Family of Marks Is of Limited Value Outside Owner’s Areas of Monopoly
COURTHOLDSTHATFAMILYOFTRADE-MARKSISOFLIMITEDVALUEOUTSIDE
OWNER’SSPECIFICAREAOFMONOPOLY
by
BarryGamache
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
CentreCDPCapital
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Tel.:(514)9876242-Fax:(514)8457874
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OnMay6,1994,Mr.JusticeMcKeownoftheTrialDivisionoftheFederalCourt
ofCanadarejectedanappealbroughtbyMcDonald’sCorporationagainst
theregistrationbyCoffeeHutStoresLtd.ofatrade-markMCBEANSfor,
amongotherthings,tea,coffeeandtheoperationofabusinessdealingwith
thesaleofsuchitems(McDonald’sCorporationetal.v.CoffeeHutStores
Ltd.
,F.C.T.D.No.T-1205-92,May6th,1994).Insupportofitsposition,
McDonald’sCorporationhadreliedonitsso-called”family”oftrade-marks;
theCourtindicatedhoweverthatthiswasinsufficientandthatthe
assessmentofconfusionmustnotbedoneinavacuumbutratherby
examininghowthetrade-marksareusedinthecourseofbusiness.
ThefactsofthisappealfromadecisionoftheTrade-MarksOppositionBoard
areasfollows:CoffeeHutStoresrequestedregistrationofthetrade-mark
MCBEANSforuseinassociationwithcoffeemakersandrelatedproducts,
coffee,teaandtheoperationofabusinessdealinginthesaleofthesewares.
McDonald’sCorporationfiledastatementofoppositionagainstthis
applicationalleging,interalia,thatthetrade-markMCBEANSwasnot
registrableinviewofalikelihoodofconfusionwithMcDonald’sfamilyof
registeredtrade-marksfeaturingtheprefixMCcombinedwiththenameofa
foodoraworddescriptiveofafooditemsuchasMCMUFFIN,MCCHICKEN
andMCRIB.
OnMarch24,1992,Mr.DavidJ.Martin,actingonbehalfoftheOpposition
Board,renderedasplitdecisionwherebyherefusedCoffeeHutStores’
applicationinrelationtothesaleofcoffeeandteaandtotheoperationofa
businessdealinginthesaleofcoffeeandtea,butotherwiserejected
McDonald’sopposition.
McDonald’sCorporationappealedtheOppositionBoard’sdecisionwhile
CoffeeHutStoresLtd.filedacrossappeal.Asoneofitsgroundsofappeal,
McDonald’sCorporationpleadedthattheOppositionBoarderredinnot
givingsufficientweighttotheopponent’sevidenceofafamilyoftrade-marks
consistingoftheprefixMCcombinedwiththenameofafood.Bothparties
filedadditionalevidenceonappeal.
Whileevidenceofsalesinassociationwiththetrade-marksMCCHICKEN,
MCRIB,CHICKENMCNUGGETS,EGGMCMUFFIN,SAUSAGEMCMUFFIN,
BACON’NEGGMCMUFFIN,BIGMAC(noneofwhichconcernedcoffeeor
tea)wasreviewedbytheCourt,itwasnotedthattheonlytrade-markused
byMcDonald’sCorporationforteaandcoffeewasMCDONALD’Sandthat
thesaleofitshot-brewedcoffeeamountedtolessthan4%ofitstotalsales.
TheCourtalsowrotethatMCBEANSisusedinassocitionwithastoreand
caterstoanadultaudiencewithaselectionofgourmetcoffeeswhile
MCDONALD’Sisusedinassociationwithafastfoodrestaurantcateringto
childrenandoffersonlyonekindofgenericcoffee.
AdditionalevidencewasintroducedbyMcDonald’sCorporationintheform
ofasurveybasedontelephoneinterviewswith200peopleinTorontoand200
peopleinVancouver.TheCourtdiscountedthesurveystatingitisnotthe
viewofthe”averageperson”whichisrelevanttodetermineconfusionbut
rathertheaverageconsumerwhowouldhavevisitedaMCBEANSoutlet.
McDonald’sCorporationtriedtorelyonitsfamilyoftrade-marksindicating
thatitistheonlyentitywhohasregisteredtrade-marksinCanadahavinga
prefixMCcombinedwithafooditem.CoffeeHutStoresconcededthispoint
butpointedtoevidencethatthereiswidespreaduse
oftheprefixMCor
MACinassociationwithfooditems;furthermore,itpleadedthatMcDonald’s
Corporationdoesnothavea”family”oftrade-marks.
Indecidingtheissue,theCourtindicatedthatwhereawordiscommonto
tradeonecannothaveafamilyoftrade-marks.Recognizingthelimited
scopeofMcDonald’sCorporation’s”family”oftrade-marks,theCourtstated
thatitsexclusivityisintheareaoffastfoodrestaurantrightsandaddedthat
thereisnothinginherentlydistinctiveoutsideofthatspecificarea.Finally,the
Courtconcludedthattherewasnoconfusionbetweenthetrade-mark
MCBEANSasappliedtoCoffeeHutStores’waresandservicesand
McDonald’sCorporation’strade-marks;consequently,itrejectedMcDonald’s
appealandallowedCoffeeHutStores’crossappeal.
ItisworthnotingthattheCourtrecognizedthelimitedvalueofafamilyof
trade-marksoutsideitsspecificareaofmonopoly,especiallywhentheword
orwordsrelieduponastrade-marksarecommontothetrade.Thus,the
ownerofawell-knownfamilyoftrade-marksisnotdispensedfrom
establishingthecircumstancesofconcurrentuseofthetrade-marksinthe
courseofbusinessinordertoenabletheCourttoconcludethatariskof
confusionislikelytooccur.
PublishedunderthetitleFamilyofMarksIsofLimitedValueOutsideOwner’s
AreasofMonopolyat(1994),8W.I.P.R.226-227.
LEGERROBICRICHARD,1994.
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