Serious Intent to Resume Use of Mark Needed to Avoid Summary Expungement

1995-01-01

SERIOUSINTENTTORESUMEUSEOFTRADE-MARKMUSTBEFOUNDTOEXCUSE
ABSENCEOFUSEINSUMMARYEXPUNGEMENTCASE

by
BarryGamache
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

ArecentdecisionoftheTrialDivisionoftheFederalCourtofCanadahas
reviewedtowhatlimitscanbestretchedthe”specialcircumstancesthat
excusetheabsenceofuse”ofatrade-markinsummaryexpungement
proceedings(EdwinCompanyLtd.v.176718CanadaInc.,No.T-803-94,
March30,1995).
ThisCourtcaseresultsfromanappealofadecisionoftheRegistrarofTrade-
MarksdatedFebruary4,1994wherebytheexpungementoftworegistrations
coveringtheFIORUCCItrade-markforclothing(“theregistrations”)was
orderedforabsenceofuseofthetrade-markandlackofspecial
circumstancesexcusingitsnon-use.Theregistrationswereoriginallyheldby
anItaliancompany,FiorucciS.p.A.(“Fiorucci”).
OnOctober31,1990,attherequestof176718CanadaInc.,theRegistrarhad
issuedanoticeunderSection45ofCanada’sTrade-markAct(R.S.C.,1985c.
T-13)requiringFioruccitoshowuseinCanadaofthetrade-markcoveredby
theregistrations.
Section45providesasummaryprocedurewherebytheRegistrarmay,atthe
writtenrequestofanythirdparty,requirearegisteredownertofurnish
evidencebywayofaffidavit,showinguseofthetrade-markcoveredbythe
registrationinassociationwiththewaresmentionedthereinatanytime
duringatwo-yearperiodimmediatelypreceedingthedateoftheRegistrar’s
notice,andinthecasewheretherehasnotbeenuseduringthatperiod,the
detailsofthespecialcircumstancesthatwouldexcusetheabsenceofuse.
Inresponsetothenotice,FrancoTrentani,thesolereceiverofFiorucci,filed
anaffidavitdatedOctober15,1991.TheregistrationswereassignedtoEdwin
CompanyLtd.(“Edwin”),aJapanesecompany,onMay25,1992andthe
assignmentwasrecordedwiththeTrade-MarksOfficeonDecember31,1992.

TheRegistrarreviewedtheTrentaniaffidavitandconcludedthatno
evidenceofusehadbeenestablishedduringtherelevantperiod(October
31,1988toOctober31,1990)asthelastevidenceofusein1988wasthree
invoicesdatedAugust9,1988(threemonthspriortotherelevantdate)
showingsalestoaQuebecCitystore.TheRegistrarthusorderedthatthe
registrationsbeexpunged.
UponappealfromtheRegistrar’sdecision,Edwin,thenewownerofthe
registrations,filedadditionalevidenceaspermittedbytheFederalCourt
Rules,namelyanaffidavitbythepresidentofEdwin,ShujiTsunemianda
secondaffidavitbythesolereceiverofFiorucci,FrancoTrentani.Bythis
evidence,EdwintriedtoconvincetheCourtthatitestablisheduseofthe
markFIORUCCIduringtherelevantperiodor,alternatively,thatspecial
circumstancescouldexcusetheabsenceofuse.
Mr.JusticeRichardoftheTrialDivisionoftheFederalCourtrejectedthe
allegedevidenceofuseasunreliableandconcentratedhisattentiononthe
circumstancesputforthtoexcusetheabsenceofuseofthetrade-mark
coveredbytheregistrationsduringtherelevantperiod:inthespringof1989,
Fiorucciwasforcedintoreceivershipbyitscreditors;Mr.Trentaniwas
thereafternamedassolereceiverbytheItaliancourtsandinApril1990,a
settlementprocedurewasapprovedatacreditors’meeting;onJune4,1990,
apreliminarycontractwassignedwherebyEdwinwouldtakeoverFiorucci’s
assets.InOctober1990,theItalianCourtsratifiedthiscontractbutitwasonly
inMay1992thattheassetsofFiorucciwereassignedtoEdwin.
Duringthisperiod,Fiorucciwasunabletomanufactureorsellproductsunder
theFIORUCCItrade-mark.AfterMay1992,thenewowner,Edwin,wasunable
tocommenceuseofthetrade-markFIORUCCIinCanadasincesuitable
arrangementshadtobenegotiatedwithadistributorinthiscountry.An
understandingwasfinallyreachedbyEdwinwithanexclusivedistributorin
May1994.IntheTsunemiaffidavit,itwasindicatedthatEdwinhadadefinite
intentionofusingthemarkinCanada.However,noactualusebyEdwinin
CanadasinceMay1992hadbeenestablished.
Caselawonspecialcircumstancesexcusingtheabsenceofusehas
identifiedthreeimportantcriteriatodeterminewhetherspecial
circumstancesdoexist.
Firstly,thelengthoftimeduringwhichatrade-markhasnotbeeninuse;
secondly,itmustbedeterminedwhethertheregisteredowner’sreasonsfor
notusingthetrade-markareduetocircumstancesbeyonditscontrol;thirdly,
onemustfindwhetherthereexistsaseriousintentiontoshortlyresumeuse
(LanderCo.CanadaLtd.v.AlexE.Macrae&Co.(1993),46C.P.R.(3d)417
(F.C.T.D.,RouleauJ.)atpage419;RegistrarofTrade-Marksv.HarrisKnitting

MillsLtd.(1985),4C.P.R.(3d)488(F.C.A.,PratteJ.)atpages492and493;John
LabattLtd.v.TheCottonClubBottlingCo.(1976),25C.P.R.(2d)515(F.C.T.D.,
CattanachJ.)atpage123;ProfessionalGardenerCo.Ltd.v.Registrarof
Trade-Marks(1985),5C.P.R.(3d)568(F.C.T.D.,StrayerJ.)atpage573).
Inapplyingthethree-parttesttothecaseatbar,Mr.JusticeRichardtook
notethattheperiodofnon-useranfromthelastuseinAugust1988tothe
planneddistributioninMay1994,amountingtoalmostsixyears.Thisrelatively
longperiodofnon-usedirectlyaffectedtheweightoftheevidence
establishingthereasonsfornon-use.
InMr.JusticeRichard’sopinion,Edwindidnotestablishaseriousintentionto
shortlyresumeuse:attentionwaspointedtothefactthatnodetailsregarding
thenegotiationstofindadistributorinCanadawereputforward;no
documentaryevidenceregardingnegotiationsoftheplanneddistributionin
Canadawereestablished;mostimportantly,Edwindidnotseekleavetofile
additionalevidenceofactualuseafterMay1994.
Mr.JusticeRichard’scommentsinthiscaseareatimelyreminderthatitisnot
sufficientforapartywhichhasnotuseditstrade-markforaratherlenghty
periodoftimetosimplyestablishcircumstancesbeyonditscontrol:sufficient
factualinformationregardingaseriousintentiontoshortlyresumeusemust
alsobepresented.
Asafinalnoteofinterest,thetwo-yearperiodpresentlymentionedinSection
45willbeextendedtothreeyearsasofJanuary1,1996whenSection200of
theWorldTradeOrganizationAgreementImplementationAct,S.C.1994,c.
47,shouldfinallycomeintoforce.
PublishedunderthetitleSeriousIntenttoResumeUseofMarkNeededto
AvoidSummaryExpungement(1995),9W.I.P.R.124-125.
LEGERROBICRICHARD,1995.

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