TRADE-MARK PRACTICE IN CANADAA PRACTICAL GUIDE

Trade-mark Practice in Canada: A Practical Guide

Theresa M. Corneau (ed.)

2011 Borden Ladner Gervais LLP Canada

Trade-mark Practice in Canada: A Practical Guide

Copyright © 2011 Borden Ladner Gervais LLP

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written permission of the authors.

Published in 2011 by Borden Ladner Gervais LLPISBN 978-0-9730750-5-2

The information in this publication is of a general nature, and should not be regarded as legal, accounting, or other professional advice. Intellectual Property law is complex and developing rapidly, and must be considered in the circumstances of each individual transaction, case, or issue. If legal or other expert advice or assistance is required, the services of a competent professional should be sought.

Calgary | Montréal | Ottawa | Toronto | Vancouver | Waterloo Region Borden Ladner Gervais LLP is an Ontario Limited Liability Partnership. Lawyers | Patent & Trade-mark Agents

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CONTENTS

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixAcknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiAuthors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii

CHAPTER 1 General Trade-mark Practice in Canada . . . . . . . . . . . . . . . . . 1

A. The Trade-marks Act: Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. What Is a Trade-mark? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Types of Trade-marks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33. Does a Trade-mark Need to Be Registered? . . . . . . . . . . . . . . . . . . . . 4

CHAPTER 2 Procedural Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7A. Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7B. Basis for Filing Applications in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1. Proposed Use in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92. Use in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93. Registration and Use in a Convention Country . . . . . . . . . . . . . . . . . . 104. Having Made Known the Mark in Canada . . . . . . . . . . . . . . . . . . . . . 105. Multiple Filing Bases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

C. Examination/Prosecution Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10D. Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11E. Advertisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11F. Opposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11G. Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12H. Registration and Renewal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13I. Post-Registration Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

1. Registration Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132. Trade-mark Enforcement/Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . 13

J. Domain Names/Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CHAPTER 3 Specific Requirements for Canada . . . . . . . . . . . . . . . . . . . . . . . 15

A. Filing Basis of a Trade-mark Application . . . . . . . . . . . . . . . . . . . . . . . . . 151. Use in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152. Proposed Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183. Application/Registration and Use Abroad . . . . . . . . . . . . . . . . . . . . . . 194. Making Known . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

B. Amendment of the Filing Basis of the Application . . . . . . . . . . . . . . . . . . 221. Amendment to the Date of First Use or Making Known . . . . . . . . . . . 222. Amendment from Actual Use or Made Known to Proposed Use . . . . 223. Amendment from Proposed Use to Use . . . . . . . . . . . . . . . . . . . . . . . 23

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4. Amendment of an Application Based on Application/Registration and Use Abroad . . . . . . . . . . . . . . . . . . . . . . 23

5. Multiple Bases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23C. Priority Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23D. Documents Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1. Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242. CertifiedCopyofPriorityDocument . . . . . . . . . . . . . . . . . . . . . . . . . 243. Registration Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

E. SpecificStatementofWaresandServices . . . . . . . . . . . . . . . . . . . . . . . . . 25F. Drawings/Specimens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26G. Registrability Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

1. Name or Surname of an Individual . . . . . . . . . . . . . . . . . . . . . . . . . . . 282. Clearly Descriptive or Deceptively Misdescriptive . . . . . . . . . . . . . . . 303. Name of the Wares or Services in Any Language . . . . . . . . . . . . . . . . 324. Confusion with a Registered Trade-mark . . . . . . . . . . . . . . . . . . . . . . 325. Prohibited Marks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

H. Assignment and Change of Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351. Assignment or Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352. Change of Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

I. Licensing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371. Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372. Control Over the Quality and Character of the Wares/Services . . . . . 383. Public Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384. Right to Take Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

J. French Language Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391. General Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392. Trade-mark Exception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393. Sanctions and Recourses Under the Charter . . . . . . . . . . . . . . . . . . . . 41

CHAPTER 4 Special Trade-mark Applications in Canada . . . . . . . . . . . . . . 43

A. CertificationMarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431. WhatIsaCertificationMark? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432. WhoMayRegisteraCertificationMark? . . . . . . . . . . . . . . . . . . . . . . 443. WhatAretheCriteriaforRegistrationofaCertificationMark? . . . . . 444. WhatConstitutes“Use”ofaCertificationMark? . . . . . . . . . . . . . . . . 445. HowIstheRegistrationofaCertificationMarkMaintained? . . . . . . 44

B. Section9OfficialMarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451. An Overview of Section 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452. WhoMaySeekAdvertisementofanOfficialMark? . . . . . . . . . . . . . 453. Evidence of Use Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464. Scope of Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475. Obtaining Consent from Public Authorities . . . . . . . . . . . . . . . . . . . . 476. MaintaininganOfficialMark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477. TheFutureoftheOfficialMarkinCanada . . . . . . . . . . . . . . . . . . . . . 48

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C. Distinguishing Guises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481. What Is a Distinguishing Guise? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482. Content of Distinguishing Guise Applications . . . . . . . . . . . . . . . . . . 483. Acquired Distinctiveness by Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494. How Is the Registration of a Distinguishing Guise Maintained? . . . . 495. Alternative Marks (Smell, Colour, Sound) . . . . . . . . . . . . . . . . . . . . . 50

D. Amendments to Registrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501. Elements of a Registration or Advertisement

That May Be Amended After Registration . . . . . . . . . . . . . . . . . . . . . 502. AmendingaTrade-mark,CertificationMark,or

Distinguishing Guise Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503. AmendinganAdvertisedOfficialMark . . . . . . . . . . . . . . . . . . . . . . . 51

E. Extensions to Registrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511. Expanding the Scope of Wares and Services . . . . . . . . . . . . . . . . . . . . 51

F. Geographical Indications of Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521. Registration of Marks Containing Geographical Indications

of the Origins of Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522. Protection of Geographical Indications of Origin . . . . . . . . . . . . . . . . 53

G. Newfoundland and Labrador Registrations . . . . . . . . . . . . . . . . . . . . . . . . 541. Historical Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542. Current Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553. Scope of Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554. Effect of Newfoundland Trade-marks on

Trade-marks Registered Under the Trade-marks Act . . . . . . . . . . . . . 56

CHAPTER 5 Opposition Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

A. What Is an Opposition? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57B. Time Limit to Oppose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58C. Preliminary Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59D. Statement of Opposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59E. Grounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60F. Grounds of Opposition: Section 38(2)(a) . . . . . . . . . . . . . . . . . . . . . . . . . 61G. Grounds of Opposition: Section 38(2)(b) . . . . . . . . . . . . . . . . . . . . . . . . . 62H. Grounds of Opposition: Section 38(2)(c) . . . . . . . . . . . . . . . . . . . . . . . . . 63I. Grounds of Opposition: Section 38(2)(d) . . . . . . . . . . . . . . . . . . . . . . . . . 63K. Counterstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64L. Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64M. Burden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66N. Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66O. Material Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66P. Written Argument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Q. Oral Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67R. Decision and Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

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Appendix A: Stages in an Opposition and Deadlines for Trade-marks Advertised After October 1, 2007 . . . . . . . . . . . . . . . . . . . . . 70

Appendix B: Material and Relevant Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

CHAPTER 6 Summary Cancellation Proceedings . . . . . . . . . . . . . . . . . . . . . 75

A. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751. Purpose of Section 45 of the Trade-marks Act . . . . . . . . . . . . . . . . . . 752. Use of the Registered Trade-mark . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

B. Initiation of Summary Cancellation Proceedings . . . . . . . . . . . . . . . . . . . 781. Filing a Request to Issue a Section 45 Notice . . . . . . . . . . . . . . . . . . . 78

C. Responses to a Section 45 Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 791. Default: Failure to File Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792. AffidavitEvidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793. Withdrawing from Section 45 Proceedings . . . . . . . . . . . . . . . . . . . . . 83

D. Written Arguments and Oral Hearings Before the Trade-marks Opposition Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831. Written Arguments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832. Oral Hearings Before the Trade-marks Opposition Board . . . . . . . . . 843. Decision of the Trade-marks Opposition Board . . . . . . . . . . . . . . . . . 85

E. Statutory Appeals and Judicial Reviews to the Federal Court . . . . . . . . . . 861. Statutory Appeal Versus Judicial Review . . . . . . . . . . . . . . . . . . . . . . 862. Procedure for Statutory Appeals Made Pursuant to

Section 56 of the Trade-marks Act Before the Federal Court . . . . . . . 873. Evidence on Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 874. Standard of Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 885. Appeals from Decisions of the Federal Court . . . . . . . . . . . . . . . . . . . 896. Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

F. New Practice Notice Governing Cancellation Proceedings . . . . . . . . . . . 891. Extensions of Time to File Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . 90

G. Comparison with Expungement Proceedings Before the Federal Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 911. Basis and Grounds for Expungement Proceedings

Before the Federal Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912. Relief and Expungement Proceedings Before the Federal Court . . . . 92

CHAPTER 7 Trade-mark Infringement and Passing Off . . . . . . . . . . . . . . . 95

A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951. Statutory Causes of Action Affecting Trade-mark Registrations . . . . . 952. Statutory Passing Off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1023. Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1054. Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

B. Interim Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1061. Interlocutory Injunctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1062. Orders for Interim Custody . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

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3. Anton Piller Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1104. Mareva Injunctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

C. Enforcement of Trade-mark Rights by Customs . . . . . . . . . . . . . . . . . . . . 1141. Current Situation in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1142. Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

CHAPTER 8 Due Diligence Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

A. Review of the Trade-mark Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1191. Identify the Trade-marks Being Acquired . . . . . . . . . . . . . . . . . . . . . . 1192. Verify the Status of Trade-marks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1203. Verify Ownership for Transfer of Title . . . . . . . . . . . . . . . . . . . . . . . . 1204. Identify Interests of Third Parties and Adverse Claims . . . . . . . . . . . . 1215. Assess the Validity of Trade-marks . . . . . . . . . . . . . . . . . . . . . . . . . . . 1226. Assess the Value of the Trade-marks . . . . . . . . . . . . . . . . . . . . . . . . . . 122

B. Tax Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1231. Vendor’s Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1232. Purchaser’s Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

C. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

CHAPTER 9 Domain Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1251. What Is a Domain Name? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1252. What Are the Components of a Domain Name? . . . . . . . . . . . . . . . . . 1253. How Is a Domain Name Registered? . . . . . . . . . . . . . . . . . . . . . . . . . . 1254. Who Can Register a Domain Name? . . . . . . . . . . . . . . . . . . . . . . . . . . 125

B. . CA Domain Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1261. Who Administers the .ca Domain Name Registry? . . . . . . . . . . . . . . . 1262. Who Can Register a .ca Domain Name? . . . . . . . . . . . . . . . . . . . . . . . 1263. How Are .ca Domain Names Registered and Renewed? . . . . . . . . . . . 1264. What Are a Registrant’s Obligations? . . . . . . . . . . . . . . . . . . . . . . . . . 1265. What Information Is Disclosed About a Registrant? . . . . . . . . . . . . . . 127

C. Domain Name Disputes: Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1271. What Rules Govern the Arbitration of Domain Name Disputes? . . . . 1272. What Must a Complainant Prove in a UDRP Proceeding? . . . . . . . . . 1273. What Must a Complainant Prove in a CDRP Proceeding? . . . . . . . . . 1284. Is Arbitration Under the UDRP or CDRP Mandatory? . . . . . . . . . . . . 1295. WhatAretheBenefitsandLimitationsofArbitration

Under the UDRP and the CDRP? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129D. Resolving Domain Name Disputes: Litigation . . . . . . . . . . . . . . . . . . . . . 130

1. What Disputes Can Be Resolved Through Litigation? . . . . . . . . . . . . 1302. WhatAretheBenefitsandLimitationsofResolving

Domain Name Disputes Through Litigation? . . . . . . . . . . . . . . . . . . . 130E. Guidelines for Protecting Trade-marks on the Internet . . . . . . . . . . . . . . . 130

INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

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PREFACE

Borden Ladner Gervais LLP (BLG) has for many years acted as Canadian counsel to several national and multinational companies and worked with colleagues in numerousforeignlawfirmstoprovideadviceontrade-marklawandpracticeinthis country. We have frequently been requested by clients to respond to inquiries concerning the trade-mark application process and practice in Canada and primarily the differences between the Canadian and US practice.

Chapters 1 through 3 summarize general trade-mark practice in Canada, including theproceduralandspecificrequirementsforfilingtrade-markapplications.Chapter3 highlights some of the unique aspects of these requirements and the relevant case lawrelatedtoprohibitedmarks,includingofficialmarksandgeographicalindications of origin. The chapter also discusses French language requirements and exceptions, as well as sanctions and recourses under the Charter of the French Language. Chapter 4 focuses on special trade-marks in Canada, including certificationmarks,distinguishingguises,andrelatedissues.Chapters5through7focus on adversarial and/or contentious proceedings such as oppositions, cancellation, passing off, and infringement, and discuss the relevant case law. Finally, chapters 8 and 9 provide an overview of issues related to due diligence and domain names.

We hope this new publication provides guidance and serves to highlight the nuances of the Canadian trade-mark application process and related practice.

We intend to publish subsequent editions of Trade-mark Practice in Canada: A Practical Guide, and we would appreciate receiving suggestions about possible additions or changes for revised editions.

April 2011

Tracy CorneauBorden Ladner Gervais LLP, OttawaT 613.787.3564 tcorneau@blg.com

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ACKNOWLEDGMENT

I gratefully acknowledge the contributions of my colleagues to this book. Their significant undertaking to commit the time necessary to research, write, and review chapters is deeply appreciated.

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AUTHORSGeneviève BergeronisapartnerintheMontréaloffice. Her practice focuses on all aspects of intellectual property and information technology. She has an extensive practice in trade-mark law that includes search opinions, clearances, preparation, and prosecution of trade-mark applications, oppositions and cancellation proceedings, property rights transfers, and negotiation of trade-mark licence agreements. She has expertise in the drafting of distribution agreements and subcontracting agreements involving all aspects of IP and IT law for clients in all types of business. She also provides advice in website-rel ated matters such as the drafting of appropriate disclaimers, terms and conditions, online agreements, copyright and trade-mark use, and privacy policy as well as with respect to the application of the Charter of the French Language in the IP and IT sectors. Geneviève is a member of the Canadian Bar Association, INTA, IPIC, and IT.Can.

Theresa M. CorneauisapartnerintheOttawaoffice. She has extensive experience in all areas of Canadian and international trade-mark practice including searches, preparation and prosecution of trade-mark applications, opposition proceedings, trade-mark licensing, and property rights transfers. Her practice also involves the drafting and filingofcopyrightmatters,thedraftingoflicenceagreements,and the preparation and presentation of in-house trade-mark seminars to clients. She has been featured in numerous IP publications and has spent several years as a lecturer, speaker, and tutorial instructor for McGill University and IPIC. She has been a committee member on various trade-mark topics for IPIC, INTA, ECTA, and AIPPI.

Bradley J. Freedman is a partner and the Technology Law PracticeLeaderintheVancouverOffice.Heisamember and former director of the Information Technology Law Association of Canada (IT.Can), and a member of the Canadian Bar Association, the American Bar Association, and the International Technology Law Association. His practice focuses on technology, intellectual property, the Internet, electronic commerce, and related matters. He is ranked as a leading trade-mark professional in the World

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Trademark Review for 2011 and is included in the 2011 edition of The Best Lawyers in Canada and the 2010 Canadian Legal Lexpert Directory. Bradley is a domain name dispute arbitrator for the World Intellectual Property Organization and the B.C. International Commercial Arbitration Centre.

Anne LauisanassociateintheVancouveroffice.Anne has experience in all areas of Canadian trade-mark practice including searching, preparation and prosecution of trade-mark applications, opposition proceedings, licensing, and property rights transfers. She also has experience managing internationaltrade-markportfoliosandinternationalfilings.Anne is a member of the Law Society of British Columbia, the Patent and Trademark Association of British Columbia, and the Intellectual Property Institute of Canada.

Kathleen LemieuxisapartnerintheOttawaofficeand is fully bilingual, practising in both English and French. Kathleen assists clients with the development, administration, and protection of intellectual property rights, including, in particular, trade-marks and copyrights. She has a wide range of experience in advising clients in trade-mark opposition and cancellation proceedings, and in assisting with litigation involving intellectual property rights. Kathleen also provides advice on transactions involving intellectual property, such as licensing agreements. She is the editor of the BLG IP newsletter and is involved in various committees for IPIC, INTA, CBA, and AIPLA. She is also a member of the Canadian Bar Association and the County of Carleton Law Association.

LuAnne Morrow is a lawyer and trade-mark agent in the Calgaryoffice.ShepractisesIPlawparticularlyintheareasoftrade-marks and copyright, entertainment, and advertising/sponsorship law for clients in a wide variety of industries. Her other practice areas include patent licensing, software licensing and development, and Internet and computer law. She was selected by her peers for inclusion in the 2010 and 2011 editions of The Best Lawyers in Canada for intellectual property law. LuAnne has been a member of the Alberta Bar

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Association since 2002 and is a member Canadian Bar Association and INTA. She is an associate member of the Intellectual Property Institute of Canada, and Past Chair of the Canadian Bar Association—Intellectual Property and Technology Southern Alberta Subsection.

Hafeez RupaniisanassociateintheOttawaoffice.Hispractice focuses on the resolution of trade-mark, copyright, domain name, and related commercial disputes before all levels of court. Hafeez has represented clients in trade-mark infringement, passing off, and expungement proceedings before the Federal Court; trade-mark opposition and cancellation proceedings before the Trade-marks Opposition Board; tariff proceedings before the Copyright Board of Canada; and subsequent judicial review proceedings before the Federal Court of Appeal. He assists clients in the acquisition, licensing, and enforcement of intellectual property rights in Canada and around the world, and in advising clients on the application of intellectual property rights in employment and online contexts, including social media. He is a member of the Canadian Bar Association, Ontario Bar Association, IPIC, INTA, Advocates Society, and CCLA.

Kathryn E. SzymczykisanassociateintheOttawaoffice and is conversant in Russian. Her practice focuses on all aspects of trade-mark law including prosecution, opposition, licensing, and enforcement. Kathryn also handles the prosecution of industrial designs and provides advice on domain name and trade-mark issues on the Internet. She was theHeadoftheRussianRepresentativeOfficeofaCanadianfirmfrom2000to2003andthenadirectoroverseeinganumberofofficesforanEasternEuropeanIPfirmintheBalkans from 2005 to 2008. She is familiar with the European Community trade-mark system and has extensive experience dealing with international registrations made through the Madrid System. Kathryn was recognized as “highly recommended” in intellectual property law in Russia by Global Counsel 3000 and ranked as a leading trade-mark professional in the World Trademark Review for 2011. She is a member of the Canadian Bar Association, IPIC, CCLA, the North American Anti- Counterfeiting Subcommittee of INTA, and the Vice Chair of the MARQUES Brands and Marketing Committee.

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Jessica Yeungisatrade-markagentintheVancouverofficeandisfluentinEnglish,Cantonese,andMandarin.Jessicahasexperience in all areas of Canadian trade-mark practice including searches, preparation and prosecution of trade-mark applications, opposition proceedings, trade-mark licensing, and renewals. She is a member of the Patent and Trademark Association of British Columbia.

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CHAPTER 1

GENERAL TRADE-MARK PRACTICE IN CANADA

In Canada, the law related to trade-marks and unfair competition, including passing off, is covered by both federal statute and provincial common law. The current federal statute, the Trade-marks Act,1whichhascodifiedmuchofthecommon law with respect to trade-marks, creates a regulatory system that encompasses registered as well as unregistered trade-marks.2 A foundational purpose of the Act and the common law is to create a regulatory system that ensures that commercial considerations and the rights acquired by way of trade-mark use and registration are protected, while contemporaneously safeguarding the public from any confusion, misrepresentations, or deceit with respect to the origin and quality of goods and services.

Trade-mark protection and enforcement is practised by way of both regulatory and non-regulatory proceedings. Regulatory proceedings consist of quasi-administrative/quasi-judicial trade-mark opposition and cancellation proceedings, which generally serve to prevent the registration of a trade-mark and expunge the registrations of unused trade-marks, respectively. Non-regulatory proceedings are court proceedings that, in general, deal with trade-mark infringement, depreciation of goodwill, and the expungement of trade-mark registrations and with common law rights, including those associated with unfair competition and passing off.

The Supreme Court of Canada in Mattel Inc. v. 3894207 Canada Inc.3 distilled the purpose and basis of trade-marks and trade-mark law to the following:

Trade-marks are something of an anomaly in intellectual property law. Unlike the patent owner or the copyright owner, the owner of a trade-mark is not required to providethepublicwithsomenovelbenefitinexchangeforthemonopoly. Here, the trade-mark [BARBIE] is not even an invented word like “Kodak” or “Kleenex.” The appellant has merely appropriated a common child’s diminutive for Barbara. By contrast, a patentee must invent something new and useful. To obtain copyright, a person must add some expressive work to the human repertoire. In each case, the public through Parliament has decided it is worth encouraging such inventions and fostering new expression in exchange for a

1 Trade-marks Act, R.S.C. 1985, c. T-13 [“the Act”]. 2 The most salient distinction between registered and unregistered trade-marks

is that more extensive rights are afforded to an owner of a registered trade-mark. 3 Mattel, Inc. v. 3894207 Canada Inc., 2006 SCC 22 at paras. 21-22.

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statutory monopoly (i.e. preventing anyone else from practising the invention or exploiting the copyrighted expression without permission). The trade-mark owner, by contrast, may simply have used a common name as its “mark” to differentiate its wares from those of its competitors. Its claim to monopoly rests not on conferringabenefitonthepublicinthesenseofpatentsorcopyrightsbutonserving an important public interest in assuring consumers that they are buying from the source from whom they think they are buying and receiving the quality which they associate with that particular trade-mark. Trade-marks thus operate as a kind of shortcut to get consumers to where they want to go, and in that way perform a key function in a market economy. Trade-mark law rests on principles of fair dealing. It is sometimes said to hold the balance between free competition and fair competition.

Fairness, of course, requires consideration of the interest of the public and other merchantsandthebenefitsofopencompetitionaswellastheinterestofthe trade-mark owner in protecting its investment in the mark. Care must be taken not to create a zone of exclusivity and protection that overshoots the purpose of trade-mark law.

A. THE TRADE-MARKS ACT: OVERVIEW

The Act was enacted in 1954 and arose from the dissatisfaction with its preceding legislation — namely, the Unfair Competition Actof1932andCanada’sfirst“Dominion Act” dealing with trade-marks, the Trade-mark and Design Act of 1868. The Trade-mark and Design Act as well as the Unfair Competition Act were consideredtoonarrowinscope,difficulttointerpret,andcontradictory.

1. What Is a Trade-mark?

Undersection2oftheAct,atrade-markisdefinedasfollows:

“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) acertificationmark,

(c) a distinguishing guise, or

(d) a proposed trade mark.

WhilethetermisnotdefinedintheAct,a“mark”mustbesomethingthatcan be represented visually and, in association with wares at least, use of a verbal description is not use of a trade-mark within the meaning of the Act.4 As a result, sounds, scents, and holograms, for example, will not currentlymeetthedefinitionof a “trade-mark” in Canada. 4 Playboy Enterprises, Inc. v. Germain (1978), 43 C.P.R. (2d) 271 (F.C.A.).

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2. Types of Trade-marks

InCanada,theActenumeratesfourdefinitionsofatrade-mark.Thesedefinitionspermit the registration of the following trade-mark types.

a. Word Marks

A word mark is represented in block letter format and generally affords the owner of a block letter trade-mark registration the broadest protection. In particular, a block letter word mark is considered to encompass acceptable use of the trade-mark whether or not the mark is used in a particular font, colour, or design. By contrast, if registration is sought and/or obtained for a particular design or font and the mark is not used in Canada in such manner, the registration is subject to cancellation on the basis of non-use.5 As an extension to simple word marks, slogans may also be registered as trade-marks.6

b. Design Trade-marks (Logos)

A design, alone or in conjunction with words, may be registered as a trade-mark. Notably, a composite mark (a trade-mark comprising both design and word elements), when sounded, is not registrable pursuant to section 12(1)(b) of the Act if it contains word elements that are:

(1) clearly descriptive or deceptively misdescriptive in the English or French language of the character or quality of the wares or services in association with which it is used or proposed to be used or of the conditions of or the persons employed in their production or of their place of origin; and also

(2) not the dominant feature of the mark.

c. Special Trade-marks

i. Distinguishing Guises

In Canada, an owner may also secure rights in trade-marks referred to as “distinguishing guises.” A distinguishing guise is a trade-mark used to identify the unique shape of wares or its package/mode of wrapping. It is necessary to provide evidence of acquired distinctiveness of these types of marks as of the date that an applicationforregistrationforthedistinguishingguisewasfiled.Asaresult,anapplication to register a distinguishing guise can only be based on use in Canada.

5 For more information related to cancellation and expungement proceedings, please see Chapter 6.

6 Althoughprotectable,suchmarksareoftenhighlysuggestiveandmaybemoredifficultto protect than a traditional trade-mark.

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ii. Certification Marks

Atrade-markmayalsobeacertificationmark,whichisusedtoidentifywaresand/orservicesofadefinedstandard.Itisownedbyoneentitybutlicensedtootherstoidentifywaresand/orservicesthatmeetthedefinedrequirements.Thepurposeofsuch standards is to distinguish and indicate a consistency with respect to:

• thecharacterorqualityofthewaresorservices,

• theworkingconditionsunderwhichthewareshavebeenmanufactured/produced or the services performed,

• theclassofpersonsbywhomthewareshavebeenproducedortheservicesperformed, or

• theoriginortheareawithinwhichthewareshavebeenmanufactured/produced or the services performed.

iii. Colours, Sounds, Smells, and Holographic Images

While it is possible to obtain a trade-mark registration in Canada for a colour, suchregistrationisusuallyconsideredweak,difficulttoprotect,andmayrequirethefilingofaffidavitevidenceofacquiredorsecondarymeaning.

TheCanadianTrade-marksOfficetakesthepositionthatsound,smell,andholographic images represented as trade-marks are not eligible for registration. The foregoing is based on the position that a trade-mark must be represented visually in order to be registrable. Although some applicants have attempted to assert rights primarily in the category of “sound” marks, most have as yet been unsuccessful. It is likely that the Courts may need to determine whether such marks are eligible for registration under the Act as well as the nature of any evidence or other guidelines or requirements for seeking protection of the same.

3. Does a Trade-mark Need to Be Registered?

In Canada, trade-mark rights may be acquired for both registered and unregistered trade-marks.Inparticular,atrade-markdoesnotneedtoberegisteredtobenefitfrom the protection and rights afforded under the Act and the common law. Notwithstanding the foregoing, a trade-mark registration provides several additionalbenefitsoverandabovethoseattachedtounregisteredtrade-marks,including providing:

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