Registered Users on the Way Out

1988-01-01

REGISTEREDUSERSONTHEWAYOUT

by
HuguesG.Richard
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
CentreCDPCapital
1001Square-Victoria-BlocE–8
thFloor
Montreal,Quebec,CanadaH2Z2B7
Tel.:(514)9876242-Fax:(514)8457874
www.robic.ca-info@robic.com
InCanada,aproperinterpretationofthecommonlawwouldseemto
indicatethatgenerallyspeaking,atrademarkcanonlybeenusedbyits
owner.Usebyathirdpartywill(unlessspecialcircumstancesareshown)
jeopardizethedistinctivenessofatrademark.Ifamarkhaslostits
distinctiveness,itcannomorebeconsideredatrademark.ThusinCanada
trademarklicensingisatrickybusiness.
However,theownerofatrademarkregisteredundertheCanadianTrade
MarksActcanallowotherstouseit,ifheavailshimselfoftheprovisionsof
section49oftheAct.Thissectionconstitutesastatutoryamendmentofthe
commonlawinasmuchasitdeemsthattheusebyathirdpartyofa
registeredtrademarkwillnotaffectitsdistinctivenessifthatthirdpartyhas
beenregisteredasaregistereduser.
Thissituationhascreatedseriousproblemsformanytrademarkowners,
especiallyforeignowners,whoarenotallfamiliarwiththeharsh
consequencesofuseinCanadaofatrademarkbyapersonwhoisnota
registereduser.Throughtheyears,theregistereduserprovisionsoftheAct
havebeenunderattackandevenmoresosincethegovernmentalfeesto
bepaiduponregisteringtheusershavegoneupconsiderablyinthelastfew
years(now$100.00peruserforonemark,plus$25.00foreachadditional
mark).
ItwouldseemthattheGovernmentisnowwillingtohavetheActamended
sothattheregistereduserrequirementsareabandoned.Infact,the
CanadianGovernmenthasthrowntheballinthecampofprofessionals
workinginthefieldoftrademarksforthemtocomeupwithanewproposal
whichwoulddoawaywiththeobligationofregisteringthirdpartyusersbut
whichwouldneverthelessmaintainsomedeemingprovisionstoavoid
creatingavacuumwhichwouldbringbacktheapplicationofthestrict
commonlawrules.

ThePatentandTrademarkInstituteofCanadahasbeenplayingaleadership
roleintryingtoarriveataconsensusinthetrademarkprofession.This
consensusiscloseathand.Themajorityviewwouldbethatsection49be
abolishedandreplacedbyprovisionssomewhatsimilartothoseknowninthe
UnitedStatesofAmerica.Inotherwords,inasmuchasthetrademarkowner
wouldcontroldirectlyorindirectlythecharacterorqualityofthewaresor
servicestowhichthelicenseapplies,thentheuse,advertisementordisplayof
thetrademarkbythelicenseeundertheowner’scontrolwouldbedeemed
alwaystohavehadthesameeffectasuse,advertisementordisplaybythe
owner.
Thoserepresentingtheminorityviewwouldwishtoseeavoluntaryrecordal
systemwhichwouldgiverisetoapresumptionofusebytheownerofthe
trademarkwhentheuserisactuallyaregisteredthirdparty.Thosewhoare
againstthislatterproposalthinkthatitwillcreatesimilarproblemsasdoesthe
currentsituation,sincemosttrademarkownerswillfeelcompelledtoregister
theirlicensees.
TheCanadianGovernmentiscommittedtoabolishsection49;itistobe
hopedthattheCanadiantrademarkprofessionwillnotmissthisopportunity.
Publishedat(1988),2W.I.P.R.220-221underthetitleTradeMarkBarSeeksto
EliminateAct’sRegisteredUserProvisions.
LEGERROBICRICHARD,1988.

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