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A-465-77
Registrar of Trade Marks (Appellant)
v.
Ugine Aciers (Respondent)
Court of Appeal, Pratte and Le Dain JJ. and Hyde D.J.—Montreal, June 8 and 9, 1978.
Trade marks — Registration — Registrar's decision refus ing to register mark because of confusion with registered mark owned by another firm in association with identical wares, reversed by Trial Division — Respondent and owner of the registered trade mark owned by same conglomerate — Wheth er or not Trial Division erred in reversing Registrar's decision — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 15, 36(1).
This is an appeal from a judgment of the Trial Division quashing the decision of the Registrar of Trade Marks refusing respondent's application for the registration of the trade mark UGIPLUS. The Registrar considered the mark unregistrable because it was confusing with the trade mark UGINOX, owned by another firm and used in association with identical wares. Respondent and the owner of the mark UGINOX were owned by the same financial interests.
Held, the appeal is allowed. None of the reasons the Trial Judge gave in support of his decision stands up to scrutiny. If the judgment is interpreted as stating that the trade mark UGIPLUS is registrable under section 15, the judgment is based on a manifest error, since UGIPLUS and UGINOX do not belong to the same owner. The testimony of one witness heard by the Judge does not place him in a better position than the Registrar to decide the issue since this testimony does not contain any thing relevant that was not communicated to the Registrar. Further, that testimony cannot lead to the conclusion that the use of trade marks beginning with the prefix uGI had never been confusing. That other trade marks comprising the prefix uGI were registered in circumstances and in association with products not specified, is a consideration without relevance. The Registrar's decision is based on a correct interpretation of the Act: the trade mark was not registrable because it was confusing with the trade mark UGINOX, which had been regis tered by another company, controlled by the same financial interests as respondent, in association with identical wares.
APPEAL. COUNSEL:
J. M. Aubry for appellant. H. Richard for respondent.
SOLICITORS:
Deputy Attorney General of Canada for appellant.
Léger, Robic, Rouleau & Richard, Montreal, for respondent.
The following is the English version of the reasons for judgment delivered orally by
PRATTE J.: This is an appeal from a judgment of the Trial Division R1978] 1978] 1 F.C. 626] quashing the decision made by the Registrar of Trade Marks, under section 36(1) of the Trade Marks Act, R.S.C. 1970, c. T-10, refusing the application for the registration of the trade mark UGIPLUS that had been submitted to him by respondent.
Respondent had applied to register this trade mark in association with the following products:
Unrefined and semi-refined common metals and their alloys, anchors, anvils, bells, laminated and cast building materials, rails and other metal materials for railways, non-electric metal cables and wires, locks, metal pipes, safes and safe-deposit boxes, steel ingots, horseshoes, nails and screws and other non-precious metal products not included in other classes.
The Registrar refused this application on the ground that the trade mark was not registrable because it was "confusing with a registered trade mark", the trade mark UGINOX, which had been registered by another company, controlled by the same financial interests as respondent, in associa tion with products described as follows:
Unrefined and semi-refined common metals and their alloys; stainless steels.
In the opinion of the Registrar, since each of the two trade marks contained the prefix UGI and was used in association with identical wares, it fol lowed, under the terms of section 6(2), that the use of these two trade marks "in the same area would be likely to lead to the inference that the wares .. . associated with such trade marks are manufac tured, sold ... by the same person". The Registrar was supported in his opinion by the fact that respondent belonged to a large group of companies (controlled directly or indirectly by Pechiney- Ugine-Kuhlmann) which were all using trade marks containing the prefix UGI, with the result that, as counsel for the respondent had written to
the Registrar, "The public associates all these trade marks with the French firm Pechiney Ugine Kuhlmann ...".
This decision by the Registrar was quashed by the judgment that is the subject of this appeal.
In making the decision on appeal, the Trial Division relied solely on the Registrar's record and on the testimony of one Mr. Messud, a representa tive of the Pechiney-Ugine-Kuhlmann group in Canada.
I have already summarized the essential facts disclosed by the Registrar's record. The Canadian representative of the Pechiney-Ugine-Kuhlmann group, who was heard as a witness by the Trial Judge, added little to this: he provided a more detailed description of the activities of the compa nies belonging to the group he represented, and stated, as the Trial Judge emphasized, that he had never heard that the use of trade marks having the same prefix uGI by the various companies in this group had been confusing.
The Trial Judge's reasons for quashing the Reg istrar's decision are difficult to follow. In his rea sons for judgment he first set out the applicable legislative provisions in full. He then described the organization of the Pechiney-Ugine-Kuhlmann group as follows [at pages 628-629]:
The group is an empire of over one hundred and fifty compa nies with, in fact and in substance, a single beneficial owner— the company which holds, directly or indirectly, all the shares in the subsidiaries, sub-subsidiaries and their subsidiaries. There is, in fact, only one owner and only one ultimate benefici ary, directly or indirectly.
The Judge then mentioned that section 15 (which allows confusing trade marks to be registered where they are owned by the same person) could not be applied in the case at bar unless the group of companies to which respondent belonged was considered to be one and the same person. The Judge then left this subject and concluded his judgment as follows [at pages 629-6301:
At the hearing, I had the opportunity of hearing from Mr. Messud, Pechiney-Ugine-Kuhlmann's top executive in Canada. The Registrar did not have this opportunity. I believe that by his testimony Mr. Messud threw some light on the matter, by
outlining the operation of this group of companies and explain ing the reason for the use of UGI. This prefix is used because the group's first steel mill was constructed and operated in the village of Ugine, Savoie, France. UGI in itself is not a geograph ical name, any more than the MONT in Montreal.
Learned counsel stated that the Registrar was aware of the fact that he was dealing with a group of companies, but I doubt that a letter could have the same impact or provide as clear an account as Mr. Messud's testimony concerning the group, the use of uGINox and UGIPLUS, the various products represented by these words, and the various groups of people to whom they are directed.
The Registrar was not able to weigh these facts in the same manner as the Court, since he did not have the opportunity to hear Mr. Messud, whose testimony (which was allowed by the Court) provided greater detail and threw new light on the matter, making it clear that the use of the prefix UGI has never created any confusion.
The following question and Mr. Messud's answer are record ed at page 48 of the transcript of the evidence:
Q. Mr. Messud, has anyone ever told you that the consum ing public tends to confuse the various products marketed by your vast enterprise and its various subsidiaries, because the products have trade marks bearing the same prefix "Ugi"? Have you ever been asked to look into complaints from anyone claiming that the same prefix on all your products was confusing?
A. I have never heard of any confusion. I believe that the idea is to separate the various categories of products by giving them different trade marks, while still maintaining unity by using the "Ugi" prefix. It is the second part of the name which usually differentiates the products, and is applied to certain categories of products as opposed to others. I have never heard of any confusion in this respect.
A series of trade marks, all bearing the UGI prefix, were listed for the Court. These included "Ugicarb", "Ugigramme", "Ugicryl", "Ugidien", "Ugigrip" and "Ugigum", as well as the following trade marks registered in Canada: "Ugi", "Ugigum", "Ugicryl", "Ugibor", "Ugipren" and "Ugitex". If names such as these have been registered, I cannot see why UGIPLUS would not also be accepted for registration.
After considering all the factors involved, and seeing no possible confusion, the Court allows the appeal.
This decision seems to me to be without foundation.
A judge hearing an appeal from a decision by the Registrar of Trade Marks has, of course, the authority to revise the decision and, in particular, he may substitute his own findings of fact for those of the Registrar. However, the judge must have reasons to justify his doing so.
In the case at bar, none of the reasons the Trial Judge gave in support of his decision seems to me to stand up to scrutiny.
If, as appellant maintained, the judgment must be interpreted as stating that the trade mark UGI- PLUS is registrable under section 15, it must be said that this judgment is based on a manifest error, since it is clear that the trade marks UGI- PLUS and UGINOx do not belong to the same owner.
Regarding the Trial Judge's statement that having heard Mr. Messud's testimony, he was in a better position than the Registrar to decide the issue, I cannot believe this since this testimony did not contain anything relevant that had not already been communicated to the Registrar.
Moreover, the Trial Judge could not in my opinion conclude anything from Mr. Messud's statement that, to his knowledge, the use of trade marks beginning with the prefix UGI had never been confusing. Certain answers given by the wit ness in cross-examination indicate that these trade marks were used by the different companies pre cisely in order to create confusion:
Q. I gather, from the testimony you gave earlier, that "Pechiney-Ugine-Kuhlmann" decided at some point to identify all its subsidiaries' products by a common word "ugi" or "ugine"?
A. Yes.
Q. The intention here was, if I understood correctly, to persuade the public purchasing the products of one or more of these subsidiaries that they had a common origin, that they came from the "Pechiney-Ugine-Kuhlmann" group?
A. Yes.
Q. That they had a common origin, and that they were produced by the same person?
A. Yes. In the case of the two companies we are concerned with at present, I recall that the unrefined metal used by "Ugine Guegnon", which is the subsidiary ... (interrupt- ed).
Finally, the Judge noted that several other trade marks comprising the prefix UGI have already been registered in circumstances and in association with products which he does not specify. This, I must say, is a consideration the relevance of which escapes me.
These reasons, which are the only ones given by the Trial Judge in support of his judgment, thus
seem very weak to me. The decision of the Regis trar, on the other hand, seems to me to make good sense and to be based on a correct interpretation of the Act.
For these reasons, the decision a quo seems to me to be without foundation and should be reversed.
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LE DAIN J. concurred.
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HYDE D.J. concurred.
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