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

2003-01-01

BOSTONCHICKENTRADE-MARKLACKEDDISTINCTIVENESS,FEDERALCOURTOF
APPEALRULES

BarryGamache
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
CentreCDPCapital
1001Square-Victoria-BlocE–8
thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.:(514)9876242-Fax:(514)8457874
www.robic.ca-info@robic.com

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.

ROBIC,ungrouped’avocatsetd’agentsdebrevetsetdemarquesdecommercevoué
depuis1892àlaprotectionetàlavalorisationdelapropriétéintellectuelledanstousles
domaines:brevets,dessinsindustrielsetmodèlesutilitaires;marquesdecommerce,marques
decertificationetappellationsd’origine;droitsd’auteur,propriétélittéraireetartistique,droits
voisinsetdel’artisteinterprète;informatique,logicielsetcircuitsintégrés;biotechnologies,
pharmaceutiquesetobtentionsvégétales;secretsdecommerce,know-howetconcurrence;
licences,franchisesettransfertsdetechnologies;commerceélectronique,distributionetdroit
desaffaires;marquage,publicitéetétiquetage;poursuite,litigeetarbitrage;vérification
diligenteetaudit;etce,tantauCanadaqu’ailleursdanslemonde.Lamaîtrisedes
intangibles.
ROBIC,agroupoflawyersandofpatentandtrademarkagentsdedicatedsince1892tothe
protectionandthevalorizationofallfieldsofintellectualproperty:patents,industrialdesigns
andutilitypatents;trademarks,certificationmarksandindicationsoforigin;copyrightand
entertainmentlaw,artistsandperformers,neighbouringrights;computer,softwareand
integratedcircuits;biotechnologies,pharmaceuticalsandplantbreeders;tradesecrets,
know-how,competitionandanti-trust;licensing,franchisingandtechnologytransfers;e-
commerce,distributionandbusinesslaw;marketing,publicityandlabelling;prosecution
litigationandarbitration;duediligence;inCanadaandthroughouttheworld.Ideaslivehere.
COPYRIGHTER
IDEASLIVEHERE
ILATOUTDEMÊMEFALLUL’INVENTER!
LAMAÎTRISEDESINTANGIBLES
LEGERROBICRICHARD
NOSFENÊTRESGRANDESOUVERTESSURLEMONDEDESAFFAIRES
PATENTER
R
ROBIC
ROBIC+DROIT+AFFAIRES+SCIENCES+ARTS
ROBIC++++
ROBIC+LAW+BUSINESS+SCIENCE+ART
THETRADEMARKERGROUP
TRADEMARKER
VOSIDÉESÀLAPORTÉEDUMONDE,DESAFFAIRESÀLAGRANDEURDELAPLANÈTE
YOURBUSINESSISTHEWORLDOFIDEAS;OURBUSINESSBRINGSYOURIDEASTOTHEWORLD