Judgments

Decision Information

Decision Content

T-2967-78
Thomas J. Lipton, Limited (Appellant)
v.
Salada Foods Ltd. (Respondent)
Trial Division, Addy J.—Ottawa, April 10 and September 20, 1979.
Trade marks — Clearly descriptive or deceptively mis - descriptive — Registrar found proposed mark, `LIPTON CUP.A. TEA", to be used in association with tea, had a "clear descrip tive or misdescriptive connotation of the wares ..." — Appeal from Registrar's refusal to register the proposed mark — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 12(1)(b), 34, 37(2)(b), (d).
The appellant appeals against the Registrar of Trade Marks' refusal to register the mark "LIPTON CUP.A.TEA" for proposed use in association with tea. As applicant, it disclaimed the exclusive use of the word "tea" but was not requested to disclaim the use of the word "cup". The Registrar decided that the proposed mark had a clear descriptive or misdescriptive connotation of the wares in connection with which the applicant intended to use the trade mark and held it to be unregistrable in the light of the provisions of section 12(1)(b). The second ground of opposition relied on by the opponent in the proceed ings in the Trade Marks Office, that the proposed mark was not distinctive, was not dealt with by the Registrar.
Held, the appeal is allowed. Whether or not a mark is clearly descriptive or deceptively misdescriptive of the wares intended to be covered is a practical question of fact to be determined judicially. A "specific descriptive suggestion or implication" or a "clear implication or suggestion" that a mark is descriptive or misdescriptive is not enough to qualify it under section 12(1)(b). The concept of clearness where the word is descrip tive and of deception where it is misdescriptive are essential elements. The Registrar's finding that "The proposed trade mark ... has a specific descriptive connotation ...." is based on a manifest error of principle as it made no finding that the word was clearly descriptive or deceptively misdescriptive. In considering whether a word is clearly descriptive or deceptively misdescriptive of the wares, the word must not be considered by itself but in the context of the whole mark and in relation to the actual wares in association with which it is intended that the mark be used. It is a question of what impression the word in that context would make on the mind of a normal person. The word "cup" in the proposed mark "LIPTON CUP.A.TEA" to be used in association with tea would not reasonably or normally be considered as directly related to the ware itself, and there fore cannot be considered as either describing or misdescribing it. Further, that mark, when considered as a whole, is distinctive.
Benson & Hedges (Canada) Ltd. v. St. Regis Tobacco Corp. [1968] Ex.C.R. 22, applied. Kellogg Company of Canada Ltd. v. The Registrar of Trade Marks [1940] Ex.C.R. 163, referred to. Globetrotter Management Ltd. v.
General Mills Inc. [1972] F.C. 1187, referred to. Deputy Attorney General of Canada v. Jantzen of Canada Ltd. [1965] 1 Ex.C.R. 227, referred to. In the Matter of an Application by Evans Sons Lescher and Webb Limited for the registration of a Trade Mark (1934) 51 R.P.C. 423, referred to.
APPEAL. COUNSEL:
R. G. McClenahan, Q.C. and R. S. Jolliffe for appellant.
S. Anissimoff for respondent.
SOLICITORS:
Gowling & Henderson, Ottawa, for appellant.
MacBeth & Johnson, Toronto, for respond ent.
The following are the reasons for judgment rendered in English by
ADDY J.: The appellant appeals against the Registrar of Trade Marks' refusal to register the mark "LIPTON CUP.A.TEA" for proposed use in association with tea. As applicant, it was required to disclaim and did in fact disclaim the exclusive use of the word "tea" pursuant to section 34 of the Act. It was not requested to disclaim the use of the word "cup".
The appellant filed no evidence before the Reg istrar. The opponent on the other hand filed an affidavit and the decision, with the consent of the parties, was reached without oral hearing after considering written argument filed by their counsel.
The respondent, in the proceedings in the Trade Marks Office, opposed the registration as provided for in section 37(2)(b) by alleging that the mark was not registrable on the grounds that the word "cup" as stated in section 12(1)(b) is either clearly descriptive or deceptively misdescriptive of the character of the wares. It also maintained that the mark was not registrable without the appropriate disclaimer of the word "cup" pursuant to section 34. It also objected to the mark pursuant to section 37(2)(d), on the grounds that the proposed mark was not distinctive of the wares.
As to the objection to registration on the basis of non-disclaimer of the word "cup", the question of whether a disclaimer to a proposed name has or has not been made cannot form a ground for opposition to the mark under section 37(2). This was decided by Heald J. in the case of Canadian Schenley Distillers Ltd. v. Registrar of Trade Marks (1974) 15 C.P.R. (2d) 1 quoted in the case of Imperial Tobacco Co. v. Philip Morris'. I fully agree with his view of the law. Furthermore, although the issue of non-disclaimer of the word "cup" was stressed by counsel for the respondent in his written argument before the Registrar, he readily conceded on the appeal before me that it was not a proper ground for an opposition institut ed under section 37 to the registration of a mark and he abandoned that ground of appeal.
Considerable weight must generally be attached to any decision of the Registrar of Trade Marks in granting or refusing to grant the registration of a mark, as the subject-matter is one in which he must be deemed to possess considerable expertise. It has also been stated in the past that in appeals of this nature, this Court should refrain from interfering with and from substituting its judgment for that of the Registrar, where there is evidence on which the finding complained of could have been made and where there is no error in principle or failure to act judicially, or some other manifest error or omission of material facts or misdirection. (See The Rowntree Company Limited v. Paulin Chambers Company Limited 2 ; Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corporation 3 ; and Record Chemical Co. Inc. v. American Cyanamid Co. 4 ) This last principle, however, was not accepted by the Supreme Court of Canada when the Benson & Hedges case went there on appeal in 1968. (Refer [1969] S.C.R. 192 at pages 200-201.) It was there held that the question of whether a trade mark was confusing
' (1977) 27 C.P.R. (2d) 205 at 209.
2 [1968] S.C.R. 134 at 138.
3 [1968] Ex.C.R. 22 at 31.
4 (1974) 14 C.P.R. (2d) 127 (F.C.A.).
involved a judicial determination of a practical question of fact and did not involve the Registrar's discretion and that the question remained fully open to this Court to consider on the facts.
In my view, the same applies to the question as to whether a mark is clearly descriptive or decep tively misdescriptive of the wares intended to be covered: it is a practical question of fact to be determined judicially.
The written reasons for decision filed in the Trade Marks Office reveal that the hearing officer properly defined the issues as submitted to him at that time in the following terms, namely:
The issues in the present proceedings are narrow, namely, whether the trade mark LIPTON CUP.A.TEA is clearly descrip tive or deceptively misdescriptive of the character or quality of the wares in association with which it is proposed to be used. If so, the mark is not entitled to registration because of the provisions of section 12(1)(b) of the Act.
The second ground of opposition relied on by the opponent is that the trade mark is not distinctive. However, it seems to me that if the mark is not entitled to registration by reason of Section 12(1)(b) it is incapable of distinguishing the wares of the applicant for the same reason.
In his finding, however, on the last page of the reasons, he asserts merely that "The proposed trade mark . .. has a specific descriptive connota tion ...." and then concludes as follows:
In the present instance, I am of the opinion that LIPTON CUP.A.TEA has a clear descriptive or misdescriptive connotation of the wares in connection with which the applicant intends to use the trade mark. In view of the conclusion which I have reached, I hold that the proposed trade mark is unregistrable in the light of the provisions of Section 12(1)(b) of the Act.
In my view, the Registrar has misdirected him self. "Connotation" means an implication or a suggestion. Even a "specific descriptive suggestion or implication" or "a clear implication or sugges tion" that a mark is descriptive or misdescriptive is not sufficient to disqualify it for registration under section 12(1)(b). That enactment admits of no mere implication or suggestion. Parliament used the word "clearly" before the word "descriptive" and "deceptively" before the word "misdescrip- tive" and the Registrar has made no finding that the word was either clearly descriptive or decep tively misdescriptive. As to whether a mere sugges-
tive description suffices, one might refer to a deci sion of the former Exchequer Court of Canada in the case of Kellogg Company of Canada Limited v. The Registrar of Trade Marks'.
The concept of clearness where the word is descriptive and of deception where it is misdescrip- tive are essential elements. The finding, therefore, is based on a manifest error in principle. There fore, even if the question were one regarding the exercise of the Registrar's discretion, which it is not, it would still be my duty to determine whether or not the finding should stand, based on the facts as I now find them, always bearing in mind that a finding of the Registrar because of his expertise in the subject-matter should not be lightly interfered with.
Although the appellant elected to adduce no evidence before the Registrar, two affidavits, ten dered by its counsel, were admitted at the hearing before me. The first one contained definitions of the word "cup" from fourteen dictionaries and the second one, evidence as to the state of the Register regarding the use of the word "Lipton" in some fifteen Lipton Marks and Designs registered since 1916.
The respondent produced no additional evidence and relied on the affidavit originally produced before the Registrar.
It is interesting to note that, in all of the diction ary definitions submitted by the appellant, as well as in the one extract from Webster's dictionary submitted on behalf of the respondent, the primary definition of the word "cup" relates to the vessel itself and that it is only in a secondary or a derivative sense that the word is used to describe "the beverage or food contained in a cup" such as in the case of a "fruit cup" or a "loving cup." Yet, the latter is the only definition which the Registrar considered. He stated in his reasons at page 5:
Exhibit C to the MacKeen Affidavit is a copy of a page of Webster's Seventh New Collegiate Dictionary in which the word "cup" is defined as,
"cup—a food served in a cup-shaped vessel." 5 [1940] Ex.C.R. 163 at 170 and 171.
He failed to state, or apparently consider, that the first definition of "cup" in that very exhibit was "an open bowl-shaped drinking vessel."
However, regardless of whether a definition relates to a primary or to a secondary meaning of a word, whenever one is considering whether a word is clearly descriptive or deceptively misde- scriptive of the wares, the word must not be con sidered by itself but in the context of the whole mark and in relation to the actual wares in asso ciation with which it is intended that the mark be used. (See Globetrotter Management Limited v. General Mills Inc. 6 ) It is a question of what impression the word in that context would make on the mind of a normal person. (Refer Deputy Attorney General of Canada v..Iantzen of Canada Limited'.)
When considering the word "cup" in the pro posed mark "LIPTON CUP.A.TEA" to be used in association with tea, I cannot see how any reason able person could feel that the word "cup" is describing the ware intended to be sold. In other words, no reasonable person would feel that Lipton intends to sell actual cups filled either with loose tea, tea bags or liquid tea as a beverage. The word "cup" in that context could only be taken to indicate the receptacle or vessel in which it is intended that the ware will ultimately be con sumed by the purchaser and not the ware itself. Since the word would not reasonably or normally be considered as directly related to the ware itself, it follows that it cannot be considered as either describing or misdescribing it. As stated previous ly, in another context, the word "cup" might well relate to the ware itself, that is, to the object or some part of the object constituting the ware, or it might relate to a substance sold together with and contained in a cup.
I therefore conclude that, in the present case, the word "cup" is neither clearly descriptive nor deceptively misdescriptive of "tea" which is the ware to be covered in the proposed mark "LIPTON CUP.A.TEA".
6 [1972] F.C. 1187 at pages 1191-1192.
7 [1965] 1 Ex.C.R. 227.
The Registrar disposed of the question of wheth er the mark was distinctive on the basis that a mark which was either descriptive or misdescrip- tive of the ware could not be distinctive. As a result he did not, at any place in his reasons, consider the mark as a whole to determine whether in the event of it not being clearly descriptive or deceptively misdescriptive, it might nevertheless be unacceptable for registration on the basis that it was not distinctive. It is clear that, when assessing a trade mark to determine whether it is distinctive, the mark must be looked at as a whole. It is not proper to dissect it. (See Fox, Canadian Patent Law and Practice, Third Edition, at pages 101 and 167 and In the Matter of an Application by Evans Sons Lescher and Webb Limited for the registra tion of a Trade Mark")
It is true that, generally speaking, the state of the Register is irrelevant and unacceptable as evi dence in certain cases, for instance to establish that, because a similar mark was granted previous ly, the one under consideration should be granted. Each case must be judged on its merits and in accordance with the evidence tendered. The state of the Register, however, is perfectly admissible to establish other relevant facts such as in the present case, where it is tendered for the purpose of show ing that for over sixty years the Registrar must have consistently found that the word "Lipton" was distinctive since it was granted in trade marks. As to the Register being admissible for certain purposes reference is made to the decision of the Judicial Committee of the Privy Council in 1942 in the case of Coca-Cola Co. of Canada Ltd. v. Pepsi-Cola Co. of Canada Ltd. 9
I do not hesitate in finding that the mark "LIP- TON CUP.A.TEA", when considered as a whole, is distinctive. This is even apparent from a mere examination of the mark.
Altogether apart from the above, one might almost be tempted, if it were proper to do so, to take judicial notice of the distinctiveness that the word "Lipton" has acquired in the tea industry.
8 (1934) 51 R.P.C. 423 at page 425.
9 1 C.P.R. 293 and more specifically at page 299.
Since I have found that the mark complies with section 12(1) (b) and the opposition under section 37(2)(d) fails, the findings of the Registrar of Trade Marks on these issues are set aside, the order refusing registration is quashed and the application is referred back to the Registrar for appropriate action.
The appellant shall be entitled to its costs against the respondent.
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