Lack of evidence to show actual or potential damages suffices to dismiss an application seeking a declaration of passing off infringement

LACKOFEVIDENCETOSHOWACTUALORPOTENTIALDAMAGESSUFFICES
TODISMISSANAPPLICATIONSEEKINGADECLARATIONOFPASSINGOFF
INFRINGEMENT

MARCELNAUD*
LEGERROBICRICHARD,
L.L.P.
L
AWYERS,PATENTANDTRADE-MARKAGENTS

PharmacommunicationsHoldingsInc.v.AvenciaInternationalInc.,2008FC828
(CanLII)
Inajudgmentrenderedon2008-07-02,theFederalCourtofCanadafoundthatthe
applicationofPharmacommunicationsHoldingsInc.(the”Applicant”)seekinga
declarationthatAvenciaInternationalInc.,JasonLewis,DonaldLajoieandGregory
Kochuk(the”Respondents”)wereliableofstatutorypassingoffpursuanttosection
7(b)oftheTrade-marksAct(“TMA”)shouldbedismissedwithcostsagainstthe
Applicant.
TheApplicant,incorporatedin1995,contendsthatitistheowneroftheunregistered
trade-mark“PharmaCommunications”,usedinCanadainassociationwithmarketing,
advertisingandrelatedconsultingservicestothepharmaceuticalindustry.
TherespondentAvenciaInternationalInc.isacorporationthatregisteredthename
“PHARMACOMM”andhasbeenoperatingunderthatnamesinceDecember2,
2004.Itclaimstobeanadvertisingagencythatoffers“brandconsultation,media
advertising,productpromotionandsalestechniques”services.
TheApplicantwasseekingadeclarationthatthebusinessname“PharmaComm”is
confusinglysimilartoitsunregisteredtrade-markPharmaCommunicationanda
permanentinjunctionordertorestraintheRespondentsfromusing“PharmaComm”,
asatrade-name,trade-markorotherwise.
Itisworthnotingthat,initsanalysis,theCourtconsidered“veryweak”theprobative
valueofadocumentwhichwasfiledbytheApplicantmorethanayearafterthe
beginningoftheproceedingsasanattempttoshowthattheApplicantwasreferred
toasPharmaCommbyatleastoneclient.Thisfindingtookintoconsiderationthe
factthatthecredibilityoftheApplicant’spresidenthadbeenweakenedbyaprior
casewherehewasfoundguiltyofcontemptofCourt.




























































©CIPS,2008.
*LawyerwithLEGERROBICRICHARD,L.L.P.,amultidisciplinaryfirmoflawyers,andpatentand
trade-markagents.PublishedintheWorldTrademarkReport.Publication293.055.

2
AmongotherargumentspresentedbytheRespondents,theycontendedthat
“pharma”and“communications”werecommonlyuseddescriptivewordsandthata
certainamountofconfusionmustbeacceptedwhennon-distinctivenamesare
chosen.TheyalsoarguedthattheApplicantfailedtoshowanyactualorpotential
damagesresultingfromtheRespondents’conduct.
Inthecircumstances,theonlyissuethattheCourtfoundrelevanttodealwithis
whethertheRespondentsareliableforstatutorypassingoff.Pursuanttosubsection
7(b)oftheTMA,nopersonshalldirectpublicattentiontohiswares,servicesor
businessinsuchawayastocauseorbelikelytocauseconfusioninCanada,atthe
timehecommencedsotodirectattentiontothem,betweenhiswares,servicesor
businessandthewares,servicesorbusinessofanother.
TheCourtreiteratedthatsubsection7(b)oftheTMAistheequivalentstatutory
expressionofthecommonlawtortofpassingoff,whichrequires(a)theexistenceof
goodwill;(b)deceptionofthepublicduetoamisrepresentation;and(c)actualor
potentialdamagetotheplaintiff.Inaddition,asuccessfulclaimofstatutorypassing
offmustalsoincludeaproofofpossessionofavalidandenforceabletrademark,
registeredornot.
However,theCourtsaidthatitdidnotneedtodiscusswhetherornottheApplicant
mettheburdenofproofrequiredforallofthevariouselementsofthisstatutory
infringementclaim,giventhattheApplicant“clearlyfailed”tomeetoneofthem,
namelytherequirementofshowingactualorpotentialdamage.
Infact,theCourtagreedwiththeRespondents’submissionsthattheApplicantmade
nosubmissionsandpresentednoevidencewhatsoevertoestablishactualor
potentialdamage.Giventheactualpotentialdamagescannotbepresumed,the
CourtconcludedthattheRespondentscouldnotbefoundtobeinvolvedinpassing
off.Accordingly,theCourtdismissedtheapplication.

3
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