Judgments

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Decision Content

T-1395-85
Murjani International Limited (Appellant)
v.
Universal Impex Co. Ltd. (Respondent)
INDEXED AS: MURJANI INTERNATIONAL LTD. v. UNIVERSAL
I MPEX CO.
Trial Division, Dubé J.—Ottawa, November 19 and 28, 1986.
Trade marks — Registration — Opposition — Registrar finding small degree of resemblance between respondent's mark "Jon Vanderveldt" and appellant's "Gloria Vanderbilt", both used in association with clothing, not resulting in confu sion — Appeal — Publicity and use enhancing degree of distinctiveness — More than small degree of resemblance Imperfect recollection and effect of careless pronunciation to be taken into consideration — Resemblance in sound and appearance striking — Letters "J" and "g" likely confusing in bilingual setting — "Vanderveldt" obvious imitation — Spe cial protection granted by courts to person using own name in business — Failure by respondent to rebut presumption use of fictitious name showing intention to create confusion to own benefit — Appeal allowed — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 6(5), 16(3), 37(8), 56.
This is an appeal against the decision of the Registrar of Trade Marks rejecting the appellant's opposition to the respondent's application to register the trade mark "Jon Van- derveldt and Design" for use in association with clothing. The Registrar found that the respondent's trade mark was not confusing with the appellant's marks "Gloria Vanderbilt", "Gloria Vanderbilt Design" and "GV Design" also used in relation to clothing. The Registrar was of the view that when considered in their totalities and as a matter of first impression the trade marks bore a small degree of resemblance between them. The respective design features of the marks and the use of different first names such as "Gloria" and "Jon" accentuat ed the differences between the marks.
Held, the appeal should be allowed.
It is well established that surnames and letters are very weak in terms of distinctiveness and therefore deserve little protec tion. However, it has been held by this Court that distinctive ness may be enhanced through publicity and use. In the present case, there was uncontested evidence that the Vanderbilt signa ture and the initials G.V. have achieved high distinctiveness on the market following massive publicity campaigns in Canada and the United States. The Court held that the word Vander- bilt conveyed to the general public the impression of a distin guished foreign name which carried an aura of status and exclusivity.
On the question of the degree of resemblance between the marks, the Court referred to the well-known remarks of Lux-
moore L.J. in the English case of Rysta. According to His Lordship, it is not for the Court to enter into a "meticulous comparison of the two words letter by letter and syllable by syllable pronounced with the clarity to be expected from a teacher of elocution". The Court must rather "make allowance for imperfect recollection and the effect of careless pronuncia tion" on the part of a prospective customer. On that basis, the marks at issue bore more than a small degree of resemblance. The resemblance in sound was striking with the first two syllables being identical and the third one dropping off. The letters "j" and "g" could easily lead to confusion in a bilingual setting. Both designs appear in the form of signatures closely resembling one another. The word "Vanderveldt", a fictitious surname, was seen as an obvious imitation of the surname "Vanderbilt".
Courts have granted special protection to a person using his own name to carry out his business as opposed to the protection granted to a trade mark bearing a fictitious name. In the case at bar, Gloria Vanderbilt lent her own name, thereby her personal prestige to the appellant while the respondent merely invented a name for its trade mark thereby raising a presump tion that by adopting such a fictitious matching name, the respondent intended to create confusion to its own benefit. No evidence was filed to rebut that presumption. Nor did the respondent attempt to show that confusion was unlikely.
CASES JUDICIALLY CONSIDERED
APPLIED:
In the matter of an Application by Rysta Ld. to register a Trade Mark (1943), 60 R.P.C. 87 (C.A.).
CONSIDERED:
Sarah Coventry Inc. v. Abrahamian et al. (1985), 1 C.P.R. (3d) 238 (F.C.T.D.); GSW Ltd. v. Great West Steel Industries Ltd. (1976), 22 C.P.R. (2d) 154 (F.C.T.D.); Cochrane-Dunlop Hardware Ltd. v. Capital Diversified Industries Ltd. (1977), 30 C.P.R. (2d) 176 (Ont. C.A.); In the Matter of London Lubricants (1920) Limited.'s Application (1925), 42 R.P.C. 264 (C.A.); Joseph Rodgers & Sons Ld. v. W.N. Rodgers & Co. (1924), 41 R.P.C. 277 (Ch. D.); Marengo v. Daily Sketch and Sunday Graphic Ld. (1948), 65 R.P.C. 242 (H.L.); The American Distilling Company v. Bellows & Company, Inc., 88 USPQ 254 (Cal. C.A. 1951); British American Bank Note Company Limited v. Bank of America National Trust and Saving Association, [1983] 2 F.C. 778; 71 C.P.R. (2d) 26 (T.D.).
REFERRED TO:
Canadian Schenley Distilleries Ltd. v. Canada's Manito- ba Distillery Ltd. (1976), 25 C.P.R. (2d) 1 (F.C.T.D.); Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corporation, [ 1969] S.C.R. 192; 57 C.P.R. 1; Aristoc Ld. v. Rysta Ld. (1945), 62 R.P.C. 65 (H.L.); Battle Phar maceuticals v. The British Drug Houses, Limited, [ 1946] S.C.R. 50; Imperial Tobacco Co. of Canada Ltd. v. Philip Morris Inc. (1976), 27 C.P.R. (2d) 205; Faberge
Incorporated and Faberge of Canada Ltd. v. Holiday Magic Ltd. (1978), 39 C.P.R. (2d) 76; Parker-Knoll Limited v. Knoll International Limited, [1962] R.P.C. 265 (H.L.); The Hurlbut Company and The Hurlbut Shoe Company, [1925] S.C.R. 141; Burgess v. Burgess, 3 DeG. M. & G. 896 (C.A.).
COUNSEL:
Glen A. Bloom for appellant.
No one appearing for respondent.
SOLICITORS:
Osler, Hoskin & Harcourt, Ottawa, for appellant.
Lapointe Rosenstein, Montréal, for respon dent.
The following are the reasons for judgment rendered in English by
DUBÉ J.: The appellant ("Murjani") appeals pursuant to section 56 of the Trade Marks Act' ("the Act") from a decision of the Registrar of Trade Marks made pursuant to subsection 37(8) of the Act rejecting the appellant's opposition to the respondent's ("Universal") trade mark application number 456,248 for the trade mark "Jon Vanderveldt & Design".
The appeal is based on two grounds. Firstly, that the Registrar erred in holding that Universal's trade mark is not confusing with any of Murjani's three trade marks, "Gloria Vanderbilt", "Gloria Vanderbilt Design" and "GV Design" and second ly that the Registrar erred in holding that Univer sal is a person entitled to registration of the trade mark "Jon Vanderveldt & Design".
Murjani, a British Virgin Islands corporation, with the consent and authorization of Ms. Gloria Vanderbilt of New York, U.S.A., has used in Canada since 1979 the trade mark "Gloria Van- derbilt", the trade mark "Gloria Vanderbilt Design":
' R.S.C. 1970, c. T-10.
and the trade mark "GV Design":
t
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•
in association with certain articles of clothing.
On July 7, 1980 Universal filed in the Canadian Trade Marks Office its application number 456,248 to register the proposed trade mark:
(ffit tikAtir
for use in association with clothing.
During the examination of its application Uni versal admitted that its trade mark was an inven tion and did not, to the knowledge of Universal, constitute the signature of any person who was alive or had been living within the last thirty years. Murjani opposed the application on March 25, 1981 on the grounds mentioned earlier and filed four affidavits. On April 11, 1983 Universal's trade mark agents notified the Registrar that it would not be presenting any evidence. On Decem- ber 20, 1983, Murjani filed its written arguments in support of its opposition. Universal filed no written arguments. On April 30, 1985, the Regis trar rejected Murjani's opposition pursuant to sub section 37(8) of the Act.
The agents of Universal notified the Federal Court that they would not be attending the hear ing of this appeal of the decision of the Registrar and confirmed that their client "has never had any intention of contesting this appeal". Under similar circumstances Cattanach J. said in Canadian Schenley Distilleries Ltd. v. Canada's Manitoba Distillery Ltd. 2 that such a situation places the judge in an "invidious" position which was "almost tantamount to making him counsel for the respondent".
It is settled law that the Registrar's decision in the matter of confusing trade marks should be given great weight and ought not to be set aside lightly, but such reliance on the Registrar's deci sion on whether two trade marks are or are not confusingly similar must not go to the extent of relieving the judge hearing any appeal from the Registrar's decision of his own responsibility for determining the issue with due regard to all the relevant circumstances (see Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corpora tion, at pages 199-200 S.C.R.; 8-9 C.P.R.). 3
In his decision the Registrar correctly stated that the essential question to be determined is whether the applicant's trade mark is confusing with one or more of the opponent's trade mark (at the outset of the instant appeal, counsel for Mur- jani argued that the alleged confusion was with the "Gloria Vanderbilt Design" and the "GV Design" and not the "Gloria Vanderbilt" trade mark in block letters).
The Registrar also correctly stated that the material date for considering this question is the date of filing of Universal's application (July 16, 1980) in the case of the ground of opposition that Universal is not the person entitled to registration under subsection 16(3) of the Act and the date of filing of the statement of opposition (March 25, 1981) with respect to the ground of opposition that the applicant's trade mark is not distinctive.
2 (1976), 25 C.P.R. (2d) 1 (F.C.T.D.).
3 [1969] S.C.R. 192; 57 C.P.R. 1. (1985), 5 C.P.R. (3d) 115.
He also correctly pointed out that with respect to the first ground of opposition there is an initial burden upon Murjani to establish use of its trade mark prior to the date of filing of Universal's application and that Murjani had not abandoned its trade mark at that time. On that score, he properly ruled that the burden had clearly been discharged by the evidence filed by Murjani.
The Registrar also found that "the nature of the respective wares and trades are very similar". He held that there was a "degree of resemblance between the trade marks" and correctly described the similarities between them as follows [at page 118]:
The first two syllables of the surnames "Vanderbilt" and "Vanderveldt" are identical and the third syllables of each are similar in pronunciation. Especially since the pronunciation of the letter "g" in French is similar to the pronunciation of the letter "j" in English and vice versa, there is a significant resemblance between the letters "jv" and "gv".
However, he went on to say that surnames and letters are very weak in terms of distinctiveness and concluded on those grounds, as follows, that Universal's trade mark is not confusing [at page 118]:
It is well established, however, that surnames and letters are very weak in terms of distinctiveness. The average person is accustomed to making relatively fine distinctions between dif ferent surnames and between different letters. Because of this. the differences between the applicant's trade mark and the opponent's trade marks and in particular the various design features and the use of the name "Jon" instead of the name "Gloria" assume a relatively greater importance. When the applicant's trade mark and the opponent's trade marks are considered in their totalities and as a matter of first impression. I consider the degree of resemblance between them to be small. Because of this, despite the use and advertising by the opponent of its trade marks in Canada and the fact that the nature of the respective wares and trades are very similar, I am satisfied that the applicant's trade mark is not confusing with any of the opponent's trade marks within the meaning of s. 6 of the Trade Marks Act. Accordingly, I reject the opponent's grounds of opposition that the applicant is not the person entitled tc registration and that the applicant's trade mark is not distinctive.
The circumstances to be considered in determin ing whether trade marks are confusing are set out
in subsection 6(5) of the Act which, for conve nience, I am reproducing in full:
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
(a) the inherent distinctiveness of the trade marks or trade names and the extent to which they have become known;
(b) the length of time the trade marks or trade names have been in use;
(c) the nature of the wares, services or business;
(d) the nature of the trade; and
(e) the degree of resemblance between the trade marks or trade names in appearance or sound or in the ideas suggested by them.
Before dealing separately with each paragraph of subsection 6(5) it is important to restate the well-known principles established by Luxmoore L.J. In the Matter of an Application by Rysta Ld. to register a Trade Mark: 5
It is the person who only knows the one word, and has perhaps an imperfect recollection of it, who is likely to be deceived or confused. Little assistance, therefore, is to be obtained from a meticulous comparison of the two words letter by letter and syllable by syllable pronounced with the clarity to be expected from a teacher of elocution.
The Court must be careful to make allowance for imperfect recollection and the effect of careless pronunciation and speech on the part not only of the person seeking to buy under the trade description, but also of the shop assistant ministering to that person's wants.
(a) The inherent distinctiveness of the trade marks and the extent to which they have become known
At the outset, I must find that the four affida vits filed by Murjani are to be accepted as evi dence because the affiants were not cross- examined. 6 In my view, Murjani's uncontroverted
5 (1943), 60 R.P.C. 87 (C.A.), at p. 108. This principle was approved by both the House of Lords in Aristoc Ld. v. Rysta Ld. (1945), 62 R.P.C. 65 and the Supreme Court of Canada in Battle Pharmaceuticals v. The British Drug Houses, Limited, [1946] S.C.R. 50.
6 See Imperial Tobacco Co. of Canada Ltd. v. Philip Morris Inc. (1976), 27 C.P.R. (2d) 205, at p. 208; Faberge Incorpo rated and Faberge of Canada Ltd. v. Holiday Magic Ltd. (1978), 39 C.P.R. (2d) 76, at p. 78.
evidence establishes that "Gloria Vanderbilt Design" and "GV Design", as a result of massive advertising campaigns in both the United States and in Canada, had already become widely known in this country prior to the date of Universal's application. As a result, sales in both the United States and Canada were booming.
According to Hannah North, General Merchan dise Manager of The T. Eaton Co. Ltd., "by July 1980 the Gloria Vanderbilt mark had received widespread customer recognition in Canada" and the use of the proposed Vanderveldt trade mark "in association with articles of clothing would likely cause confusion in the Canadian public as to the source of such clothing".
According to the affidavit of Kaisar Ahmad, the Senior Vice-President of Murjani, Murjani "was looking for a status trade mark" and selected the Vanderbilt name which was at that time already widely known in the United States and elsewhere in the world. Gloria Vanderbilt, a designer of some renown, was the great-great-granddaughter of Commodore Cornelius Vanderbilt, founder of a vast railroad fortune in the United States. The sale of Gloria Vanderbilt clothing was "an immediate success on the U.S. market". Total sales started at $6,700,000 U.S. in 1978 and rose to $168,750,000 U.S. in 1981. Sales in Canada for that year reached $1,000,000 U.S. Advertising expenditures in Canada for that year were of $400,000 U.S.
The proposition of the Registrar that surnames and letters are weak in terms of distinctiveness and therefore deserve little protection is well estab lished. However, the distinctiveness of such trade marks may be enhanced through publicity and use.
In Sarah Coventry Inc. v. Abrahamian et al.,' I held that the trade mark "Zaréh" does not cause confusion with the trade mark "Sarah". Relying
7 (1985), 1 C.P.R. (3d) 238 (F.C.T.D.).
on GSW Ltd. v. Great West Steel Industries Ltd.' I also found that "the degree of distinctiveness attributed to a weak mark may be enhanced through intensive use".
In GSW Ltd. v. Great West Steel Industries Ltd., above referred to, Cattanach J. said at page 167:
However a "weak" mark by long and extensive use might become distinctive. For the reasons expressed above I am of the opinion that the appellant has failed to establish that its mark had become distinctive.
In Cochrane-Dunlop Hardware Ltd. v. Capital Diversified Industries Ltd., 9 Blair, J. A. of the Ontario Court of Appeal referred to Cattanach J. in the above decision and remarked that in that case the trade mark "GSW" in block letters "vir- tually without embellishment" was weak, but found (at page 183) that "the result might have been different had the mark consisted not only of letters of the alphabet but also design features giving it greater distinctiveness". In the instance case, of course, the Vanderbilt name and initials are presented in the signature form and according to the uncontested evidence aforementioned both the Vanderbilt signature and the initials G.V. have achieved high distinctiveness on the market follow ing crash publicity campaigns in both countries. There is also evidence of a spillover of the Ameri- can advertising campaign into this country.
The word Vanderbilt conveys to me, and I believe that would be the reaction of the general public, the impression of a distinguished foreign name, probably of Dutch extraction, which carries a rich aura of status and exclusivity.
(b) The length of time the trade marks or trade names have been in use
The "Gloria Vanderbilt Design" and the "GV Design" marks have been used in Canada since mid-1979 and at least as early as March 19, 1980
s (1976), 22 C.P.R. (2d) 154 (F.C.T.D.). 9 (1977), 30 C.P.R. (2d) 176 (Ont. C.A.).
respectively. There is no evidence that the "Jon Vanderveldt & Design" mark has ever been used. In the absence of evidence of use of the Vander- veldt mark, there is no burden upon Murjani to file evidence of actual confusion between the marks.
(c) The nature of the wares
The wares of both parties are articles of clothing.
(d) The nature of the trade
According to the evidence, the wares of Murjani are sold to the Canadian public through nation wide retail department stores. There is no evidence as to how and where Universal would sell its wares.
(e) The degree of resemblance between the marks, appearance, sound or ideas suggested
The Registrar found a "degree of resemblance" between the marks. I would go further than that. At first sight, the word Vanderveldt appeared to me to be an obvious imitation of the surname Vanderbilt. Both words look so much alike and sound so similar that the former, not being the surname of any person, was clearly created to come very close to the latter without being identical.
Moreover, both designs appear in the form of signatures which closely resemble one another, certainly enough in my view to create confusion at first blush. And the initials, "JV" and "GV", are as close as you can come in pairing similar combi nations of two letters from the alphabet. The letters "J" and "G" could easily lead to confusion, as the Registrar noted, in a bilingual setting. Some bilingual people pause before pronouncing either a "j" or a "g" in either language so as to avoid possible mispronunciation. I know I do.
Returning to the well-known quote of Luxmoore L.J., it is not for the Court to enter into a "meticu-
lous comparison of the two words letter by letter and syllable by syllable pronounced with the clari ty to be expected from a teacher of elocution". The Court must "make allowance for imperfect recol lection and the effect of careless pronunciation" on the part of a prospective customer and "also of the shop assistant ministering to that person's wants".
The resemblance in sound between the two marks is even more telling, with the first two syllables being identical and the third one drop ping off. As stated by Sargeant L.J. in In the Matter of London Lubricants (1920) Limited.'s Application: 10
... the tendency of persons using the English language to slur the termination of words also has the effect necessarily that the beginning of words is accentuated in comparison, and in my judgment, the first syllable of a word is, as a rule, far the most important for the purpose of distinction.
Other surrounding circumstances (subsection 6(5))
There is a substantial body of law and jurispru dence granting special protection to a person using his or her name to carry out his or her business, as opposed to the protection granted to a trade mark bearing a fictitious name. In Joseph Rodgers & Sons Ld. v. W.N. Rodgers & Co.," Mr. Justice Romer of the High Court of Justice of England, discussed the law applicable to the matter and said as follows at page 291:
Arriving at that conclusion of fact, what is the law that is applicable to the matter? I think the law can be very simply stated. It is the law of this land that no man is entitled to carry on his business in such a way as to represent that it is the business of another, or is in any way connected with the business of another; that is the first proposition. The second proposition is, that no man is entitled so to describe or mark his goods as to represent that the goods are the goods of another. To the first proposition there is, I myself think, an exception: a man, in my opinion, is entitled to carry on his business in his own name so long as he does not do anything more than that to cause confusion with the business of another, and so long as he does it honestly. It is an exception to the rule which has of necessity been established.
In Parker-Knoll Limited v. Knoll International
10 (1925), 42 R.P.C. 264 (C.A.), at p. 279.
11 (1924), 41 R.P.C. 277 (Ch. D.).
Limited, 12 Lord Morris of Borth-y-Gest set out six propositions which would apply to this matter. In proposition 4 he quoted with approval Romer J. from the above judgment and also Lord Simonds who said as follows in Marengo v. Daily Sketch and Sunday Graphic Ld. 13 (at page 251):
It is an unassailable general proposition that the interests alike of honest traders and of the public require that the goods of A should not be confused with the goods of B. But that proposi tion is subject to the qualification that a man must be allowed to trade in his own name and, if some confusion results, that is a lesser evil than that a man should be deprived of what would appear to be a natural and inherent right. But ... it is a fantastic gloss upon this well-established qualification to say that it justifies a trader in placing upon his goods a mark which, however much he may intend it to signify his name, is yet liable to suggest to reasonable men the name of another.
In The Hurlbut Company and The Hurlbut Shoe Company, 14 the Supreme Court of Canada [at page 147] referred to a passage in the judg ment of Turner L.J. in Burgess v. Burgess 15 [at page 904] which it accepted as a true principle of law:
Where a person is selling goods under a particular name, and another person, not having that name, is using it, it may be presumed that he so uses it to represent the goods sold by himself as the goods of the person whose name he uses; but where the defendant sells goods under his own name, and it happens that the plaintiff has the same name, it does not follow that the defendant is selling his goods as the goods of the plaintiff.
Finally, in The American Distilling Company v. Bellows & Company, Inc., 16 the California District Court of Appeal, said at page 259:
In the instant case we have the borrowed surname of an individual who has no interest in appellant's business.
The courts will go to some lengths to protect the right of an individual in his own surname ....
12 [1962] R.P.C. 265 (H.L.), at p. 279.
13 (1948), 65 R.P.C. 242 (H.L.).
14 [1925] S.C.R. 141.
15 3 DeG. M. & G. 896 (C.A.).
16 88 USPQ 254 (Cal. C.A. (1951)).
It must be kept in mind, therefore, that if appellant's own name were "Fellows" it would have a right in that name that the courts would protect to the greatest extent possible. Appellant here, however, had an unlimited choice, and he would be under a duty to choose a name that may not be considered a colorable imitation of another trade mark.
In the case at bar, it must be borne in mind that Gloria Vanderbilt lent her own name, thus her considerable personal status and prestige, to Mur- jani for its trade mark, whereas Universal merely invented a name for its own trade mark thereby raising a presumption that, by adopting such a fictitious matching name, Universal intended to create confusion to its own benefit. No evidence was filed to rebut that presumption. On the other hand, the uncontradicted evidence is to the effect that Murjani acted honestly in carrying out its business under its purposeful trade mark.
Had Universal appeared at this hearing, it might have contended that where an opponent to the registration of a trade mark relies on prior use, the onus lies upon him to establish a reputation in the trade in connection with a mark of some character. That very argument was addressed by Cattanach J. in British American Bank Note Company Limited v. Bank of America National Trust and Saving Association." He said as follows (at pages 792 F.C.; 35 C.P.R.):
In my view that stark statement is much too simplified.
The onus is upon an applicant for the registration of a trade mark to establish his right thereto and that onus is constant upon him (see Eno v. Dunn (1890), 15 App. Cas. 252 [H.L.]) and that includes the onus of showing that confusion is unlikely.
An onus never shifts but a burden of proof does. The applicant may rebut the proof proffered by the opponent.
In this instance, the applicant Universal has not even attempted to show that confusion is unlikely and has made no effort to rebut the proof prof fered by the opponent Murjani.
For all those reasons, the appeal is allowed with costs.
'' [1983] 2 F.C. 778; 71 C.P.R. (2d) 26 (T.D.).
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