Caramella Trade-Mark For Spreads Not Confusing With Ah Caramel! Trade-Mark for Miniature Cakes, Confirms Federal Court in Opposition Case


CARAMELLATRADE-MARKFORSPREADSNOTCONFUSINGWITHAHCARAMEL!
TRADE-MARKFORMINIATURECAKES,CONFIRMSFEDERALCOURTIN
OPPOSITIONCASE

BarryGamache*
LEGERROBICRICHARD
,LLP
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Whenchoosingatrade-mark,tradersmayfindmanyadvantagesinaword
whichsuggestsanimportantcharacteristicoftheproductstobeassociated
withsuchtrade-mark;however,indoingso,theyarechoosingawordwitha
narrowerambitofprotectionwhencomparedtoatrade-markwhichisan
originalcreation,acoinedorinventedword.Thistensionbetweenmarketing
andlegalconsiderationsconcerningthestrengthofatrade-markisillustrated
bytherecentdecisionoftheFederalCourtofCanadaregardingthetrade-
markAHCARAMEL!,knowninCanadaforpre-wrappedminiaturecakes
(SaputoGroupeBoulangeriev.NationalImportersInc.,2005FC1460(F.C.
Noël,J.,October28,2005)).
OnMarch25,1998,NationalImportersInc.(“NationalImporters”)filedan
applicationwiththeCanadianTrade-marksOfficetoregisterthetrade-mark
CARAMELLAinassociationwithfoodproducts,namelyaspreadforusein
cookingandbaking,onthebasisofproposeduseofsuchtrade-markin
Canada.Thisapplicationsuccessfullypassedtheexaminationprocessatthe
Trade-marksOfficeandwasthereafterpublishedforoppositionpurposes.
SaputoGroupeBoulangerieInc.(“Saputo”)istheregisteredownerinCanada
ofthetrade-markAHCARAMEL!whichwasregisteredinCanadaonJune30,
1995inassociationwithsnacksanddesserts,namelycakes,pastries,danish
pastries,muffins,donuts,granolabars,flakypastriesandcrackers.Saputo
opposedtheCARAMELLAapplicationonthebasisofitspreviousAH
CARAMEL!registration.Inshort,Saputoallegedlikelihoodofconfusion
betweentheCARAMELLAandAHCARAMEL!trade-marksrenderingthe
formerunregistrable.

©CIPS,2006.*BarryGamache,lawyer,isamemberofLEGERROBICRICHARD,L.L.P.,amultidisciplinaryfirmof
lawyers,andpatentandtrademarkagents.(February2006),20-2WIPR.Publication142.184.


TheOppositionBoardoftheTrade-marksOfficedisagreedandconcluded
thatnotradercanmonopolizeadescriptivetermsuchas”caramel”in
associationwithfoodproducts.IntheBoard’sview,NationalImportershad
establishedthatnolikelihoodofconfusionwouldoccurshouldbothparties’
trade-marksbeusedinthesamearea,inaccordancewiththetestprovided
forbysection6ofCanada’sTrade-marksAct(R.S.C.1985,c.T-13),which
readsasfollows:”Theuseofatrade-markcausesconfusionwithanother
trade-markiftheuseofbothtrade-marksinthesameareawouldbelikelyto
leadtotheinferencethatthewaresorservicesassociatedwiththosetrade-
marksaremanufactured,sold,leased,hiredorperformedbythesame
person,whetherornotthewaresorservicesareofthesamegeneralclass.”
SaputoappealedtheBoard’sdecisionbeforetheFederalCourt.
Mr.JusticeNoëlheardSaputo’sappealandtookcaretoreviewtheextensive
evidencefiledbytheparties,includingtheadditionalelementswhichwere
submittedbeforehim.Forexample,onappeal,Saputoattemptedtoestablish
thatitsAHCARAMEL!trade-markshouldreceiveawiderambitofprotection
thananordinarymarkinlightofitsfameontheCanadianmarket.Studies
werefiledshowingthatCanadianconsumersappreciatethefreshness,the
tasteandthequalityoftheAHCARAMEL!pre-wrappedminiaturecakes,the
productmostextensivelyassociatedwiththetrade-mark.However,thesenew
factsdidnotchangethefindingmadebytheBoardandsubsequently
confirmedbytheCourtthatboththeAHCARAMEL!andCARAMELLAtrade-
markspossessedonlyaverylowlevelofinherentdistinctiveness.AH
CARAMEL!’sfame(howevergreatwhencomparedtothelesserknown
CARAMELLAspread)wasbutonecircumstanceamongmanytoconsider.
Regardingtheparties’respectivewares,theCourtconcludedthat,although
theywereallfoodproducts,theywerenonethelessverydifferentfood
products:TheevidenceshowedthattheAHCARAMEL!trade-markis
principallyassociatedwithpre-wrappedminiaturecakeswhileCARAMELLAis
associatedwithaspread.TheCourtnotedthatSaputohadgrantedalicence
toathirdpartyfortheuseofitstrade-markAHCARAMEL!inassociationwitha
spreadstartingin2001(aftertheinitialuseoftheCARAMELLAspreadin1999).
However,thesesalesoftheAHCARAMEL!spreadbyalicenseewerebuta
smallfractionofSaputo’stotalsalesofitsotherproductsandmostnotablyits
pre-wrappedminiaturecakesunderthetrade-markAHCARAMEL!
Inshort,theCourtlefttheBoard’sfindingregardingthedifferenceinthe
parties’productsundisturbed.
Finally,theCourttooknoteoftwootherimportantfactors:Theideasuggested
bybothparties’trade-marksweredifferent:AHCARAMEL!suggested


satisfactionoranotherwisepleasingsensation,anideawhichwasabsentin
theCARAMELLAtrade-mark.Moreover,therecordestablishedthatmanythird
partiesuseda”caramel”componentintheirrespectivetrade-marks:
Consumersarethereforeapparentlyaccustomedinmakingdistinctions
betweenthesevariouscaramel-typetrade-marks.TheCourtthereforeupheld
theBoard’sfindingthattheCARAMELLAtrade-markwasregistrable.
Therearemanymarketingadvantagesinchoosingatrade-markwhich
suggestsacomponentofaproductatraderwishestosell;thisbeingsaid,in
certaincircumstances,themarketingstrengthofsuchtrade-markappearsto
beinverselyproportionaltoitslegalstrengthand,accordingly,small
differencesbetweenstrongtrade-marks-froma”marketing”pointofview,of
course-mayusuallybesufficienttoeliminateanylikelihoodofconfusion,as
thisrecentcaseseemstoillustrate.


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