Budget Blinds Trade Marks Can Remain on the Register, Federal Court Rules in Expungement Case

B
UDGETBLINDSTRADE-MARKSCANREMAINONTHEREGISTER,
FEDERALCOURTRULESINEXPUNGEMENTCASE

BARRYGAMACHE*
LEGERROBICRICHARD,
LLP
L
AWYERS,PATENT&TRADEMARKAGENTS
Inadecisionthathighlightsyetagaintheimportanttrade-markprinciplethatsmall
differenceswillservetodistinguishmarksthathavelittleornoinherent
distinctiveness,Canada’sFederalCourtrecentlydismissedanapplicationtoexpunge
twotrade-markregistrationsforthemarkBUDGETBLINDSregisteredfor
“distributorshipandretailstoresservicesinthefieldofwindowcoverings”(Budget
BlindServiceLtd.v.BudgetBlinds,Inc.,2007FC801(F.C.,SimpsonJ.,July31,
2007)).
Section57ofCanada’sTrade-marksAct,R.S.C.1985,c.T-13(hereafter:the“Act”)
givesCanada’sFederalCourtexclusivejurisdictionindecidingwhetheraregistered
trade-markshouldbeexpunged.Subsection57(1)thusprovides:
TheFederalCourthasexclusiveoriginaljurisdiction,ontheapplicationofthe
Registrarorofanypersoninterested,toorderthatanyentryintheregisterbe
struckoutoramendedonthegroundthatatthedateoftheapplicationthe
entryasitappearsontheregisterdoesnotaccuratelyexpressordefinethe
existingrightsofthepersonappearingtobetheregisteredownerofthemark.
OnMarch12,2003,BudgetBlinds,Inc.fromOrange,California,therespondentin
theseproceedings,appliedtoregisteritstwoBUDGETBLINDStrade-marksfor
proposeduseinassociationwith“distributorshipandretailstoresservicesinthefield
ofwindowcoverings”.TheseapplicationsmaturedtoregistrationonFebruary16,
2006.However,adeclarationofusewasfiledforeachtrade-markonJanuary24,
2006asalastproceduralstepbeforeregistration.
OnMay2,2006,applicantBudgetBlindServiceLtd.,fromSurrey,BritishColumbia,
appliedtotheFederalCourtforanOrderexpungingtheBUDGETBLINDStrade-
marksfromtheregisteronthebasisofallegedconfusionwithitsBUDGETBLINDS,
BUDGETBLINDSERVICESandBUDGETBLINDCLEANINGtrade-marksthatwere

©CIPS,2007.*LawyerwithLEGERROBICRICHARD
.,amultidisciplinaryfirmoflawyers,patentand
trademarkagents..PublishedintheOctober2007issueofWorldInteeelctualPropertyReport.
Publication142.204.

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allegedlyinuseinCanadapriortoMarch12,2003whenBudgetBlinds,Inc.applied
toregisteritsowntrade-marks.
Priortodecidingtheissueofconfusion,MadamJusticeSimpsonhadtodetermine
whethertheevidencesupportedtheclaimofpriorusebyBudgetBlindServiceLtd.of
thetrade-markBUDGETBLINDS(atrade-markidenticaltotheonesregisteredby
BudgetBlinds,Inc.)asopposedtotheclaimofprioruseofthesomewhatdifferent
BUDGETBLINDSERVICESandBUDGETBLINDCLEANINGtrade-marks.The
Courtreviewedtheevidenceandconcludeditcameupshorttoestablishuseofthe
trade-markBUDGETBLINDSon/orbeforeMarch12,2003.FromtheCourt’s
reasons,itappearsthattheearliestdocumentaryevidencesupportingthealleged
useofthetrade-markBUDGETBLINDSwasaletterfromtheBetterBusiness
BureauofApril20,2004whichincludedanotefromacustomerwhowasdelighted
withBudgetBlindServiceLtd.’sworkinMarchof2004anddescribedthecorporate
applicantasBUDGETBLINDS.However,thispieceofevidencealongwithother
documents(subsequentlydated)couldnotestablishaclaimofuseinMarchof2003.
Accordingly,theCourtnarrowedtheissueofconfusiononMarch12,2003between
therespondent’sregisteredBUDGETBLINDSmarksandtheapplicant’smarks
BUDGETBLINDSERVICESandBUDGETBLINDCLEANING.
Despiteanobvioussimilaritybetweentheparties’marks,theCourtconcludedthat
likelihoodofconfusionhadnotbeenestablishedunderthecircumstances.Firstly,the
CourtconcludedthatBUDGETBLINDSERVICESandBUDGETBLINDCLEANING
wereweaknamesthathadlowinherentdistinctivenessandthatsmalldifferences
(suchastheonesexistinginthemarksbeforetheCourt)wouldservetodistinguish
marks(suchasthese)thathavelittleornoinherentdistinctiveness.Underthe
circumstances,theadditionofthewords“services”and“cleaning”totheapplicant’s
marksweresufficienttodispelanylikelihoodofconfusion.
Additionally,theCourtconcludedthatthepartieswerecarryingonsubstantially
differentbusinesses.Indeed,ontheonehand,theapplicantwasprimarilyinvolvedin
thecleaningandrepairingofwindowblindsandotherwindowcoveringswhileonthe
otherhand,therespondent’sbusinesswasprimarilytheretailsaleandinstallationof
blindsandotherwindowcoverings.Initsassessmentofthesituation,theCourt
concludedthatthepartieswereindifferentbusinesses,albeitdealingwiththesame
products:Theapplicantcleanedandrepairedblindswhiletherespondentsoldand
installedthem.
Thisrecentcaseillustratesagainhowtrade-marklawallowsmarksthathavealow
levelofinherentdistinctivenesstocoexistaslongasthedifferencesbetweenthem
aresufficienttoenableconsumerstomaketheappropriateinferenceastothesource
oftheparties’respectivewaresandservices.TheCourtconcludedthatthiswasthe
casehere.

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