Fraud in Trade-mark Law

2009-01-01

FRAUDINTRADE-MARKLAW

L
AURENTCARRIÈRE*
LEGERROBICRICHARD,
L.L.P.
L
AWYERS,PATENTANDTRADE-MARKSAGENTS

Afalsedeclarationfiledbyatrade-markowner,duringtrade-markprosecution,evenifit
wasmadeinnocentlyandwithnointentiontodefraud,willdefinitivelyvitiatea
registrationobtainedintheUnitedStates.
ButwhatisthesituationinCanada?
StatutorygroundsofinvalidityofaregistrationarespecifiedatSection18oftheTrade-
marksAct(the“Act”),namely:i)thetrade-markwasnotregistrableatthedateof
registration,ii)thetrade-markisnotdistinctiveatthetimeproceedingsbringingthe
validityoftheregistrationintoquestionarecommenced,iii)thetrade-markhasbeen
abandoned,andiv)theapplicantforregistrationwasnotthepersonentitledtosecure
theregistration.ThereisnoreferenceintheActtofraudasagroundforinvalidity.

ThereisCanadiancaselawregardingdeclarationsfiledbyatrade-markapplicantor
owner,but,ingeneral,thiscaselawisnotconclusiveontheconsequencesoffilinga
falsedeclaration.Consequently,thisareaofthelawremainsunclear.

AdecisionrenderedonJanuary8,2009bytheFederalCourtofCanadainParfumsde
Coeur,Ltd.v.Asta(2009FC21)clarifiesthesituationatleastwithrespecttoone
aspectoftheproceeding.Thiscaseisaboutanexpungementactionlodgedagainsta
trade-markowner.
Whenatrade-markapplicationisbasedonproposeduseinCanada(namelythatthe
trade-markwasnotusedinCanadaatthetimethetrade-markapplicationwasfiled),a
statementofuseshallbeproducedbeforeregistrationisobtained(andthe
government’sregistrationfeedulypaid).Thedeclarationissimplysignedandno
specimenofusehastobeprovided.Themarkmusthoweverhavebeenusedin
associationwithallofthewaresandalloftheservicesmentionedintheapplication,and
notonlywithoneofthem.Ifonewareorserviceisnotused,ithastobewithdrawnfrom
thedeclarationofuseandregistrationwillonlybeissuedfortheservicesandwares
effectivelyofferedorusedinCanada.

©CIPS,2009.
*WithLEGERROBICRICHARD,LLP.amultidisciplinaryfirmofLawyers,andPatentandTrade-mark
Agents.PublishedintheSpring2009Newsletterofthefirm(Vol.13,No.1).Publication068.102E

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IntheParfumsdeCoeurdecision,thetrade-markregistrationinquestioninitiallylisted
numerouswaresinClass3(cosmetics).Thedeclarationofusethenfiledattestedtothe
useofthetrade-markinassociationwitheachofthosewareswhileinfact,itwasonly
usedforshampoosandconditioners.
Shortlybeforeproceedingstoexpungethisregistrationwereinstituted,theownerofthe
trade-markhadthefortunateideatorequesttheamendmentoftheregistrationtohave
itnarrowedtoonlythosewaresactuallyusedinCanadaatthetimeofsignatureofthe
declarationofuse.
TheCourtindicatesthataregistrationcanbeinvalidatedfortwotypesoffalse
declarations,namelyi)afraudulentorvoluntaryerroneousdeclaration,andii)the
declarationrelatingtoasubstantialaspectofthematter,evenifthefalsehoodwas
involuntary.TheCourtaddedthattheidentificationofwaresinastatementofusewasa
substantialmatter.
Sincethedatefordeterminingwhethertheregistrationunderreviewcorrectlyreflects
therightsofitsowneristhedateoftheinstitutionoftheproceedings,therequestfor
expungementhadtoberejectedseeingasthough,priortotheproceedings,thetrade-
markownerhadamendedtheregistrationtoreflectonlythewarestrulyused.

Moreparticularly,theJudgeindicatesthattheCourtdoesnotwishtoimportAmerican
legalprinciplesintoCanadaandthattheCanadianTrade-marksAct,intheabsenceof
anintentiontothateffectfromtheLegislator,didnotencompassthisaspect.

Oneshouldthereforekeepinmindthatifatrade-markapplicationisfiledonaproposed
usebasiscoveringnumerouswaresand/orservices,whenthetimecomestosigna
declarationofuse,suchdeclarationcanonlycoverthewaresorservicestrulyusedor
offeredinassociationwiththetrade-markatissue.Theuseofatrade-markin
associationwithonlyoneofthoseservicesoroneofthosewareswillnotcovera
generalclassofservicesorwares.
Itmaysometimesbenecessaryorprudenttorequestoneorseveralextensionsoftime
forthefilingofastatementofuseinordertocoverasmanywaresorservicesas
possible,thewholedependingontheevolutionofthemarket.

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