Docket: T-1174-14
Citation:
2014 FC 1242
Ottawa, Ontario, December 19, 2014
PRESENT: The
Honourable Mr. Justice Boswell
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BETWEEN:
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JACQUES VERT GROUP LIMITED
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Applicant
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and
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YM INC. (SALES)
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Respondent
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JUDGMENT AND REASONS
I.
Background and Nature of the Proceeding
[1]
On August 23, 1991, Planet Fashion Limited registered the word “PLANET” as a trade-mark
covering the following wares: “[c]oats, raincoats,
blazers, slacks, shirts, skirts, suits, jackets, knitted waistcoats, cardigans,
sweaters, pullovers, scarves and belts (for wear), all for women and girls”.
On December 21, 2007, Planet Fashion Limited assigned its trade-mark
registration for “PLANET” to Jacques Vert PLC (the predecessor in name to the Applicant).
[2]
On April 24, 2008, Jacques Vert PLC applied to the Registrar of Trade-marks (application serial no. 641,981(1)) to extend
its trade-mark registration no. TMA 387,969 for “PLANET”
as follows:
Extend the statement of wares in respect of
which the trade-mark is registered to include jewellery and watches; handbags,
clutch bags, evening bags, purses, wallets, umbrellas.
Extend the statement of services in respect of
which the trade-mark is registered to include retail sale of jewellery,
watches, handbags, clutch bags, evening bags, purses, wallets, umbrellas,
formalwear, business attire, high-fashion articles of clothing and ready-made
garments, suits, waistcoats, coats, raincoats, blazers, jackets, trousers,
skirts, shirts, blouses, vests, t-shirts, cardigans, sweaters, jumpers,
pullovers, scarves, shawls, clothing belts for wear, hats, formal footwear,
evening footwear, beach footwear, casual footwear, slippers.
[3]
The Respondent, which has trade-marked the words
“URBAN PLANET” to cover retail clothing store
services, opposed the Applicant’s application to extend its trade-mark
registration on the grounds that the “PLANET”
trade-mark had not been used as of the claimed date of first use, that it was
confusing with “URBAN PLANET”, and that it was
non-distinctive.
[4]
The matter went to the Trade-marks Opposition
Board [the Board], whose members have delegated authority under section 63(3)
of the Trade-marks Act, RSC 1985, c T-13 [the Act], to decide opposition
proceedings for the Registrar of Trade-marks [the Registrar]. In a decision
dated February 25, 2014, the Board refused to allow the Applicant’s extension
to its “PLANET” trade-mark (see: 2014 TMOB 42).
[5]
The Applicant now appeals the Board’s decision
pursuant to sections 56(1) and 63(4) of the Act by way of an application in
this Court under Rule 300(d) (Federal Courts Rules, SOR/98-106).
[6]
The Applicant requests, amongst other things, an
order reversing the Board’s decision and allowing the application serial no.
641,981(1). Although the Respondent was duly served with the Applicant’s Notice
of Application on May 16, 2014, the Respondent did not file any Notice of
Appearance under Rule 305 and did not contest or appear at this appeal.
II.
Issues
[7]
On appeal, the Applicant submitted evidence with
its application record that was not before the Board and raised various issues
which may be summarized as follows:
a.
Is the Applicant’s new evidence admissible?
b.
What is the standard of review?
c.
Is “PLANET” confusing
with “URBAN PLANET”?
d.
Is the “PLANET” mark
distinctive?
e.
Is it necessary to assess the grounds of
opposition dismissed by the Board?
III.
Decision of the Board
[8]
After summarizing the background of this matter
and disposing of some preliminary issues, the Board noted that the Applicant
had the onus to establish that its application to extend its trade-mark
registration complied with the requirements of the Act, but that the Respondent
first needed to adduce sufficient evidence to support its grounds of opposition
to the Applicant’s application. The Board then proceeded to assess the various
grounds of opposition raised by the Respondent.
[9]
The Board dismissed the Respondent’s argument
that the Applicant did not comply with paragraph 30(b) of the Act. Although the
Respondent argued that the Applicant had not used the mark in association with
the wares and services applied for by the extension application, the only
evidence supplied by the Respondent in this regard was an internet search which
the Board found to be insufficient to meet the Respondent’s evidentiary burden.
[10]
The Board next considered whether the “PLANET” mark was confusing with the “URBAN PLANET” mark. After stating the test, the Board
noted that section 6(5) of the Act required it to consider several factors: (a)
inherent distinctiveness and acquired fame of the marks; (b) the length of time
the marks have been used; (c) the nature of the wares, services or business;
(d) the nature of the trade; and (e) the resemblance between the marks.
[11]
In analyzing these factors, the Board observed
that both parties’ marks were inherently distinctive since neither described
the wares or services they covered and, if anything, “URBAN
PLANET” was somewhat less distinctive since the word “urban” suggested a style of clothing or city fashion. However,
the Board was satisfied by the Respondent’s evidence that “URBAN PLANET” had become well known across Canada and, since the Applicant had not presented any evidence about the use of its
trade-mark, paragraphs 6(5)(a) and 6(5)(b) of the Act favoured the Respondent.
[12]
With respect to paragraphs 6(5)(c) and 6(5)(d)
of the Act, the Board determined that the wares and services of the parties
were different, at least to the extent that the Applicant’s applied for
services included the retail sale of footwear, and that the other wares and
services were related but not identical. Although the Applicant argued that the
channels of trade were different since it sold its own branded products and the
Respondent sold only third party products, the Applicant had presented no
evidence in this regard and the Board therefore presumed that the channels of
trade overlapped.
[13]
The Board further determined that paragraph
6(5)(e) of the Act also favoured the Respondent. While acknowledging that the
first word is often the most dominant part of a mark, the Board regarded the
word “URBAN” as a word suggestive of a style of
clothing and not the most striking or unique feature of the Respondent’s mark.
Having regard to the Respondent’s mark in its totality, the Board found that “PLANET” was the most striking or unique feature of the
Respondent’s mark, and given that the word “PLANET”
was the only element of the Applicant’s mark, there was a considerable degree
of resemblance between the marks.
[14]
In determining that the Respondent’s ground of
opposition under paragraph 12(1)(d) of the Act succeeded, the Board dismissed
various arguments that the Applicant raised to show non-confusion. Although the
Applicant argued that the marks were not confusing since the trade-mark
examiner did not cite the “PLANET” mark during
prosecution of the “URBAN PLANET” mark, the Board
stated it was not bound by decisions of the examination section of the Canadian
Intellectual Property Office. The Applicant’s argument that the marks had
co-existed for years without confusing anyone was dismissed by the Board since
the Applicant had not proven that the “PLANET”
mark had been used to any great extent in Canada. In response to the
Applicant’s further argument that the wares and services in the extension
application could be seen as a natural extension of the wares already covered
and thus reduce confusion, the Board noted that the Applicant had no automatic
right to the extension.
[15]
As to the remaining grounds of opposition, the
Board stated that, in view of its finding of there being a likelihood of
confusion between the parties’ respective marks, such finding dictated the same
result for the other grounds of opposition. Thus, the Board refused the
Applicant’s application to extend its trade-mark.
IV.
Submissions of the Parties
A.
Applicant’s Submissions
[16]
Although the Applicant elected not to file any
evidence before the Board, the Applicant argues that section 56(5) of the Act
entitles it to submit new evidence on this appeal and the Applicant has done
so. This evidence by way of affidavits includes printed copies of the official webpages
for the Bay and Urban Planet, which the Applicant contends are admissible
(relying on ITV Technologies Inc v WIC Television Ltd, 2003 FC 1056 at
paras 16-18, 29 CPR (4th) 182 [ITV]), as well as statements from two
national managers of the Applicant as to the use and sales of the garments and
accessories produced and sold under the “PLANET”
mark in boutiques located in Hudson’s Bay Company outlets across Canada.
[17]
The Applicant states that, although decisions of
the Board are normally reviewed on a standard of reasonableness, this is not
the case where new or additional evidence is adduced that would have materially
affected the Board’s findings of fact or the exercise of its discretion; and
this being the case in this appeal, the appropriate standard of review for the
Board’s decision is one of correctness (citing Scott Paper Ltd v Georgia-Pacific
Consumer Products LP, 2010 FC 478, 83 CPR (4th) 273 [Scott]).
[18]
In light of this new evidence, the Applicant
argues that there can be no confusion between “PLANET”
and “URBAN PLANET”. The Applicant agrees with the
Board’s decision that both marks are inherently distinct, but submits that the
Board erred by finding that “URBAN PLANET” had
acquired more distinctiveness by becoming well known. The Applicant argues that
the evidence now before this Court shows that the “PLANET”
mark has acquired substantial distinctiveness and has been used in Canada since
at least as early as 1999 and, hence, the factors under paragraphs 6(5)(a) and
6(5)(b) of the Act favour neither party.
[19]
The Applicant also argues that both the nature
of the goods and services and the channels of trade suggest that its “PLANET” mark is not confusing with “URBAN PLANET”. The Applicant states that the Respondent
sells only third-party products directed at young, trend-sensitive consumers at
prices substantially lower than the prices of the Applicant’s branded products,
whereas the “PLANET” products are sold in the
Applicant’s own boutiques to a more mature and business type of consumer.
These, the Applicant submits, are distinct markets within the fashion industry,
something which reduces the likelihood of any confusion.
[20]
The Applicant further states that the Board was
wrong to find that the marks strongly resemble each other and that the Board
should not have dissected “URBAN PLANET” by
focussing on the second word, especially since the first word of a mark is
usually most important.
[21]
The Applicant submits that the evidence now
before the Court shows that the marks have co-existed for many years without
any evidence of confusion. Furthermore, the “URBAN
PLANET” mark was registered in 2005 despite the fact that the “PLANET” mark had been on the register since 1991; if
the Registrar did not consider the marks to be confusing in 2005, the Applicant
submits that they are not confusing now.
[22]
As for the non-entitlement ground of opposition,
the Applicant submits that the Board was wrong to find that the Respondent met
its burden under paragraph 16(1)(a) of the Act since the pertinent date to be
considered was the date of first use claimed by the Applicant, a date which was
well before when the Respondent began using its “URBAN
PLANET” mark in Canada. In any event, the Applicant says that since
there is no likelihood of confusion this ground of opposition should have been
dismissed by the Board.
[23]
In reference to the non-distinctiveness ground
of opposition, the Applicant states that the Board’s determination in this
regard was incorrect since it too was premised on the existence of confusion.
[24]
For those reasons, the Applicant submits that it
is entitled to extend its “PLANET” mark to cover
the additional wares and services.
B.
Respondent’s Submissions
[25]
Although the Respondent was notified of this
appeal on May 16, 2014, it did not file a Notice of Appearance pursuant to Rule
305, nor did it intervene after the Order setting down the hearing of this
matter was faxed to it on July 16, 2014. The appeal has therefore proceeded uncontested.
V.
Analysis
A.
Is the Applicant’s new evidence admissible?
[26]
Although an appeal under section 56(1) of the
Act proceeds in many ways like a judicial review, section 56(5) of the Act
provides as follows:
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56. … (5) On an
appeal under subsection (1), evidence in addition to that adduced before the
Registrar may be adduced and the Federal Court may exercise any discretion
vested in the Registrar.
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56. […] (5) Lors de
l’appel, il peut être apporté une preuve en plus de celle qui a été fournie
devant le registraire, et le tribunal peut exercer toute discrétion dont le
registraire est investi.
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The Federal Court of Appeal has held that
this provision allows a party to file evidence even if it submitted no evidence
before the Board (see: Brain Tumour Foundation of Canada v Starlight
Foundation, 2001 FCA 36 at paras 3-6, 11 CPR (4th) 172). The law is clear;
the Applicant’s affidavit evidence can be considered for the purposes of this
appeal.
[27]
Also, this Court has sometimes admitted
documents from the official websites of companies as evidence (ITV at
paras 16-18), but not necessarily for the truth of their contents (ITV
at para 12). Indeed, although the Federal Court of Appeal affirmed the trial
decision in ITV, it expressly refused to comment on whether the internet
evidence was admissible (ITV Technologies Inc v WIC Television Ltd, 2005
FCA 96 at paras 29-31, 251 DLR (4th) 208).
[28]
In this case, Ms. Roberts attached as exhibits
to her affidavit some webpage printouts from the internet to substantiate her
personal observations that “PLANET” goods are more
expensive than the goods sold in “URBAN PLANET” stores.
These observations have not been contradicted by any other evidence before the
Court, and so I find, without regard to the webpage printouts themselves, that
based on Ms Roberts’ observations the goods sold in “URBAN
PLANET” stores have lower prices than those sold in the “PLANET” boutiques. It is unnecessary to consider the
admissibility of the webpage printouts any further.
B.
What is the standard of review?
[29]
Although new evidence may be submitted, an
appeal under section 56(1) of the Act is not a trial de
novo since the material before the Board must also
be considered. Accordingly, the standard of review must be determined.
[30]
In Molson Breweries v John Labatt Ltd,
[2000] 3 FCR 145 at para 51, 5 CPR (4th) 180 (CA), Mr. Justice Rothstein stated
that:
Having regard to
the Registrar's expertise, in the absence of additional evidence adduced in the
Trial Division, I am of the opinion that decisions of the Registrar, whether of
fact, law or discretion, within his area of expertise, are to be reviewed on a
standard of reasonableness simpliciter. However, where additional
evidence is adduced in the Trial Division that would have materially affected
the Registrar's findings of fact or the exercise of his discretion, the Trial
Division judge must come to his or her own conclusion as to the correctness of
the Registrar's decision.
The foregoing was
acknowledged by the Supreme Court of Canada as being consistent with its
approach in Mattel, Inc v 3894207 Canada Inc, 2006 SCC 22 at para 41, [2006] 1 S.C.R. 772 [Mattel], and has also been followed by this Court and
the Federal Court of Appeal subsequent to Dunsmuir v New Brunswick, 2008
SCC 9, [2008] 1 S.C.R. 190 (see: e.g., Iwasaki Electric Co Ltd v Hortilux
Schreder BV, 2012 FCA 321 at para 2, 442 NR 310; and Scott at paras
42-44).
[31]
I agree with the Applicant that the evidence now
adduced in this Court would have materially and significantly affected the
Board’s decision. The primary issue before the Board was confusion between the
marks, and the Board expressly premised many of its findings on the fact that
there was no evidence from the Applicant to rebut the Respondent’s objections.
In particular, the absence of evidence that “PLANET”
had been used by the Applicant led the Board to make the following conclusions:
that “URBAN PLANET” had acquired more
distinctiveness than “PLANET”; that “URBAN PLANET” had been used longer than the Applicant’s
mark; and that the channels of trade would overlap.
[32]
The Applicant has now presented significant
evidence with respect to matters of which the Board was not aware and which
would have materially affected the Board’s evaluation of the factors under section
6(5) of the Act. Accordingly, the Board’s conclusions and its decision to
refuse the Applicant’s application to extend its trade-mark are owed no
deference.
C.
Is “PLANET” confusing with “URBAN PLANET”?
[33]
An opponent to a proposed trade-mark, such as
the Respondent here, bears an evidentiary burden to show that the grounds of
opposition are supported before an applicant’s legal onus to prove its claim for
a trade-mark is engaged (see: John Labatt v Molson Co (1990), 36 FTR 70
at para 11, 30 CPR (3d) 293, aff’d (1992), 144 NR 318, 42 CPR (3d) 495 [Labatt];
and see: Christian Dior, SA v Dion Neckwear Ltd, 2002 FCA 29 at paras
10-11, [2002] 3 FCR 405). Although this evidentiary burden is light (see: Loblaws
Inc v Telecombo Inc, 2006 FC 634 at para 36, 292 FTR 272), the opponent
must still present sufficient evidence from which it can reasonably be
concluded that the facts alleged to support a ground of opposition exist (see: Cyprus
(Commerce and Industry) v International Cheese Council of Canada, 2011 FCA
201 at para 26, 93 CPR (4th) 255, citing Labatt, at para 13).
[34]
The Applicant claimed before the Board that it
has used “PLANET” to mark the wares and services
referred to in its application since at least as early as 1997 in Canada. The evidence before the Board was that the first store using the “URBAN PLANET” banner opened in the Eaton Centre in Toronto on July 7, 1998, and that the “URBAN PLANET” mark was only
applied for on June 4, 2004. The Board found that the Respondent failed to
satisfy its burden to show that the Applicant’s mark had not been used in
association with the applied for wares and services since 1997, and concluded
(at para 25 of its decision) that it “cannot be assumed
from a lack of evidence of use of the Mark [i.e., “PLANET”] on the Internet
alone that the Applicant has not been using its Mark in association with the
applied for wares or services”. I agree with the Board’s conclusion in that
regard.
[35]
However, the Board found that the Respondent had
satisfied its initial evidentiary burden with respect to its objection that the
Applicant’s proposed extension of its mark was not registrable since it was
confusing with the Respondent’s mark. The Board also found that, since there
was a reasonable likelihood of confusion between the Applicant’s mark and the
Respondent’s mark, the Applicant’s application to extend the statement of wares
and services of its mark should be refused.
[36]
With the new and additional evidence now before
the Court, I disagree. It is my view that there is no reasonable likelihood of
confusion between “URBAN PLANET” and the
Applicant’s proposed extension of its mark “PLANET”.
[37]
Paragraph 12(1)(d) of the Act provides that a
trade-mark is registrable if it is not “confusing with a
registered trade-mark”. The material date against which any such
confusion is to be assessed is the date of adjudication (see: Park Avenue
Furniture Corp v Wickes/Simmons Bedding Ltd (1991), 37 CPR (3d) 413 at 422,
130 NR 223 (FCA)), and since significant new evidence has now been filed with
the Court this date should be the date of this Court’s determination (see: Hudson’s
Bay Co v Anonim Sirketi, 2013 FC 124 at para 28, 109 CPR (4th) 211).
[38]
Section 6(2) of the Act provides that a
trade-mark is confusing with another trade-mark if it is “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”.
In Masterpiece Inc v Alavida Lifestyles Inc, 2011 SCC 27 at para 40, [2011] 2 S.C.R. 387 [Masterpiece], the Supreme Court of Canada set out the
following approach:
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
[mark], at a time when he or she has no more than an imperfect recollection of
the [prior] 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.
[39]
In addition, section 6(5) of the Act requires
that all the surrounding circumstances must be considered in determining
whether trade-marks are confusing:
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6. ...(5) In
determining whether trade-marks or trade-names are confusing, the court or
the Registrar, as the case may be, shall have regard to all the surrounding
circumstances including
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6. […](5) En
décidant si des marques de commerce ou des noms commerciaux créent de la
confusion, le tribunal ou le registraire, selon le cas, tient compte de
toutes les circonstances de l’espèce, y compris :
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(a) the inherent distinctiveness of the trade-marks or trade-names
and the extent to which they have become known;
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a) le caractère distinctif inhérent des
marques de commerce ou noms commerciaux, et la mesure dans laquelle ils sont
devenus connus;
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(b) the length of time the trade-marks or trade-names have been in
use;
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b) la période pendant laquelle les marques de
commerce ou noms commerciaux ont été en usage;
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(c) the nature of the wares, services or business;
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c) le genre de marchandises, services ou
entreprises;
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(d) the nature of the trade; and
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d) la nature du commerce;
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(e) the degree of resemblance between the trade-marks or trade-names
in appearance or sound or in the ideas suggested by them.
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e) le degré de ressemblance entre les marques
de commerce ou les noms commerciaux dans la présentation ou le son, ou dans
les idées qu’ils suggèrent.
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[40]
Paragraph 6(5)(a): inherent distinctiveness and
fame – I agree with the Board that both marks are inherently distinctive and
for the same reason. They are both arbitrary and neither mark logically
describes or suggests the wares and services they cover. I also accept the Board’s
conclusion (at para 32 of its decision) that “URBAN
PLANET” has become quite well known across Canada.
[41]
Unlike the Board, however, the Court now has
evidence before it that the “PLANET” mark has also
become known in Canada. The affidavits from two of the Applicant’s national
managers show that goods with the “PLANET” brand
are sold in boutiques in 50 Bay locations across seven provinces, and since
2009 annual sales of “PLANET” branded goods have
exceeded $32 million. Ms. Roberts’ affidavit further shows that the name of the
“PLANET” brand is displayed within the Ottawa boutique in the Bay on the wall and on the hangers, and that the merchandise bag
includes a reference to the brand. Based on this evidence, I conclude that “PLANET” has also become known in Canada.
[42]
Paragraph 6(5)(b): time used – I accept that the
respective marks of the Applicant and the Respondent have been used for about
the same length of time, in that the Respondent opened its first “URBAN PLANET” store in Toronto in 1998 and that “PLANET” boutiques have been operating at least since
1999.
[43]
Paragraph 6(5)(c): nature of the wares and
services – Both the “URBAN PLANET” mark and the
applied for extension of the Applicant’s mark cover retail sale of clothing
services. Although the “URBAN PLANET” mark does
not cover wares, a casual consumer might associate the retail services of a
clothing store with any wares marked similarly. This factor suggests that the
marks might possibly be confusing in the mind of a casual consumer somewhat in
a hurry, but for the reasons noted below I do not see this factor alone as
being a sufficient reason to deny the Applicant’s application.
[44]
Paragraph 6(5)(d): nature of the trade – There
is no evidence that the Respondent sells any goods or wares branded with its
trade-mark on it; indeed, there is evidence before the Court that the
Respondent sells only goods or wares of third parties. In contrast, the
evidence now shows that “PLANET” goods are
exclusively sold within the Applicant’s own boutiques located within Bay
stores. Furthermore, the price ranges of the goods or wares sold by each party
are materially different; typically, “PLANET”
branded goods are significantly more expensive than the goods sold in “URBAN PLANET” stores. These types of differences have
been held to reduce the chance of confusion (see: e.g., Hermés SA v Fletcher
Golf Enterprises Ltd (1984), 78 CPR (2d) 134 at 146, [1984] FCJ No 29 (QL) (FCTD)).
[45]
The fact that the goods sold by each party are
sold in different types of stores and marketed to a different type of customer
is a significant factor (see: Mattel at para 86), since a consumer who
is familiar with clothing sold in an “URBAN PLANET”
store would not likely be confused by more expensive articles of clothing sold
in a “PLANET” boutique in a Bay department store. Moreover,
there is no evidence that these channels of trade are likely to mix at any time
in the near future. As the Federal Court of Appeal observed in Alticor Inc v
Nutravite Pharmaceuticals Inc, 2005 FCA 269 at para 37, 257 DLR (4th) 60:
It has been held that assessing the future
sales operations of a company should not include speculation about possible new
ventures. (See Joseph E. Seagram & Sons Ltd. v. Registrar of Trade Marks
(1990), 33 C.P.R. (3d) 454, at p. 46, (F.C.T.D.); Cochrane-Dunlop Hardware
Ltd. v. Capital Diversified Industries Ltd. (1976), 30 C.P.R. (2d), 176 at
p. 188 (Ont. C.A.). The actual channels of trade are a preferable basis of
projections as to the future likelihood of confusion. [Emphasis added]
[46]
I am mindful that the present or actual use of a
mark should not be considered to the exclusion of potential future uses within
a registration. After all, “what is at issue is what the
registration would authorize the [applicant] to do, not what the [applicant]
happens to be doing at the moment” (Mattel at para 53; Masterpiece
at para 53). There is no guarantee that “PLANET” goods
will always be sold exclusively or only in boutiques in the Bay or that the
Respondent will always sell inexpensive goods in its “URBAN
PLANET” stores. However, there is no evidence before the Court to
suggest that the existing channels of trade will change and, hence, this factor
supports the Applicant’s application.
[47]
Paragraph 6(5)(e): degree of resemblance between
the marks – This is often the most important factor in assessing the likelihood
of confusion between trade-marks (Masterpiece at para 49). The Applicant
takes issue with the Board for “dissecting” the
Respondent’s mark (see para 40 of the Board’s decision) and unduly focusing on
the word “planet” in finding that “there is a considerable degree of resemblance between the
marks in appearance, sound and idea suggested”. The Applicant argues
that the first word is usually more important (see: Conde Nast Publications
Inc v Union des éditions modernes (1979), 46 CPR (2d) 183 at 188, [1979]
FCJ No 801 (QL) (FCTD)), and that the Board erred in finding that “URBAN” was not the most striking or unique feature of
the Respondent’s mark. In Masterpiece at para 64, the Supreme Court
stated that, “[w]hile the first word may, for purposes of
distinctiveness, be the most important in some cases, I think a preferable
approach is to first consider whether there is an aspect of the trade-mark that
is particularly striking or unique.”
[48]
In my view, both words of “URBAN
PLANET” are striking. I do not think that the word “URBAN” dominates “PLANET”,
or vice versa. Both words
together give the Respondent’s mark its uniqueness or flavour, thus invoking an
image of a large city or urban area sprawling over an entire planet or world. In
contrast, the word “PLANET” in the Applicant’s
mark is not modified by any adjective, thus invoking an image of space, the
earth or some other planet in the universe. These images are different and in
my mind suggestive of different styles of clothing. Admittedly, the sound of
the two marks is somewhat similar, but only in so far as they are both anchored
by the same noun, “planet”.
[49]
Other surrounding circumstances – The Applicant
asks the Court to draw an adverse inference from the absence of any actual
confusion between its mark and the Respondent’s mark. In Mattel at para
55, the Supreme Court said that such an inference may be drawn in circumstances
where evidence of actual confusion “would readily be
available if the allegation of likely confusion was justified”.
[50]
In this case it is appropriate to make such an
adverse inference. The evidence shows that the marks have co-existed in Canada for almost their entire histories. The parties have a comparable number of retail
outlets that overlap geographically; the Respondent had 86 stores in 2009,
while the Applicant has about 50 boutiques in 2014. Furthermore, there is no
evidence that any consumer in the marketplace has ever been confused between
the Applicant’s services and wares and those of the Respondent or any third
parties. Therefore, in the absence of any evidence that any actual consumer has
been confused by the “PLANET” mark, I infer that a
casual consumer would not be so confused.
[51]
The Applicant also argued that it is relevant
that its original mark was applied for in 1989 and registered in 1991, several
years before the Respondent began using its “URBAN
PLANET” mark. The fact that the Respondent received its mark in 2005
suggests, according to the Applicant, that the Registrar did not consider the
marks to be confusing at that time and they should not be found confusing now.
Previous findings of the Registrar can be a relevant surrounding circumstance,
although they do not bind the Board or this Court (Masterpiece at para
112).
[52]
In view of the foregoing, I am convinced that a
casual consumer somewhat in a hurry would not likely infer that the wares and services
provided under the “PLANET” mark are supplied or performed
by the same person who uses the “URBAN PLANET”
mark. The two marks are not confusing, and, hence, the Respondent’s grounds of
opposition based on paragraph 12(1)(d) and section 16(1) of the Act
fail.
D.
Is the “PLANET” mark distinctive?
[53]
Paragraph 38(2)(d) of the Act provides that a
trade-mark can be opposed on the ground that it is not distinctive. Section 2
of the Act defines “distinctive” as follows:
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2. In this Act,
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2. Les définitions qui suivent s’appliquent à la présente loi.
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…
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[…]
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“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;
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« distinctive »
Relativement à une marque de commerce, celle qui distingue véritablement les
marchandises 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.
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[54]
Non-distinctiveness is assessed as of the date
the statement of opposition was filed (see: Metro-Goldwyn-Mayer Inc v
Stargate Connections Inc, 2004 FC 1185 at para 25, 34 CPR (4th) 317). In
this case, the Respondent’s first Statement of Opposition was filed on June 30, 2011.
[55]
In its written submissions to the Board, the Respondent
argued that, since Planet Fashions Limited had owned the mark for 10 years
before assigning it to Jacques Vert PLC (the predecessor in name to the
Applicant), the mark was not distinctive of the Applicant but, rather,
distinctive of Planet Fashions Limited. The Board, however, correctly dismissed
this argument on the basis that the Applicant’s application had been properly
amended to include Planet Fashions Limited as a predecessor-in-title to the
Applicant.
[56]
The only reason that the Board found “PLANET” non-distinctive was because it determined that “PLANET” was confusing with “URBAN
PLANET”. Given the new evidence now before the Court and my reasons
above, I find that the Applicant’s mark is distinctive and reject this ground
of opposition raised by the Respondent.
E.
Is it necessary to assess the grounds of
opposition dismissed by the Board?
[57]
I agree with the Applicant that, since no
counter-appeal has been filed and the Respondent did not participate in the
appeal, the paragraph 30(b) grounds of opposition which were dismissed by the
Board should not be disturbed by this Court.
VI.
Conclusion
[58]
Although the Applicant initially asked for its
costs in its Notice of Application, no such request was made by the Applicant
at the hearing of this matter and none were requested in its Memorandum of Fact
and Law. Counsel for the Applicant stated she would be satisfied with an order
from the Court along the lines of paragraph 102 of the Applicant’s Memorandum
(where, incidentally, there is no request for costs).
[59]
For the reasons stated above, therefore, the
appeal is allowed and the extension of the Applicant’s trade-mark TMA 387,969 requested by the Applicant in application serial no. 641,981(1) should be
allowed. There will be no order as to costs.