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T-5893-79
The New Brunswick Telephone Company, Limited and Teldata Limited (Applicants)
v.
Registrar of Trade Marks (Respondent)
Trial Division, Cattanach J.—Ottawa, April 3 and 10, 1980.
Practice — Parties — Trade marks — Application for leave to join as respondents, in an originating notice of motion for an order directing the Registrar of Trade Marks to amend the registration of a trade mark — Applicants herein are the defendants in a separate Federal Court action wherein the applicants in the originating notice of motion seek to assert their rights under the trade mark — Notice of the originating notice of motion was served on the solicitors for the applicants in this motion — Application granted — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 40, 57, 58, 59— Federal Court Rules 5, 319, 321, 322, 704, 705 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 50.
Application to join Teledata Limited and Donald M. Fergu- son as respondents in an originating notice of motion for an order directing the Registrar of Trade Marks to amend the registration of a trade mark. The applicants in this motion are the defendants in a separate Federal Court action wherein the plaintiffs (applicants in the originating notice of motion) have asserted their rights under the trade mark against the defend ants. The applicants in the present motion object to the grant of the originating notice of motion as it would alter the facts upon which the defence of the invalidity of the registration is based. Only the Registrar of Trade Marks is named as a respondent in the originating notice of motion, but notice of the originating notice of motion was served on the solicitors for the applicants in this motion.
Held, the applicants shall be added to the originating notice of motion as respondents. There is no prescription as to who are necessary or proper persons to an originating motion save in so far as it may be inferred that the persons to whom notice is given and persons to whom notice is required to be given by the Court under Rule 322 are entitled to be heard on the motion and are, therefore, parties thereto. Under subsection 59(2) of the Trade Marks Act any person upon whom a copy of an originating notice has been served and who intends to contest the application shall file a reply to the notice within the prescribed time. Notice of the originating notice has, in fact, been served on the applicants herein. Paragraph (4) of Rule 704 permits a person upon whom a notice of motion has been served under subsection 59(2) of the Trade Marks Act to file and serve a reply. The applicants herein were so served. Having been served it follows that they are authorized both by the statute and the Rules above quoted to file a reply to the originating motion and that, therefore, constitutes them proper parties to the motion. In the circumstance applicable to the originating motion the applicants herein are persons to whom
notice ought to have been given. The changes sought to be made to the particulars of the registration of the trade mark and the ownership thereof are of utmost concern to the appli cants. If such changes are permitted to be made, they could be construed as having retroactive effect and thereby deprive the applicants of the defence that they have pleaded.
APPLICATION. COUNSEL:
R. H. Barrigar for applicants.
Leslie Holland for respondent.
R. G. McClanahan, Q.C. and J. Steinberg for
Teledata Limited and Donald M. Ferguson.
SOLICITORS:
Barrigar & Oyen, Ottawa, for applicants.
Deputy Attorney General of Canada for respondent.
Gowling & Henderson, Ottawa, for Teledata Limited and Donald M. Ferguson.
The following are the reasons for judgment rendered in English by
CATTANACH J.: This is an application on behalf of TELEDATA LIMITED and DONALD M. FERGU- SON for leave, inter alia, to join as respondents with the Registrar of Trade Marks in an originat ing notice of motion by the applicants named in the above style under section 57 of the Trade Marks Act, R.S.C. 1970, c. T-10, for an order directing the Registrar of Trade Marks to amend the particulars of the registration of "TELDATA", No. 191,730 as to the date of first use alleged and the registered owner thereof.
By application dated August 3, 1972 TELDATA LIMITED (a party to the originating notice) applied for the registration of "TELDATA" as a trade mark in association with communication equipment and in association with data processing services alleg ing the date of first use as April 1972 and Febru- ary 1972 respectively.
On June 4, 1975 THE NEW BRUNSWICK TELE PHONE COMPANY, LIMITED was registered as a registered user of the trade mark "TELDATA".
The applicant in this present motion was incor porated by federal letters patent dated January 13, 1972 under the corporate name of TELEDATA LIM ITED and TELEDATA LIMITÉE, in the alternative, for the purpose of carrying on business as a dealer in electrical and electronic components and has done so since the date of its incorporation.
Clearly the incorporation of TELEDATA LIMITED on January 13, 1972 antedates the dates of first use, that is February 1972 and April 1972, alleged by TELDATA LIMITED in its application dated August 3, 1972 for the registration of the trade mark "TELDATA".
In the originating notice of motion it is alleged that THE NEW BRUNSWICK TELEPHONE COM PANY, LIMITED was the first user of the trade mark "TELDATA", the date of first use being June 1972, and that it was the person entitled to the registration of the trade mark, "TELDATA" and not its wholly owned subsidiary, which was not incor porated until March 1972 and accordingly was not a corporate entity and could not have used the trade mark "TELDATA" as early as February, 1972 as stated in the application for registration in association with communications equipment.
Accordingly what the applicants, THE NEW BRUNSWICK TELEPHONE COMPANY, LIMITED and TELDATA LIMITED (its subsidiary) seek to achieve by the originating notice of motion naming the Registrar of Trade Marks as respondent is to substitute the date of June 1972 as the date of first use of the trade mark "TELDATA" for the date of February 1972 by THE NEW BRUNSWICK TELE PHONE COMPANY, LIMITED instead of TELDATA LIMITED and to substitute THE NEW BRUNSWICK TELEPHONE COMPANY, LIMITED for TELDATA LIMITED as registered owner.
In Federal Court action No. T-613-78, by state ment of claim dated February 14, 1978 and filed on that date THE NEW BRUNSWICK TELEPHONE COMPANY, LIMITED and TELDATA LIMITED sought to restrain the defendants, TELEDATA LIM ITED and DONALD M. FERGUSON from using the
word "TELEDATA" as a trade mark as part of its corporate name in association with communica tions equipment or services and other remedies usual in a trade marks suit.
In short the plaintiffs have asserted rights under the trade mark registration No. 191,730 of the word "TELDATA" against the defendants. Natural ly, that trade mark was asserted to be valid and subsisting.
The defendants filed a statement of defence and counterclaim dated May 31, 1978 amended on November 20, 1978 asserting that the plaintiffs' trade mark is invalid and void ab initio on the grounds that TELDATA LIMITED, the applicant for registration and registered owner, had not used the trade mark since February 1972 nor at any time prior to securing registration of the trade mark "TELDATA" in its name. The defendants also coun terclaim seeking a declaration under section 57 of the Trade Marks Act that the registration be expunged.
Counsel for the plaintiffs and applicants for the originating notice of motion admits that the dates of first use in the application for the registration of the trade mark made on August 3, 1972 were wrong and that TELDATA LIMITED was neither the proper applicant nor entitled to be the registered owner as the particulars of the registration reflect.
The purpose of the originating notice of motion, he candidly admits, is to correct those flagrant errors.
On the other hand counsel for the defendants and applicants in the motion now before me object vehemently to the grant of the originating notice of motion as it is an attempt in the midstream of litigation to alter the facts on which the defence of the invalidity of the registration is based thereby depriving the applicants of that defence.
It is conceded by all parties that resort cannot be had to section 40 of the Trade Marks Act to effect amendments to the register. The amend-
ments sought to be made are not within those set forth in section 40.
Accordingly resort was had to section 57 which reads:
57. (1) The Federal Court of Canada has exclusive original jurisdiction, on the application of the Registrar or of any person interested, to order that any entry in the register be struck out or amended on the ground that at the date of such application the entry as it appears on the register does not accurately express or define the existing rights of the person appearing to be the registered owner of the mark.
(2) No person is entitled to institute under this section any proceeding calling into question any decision given by the Registrar of which such person had express notice and from which he had a right to appeal.
Subsection 59(1) of the Act provides that an application is made under section 57 by filing an originating notice of motion.
Subsection 59(2) reads:
59....
(2) Any person upon whom a copy of such notice has been served and who intends to contest the appeal or application, as the case may be, shall file and serve within the prescribed time or such further time as the court may allow a reply setting forth full particulars of the grounds upon which he relies.
In the originating notice of motion which is dated December 11, 1979 only the Registrar of Trade Marks is named as a respondent.
The Registrar of Trade Marks filed a reply. He opposed the application to recite that the trade mark has been used by THE NEW BRUNSWICK TELEPHONE COMPANY, LIMITED since June 1972 in place of the registrant TELDATA LIMITED on the grounds that to do so would be prejudicial to any person who may have given up the right to oppose the application based on the earlier dates of use stated by the applicant TELDATA LIMITED at the time of the application for registration.
It is my understanding that the counsel for the Registrar of Trade Marks may have directed or suggested that notice of the originating notice of motion should be served on the defendants, TELEDATA LIMITED and DONALD M. FERGUSON in Federal Court action No. T-613-78.
Notice dated December 28, 1979 that a pro ceeding by way of originating notice of motion (a copy of which was attached) was served on the solicitors for TELEDATA LIMITED and DONALD M. FERGUSON, service of which was admitted by
endorsation on January 3, 1980. Service was also admitted by the Registrar of Trade Marks and the Deputy Attorney General of Canada on December 11, 1979.
In the motion under consideration TELEDATA LIMITED and DONALD M. FERGUSON seek (1) leave to intervene as party respondents to the originating notice of motion and that this action should be heard together with Federal Court action No. T-613-78 or, alternatively (2) leave to file a reply under Rules 704 and 705 or in the further alternative (3) an order to stay all proceed ings under the originating notice of motion until after the determination of the issue as to the validity of the registration of the trade mark "TELEDATA" raised in Federal Court action No. T-613-78.
To be added as respondents the applicants refer to Rule 1716(2) under which "at any stage of an action" the Court may order that any person who ought to have been joined as a party, or whose presence is necessary to ensure that all matters in dispute "in the action" may be effectually and completely determined and adjudicated upon be added as a party.
Rule 1716 applies to "actions" only and not to other types of proceedings and "action" is defined in Rule 2(1) as meaning a proceeding in the Trial Division "other than an appeal, an application or an originating motion". Rule 1716 is not appli cable to this proceeding which is by way of origi nating notice under section 58 of the Trade Marks Act.
Rule 5 provides that in any proceeding in the Court where a matter arises not otherwise pro vided for the practice and procedure shall be deter mined for the particular matter by analogy to other provisions in the Rules.
Rule 319 which provides for application by way of motion refers to "an adverse party" and to "any other party" but does not identify who those par ties are.
Rule 321(1) provides for service "on all other parties" when an ex parte application is not permitted.
Rule 322 provides that:
Rule 322. If, on the hearing of a motion the Court is of opinion that any person to whom notice has not been given ought to have or to have had such notice, the Court may either dismiss the motion or adjourn the hearing thereof, in order that such notice may be given, upon such terms, if any, as to the Court seem appropriate. Where the person who should otherwise be notified is dead, the Court may direct that his personal repre sentatives be notified in his place.
This is the procedure which the Rules prescribe on motions, whether made in the course of an action or otherwise. There is no prescription as to who are necessary or proper persons to an originat ing motion save in so far as it may be inferred that the persons to whom notice is given and persons to whom notice is required to be given by the Court under Rule 322 are entitled to be heard on the motion and are, therefore, parties thereto.
Under subsection 59(2) of the Trade Marks Act previously quoted any person upon whom a copy of an originating notice has been served and who intends to contest the application shall file a reply to the notice within the prescribed time.
Notice of the originating notice has, in fact, been served on the applicants herein. There is no doubt that the applicants fully intend to oppose the originating notice of motion.
Rule 704 applies to an originating notice under subsection 59(2) of the Trade Marks Act and paragraph (4) of Rule 704 permits of a person upon whom a notice of motion has been served under subsection 59(2) of the Trade Marks Act filing and serving a reply.
The applicants herein were so served. Having been served it follows that they are authorized both by the statute and the Rules above quoted to file a reply to the originating motion and that, in my view, constitutes them proper parties to the motion.
In the circumstance applicable to the originating motion herein which I have set forth in detail at the outset I am satisfied that the applicants herein
are persons to whom notice ought to have been given and had it not been given I would have no compunction about requiring that notice be given under Rule 322.
Had I not reached the conclusion that I have then I should have thought that the originating motion should have been stayed under section 50 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, as being in the interest of justice to do so.
I do not accept the contention that the appli cants have no interest in internal housekeeping matters in the Trade Marks Office. The changes sought to be made to the particulars of the regis tration of the trade mark and the ownership there of are of utmost concern to the applicants. If such changes are permitted to be made, they could, in all likelihood, be construed as having retroactive effect and thereby deprive the applicants of the defence that they have pleaded.
For the foregoing reasons the applicants shall be added to the originating motion as respondents and the style shall be amended accordingly.
In the event of this conclusion counsel for the parties were agreed that the originating motion should be heard together with Federal Court action No. T-613-78 for which I understand a joint application for trial will be forthcoming shortly. The same parties and issues are involved and I accordingly so order.
The applicants shall have leave to file and serve their reply to the originating notice and statement of material facts within 30 days of the date of the order herein and within the same period shall file any affidavits upon which reliance is to be had on the hearing and determination of these proceed ings.
The costs of this application shall be costs to the applicants in any event in the cause.
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