Judgments

Decision Information

Decision Content

A-13-86
Pizza Pizza Limited (Appellant)
v.
Registrar of Trade Marks (Respondent)
INDEXED AS: PIZZA PIZZA LTD. v. CANADA (REGISTRAR OF TRADE MARKS) (C.A.)
Court of Appeal, Pratte, Urie and MacGuigan JJ.A.—Toronto, May 25; Ottawa, June 6, 1989.
Trade marks — Registration — Appeal from judgment dismissing appeal from refusal of registration of "967-1l11" as trade mark of pizza take-out business — "967-1111" telephone number of Toronto outlets — Number used on all product boxes, in all printed advertising materials and on store signs — Advertised extensively — Appeal allowed — Trial Judge and Registrar erring in holding number not trade mark within s. 2 definition — That functions as telephone number not precluding registration — Not solely functional — Mark highly indicative of appellant and its products — Fulfills three requirements of trade mark in s. 2 — Trial Judge also erred in holding telephone number not registrable — Registration of trade mark granting monopoly only for use in association with wares and services for which registration granted.
This was an appeal from the Trial Division decision dismiss ing the appeal from the Registrar's refusal to register "967- 1111" as a trade mark for the appellant's pizza take-out business. The Toronto-area outlets use "967-1111" on all prod uct boxes, in all printed advertising and on store signs. It is also the telephone number of all of the outlets. The Registrar and the Trial Judge held that "967-111l" was not within the statutory definition of trade mark. The Trial Judge further found that a monopoly interest in a series of seven digits, which may be a telephone number, cannot be registered. The question is whether the numerical combination is a registrable trade mark.
Held, the appeal should be allowed.
Per Pratte J.A.: The case law relied upon to support the position that a telephone number is not registrable is distin guishable. The marks that have been held to be functional were part of the wares in respect of which registration was sought, so that the registration of those marks would have granted the applicants a monopoly on functional elements of their wares; the applicants would have obtained patents under the guise of
trade marks. As the instant trade mark is not functional in that sense, its functional character does not preclude registration.
Per Urie J.A. (MacGuigan J.A. concurring): The fact that a telephone number functions to enable a person to contact a predesignated instrument does not preclude registration of the number, based upon the case law relied upon by the Registrar and Trial Judge. "967-111l" was not solely functional. It was not utilized merely as an indication of quality, size, grade or the like. Although there was a functional element in its use as a telephone number, that was not its only function. The combina tion was deliberately chosen for its inherent suitability to identify the source of the repondent's products and the quality standards which are associated with those products, and the mark is now highly indicative of Pizza Pizza Limited and its products and distinguishes them from the products and services of others. It meets the three requirements of the section 2 definition of a trade mark.
The Trial Judge also erred in holding that a monopoly interest in a telephone number cannot be registered. The regis tration of a trade mark grants a monopoly in that exact sequence of numbers only for use in association with the wares and services for which the registration is granted.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Trade Marks Act, R.S.C. 1970, c. T-10, ss. 2, 12, 36.
CASES JUDICIALLY CONSIDERED
DISTINGUISHED:
Parke, Davis & Co., Ltd. v. Empire Laboratories Ltd., [1964] Ex.C.R. 399; (1963), 41 C.P.R. 121; aff'd [1964] S.C.R. 351; Elgin Handles Ltd. v. Welland Vale Mfg. Co. Ltd., [1965] 1 Ex.C.R. 3; (1964), 43 C.P.R. 20; W.J. Hughes & Sons "Corn Flower" Ltd. v. Morawiec (1970), 62 C.P.R. 21 (Ex. Ct.); Adidas (Canada) Ltd. v. Colins Inc. (1978), 38 C.P.R. (2d) 145 (F.C.T.D.).
REVERSED:
Pizza Pizza Ltd. v. Canada (Registrar of Trade Marks) (1985), 7 C.P.R. (3d) 428 (F.C.T.D.).
AUTHORS CITED
Fox, H. G. The Canadian Law of Trade Marks and Unfair Competition, 3d ed. Toronto: Carswell, 1972.
COUNSEL:
Marilyn Field-Marsham and Donna White
for appellant.
Marlene I. Thomas for respondent.
SOLICITORS:
Osler, Hoskin & Harcourt, Toronto, for appellant.
Deputy Attorney General of Canada for respondent.
The following are the reasons for judgment rendered in English by
PRATTE J.A.: I agree with my brother Urie that this appeal must be allowed.
Counsel for the respondent tried to support the decision of the Trial Division [(1985), 7 C.P.R. (3d) 428] on only one ground, namely, that a telephone number is not registrable as a trade mark because, according to the jurisprudence,' a mark that is primarily designed to perform a func tion cannot be the subject of a trade mark. This position, in my view, reveals a complete misunder standing of that jurisprudence. In those cases, the marks that were held to be functional were, in effect, part of the wares in respect of which regis tration was sought so that the registration of those marks would have granted the applicants a monopoly on functional elements or characteristics of their wares; the applicants would, in effect, have obtained patents under the guise of trade marks. The situation here is entirely different. The trade mark applied for by the appellant is not functional in that sense; for that reason, its functional charac ter does not make it "not registrable".
I would dispose of the appeal as suggested by
my brother Urie.
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The following are the reasons for judgment rendered in English by
URIE J.A.: This appeal is from a judgment of Muldoon J. in the Trial Division whereby he dis
' Parke, Davis & Co., Ltd. v. Empire Laboratories Ltd., [1964] Ex.C.R. 399; (1963), 41 C.P.R. 121 affd [1964] S.C.R. 351.
Elgin Handles Ltd. v. Welland Vale Mfg. Co. Ltd., [1965] 1 Ex.C.R. 3; (1964), 43 C.P.R. 20.
missed the appeal of the appellant from the deci sion of the Registrar of Trade Marks refusing the appellant's application to register as its trade mark, the numerical combination "967-1111". The relevant facts, none of which were in dispute, follow:
The appellant is in the business of owning and operating restaurants and food take-out and deliv ery facilities offering, among other things, pizza, ravioli, lasagna, spaghetti and submarine sand wiches. It also carries on the business of franchis ing such operations. As I understand it, at the time of trial, over 60 owned or franchised outlets exist ed in the Metropolitan Toronto area. All of such outlets are substantially identical and make exten sive use of the appellant's trade mark "967-1111", which also happens to be the telephone number of all of the outlets, either as an owned proprietorship or pursuant to the licence granted by the appellant to the franchisee for the operation thereof.
According to the evidence, the trade mark "967- 1111" was adopted by the appellant with the intention that it be used on all products and in all advertising for the purpose of distinguishing, or so as to distinguish, the appellant's products from those of others. Use and advertising of the mark has been extensive. It is used on all product boxes used in the Toronto area, in all printed advertising materials and on store signs in prominent print. The respondent does not dispute that in the manner in which the numerical combination "967- 1111" is utilized by the appellant, such combina tion appears as a separate and distinct element, which stands on its own, and creates an actual and substantial distinction between the appellant and other traders and between its products and those of others. The sole question is, is it a registrable trade mark under the Trade Marks Act [R.S.C. 1970, c. T-10] ("the Act")?
The appellant, through experts in the field of linguistics and marketing, adduced evidence that a seven-digit number is capable of distinguishing goods and services in the retail market place and
that, through extensive use and advertising by the appellant, the numerical combination "967-1111" does serve to identify the appellant and to distin guish its wares and services from those of others. The learned Trial Judge properly, in my view, accorded that affidavit evidence little weight. The function of the mark and its capability of being a trade mark is the very issue upon which the Regis trar is required to decide and while he may receive evidence to assist in his determination, the weight to be accorded the evidence, if any, is for him and, on an appeal to the Trial Division, the Judge, is called upon to decide.
The respondent, on January 24, 1984, refused the appellant's application for registration of the combination "967-1111" on the ground that the subject of the application was not a trade mark within the meaning of section 2 of the Act. That section reads as follows:
2. In this Act,
"trade mark" means
(a) a mark is used by a person for the purpose of distinguish ing or so as to distinguish wares or services manufactured, sold, leased, hired or performed by him from those manufac tured, sold, leased, hired or performed by others,
(b) a certification mark,
(c) a distinguishing guise, or
(d) a proposed trade mark;
The appellant's appeal from the Registrar's rejection of its application, was dismissed by Mul- doon J. on December 20, 1985. He upheld the Registrar's decision that the numerical combina tion "967-1111" is not a trade mark within the meaning of section 2 and further found that a monopoly interest in a series of seven digits which are, or might be, a telephone number, cannot be registered. It is from that judgment that this appeal is brought.
The finding of the Trial Judge is made in the following excerpts from his reasons: 2
2 (1985), 7 C.P.R. (3d) 428, (F.C.T.D.) at pp. 430-431.
There are good reasons for declining to consider a telephone number (whatever else the series of seven digits may also be) to be a trade mark. A trade mark operates to confer a monopoly throughout Canada. A trade mark is to be used, in this case by a corporation, "for the purpose of distinguishing or so as to distinguish wares or services manufactured, sold, leased, hired or performed by [it] from those manufactured, sold, leased, hired or performed by others", to paraphrase the definition expressed in s. 2 of the Act. A registered trade mark gives the owner and those claiming under or through the owner the right to seek and the probability of obtaining stringent remedies against anyone who infringes it, in Canada.
A telephone number represents a sequence of electrically generated signals assigned by the operator of the telephone utility to a subscriber whereby the subscriber's instrument may be contacted for sound (usually talking) transmissions from any other instrument in the telephone region, system or network. In a very real sense that seven-digit number sequence belongs to the telephone system, if not to its owners and operators. It is a necessary function of the telephone system, translated into alphabetic letters sometimes, and most often into numerical digits, which always correspond to the electrical signals sequence needed to contact the instrument to which the tele phone company has assigned them.
It is apparent that neither a law of Canada, nor a federal official, the registrar, acting within the scope of his authority under that law, can accord a monopoly trade mark for or to a telephone number. The telephone company (Bell Canada in regard to the appellant's Toronto telephone No. 967-1111) due to the exigencies of its circuits, local exchanges, regional exchanges or interprovincial agreements may at any time have to assign a different number to the appellant, and assign the appellant's number to some other subscriber, or perhaps, to eliminate the number entirely. What then becomes of the registered trade mark? In the western provinces the telephone utilities are owned by the Crown in right of the provinces. Are these Crown corporations to be fettered by the appellant's trade mark, if registered? Would every telephone company in Canada have to reserve or revoke 967-1111, because of a registered trade mark, lest that number be used in association with commercial wares or services?
Those possible results would be absurd, and that is good enough reason to support the registrar's conclusion that 967- 1 I l 1, or any other telephone number in Canada, is not a trade mark within the meaning of the Trade Marks Act.
One cannot register a monopoly interest in a series of seven digits which are, or might be, a telephone number, but such pronouncement does not necessarily apply to shorter or longer sequences of digits unless they too have the same or similar characteristics.
The respondent Registrar in his decision expressed his view as to why the numerical combi nation was not registrable as a trade mark in the following way:
Webster's New International Dictionary (3rd edition) defines a telephone number as: "A number assigned to a telephone instrument and used by a person to call that tele phone." In any opinion, a telephone number, by definition, functions to enable a person to contact a predesignated instru ment, it cannot function to distinguish applicant's wares and services from those of others and thus does not fall within the statutory definition of a trade mark.
Accordingly, since the subject of this application is not a trade mark within the meaning of the Trade Marks Act, this application for its registration as a trade mark is refused.
Counsel for the appellant, in her factum submit ted, first, that both the respondent and Muldoon J. erred in holding that the definition of "trade mark" in section 2 of the Act did not include the numerical combination of "967-1111" which was the subject-matter of the appellant's application, and, secondly, that the learned Judge had erred in supporting the Registrar's decision on the basis of speculation about the impact on the telephone company of permitting the subject-matter of the appellant's application to become registered, there being no evidence to support such speculation.
The decisions of both the respondent and the Trial Judge appear to be based on the reasoning that a telephone number "functions to enable a person to contact a predesignated instrument". There can be no doubt that this is true. But the question then arises does this "function" preclude registration of the number on the basis of the jurisprudence arising from the following cases upon which both the Registrar and the Judge appear to have relied?
Parke, Davis & Co., Ltd. v. Empire Laborato ries Ltd., [1964] Ex.C.R. 399; (1963), 41 C.P.R. 121, is a judgment of Noël J. (as he then was) in the Exchequer Court wherein he found [at pages 419 Ex.C.R.; 141 C.P.R.] that the alleged mark, which was a coloured band sealing together two halves of a capsule containing pharmaceutical preparations, was invalid as a trade mark because it "... undoubtedly monopolizes ... all the forms
of the functional parts of the colour bonded sealed capsules". (Emphasis added.)
Elgin Handles Ltd. v. Welland Vale Mfg. Co. Ltd., [1965] 1 Ex.C.R. 3; (1964), 43 C.P.R. 20 was also a judgment of the Exchequer Court. The mark for which expungement was sought, consist ed of a design where there was an accentuation in darker colouring of the grain of the wood of tool handles, the surface of which had been fire-hard ened, to accomplish the desired purpose. Jackett P. (as he then was) said at pages 7 Ex.C.R.; 24 C.P.R.
I have therefore come to the conclusion on the evidence that the fire hardening process is primarily designed to improve wooden handles as objects of commerce and has therefore a functional use or characteristic. It follows that the change cannot be a trade mark. [Emphasis added.]
In both W.J. Hughes & Sons "Corn Flower" Ltd. v. Morawiec (1970), 62 C.P.R. 21 (Ex. Ct.); and Adidas (Canada) Ltd. v. Colins Inc. (1978), 38 C.P.R. (2d) 145 (F.C.T.D.) the alleged trade marks—a design cut into glassware in the first case and three stripes on sports wear in the second—performed only ornamental functions in each case and could not be trade marks.
All four judgments are readily distinguishable, in my view. First, it was not alleged in this case that the numerical combination was used for the purpose of ornamentation. Secondly, neither could it be said, as counsel pointed out, to be solely functional. By that she meant that the combina tion was not utilized solely as an indication of quality, size, grade or the like of the appellant's wares. If it were it would be precluded from registration by virtue of paragraph 12(1) (b) of the Act as being descriptive or misdescriptive of the wares. As I see it, while undoubtedly there is a functional element in its use by the appellant, in that to place a telephone order for any of the appellant's products the numerical combination that is the telephone number allotted by the tele phone company to the appellant must be utilized, that is not its sole function. Rather, it is totally unrelated to the wares themselves in the sense
that, for example, a numbered part of some prod uct would be so related which is purely a function al use. It is true that the selection by the appellant, of the numerical combination that is its telephone number cannot be said to have been fortuitous. It was a deliberate choice made by the appellant's now Chairman, Michael Overs, from among 20 or 30 choices offered to him "because it was inherent ly suited to use by Pizza Pizza Limited to identify to its customers and potential customers the source of Pizza Pizza Limited's products and the quality standards which have been and are now associated with those products" 3 and the mark is now "highly indicative of Pizza Pizza Limited and its products and distinguishes Pizza Pizza Limited's products and services from those of others". 4
None of the foregoing evidence was contradicted nor even disputed. That being so, it is a trade mark and I fail to understand why simply because it also functions as the appellant's telephone number can deprive it of registrability as such a trade mark. It fulfils the requirements of the definition of "trade mark" in section 2 of the Act in that it is
(a) a mark that is used by a person (a corporation),
(b) that it is used for the purpose of distinguishing wares manufactured or sold by it, and
(c) it distinguishes such wares from those sold by others.
That being so on an application to register it, if he is not satisfied under subsection 36(1) that the trade mark should not be registered, the Registrar must register it, 5 in the absence of successful oppo sition, its registration not being precluded by sub
' Appeal Book, p. 154, para. 7.
4 Appeal Book, p. 155, para. 10.
5 Fox, H. G. The Canadian Law of Trade Marks and Unfair Competition, 3d ed., Toronto: Carswell, 1972, p. 81.
section 12(1). 6 Even if it fails the tests of registra- bility under that subsection, it is possible that it might be registered under subsection 12(2) if the mark has been so used in Canada as to have become distinctive of the applicant.
For all of the foregoing reasons, I am of the opinion that the Registrar erred in rejecting the application for registration of the appellant's mark on the grounds upon which he based the objection. Consequently, I am of the further opinion that the learned Trial Judge wrongly dismissed the appel lant's appeal from the Registrar's rejection of the application so that the appeal to this Court must succeed.
I ought not to leave the matter without pointing out that in my view, the Trial Judge was mistaken when he said without qualification [at page 431] that "One cannot register a monopoly interest in a series of seven digits which are, or might be, a telephone number ...". He cited no authority for such a proposition since I suspect that no such authority exists. More importantly, the grant of registration of a trade mark, whether a number in combination or not, grants monopoly in that exact sequence of numbers, whether a telephone number or not, only for use in association with the wares and services for which the registration is granted. Nor will that registration hinder in any way any of the rights of the telephone company, as far as I am aware. If, after this matter is referred back to him
6 12. (1) Subject to section 13, a trade mark is registrable if it is not
(a) a word that is primarily merely the name or the surname of an individual who is living or has died within the preceding thirty years;
(b) whether depicted, written or sounded, either clearly descriptive or deceptively misdescriptive in the English or French languages of the character or quality of the wares or services in association with which it is used or proposed to be used or of the conditions of or the persons employed in their production or of their place of origin;
(e) the name in any language of any of the wares or services in connection with which it is used or proposed to be used;
(d) confusing with a registered trade mark; or
(e) a mark of which the adoption is prohibited by section 9 or 10.
the Registrar sees fit to grant the application for registration, section 36 of the Act requires him to advertise in the manner prescribed. The telephone company may, as a result, make its objections to the registration known at that time. If that com pany is not satisfied with the Registrar's decision to permit registration despite its objections, there are other remedies available to it to effect rectifi cation of such perceived wrongs.
I would, therefore, allow the appeal, set aside the judgment appealed from and remit the matter to the respondent for further prosecution of the appellant's application for registration.
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The following are the reasons for judgment rendered in English by
MAcGUIGAN J.A.: I agree with the reasons for judgment of Urie J.A. and with his proposed dis position of the case.
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