Relevant date crucial in assessing descriptiveness rules deral court of appeal in Canada drugs case

2008-01-01

R
ELEVANTDATECRUCIALINASSESSINGDESCRIPTIVENESS
RULESFEDERALCOURTOFAPPEALINCANADADRUGSCASE

BARRYGAMACHE**
LEGERROBICRICHARD,
LLP
L
AWYERS,PATENT&TRADE-MARKAGENTS
Inadecisionthatunderlinestheimportanceofconsideringtherelevantdate
establishedbystatutewhenexaminingthedescriptivenessofatrade-mark,Canada’s
FederalCourtofAppealrecentlyallowedtheappealofatrade-markownerand
restoredhisregistrationsforthetrade-marksCANADADRUGS.COMandCANADA
DRUGSthathadbeenexpungedbytheFederalCourtinproceedingsbroughtunder
subsection57(1)ofCanada’sTrade-marksAct,R.S.C.1985,c.T-13(hereafterthe
“Act”)(Thorkelsonv.PharmawestPharmacyLtd.,2008FCA100(F.C.A.,
Létourneau,NadonandSharlow,JJ.A.,March13,2008)).
OnMay20,2003,thetrade-marksCANADADRUGSandCANADADRUGS.COM
wereregisteredinthenameofMr.KrisThorkelson,apharmacist,forusein
associationwiththe“operationofadrugstore,dispensaryandpharmacy”alongwith
the“onlineoperationofadrugstore,dispensaryandpharmacy”.However,priorto
securingregistration,Mr.Thorkelsonhaddisclaimedtheexclusiverighttousethe
words“Canada”,“drugs”and“.com”apartfromthemarksasawhole.Mr.Thorkelson
allowedcompanieshecontrolledtouseunderlicencetheregisteredtrade-marks.
In2006,oneofMr.Thorkelson’scompaniesinitiatedanactionintheFederalCourt
againstPharmawestPharmacyLtd.(“Pharmawest”)whowasusingatrade-mark
incorporatingthewords“GetCanadianDrugs.com”.ThispromptedPharmawestto
commencejudicialexpungementproceedingsagainsttheCANADADRUGSand
CANADADRUGS.COMregisteredtrade-marksundersection57oftheActthatgives
theFederalCourtexclusivejurisdictiontohearanyapplicationthatconcernsthe
contentoftheregister.
Pharmawest’sexpungementapplicationreliedonparagraph18(1)(a)oftheActthat
indicatesthattheregistrationofatrade-markisinvalidifthetrade-markwasnot
registrableatthedateofregistration.AstheCourtnoted,thegroundofattackbased
onregistrabilityrequiresanexaminationofsection12oftheActthatexplainsthata
trade-markisregistrableifitisnot“whetherdepicted,writtenorsounded,either

©CIPS,2008.*BarryGamacheisamemberofLEGERROBICRICHARD,LLP,amultidisciplinaryfirmoflawyers,patent
andtrademarkagents.Publishedat(May2008),22:5WorldIntellectualPropertyReport3-4underthe
tyitleRelevantDateisCrucialinAssessingDescriptiveness.142.212.

2
clearlydescriptiveordeceptivelymisdescriptiveintheEnglishorFrenchlanguageof
thecharacterorqualityofthewaresorservicesinassociationwithwhichitisusedor
proposedtobeusedoroftheconditionsoforthepersonsemployedintheir
productionoroftheirplaceoforigin”.
Pharmawest’sapplicationwasheardonMarch15,2007.OnApril19,2007,
TeitelbaumJ.oftheFederalCourtgrantedtheapplicationandorderedthe
expungementoftheCANADADRUGSandCANADADRUGS.COMregisteredtrade-
marksonthebasisofthedescriptivemessageconveyedbyeachmark.Afteran
appealcommencedbyMr.ThorkelsonbeforetheFederalCourtofAppeal,the
partiesreachedasettlementbywhichtheinfringementactionwasdiscontinuedand
PharmawestceaseditsparticipationinMr.Thorkelson’sappeal.
Althoughtheappealproceededunopposed,Mr.Thorkelsonstillhadtoconvincethe
FederalCourtofAppealthattheFederalCourtjudge’sdecisioncouldnotstandeither
becauseofoneormorepalpableandoverridingerrorsoffactsbythetrialjudgeor
oneormorefindingsoffactthathadnoevidentiaryfoundation.Thegroundsof
expungementadvancedbyPharmawestthereforerequiredanexaminationofthe
recordtodeterminewhethertherewasbeforetheFederalCourtevidence
establishingthatasofthedateofregistrationofthetrade-marks
CANADADRUGS.COMandCANADADRUGS(i.e.May20,2003),thosetrade-
markswereclearlydescriptiveordeceptivelymisdescriptiveofthecharacteror
qualityoftheoperationofanonlinepharmacybusiness.
Writingforaunanimousbench,SharlowJ.A.examinedtheaffidavitevidencefiled
beforetheFederalCourtjudge;shenotedthatitpurportedtoestablishthattheuseof
thewords“Canada”and“drug”ontheCanadianmarketplacemeantpharmacy
servicesoriginatinginCanada.However,theevidencedidnotappeartorefertothe
situationasitexistedonMay20,2003,thedatewhentheCANADADRUGSand
CANADADRUGS.COMtrade-markswereregistered.Sheconcludedthatalthough
theevidencedidrefertopossibledescriptiveaspectsofeachtrade-mark,italsowas
clearthattheAct’srequirementtoconsidertherelevantdatesetoutinparagraph
18(1)(a)wasnotmet.Forthatreason,sheconcludedthatitcouldnotfairlybesaid
thatonMay20,2003,thephrase“CanadaDrugs”,whichistheexpressionatthe
coreofbothtrade-marksinissue,hadaknownmeaning.Onthatbasis,theCourt
allowedtheappeal.
AlthoughtheCourtallowedthisappealwhichwasunopposedfurthertoasettlement
betweentheparties,thereasonsreleasedbytheCourtprovideareminderofthe
importanceofconsideringthelegaltestsmandatedbyParliamentonthespecific
datesrelatingthereto.Thepointshouldberememberedwhenpreparingevidencein
thistypeofcasesincemostproceedingschallengingtheregistrabilityoftrade-marks
ontheregisteraretakenmanymonths,ifnotyears,afterthetimeofregistration
whichistherelevantdatementionedinparagraph18(1)(a)oftheAct.

3

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