques
Cliquot Ltée et al. (2006), 49 C.P.R. (4th) 401 [Veuve
Clicquot] at page 415:
[20] The
test to be applied is a matter of first impression in the mind of a casual
consumer somewhat in a hurry who sees the name Cliquot on the
respondents’ storefront or invoice, at a time when he or she has no more than
an imperfect recollection of the VEUVE CLICQUOT trade-marks, and does not pause
to give the matter any detailed consideration or scrutiny, nor to examine
closely the similarities and differences between the marks. . . .
[31]
In
determining the issue of confusion, in addition to the surrounding
circumstances of the case, subsection 6(5) of the Act lists a number of factors
to be considered, namely:
a.
Inherent
distinctiveness and the extent to which each mark has become known;
b.
The length of time
each mark has been in use;
c.
The nature of the
wares, services and business;
d.
The nature of the
trade; and
e.
The degree of
resemblance in appearance, sound and idea suggested by the marks.
[32]
In evaluating
confusion, the weight to be given to each of these factors varies (see Mattel,
Inc. v. 3894207 Canada Inc. (2006), 49 C.P.R. (4th) 321 [Mattel]
at para 54; Veuve Clicquot at para 21; and Beverley Bedding &
Upholstery Co. v. Regal Bedding Ltd (1980), 47 C.P.R. (2d) 145 (F.C.T.D.),
affirmed 60 C.P.R. (2d) 70 (F.C.A.) [Beverley Bedding]).
[33]
The
courts have consistently held that when determining the degree of resemblance,
trade-marks are to be compared in their totalities and not dissected into their
constituent elements. The overall impression left by the marks in the mind of
the casual consumer is what should be considered (see Park Avenue Furniture
Corp. v. Wickes/Simmons Bedding Ltd. et al. (1991), 37 C.P.R. (3d) 413 at
426 (F.C.A.)).
C. Subsection 6(5) factors
a. Inherent
distinctiveness and the extent to which each mark has become known
[34]
Distinctiveness
can either be acquired or inherent. A trade-mark that is distinctive
distinguishes, allowing consumers to identify the source of the labeled product
(United Artists Corp. v. Pink Panther Beauty Corp. (1998), 80 C.P.R.
(3d) 247 [United Artists] at para 24). Distinctiveness is a
prerequisite for registration under the Act.
[35]
The
applicant believes its trade-mark PALM & Device to be distinctive because
of its labeling, advertisement and sales throughout Canada. In its view, since
2005, Canadian consumers only associate the word “palm” with the applicant’s
canned beef products, relying on its sales figures and its label prominently
displaying the word “palm” in a sunset, denying any distinctiveness to be tied
to the respondent’s trade-mark OX & PALM.
[36]
However,
the respondent considers OX & PALM to be distinctive: emphasis must be
placed on the first word of a trade-mark, namely “ox”, because the word “palm”
is a common term in the marketplace.
[37]
The
respondent rightly asserts that emphasis is usually placed on the first word of
a trade-mark for the purpose of distinction: strength in a mark is generally
tied to the first word (Conde Nast Publications Inc. v. Union des éditions
modernes (1979), 46 C.P.R. (2d) 183 at 188). However, recently, in Masterpiece
Inc. v. Alavida Lifestyles Inc., 2011 SCC 27 [Masterpiece] at para
64, the Supreme Court of Canada, while highlighting the importance of the first
word in a trade-mark, specified that the best approach is to determine whether
an aspect of the trade-mark is striking or unique. Nonetheless, the existence
of third party marks using a common term diminishes the proprietary
significance that can be attached to a word like “palm” (Molnlycke
Aktiebolag v. Kimberly-Clark of Canada Ltd. (1982), 61 C.P.R. (2d) 42).
[38]
The
evidence also discloses that PALM is a recognizable surname in Canada. Arguably, consumers
upon viewing the word PALM do not perceive a connection between PALM &
Device and OX & PALM.
[39]
In
addition, as argued by the respondent, OX & PALM is a coined phrase that is
sufficiently inherently distinctive to co-exist on the register with the
applicant’s PALM & Device, and the other third party trade-marks for meat
products containing the word PALM or palm designs. Both at the time of filing
the application for registration of OX & PALM and at the date of
registration, OX & PALM was the only trade-mark on the register that
combined the words OX and PALM for meat products. On the register, of the eight
third party trade-marks containing the word OX or an “ox” design covering meat
products, and the 25 third party trade-marks containing the word PALM or a
“palm” design covering meat products, the coined phrase OX & PALM stands
apart in relation to meat products. Therefore, the emphasis of the respondent’s
trade-mark being on the word “OX”, there is a significant element of
distinctiveness to its mark, despite the applicant’s assertion.
[40]
I
believe the applicant is exaggerating when it asserts the word “palm” is
strictly associated with its products in the mind of Canadian consumers. The
evidence does not support such a broad assertion.
b. The
length of time each mark has been in use
[41]
The
longer trade-marks have co-existed without actual confusion, the harder it will
be for the applicant to prove a likelihood of confusion. While the applicant
relies on Miss Universe, Inc. v. Bohna (1994), 58 C.P.R. (3d) 381, to
support its position that its longer use of “PALM & Device” warrants a broader
scope of protection, this time period and the notoriety of its trade-mark is
not comparable to the famous brand of “Miss Universe”. Length of use is taken
into account, but it is not determinative in the application at hand.
c. The
nature of the wares, services and business
[42]
The
nature of the parties wares are similar, being canned beef, of similar low
price and equivalent quality, favoring a finding of confusion, but this factor
by itself is not determinative (United Artists at para 26; and Governor
and Co. v. Hallmark Cards, Inc (2003), 30 C.P.R. (4th) 231).
d. The
nature of the trade
[43]
The
nature of the trade of both parties is also quite similar, as highlighted by
the applicant: both parties target the same end consumer (Ciba-Geigy Canada
Ltd. v. Apotex Inc. (1992), 44 C.P.R. (3d) 289) and their products are found
in the same types of stores (United Artists), at a comparable price (Masterpiece
and Mattel).
e. The
degree of resemblance in appearance, sound and idea suggested by the marks
[44]
The
degree of resemblance is the overriding factor, being given the most weight (Beverley
Bedding at 149). The trade-marks have to be compared as a whole, not by
looking at its constituent elements separately. Similarities do not mean there
is a likelihood of confusion.
[45]
The applicant
relies on British Columbia Hydro and Power Authority v. Consumers’ Gas Co. (2000),
9 C.P.R. (4th) 280 where “power smart” and “energy smart” were held
to be confusing, to support its allegation that the resemblance in sound and
idea between PALM & Device and OX & PALM merits a finding of confusion.
However, the order of the common element, in the present case, is not the same
in each party’s trade-mark, the respondent’s mark beginning with “OX” and not
“PALM”.
[46]
The respondent
is right in asserting that, in the present case, OX & PALM and PALM &
Device bear little resemblance to one another. This factor outweighs any
overlap in wares or channels of trade.
[47]
In
terms of appearance, the word PALM is the only element of commonality between
the two marks which, however, is also used by other entities. The various
design elements of PALM & Device, as described by the applicant, namely “an
image of a sunset, with a palm tree, partially shown on either side of a
setting sun” are not found in OX & PALM, but again, are shared with other
entities, particularly the image of a palm tree. Moreover, the word OX is the
first word in OX & PALM and it is not contained in the applicant’s mark.
[48]
In
addition, the marks do not sound the same. The word PALM is at the end of the
coined phrase OX & PALM. Therefore, when sounded, the element first heard
is OX.
[49]
Finally,
the trade-mark OX & PALM does not necessarily convey a “tropical” meaning
or suggestion as it is devoid of the various designs (i.e. sunset, palm tree,
setting sun) which, in contrast, convey a “tropical” meaning or suggestion to
the trade-mark PALM & Device.
[50]
I
find, therefore, that when the trade-mark OX & PALM is viewed in its
totality and compared to PALM & Device, the trade-marks bear little
resemblance to one another in appearance, sound and idea.
D. Additional surrounding
circumstances
[51]
In
addition to the subsection 6(5) factors, additional surrounding circumstances
may be considered in evaluating confusion.
[52]
The
respondent submits that the examiner’s consideration of the applicant’s mark PALM
& Device during his examination of the OX & PALM trade-mark application
and his decision not to cite OX & PALM as confusing with PALM & Device,
in addition to his recognition that PALM has been associated with meat
products, are pertinent facts that favour a finding of absence of confusion
between the trade-marks. I agree. The examiner, acting on behalf of the
Registrar of Trade-marks, possesses the knowledge of trade-marks law necessary to
assess the registrability of trade-marks on a daily basis (see Masterpiece
at para 112).
[53]
In
addition, long standing co-existence of trade-mark registrations for OX &
PALM and PALM & Device in the United States since 1998 favours a finding of no confusion
between the trade-marks.
[54]
In
conclusion, having regard to the subsection 6(5) factors and the above
additional surrounding circumstances, while there are similarities between PALM
& Device and OX & PALM, I do not believe these similarities warranted a
finding of confusion at the time the respondent’s registration was granted.
E. The third issue raised by the
applicant
[55]
The
applicant alleges that the respondent’s registration for OX & PALM is
invalid because, based on paragraph 18(1)(b) and section 2 of the Act,
it was not distinctive at the commencement of these proceedings.
[56]
Distinctiveness
can either be acquired or inherent. In other words, according to section 2
of the Act, there are two ways for a trade-mark to become distinctive, namely
it actually distinguishes, or is adapted so to distinguish.
[57]
The
applicant contends that the respondent did not use its trade-mark before
January 2011, having only delivered one shipment to Canada during the summer of 2010,
the earliest sales of OX & PALM being recorded in January 2011. Therefore,
the applicant claims that when the Notice of Application was filed in October
2010, because of the respondent’s failure to use its trade-mark, it was not
distinctive at the commencement of these proceedings.
[58]
Inversely,
the respondent asserts that its trade-mark OX & PALM is adapted to
distinguish and that regardless, it did use its mark before the commencement of
these proceedings, having sold its products in July 2010.
[59]
A
trade-mark adapted to distinguish is inherently distinctive, regardless of use
(AstraZeneca AB v. Novopharm Ltd. et al. (2003), 24 C.P.R. (4th)
326).
[60]
In
the case at bar, I find that the trade-mark OX & PALM is “adapted so to
distinguish” for the following reasons:
- as stated
above, OX & PALM is a coined phrase that was, on October 20, 2010 (and
prior to this date) and still is the only trade-mark on the register that
combines the word elements OX and PALM for meat products;
- in
addition, OX & PALM corned beef is popular and has been recognized by the
Filipino community in Canada for at least the last
15 years (“Affidavit of David Wooby” at paras 16 and 17).
[61]
Furthermore,
as correctly stated by the respondent, the evidence discloses “use” in Canada of the OX & PALM
trade-mark prior to the commencement of these expungement proceedings on
October 20, 2010. In particular:
- in July
2010, a sale of Heinz’s OX & PALM took place in the normal course of
business in which a shipping container containing 1660 cartons of OX & PALM
corned beef was delivered to Centennial Food Service, the Canadian consignee;
- the sale
was for US$79,989.53;
- on August
28, 2010, the shipment arrived in the port of Vancouver;
- in the
normal course of business, Centennial Food Service took possession of the OX
& PALM shipment a few days after its arrival in Vancouver; and
- Centennial
Food Service then sold the OX & PALM corned beef products to its customers
within Canada. Centennial’s
customers/purchasers of OX & PALM include family-owned smaller stores and
larger retail outlets in Canada, mainly in Western
Canada.
[62]
Finally,
as I have found that the mark OX & PALM is not confusing with the mark PALM
& Device, the applicant’s sales of PALM & Device products on or before
October 20, 2010 do not render the respondent’s OX & PALM trade-mark
non-distinctive.
[63]
In
conclusion, finding that the respondent’s registration for the trade-mark OX
& PALM is valid, the applicant’s application for expungement under section
57 of the Act is dismissed, with costs.
JUDGMENT
The application is dismissed,
with costs.
“Yvon
Pinard”