First to File or First to Use? That Is the Question to Pass the Exam

2005-01-01

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FIRSTTOFILEORFIRSTTOUSE?
WHATHASTOBEDONETOPASSTHEEXAM

BarryGamacheandFranceLessard*
LEGERROBICRICHARD
,L.L.P.
Lawyers,Patent&TrademarkAgents
CentreCDPCapital
1001Square-Victoria–BlocE–8
thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.(514)9876242–Fax(514)8457874
Info@robic.com-www.robic.ca
TheCanadianTrade-marksAct,R.S.C.1985,c.T-13(hereinafterthe“Act”)has
justturned50!Foritshalfcenturyanniversary,theFederalCourtofCanada
mayhavejustreversedalongstandingpracticebytheRegistrarofTrade-
markswiththedecisionofMr.JusticeShoreinEffigiInc.v.AttorneyGeneralof
Canada,2004FC1000,handeddownonJuly16,2004.IftheFederalCourt
decisionisaffirmedonappeal,theRegistrarwillnolongerhavethe
opportunitytorefuseanapplicationonthebasisthatitisconfusingwith
anotherapplicationfiledatalaterdate,butalleginganearlierdateoffirst
use.
Forthelastdecades,thepracticeoftheRegistrarofTrade-markshasbeento
givepreferencetotheallegeddateoffirstuse,ratherthanthedateoffiling
whencomparingtwoconfusingandco-pendingapplications.Thisanalysis
wasdoneattheexaminationstageandtheRegistraronlyreliedonthe
allegationscontainedintheapplicationsthemselves.TheRegistrar’sdecision
toacceptornotanapplicationforpublicationhasalwaysbeendone
withoutaccesstoanyevidenceastotheallegedearlierdateoffirstuseofa
laterfiledapplication.
Facts
OnDecember19,2000,EffigiInc.(hereinafter“Effigi”)filedanapplicationfor
theregistrationofthetrade-markMAISONUNGAVA,onthebasisofproposed
useofthistrade-markinCanadainassociationwithbathandtablelinen.Ten
monthslater,whileEffigi’sapplicationhadstillnotbeenreviewedbyan
Examiner,TricornInvestmentsCanadaLtd.(hereinafter“Tricorn”)filedan

©CIPS,2005.*BarryGamacheandFranceLessardaremembersofLEGERROBICRICHARD,L.L.P.,a
multidisciplinaryfirmoflawyers,andpatentandtrademarkagents.Publication173.016.

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applicationforthetrade-markUNGAVAinassociationwithsimilarwares.The
latterapplication,filedonOctober19,2001,allegedadateoffirstuseof
October1981.
Sixteenandahalfmonthsafteritfileditsapplication,Effigireceiveditsfirst
Examiner’sreport.TheExaminerobjectedtotheregistrationofthetrade-mark
MAISONUNGAVAonthebasisofsections37and16oftheAct.TheExaminer
statedthatbyvirtueofsection16,Effigiwasnotthepersonentitledto
registrationofitstrade-marksinceitsdateoffilingwassubsequenttothedate
offirstuseofOctober1981mentionedinTricorn’sapplicationforthetrade-
markUNGAVA,whichwasconsideredconfusinglysimilartoMAISON
UNGAVA.
InitsresponsetotheExaminer’sreport,Effigididnottrytoarguethatthe
trade-markswerenotconfusing;however,itdrewtheRegistrar’sattentionto
theFederalCourtofAppeal’sdecisioninUnitelInternationalInc.v.Canada
(RegistrarofTrade-marks),(2000)9C.P.R.(4th)127.Inaccordancewiththe
FederalCourtofAppealsreasoning,Effigisubmittedthatwhenconsidering
twotrade-markapplicationsthatareconfusing,thedatesoffirstusealleged
intheseapplicationsarenotrelevanttotheapplicationofparagraph
37(1)(c)oftheAct.However,theRegistrardiscardedallofEffigi’sarguments
andrejecteditsapplicationonNovember14,2003.
Effigi’sposition
InitsappealbeforetheFederalCourt,EffigisubmittedthattheRegistrarerred
inreferringtosubsection16(3)oftheActtointerpretparagraph37(1)(c)and
thereaftertorejectitsapplicationattheexaminationstage.Effigiaddedthat
section37grantstheRegistrarauthoritytodecide,attheexaminationstage,
torejectatrade-markapplicationonlybecauseitisconfusingwithanother
trade-markfortheregistrationofwhichanapplicationispending.Thus,by
virtueofparagraph37(1)(c),theRegistrarcouldrefusetopublishatrade-
markapplicationiftherewasariskofconfusionwithapreviouslyfiled
applicationthatwasstillpending,irrespectiveofanyallegeddateoffirstuse.
TheRegistrar’sposition
Ontheotherside,theRegistrar(representedbytheAttorneyGeneralof
Canada)submittedthatwhenanalyzingparagraph37(1)(c)oftheAct,it
hadtointerpretthissectioninharmonywiththerestoftheActandgiveto
eachworditsordinaryandgrammaticalmeaning.

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Paragraph37(1)(c)readsasfollows:
“TheRegistrarshallrefuseanapplicationfortheregistrationofa
trade-markifheissatisfiedthat
[…]
(c)theapplicantisnotthepersonentitledtoregistrationofthe
trade-markbecauseitisconfusingwithanothertrade-markfor
theregistrationofwhichanapplicationispending,…”

TheRegistrarsubmittedthattheword“pending”didnotspecifywhich
applicationwassupposedtobeacceptedandwhichwassupposedtobe
rejected.TheRegistrararguedthatithadtorelyonsubsection16(3)which
defineswhenapersonisentitledtoregistrationbecausetheexpression
“personentitledtoregistration”isalsofoundinsubsection37(1).TheRegistrar
addedthattheexpression,asdefinedinsubsection16(3),necessarilyhadto
havethesamemeaningthroughouttheAct.
Thedecision
TheFederalCourtallowedtheappealandrejectedtheRegistrar’sposition
andlongstandingpractice.
Attheoutset,theCourtacceptedEffigi’spositionthatithadtoreviewthe
Registrar’sdecisiononthenormofcorrectnessastheissuebeforetheCourt
wasoneofstatutoryconstruction.Mr.JusticeShorethenanalyzedparagraph
37(1)(c)andstatedthatcontrarytosections18and38(whichreferto
circumstanceswhenapersonisnotentitledtoregistrationandthusrequire
anexaminationofsection16),section37usesdifferentlanguage(i.e.”the
applicantisnotthepersonentitledtoregistrationofthetrade-markbecause
itisconfusingwithanothertrade-markfortheregistrationofwhichan
applicationispending,…”)andisthereforecompleteinandofitselfand
describescompletelyalloftheRegistrar’sjurisdictionattheexamination
stage.TheRegistrar,therefore,doesnotneedtoexamineanyothersection
oftheActtodetermineentitlementtoregistration,attheexaminationstage.
TheCourtalsoconsideredsection16butdecidedthatitcouldbeexamined
bytheRegistraronlyonceanapplicationhasbeenpublished.Indeed,since
paragraphs16(4)and16(5)indicatethattherelevantdatementioned
thereinisthedateofadvertisementofanapplicant’sapplication,section16
necessarilyhastoapplyoncetheexaminationstagehasbeencompleted
andtheapplicationpublished.Therefore,theRegistrarcannotrelyonsection

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16whendecidingtoadvertiseornotatrade-markapplicationundersection
37.
TheCourtdidnotdenytheimportanceofuseofatrade-markunder
Canadiantrade-marklaw,butagreedwithEffigithattheexaminationstage
wastooearlyandincompleteaprocesstoascertainsuchuse.Itagreedwith
Effigi’spositionthattheExaminerdidnothavesufficientinformation,atthe
examinationstage,todeterminethatatrade-markhasreallybeenusedat
thedateoffirstuseallegedintheapplication.Thisanalysisisbetterleftfor
otherforumswithappropriateproceduresandevidentiarymechanisms
wherepartiescontestingallegeddatesoffirstusecanfileevidenceinsupport
oftheirrespectiveclaims.
TheCourtfinallystatedthattheUnitelInternationaldecisionwasinconformity
withitsowninterpretationofparagraph37(1)(c)oftheAct.Inthatcase,the
FederalCourtofAppealhadwritten:”Intheirreasons,theRegistrarandthe
TrialJudgereferredtotheallegeddatesoffirstuseinthetwoapplications.
Wewouldobservethatthedatesoffirstusearenotarelevantconsideration
underparagraph37(1)(c).Theonlyissueiswhetherthereisconfusion
betweenanapplicantstrade-markandatrade-markforwhichan
applicationforregistrationisalreadypending”.Althoughthecommentsof
UnitelInternationalwerenotconsideredbindingontheCourt,theyclearly
addressedthequestionsatissueandwereconsideredverypersuasive.
TheAttorneyGeneralofCanadahasfiledanappealagainstMr.Justice
Shoresdecisionandsuchappeal(inCourtfileA-432-04)isstillpending.Under
thecircumstances,theRegistrarhasnotmodifieditslongstandingpractice
regardingparagraph37(1)(c),atleastfornow.
Conclusion
Thereare,inouropinion,manydefectsinthenowdecadesoldpracticeof
theRegistrarofTrade-marks.WhateverinterpretationisgiventotheActitself,
thefactremainsthatnotallapplicationshavebeentreatedinthesameway.
Forexample,whatifthedelaytoexamineEffigisapplicationhadbeen
shorter?Tricorn’sapplicationwasfiledten(10)monthsafterEffigi’s
application.IfEffigi’sapplicationhadbeenexamined,say,inMarch2001,
Tricorn’sapplicationwouldnothavebeencitedbytheExaminer.Tricorn
wouldthenhavehadtoopposeEffigi’sapplicationanddemonstrateuseof
itstrade-marksince1981.Ontheotherhand,Tricorn,havingfiledatalater
date,butalleginganearlierdateoffirstuse,couldallegeanydateoffirstuse
withoutanyfear(atleastattheexaminationstage),sinceitdoesnothaveto
provethisdateoffirstusetobesuccessfuloverEffigi’sapplication.Thus,the

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importanceoffirstuseonlybecomesimportant(andfortheseniorapplicant
filingonthebasisofproposeduse,dangerous)insofarasthejuniorapplicant
(alleginganearlierdateoffirstuse)filesbeforetheseniorapplication(based
onproposeduse)isexamined,publishedandallowed.Thisbeingsaid,evenif
theseniorapplicationisallowedbutnotyetregistered(becausea
declarationofusecannotyetbefiled,forexample),thejuniorapplication
alleginganearlierdateoffirstusecanstillbepublishedandallowed,thus
leadingtoasituationwheretwoconfusinglysimilartrade-markswillbeonthe
register.
IftheCourtsdecisionismaintainedonappeal,Canadawillhavea”first
come,firstserve”regimewhendeterminingwhichtrade-markapplicationisto
beallowed(subjecttotheexceptionprovidedforbysection34oftheAct
regardingtheclaimingofapossiblesixmonthpriorityperiod).Ifsuchisthe
case,itwillbetheendofaregimewhereasubsequentlyfiledtrade-mark
applicationcan”bump”apreviouslyfiledone.Oneimportantconsequence
ofthisdecisionisthatownerswillnowbeencouragedtofiletheirtrade-mark
applicationsassoonaspossible,irrespectiveofwhetheratrade-markisused
ornot.
Itisnowtimeforfulldisclosure:Itwouldbehardlyappropriatetocriticisethe
Courtsdecisionasoneoftheauthorsofthisarticlesuccessfullyarguedthe
casebeforeMr.JusticeShore.Inallfairness,itwouldbedifficultforthis
attorneytoclaimanyobjectivityunderthecircumstances.Itwillthereforebe
appropriatetosimplyconcludebymentioningthatitisnotbecausea
practicehasbeeninplaceformanydecadesthatitshouldbeallowedto
continueif,infact,ithasnotbeeninaccordancewithwhatParliament
intendedwhenitadoptedparagraph37(1)(c)intheTrade-marksActandthis
iswhatineffecthasbeendecidedbytheCourt.Ofcourse,itappearsthat
theFederalCourtofAppealwillnowhavethelastword…

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