Judgments

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T-1124-85
Andres Wines Ltd. (Appellant) v.
Canadian Marketing International Limited (Respondent)
INDEXED AS: ANDRES WINES LTD. v. CANADIAN MARKETING INTERNATIONAL LTD.
Trial Division, Joyal J.—Ottawa, November 3 and December 18, 1986.
Trade marks — Registration — Allegation of confusion — Confusion test not to be limited strictly to two competing marks — Trade Marks Act, R.S.C. 1970, c. T-10, s. 6.
The appellant's opposition to the respondent's registration of the trade mark "Newfie Duck" in association with sparkling wine was rejected by the Hearing Officer. The appellant alleged confusion between the proposed mark and its own "Baby Duck" and two "Duck Design" registered marks. This is an appeal from the Hearing Officer's decision.
Held, the appeal should be dismissed.
The pre-eminence of the "Baby Duck" marks in Canada does not resolve the confusion issue. Since the use of the word "Duck" in association with wines is quite extensive, the ques tion arises as to whether the issue of confusion should be limited strictly to the two competing marks or extended to other marks as well. The distinctiveness of a registered mark is considerably attenuated if, as in this case, it has historically coexisted with similar marks covering similar wares. Further more, since "Baby Duck" is a derivative of "Cold Duck", a generic expression descriptive of some types of wines, it cannot be considered a strong mark.
In this instance, as the case law allows, more weight should be given to the considerations set out in paragraphs 6(5)(a) and (e) of the Act. However, no high degree of inherent distinctive ness is created in associating the word "duck" with either a baby duck or with Newfoundland. Nor is there much resem blance in appearance or sound. Nor can one readily fit in the same mold the ideas conveyed by prancing birds and the "Newfie" style. Finally, it would seem that the appellant's marks have reached a stage where they might no longer require protection against "newcomers".
CASES JUDICIALLY CONSIDERED APPLIED:
General Motors Corp. v. Bellows, [1949] S.C.R. 678; S.C. Johnson & Son Inc. v. Esprit de Corp, judgment dated December 15, 1986, Federal Court, Trial Division, T-2896-84, T-2897-84, not yet reported; Prairie Maid
Cereals Ltd. v. Christie, Brown & Co. Ltd. (1966), 48 C.P.R. 289 (B.C.C.A.).
DISTINGUISHED:
Rowntree Company Limited v. Paulin Chambers Com pany Limited et al., [1968] S.C.R. 134; Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corpora tion, [1969] S.C.R. 192; Campbell Manufacturing Co. Limited v. Thornhill Industries Limited et al. (1953), 13 Fox Pat. C. 198 (Ex.Ct.); Henkel Kommanditgesell- schaft Auf Aktien v. Super Dragon Import Export Inc. (1984), 2 C.P.R. (3d) 361 (F.C.T.D.); Polysar Ltd. v. Gesco Distributing Ltd. (1985), 6 C.P.R. (3d) 289 (F.C.T.D.); Murjani International Limited v. Universal Impex Co. Ltd., judgment dated November 28, 1986, Federal Court, Trial Division, T-1395-85, not yet report ed; Leaf Confections Ltd. v. Maple Leaf Gardens Ltd., judgment dated November 28, 1986, Federal Court, Trial Division, T-193-85, not yet reported.
REFERRED TO:
Sunway Fruit Products, Inc. v. Productos Caseros, S.A. (1964), 27 Fox Pat. C. 173 (Ex.Ct.).
COUNSEL:
William R. Meredith, Q.C. for appellant. Glen A. Bloom for respondent.
SOLICITORS:
Meredith & Finlayson, Ottawa, for appellant.
Osler, Hoskin & Harcourt, Ottawa, for respondent.
The following are the reasons for judgment rendered in English by
JOYAL J.: On April 7, 1981, the respondent Canadian Marketing International Limited filed an application to register a proposed trade mark "Newfie Duck" in association with sparkling wine.
The application was subsequently approved by the Registrar of Trade Marks under No. 467,666 and was advertised in the Trade Marks Journal. On May 10, 1982, the appellant, Andres Wines Limited, filed an opposition alleging confusion be tween the proposed mark and the appellant's regis tered marks "Baby Duck", "Duck Design" and "Duck Design" registered respectively under Nos.
179,861, 189,016 and 190,306 in respect of fer mented alcoholic beverages.
The appellant's opposition subsequently came on to be heard before Hearing Officer Troicuk and in his decision dated March 29, 1985, the Hearing Officer, on behalf of the Registrar of Trade Marks, rejected the opposition (see 4 C.P.R. (3d) 541).
The appellant appeals to this Court from that decision. It alleges that the Hearing Officer erred in his decision. Its arguments are based on the following premises:
1. The appellant is the owner of three marks, the word mark "Baby Duck" and the two "Duck Design" marks. These three marks have been used by the appellant in association the one with the other for many years.
2. The use by the appellant of these three marks has been extensive. Sales of wines carrying the mark on their labels have increased over the years from $800,000 to more than $10,000,000. These wines are sold all over Canada and have been extensively advertised and promoted in both the print and electronic media. As a result, the word mark "Baby Duck" and its duck designs have become well-known to the general public and have closely identified the appellant with its particular products.
Based on the foregoing, the appellant alleges:
1. That the Hearing Officer failed to apply the "confusion" tests set out in section 6 of the Act [Trade Marks Act, R.S.C. 1970, c. T-10] and in particular, failed to consider whether the use of the two trade marks concerned in the same area would likely lead to the conclusion that the wares associated with each have a common origin.
2. That the Hearing Officer failed to give due regard to all the surrounding circumstances as these are particularized in subsection 6(5) of the Act.
3. That the Hearing Officer failed to consider the strong element of distinctiveness which the appellant's mark is now enjoying by reason of
its extensive promotion and sales over many years.
4. Finally, that the Hearing Officer misapplied the onus rule which imposes on an applicant for a proposed trade mark the burden of disproving any likelihood of confusion with a registered trade mark.
I have already set in brief form the listing of the appellant's original mark "Baby Duck" and the two "Duck" designs with which the word mark has been associated. These designs are representative of a dancing duckling and of a walking duckling. The image of these ducklings on the appellant's labels creates an image of youthful cheer, merri ment and informality. I also observe that in adver tising its product under these marks, the appellant has used captions of the same genre, i.e.
— "It's nice to have a little Baby Duck around the house."
— "Raise a little Baby Duck and hatch a beautiful friendship."
— "Andres Baby Duck. Waddle they think of next."
— "It's everything it's quacked up to be."
As a result, both the visual image and the written captions have complemented each other in a homogeneous fashion to create a particular iden tification of the product. Also as a result, as the appellant claims, Andres Baby Duck is Canada's largest selling wine.
The pre-eminence of the Baby Duck marks for the purposes of the Trade Marks Act and of this appeal does not, however, provide the final answer. The issue before me must still be subjected to the test of confusion between the appellant's trade marks and the respondent's proposed mark "New- fie Duck".
Counsel for the respondent argues that its pro posed word mark meets the test of confusion. He submits that the use of the word "Duck" in asso ciation with wines is quite extensive. The appellant itself is owner of the marks "Big Duck", "Spaghet- ti Duck", "Little White Duck", "Petit Poussin",
"Bébé Canard", "Cold Duckling", among others. These are all associated marks and their several registrations, with the exception of "Big Duck" and "Spaghetti Duck", indicate the particular marketing direction taken by the appellant in iden tifying its various wines with the egregious little duck or duckling, standing out from the flock, so to speak.
Other vintners have also adopted the word "Duck" in association with fermented spirits. There is "Brights Duck", registered on January 30, 1980 under No. 240,280, with the word "Duck" disclaimed. There is "Daddy Duck" and "Fuddle Duck", both of which have since been expunged. There is also "Frosty Duck", registered June 6, 1980 under No. 246,217, "Sparkling Canada Duck" and several marks called "Cold Duck".
The respondent urges me to conclude from the state of the register that the word "Duck" in association with fermented spirits has become gen eric. Indeed, the appellant itself researched the etymology of the words "Cold Duck" and in its tent cards used in dining establishments offered this item of information:
For many years there has been a German tradition that every joyous party was brought to a happy ending with a night-cap. This night-cap consisted of mixing in a large bowl all of the still and sparkling wines remaining in the bottles. Everyone then toasted the cold end of the evening with a cup from this bowl— the drink became known as "COLD END" which in German is "KALTE ENDS". When the custom was introduced to North America a simple error in translation resulted in the "KALTE EN DE" of old Germany becoming the "KALTE ENTE" Or "COLD DUCK" of today. It is a delightful blend of Champagne and sparkling Burgundy.
Whether this etymological history is accurate or not is of minor concern. It would appear, accord ing to the evidence, to be generally accepted in the wine industry. It would explain the several regis trations of various trade marks bearing the words "Cold Duck" or variations thereof as in "Baby Duck", "Frosty Duck", "Canada Duck" and the like. It would explain why in the use of the word "Duck" among various vintners, no one appears to have objected to each other's use of it.
Well, there is always a first time. The appel lant's obvious hold of a major market share of "duck" wines under its trade mark "Baby Duck" and associated designs seemingly would put it in a position where it might now claim a more exclusive use of it. At least, it might claim that "Newfie" provokes the same image of youthful cheer and merriment as dancing or strutting ducklings, a pretention which might ruffle the feathers of some people in the fair Province of Newfoundland.
The appellant suggests that evidence of other marks on the register might be relevant if there were an issue whether the appellant's trade marks have a narrow scope. It might apply in the case of an infringement action involving the appellant's trade marks. Counsel states such is not the issue before me, the sole issue being whether or not "Newfie Duck" is confusing with its registered marks within the sense given to "confusion" by section 6 of the Act.
In elaborating on this, appellant's counsel emphasizes the surrounding circumstances under subsection 6(5) to which the Court must apply its mind to lead to a proper inference of confusion in accordance with subsection 6(2). He quotes the following passage from the Rowntree Company Limited v. Paulin Chambers Company Limited et al., [1968] S.C.R. 134, at page 136:
It will be seen from these provisions that the essential question to be determined in deciding whether or not a trade mark is confusing with a registered trade mark is whether its use would be likely to lead to the inference that the wares associated with it and those associated with the registered trade mark were produced or marketed by the same company.
In determing this issue, the Court or the Registrar is directed by s. 6(5) of the Act to "have regard to all the surrounding circumstances .... [Emphasis added.]
Counsel also refers to Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corpora tion, [1969] S.C.R. 192 and to the observations of Pigeon J. at pages 202 and 203 when dealing with the test of confusion between "Gold Band" and "Golden Circlet":
It is no doubt true that if one examines both marks carefully, he will readily distinguish them. However, this is not the basis
on which one should decide whether there is any likelihood of confusion.
The tribunal must bear in mind that the marks will not normally be seen side by side and guard against the danger that a person seeing the new mark may think that it is the same as one he has seen before, or even that it is a new or associated mark of the proprietor of the former mark. (Hals- bury's Laws of England, 3rd ed., vol. 38, No. 989, p. 590).
In The Matter of McDowell's Application ((1926), 43 R.P.C. 313), Sargant L.J. said at p. 338:
Even if the very slight distinction between "Nujol" and "Nuvol" were noticed, yet, having regard to the ordinary practice of large producers to register a series of similar marks to denote various grades of their produce, it seems to me highly probable that an inference of identity of origin would be drawn.
The practice referred to in this quotation is sanctioned by the provisions of s. 15 of the Trade Marks Act respecting "associated trade marks" and it should be borne in mind in considering the issue of confusion.
In the present case there is a distinct possibility that "Golden Circlet" would appear as a sort of diminutive of "Gold Band", especially on account of the meaning of "circlet". This, as well as the other considerations above stated, in my opinion, further supports the learned President's finding that confusion would be likely to occur.
Counsel for the appellant then check-marks the statutory indicia set out in subsection 6(5). He breaks them down as follows:
(a) The appellant's trade mark and designs are inherently distinctive of the owner's wines and have been used for a large number of years.
(b) The appellant's trade mark and design are now well-known throughout Canada.
(c) The nature of the wares covered by the com peting mark is identical, namely wines or fermented spirits.
(d) The nature of the trade is also identical: both wares would be sold in liquor and wine stores and available in drinking and dining lounges.
(e) There is a resemblance and an obvious similarity between "Baby Duck" and "Newfie Duck".
Counsel for the appellant then urges me to find that the use of the two marks side by side or in the same area would, to paraphase subsection 6(2), lead to the inference that the wines associated with
these trade marks are produced by the same person.
It is a telling and learned argument and were "Baby Duck" standing alone side by side with "Newfie Duck", I might have less problem with it. I would perhaps apply the reasoning in Campbell Manufacturing Co. Limited v. Thornhill Indus tries Limited et al. (1953), 13 Fox Pat. C. 198 (Ex.Ct.), respecting "Snow Goose" and "Blue Goose" and the reasoning in Henkel Kommandit- gesellschaft Auf Aktien v. Super Dragon Import Export Inc. (1984), 2 C.P.R. (3d) 361 (F.C.T.D.), respecting "Olicolor" and "Policolor". I am con cerned, however, with the realities. In wine stores, "Baby Duck" and its shelf-mate, "Newfie Duck", would not be engaged in a pas de deux in a spirit of mutual merriment but would perforce have to contend with braces of somewhat more sedate birds, e.g. "Canada Duck", "Brights Duck", "Frosty Duck", "Kool Duck" and "Malt Duck".
The quick question then is whether or not in applying the provisions of subsection 6(2) of the Act, the issue of confusion should be limited strict ly to the two competing marks or should it be extended to other marks as well. It stands to reason, in my view, that the distinctiveness of any individual registered mark is considerably attenuated if it has historically stood side by side with similar marks covering similar wares.
I am mindful of the dictum in Sunway Fruit Products, Inc. v. Productos Caseros, S.A. (1964), 27 Fox Pat. C. 173 (Ex.Ct.), that the state of the register is not a reason for holding that no confu sion exists. What the facts before me indicate, however, is that "Baby Duck" cannot be con sidered a strong mark in the statutory sense of the term. Its derivative character from "Cold Duck", an expression which I must find generic and descriptive of some types of wines leads to no other conclusion. I add to this as well the proliferation of other registered marks for wines joining the word "duck" to some other qualifying word and effec tively constricting the area of each mark's protec tion. It has been long established that:
... where a party has reached inside the common trade vocabulatory for a word mark and seeks to prevent competitors from doing the same thing, the range of protection to be given him would be more limited than in the case of an invented or unique or non-descriptive word ... [per Rand J. in General Motors Corp. v. Bellows, [1949] S.C.R. 678, at p. 691.]
In a similar vein, it has been recently stated that the more often a particular word is used as a trade mark, the less the protection afforded. This posi tion was taken by Cullen J. in allowing an appeal from the Registrar of Trade Marks who had refused to register "Esprit" for personal care prod ucts, e.g. hair shampoos, by reason of the prior registration and use of "Esprit de Corp" covering high fashion women's wear. In that case, S.C. Johnson & Son Inc. v. Esprit de Corp, Court Nos. T-2896-84 and T-2897-84, judgment dated December 15, 1986, unreported, Cullen J. noted some seventeen registrations bearing the words "esprit" or "esprite" either alone or with other qualifying words. His Lordship relied particularly on a British Columbia Court of Appeal decision in Prairie Maid Cereals Ltd. v. Christie, Brown & Co. Ltd. (1966), 48 C.P.R. 289, where he cites Maclean J.A. at page 295 as follows:
I have already referred to the circumstances that no evidence was called to indicate that anybody had been deceived by the get-up of the appellant's package. In dealing with this matter Rinfret, C.J.C., in Dastous and Rose Canned Food Products v. Mathews-Wells Co., Ltd., 12 C.P.R. 1 at p. 6-7, 10 Fox Pat. C. 1, [1950] S.C.R. 261 said:
"It should be noted at once that there is no evidence of confusion, or deception, by the buying public between the products of the respective parties, and this is very material. On this point it is stated by Kerly on Trade Marks at p. 294:—
"Where the marks have been circulating side by side in market where deception is alleged to be probable, the fact that no one appears to have been misled is very material."
This principle would appear to be applicable to the long range of "duck" wines trade marks already on the register. There is no evidence that they have not been flocking amicably together.
I agree with appellant's counsel that the wines under the "Baby Duck" label have been extensive-
ly and intelligently marketed, promoted and adver tised. The mark has also been in use for many years and its wares are now readily identifiable in all the communities across Canada. Wine under the "Baby Duck" label is the single most popular wine in the country. As such, it certainly invites a stronger measure of protection to the extent that it has become well-known and that it has been in use for some time. It is also deserving of some protec tion because the proposed mark "Newfie Duck" covers the same wares and the nature of the trade is identical. Were these the only indicia applicable, I might be tempted to apply the reasoning in Polysar Ltd. v. Gesco Distributing Ltd. (1985), 6 C.P.R. (3d) 289 (F.C.T.D.), and in Murjani International Limited v. Universal Impex Co. Ltd., T-1395-85, Dubé J., judgment dated Novem- ber 28, 1986, not yet reported (F.C.T.D.) and in Leaf Confections Ltd. v. Maple Leaf Gardens Ltd., T-193-85, Rouleau J., judgment dated November 28, 1986, not reported (F.C.T.D.). In this latter decision, Rouleau J. rules out "Leaf' and design for use in association with bubble gum against the registered trade mark "Toronto Maple Leafs" and a similar design, substantially on the grounds of the registered mark's strength.
In these cases, it is established that the con- siderata in subsection 6(5) need not have equal weight. Rouleau J. put it this way:
Nevertheless, it is clear that in considering the elements of subsection 6(5) of the Trade Marks Act, each element need not be interpreted as having equal weight. A particular case might justify greater significance being given to one criterion over others. As previously stated, I find the respondent's mark and design to be a strong one, well known throughout Canada.
In the particular case before me, I must give more weight to the considerations set out in para graph 6(5)(a) of the Act dealing with the inherent distinctiveness of the marks and in paragraph 6(5)(e) dealing with their resemblance in appear ance or sound or in the ideas suggested by them.
The word "duck" as applicable to wine is gener ic and substantially descriptive. It is applied to any number of different wines. No high degree of inherent distinctiveness is created in associating that word with either a baby duck or with Newfoundland.
I must reach a similar conclusion on the issue of resemblance or sound. The word "baby" and the word "Newfie", in my mind, have not that degree of phonetic or structural similarity to create confu sion on the "first impression" test, on the "first part of the word" test or on the "slurring" test.
There is left to consider the final criterion, namely the ideas suggested by "Baby Duck" and design and "Newfie Duck". The appellant makes a strong case that the words "Baby Duck" used in association with its designs of baby ducks suggest the same idealized style prevalent in Newfound- land with its informality and its abundance of cheer, merriment and mirth.
There is of course no evidence that these attrib utes are typical of Newfoundland. Neither is there evidence, I might add, that the mournful state of desolation and gloom mirrored in the play "Jacob's Wake", is any more typical of its population. Either way, should we enter into that debate, there is risk of touching upon the sensibilities s of a people whose qualities transcend the quick imagery which either this piece of litigation or that piece of theatre might provoke.
Certain it is that for purposes of the Trade Marks Act, I cannot readily fit into the same mold the ideas conveyed by prancing birds and the Newfie style.
I well recognize the appellant's concern as cogently articulated by counsel in assuring for itself the continuing integrity of its trade marks and of the product associated with them. Yet, the appellant has not only faced and survived the competition of wines carrying similar labels but appears to have done handsomely as well. One might surmise that the denial of statutory protec tion from a new entry into the market comes at a time when such protection might no longer be required.
Although I might not totally agree with all the reasoning of the Hearing Officer in his decision, I agree with his conclusion. This appeal is therefore dismissed with costs.
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