Judgments

Decision Information

Decision Content

T-9104-82
Source Perrier (Societe anonyme) (Plaintiff)
v.
Fira-Less Marketing Co. Limited (Defendant)
Trial Division, Dubé J.—Toronto, December 6, 1982; Ottawa, January 5, 1983.
Trade marks Infringement Goodwill of mark "Per- rier" depreciated by sale of tap water under name "Pierre Eh!" Defendant's product sold as political satire Intention to compete denied Public might suppose Perrier sanctioned defendant's product Interlocutory injunction granted Confusion of customers likely Freedom of expression not giving right to depreciate goodwill of registered trade mark Irreparable damages and balance of convenience tests met Trade Marks Act, R.S.C. 1970, c. T-10, ss. 6(5)(e), 19, 20, 22(1) Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), s. 2(b).
Constitutional law Charter of Rights Right to free dom of expression not justifying depreciation of registered trade mark's goodwill by sale of item intended as political satire Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.), s. 2(b).
The plaintiff, a French company, is the bottler and distribu tor of spring water marketed under the name "Perrier". It seeks an injunction to restrain a recently incorporated Ontario com pany from advertising and distributing bottled water in associa tion with the name "Pierre Eh!" in that the value of the goodwill attaching to the plaintiffs trade mark is likely to be depreciated by the defendant's conduct. The plaintiffs product, sold in Canada since 1936, enjoys annual Canadian sales of over fourteen million dollars. It was admitted that the defend ant's tap water is being marketed as a form of political satire directed at the Prime Minister and Government of Canada. Any intention to compete with plaintiffs product is denied. Indeed, the defendant's product contains a disclaimer that it is not to be confused with that of the plaintiff. Plaintiffs concern is that the public may not be amused by this satirization and may suppose it to be sanctioned by Perrier.
Held, the motion should be allowed and an interlocutory injunction granted. The plaintiff has established a prima facie case of infringement. Confusion in the minds of customers was likely in view of the degree of resemblance between the wares. It was the general appearance of the product that mattered. To the eyes of the ordinary purchaser, the "Pierre Eh!" bottle resembles that of the plaintiff. More significant was the dilu-
tion of the quality of plaintiffs mark, the impairment of its long-established business integrity and the injury to its goodwill brought about by the deception perpetrated by the defendant. The most liberal interpretation of freedom of expression, as provided for in paragraph 2(b) of the Canadian Charter of Rights and Freedoms, does not embrace the freedom to depreciate the goodwill of registered trade marks, nor does it afford a licence to impair the business integrity of the owner of the marks merely to accommodate the creation of a spoof. The tests of irreparable damages and balance of convenience, faced by an applicant for an interlocutory injunction, had been met.
CASES JUDICIALLY CONSIDERED
APPLIED:
Clairol International Corp. et al. v. Thomas Supply & Equipment Co. Ltd. et al. (1968), 55 C.P.R. 176 (Ex. Ct.); Dallas Cowboys Cheerleaders, Inc. v. Pussycat Cinema, Ltd., et al., 201 USPQ 740 (1979); The Coca- Cola Company v. Gemini Rising, Inc., 175 USPQ 56 (1972).
NOT FOLLOWED:
Girl Scouts of the United States of America v. Personal ity Posters Mfg. Co., Inc., 163 USPQ 505 (1969); Irving Berlin et al. v. E. C. Publications, Inc., 329 F.2d 541 (1964).
COUNSEL:
I. Goldsmith, Q.C. and K. Murray for plaintiff.
J. Little for defendant.
SOLICITORS:
I. Goldsmith, Q.C., Toronto, for plaintiff.
Holden, Murdoch, Finlay, Toronto, for defendant.
The following are the reasons for order ren dered in English by
DuBÉ J.: This motion is for an injunction restraining the defendant from infringing the exclusive rights of the plaintiff in any of its trade marks, from using the marks in a manner likely to depreciate the value of the goodwill attaching thereto, from advertising, distributing and market ing bottled water in association with the name "Pierre Eh!" in bottles substantially similar to those of the plaintiff's "Perrier" bottles, and from distributing leaflets bearing the name "Pierre Eh!".
The motion was heard at Toronto on December 6, 1982. Both parties were heard and the injunc tion was granted from the bench. I outlined in broad terms at the time the reasons behind my decision and said that more comprehensive reasons would be released later. These are the reasons.
The plaintiff (hereinafter "Perrier") is a French company which carries on the business of bottler and distributor throughout the world, including Canada of a naturally sparkling spring water origi nating from Vergeze, Gard, France, under the name of "Perrier". Since 1936 Perrier has market ed its product in Canada through various distribu tors, in a distinctive green bottle, in association with the trade name "Perrier" in a distinctive typeface and with distinctive upper and lower labels on its bottles. Since approximately 1975 Perrier has been marketed in Canada in bottles of three sizes, 695 mL, 330mL, and 195 mL.
The trade name "Perrier", as well as the various labels and the representation of the bottle, are registered under six separate Canadian trade marks and do enjoy, since the respective dates of their registration, the exclusive right to the use of the trade marks throughout Canada by virtue of the provisions of section 19 of the Trade Marks Act, R.S.C. 1970, c. T-10.
The trade marks have been extensively adver tised in Canada since the early 1950's and even more extensively since 1980 under a new local distributor. The advertising and promotion expenses for 1980 and 1981 were in excess of $3,240,000 for Canada. The sales for the year 1981 were in excess of 14.8 million dollars in this country. The product "Perrier" is undoubtedly well known in Canada and the defendant does not dispute its popularity.
The defendant is a recently—October 7, 1982— incorporated Ontario company. Since incorpora tion the defendant has been advertising, promoting and selling in Canada a 750 mL bottle of ordinary tap water in a green bottle bearing the name "Pierre Eh!" in a typeface substantially similar to that used by the plaintiff. The "Pierre Eh!" green bottle sports upper and lower labels which at first glance appear substantially identical to the "Per-
rier" labels while the small print is different. Attached to the neck of the "Pierre Eh!" bottle is a recipe leaflet titled "Pierre Eh!" in a typeface substantially identical to that of Perrier's. The wording appearing in small print on the upper and lower labels, and in the leaflet, consists of what purports to be humorous comments directed to the present federal administration and the Prime Minister.
In his statement of fact and law the defendant's counsel readily admits that the "Pierre Eh!" prod uct "is being marketed as a humorous political spoof or satire directed at the Prime Minister and Government of Canada". He argues that the "Pierre Eh!" bottles are not being marketed in competition with the Perrier product. His affidavit evidence shows that the "Pierre Eh!" bottles are sold in specially designed displays featuring a large cardboard poster prominently displaying a carica ture of the Prime Minister: in no retail outlet are the "Pierre Eh!" bottles displayed in proximity to the "Perrier" bottles. The defendant's product car ries a suggested retail price of $4.95, whereas the large "Perrier" bottle normally retails at $1 a bottle.
Still according to the defendant's solicitor, because of the distinguishing factors between the two bottles—such as the shape of the "Pierre Eh!" bottle which is straight sided, the gold cap on the "Pierre Eh!" bottle (whereas the plaintiff's bottle comes with a green top cap), the actual wording in small print, the attached booklet—there can be no confusion between the bottles, "particularly since the Defendant's product clearly indicates it is mar keted by the Defendant and contains a disclaimer that it is not to be confused with the Plaintiff's product".
On the other hand, the plaintiff's counsel argued that the "Pierre Eh!" product not only causes confusion, but is also likely to reflect adversely on the Perrier reputation having regard to the fact
that the plaintiff is a French company and is in no way involved in any political activities in Canada. He fears, in particular, that members of the public may well form the impression that Perrier has sanctioned or condoned such political spoof, and that there may well be members of the public who do not regard it as amusing.
In my view, the plaintiff has established a prima facie case of infringement by the defendant upon the Perrier trade marks, which registered trade marks are entitled to protection under the provi sions of section 20 of the Trade Marks Act.' Having regard to the degree of resemblance be tween the wares, the defendant is likely to create confusion in the minds of the customers. The degree of resemblance to be considered under paragraph 6(5)(e) of the Act 2 is not such a high degree of resemblance as would withstand minute and detailed scrutiny. To the eyes of the ordinary purchaser, the "Pierre Eh!" bottle definitely resembles the Perrier bottle. The size and colour of the bottles, the positioning and colour of the yellow labels on the bottles, the similar typeface of the trade marks, and the similarity in appearance and pronunciation of "Perrier" and "Pierre Eh!", are not only likely to cause confusion but are obviously
1 20. The right of the owner of a registered trade mark to its exclusive use shall be deemed to be infringed by a person not entitled to its use under this Act who sells, distributes or advertises wares or services in association with a confusing trade mark or trade name, but no registration of a trade mark prevents a person from making
(a) any bona fide use of his personal name as a trade name, or
(b) any bona fide use, other than as a trade mark,
(i) of the geographical name of his place of business, or
(ii) of any accurate description of the character or quality of his wares or services,
in such a manner as is not likely to have the effect of depreciat ing the value of the goodwill attaching to the trade mark.
2 6....
(5) In determining whether trade marks or trade names are confusing, the court or the Registrar, as the case may be, shall have regard to all the surrounding circumstances including
(e) the degree of resemblance between the trade marks or trade names in appearance or sound or in the ideas suggested by them.
meant to cause confusion. Otherwise, the spoof would not be a spoof. In such cases of obvious imitation what imports is not the small print but the general appearance of the product.
Of more significance, however, is that the defendant is depreciating the value of the goodwill attached to Perrier's marks contrary to the provi sions of subsection 22(1) of the Act. 3 The fact that the defendant intends to produce a spoof does not take away from the deception created in the minds of the customers. The defendant is clearly attempt ing to cash in on the well-established reputation of Perrier, and the deception, in my view, tends to dilute the quality of its trade marks, to impair its business integrity established over the years, and to cause injury to its goodwill.
Undoubtedly, a customer approaching the "Pierre Eh!" bottle and examining the labels will discover the spoof, but confusion is not the test to be used under section 22, "the test is the likelihood of depreciating the value of the goodwill attaching to the trade mark, a result which would not neces sarily flow from deception and which might result without deception being present". 4
The intention to create a spoof, as a defence to infringement, was considered by American courts in the three following cases.
In Girl Scouts of the United States of America v. Personality Posters Mfg. Co., Inc., 5 the defend ant distributed a poster exhibiting a pregnant smil ing girl dressed in the Junior Girl Scouts' green uniform, with her hands clasped over her protrud ing abdomen. The words "BE PREPARED" com pleted the portrait. The District Court, S.D. in New York denied the motion for a preliminary
3 22. (1) No person shall use a trade mark registered by another person in a manner likely to have the effect of depreciating the value of the goodwill attaching thereto.
4 Clairol International Corp. et al. v. Thomas Supply & Equipment Co. Ltd. et al. (1968), 55 C.P.R. 176 (Ex. Ct.), at p. 195.
5 163 USPQ 505 (1969).
injunction and concluded as follows [at page 5101:
Those who may be amused at the poster presumably never viewed the reputation of the plaintiff as being inviolable. Those who are indignant obviously continue to respect it. Perhaps it is because the reputation of the plaintiff is so secure against the wry assault of the defendant that no such damage has been demonstrated.
The Girl Scouts decision was referred to in Dallas Cowboys Cheerleaders, Inc. v. Pussycat Cinema, Ltd., et a1. 6 In that case the Cheerleaders moved for a preliminary injunction to restrain the production and exhibition of a motion picture en titled "Debbie Does Dallas". The Court found that the ninety-minute pornographic film featuring titillating encounters between cheerleaders and football players clearly intended to convey to the viewer the impression that the plaintiffs were involved. The District Court, S.D., New York held that the obvious intent of the defendant "is to cash in upon the favorable public image of the Dallas Cheerleaders, including the image of a particular quality of feminine beauty and character". The Court added that "It is not difficult to conceive of the possibility that the use of plaintiff's trade marks by the makers of a movie would subtly suggest that the movie is sponsored by plaintiff, or that plaintiff's cheerleaders are performing in the movie". The Court found that the movie in its advertising created a "likelihood of confusing members of the public as to the sponsorship of the movie by the Dallas Cowboys Cheerleaders". It concluded that the defendant wilfully misappro priated plaintiff's trade names and trade marks and that if "such activities are allowed to continue, there will inevitably be a dilution, or whittling down, of the reputation and good will associated with plaintiff's names and marks". The prelim inary injunction was issued.
The Girl Scouts decision was further considered in The Coca-Cola Company v. Gemini Rising, Inc.' by the District Court, E.D. New York where
6 201 USPQ 740 (1979). 7 175 USPQ 56 (1972).
Coca-Cola brought an action to enjoin the defend ant from distributing a poster which consisted of an exact blown-up reproduction of the Coca-Cola trade mark, except for the substitution of the script letters "ine" for "Cola", so that the poster reads "Enjoy Cocaine". The Court granted the preliminary injunction. In the course of its judg ment it made the following comments which bear reproduction. At page 60:
In this day of growing consumer resistance to advertising gimmicks, a strong probability exists that some patrons of Coca-Cola will be "turned off' rather than "turned on" by defendant's so-called "spoof' with resulting immeasurable loss to plaintiff. In such circumstances injunctive relief is the only adequate remedy if the right to it exists.
The defendant submits that the plaintiff's right to the protection of its trade marks must be balanced with the defendant's rights to freedom of opinion and expression and relies on paragraph 2(b) of the Canadian Charter of Rights and Free doms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11(U.K.), which provides:
2. Everyone has the following fundamental freedoms:
b) freedom of thought, belief, opinion and expression, includ ing freedom of the press and other media of communication;
The defendant argues that parody and satire are deserving of substantial freedom and that a finding of infringement should not be made where the satiric product does not fulfill and does not intend to fulfill the demand for the original product and where the parodist has not appropriated more from the original product than is necessary to conjure up the satire.
The defendant relies on another American deci sion, Irving Berlin et al. v. E.C. Publications, Inc., 8 an action for copyright infringement against the publishers of Mad Magazine. It was alleged that the defendants parodied the songs of the plaintiffs. The Court held that the use of the plaintiffs' works in the "broad-gauged" burlesques fell far short of "substantial" takings. It held that [at page 545] "as a general proposition, we believe
" 329 F.2d 541 (1964).
that parody and satire are deserving of substantial freedom ... many a true word is indeed spoken in jest".
In my view, the most liberal interpretation of "freedom of expression" does not embrace the freedom to depreciate the goodwill of registered trade marks, nor does it afford a licence to impair the business integrity of the owner of the marks merely to accommodate the creation of a spoof. It must be borne in mind that this application for an injunction does not originate from the targets of the parody—those in the political trade are expect ed to be blessed with a broad sense of humour— but from the owner of the trade marks.
It is trite law that an applicant for an interlocu tory injunction must establish that his losses pend ing trial could be irreparable. I find, on the basis of the evidence filed, that the damage to the reputation of the plaintiff would be most serious and that the recently incorporated defendant com- pany—not really in the business of marketing sparkling water—would hardly be in a financial position to pay any damages awarded against it. Nor does the balance of convenience favour the defendant: the plaintiff company, a genuine inter national bottler, is clearly in a position to cover whatever financial losses the defendant may have sustained as a result of this injunction, if it turns out that the plaintiff is not successful in this action.
For all those reasons the injunction was granted against the defendant until judgment.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.