Boston Chicken Trade-Mark Lacked Distinctiveness, Federal Court of Appeal Rules


BOSTONCHICKENTRADE-MARKLACKEDDISTINCTIVENESS,FEDERALCOURTOF
APPEALRULES

BarryGamache
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
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ArecentjudgmentofCanada’sFederalCourtofAppealhaspartially
overturnedaTrialDivisiondecisionwhichhaddismissedBostonPizza
InternationalInc.’sapplicationtohaveBostonChickenInc.’stwotrade-mark
registrationsexpunged(BostonPizzaInternationalInc.v.BostonChickenInc.
etal,2003F.C.A.120(March7,2003,Rothstein,PelletierandMalone,JJ.A.
(Note:ThedecisionoftheTrialDivisionoftheFederalCourtwasreviewedat
(2001)15-12W.I.P.R.4-5)).
BostonPizzaInternationalInc.(hereafter:«BPI»)hadunsuccessfullyappliedto
theTrialDivisionoftheFederalCourttoobtaintheexpungementoftwo
trade-markregistrationsstandinginthenameofBostonChickenInc.
(hereafter:«BCI»).TheseregistrationscoveredthewordmarkBOSTON
CHICKENanditsdesignversionwhichdidnotincludeanywords.NadonJ.
hadconcludedtherewasnolikelihoodofconfusionbetweentheparties’
respectivemarksi.e.BOSTONCHICKENandthedesignversionontheone
handandBOSTONPIZZAontheother.
Onappeal,BPIarguedagroundforexpungementraisedbeforetheTrial
Divisioni.e.lackofdistinctivenessofBCI’sBOSTONCHICKENtrade-markand
reliedonsubsection18(1)(b)ofCanada’sTrade-marksActR.S.C.1985c.T-13
whichprovidesthattheregistrationofatrade-markisinvalidifthetrade-mark
isnotdistinctiveatthetimeproceedingsbringingthevalidityofthe
registrationintoquestionarecommenced.BPIarguedonappealthisground
forexpungementinlightofNadonJ.’sconclusionthatBCI’sBOSTONCHICKEN
trade-marklackedinherentdistinctiveness,anassessmentthatwasmade
whenanalyzingtheissueofconfusionbetweentheparties’trade-marks.(No
suchfindingoflackofinherentdistinctivenesswasmade,however,regarding
thedesignversionoftheBOSTONCHICKENmark.)Additionally,theevidence
hadrevealedthattheBOSTONCHICKENtrade-markhadbarelyeverbeen
usedinCanada.


NadonJ.hadalsoconcludedthatBPI’sBOSTONPIZZAtrade-markwasalso
notinherentlydistinctive;however,themarkhadacquireddistinctiveness
throughimportantuseofthemarkinCanadainassociationwithrestaurant
services.Thisillustratedthepointthatatrade-marklackinginherent
distinctivenesscouldacquiredistinctivenessthroughuseinCanada.
BPIarguedthatsincetheBOSTONCHICKENmarkwasnotinherently
distinctiveandbecausethetrade-markhadnotbeenusedinCanada–and
couldthereforenothaveacquireddistinctivenessthroughuse-theTrial
Judgeshouldhaveexpungedtheregistrationconsideringtheclearlanguage
ofsubsection18(1)(b)oftheAct.
ThisargumentwasfavorablyreceivedbytheCourtofAppealwherePelletier
J.wrotefortheCourt:”NadonJ.’sfindingthattheBOSTONCHICKENmark
lackedinherentdistinctivenessamountstoafindingthatthemarkisnot
adaptedtodistinguishtherespondent’sservicesfromthoseofothertraders.
Consequently,sincethemarkdoesnotactuallydistinguishtherespondent’s
servicesfromthoseofothertraders,andisnotadaptedtodoso,its
registrationisinvalidbecauseofitslackofdistinctiveness.”
TheCourtofAppealthereforeallowedtheappealregardingBPI’sattackon
theBOSTONCHICKENregistration.However,asNadonJ.didnotmakea
findingthattheregistrationcoveringBCI’sdesignmarklackedinherent
distinctiveness,theappealregardingtherejectionoftherequesttoexpunge
thisothertrade-markwasdismissed.
Thisjudgmentmeansthattrade-markownerswhoachieveregistrationofvery
weaktrade-marksi.e.trade-markswhohavehardlyanyornoinherent
distinctivecharactershouldusetheirtrade-marksassoonaspossible.This
decisionsendsaclearsignalthatregisteredmarkswhoarenotinherently
distinctiveandwhohavenotacquireddistinctivenessthroughuseinCanada
maybeatriskinexpungementproceedingsforlackofdistinctiveness.
Theinterestingaspectofthiscaseisthatthepartymovingforexpungement
andraisingtheissueofconfusionhadtoestablishalikelihoodofconfusionin
lightofallsurroundingcircumstancesincludingthosetheTrade-marksAct
specificallyenumeratesatsubsection6(5),namely:(a)theinherent
distinctivenessofthetrade-marksandtheextenttowhichtheyhavebecome
known;(b)thelengthoftimethetrade-markshavebeeninuse;(c)the
natureofthewares,services,orbusiness;(d)thenatureofthetrade;and(e)
thedegreeofresemblancebetweenthetrade-marksinappearanceor
soundorintheideassuggestedbythem.Astothegroundofexpungement
basedonlackofdistinctivenessofaregisteredtrade-mark,theCourt
appearstoindicatethatonewayofsucceedinghereistoestablishthelack


ofinherentdistinctivenessoftheregisteredtrade-mark(andthelackofuse
thereof),whichareonlypartofthevariouscircumstancestobeassessed
whenanalyzingconfusion.Accordingtothisapproach,referencetouseby
othersisnotnecessarilyneededtoestablishlackofdistinctiveness.
Aregisteredtrade-markmaythereforebeexpungeddespitenofindingof
confusion,onthesolebasisofitslackofinherentdistinctiveness,ifsuchmark
hasnotbeenusedinCanada.

LEGERROBICRICHARD,2003.
Publishedat(2003),17-5WorldIntellectualPropertyReport4-5underthetitleBostonChicken
MarkLackeddistinctiveness,CourtRules.Publication142.150.



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