Date: 20080702
Docket: T-2278-06
Citation: 2008
FC 828
Ottawa, Ontario, July 2, 2008
PRESENT: The Honourable Orville Frenette
BETWEEN:
PHARMACOMMUNICATIONS HOLDINGS INC.
Applicant
and
AVENCIA INTERNATIONAL INC.,
JASON LEWIS,
DONALD LAJOIE AND GREGORY KOCHUK
Respondent
REASONS FOR ORDER AND ORDER
I. The Requested Relief
[1]
This is an application by PharmaCommunications Holdings Inc. (the
“Applicant”), for the following relief pursuant to section 53.2 of the Trade-Marks
Act, R.S.C.,
1985, c. T-13 (the “Act”):
·
a declaration that:
i.
the
Applicant is the owner of the unregistered trade-mark “PharmaCommunications”
(the “Trade-mark”);
ii.
Avencia
International Inc., Jason Lewis, Donald Lajoie and Gregory Kochuk (the
“Respondents”) have directed public attention to Avencia International Inc.’s
(the “Respondent corporation” or “Avencia”) services and business in such a way
as to cause or be likely to cause confusion in Canada between its services and
business and the services and business of PharmaCommunications Group Inc./Groupe
PharmaCommunications Inc. (“PGI”);
iii.
the
Respondent corporation’s business name “PharmaComm” is confusingly similar to
the Applicant’s Trade-mark.
·
a
permanent injunction order:
i.
restraining
the Respondents from using the Applicant’s Trade-mark, or any trade-name,
trade-mark or business name confusingly similar thereto, including, but not
limited to, the business names “Pharmacomm” and “PharmaComm”;
ii.
requiring
the Respondents to cease using, and to forthwith destroy, any and all
brochures, business cards, letterhead, sales and promotional literature or
other documents, statements and advertisements, in whatever form or medium
whatsoever, which include or refer to the business names “Pharmacomm” or
“PharmaComm” or any business name similar to the Applicant’s Trade-mark;
iii.
prohibiting
the Respondents from stating or referring to the business names “Pharmacomm” or
“PharmaComm” on the Respondent corporation’s web site and requiring the Respondents
to alter its uniform resource located and any other means by which it
identifies or locates its website so that it does not refer to or state the
names “Pharmacomm” or “PharmaComm” or any other business name similar to the
Applicant’s Trade-mark; and
iv.
prohibiting
the Respondents from directing public attention to the Respondent corporation’s
services and business in such a way as to cause or be likely to cause confusion
in Canada between its services and
business and the services and business of PGI.
·
an order
directing that all items including, but not limited to signage, commercial
stationary and advertisements bearing the business names “Pharmacomm” or
“PharmaComm”, or any other word or words that phonetically sound like or are
similar to the Applicant’s Trade-marks, regardless of their spelling, be
removed from the Respondent corporation’s premises and delivered up to the
Applicant at the Respondents’ expense, to be dealt with by the Applicant as it
deems appropriate.
·
such other
relief as this Honourable Court may deem just.
·
the costs
of the application in accordance with Column III of the Table in Tariff B of
the Federal Court Rules, 1998.
II. The Background
[2]
The
Applicant has been incorporated since September 26, 1995. It asserts that since
it was incorporated, it has owned the unregistered Trade-mark and has licensed
it to PGI, a related company that was also incorporated in 1995. The Applicant
also insists that the Trade-mark has been used by its predecessor corporations
since December 1982, and that the Trade-mark has always been used in relation
to the provision of marketing, advertising and related consulting services to
the pharmaceutical industry in Canada.
[3]
The
Respondent corporation was incorporated on January 20, 2004 and it registered
the name “PHARMACOMM” under the Business Names Act, R.S.O. 1990, c. B.17 on December 2, 2004. Since then, it has operated using that
name. While the Respondents admit that the personal Respondent Jason Lewis is
the director of Avencia, they insist that the personal Respondents Donald
Lajoie and Gregory Kochuk are not officers or directors of the corporation.
[4]
It is
against this backdrop, that the Applicant has asserted that Avencia, and the
personal Respondents in association with it, carry on the same business as the
Applicant using a name that is confusingly similar to its alleged Trade-mark.
It insists that the Respondents actions constitute a violation of section 7(b)
of the Act, and that it should be granted the considerable relief that
it has requested.
A. PGI’s Business
[5]
The
Applicant describes PGI as a marketing company for pharmaceutical companies in Canada. This is a niche market of
approximately 100 companies. In contrast, the Respondents characterize PGI as a
distribution company.
[6]
Regardless,
both parties appear to agree that PGI’s business involves disseminating
information about its client’s products to health care workers by means of
direct marketing and a call-centre. Further, they appear to agree that it is
also involved in the business of gathering data on the prescribing needs and
practices of medical practitioners, which it then makes available to its
clients via a specific website.
B. Avencia’s Business
[7]
There is
less comity on the subject of Avencia’s business.
[8]
The
Applicant asserts that Avencia’s business is substantially similar to PGI’s, in
that both offer marketing information and programs to pharmaceutical
manufacturers in Canada. The Applicant insists that
the Respondent corporation also arranges for the delivery of the marketing
materials it creates. For example, the Applicant has pointed to a purchase
order makes reference to a “direct mail campaign” and includes a handwritten comment
that states “cost includes outsourcing delivery to physicians by Dendrite...”.
[9]
The
Applicant also notes that Avencia’s website lists a number of the services that
it provides. The Applicant goes on to simply assert that those services are
similar or identical to those offered by PGI in connection with the Trade-mark.
The services listed on the website range from the opaque (such as “exciting and
engaging directed e-tactics”) to those that actually seem to resemble those the
Applicant asserts are offered by PGI (such as “E-based research, communications
and detailing on a common platform designed for clients, local and global”).
[10]
The
Respondents, for their part, submit that Avencia is an advertising agency. They
also describe its business in somewhat esoteric marketing terms, such as “core
creative brand development”, “strategic brand planning”, “dialogues and brand
analysis with healthcare professionals for clients” and “production management
and provision of finished goods”. Ultimately, the Respondents claim that
Avencia’s business is really brand consultation, media advertising, product
promotion and sales techniques.
V. Issues
[11]
While
numerous issues were raised, I will only be dealing with the main one: Are the
Respondents liable for statutory passing off?
VI. Legislation
[12]
The relevant statutory provisions of the Act
are as follows:
Definitions
2.
In this Act,
…
"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.
(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.
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.
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.
Prohibitions
7.
(b) direct public attention to his
wares, services or business in such a way as to cause or be likely to cause
confusion in Canada, at the time he commenced so to direct attention to them,
between his wares, services or business and the wares, services or business
of another;
|
Définitions
2. Les
définitions qui suivent s’appliquent à 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. (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.
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.
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.
Interdictions
7.
b) appeler l’attention du public sur
ses marchandises, ses services ou son entreprise de manière à causer ou à
vraisemblablement causer de la confusion au Canada, lorsqu’il a commencé à y
appeler ainsi l’attention, entre ses marchandises, ses services ou son
entreprise et ceux d’un autre;
|
VII. Arguments
A.
Applicant’s
Evidence
[13]
The
Applicant’s evidence consists of the affidavit of Ronald Maheu, the President
of the Applicant, and a number of documents attached to it as exhibits.
·
A printed version
of webpage with the date “2/8/2007” that lists Pharmaceutical and Consumer
Healthcare manufacturers that PGI has allegedly completed projects for.
·
A sample
letter from the Applicant’s direct mail business.
·
A package
of documents that includes: (1) an undated document advertising
PharmaCommunications Direct Marketing; (2) a printed version of web-pages from
the PharmaCommunications Direct Marketing website with the date “2/8/2007”; (3)
a printed copy of web-pages from the Medication Information Center website with
the date “2/8/2007”; and (4) a printed version of web-pages from MedBase
Marketing Intelligence Inc. with the date “2/8/2007”.
·
A Business
Names Report indicating that Avencia has registered the business name
PHARMACOMM.
·
A printed
copy of web-pages from Avencia’s pharmacomm.ca website with the date “2/8/2007”.
·
An undated
PharmaCommunications Direct Marketing brochure.
[14]
The
Applicant also made a motion to obtain authorization to file: (1) on a
confidential basis document created after the institution of these proceedings
that demonstrates that PGI has been referred to as PharmaComm by at least one
client; and (2) an exchange of correspondence between the Applicant’s counsel
and a named company that took place on November 22 and 23, 2007. In that
correspondence, that company, in response to a demand letter from the
Applicant, denied that it renders marketing services in competition with the
Applicant. Both of the above documents were supported by another affidavit from
Ronald Maheu. The motion was allowed by Prothonotary Aalto on April 21, 2008:
[15]
Counsel
for the Respondents vehemently attacked the probative value of the confidential
document for the following reasons:
A.
there was
no previous evidence on file of the purported confusion of names before this
document was publicized on July 25th, 2007 by Diffmarv.
Communications and, in the document, the client generally uses the name “PharmaCommunications”
except for page 6 where it refers to PharmaComm.;
B.
the
application was filed on December 22, 2006, and the above document was only
produced following an order dated April 21, 2008;
C.
the
credibility of Mr. Maheu is weakened by the decision of Justice Roger E. Baker,
J.S.C. of February 12, 2004, in IMS du Canada Ltée v. Pharmacommunications
Group Inc., [2004]
Q.J. No. 3410
(Q.C.S.C.) where
the Respondents in that case were found guilty of contempt of court. The
Respondents in this case specifically note that Justice Baker wrote that “The
testimony of Mr. Maheu lacked credibility”.
[16]
Considering
the relevant factors raised by the Respondents as a whole, I must conclude that
the probative value of the above document is very weak.
B. Applicant’s
Arguments
[17]
The
Applicant makes two notable assertions regarding its use of the trademark and
the notoriety of its company: (1) it insists that the Trade-mark is located
prominently on the face of all information provided by PGI to its customers, on
all PGI web-sites, and on all information packages delivered to PGI customers;
and (2) the Applicant asserts that PGI has become known as the “premiere”
supplier of marketing services over 24 years, and is equated with the
electronic delivery of marketing services. This second assertion was, for some
reason, hidden away in the Applicant’s claims regarding confusion.
[18]
These are
supported primarily by assertions in Mr. Maheu’s affidavit, although some of
the exhibits attached to that affidavit might possibly be seen as at least
providing some support to these claims. For example, I could presume the
printed version of the Applicant’s website – printed after this application was
initially filed - with a long list of companies that they claim to have
completed projects for is intended to prove PGI’s alleged notoriety in the Canadian
pharmaceutical marketplace.
[19]
As far as
the rest of its submissions go, the Applicant concentrates almost exclusively
on the issue of confusion.
[20]
First, the
Applicant asserts that the Trade-mark and the name “PharmaComm” closely
resemble each other given that: (a) the words are nearly identical (such as the
upper case “C”); (b) the words sound similar; and (c) the ideas suggested by
the name are identical (both “pharmaceutical” and “communications”).
[21]
The
Applicant also insists that many who deal with PGI have referred to it as
“PharmaComm”, and supplied the confidential document mentioned above to support
this assertion. As noted above, I have found this document to be of little
probative value.
[22]
Further,
as noted above, the Applicant has supplied a letter from EOCI Pharmacomm Ltd.
This letter was supplied in response to the Respondents’ assertion, as will be
detailed below, that EOCI Pharmacomm Ltd. is a similarly named company in the
same business as the Applicant.
[23]
Second,
the Applicant asserts that there have been three specific situations in which
PGI customers have confused services offered by the Respondents with those offered
by PGI.
·
On
Thursday, November 2, 2006, Mr. Roland Mattern, Marketing Manager for Alcon
Canada Inc. allegedly met with Mr. Maheu and advised him that personal Respondents
Jason Lewis and Gregory Kochuk had met with Alcon Canada Inc. to promote their
services under the name “PharmaComm”, described themselves as “partners”, and
described their services as effectively “whatever you need, we can do”. Mr.
Mattern allegedly expressed the view that the similarity in names could lead to
confusion among his staff.
·
On October
12, 2006, Eric West, President of Isis Digital Media Inc allegedly described a
meeting to Mr. Maheu in which a representative of one of his customers, Janssen
Ortho Inc., stated that she could not understand how the applicant and Avencia
could use such similar names.
·
Karen
Tuinstra, PGI’s Director of Sales and Marketing, allegedly advised Mr. Maheu
that she was invited by the Marketing Director of a pharmaceutical business
called “Biogen-Idec” to book a meeting with it to describe PGI’s services, that
she attempted to book that meeting on or about January 12, 2007, by telephone,
and that Biogen-Idec’s Marketing Director’s assistant expressed confusion
about the purpose of the phone call and asked whether Ms. Tuinstra had received
the meeting confirmation that had already been sent to Jason Lewis of
“PharmaComm”.
[24]
Third, regarding
the Applicant’s claim to be “equated with the electronic delivery of marketing
services”, the Applicant suggests that because of this notoriety Avencia’s use
of the name “PharmaComm” much more likely to cause confusion.
[25]
Finally,
the Applicant submits that personal Respondent Jason Lewis has questionable
credibility. To support this, the Applicant notes that in his
cross-examination, Mr. Lewis claimed never to have heard of PGI or the Applicant
before the Notice of Application in this proceeding. However, the Applicant
notes that this directly conflicts para. 14 of his Affidavit where he states
that he has directed certain clients to seek the services of the Applicant over
the years. Further, the Applicant claimed that Mr. Lewis was also inconsistent
in that he initially claimed not to know whether or not Avencia was doing
certain work for the drug company Biovail, but later admitted that Avencia had
actually prepared some advertising copy and images for Biovail.
C. Respondents’
Evidence
[26]
The
Respondents’ evidence consists of affidavit of the Respondent corporation’s
President Jason Lewis, and a number of documents attached to it as affidavits.
·
A
Corporation Profile Report for “PHARMACOMMUNICATIONS HOLDINGS INC.”.
·
A
Corporation Profile Report for “PHARMACOMMUNICATIONS GROUP INC./GROUPE PHARMACOMMUNICATIONS
INC.”.
·
A WHOIS
search for the domain “pharmacomm.ca”.
·
A WHOIS
search for the domain “pharmacommunications.ca”.
·
A demand
letter from the Applicant’s counsel and the response from the Respondents’
counsel.
·
A search
for “pharmacommunications” in the Canadian Trade-marks Database.
·
A
Corporation Profile Report for “MEDBASE MARKETING INTELLIGENCE INC.
·
A WHOIS
search for the domain “pharmagram.com”.
·
A WHOIS
search for the domain “medinfocenter.com”.
·
A WHOIS
search for the domain “medmarkintel.com”.
·
A printed
version of EOCI Pharmacomm’s web-page with the date “3/19/2007”.
·
A printed
version of a google.ca search for the term “pharmacomm” with the date
“3/19/2007”.
D. Respondents’
Arguments
[27]
First,
the Respondents submit that the Applicant’s alleged Trade-mark does not satisfy
the definitions of “trade-marks”, “distinctive” or “distinguishing guise” as
prescribed by the Act. They insist that the sole right to descriptive
words cannot be appropriated, even by combining two words together (Westfair
Foods Ltd. v. Jim Pattison Industries Ltd. (1989), 59 D.L.R. (4th)
46 at paras 18 and 19, 24 C.I.P.R. 70 (Wesfair); see also Alticor
Inc. v. Nutravite Pharmaceuticals Inc., 2004 FC 235 at paras. 24 and 90,
247 F.T.R. 85 (Alitcor Inc.)), and that words of a general nature cannot
be appropriated over a wide area (Mattel, Inc. v. 3894207 Canada Inc.,
2006 SCC 22 at para. 75, [2006] 1 S.C.R. 772 (Mattel)). Further, the
Respondsnts assert that a certain amount of confusion must be accepted when
non-distinctive names are chosen (Alticor Inc. at para. 60), that that the
terms “pharma” and “communications” are commonly used descriptive words.
[28]
The
Respondents submit that the Applicant has offered no evidence that it acquired
distinctiveness through becoming well-known in association with its services (Alticor
Inc. at paras. 21, 23, 25, 26, 28 and 29). The Respondents insist that the
length of time that a trade-mark is used is not evidence that the mark is
well-known (Alticor Inc. at para. 26), but that the Applicant has not
produced evidence of use since 1982 anyways. The Respondents assert that the exhibits
to Ronald Maheu’s affidavit do not prominently display the alleged Trade-mark
and deny the assertion that the Trade-mark is located prominently on the face
of all information provided by PGI to its customers.
[29]
Additionally,
as referred to above, the Respondents claim that EOCI Pharmacomm Ltd. - a
company that is unrelated to the parties and which has its head office in the
City of Montreal, Québec - provides similar/identical
services to PGI and that its website shows that is has many of the same clients
as PGI. Further, the Respondents note that a search for “pharmacomm” on
www.google.ca results in 279 matches, and reveals many companies operating
under that name. The Respondents also submit that the Applicant has not
produced evidence that any customers refer to it or PGI as “PharmaComm”.
[30]
Second,
the Respondents submit that no confusion has been shown. The Respondents assert
that there is no resemblance between the appearance or pronunciation of
PharmaComm and the Applicant’s licensee’s trade name, PharmaCommunications
Group Inc. The Respondents also deny that they have ever encountered client
confusion.
[31]
The
Respondents also attempt to distinguish the business of Avencia from that of
PGI, as noted above, by claiming that Avencia provides creative content but
does not distribute it, while PGI is primarily a distribution firm. The
Respondents submit that Avencia does not offer the same services as those
advertised by PGI (such as mailing services, response fulfillment, sampling
services, telemarketing, database management, Good Manufacturing Practices,
warehousing, or recall services). The Respondents take the view that the
Purchase Order and Customer Purchase Order is actually evidence that Avencia
does not offer the same services as PGI. Additionally, the Respondents submit
that, while relevant, the nature of the wares or services is not controlling (see
Mattel at para. 51).
[32]
The
Respondents also note that while a customer may more likely be confused due to
the similarity of the respective parties’ products or services, other
surrounding circumstances could diminish the effect of this finding (Alticor
Inc. at para. 31). The Respondents submit that the fact that the market
where the confusion is being alleged is a niche market where the two parties
have co-existed for two years without an incident of confusion supports their
contention that it does not provide the same services.
[33]
The
Respondents also submit that the instances of confusion alleged in Mr. Maheu’s
affidavit are not credible as: (1) the Applicant did not provide the names of
any of the “other persons” who stated that the names could cause confusion; (2)
no actual confusion is shown as all that was shown was that someone who was not
confused thought that someone could be confused; (3) with regard to the meeting
with Roland Mattern, the personal Respondent Jason Lewis claims to have spoken
to Mr. Mattern on February 19, 2007 and been advised by him that his comment
was taken out of context, and that PGI and Avencia provide different services
to his company; (4) the evidence from Isis Digital Media Inc. - a direct
competitor of the Respondents - is unreliable hearsay from an unnamed source
that appears to be an attempt to provide unqualified legal advice; and (5) the
statement of Karen Tuinstra, who worked with personal Respondents Jason Lewis
and Gregrory Kochuk at MarketForce Communications until on or about May 25,
2006 when her position was terminated and who started work with the Applicant
on or about July 5, 2006, is problematic as the Respondent corporation has
never rendered services to Biogen Idec.
[34]
Third, the
Respondents submit that registered trade-mark cases are not of much assistance
where passing-off is the issue as the legal incidents are different. Section 19
of the Act provides the holder of a registered trade-mark has “the
exclusive right to the use throughout Canada
of the trade-mark” where as subsection 7(b) does not create a property interest
or exclusive right (Westfair Foods at para. 34).
[35]
The
Respondents submit that subsection 7(b) of the Act is the statutory
equivalent of common law passing off, and the three elements the common law
passing off are: (a) the existence of goodwill; (b) deception of the public due
to misrepresentation; and (c) actual or potential damage to the plaintiff (Top
Notch Construction Ltd. v. Top-Notch Oilfield Services Ltd., 2001 FCT 642
at paras. 34 and 37, 207 F.T.R. 260 (Top Notch)). The Respondents note
that in Westfair at para. 16, the court cited an Ontario Court of Appeal
decision which states that a claim based on a marking or appearance of wares
contrary to subsection7(b) will fail unless the claimant establishes that the
marking or appearance has “become recognized by the public as having a
particular origin”. The Respondents note that in Top Notch no passing
off was found where there was no misrepresentation (intentional or not) leading
or likely to lead the public to believe that the goods or services sold were
those of the plaintiff (Top Notch at para. 37). The Respondents submit
that to succeed in a passing-off action, the plaintiff must establish that he
selected a peculiar – novel – design as a distinguishing feature of his goods,
and that his goods are known in the market, have acquired a reputation in the
market, by reason of that distinguishing feature (Westfair at para. 36).
Then the plaintiff must also prove that the defendant’s course of conduct
caused or was likely to cause confusion (Westfair at para. 36).
[36]
The Respondents
also assert that the Applicant is entitled to relief for passing off as it has
not shown an instance of confusion in the marketplace, nor any actual or
potential damages resulting from the Respondent’s conduct.
[37]
Fourth,
the Respondents submit that in IMS at paras. 36, 37, 38, 49 and 50, the
court found that Mr. Maheu deliberately wanted his clients to believe that his
competitor was violating his companies’ rights and possibly the law.
[38]
Fifth, the
Respondents submit that the personal Respondents are not proper parties to this
application.
VIII. Analysis
[39]
It is not necessary to deal with the request to strike part of the
Applicant’s Memorandum of Fact and Law that arose by way of the Applicant’s earlier
motion before Prothonotary Aalto which were deferred to the hearing. This
matter can be disposed of on the basis that there is simply a lack of
submissions on the part of the Applicant who appears to believe that
passing-off revolves mainly around the issue of confusion.
[40]
As stated in Kirkbi AG v. Ritvik Holdings Inc.,
2003 FCA 297, [2004] 2 F.C.R. 241 at page 245, subsection 7(b) is the
equivalent statutory expression of the common law tort of passing
off. However, reliance on subsection 7(b) also requires that a plaintiff (as
this is usually not done through an application) prove possession
of a valid and enforceable trade-mark, whether registered or unregistered.
[41]
Therefore, the Applicant must prove possession of a valid and
enforceable trade-mark in addition to the three necessary components of a passing-off
action: (a) the existence of goodwill; (b) deception of the public due to a
misrepresentation; and (c) actual or potential damage to the plaintiff (Ciba-Geigy Canada Ltd. v. Apotex Inc., [1992] 3 S.C.R. 120 at
paragraph 33, [1992] S.C.J. No. 83 (QL)).
[42]
I do not need to opine on whether or not the Applicant has a valid
and enforceable trade-mark. Nor do I need to discuss whether or not the
Applicant has shown the existence of goodwill, or whether there has been
deception of the public due to misrepresentation. It is not necessary because
the Applicant has so clearly failed to meet one of the components of
passing-off as required by subsection 7(b) of the Act, i.e. actual or
potential damage.
[43]
I find the
Applicant has failed to make any submissions or present any evidence establishing
“actual or potential damage”. In reaching this conclusion, I note that I am
faced with a problem similar to that faced by the court in Tommy Hilfiger
Licensing Inc. v. Produits de Qualité I.M.D. Inc., 267 F.T.R. 259, [2005]
F.C.J. No. 17(QL) at paras. 137 and 138: a lack of evidence, or even
submissions, about actual or potential damage to the plaintiff.
137
As for the third element, actual or
potential damage for the plaintiffs, I find myself with the same absence of
evidence as in my analysis of section 22 with regard to the negative impact the
defendants' competition had on the plaintiffs' business. Not only was I not
presented with evidence quantifying the damage to the plaintiffs' interests but
I was not presented with evidence showing merely the nature of the damage. The
only piece of evidence that remotely touches on that point is the complaint, by
a client of the Galaxi Blue store, about the Explore Canada products. But as I
said earlier in this decision, the witness testifying to that effect could not
recall the name of the Galaxi Blue owner and the store is now closed. As a
consequence, no weight can be given to that complaint. In any case, without
other evidence, this type of isolated incident would be, even if credible,
highly insufficient to meet the "potential or actual damage"
threshold necessary to conclude to passing-off under paragraph 7(b).
138
In sum, the absence of evidence
with regard to potential or actual damage to the plaintiffs means that I cannot
conclude the defendants were involved in passing-off under paragraph 7(b) of
the Act.
[44]
As noted in BMW
Canada Inc. v. Nissan Canada Inc., 2007 FCA 255 at para. 35, 60
C.P.R. (4th) 181, actual or potential damages cannot be presumed,
and there must be evidence proving them (see also Remo Imports Ltd. v.
Jaguar Cars Ltd., 2007 FCA 258 at para. 90, 367 N.R. 177).
[45]
In this
case, there is no mention of actual or potential damage in the Applicant’s
Notice of Application. Nor is there any mention of actual or potential damage
in the Applicant’s Memorandum of Fact and Law.
[46]
The
Applicant has not established two of the conditions required in passing-off and
because of the absence of evidence with regard to potential or actual damage
to the Respondents, I cannot conclude the Respondents were involved in
passing-off under subsection 7(b) of the Act.
[47]
Given
this, the question of the liability of the personal Respondents and the
requests for injunctions do not need to be dealt with. In any event, the
conditions required for an injunction either interlocutary or permanent, have
not been met (RJR-MacDonald Inc. v. Canada (AG), [1994] 1 S.C.R. 311,
[1994] S.C.J. No. 17; Ault Foods Ltd. v. George Weston Ltd. (1996), 112
F.T.R. 245 (FCTD), 68 C.P.R. (3d) 87)).
[48]
For
all of these reasons, the application fails.
ORDER
WHEREFORE, THIS COURT ORDERS that the application is dismissed
with costs against the applicant.
"Orville
Frenette"