Lingayen Trade-Mark Held Descriptive and Therefore Invalid in Infrigement Case, Rules Federal Court

2015-07-22

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LINGAYENTRADE-MARKHELDDESCRIPTIVEANDTHEREFOREINVALIDIN
INFRINGEMENTCASE,RULESFEDERALCOURT

BARRYGAMACHE*
ROBIC,
LLP
L
AWYERS,PATENT&TRADEMARKAGENTS

Inadecisionthatexaminescompetingroadmapstodeterminewhenatrade-markis
descriptiveofaplaceoforigin,Canada’sFederalCourtrecentlyheldthatthetrade-
markLINGAYENforFilipinofoodproductswasinvalidandorderedthatits
correspondingregistrationbeexpunged.Atthesametime,theCourtdismissed
Plaintiff’sactionforinfringementthatreliedonsuchregistration(MCImportsLtd.v.
AfodLtd.,2014FC1161(F.C.,RennieJ.,December2,2014)).

ThePlaintiffMCImportsLtd.(the“Plaintiff”or“MCImports”)isaCanadiancompany
locatedinOntariothatwasincorporatedin2004.MCImportsisinthebusinessof
importinganddistributingfishandseafoodproductsincludingbagoong,afish/shrimp
sauce,muchappreciatedwithintheFilipinocommunity.MCImportshasusedthe
trade-markLINGAYENtodistinguishitswaresandservices.OnFebruary16,2000,
itspredecessorfiledanapplicationtoregisterthetrade-markLINGAYENandthis
applicationmaturedtoregistrationonAugust27,2003.Ayearlater,MCImportsLtd.
wascreatedandthetrade-markwasthereafterassignedtoitonOctober21,2011.
The2003registrationprotectsthetrade-markLINGAYENinassociationwithfood
products,forexamplefishsauce,fishpaste,shrimppreserves,saltedfishandsalted
shrimp.
Foritspart,theDefendantAfodLtd(the“Defendant”or“Afod”)isalsoaCanadian
companythatoperatesinBritishColumbia.Itisanimporteroffoodproducts
(includingbagoong)fromthePhilippinesandotherAsiancountries,thatitsellsto
grocerystoresinCanada.
InMay2011,theDefendantimportedfromthePhilippinesseveraldozencasesof
bagoong.TheseproductswereimportedwiththeDefendant’strade-mark,namely
Napakasarap.TheDefendant’slabelsalsoincludedtheexpression“LingayenStyle”
belowitstrade-mark.

©CIPS,2015.*OfROBIC,LLP,amultidisciplinaryfirmoflawyers,patentandtrademarkagents.Publishedunderthe
titleCanadianCourtHoldsPlaceofOriginTrade-markDescriptiveandThereforeInvalid(2015)29:2
WorldIntellectualPropertyReport40-42.Publication142.292.

2
TheDefendant’srevenuefromthesalesofthesecasesofbagoongamountedtoless
than3,500$.
PlaintiffobjectedtotheDefendant’suseoftheword“Lingayen”onitscasesof
bagoongproductsandthereaftercommencedtrade-markinfringementproceedings
againsttheDefendantin2011.Inresponse,theDefendantchallengedby
counterclaimthevalidityoftheLINGAYENregistration.

Sincetheamountatstakewasnotveryhigh,thismatterwasdecidedbywayofa
motionforsummarytrialduringwhicheachpartyprovidedaffidavitevidencetothe
Court.
ThePlaintiff’sevidenceexplainedthatBagoongisaregional,specializedproductthat
hasaconnectionwiththeLingayenmunicipalityinthePhilippines.However,the
Plaintiff’sevidenceprovidedfactssuggestingthatthesignificanceoftheword
LingayenwasgenerallynotknowntoCanadians,norwasitawordincommonusein
theEnglishlanguage.
Foritspart,theDefendantconfirmedthatLingayenisindeedaplaceinthe
Philippines.TheDefendant’sevidencewentsofarastoadvisethatLingayenisa
placeinthePhilippinesknowntoCanadianconsumersandthatLingayenisalso
knowntoCanadiansforitsbagoongproducts.
ThemainissuetobedecidedbytheCourtwaswhethertheLINGAYENtrade-mark
wasclearlydescriptiveordeceptivelymisdescriptiveoftheplaceoforiginofthe
waresandactivitiesassociatedwiththetrade-mark,asprohibitedundersection
12(1)(b)ofCanada’sTrade-marksAct,R.S.C.1985,c.T-13(the“Act”),whenatrade-
markisregistered.Indeed,atrade-markthatisclearlydescriptiveordeceptively
misdescriptiveoftheplaceoforiginofitswaresorservicesisinvalidandshouldbe
struckfromtheregister.Thisspecificcasewasnot,however,onewherethetrade-
markwasdeceptivelymisdescriptivesincetheevidenceestablishedthatthegoodsat
issuedidoriginatefromLingayeninthePhilippines.

WhilethepartiesapparentlyagreedthatLingayenwasaplaceinthePhilippines,they
disagreedonthelegalconsequenceofthisfactconcerningtheissueof
descriptiveness.Forexample,theDefendantsupportedthepositionthatrecognition
ofanameasaplaceoforiginisirrelevantforafindingofcleardescriptivenessunder
thestatutorycriteriaprovidedbysection12(1)(b)oftheAct.FromthePlaintiff’spoint
ofview,foratrade-marktocontravenesection12(1)(b)oftheAct,amarkmusthave
agenerallyrecognizedconnectiontothewaresorservicesatissue,inthemindofthe
consumer.Inotherwords,eventhoughageographicalplaceexistssomewhere
outsideCanada,ifthatlocalityisnotknowntoCanadianconsumers,atrade-mark
thatusessuchnamewillnotbeconsideredtobeclearlydescriptive.Moreover,ifthe
secondperspectiveistobeadopted,whoistherelevant“ordinaryconsumer”that
mustbeconsideredwhendeterminingifatrade-markcontravenessection12(1)(b)of
theAct?

Intheend,theCourtdidnothavetochoosewhatroadmaptofollowsincetheyboth
indicatedthesameresult,namelythattheLINGAYENregistrationwasinvalid
becausethetrade-markwasclearlydescriptiveoftheplaceoforiginofthewares
associatedtherewith,inawaythatcontravenessection12(1)(b)oftheAct.

TheCourtdidreviewtheauthoritiesontheissueofcleardescriptivenessofplaceof
origin.Forexample,onelineofauthoritiessupportsthepropositionthatthetrade-
markmustbeexaminedfromthepointofviewofordinaryconsumers(Atlantic
PromotionsIncvCanada(RegistrarofTradeMarks)(1984),2CPR(3d)183(FCTD);
ConsorziodelProsciuttodiParmavMapleLeafMeatsInc.,[2001]2FC536(TD);
affirmed,2002FCA169).
Incontrast,theCourtinSociedadAgricolaSantaTeresaLtdavVinaLeydaLtda,
2007FC1301,heldthatcleardescriptionofaplaceoforigin“isnotdependentonthe
knowledge,orlackthereof,oftheaverageCanadianconsumer.”Whatisimportantis
theexistenceofaregionunderaparticularnameandtheconnectionbetweenthat
regionandparticulargoodsorservices.Underthisapproach,itistheconnection
betweenregionandgoodwhichisdecisiveratherthantheissueofperceptionbythe
Canadianconsumer.
However,regardlessofwhatlegalreasoningmirrorsmostcloselythewordsof
section12(1)(b),theCourtwasoftheviewthatinthisspecificcase,theyboth
providedaninescapableconclusion,namelythattheregistrationfortheLINGAYEN
trade-markwasinvalid.Indeed,thereexistedanobjectiveconnectionbetweenthe
CityofLingayenandthegoodsoriginatingtherefrom.Moreover,eventakinginto
accounttheperceptionoftheCanadianconsumer,theresultwouldbethesame
becauseoftheidentityofthe“ordinaryconsumer”ofthewaresatissue.This
consumerisnotanyconsumerbutrather,theaverageCanadianconsumerofthe
particulargoodsinquestion,inotherwords“thoseCanadianswhoarefamiliarwith
andtypicallypurchasethewareinquestion”(paragraph37oftheCourt’sreasons).In
thiscase,theevidencerevealedthatthemainpurchasersofbagoonginCanadaare
CanadiansofFilipinoorSouth-EastAsianorigin(paragraph40oftheCourt’s
reasons).TheCourtthereforewrote(atparagraph42):“Inconclusion,giventhatthe
waresatissuedooriginatefromLingayen,andthatLingayen,asaregion,hasa
generallyrecognizedconnectiontofishsauceproductsfromtheperspectiveofthe
averageCanadianconsumerofthewaresinquestion,itisclearlydescriptiveofthose
products’placeoforigin.Regardlessofwhichapproachistakentothequestionof
geographicmarks–theoutcomeisthesame.”
Accordingly,theCourtdeclaredthePlaintiff’sregistrationinvalid.

Asafurtherfinding,theCourtnotedthattheDefendantwasnotevenusingtheword
“Lingayen”asatrade-markbutratherasawaytoindicateacharacteristicofthe
bagoongproducts.

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ThiscaseisinstructivefortraderswhosellinCanadaimportedproducts.Whilethe
marktheychoosetoregisterandlinktotheirgoodsinCanadamightnotbea
householdnameforamajorityofCanadians,ifitisknowntothatsegmentofthe
populationthatseekoutthegoodsinquestionasthenameoftheplaceoforiginof
thosegoods,itistheperceptionofthoseconsumersthatwillberelevantincaseofa
challengetothevalidityoftheregistrationofthemarkthatraisestheissueofclear
descriptivenessofthemarkasitconcernsplaceoforigin.

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neighbouringrights;computer,softwareandintegratedcircuits;
biotechnologies,pharmaceuticalsandplantbreeders;tradesecrets,know-
how,competitionandanti-trust;licensing,franchisingandtechnology
transfers;e-commerce,distributionandbusinesslaw;marketing,publicityand
labelling;prosecutionlitigationandarbitration;duediligence.
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COPYRIGHTER
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