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T-3440-80
Herman Lindy (Appellant)
v.
Registrar of Trade Marks (Respondent)
Trial Division, Dubé J.—Montreal, March 17; Ottawa, March 25, 1981.
Trade marks — Appeal from Registrar's decision to expunge registration of trade mark "Friday's" for failure to show use by appellant — Appellant was registered owner of trade mark — Appellant filed affidavit of user in response to application to expunge trade mark — Affidavit established use in Canada in association with services performed at the date of notice and it "showed" the use — Affidavit did not establish use by the appellant — Whether affidavit fulfils requirements of s. 44 of Trade Marks Act — Appeal dismissed — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 2, 44.
Aerosol Fillers Inc. v. Plough (Canada) Ltd. [1980] 2 F.C. 338; confirmed [1981] 1 F.C. 679, distinguished. Ameri- can Distilling Co. v. Canadian Schenley Distilleries Ltd. (1979) 38 C.P.R. (2d) 60, referred to. Broderick & Bascom Rope Co. v. Registrar of Trade Marks (1970) 62 C.P.R. 268, referred to. Re Wolfville Holland Bakery Ltd. (1965) 42 C.P.R. 88, referred to. The Noxzema Chemical Co. of Canada Ltd. v. Sheran Manufacturing Ltd. [1968] 2 Ex.C.R. 446, referred to.
APPEAL. COUNSEL:
Mortimer G. Freiheit and James Woods for
appellant.
Robert W. Côté for respondent.
Terrance J. McManus for Ken Dolan Inc.
(requesting party).
SOLICITORS:
Stikeman, Elliott, Tamaki, Mercier & Robb, Montreal, for appellant.
Deputy Attorney General of Canada for respondent.
Scott & Aylen, Ottawa, for Ken Dolan Inc. (requesting party).
The following are the reasons for judgment rendered in English by
DuBÉ J.: This is an appeal from a decision of the Registrar of Trade Marks expunging the regis-
tration of the appellant's trade mark "Friday's" at the request of Ken Dolan Inc.
On May 4, 1973 Friday's Ltd., a company of which the appellant is the president and the major shareholder, obtained the registration of the trade mark. On August 4, 1977 Friday's Ltd. assigned its rights in the trade mark to the appellant and the latter was inscribed in the Trade Marks Office as the registered owner on November 25, 1977. On October 30, 1978 a notice under section 44 of the Trade Marks Act' was issued by the Registrar at the written request of the above requesting party.
The appellant filed his affidavit and on May 21, 1980 the Registrar decided to expunge the regis tration on the ground that the trade mark, on or before the date of the section 44 notice, was used by Friday's Ltd., the former registrant, and not by the appellant. The Registrar concluded as follows:
The fact that Herman Lindy is the president and major share holder of Friday's Ltd. in no way establishes use of the trade mark by him .... According to section 44(1) it is the registrant who must show that he is using the trade mark in association with each of the services in the normal course of trade in Canada at the date of the section 44 notice.
The relevant subsections read as follows:
44. (1) The Registrar may at any time and, at the written request made after three years from the date of the registration by any person who pays the prescribed fee shall, unless he sees good reason to the contrary, give notice to the registered owner requiring him to furnish within three months an affidavit or statutory declaration showing with respect to each of the wares or services specified in the registration, whether the trade mark is in use in Canada and, if not, the date when it was last so in use and the reason for the absence of such use since such date.
(3) Where, by reason of the evidence furnished to him or the failure to furnish such evidence, it appears to the Registrar that the trade mark, either with respect to all of the wares or services specified in the registration or with respect to any of such wares or services, is not in use in Canada and that the absence of use has not been due to special circumstances that excuse such absence of use, the registration of such trade mark is liable to be expunged or amended accordingly.
' R.S.C. 1970, c. T-10.
The Registrar placed considerable reliance on a decision of my brother Cattanach in Aerosol Fill ers Inc. v. Plough (Canada) Limited 2 where the learned Judge says as follows [at page 344]:
These circumstances, in my view, place upon the Registrar a special duty to insure that reliable evidence is received and that a bare unsubstantiated statement of use is not acceptable and an allegation which is ambiguitas patens in an affidavit renders that affidavit equally unacceptable.
In the Aerosol case the only relevant material adduced before the Registrar was a paragraph of the affidavit which stated that Plough is "using ... the registered trade mark PHARMACO in the normal course of trade in Canada in association with pharmaceutical preparations."
The affidavit filed by Herman Lindy, however, is not in my view a bare unsubstantiated statement of use. It fulfils the requirements of section 44 in that it establishes that the trade mark "Friday's" was in use in Canada in association with the services performed at the date of the notice (Octo- ber 30, 1978). Far from being a bare assertion of use, the affidavit "shows" the use. It describes the type of use provided; it provides two press reviews dealing with the quality of food and service at Friday's, a T.V. listing, an advertisement for American Express Credit Card, photocopies of "Friday's" books of matches and napkins used in the restaurant with the trade mark "Friday's" printed thereon, a copy of pennants/distributed to customers, and even a copy of "Friday's" menu. The affidavit undoubtedly "shows" that the trade mark "Friday's" was used in association with the services provided during the relevant period.
But the affidavit does not establish that the trade mark was in use in Canada by the appellant. It establishes that it was in use in Canada by Friday's Ltd.
I accept the appellant's proposition that the purpose of proceedings under section 44 is not to determine a proprietary interest in the trade mark, but to discover whether or not the trade mark is in use in Canada. Section 44's vocation is to remove
2 [1980] 2 F.C. 338, confirmed by the Court of Appeal [1981] 1 F.C. 679.
"dead wood" from the register. That purpose has been clearly defined by Thurlow A.C.J., as he then was, in American Distilling Co. v. Canadian Schenley Distilleries Ltd. 3 ; by Jackett P., as he then was, in Broderick & Bascom Rope Co. v. Registrar of Trade Marks 4 ; and also by Thorson P. in Re Wolfville Holland Bakery Ltd.' wherein the latter said at page 91:
It is clear that the purpose of s. 44 of the Act is to provide a procedure for trimming the register of trade marks, so to speak, by getting rid of "dead wood" in the sense of trade marks that are no longer in use ....
It is also true that in order to satisfy the require ments of section 44 it is sufficient for the regis trant to provide "some evidence" of use of the trade mark in Canada. Jackett P. in The Noxzema Chemical Co. of Canada Ltd. v. Sheran Manufac turing Ltd. 6 put it clearly at page 452:
What it does, as I understand it, is provide a summary proce dure whereby the registered owner of a trade mark is required to provide either some evidence that the registered trade mark is being used in Canada ....
Section 44 is not to be considered a vehicle to strike out a trade mark from the register on the ground that it does not express existing rights. That procedure is provided by section 57 of the Act. As Thurlow A.C.J., as he then was, said in American Distilling Co., (supra) at page 62:
The only subjects that arise under s. 44 and which are to be dealt with in the affidavit or declaration are whether the trade mark is in use and, if not, the date when it was last in use and why it is not in use.
Neither is section 44 to be considered the proper procedure to determine whether a trade mark has been abandoned by its owner within the meaning
3 (1979) 38 C.P.R. (2d) 60.
4 (1970) 62 C.P.R. 268.
5 (1965) 42 C.P.R. 88.
6 [1968] 2 Ex.C.R. 446.
of section 18(1)(c) of the Act 7 . In the aforemen tioned Noxzema case, Jackett P., as he then was, said at pages 451-452:
This provision makes it clear, in my view, that section 44 does not contemplate a determination of an issue as to whether a trade mark has been abandoned but is merely a procedure for clearing the Registry of registrations where there is no real claim by the registered owner that he has not abandoned the trade mark .... As I read section 44, it does not provide a summary procedure for determining whether a registered trade mark has been "abandoned" within the meaning of section 18(1)(c).
And, as the appellant rightly points out, section 44 does not expressly stipulate that the trade mark must be in use in Canada by the registered owner. There is no jurisprudence deal ing precisely with the matter.
Counsel for the respondent and the requesting party rely on a line of decisions 8 dealing with other sections of the Act to show that "use" under the Act means use by the registered owner, or a registered user. On the other hand, counsel for the appellant advances a number of decisions 9 , again mostly about other aspects of the legislation, to show that "use" might be by other persons, such as legal entities, or commercial organizations con trolled by the registered owner.
The requesting party has filed an originating notice of motion in this Court (No. T-3415-78) to strike out the trade mark "Friday's". The appellant has also commenced an action in this Court (No. T-3418-78) alleging infringement by the requesting party.
8 Marketing International Ltd. v. S.C. Johnson and Son, Limited [1979] 1 F.C. 65; Wilkinson Sword (Canada) Limited v. Arthur Juda, carrying on business as Continental Watch Import Co. (1966) 34 Fox Pat. C. 77; The Molson Companies Ltd. v. Halter (1977) 28 C.P.R. (2d) pp. 158-182; John Labatt Ltd. v. The Cotton Club Bottling Co. (1976) 25 C.P.R. (2d) pp. 115-126; Gattuso v. Gattuso Corp. Ltd. [1968] 2 Ex.C.R. 609; Noxzema Chemical Co. of Canada Ltd. v. Sheran Manufac turing Ltd. (supra).
9 Gray Rocks Inn Ltd. v. Snowy Eagle Ski Club Inc. (1972) 3 C.P.R. (2d) 9; Upjohn Co. v. Lino Aires de Oliveira Valadas (1978) 33 C.P.R. (2d) 257; Good Humor Corp. of America v. Good Humor Food Products Ltd. [1937] Ex.C.R. 61; Berg v. Segal Furniture Ltd. (1974) 14 C.P.R. (2d) 215; Foodcorp Limited v. Chalet Bar B-Q (Canada) Inc. (1981) 55 C.P.R. (2d) 46.
Reading the Act as a whole, the conclusion is inescapable, in my view, that "use in Canada" means use by the registered owner or a registered user.
The word "use" is defined under section 2 of the Act:
2....
"use" in relation to a trade mark, means any use that by section 4 is deemed to be a use in association with wares or services;
Section 4 which stipulates when a trade mark is deemed to be used reads as follows:
4. (1) A trade mark is deemed to be used in association with wares if, at the time of the transfer of the property in or possession of such wares, in the normal course of trade, it is marked on the wares themselves or on the packages in which they are distributed or it is in any other manner so associated with the wares that notice of the association is then given to the person to whom the property or possession is transferred.
(2) A trade mark is deemed to be used in association with services if it is used or displayed in the performance or advertis ing of such services.
"Trade mark" is defined under section 2: 2....
"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 manu factured, sold, leased, hired or performed by him from those manufactured, sold, leased, hired or performed by others, [Emphasis mine.]
The person in question has to be the registered owner. Obviously, it cannot be a competitor, or a stranger. If it were an assignee of the registered owner, then such an assignee would have to regis ter as a "registered user" under section 49 in order to be allowed the "permitted use". Under subsec tion 49(3), the permitted use of a trade mark has the same effect for all purposes of this Act as to use thereof by the registered owner 10 . Allowing other persons the privileges of "permitted use", without the benefit of registration as provided under section 49, would render the latter section redundant. And there are no provisions under the Act which would permit an unregistered legal
10 Vide Pigeon J. in S.C. Johnson and Son, Limited v. Marketing International Ltd. [1980] 1 S.C.R. 99.
entity controlled by the registered owner to use the trade mark in Canada with the same effect, for purposes under section 44 or any other purposes, as a use thereof by the registered owner.
For those reasons the appeal must be dismissed with costs.
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