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No Good Times for High Times Respondent in Trade-mark Infringement Case

2014-01-07

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NOGOODTIMESFORHIGHTIMESRESPONDENTINTRADE-MARKINFRINGEMENT
CASE

BARRYGAMACHE*
ROBIC,LLP
L
AWYERS,PATENT&TRADEMARKAGENTS

ArecentdecisionbyCanada’sFederalCourthasconcludedthataRespondentinfringedan
Applicant’sHIGHTIMEStrade-markbecauseoftheRespondent’suseof“HighTimes
SmokeShop&Gifts”onitsstoresignage(Trans-HighCorporationv.HightimesSmokeshop
andGiftsInc.,2013FC1190(F.C.),MansonJ.,November26,2013).

Trans-HighCorporation(“Trans-HighCorporation”orthe“Applicant”)istheownerofthe
trade-markHIGHTIMESanditscorrespondingregistrationTMA243,868formagazines.
Applicant’sHIGHTIMEStrade-markhasbeenusedinCanadasinceasearlyas1982.Itis
associatedwithamonthlyperiodicalspecializing,accordingtotheevidence,inthe“interests
ofcounterculture,including,butnotlimitedto,themedicalandrecreationalusesof
marijuana”.Initsreasons,theCourtnotedthattheuseofmarijuanaisindeeda“strong
focus”oftheHIGHTIMESmagazine.
TheApplicantisalsoinvolvedinthesaleofvariouswareswiththetrade-markHIGHTIMES
affixedthereon.Thesegoodsinclude“ashtrays,lighters,DVDs,tee-shirtsandcaps”andare
soldinCanadianretailstores,bymailorder,atfestivalsandonline.TheApplicanthasalso
beeninvolvedwiththeoperationofthewww.hightimes.comwebsitesince1996.

TheApplicantbecameawareoftheactivitiesofHightimesSmokeshopandGiftsInc.
(“HightimesSmokeshopandGifts”orthe“Respondent”)intheNiagaraFallsarea,inOntario,
Canada.TheRespondentwasincorporatedonMarch29,2006.Ithasoperatedaretailshop
underthename“HighTimesSmokeShop&Gifts”.Initsname,thewords“HighTimes”are
givenmuchmoreprominencethanthemuchsmallerwords“SmokeShop&Gifts”.TheCourt
notedthatthepartiesusedverysimilarfontsintheirrespectiveusesoftheexpressionHIGH
TIMES.
TheApplicantsuedtheRespondentfortrade-markinfringementandpassingoff.However,
despitebeingdulyservedwiththeApplicant’sCourtdocuments,theRespondentchosenot
tofilesubmissionsorappearatthehearingbeforetheCourt.

Inthiscontext,theCourtthereforehadtodecidewhethertheApplicanthadmadeoutits
caseoftrade-markinfringementandpassingoffunderCanada’sTrade-marksAct,R.S.C.

©CIPS,2014.*LawyerwithROBIC,LLP,amultidisciplinaryfirmoflawyers,andfpatentandtrade-markagents.
Publishedat(2014),28:2WorldIntellectualPropertyReport3-4underthetitleHighTimesfor
EstablishedTrade-MarkHolderinInfringementCaseinCanada,Publication142.290.

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1985,c.T-13.Attheoutset,theCourtconcludedthatwhiletheRespondent’snamewasHigh
TimesSmokeShop&Gifts,thewords“HighTimes”weretheprominentandonlydistinctive
portionoftheRespondent’sname.
Underthecircumstances,theCourthadtodetermineiftheRespondent’snameHighTimes
wasconfusingwiththeApplicant’sregisteredtrade-markHIGHTIMES.Itthereforehadto
considerwhether,asamatteroffirstimpression,“acasualconsumersomewhatinahurry”
whoseestheRespondent’strade-nameortrade-mark,andhadnomorethananimperfect
recollectionoftheApplicant’strade-mark,wouldbelikelytothinkthattheparties’respective
waresorservicesoriginatefromthesamesource.Onthisissue,theCourtappliedthetest
describedbyCanada’sSupremeCourtinVeuveClicquotPonsardinv.BoutiquesCliquot
Ltée,2006SCC23andMasterpieceInc.v.AlavidaLifestylesInc.,2011SCC27.

Inanalysingwhetherconfusionwaslikelyinthisspecificcase,theCourtexaminedallthe
relevantsurroundingcircumstancesincludingthosespecificallymentionedinsection6(5)of
theTrade-marksAct:
A.theinherentdistinctivenessofthemarksornamesandtheextenttowhichthey
havebecomeknown;
B.thelengthoftimethemarksornameshavebeeninuse;
C.thenatureofthewares,servicesorbusiness;
D.thenatureofthetrade;and
E.thedegreeofresemblancebetweenthetrade-marksortradenamesin
appearanceorsoundorintheideassuggestedbythem.

Thecircumstancesrelatingtolengthoftimeofuseandextenttowhichthetrade-marksat
issuehavebecomeknownfavouredtheApplicant.It’sHIGHTIMEStrade-markhasbeen
bothregisteredandusedfordecadesinCanada.Furthermore,itisawell-knowntrade-mark
inCanadatothe“relevantconsumersinthecounterculturecommunity,bothasamagazine
andasasourceofrelatedwaresandservicesincludingsmokingaccessories”.Foritspart,
theRespondent’sretailoutlethadonlybeeninoperationforarelativelyshorttime.No
evidencewasprovidedastothenotorietyofitsname.

Asfortheparties’respectiveactivities,theCourtfounda“clearoverlap”betweenthe
Applicant’smagazineanditsrelatedwaresandthosesoldintheRespondent’sretailstore.
Bothpartieswereseenastargetingthesameconsumers.

Finally,thefactorconcerningthesimilarityoftheparties’respectivetrade-marksclearly
favouredtheApplicant.
TheCourtthereforefoundthattherewassufficientevidencetoestablishalikelihoodof
confusionbetweentheparties’respectivemarks.Consequently,theRespondent’sprominent
useofthewords“HighTimes”onitsstorefrontwouldthereforeleadtherelevantconsumers
toconcludethatitsactivitiesoriginatedfromtheApplicant.

TheCourtaccordinglyfoundthattheRespondenthadinfringedtheApplicant’sHIGHTIMES
trade-mark,contrarytosections19and20oftheTrade-marksActandhadpassedoffits
businessandwaresasbeingsomehowassociatedorconnectedwiththeApplicant’s
businessorwares,contrarytosection7(b)oftheTrade-marksAct.TheCourtalsoawarded

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theApplicant$25,000asindemnificationfortheRespondent’strade-markinfringementand
passingoff.
WhiletheApplicantalsoraisedtheissueofdepreciationofgoodwill,theCourtconcludedthat
theevidencewasinsufficienttomakeafindinginfavouroftheApplicantonthisissue.

Thiscaseillustrateshoweverytrade-markowner,whateveritsfieldofactivity,shouldbe
vigilanttoensurethatitstrade-markisprotectedagainstinfringerswhorideonthecoattails
ofanestablishedreputation.Therelevantgroupofconsumers(here,thosefromthe
“counterculturecommunity”)shouldalsobeprotectedagainsttrade-markconfusion,oneof
thepurposesoftheTrade-marksAct.

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Forservicespertainingtointellectualproperty,technologyand
communicationlawandrelatedmatters(includingpatentandtrade-mark
agencyservices)aswellaslegalservices.

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circuitsintégrés;biotechnologies,pharmaceutiquesetobtentionsvégétales;secrets
decommerce,know-howetconcurrence;licences,franchisesettransfertsde
technologies;commerceélectronique,distributionetdroitdesaffaires;marquage,
publicitéetétiquetage;poursuite,litigeetarbitrage;vérificationdiligenteetaudit.
ROBIC,agroupoflawyersandofpatentandtrademarkagentsdedicatedsince1892
totheprotectionandthevalorizationofallfieldsofintellectualproperty:patents,
industrialdesignsandutilitypatents;trademarks,certificationmarksandindications
oforigin;copyrightandentertainmentlaw,artistsandperformers,neighbouring
rights;computer,softwareandintegratedcircuits;biotechnologies,pharmaceuticals
andplantbreeders;tradesecrets,know-how,competitionandanti-trust;licensing,
franchisingandtechnologytransfers;e-commerce,distributionandbusinesslaw;
marketing,publicityandlabelling;prosecutionlitigationandarbitration;duediligence.
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