Famous Trade-Mark Can Claim Wide Ambit Of Protection, Federal Court Rules In ‘Lexus’ Case

1999-01-01

FAMOUSTRADE-MARKCANCLAIMWIDEAMBITOFPROTECTION,FEDERAL
COURTRULESIN’LEXUS’CASE

By
BarryGamache
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
CentreCDPCapital
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Tel.:(514)9876242-Fax:(514)8457874
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ArecentdecisionoftheFederalCourtofCanadaconfirmedthatwhen
assessingtheriskofconfusionbetweentrade-marks,thenatureofthewares,
servicesorbusinessofthepartiesandthenatureoftheirtradearenot
particularlydeterminativewhenonemarkisfoundtobea”famous”trade-
mark,(ToyotaMotorCorporationvsLexusFoodsInc.,T-2064-97,August31
st,
1999,Blais,J.).
OnApril27,1992,LexusFoodsInc.(“LexusFoods”)filedanapplicationwiththe
Registrarinordertosecureregistrationofthetrade-markLEXUSinassociation
with”cannedfruits,cannedvegetables,fruitjuicesandvegetablejuices”on
thebasisofproposeduseofthetrade-markinCanada.
LexusFoods’applicationwasadvertisedforoppositionpurposesandToyota
MotorCorporation(“Toyota”)filedastatementofoppositionalleging
confusionwiththreetrade-markregistrationsitownedforthetrade-mark
LEXUScovering”motorcarsandpartsandaccessoriesthereof,repairservices”
andawidevarietyofconsumergoods.
OnJuly22,1997,theTrade-marksOppositionBoarddismissedToyota’s
opposition,indicatingthattheopponenthadfailedtoprovideevidence
confirmingthatitstrade-markLEXUSwasafamousmark.Theregistrar’s
decisionwasalsobasedonthefactthatthereappearedtobenoassociation
betweentheparties’respectivebusinesses.
Toyotaappealedtheregistrar’sdecisionbeforetheTrialDivisionoftheFederal
Courtandsubmittedadditionalevidencewhichwasnotavailablebeforethe
Registrar.Mr.JusticeBlaishadtoanswerthefollowingquestions:Inlightofthe
additionalevidenceforwardedonappeal,wasToyota’sLEXUSmarkafamous
trade-markinCanada?Wasthereconfusionbetweentheparties’trade-
marks?

Inreviewingalloftherelevantfacts,theCourtexaminedtheresultsofa
surveyconductedonbehalfofToyotatoascertainthepublicperceptionof
theword”LEXUS”.TheresultsofthesurveyshowedthatasofSeptember1997,
whenthesurveywasconducted,aclearmajority(58%)oftheCanadian
publicassociatedthetrade-markLEXUSwithavehicle.Inputtingforward
theseresults,ToyotaarguedthatLEXUSisafamoustrade-markinCanada.
LexusFoodsarguedforitspartthatToyota’sLEXUSmarkhadonlybeenusedin
Canadasince1990,thatisonlytwoyearsbeforeitfileditsownapplicationfor
thetrade-markLEXUS.Basically,LexusFoods’submissionwasthatToyota’s
markshouldnotbegrantedthestatusofafamoustrade-markasithadnot
beeninuselongenoughinCanada.
Inrenderingitsdecision,theCourtwrotethattobeconsideredafamous
trade-markinCanada,thattrade-markmustbegenerallyrecognized
throughoutCanadaaswellasbymost,ifnotall,segmentsofthepopulation
(JaguarCarsLtd.vsManufacturedesMontresJaguarS.A.(1997),78C.P.R.
(3d)548at555(T.M.O.B.)).IntheCourt’sview,thesurveyevidencefiledby
Toyotawascrucial.Theresultsofthissurveyindicatedthatnearly6outof10
CanadianadultsrecognizedthetermLEXUSasindicativeofacar.Inthe
Court’sview,theresultofthesurveywassufficienttoclassifyToyota’strade-
markas”famousorverywellknownwithintheparametersofthelaw”.
Inassessingtheriskofconfusionbetweenthetrade-marks(inadditiontothe
factthatToyota’strade-markcouldbeconsideredasafamoustrade-mark),
theCourtnotedthatthewordLEXUSisacoinedword,entitledtoagreater
ambitofprotection.Additionally,LexusFoodsInc.adoptedtheentiretyof
Toyota’smarkwithoutaddinganyfurtherdistinctiveportionwhichcouldhave
distinguisheditfromToyota’smark.
Finally,theCourtnotedthatLexusFoods’Vice-Presidentadmittedheknew
aboutToyota’sLEXUSmarkatthetimewhenthesamemarkwasadoptedby
hiscompany;healsoadmittedthatthenamewaschosenbecauseit
represented”aqualityname”.
Inassessingtheriskofconfusionbetweentrade-marks,theCourtreferredto
thestatementsmadebytheFederalCourtofAppealinMissUniverseInc.vs
Bohna[1995]1F.C.614wheretheCourtfoundthat”Itwasthedutyofthe
respondenttoselectanamewithcaresoastoavoidanyconfusion–asis
requiredunderthedefinitionof”proposedtrade-mark”insection2oftheAct–
andsoastoavoidtheappearancethatheintendedtojumponthe
bandwagonofanalreadyfamousmark”.

Inlightofitsfindings,theCourtconcludedthattherewasindeedconfusion
betweenbothparties’trade-marksanditdirectedtheRegistrartorefuseLexus
Foods’applicationforthetrade-markLEXUS.
TheCourt’sdecisionisinlinewiththeprinciplethatthebroaderscopeof
protectiongrantedtocertaintrade-markscomesfromanapplicationof
section6ofCanada’sTrade-marksAct(R.S.C.1985,c.T-13)whichrecognizes
thattheextenttowhichatrade-markhasbecomeknownisoneofthe
circumstancestotakeintoconsiderationwhenevaluatingwhethertwotrade-
marksareconfusing,whetherornotthewaresorservicesofthepartiesareof
thesamegeneralclass.
Publishedat(1999),13WorldIntellectualPropertyReport360-361.
LEGERROBICRICHARD,1999.

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