Misunderstanding of a Legal Requirement Can Constitute Excusable Non-Use, Federal Court Rules

1
MISUNDERSTANDINGOFALEGALREQUIREMENTCANCONSTITUTEEXCUSABLE
NON-USE,FEDERALCOURTOFCANADARULES

By
StellaSyrianos*
LEGERROBICRICHARD
,L.L.P.
Lawyers,PatentandTrademarkAgents
CentreCDPCapital
1001Square-Victoria–BlocE–8thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.(514)9876242–Fax(514)8457874
www.robic.ca–info@robic.com
Inaninterestingdecisionregardingevidenceofuseduringsummary
expungementproceedingsundersection45oftheTrade-marksAct,R.S.C.
1985,c.T-13(hereafter:the”Act”),theFederalCourtofCanadaupheldthe
Registrar’sdecisiontomaintaintheRegistrant’strade-markSTALINSKAYAin
associationwithvodka,afterconcludingthattheRegistranthadmetthetest
forexcusablenon-useofatrade-mark(SpiritsInternationalN.V.v.The
RegistrarofTrade-marksandSCProdal94SRL,2006FC520(FC,Mosley,J.,
April26
th,2006)).
Section45istheAct©s”useitorloseit”provisionwhichpermitstheRegistrarof
Trade-markstoexpungetrade-markregistrationswhicharenotinusebyway
ofanadministrativeproceeding.Followingarequestmadebyanythird
party,theRegistrarwillissueanoticerequiringthatanownershowuseofits
registeredtrade-markorjustifyitsnon-use,failingwhichsuchmarkwillbe
expunged.
Therespondentintheseproceedings,SCProdal94SRL(hereinafter:”SCP”),is
aRomaniancompanywhichappliedtoregisterthetrade-markSTALINSKAYA
onMarch27,1997inassociationwithvodka,basedonuseandregistrationof
thismarkinitscountryoforigin,Romania.Thetrade-markwasregistered
underTMA501,347onSeptember28,1998.
TheSection45proceeding

CIPS,2006.*Lawyer,StellaSyrianosisamemberofLEGERROBICRICHARD,L.L.P.amultidisciplinaryfirmof
lawyers,andpatentandtrade-marksagents.Publishedat(2006),20-6W.I.P.R.1underthetitle
MisunderstandingofLegalRequirementCanConstituteExcusableNon-Use.Publication
142.189.

2
OnMarch28,2002,theRegistrarofTrade-marksforwardedanoticetoSCP
requiringtheRegistranttofurnishanaffidavitorastatutorydeclaration
showingwhetherthetrade-markwasinuseinCanadaatanytimeduringthe
threeyearperiodimmediatelyprecedingthedateofthenoticeand,ifnot,
thedatewhenitwaslastsoinuseandthereasonfortheabsenceofsuch
usesincethatdate.
SCPsubmittedtheaffidavitofIoana-ClaudiaMarin,thebrandmanagerfor
SCP.Inheraffidavit,Ms.Marinadmittedthatthetrade-markSTALINSKAYA
wasnotcurrentlyinuseinCanadaandthatithadneverbeeninusein
Canada.However,sheproceededtoexplainwhatshebelievedwere
specialcircumstancesthatexcusedtheabsenceofuse:SCPwastoldduring
informalandformalcontactswithamarketingagencyhiredbySCPin
January2001andtheSociétédesAlcoolsduQuébec(the”SAQ”)thatanISO
9001certificationandattractivepackagingwererequiredtosellitsproducts
inCanada.AccordingtoMs.Marin,thedelaycausedbyseekinganISO9001
certificationhadpreventedtheSCPfromenteringtheCanadianmarketand
thattherequirementforamoreattractivelydesignedlabelfortheproduct
wasanimpedimentforentryintotheCanadianmarket.
TheRegistrar’sdecision
InherdecisionofFebruary25
th,2006,theRegistrarruledthattheSTALINSKAYA
trade-markwasnot”deadwood.”Inmakingitsfinding,theRegistraridentified
anumberofstepstakenbySCPwhich,inherview,constitutedcontinuous
Canadianmarketactivity:(i)marketresearch,packagingandimprovement
intheproductpresentation,(ii)updatingtheproductandbottling
technology,(iii)relationswithaCanadianmarketingagencyandtheSAQ.
Testforexcusablenon-use
TheRegistrarappliedthethree-prongtestsetoutintheFederalCourtof
AppealinRegistrarofTrademarksv.HarrisKnittingMillsLtd(1985),60N.R.380,
4C.P.R.(3d)488(F.C.A)[HarrisKnitting]:
(1)thelengthoftimeduringwhichthemarkhasnotbeeninuse;
(2)whetherthereasonsfornon-usearebeyondthecontroloftheregistered
owner;and
(3)whetherthereexistsaseriousintentiontoshortlyresumeuse.
TheCourtreiteratedthatthetestforspecialcircumstancesasarticulatedin
HarrisKnittingdidnotstatethatthereasonsfornon-usemustbeunusual,

3
uncommonorexceptionalbutrathertheyshouldbebeyondthecontrolof
theRegistrant.
Inconsideringthethreeelementsofthetestanddismissingtheappeal,the
Courtruledthatthereasonsofnon-useadvancedbySCPwerebeyondits
controlandthatitwasreasonabletoconcludethatavodkadistillerfroman
emergingnationwouldbeunfamiliarwithCanadianalcoholdistribution
requirementsandwouldrelyonmarketingadvicefromalocalfirmwith
regardtoproductqualityandpromotionalstandards.Asforthebeliefthat
ISOcertificationwasaprerequisite,theCourtalsoconsideredthiselementto
bereasonableandstatedthatthereareprecedentsnotonlyforalegal
requirementconstitutinganexcusefornon-use,butalsoforabelief,evena
mistakenbelief,insucharequirementconstitutinganexcusefornon-useand
proceededtodismisstheappeal.
Conclusion
Thiscaseresonateswiththewellestablishedprincipalthatexcessiveevidence
isnotrequiredtodemonstrateexcusablenon-useandthattheburdenof
proofonaRegistrantisrelativelylow.Mostimportantly,themeaningof
“specialcircumstances”undertheActarethoseaffectingtheindividual
traderinquestionandnotnecessarilyalltraders;aRegistrant’sreasonsto
justifynon-usedonothavetoapplytoallbusinessesinthesamepositionas
theRegistrant.Asaresult,theCourtremindsusthatthedeterminationasto
whatconstitutesexcusablenon-useiscarriedouthavingregardtothe
circumstancesofeachcasewhichturnsonitsownfacts.

4
ROBIC,ungrouped©avocatsetd©agentsdebrevetsetdemarquesde
commercevouédepuis1892àlaprotectionetàlavalorisationdela
propriétéintellectuelledanstouslesdomaines:brevets,dessinsindustrielset
modèlesutilitaires;marquesdecommerce,marquesdecertificationet
appellationsd©origine;droitsd©auteur,propriétélittéraireetartistique,droits
voisinsetdel©artisteinterprète;informatique,logicielsetcircuitsintégrés;
biotechnologies,pharmaceutiquesetobtentionsvégétales;secretsde
commerce,know-howetconcurrence;licences,franchisesettransfertsde
technologies;commerceélectronique,distributionetdroitdesaffaires;
marquage,publicitéetétiquetage;poursuite,litigeetarbitrage;vérification
diligenteetaudit.ROBIC,agroupoflawyersandofpatentandtrademark
agentsdedicatedsince1892totheprotectionandthevalorizationofall
fieldsofintellectualproperty:patents,industrialdesignsandutilitypatents;
trademarks,certificationmarksandindicationsoforigin;copyrightand
entertainmentlaw,artistsandperformers,neighbouringrights;computer,
softwareandintegratedcircuits;biotechnologies,pharmaceuticalsandplant
breeders;tradesecrets,know-how,competitionandanti-trust;licensing,
franchisingandtechnologytransfers;e-commerce,distributionandbusiness
law;marketing,publicityandlabelling;prosecutionlitigationandarbitration;
duediligence.
COPYRIGHTER
IDEASLIVEHERE
ILATOUTDEMÊMEFALLUL©INVENTER!
LAMAÎTRISEDESINTANGIBLES
LEGERROBICRICHARD
NOSFENÊTRESGRANDESOUVERTESSURLEMONDEDESAFFAIRES
PATENTER
R
ROBIC
ROBIC+DROIT+AFFAIRES+SCIENCES+ARTS
ROBIC++++
ROBIC+LAW+BUSINESS+SCIENCE+ART
THETRADEMARKERGROUP
TRADEMARKER
VOSIDÉESÀLAPORTÉEDUMONDE,DESAFFAIRESÀLAGRANDEURDELA
PLANÈTE
YOURBUSINESSISTHEWORLDOFIDEAS;OURBUSINESSBRINGSYOURIDEASTO
THEWORLD