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November Case Law – Enforcement of Foreign Judgments

There were no noteworthy Canadian cases in November that focused on specific trademark issues. However, the Supreme Court of Canada (“the SCC”) handed down a decision regarding the enforcement of foreign non-monetary judgments that will be of interest to trademark practitioners.

The case, Pro Swing Inc. v. Elta Golf Inc., arose out of a trademark dispute, but it was the contempt order that was at issue on appeal.  In 1998, Trident, a U.S. company, filed a complaint in Ohio for trademark infringement. Elta, an Ontario company, entered into a settlement agreement that was endorsed in a consent decree of the U.S. District Court. In 2002 Trident brought a motion that Elta had violated the consent decree and a contempt order was issued.

The SCC agreed with the Ontario Court of Appeal that the contempt order could not be enforced in Canada, primarily because it was quasi-criminal in nature. However, in doing so the SCC held that the traditional common law rule limiting the recognition and enforcement of foreign judgments to final money judgments should be changed – although cautiously. Thus, equitable orders from foreign courts, such as injunctions, may now be enforced.

The SCC outlined a number of factors to be taken into account: that the judgment being enforced be rendered by a court of competent jurisdiction and be final, and that as a matter of comity the domestic court not extend greater assistance to foreign litigants than it does to its own litigants.

With regards to injunctive relief the SCC recommended that its territorial scope must be specific and clear. With regards to trademark protection the SCC specifically noted that the Internet does not transform U.S. trademark protection into worldwide protection, although the SCC left open that the possibility that a party, by consent, might create such an extension.

Future case law will provide further clarity regarding the enforcement of foreign equitable orders in Canada and the extent to which Canadian courts may recognize, for example, injunctions regarding trademark rights. In the meantime, foreign litigants will want to carefully consider how a foreign court order is worded if the ultimate intention is enforcement in Canada.

Yes, Virginia, Santa Claus is Trademarked

We understood it to be well established (at least since 1897 and the New York Sun’s reply to Virginia’s letter) that there is indeed a Santa Claus.

Unfortunately, the Canadian Intellectual Property Office seems intent on ignoring this important fact. Paragraph 12(1)(a) of the Trade-marks Act specifically provides that a trademark is not registrable if it is “primarily merely the name or the surname of an individual who is living”.

However, our recent visit to the CIPO website reveals at least three registrations for SANTA CLAUS – for use in association with “soaps of all kinds”, “ribbons, bows, gift wrapping papers and paper tableware” and, of all things, “ornamental plants”. The existence of these registrations suggests that CIPO considers St. Nick to be a fictional character rather than a living person.

We are pleased to note that two other SANTA CLAUS trademark registrations have been expunged (for use in association with “ice cream” and “soaps, detergents and toilet preparations”) but interested to learn that Coca-Cola has gone so far as to trademark a picture of the jolly old elf.

Of course, it is now seven years since the USPTO created a stir by allowing one Stephen Bottomley (a Brit, no less) to register SANTA CLAUS on their database.

We’ll have to wait and see whether Santa Claus commences proceedings for the unauthorized use of his name and likeness. Of course, Santa could always move to Australia, where they have not yet gone so far as to register his entire name (although there is a SURFING SANTA and a SWINGING SANTA). But then again – Australia has no snow in December.

RIM Battles Samsung Over Use of BlackJack

Canadian based Research in Motion is suing Samsung over its use of the mark BlackJack in association with a recently launched smart phone device. The Samsung smart phone competes directly with RIM’s BlackBerry Pearl smart phone. In the lawsuit, filed in California, RIM argues that the BlackJack name will cause confusion with consumers who are familiar with the established BlackBerry brand, as well as constituting false designation of origin, unfair competition and trademark dilution.  Interestingly, both devices are offered on Cingular’s network in the U.S.

Apple Not Asserting Rights Over The Term Podcast?

According to the GlobalGeek Podcast, Apple Computer apparently doesn’t object to use of the term “podcast” if it’s used to generically describe podcasting services. At first blush, this might be interpreted as a bit of a departure from Apple’s recently aggressive stance in terms of all things “POD” and “IPOD”. On the other hand, Apple may just be differentiating between generic use of the term podcast and use of that term as part of a third party trade-mark.

Real Estate Developers Embracing Trademark Protection?

A review of recent Canadian trade-mark filings indicates that some real estate developers in Canada are choosing to protect as trade-marks, not only their company or business names, but also the marks they have chosen for individual developments. Reflecting a more conservative industry, these trade-marks are not as edgy or creative as some of the new wine industry trademarks. However, in a competitive marketplace, this may change as developers start to see the benefits of distinguishing their projects from those of the competition and targetting specific categories of brand-conscious prospective buyers.

Recent applications and registrations include,

OSCAR (Application No. 1293873)
SPIRE (Registration TMA591399)
THE VINE (Registration No. TMA668332)
THE LAUREATES (Registration No. TMA565184)
ROUGE (Application No. 1294465)
COCONUT GROVE (Application No. 1294937)
NEW TIMES SQUARE (Registration No. TMA590427)
SOPHIA (Registration No. TMA666909)
MODE (Registration No. TMA648830)
UNIVERSITY HEIGHTS (Registration No. TMA649239)
YALETOWN PARK (Registration No. TMA627657)

The time may yet come when not every Canadian city has a PARK PLACE and a BAY TOWERS, although some of the above marks continue the practice of developers using names that are the same or similar to names used by other developers, either previously in the same geographic market or in different geographic markets.

A developer’s business or corporate name normally has a shelf life that’s longer than any single development. In many cases the name of the developer is featured as much (or more prominently) in the marketing of each development than is the name of the development itself. Because of this, the protection of such corporate or business names is likely as or more important than the protection of marks for specific development projects, particularly where the marks for development projects are not distinctive.

As creative marketers begin to shake up the industry with more interesting and distinctive marks for specific projects, the need to protect these distinctive project marks will no doubt increase.

October Case Law: Successful Appeals

There were five Canadian trade-mark cases of note in October. Interestingly, in four of them the Federal Court allowed appeals from the Opposition Board and in three of those cases the appeal was allowed on the basis of new evidence allowed to be filed at the appeal stage.

City Optical Holdings Inc. v. The United States Shoe Corporation was an appeal from a decision of the Opposition Board which refused registration of THE INVINCIBLES for use in association with eyeglass lenses and related wares on the basis that it was confusing with the opponent’s mark, INVISIBLES for  ophthalmic (sic) lenses. The Applicant filed further evidence on appeal, as it was entitled to do. The Opponent chose not to contest the appeal. The Court allowed the appeal on the basis of the further evidence since there was no evidence of actual confusion and different channels of trade.

The appeal from the Registrar in Minolta-QMS, Inc. v. Tsai was also allowed, again on the basis of new evidence filed on appeal. Minolta’s opposition to the registration of MAGICOLOR in association with electrical wire, namely shielded, unshielded and insulated electric wire, cable and cord was dismissed by the Opposition Board. Minolta had not filed evidence in chief and the Board ruled that much of the evidence filed in reply by Minolta was not proper reply evidence. On the basis of the new evidence filed on appeal, it was clear that as of the date Minolta filed its opposition the MAGICOLOR mark was not distinctive, Minolta having had previous use.

In Fairweather Ltd. v. Registrar of Trade-marks, the Court, also on the basis of new evidence allowed on appeal, set aside the Registrar’s decision under section 45 expunging Fairweather Ltd.’s mark TARGET APPAREL. Fairweather had acquired the mark following the receivership of another company and the Opposition Board was not satisfied that the mark had been used or that there was a serious intention to use the mark. The new evidence on appeal demonstrated that Fairweather had taken concrete steps, including the development of artwork by employees of a related company. There were also actual sales, although these were subsequent to the issuance of the section 45 Notice.

In Smart & Biggar v. Jarawan the Court allowed the appeal from the Opposition Board’s decision that the Registrant of the mark, AL-RIFAI ROASTERY (MAHMASAT) had demonstrated use in the last three years in accordance with section 45 of the Trade-marks Act. The Court noted that the standard of review was one of reasonableness.  Given the vague and imprecise Affidavit filed by the Registrant, it was not reasonable for the Hearing Officer to have concluded there was use.

Petrillo v. Allmax Nutrition Inc. was a motion for summary judgement. The Court concluded that no genuine issue for trial existed against the personal defendant Mr. Kichuk for the alleged infringement of the ISO-FLEX trade-mark. The Court examined the law regarding the personal liability of directors and officers and the principles governing summary judgement, concluding there was no evidence to support the assertions in the Statement of Claim that Mr. Kichuk incorporated his companies or pursued a course of conduct through the companies intended to infringe the Plaintiff’s trade-mark.

900,000th Mark Registered Under International Trademark System

A recent press release from WIPO (the World Intellectual Property Organization) heralds the 900,000th registration under the International Trademark System, commonly known as the Madrid Protocol or system.

The Madrid system allows an applicant from a signatory country to potentially obtain protection for its mark in up to 77 member countries and the European Union by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs). An International Registration obtained through the Madrid system can be maintained and renewed through a single procedure at WIPO.

The system is designed to provide a cost-effective and efficient way for trademark owners to secure protection for their marks in multiple member countries through the filing of one application. While there are debates about how well the Madrid system attains that goal, it certainly gives applicants from member countries another powerful option for international trade-mark protection strategies.

Unfortunately for many Canadian trademark owners (namely those without a presence in a Madrid protocol signatory country), this option is not available to them because Canada, alone among most developed (and many developing) countries is not a signatory to the Madrid Protocol, nor is it likely to be for at least several years. The recent accession of both the U.S. and the EU to the Madrid system has awoken the Canadian Intellectual Property Office (“CIPO”) to the need for Canada to seriously consider joining, but the process is moving very slowly. In 2002, CIPO published an analysis of the issues that need to be addressed in order for Canada to acede to the Madrid Protocol and in 2005 CIPO solicited comments from Trade-mark professionals as to the proposed modernization of Canadian Trade-mark law, including adherence to Madrid. The issue has gained little public attention and given the other priorities of the minority governments in Canada of the past several years, it’s likely to languish for several more years.