Registered Trade-Mark Canadadrugs.com Found Deceptively Misdescriptive
1
REGISTEREDTRADE-MARKCANADADRUGS.COMFOUNDDECEPTIVELY
MISDESCRIPTIVE
MarcelNaud*
LEGERROBICRICHARD,L.L.P.
Lawyers,PatentandTrademarkAgents
CentreCDPCapital
1001Square-Victoria-BlocE–8thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.(514)9876242-Fax(514)8457874
info@robic.com-www.robic.ca
CandrugHealthSolutionsInc.andPharmawestPharmacyLtdv.KrisThorkelson,
2007FC411(CanLii)
InajudgmentrenderedonApril19,2007,JusticeTeitelbaumoftheFederal
CourtofCanadafoundthatthewordmarksCANADADRUGSand
CANADADRUGS.COM(the“Marks”)issuedtotheCanadianpharmacistKris
Thorkelson(the“Respondent”)werefoundnotonly“clearlydescriptive”butalso
“deceptivelymisdescriptive”unders.12(1)(b)oftheCanadianTrade-MarksAct.
TheseMarkswereheldinvalidandtheirexpungementfromtheRegisterwas
orderedgiventhattheRespondenthasnotdischargedhimselffromhisonusto
showthattheMarkshaveacquireddistinctivenessasofthedateoffilingofthe
applications.
OnFebruary28,2001,therespondentregisteredthedomainname
“CanadaDrugs.com”.OnMarch19,2001,theRespondentstartedtouseitin
associationwithonlineoperationofadrugstore.OnMarch23,2001,the
Respondentappliedfortheregistrationofthetrade-markCANADADRUGS.COM,
and,onMay15,2001,heappliedfortheregistrationofthetrade-markCANADA
DRUGS,bothbasedonproposeduse.Twoyearslater,onMay2,2003,the
RespondentfiledadeclarationofuseoftheseMarksand,onMay20,2003,the
Registrarissuedbothregistrations.ThiswasdoneaftertheRegistrar’sreviewof
theargumentsfiledbytheRespondent’strade-markagentonwhetherornot
theMarkswereclearlydescriptiveordeceptivelymisdescriptive.Registrations
wereissuedwiththerighttotheexclusiveuseofthewordsCANADAandDRUGS
disclaimedapartfromtheMarks.
©CIPS,2007.*Lawyer,MarcelNaudisamemberofLEGERROBICRICHARD,L.L.P.,amultidisciplinaryfirmof
lawyers,andpatentandtrademarkagents.Publication293.045.
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OnNovember21,2002,PharmawestPharmacyLtd(the“Applicant”)registered
thedomainname“GetCanadianDrugs.com”and,sinceDecember2002,used
“GetCanadianDrugs.com”bothasatradenameandasadesigntrade-mark
incorporatingtheexpression“GetCanadianDrugs.com”.InFebruary2006,the
ApplicantreceivedaletterfromtheRespondentrequestingthattheApplicant
ceasealluseofthedomainname“getcanadadrugs.com”.Inreply,the
ApplicantchallengedthevalidityoftheRespondent’sMarksbeforetheCourt.
Theevidenceshowsthat:
·pharmaceuticalssuppliedbyRespondent’sbusinessdonotalloriginate
fromCanada;
·around50%ofthepharmaciesthatactuallydispenseandshipthe
pharmaceuticalsarenotlocatedinCanada;
·lessthan5%oftheRespondent’scustomersareCanadianand95%are
American;
·Theterms“Canada”and“drugs”areusedbythepressindescribing
pharmaceuticalsfromCanada,andnottoreferspecificallytothe
Respondent’sbusinessandservices;
·theCanadianTrade-markRegistercontainsotherregistrationsand
pendingapplicationsfortrade-marksincorporatingthewords“Canada”
or“drugs”incombination;
·In2005,therewere3,500,000visitstotheRespondent’swebsiteandover
$5,000,000hasbeenspentinpromotionoftheRespondent’sMarksand
business,thebulkofwhichtargetedAmericanconsumers.
TheCourtrejectedtheargumentsoftheRespondentandfoundthattheMarks
wereclearlydescriptivesince“asamatteroffirstimpressionand[…]common
sense,theordinaryconsumerwouldconsiderthedescriptivecharacterofthe
markstogotothematerialcompositionoftheservices.”TheCourtalsoadded
that“Canada”and“drugs”are“twogenerictermsthatwouldbeusedbythe
ordinaryconsumeridentifiedinthiscasetolocatepharmaciesinCanadaonthe
Internet.”Thistrademarkingofwordscommontothetradewasviewedbythe
Courtasanunduedisadvantageforlegitimatecompetitors.
Whilethefactthatthepharmaceuticalsusedtofilltheprescriptionsarenotall
manufacturedinCanadamaynotbesufficienttofindthattheMarksare
deceptivelymisdescriptive,thefactthattheprescriptionsarenotalwaysfilledby
aCanadianpharmacywasdeterminativeintheCourt’sfindingthattheMarks
wereinfactdeceptivelymisdescriptive.Onthatissue,theCourtalso
emphasizedthesignificanceofthefactthat“Canadianconsumerswouldtrust
prescriptionfulfillmentfromaCanadianpharmacymorethanthatfromother
countries.”
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EveniftheMarkswerefoundclearlydescriptiveanddeceptivelymisdescriptive,
theMarkscouldhaveremainedregistrablehadtheRespondentbeenableto
showthattheyhadbecomedistinctiveoftheRespondent’sservicesatthedate
offilingtheapplicationsforregistration.However,sincetheRespondentstarted
theoperationofitswebsitelessthanthreemonthspriortothefilingofthe
applications,theCourtfoundthatitwasnotsufficientfortheMarkstoacquire
distinctivenessamongCanadianconsumers.Therefore,anorderforthe
expungementoftheMarkwasissued.
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