The New Civil Code of Québec and Intellectual Property: Preliminary Reflexions and Comments


THENEWCIVILCODEOFQUÉBECANDINTELLECTUALPROPERTY:PRELIMINARY
REFLEXIONSANDCOMMENTS

by
LaurentCarrière*

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

Introduction
Persons
Integrityoftheperson
Reputationandprivacy
Name
Legalpersons
Family
Successions
Property
Kindsofpropertyandownership
Undividedco-ownership
Administrationofthepropertyofothers
Obligations
Contractofadhesion
Civilliability
Solidarity
Damages
Sale
Lease
Contractofemployment
Contractforservices
Hypothecs
Evidence

©LaurentCarrière,1994.
*Lawyerandtrademarkagent,LaurentCarrièreisaseniorpartnerswiththelawfirmLEGER
ROBICRICHARD,g.p.andwiththepatentandtrademarkagencyfirmROBIC,g.p.This
materialwasdesignedforthepurposeofworkshopsontheCivilCodeofQuébecduring.a
seminarpresentedon1994.03.10bytheCanadianBarAssociation’sContinuingLegal
EducationCommitteeandIntellectualPropertySectiononthegeneraltheme”Changes
affectingInteelctualPropertyinCanada:ANorthAmericanPerspective”Itwasmeantfor
discussionanddoesnotconclusivelystatetheopinionoftheauthororthemembersofhis
firmonthesubjectmatternordoesitprovideanexhaustivereviewthereof.Asubsequent
versionofthismaterialwaspublishedat(1994),11CanadianIntellectualPropertyReview
153-184.ThequalityoftheEnglishtextofthedraftersoftheCivilCodeofQuébechasbeen
highlycriticizedbutwasnotcorrectedforthepurposeofthispaper.Publication126.


Onus
Judicialknowledge
Authenticacts
Computerizedrecords
Reproduction
Admissibilityofevidence
Prescription
Applicablelimitationperiod
Prescriptionmustbepleaded
Wrongjurisdiction
Solidarity
Publicationofrights
Privateinternationallaw
Conclusion:Portalis
AppendixA-Authors
Postface
Introduction
Forthoseofyouwhoarenotfamiliarwiththecivilapproachtoacodification,
let’ssaythataCodeisasystematicarrangement,inacomprehensivebody,
oftheruleswhichrelatetoaparticularmatter.
ACodeisnotanadministrativeconsolidationofpreexistinglawsand
regulationsnorarestatementwhichisgenerallyareport-orstatement-ofthe
rulesemergingfromcaselaw(andwhich,therefore,ismoreinthenatureofa
compilation).
TheCodeproceededfromalegislativeintenttoreduceinoneinstrumentthe
lawsofQuébec.TheCivilCodeofQuébec(aswellasitspredecessor,the
CivilCodeofLowerCanada)isapracticalandaccessiblecodeanddoes
notcontainanystatementsofphilosophicprinciples(asisthecase,for
instance,fortheGermanCode):itonlycodifiesthepositivelaw.Indeed,in
AnActrespectingtheCodificationoftheLawsofLowerCanadarelativeto
CivilmattersandProcedure(L.C.1857,c.43,s.4and6)themandateofthe
codifierswasdescribedasfollows:
4.ThesaidCommissionersshallreduceintooneCode,tobe
calledtheCivilCodeofLowerCanada,thoseprovisionsofthe
LawsofLowerCanadawhichrelatetoCivilMattersandareofa
generalandpermanentcharacter,whethertheyrelateto
CommercialCasesortothoseofanyothernature;buttheyshall
notincludeinthesaidCode,anyoftheLawsrelatingtothe
SeignorialorFeudalTenure.


6.InframingthesaidCodes,thesaidCommissionersshall
embodythereinsuchprovisionsonlyastheyholdtobethen
actuallyinforce,andtheyshallgivetheauthoritiesonwhichthey
believethemtobeso;theymaysuggestamendmentsasthey
thinkdesirable,butshallstatesuchamendmentsseparatelyand
distinctly,withthereasonsonwhichtheyarefound.
SuchaspiritandpracticalapproachwasmaintainedintheCivilCodeof
Québec(or”CCQ”),thePreliminaryProvisionofwhichreads:
TheCivilCodeofQuébec,inharmonywiththeCharterofhuman
rightsandfreedomsandthegeneralprinciplesoflaw,governs
persons,relationsbetweenpersons,andproperty.
TheCivilCodecomprisesabodyofruleswhich,inallmatters
withintheletter,spiritorobjectofitsprovisions,laysdownthejuris
commune,expresslyorbyimplication.Inthesematters,the
Codeisthefoundationofallotherlaws,althoughotherlawsmay
complementtheCodeormakeexceptionstoit.

TheCivilCodeofQuébeccoversalmosteveryfacetofthe”PropertyandCivil
RightsintheProvince”.Itfollowsthatitinteracts/intersectswiththeday-to-
dayoperationofthefederalintellectualproperty(“I.P.”)statutes,i.e.the
exerciseofthoserightsofpropertyintheintangiblessuchasownership,
assignment,licenseorlegaldevolutionthereof.
TheCivilCodeofQuebeccanbeusedtoresolvequestionssuchas,for
example:
(a)Whoistheownerofaninventionorofthecopyrightinawork?ThePatent
Actissilentonthematterandsection13oftheCopyrightActprovidesonly
forageneralproposal;theanswerwillhavetobefoundinarticles2085,
whichdealswithcontractofemploymentand2098whichcoverscontractfor
services.
(b)Whathappenswiththeco-ownershipofapatentorthecommercial
exploitationofaworkofjointauthorship?Answerscouldbefoundinthe
provisionsoftheCCQrelatingtoundividedco-ownership.And,asonewill
see,thoseanswersarenotnecessarilyincompleteharmonywiththefindings
intherecentForgetv.SpecialityToolsofCanadaInc.(1993),48C.P.R.(3d)
323(B.C.S.C.)RowanJ.


(c)Whoisentitledtodefendthemoralrightsofadeceasedauthorunder
section14.2oftheCopyrightAct?Howcouldpropertyrightsbeclaimedin
anunregistredtrademarkortradename,apartfromapassingoffaction?
Couldatrademarkorapatentbeseized?coulditbemortgaged?
(d)Whatisthedestinationoftheso-called”I.P.”rightsinthematrimonial
relationship,especiallywhenitendsbydeathorotherwise?
TheCivilCodeofQuébeccame(S.Q.1991,c.64;Bill125)cameintoforceon
1994.01.01.ItreplacedtheCivilCodeofLowerCanada(“CCLC”)whichwas
adoptedbychapter41ofthestatutesof1865ofthelegislatureofthe
ProvinceofCanada(C.I.F.1866.08.01).
TheCivilCodeofQuébeccomprisestenbooks,namely:
BookOne:Persons;
BookTwo:TheFamily;
BookThree:Successions;
BookFour:Property;
BookFive:Obligations;
BookSix:PriorClaimsandHypothecs;
BookSeven:Evidence;
BookEight:Prescription;
BookNine:Publication:
BookTen:PrivateInternationalLaw.
EachoftheseBooksisdividedinTitles,whicharethemselvesdividedin
Chapters,whichChaptersinturnaredividedinSections,Subsectionsand
Sub-subsections.
TheCivilCodeofQuébec(orCCQ),whichcomprisesitself3168articles
(or”sections”),shouldalwaysbereadinconjunctionwiththe719sectionsof
AnActrespectingtheimplementationofthereformoftheCivilCode(S.Q.
1992,c.57;Bill38).
Furthermore,toimplementtheCivilCodeofQuébec,severalactswere
abrogatedormodifiedindepthandnewactswerepassed,impressivesets
ofregulationswereadoptedandnumerousformswerecreated.Again,allas
ofJanuary1stof1994.
AseachandeveryprovisionoftheCCQcouldnotbediscussedinthispaper,
aselection-albeitarbitrary-hadtobemade;theseprovisionswillbetreated
moreorlessintheorderinwhichtheyappearintheCCQ.


BookOne:Persons
ThecommentsunderthisBookwillbedividedasfollows:
°CertainPersonalityRights
¬IntegrityofthePerson
¬ReputationandPrivacy
¬Name
°Legalpersons
IntegrityofthePerson

Today,toourcontrolofinertmatterhasbeenaddedthecontrolofliving
matter,includingthehumanbeinginallitsaspects.Facedwiththis”bursting”
ofthebody,nowascientifictoolaswellasmaterialforindustry,the
boundariesbetweenpersonsandthingsarenotalwaysclear.[seeDELEURY
(Édith),Lapersonneetsoncorps:l’éclatementdusujet(1991),70Canadian
BarReview448,editorialpresentation]
Forthoseofyouwhoareconsultedbyclinicalinstitutesorbiotechnology
industries,theCCQoffers”some”clarificationsapartfromthegeneral
principlethat:”Everypersonisinviolableandisentitledtotheintegrityofhis
person”.art.10(1)
Alienationintervivos.
(a)apartofthebodymaybealienatedintervivosprovidedthe
riskassumedisnotdisproportionatetothebenefitanticipated:
art.19;
(b)thisalienationisgratuitous:art.25(1);
[thisconstitutesadeparturefromart.20CCLCwherethe
alienationofpartofthebodysusceptibleofregenerationwas
convertibleintocash]
(c)theconsenttothealienationshallbeinwritingbutmaybe
withdrawnverbally:art.24.
Experimentationonhuman.
(a)experimentationonthehumanbodyispermissibleprovided
theriskassumedisnotdisproportionatetothebenefit
anticipated:art.20;
(b)thisexperimentationisgratuitous:art.25(2)
[i.e.,nofinancialrewardbutcompensationforthelossand
inconveniencesuffered];


(c)theconsentshallbeinwritingbutmaybewithdrawn
verbally:art.24.
Deadbody.
(a)adeadbodymaybedisposedof,inwholeorinpart:art.42
(b)thisalienationisgratuitous:art.25(1)
(c.)theconsenttothealienationmaybegiveninwritingor
verbally:art.43.
ReputationandPrivacy

Article3CCQconfirmsthateverypersonistheholderofpersonalityrights,
suchastherighttotherespectofhisname,reputationandprivacy.This
generalprincipleisapplicabletonaturalpersonsaswellastolegalpersons;
article303providesthat”theprovisionsofthisCoderespectingtheexerciseof
civilrightsbynaturalpersonsareapplicableto[legalpersons],adaptedas
required”.
Article35(1)CCQstatesthegeneralprinciplethat”Everypersonhasarightto
therespectofhisreputaionandprivacy”.
Article36CCQprovidesforanon-exhaustivelistofactswhichmaybe
consideredasinvasionsofaperson’sprivacy,amongstwhich:
°appropriatingorusinghisimageorvoicewhileheisinprivate
premises;
°usinghis-name,-image,-likenessor-voiceforapurposeother
thanthelegitimateinformationofthepublic;
°usinghiscorrespondence,manuscriptsorotherpersonal
documents.
Article3CCQprovidesspecificallyfortheinalienabilityofthepersonality
rightsbutitdoesnotprohibittheirlicensing.
Indeed,article35(2)CCQconfirmsthispossibleexploitationbyathirdparty:
“Noonemayinvadetheprivacyofapersonwithouttheconsentofthe
personorhisheirsunlessauthorizedbylaw”.Thisarticlemaybecompared,
forinstance,withthewordingofsubsection27(1)oftheCopyrightAct:
“Copyrightinaworkshallbedeemedtobeinfringedbyanypersonwho,
withouttheconsentoftheownerofthecopyrightdoes…”orsection28.1of
thesameAct”…intheabsenceofconsentbytheauthor…”
Article35(2)CCQalsoconfirmsthatsuchrightsdonotendwiththedeathof
thepersonbut,aspropertyrights,aretobeconsideredaspartoftheestate:


“Noonemayinvadetheprivacyofapersonwithouttheconsentofthe
personorhisheirs
(…).Foranapplicationofthelegaldevolutionofthose
rightsreferencecouldbemade,forinstance,toFondationLeCorbusierv.
SociétéencommanditemanoirLeCorbusierPhaseI(1991),[1991]R.J.Q.
2864(Qué.Sup.Ct.)LemieuxJ.,at2871-2873;inappeal500-09-001609-916,
which,evenifdecidedbeforethecomingintoforceoftheCivilCodeof
Quebecoffersinterestingperspectives..Inthismatter,aFrenchfoundation
claimedtobeentrustedtorepresentasitslegalheir
theFrencharchitect
CharlesEdouardJeanneretditLeCorbusier.Thefoundationsuccessfully
restrainedapropertydeveloperfromusingthewords”LeCorbusier”aspartof
itscorporatename.
Thedevolution”àcausedemort”ofthesepersonalityrightsisalsoconfirmed
byarticle625(3):
Theheirsareseisedoftherightsofactionofthedeceased
againstanypersonorthatperson’srepresentatives,forbreachof
hispersonalityrights.
Article1610CCQfurtherstatesthatwheretherightsofacreditortodamages
resultfromabreachofpersonalityright,sucharightmaynotbeassigned
andmaybetransmittedonlytohisheirs.
Asthepersonnalityrightsareinherenttotheperson,thereisnolegal
requirement,likeinTennesseeorCaliforniatorecordspecificallythoserights,
apartfromthegeneralformalitiesrelatedtotheacceptanceofasuccession.
Itwouldalsoseemthattheapplicablelimitationofactionforbreachofa
personalityrightwouldbethegeneraloneofthreeyears(art.2925)unlessthe
actionisconsideredasfordefamation(inwhichcaseitwouldbeoneyearof
theknowledge:art.2929).
Asalastword,beitnotedthatthecollection,useandcommunicationof
informationonapersonisnowseriouslycircumscribedinviewofarticle37
anditsrelatedAnActrespectingtheprotectionofpersonalinformationinthe
privatesectoror”Loisurlaprotectiondesrenseignementspersonnelsdansle
secteurprivé”(S.Q.1993,c.17)
Name

Article5statesthat”everypersonexerciseshiscivilrightsunderthename
assignedtohimandstatedinhisactofbirth”Theuseofanameotherthan
hisnameisnot,however,prohibited:itwouldbethecase,forinstancefora


pseudonymornomdeplume.Insuchacase”apersonwhousesaname
otherthanhisownisliableforanyresultingconfusionordamage”.
Therighttotherespectofthename,alreadyreferredtoinarticle36(5)CCQ,
isrestatedatarticle55(1)CCQ:”Everypersonhasarighttotherespectofhis
name”.
Thereisarightofactiontoinsuretherespectofanamethatisvestedupon
theholderofthenameaswellashisspouseorcloserelatives:article56(2)
CCQ.Whethersuchrightsofactionofthespouseortherelativesaredistinct
fromtherightsofactionoftheholderofthenamehasyettobedetermined,
aswellas,forinstance,prioritybetweenheirswhomightconsenttothisuse
andsurvivingspousesorrelativeswhodonot.
Aninterestingquestionmayalsoariseinregardofthedescendability(or,if
oneprefers,transmissibilty)adinfinitumoftherighttoaname(orrelated
personalityrights)andparagraph9(1)(L)oftheTrade-MarksAct,whichreads:
Nopersonshalladoptinconnectionwithabusiness,asatrade-
markorotherwise,anymarkconsistingof,orsonearly
ressemblingastobelikelytobemistakenfor(…)
theportraitorsignatureofanyindividualwhoislivingorhasdied
withintheprecedingthirtyyears.
Itisalsoofinteresttonotethatarticle35CCQ,asparticularizedbyarticle36
CCQ,isaquasiduplicationofsection5oftheQuébecCharterofHuman
Rights:itfollowsthataninvasionofthepersonnalityrightsmaygiveraisetoa
claimforthedamagessustainedaswellpunitiveandexemplarydamages.
Legalpersons

Corporations,undertheCivilCodeofQuebec,arenolongerreferredtoas
“corporations”butrather”legalpersons”,eitherofpublicorofprivateinterest.
Unlessotherwiseindicated,legalpersonshavethesamerightsasnatural
persons.
Alegalpersonhasanameunderwhichitexercisesitsrightsbutitmayalso
useanameotherthanitsownname:art.306CCQ.
Atthispoint,itisimportanttonotethecomingintoforce,alsoasof1994.01.01
ofAnActrespectingthelegalpublicityofsoleproprietorships,partnerships
andlegalpersonsor”Loisurlapublicitélégaledesentreprisesindividuelles,
dessociétésetdespersonnesmorales”(S.Q.,1993,c.48)[Indeed,onewill


havealsonotedthat,asamatteroflegaldrafting,”shorttitlesarenolonger
usedinQuebeclegislation!]
Thefactisthatsection2ofthisActrespectinglegalpublicityprovidesforthe
compulsoryregistrationof:
(1)everynaturalpersonoperatingasoleproprietorship
inQuébec,whetherornotitisacommercialenterprise,undera
namewhichdoesnotincludetheperson’ssurnameandgiven
name;à
(2)everygeneralpartnershipandlimitedpartnership
formedinQuébec;
(3)everypartnershipnotformedinQuébec,ifitcarries
outanactivityinQuébec,includingtheoperationofan
entreprise,orpossessesanimmovableright,otherthanaprior
calimorhypothec,inQuébec;
(4)everylegalpersonestablishedforaprivateinterest
andwhichisconstitutedinQuébec;
(5)everylegalpersonestablishedforaprivateinterest
notconstitutedinQuébec,butdomiciledinQuébec,which
carriesonanactivityinQuébec,includingtheoperationofan
enterprise,orpossessesanimmovablerealright,otherthana
priorclaimorhypothec,inQuébec;
(6)everylegalpersoncontemplatedinparagraph4or
paragraph5whichresultsfromanamalgamation,otherthana
simplifiedamalgamation,orfromadivision,wheresuch
operationisprovidedforinlaw.
Legalpersonsconstitutedbefore1994.01.01willalsohavetoregister
inasmuchastheystillfallinoneofthenamedcategories.
Pursuanttosection10ofthisActrespectinglegalpublicity,adeclarationof
registrationshallcontain,interalia,(1)theregistrant’snameand(2)anyother
nameusedbytheregistrantinQuébecincarryingonanactivityorin
operatinganenterprise.
Themostsurprizingaspecthoweveristheinterpretationcurrentlygiventothis
obligationbytheQuebecSuperintendantofFinancialInstitutions(“Inspecteur
généraldesinstitutionsfinancières”or”IGIF”)TheIGIFconsidersthat
trademarks,whetherforwaresorservices,astheydistinguishthebusinessof
thelegalperson,orpartthereof,shouldbeincludedinthisregistration.
IndeedtheIGIF’sguideofDéclarationd’immatriculation-personnemorale
specificallystates,atp.9:
AutresnomsutilisésauQuébec.


TouslesnomsutilisésauQuébecparunassujettidansl’exercice
desonactivité,del’exploitaiondesonentreprise(…)doivent
êtreenregistrés.
Celacomprendnonseulementlesnomsd’empruntutiliséspour
identifieruneactivité,unétablissementouuneentreprise,mais
encorelesnomsdemarchandisesoudeservices(marquesde
commerce)dontl’assujettiestpropriétaireouusagerauQuébec.
Onemayargue(amongstotherthings!)that,atleastfromaconceptual
pointofview,suchaninterpretationoftheIGIFtakesusbacktothesituation
prevailingbeforetheTradeMarksActof1954whenthetrademarkcouldnot
beassignedwithouttherelatedgoodwillofthebusiness.
Inanyevent,asthefeeforthedepositofanannualdeclarationisonly69$
[foraprofit-makinglegalperson],irrespectiveofthenumberoftrademarks,
tradenamesorstylesreferredtointheregistrationform,itwouldcertainlybea
goodmovetoincludeallthosetrademarksinthedeclarationasitshould
constituteabartotheadoptionofasimilartrademark/tradenamebythird
parties.DespiteambiguitiesinthewordingoftheGuide,itwouldseemsthat
thisregistrationshouldcoveronlythe”names”usedintheQuebecterritory,
thereforeexcludingproposedusetrademarks.
Inviewofthefactthatwhenassigninganametoalegalperson,the
QuebecIGIFdoesnotconsultnortakeintoaccountthetrademarksregister
orthefederal(orotherprovincial)tradenamesregisters,thisregistrationshall
beconsideredasaninterestingtooltoprotectone’strademarkagainstthe
incorporationofsuchatrademarkaspartofthebusinessorcorporatename
ofathirdpartyconstitutedincorporationundertheQuebecCompaniesAct
(R.S.Q.,c.C-38)orsimilarstatutes.Theunderlyingconstitutionaldebateover
thematterisobviouslynotinthescopeofthispaper.
[astotheprohibitionsofregistration,seesection13ofthatstatute
andregulationsthereunder:
13(1)”contrarytotheCharteroftheFrenchlanguage,
13(2)”prohibitedbyregulations”,
13(7)”falselysuggestsrelationtoanotherperson”,
13(8)”mayleadtoconfusionwithanameusedbyanother
person”,
13(9)liabletomisleadthirdpersons”.]

Finally,asamendedalsoon1994.01.01,subsection68(1)oftheChartedela
languefrançaise(L.R.Q.,c.C-11)allows


Afirmnamemaybe
accompaniedwithaversionin
alanguageotherthanFrench
providedthat,whenitisused,
theFrenchversionofthefirm
nameappearsatleastas
prominently.
U
neraisonsocialepeut
êtreassortied’uneversion
dansuneautrelangue
quelefrançaispourvu
que,danssonutilisation,la
raisonsocialedelangue
françaisefiguredefaçon
aumoinsaussiévidente.

ThissubsectionoftheCharterparallelssection13oftheaforesaidAct
respectingthelegalpublicity:”Everyregistrantwhosenameisinalanguage
otherthatFrenchmustdeclaretheFrenchversionofthenameusedin
Québecincarryingonactivities,[or]inoperatinganenterprise(…).”
Let’sdealnowshortlywiththecorporateveil
!Article309CCQsetsdownthe
generalprincipletotheeffectthat”Legalpersonsaredistinctfromtheir
members[andthat].[T]heiractsbindnonebutthemselves,exceptas
providedbylaw.”Article317CCQspecificallyprovidesfortheliftingofthe
corporateveilinthefollowingterms:”Innocasemayalegalpersonsetup
juridicalpersonalityagainstaperson
ingoodfaithifitissetuptodissemble
fraud,abuseofrightorcontraventionofaruleofpublicorder”.Evenifthe
circumstancesenumeratedinarticle317CCQappeartobeconstruedas
exhaustive[i.e.thewords”entreautres”weredeletedfromtheAvant-projet],
itfollowsthattheliftingofthecorporateveilbytheCourtsshouldnolonger
beheldasexceptional.Interestingtool/leverforaplaintiff!
ThisshouldendmyremarksonthefirstBook.
BookTwo:TheFamily
TheinterestofthisBookinregardof”I.P.”residesmainlyintheincidenceof
matrimonialregimesontheownershipandexploitationofthoseintellectual
propertyrights.
InQuébec,theprincipalmatrimonialregimesarethepartnershipofacquests
[or”property”](art.448CCQ)andtheconventionalseparationofproperty
(art.485CCQ).Antenuptialcontractsarepermissibleandmaymodifythe
legalregime.


Consortsmariedonorafter1970.07.01whohavenotenteredintospecial
agreementbymarriagecontractaresubjecttoaregimeofpartnershipof
acquests[art.432CCQ].Acquestsfallingintopartnershipconsistof
i)allpropertiesnotdeclaredbylawtobeprivatepropertyandin
particular
ii)proceedsofconsort’sworkduringtheregimeand
iii)thefruitsandincomewhichfalldueorarereceivedduring
theregime,whetheroriginatingfromspouse’sprivatepropertyor
acquests.
Theprivatepropertyofeachspouseconsists,interalia,of
i)propertyownedbeforethemarriage,
ii)propertywhichdevolvestothatspousebysuccessionorgift
(includingrevenuesifsostipulated)
Article458CCQprovidesthat”Intellectualandindustrialpropertyrightsare
privateproperty,butallthefruitsandincomearisingfromthemandcollected
orfallendueduringtheregimeareacquests”Indeed,thisarticleissimilarto
itspredecessor,article490oftheCCQ(1980),whichitselfisaduplicationof
article1266(L)CCLC(1970).
“Intellectualproperty”isgenerallyconstruedasreferringtoliteraryandartistic
propertyor”copyright”while”industrialproperty”referstopatents,designs,
trademarksandthelike.
Therulelaiddownbynewarticle458CCQisunderstandableifoneconsider
“intellectualproperty”(suchascopyright”),asacontinuation/extensionofthe
personalityoftheauthor.Howeveritsjustificationismuchmoreremotein
respectofapatent,atradesecretoranintegratedcircuittopography!
Atfirstglance,therulelaiddownbyarticle458CCQappearseasily
applicable.However,thisisnotalwaysthecase!Indeed,inorderto
ascertainwhetherrevenuesrelatedto”intellectualproperty”areacquestor
privateproperty,referenceshouldbemadefirsttothenatureofthepayment
itself,whethertheseso-calledfruitsarereallyrevenues[derivingfromthe
exploitationoftheI.P.]orpaymentforthedispositionofanasset[beingsaid
I.P.].
In”I.P.”matters,paymentsareoftenspreadoveraperiodoftimeandonthe
basisofapercentageoftheexploitationofthe”I.P.”rightsbeitapatent,a
copyrightorotherwise.
Iftheauthorhasassignedhiscopyrightinabooktoapublishersothatthe
publisherisnowthecopyrightowner,theroyaltiesorothermoneyspaidby


thepublishertotheauthorshouldbeconsideredaspaymentofthepriceof
saleofthecopyrightandthereforebeconsideredasprivateproperty.
If,ontheotherhand,theauthoronlygrantstothepublisherarighttopublish
thework,thentheauthorretainsownershipandthepaymentsmadebythe
publishershouldbeconstruedasfallinginthepartnershipofacquests.
Again,article458CCQdoesnotgiveaspousearighttoforcetheotherto
exploithis/her”I.P.”rightsnortodictatethetermsandconditionsofsuch
exploitation:article458CCQonlyprovidesfortheownershipofthe”I.P.”as
privatepropertyandoftherevenuesderivingtherefrom,asacquests.
BookThree:Successions
Whenthereisnowill,thesuccessionpassestothelawfulheirsintheorder
establishedbytheCodeandtheybecomelegallyseizedwiththepossesion
andownershipofalltheassetscomposingtheestate.Intheabsenceofsuch
heirsitdevolvestotheState
Exceptmaybeforsubsection14.2(2)oftheCopyrightActandmaybe
subsection49(1)ofthePatentAct,federal”I.P.”statutesdonotdealatlength
withdescendibilityoftheserights.However,”I.P.”rights,evenifincorporeal,
aremoveablepropertywhichformspartoftheestateofadecujusasother
properties.
Subsection49(1)ofthePatentActreads:


ASSIGNEEORPERSONAL
REPRESENTATIVES
49.(1)Apatentmaybegranted
toanypersontowhoman
inventor,entitledunderthisAct
toobtainapatent,hasassigned
inwritingorbequeathedbyhis
lastwillhisrighttoobtainit,and,
intheabsenceofanassignment
orbequest,thepatentmaybe
grantedtothepersonal
representativesoftheestateof
thedeceasedinventor.
C
ESSIONNAIREOU
REPRÉSENTANTS
PERSONNELS
49.(1)Unbrevetpeutêtre
concédéàtoute
personneàquiun
inventeur,ayantaux
termesdelaprésenteloi
droitd’obtenirunbrevet,
acédéouléguéparson
derniertestamentson
droitdel’obtenir.En
l’absenced’unetelle
cessionoud’untellegs,le
brevetpeutêtreconcédé
auxreprésentants
personnelsdela
successiond’uninventeur
décédé.

andsection14.2oftheCopyrightActreadsasfollows:
TERM
14.2(1)Moralrightsinrespectof
aworksubsistforthesameterm
asthecopyrightinthework.
D
URÉE
14.2(1)Lesdroitsmoraux
suruneœuvreontla
mêmeduréequeledroit
d’auteursurcelle-ci.


SUCCESSION
(2)Themoralrightsinrespectof
aworkpass,onthedeathofits
author,to
D
ÉCÈS
(2)Audécèsdel’auteur,
lesdroitsmorauxsont
dévolusàsonlégataire
ou,àdéfautde
dispositiontestamentaire
expres-se,soitaulégataire
dudroitd’auteur,soit,en
l’absenced’untel
légataire,auxhéritiersde
l’auteur.

(a)thepersontowhomthose
rightsarespecifically
bequeathed;

(b)wherethereisnospecific
bequestofthosemoralrights
andtheauthordiestestatein
respectofthecopyrightinthe
work,thepersontowhomthat
copyrightisbequeathed;or

(c)wherethereisnoperson
describedinparagraph(a)or
(b),thepersonentitledtoany
otherpropertyinrespectof
whichtheauthordiesinstate.

Let’sdiscuss,forinstance,devolutionofmoralrights.
Devolution-General.Moralrightsarepersonal,notproprietaryrights;they
cannotbeassignedbutmaytransferredatdeathaccordingtotheprovisions
setforthinsubsection14.2(2)oftheCopyrightAct.
Onthedeathoftheauthormoralrightsinrespectofaworkwillbe
transmittedaccordingtothefollowinghierachy:
i)ifthereisawill,

¬tosuchpersonsasthetestamentaryprovisionsmay
specifically
director,intheabsenceofsuchprovisions


¬tosuchpersonsastowhomthecopyrightpasses;
ii)ifthereisnowill,
¬tosuchpersonsentitledtoanyotherproperty.
Itshouldberemembered,however,thatsection14.2oftheCopyrightAct
doesnotprovideforacomprehensivetreatiseonwillsandsuccessions.The
devolutionofrightsatdeatharegovernedbytheapplicableprovinciallaws:
seediscussioninBRISSON(Jean-Maurice),L’impactduCodecivilduQuébec
surledroitfédéral:uneproblématique(1992),52RevueduBarreau345,at
pp.348-349.Notwithstandingthethreesituationsdescribedinsubsection
14.2(2)oftheCopyrightAct.andirrespectiveofthetermsofthewillorofthe
intestateprovisionsofthelaw,nooneisboundtoacceptasuccessionwhich
hasdevolvedtohim.
SpecificBequeath.Paragraph14.2(2)(a)oftheCopyrightActprovidesfirst
that”thesepassonthedeathoftheowneroftherighttosuchpersonsashe
maybytestamentarydispositionsspecificallydirect.Theuseofthewords
“specifically”meansthattherightwillbehavetobeidentifiedbyasufficient
descriptioninthewillifthedirectioninthewillistobeeffective.Itwill
probablybenecessarytorefertotherightexpressly”:LESTER(David)etal.,
Joynson-HicksonUKCopyrightLaw(London,Sweet&Maxwell,1990),atno.
11.38.
Nothingwouldapparentlypreventanauthorfromsubdividingthemoral
rightsbetweenhisheirs,asonemaybevestedwiththepaternityrightand
anotherwiththerightofintegrity;furtherdivisioncouldalsobecontemplated,
forinstance,accordingtothemedia,ortheterritory:seeparagraphs
28.2(1)(a)and(b)oftheCopyrightAct.
“tofollowcopyright”.Absentaspecificbequest,themoralrightswillfollow
thebequeathofthecopyrightinthework:seeparagraph14.2(2)(b)ofthe
CopyrightAct.Shouldthecopyrightbesubdividedamongsttheheirs[as
translationrights,adaptationrights,performingrightsorreproductionrights],it
wouldappearthatthemoralrightssobequeathedwillfollow,forthesame
part,thespecificcopyright.
“tofollowotherproperty”.Ifthereisnospecificbequestofthemoralrightsnor
ofthecopyrights,thenthemoralrightswillpasstothelegalrepresentativesof
theauthor:seeparagraph14.2(2)(c).oftheCopyrightAct.
BodyCorporate-CorporationsasSuccessors.Anauthorcanbequeathhis
moralrightstoacorporationoranassociation,whichwillthenbeinvested


withthemissiontomaintainthenameofthedeceasedauthorandthe
integrityofhiswork:seeFondationLeCorbusierv.Sociétéencommandite
ManoirleCorbusier*(1991),[1991]R.J.Q.2863(Que.Sup.Ct.).Wherethereis
noheir,seisinofasuccessionfallstotheState,withtheresultthattheState
mightbecomethedefensor(andalsothebeneficiary:seeparagraph
28.2(1)(b)oftheCopyrightAct!)ofthemoralrightsofanauthor.
SuccessionofCorporation.Asthenotionofdeathandbequeatharenot
compatiblewiththeverynatureofacorporation,theprovisionofsubsection
14.2(2)oftheCopyrightActwillnotapplytoabodycorporate,asa”deemed
author”ofphotographs[seesection10oftheCopyrightAct]orrecords,
perforatedrollsandothermechanicalcontrivancesbymeansofwhich
soundscanbemechanicallyreproduced[seesection11oftheCopyright
Act].
SuccessorsofSuccessors.Solongasthemoralrightssubsist,subsection
14.2(2)oftheCopyrightActwillapplyandnothingwillpreventhewhohas
inheritedthemoralrights(orpartthereof),frombequeathingthoserights(or
partthereof)bywillorotherwisetohisheirs.
PastInfringements.Infringementsoccuringbeforethedeathoftheauthorwill
formpartofhisestateand,subjecttothethreeyearlimitationperiodof
section41oftheCopyrightAct,areactionablebythesuccessor;seealsoart.
625(3)and1610(2)CCQ
UnansweredQuestions.Doesawaiverofmoralrightsinfavorofathirdparty,
givetothatthirdpartytherighttobequeathorpassontohisheirswhatever
benefitthatwaivermayhaveprovidedhim?
Doesthereversionclauseofsection14oftheCopyrightActaffectthe
devolutionofparagraph14.2(2)(c)oftheCopyrightAct?
Whathappenswhenjointheirscannotagreeontheexploitationofthemoral
rightstheyinherited?
Howcouldjointheirsassertthepaternityrightortherighttoanonymity?
Doesthelegacyofthemoralrightinaworkconstitutea”grant”,forthe
purposeofthelocusstandiofsection36oftheCopyrightActorfor
registrationundersubsection57(1)oftheCopyrightAct?
BookFourProperty


°Kindsofpropertyandownership
°Undividedco-ownership
°Administrationofthepropertyofothers
Kindsofpropertyandownership

Incorporealproperty(i.e.patent,copyrightandthelike),fallsinthegeneral
categoryofmoveableproperty.
RecentlyinPoolmanv.EiffelProductionsS.A.(1991),35C.P.R.(3d)384,42
F.T.R.201(F.C.T.D.),PinardJ.concludedthatcopyrightswereincorporeal
moveablepropertyand,asa”thing”weresubjecttotheprovisionsoftheCivil
Code[thenart.1487CCLC,nowart.1713CCQ]dealingwiththesaleof
[thing/]propertybyapersonotherthantheownerthereof.However,except
forthiscase,thenatureof”I.P.”rightshavenotoftenbeendirectlydiscussed
byQuébeccourtsAuthorsgenerallyconsiderthesetypesofrightsas
incorporealpropertyandforourpurpose,sufficeittosaythateachofthem
shouldbeconsideredasaformofincorporealmoveableproperty.
TheacquisitionofI.P.rightsisdealtwithinthefederal”I.P.”statutes,suchas
thePatentAct,theIndustrialDesignAct,theTrade-MarksAct,theCopyright
Act,thePlantBreeders’ActortheIntegratedCircuitTopographyAct.Whatis
lessclear,however,ishowrelatedrights,suchastradesecrets,tradenames,
goodwillorperformersrightsarecreated(andprotected):possesionunder
art.914CCQ,accessionunderart.916CCQorevenasanemanationof
privacyrightsunderart.3and35CCQ?
Theinteractionofthosefederal”I.P.”statutesandtheCCQmightalsofuel
interesting-evensometimefarefetched-discussionsastotheapplicationof
theso-calledexhaustiondoctrine(«épuisementdudroit»),especiallywhen
theobjectofthe”I.P.”rightsislivingmaterialthatcouldreproduceitself.
Revertingnowtomorepracticalmatters,article909CCQ(whichhasno
counterpartintheCCLC)defineswhatconstitutescapitalandrevenues.
Moreparticularly,”capitalalsoincludesrightsofintellectualorindustrial
propertyexceptsumsderivedtherefromwithoutalienationoftherights(…)”.
Let’sillustratewith”topographies”,asdefinedintheIntegratedCircuit
TopographyAct(S.C.1990,c.37,s.2).AspropertyundertheCCQ,a
registredtopographywouldbeconsideredascapitalaswouldbethe
productofitsalienation:article909(2)CCQ;however,licensingfeesrelating
totheexploitationofthistopographywillbeconsideredas”fruitsand
revenuesproducedbythatproperty”:art.910(1)CCQ.Thislast
qualificaationas”revenues”founditsjustificationinart910(3)CCQwhich


providesthatrevenuescomprisealsosumsofmoneyyieldedbyproperty
suchasrents,interestsanddividends.
Undividedco-ownership

Asithappens,in”I.P.”matters,oneofthemorefrequentmodesofownership
encounteredistheundividedco-ownership.
Typicalofsuchownershipisthesituationwheretwoinventorsworking
together-andobviouslynothavingbotheredtodraftacontract-obtainthe
grantofapatent.
TypicalalsoofthissituationundertheCopyrightAct,isthe”workofjoint
authorship”meaningaworkproducedbythecollaborationoftwoormore
authorsinwhichthecontributionofoneauthorisnotdistinctfromthe
contributionoftheotherauthororauthors.Inthislastsituation,inviewofthe
generalrulelaiddownbysubsection13(1)oftheCopyrightAct,theco-
authorsarealsotheco-ownersofthework;furthermoreneitherofthemcould
claimanyexclusiverightsortitleinthisparticularwork.Thesamesituation
mayalsoarisewhenmanuscriptsandrelatedcopyrightsarepartofan
intestateestate.
TheCCQsetsacomprehensivebodyofrulesgoverningtheundividedco-
ownership,amongstwhich:
1)theshares
oftheundividedco-ownersarepresumed
equal:art.1015(1)CCQ;
2)eachundividedco-ownerhastherights
andobligations
ofanexclusiveownerasregardstohisshare
andmaythus
alienatateorhypothecatehisshare,whichmayalsobeseized
byhiscreditor:art.1015(2)CCQ;
3)eachundividedco-ownermaymakeuseofthe
undividedpropertyprovideditdoesnotaffecti)itsdestination
orii)therightsoftheotherco-owners:art.1016(1)CCQ;
4)Therightofaccession
operatestothebenefitofallthe
undividedco-ownersproportionately
totheirsharesinthe
indivision:art.1017CCQ;
5)therevenues
oftheundividedpropertyaccruetothe
indivision:art.1018CCQ;


6)anyundividedco-ownermayexercisearightof
redemptionagainstathirdpartywhohasacquired,byonerous
title,theshareofanundividedco-owner:art1022(1)CCQ;
7)undividedco-ownersmayagree
inwritingtopostpone
partitionofapropertyforatermnotexceedingthirtyyears
(whichisrenewable):art1013CCQ.
CompareForgetv.SpecialityToolsofCanadaInc.(1993),48C.P.R.(3d)323
(B.C.S.C.)RowanJ.withMarchandv.Péloquin(1978),[1978]C.A.267
(Qué.C.A.)MayrandJ.,evenifdecidedundertheCCLC!
Administrationofthepropertyofothers

Underthistopic,IintendtoregrouptheprincipalprovisionsoftheCCQ
dealingwiththedutytoactfaithfully.Thisisofspecialinterestinthe
employee/employer,agent/principal,mandatary/mandatorordirector
/legalpersonrelationshipandinthecontext,forinstanceofbusiness
opportunitiesortradesecrets.
Inliminelitislet’srememberthegeneralpropositionofarticle6CCQ:”Every
personisboundtoexercisehiscivilrightsingoodfaith”.Indeedthereare73
referencesto”goodfaith”intheCCQ!
Legalpersons:articles321,322,323and324CCQ
321.Adirectorisconsideredtobethemandatary
ofthelegal
person.(…)
322.Adirectorshallactwithprudenceanddiligence.
Heshallalsoactwithhonestyandloyalty
inthebestinterest
ofthelegalperson.
323.Nodirectormaymingle
thepropertyofthelegalpersonwith
hisownpropertynor
mayheuseforhisownprofitorthatofa
thirdpersonanyproperty
ofthelegalpersonoranyinformation
heobtainsbyreasonofhisduties,unlessheisauthorizedtodoso
bythemembersofthelegalperson.
324.Adirectorshallavoidplacinghimselfinanysituationwhere
hispersonalinterest
wouldbeinconflictwithhisobligationasa
director.(…)



Administratorforothers:articles1309,1310,1313and1314CCQ
1309.Anadministratorshallactwithprudenceanddiligence.
Heshallacthonestlyandfaithfully
inthebestinterestofthe
beneficiaryoroftheobjectpursued.
1310.Nodirectormayexercisehispowersinhisowninterestor
thatofathirdpersonorplacehimselfinapositionwherehis
personalinterestisinconflict
withhisobligationsasadministrator.
(…)
1313Noadministratormaymingle
theadministredpropertywith
hisownproperty.
1314.Noadministratormayuseforhisbenefit
thepropertyhe
administersorinformationheobtainsbyreasonofhis
administrationexceptwiththeconsentofthebeneficiaryor
unlessitresultsfromthelawortheactconstitutingthe
administration.
Employee:article2088CCQ
2088.Theemployeeisboundnotonlytocarryonhisworkwith
prudenceanddiligence,butalsotoactfaithfullyandhonestly

andnottouse
anyconfidentialinformationhemayobtainin
carryingonorinthecourseofhiswork.
Theseobligationscontinueforareasonabletimeafterthe
cessationofthecontract,andpermanentlywherethe
informationconcernsthereputationandprivatelifeofanother
person.
Mandate:articles2138and2146CCQ
2138.Amandataryisboundtofulfillthemandatehehas
accepted,andheshallactwithprudenceanddiligencein
performingit.
Heshallalsoacthonestlyandfaithfully
inthebestinterest
ofthemandator,andavoidplacinghimselfinapositionthat
putshisowninterestinconflict
withthatofhismandator.


2146.Themandatarymaynotuseforhisbenefitanyinformation
heobtainsoranyproperty
heischargedwithreceivingor
administeringincarryingouthismandate,unlessthemandator
consentstosuchuseorsuchusearisesfromthelaworthe
mandate.
Ifthemandataryusesthepropertyorinformationwithout
authorization,heshall,inadditiontothecompensation
forwich
hemaybeliableforinjurysuffered,compensatethemandator
bypaying,inthecaseofinformation,anamountequaltothe
enrichmentheobtains,or,inthecaseofproperty,an
appropriaterentortheinterestonthesumsused.
ThisendsmypreliminaryremarksonBookFouroftheCivilCodeofQuébec.
BookFive:Obligations
°contractofadhesion
°civilliability
°solidarity
°damages
°sale
°lease
°contractofemployement
°contractforservices
contractofadhesion

Definition.Acontractofadhesionisacontractinwhichtheessential
stipulationswereimposedordrawnupbyoneofthepartiesandwerenot
negotiable(«nepouvaientêtrelibrementdiscutées»):art.1379CCQ.
Application.Asatypeofcontract,LicenceAgreementsandFranchise
Agreementsfallsquarelywithinsuchdefinition.Indeed,bytheverynatureof
thesetypesofcontracts(i.e.thepreservationoftheconceptofthe
licensor/franchisor)theessentialstipulationsarenotdiscussed(e.g.quality
controlsandstandards,imageandpresentation,ownershipoftheindicia,
territory,natureoftheservicesrenderedortobeoffered,feesandsupply,
defaults)eventhoughsomeoftheprovisionsare.


Essentialstipulations.However,article1379CCQisconcernedonlywiththe
essentialstipulationsofthecontract,notthewholecontract.Againarticle
1379CCQmakesreferencetothepossiblityofnegotiatingthoseessential
clauses,notnecessarilytohavethemmodified.
Consent.Apartfromthegeneralobligationsofgoodfaithandfreeconsent,
whicharecommontoallcontracts,theCCQreinforcesthequalityofthe
consentgivenbythefranchisee/licensee.
Externalclause.Inacontractofadhesion,anexternalclauseisnullif,atthe
timeoftheformationofthecontract,itwasnotexpresslybroughttothe
attentionoftheadheringparty.Thismay,forinstance,comprisetherules
relatingtopromotionalandadvertizingprograms,operationalguidesandthe
like.Theonusisonthefranchisortoprovetheknowledgeoftheseexternal
clausesbythefranchisee.
Andwhatwouldbethestatusofasubsequentexternalclause,likeatimely
modificationtotheoperationalguide?
Illegibleclause.Article1436CCQstatesthatinacontractofadhesiona
clausewhichisillegibleorincomprehensibletoareasonableperson(andnot
onlytothefranchisee)isnulliftheadheringpartysuffersinjury.
QuitefranklyalotofprovisionsinFranchiseAgreements,especiallywhenthey
resultfrompatchwork/mergingofvariousformsarenoteasytocatch,even
forthetrainedeye.Lookforinstanceatthelastownershipanduseofthe
improvementsclausesyoumighthavedraftedrecentlyorthosedealingwith
theexceptionstotheexclusiveterritory!
Charter.Bythewaysection55oftheCharteroftheFrenchLanguageisstill
operationalandcontractsofadhesion(aswellasrelateddocuments)shall
bedraftedinFrenchunlessthereisanexpressagreementofthepartiestothe
contrary.
Implied.Athirdpointtoconsiderisarticle1434CCQ:acontractbindsthe
partiesnotonlyastowhattheyhaveexpressedinitbutalsoastowhatis
incidenttoitaccordingtoitsnatureandinconformitywithusage,equityand
law.
Interpreation.Asalastandfourthpoint,notethatinthecaseofacontractof
adhesion,thecontractisinterpretedinfavouroftheadheringparty:art.1432
CCQ.
Reductibility.Finally,overandabovethesepoints,article1437CCQ
stipulatesthatanabusiveclause(i.e.,excessiveorabusive,disproportionate)


inacontratofadhesionisnullortheobligationarisingfromitmaybe
reducedbythecourt.
Summary.AssummarizedbyProfessorPopovici:
(1379+1399)x1379=1435+1436
where1379isgoodfaith
where1399isfreeandenlightenedconsent
where1379isacontractofadhesion
where1435standsforexternalcauses
where1436standsforincomprehensibleclauses.
Transitional.Sections81and82oftheTransitionalProvisionsstatethat
contractsofadhesionenteredintobeforethecomingintoforceoftheCCQ
aretobeinterpretedaccordingtotheprovisionsoftheCCQ.
Civilliability

Thegeneralprincipleofcivilliabiltyissetdownatarticle1457CCQ(formerly
art.1053CCLC):
Everypersonhasadutytoabidebytherulesofconduct
whichlieuponhim,accordingtothecircumstances,usageor
law,soasnottocauseinjurytoanother.
Whereheisendowedwithreasonandfailsinhisduty,heis
responsibleforanyinjuryhecausestoanotherpersonandheis
liabletoreparationfortheinjury,whetheritbebodily,moralor
materialinnature.
Heisalsoliable,incertaincases,toreparationforinjury
causedtoanotherbytheactorfaultofanotherpersonorbythe
actofthingsinhiscustody.

Whenappliedto”I.P.”,let’ssaythatarticle1457providesforthebasisof
actionforunfaircompetition,ofwhichsection7oftheTrade-marksAct
appearsasapartialcodification.
Thisarticlealsoprovidesthefoundationforanactionforwrongful
appropriationoftradesecrets,commercialparasitism,trademarkdilution,
passingoff,andthelike.


Quaereoftheliabiltyofaninventorforadefectiveproductmadeunderhis
licensedtechnology:seearticles1468and1469CCqastotheliabilityofa
manufactureordistribytorforsafetydefect.
Sections85and86oftheTransitionalProvisionsstatethattheconditionsof
civilliabilityaregovernedbythelegislationinforceatthetimeofthefault.
Solidarity

1523.Anobligationissolidarybetweenthedebtorswherethey
areobligatedtothecreditorforthesamethinginsuchaway
thateachofthemmaybecompelledseparatelytoperformthe
wholeobligation(…)
1526.Theobligationtomakereparationforinjurycausedto
anotherthroughthefaultoftwoormorepersonsissolidarywhere
theobligationsareextra-contractual[whichisthecaseforcivil
liability]
Finally,solidaritybetweendebtorsisnotpresumed,exceptwherean
obligationiscontractedfortheserviceofanenterprise,whichisthecarrying
onofanorganizedeconomicactivity,whetherornotcommercialinnature:
art.1525.
Damages

Thedamagesduetothecreditorobeythegeneralruleofrestitutioin
integrum,namelycompensationfortheamountofthelosshehassustained
andtheprofitofwhichhehasbeendeprived.
Legalinterestandspecialindemnity(i.e.rateofinterestfixedfortheclaimsof
theState,lesslegalinterest)maybeawarded:art.1619CCQ.Theinterest
accruedonprincipalmayalsoitselfbearinterest,ifsorequired:anatocismof
article1620CCQ.
Exceptasprovidedspecificallybylaw,punitiveandexemplarydamagesare
nottobeawardedinthecivilcourtsofQuébec:art.1621CCQ.Theonly
notableexceptionstothisprinciplearefoundintheCharterofHumanRights
andFreedoms,theConsumerProtectionAct,theActrespectingAccessto
documentsheldbypublicbodiesandtheProtectionofpersonalinformation,
andtheActfortheProtectionofTrees!


Inregardoftradesecrets,twonewprovisionsoftheCivilCodeofQuebec
areofgreatinterest:
1612.Thelosssustainedbytheholderofatradesecretincludes
theinvestmentexpensesincurredforitsacquisition,perfection
anduse;theprofitofwhichheisdeprivedmaybecompensated
throughpaymentofroyalties.
but
1472.Apersonmayfreehimselffromhisliabilityforinjurycaused
toanotherasaresultofthedisclosureofatradesecretby
provingthatconsiderationsofgeneralinterestprevailedover
keepingthesecretand,particularly,thatitsdisclosurewas
justifiedforreasonsofpublichealthorsafety.
Inthislastcase,however,oneshouldalsobearinmindarticle2088CCQ:
2088.Theemployeeisboundnotonlytocarryonhisworkwith
prudenceanddiligence,butalsotoactfaithfullyandhonestly

andnottouse
anyconfidentialinformationhemayobtainin
carryingonorinthecourseofhiswork.
Theseobligationscontinueforareasonabletimeafterthe
cessationofthecontract,andpermanentlywherethe
informationconcernsthereputationandprivatelifeofanother
person.
Hencethequestion:wouldarticle1472CCQapplytoconfidential
informationthatdoesnotfallsquarelywithinthedefinitionusuallygivento
tradesecret?Itwouldseemsso;futhermore,article2088CCQappearsto
prohibittheusebytheemployeeforhisownbenefitofconfidential
informationwhilearticle1472CCQdealswiththedivulgationofatrade
secretandnottheuseofsamefortheemployee’sownbenefit.
Sale

“I.P.”rightsareassignable:see,forinstance,section48oftheTrade-Marks
Act,sections13and57oftheCopyrightAct,section13oftheIndustrial
DesignsAct,sections49-51ofthePatentAct,section7oftheIntegrated
TopographyActorsection31ofthePlantBreeders’RightsAct.


Apartfromtheformalconditionofawritinginthecaseofacopyrightora
patentortheeffectofregistrationoftheassignment(see31(3)ofthePlant
Breeders’RightsAct,57(3)oftheCopyrightActor51ofthePatentAct),the
assignmentorsaleofthoserightsaregovernedbythegeneralrulesrelating
toPropertyandCivilRightsintheProvince,amongstwhichthosesetunder
BookFiveoftheCCQ,eitherunderitsTitleOne”Obligationsingeneral”or
ChapterI”Sale”ofitsTitleTwo”Nominatecontracts”.
Hence,thesellerisboundtoprovidethebuyerwith
¬awarrantyastotheownershipofthepropertysold:art.1723CCQ;
¬awarrantyofqualityastothepropertysold,i.e.thatthe
propertyisfreeforlatentdefectsorunfitfortheuseforwhichitwas
intended:art.1726CCQ.
Furthermore,theActrespectingtheprofessionalstatusofartistsinthevisual
arts,artsandcraftsandliterature,andtheircontractswithpromoters(S.Q.
1988,c.69;R.S.Q.,c.32.01),coversthefollowingfields:
(a)visualarts(painting,sculpture,engraving,drawing,illustration,
photography,textilearts,installationwork,performance,art
videoandthelike);
(b)artsandcrafts(whichareconveyedbythepracticeofa
craftrelatedtotheworkingofwood,leather,textiles,metals,
silicatesoranymaterial);
(c)literature(i.e.,awrittenwork,beitacreationoratranslation).
ThisActdealswiththeobligatorycontentofcontractsinthesefields:sections
20to42thereof(exceptsections35:surety;37arbitration),areprovisionsof
publicorder.
Lease

Forsomealicence(here,abarelicence)isarightofuse(orapersonal
servitude!)governedbyarticles1172-1176;forothersitisanusufruct(here,an
exclusivelicence)whichisgovernedbyarticles1120-1171CCQ.
Licencesaregenerallyconstruedasleases:seeI.G.U.(Ingraph)Inc.v.
L.B.G.P.ConsultantsInc.(1990),J.E.-90-1224(Que.Sup.Ct.)Trudel,J.
Generally,theprinciplesgoverningsaleapplytoassignmentswhilethose
governingleaseapplytolicence.

 
Ofcourse,thoseprovisionsareofaparticularinterestto”supplement”a
LicenceAgreementwhichisotherwisesilentonaspecificpoint.Aswewill
see,theapplicationofsomeoftheprovisionsoftheCCQrespectinglease
mayleadtounexpectedtwistsinalicensor/licenseerelationshipandindeed,
mightbequitedetrimentalovertheoperationsofafranchisesystem.
.
Let’sexaminesomeoftheprovisionsoftheChapterdealingwiththelease,
keepinginmindourusualtrademarklicenceprovisions.
1851.Lease[Licence]isacontractbywhichaperson[licensor],
thelessor,undertakestoprovideanotherperson[licensee],the
lessee,inreturnforarent[royalties],withtheenjoyment[use]ofa
movable[trademark]orimmovablepropertyforacertaintime
[duration].
Thetermoftheleaseisfixedorindeterminate.
1853.Theleaseofmovablepropertyisnotpresumed;aperson
usingthepropertybysufferanceoftheownerispresumedto
haveborroweditbyvirtueofaloanforuse.(…)
°comment
:seealsoart.2313CCQwhichreads:”Loanfor
useisagratuitouscontractbywhichaperson,thelender,
handsoverpropertytoanotherperson,theborrower,for
hisuse,underthebligationtoreturnittohimafteracertain
time”.
1854.Thelessorisboundtodelivertheleasedpropertytothe
lesseeinagoodstateofrepairinallrespectsandprovidehim
withpeaceableenjoymentofthepropertythroughouttheterm
ofthelease.
Heisalsoboundtowarrantthelesseethatthe
propertymaybeusedforthepurposeforwhichitwasleased
andtomaintainthepropertyforthatpurposethroughoutthe
termofthelease.
°comment
:alsorefferedtoas”garantiedejouissance
paisibleetdenonéviction”;
°comment:
e.g.,¬renewtheregistration,¬maintainthe
exclusivityoftheLicensedGoodsorLicensedTerritory,
¬takeactionifthereisinfringementbyathirdparty.
1855.Thelesseeisboundtopaytheagreedrentandtousethe
propertywithprudenceanddiligenceduringthetermofofthe
lease.



°comment:couldalsobereadas
¬”theuserundertakestousethetrademarkin
conformitywiththequalitystandardsandcontrol
establishedfromtimetotimebytheowner”;or
¬”theuserundertakestoconformwithby-laws,rules
andlawsenactedfromtimetotimebypublicauthorities
forsecurity,sanitary,standardization,publicity,importation
andthelikemeasuresrelatingthepurchase,the
manufacturing,thesaleandthedistributionofwaresor
servicesinassociationwithwhichthetrademarkisused”
°forinstance,
¬variationinuse/deviationfromproperuse(asper
guideofgraphicnorms),
¬dilutionofthetrademarkbygeneric/
descriptive/improperuseormarking

1856.Neitherthelessornorthelesseemaychangetheformor
destinationoftheleasedpropertyduringthetermofthelease.
°comment
:seetheconsequencesofthemodification/
variation/modernizationofthetrademark;
°comment
:seetheimpactofanamendmenttothe
statementofwaresorservices
1858.Thelessorisboundtowarrantthelesseeagainstlegal
disturbanceofenjoymentoftheleasedproperty.
Beforepursuingitsremedies,thelesseeshallnotify
thelessorofthedisturbance.
°comment:
comparewith50(3)oftheTrade-MarksAct:
“Subjecttoanyagreementsubsistingbetweentheowner
ofthetrade-markandalicenseeofthetrade-mark,the
licenseemaycallontheownertotakeproceedingsforthe
infringementthereofand,iftheownerrefusesorneglects
todosowithintwomonthsafterhavingbeensocalledon,
thelicenseemayinstituteproceedingsforinfringementin
thelicensee’sownnameasifthelicenseeweretheowner,
makingtheowneradefendant.”
°comment
:seealsoart1859CCQ.”Thelessorisnotliable
fordamageresultingfromthedisturbanceofenjoymentof
thepropertybytheactofathirdperson;hemaybeso
liablewhenthethirdpersonisalsoalesseeofthatproperty
orispersonwhomthelesseeallowstouseortohave
accessstotheproperty.


Iftheenjoymentofthepropertyisdiminished
bythedisturbance,however,thelesseeretainshisother
remediesagainstthelessor.”
1870.Alesseemaysubleaseallorpartoftheleasedpropertyor
assignhislease.Ineithercase,heisboundtogivenoticeofhis
intentionandthenameandaddressoftheintendedsublesseeor
assignetothelessorandtoobtainhisconsent
°comment
:tobereadalsowithart.1871CCQ:”Thelessor
maynotrefusetoconsenttothesubleaseoftheproperty
ortheassignmentoftheleasewithoutaseriousreason.
(…)”
°comment:
tobearinmindart.1873CCQ.Theassignment
ofaleaseacquitstheformerlesseeofhisobligations,
unless(…)thepartiesagreeotherwise.
1877.Aleasewithafixedtermterminatesofrightupontheexpiry
oftheterm.Aleasewithanindeterminatetermterminatesupon
resiliationbyoneoftheparties.
1880.Thetermofaleasemaynotexceedonehundredyears.If
itexceedsonehundredyear,itisreducedtothatterm.
°comment
:thisendsthecontroversyastothevalidityofa
perpetuallease,whichisnowprohibited;theperiodof100
yearsisfoundelsewhere:usufruct(1123),emphyteusis
(1197)andannuity(2376).
1882.Apartywhointendstoresiliatealeasewithan
indeterminatetermshallgivetheotherpartynoticetothat
effect.
Thetermofthenoticeisofthesamedurationasthe
termfixedforpaymentoftherent,butmaynotbeofmorethan
threemonths.Wheretheleasepropertyisamovable,however,
thenoticeisoftendays,whatevertheperiodfixedforpayment
oftherentmaybe.
°comment
:seealsoart.1878.CCQ”Aleasewithafixed
termmayberenewed.Itmayonlyberenewedexpressly
(…)”
°comment
:seealsoart.1881CCQ”Securitygivenbyathird
person[e.g.suretyshipunder2333]tosecurethe



obligationsofthelesseedoesnotextendtoarenewed
leased.”
°comment
:seealsoart.6CCQ”Everypersonisboundto
exercisehiscivilrightsingoodfaith.”
°comment
:seealsoart.7″Norightmaybeexercisedwith
theintentofinjuringanotherorinanexcessiveand
unreasonablemanerwhichiscontrarytotherequirements
ofgoodfaith.”
°comment
:seealso[1991]3ContratsConcurrence
Consommation50,fasc.5551-MercedesBenzFrancev.
AutoLux(C.A.Paris,5echambre;1990.12.20)
1886.Voluntaryorforcedalienationofleasedpropertyor
extinctionofthelessor’stitleforanyotherreasondoesnot
terminatetheleaseofright.

Bytheway,section4oftheTransitionalProvisionsprovidesthat”In
contractualsituationswhichexistwhenthenewlegislationcomesintoforce,
theformerlegislationsubsistswheresupplementaryrulesareusedto
determinetheextentandscopeoftherightsandobligationsoftheparties
andtheeffectsofthecontracts.However,theprovisionsofthenew
legislationapplytotheexerciseoftherightsandtheperformanceofthe
obligations,andtotheirproof,transfer,alterationorextinction.”
contractofemployment

Aswehavealreadycoveredtheobligationofloyalty,let’ssayawordonthe
non-competitionclausedealtwithbyarticles2089and2095CCQ.
¬Thepartiesmaystipulate
°inwritingand
°inexpresstermsthat
¬evenaftertheterminationofthecontract,
¬theemployeemay
°neithercompetewithhisemployernor
°participateinanycapacitywhatsoeverinacompetingenterprise
¬Suchalimitationshallbelimitedasto
°time
°placeand


°typeofemployement
¬towhateverisnecessaryfortheprotectionofthelegitimateinterestsofthe
employer.
¬Theburdenofproofthatthestipulationisvalidisontheemployer
¬Anemployermaynotavailhimselfofastipulationofnon-competitionif
°hehasresiliatedthecontractwithoutaseriousreasonor
°ifhehashimselfgiventheemployeesuchareasonforresiliatingthe
contract.
Contractforservices

Whenreadtogether,theprovisionsofart.2085and2098CCQmightbe
helpfulinordertoascertainthenatureoftherelationsbetweenpartiesand,
forinstancetheownershipofinventionsorcopyrights.
BookSix:Hypothecs
Accordingtoarticle2644CCQ,thepropertyofadebtorischargedwiththe
performanceofhisobligationandisthecommonpledgeofhiscreditors[«le
gagecommundesescréanciers»].As”I.P”.rightsareaformofincorporeal
moveableproperty,theyformpartofthepatrimonyofapersonandcould
beaffected/charged,asothermoretangibleproperty,withtheperformance
ofhisobligations.
InQuébec,thetakingofsecurityinterestonintellectualpropertyhasnot
beenoftendiscussed,eventhough,inpracticetheywereincludedinthe
generaltermsofthetrustdeedssupportingfloatingchargestakenunderthe
authorityoftheQuebecSpecialCorporatePowersAct(R.S.Q.,c.P-16),
which,enpassant,wasonlyapplicabletocorporations!
Themaindifficultyinspecificallypledgingspecificelementsofintellectual
propertywastherequirementofdispossessionofthepledgedmoveable
property.Withoutventuringfurtherinthisdiscussion,let’ssaythatart.2684
CCQnowspecificallypermitsthehypothecationofpatentsandtrademarks.
Ahypothecisarealrightonamoveableorimmoveablepropertymade
liablefortheperformanceofanobligation.Itconfersonthecreditortheright


tofollowthepropertyintowhoseverhandsitmaybe,totakepossessionofit
ortotakeitinpayment,ortosellitorcauseittobesoldand,inthatcase,to
haveapreferenceupontheproceedsofthesalerankingasdeterminedin
thisCode:art.2260CCQ.

°2661Ahypothecismerelyanaccessory
right,and
subsistsonlyaslongastheobligationwhoseperformanceit
securescontinuestoexist.
°2663Thehypothecaryrightsconferredbya
hypothecmaybesetupagainstthirdpersonsonlywhen
thehypothecispublished
inaccordancewiththisBookor
theBookonPublicationofRights.
°2668(1)Propertyexemptfromseizuremaynotbe
hypothecated.
°2692Ahypothecsecuringpaymentofbondsor
othertitleofindebteness(…)shall,onpainofnullity,be
grantedbynotarialactenminute(…)
Ahypothecismoveableiftheobjectchargedismoveableproperty:”I.P.”
rights,aswehaveseen,aremoveableproperty[art.2665(1)CCQ].
Quidofthehypothec(orsecurity)inanintellectualproperty
licenceheldbythedebtor/licensee?Again,inasmuchasa
licencefallswithinthedefinitionofproperty,Iseenoproblem-at
leastfromaconceptualpointofview-inhavingsuchalicence
chargedwithanhypothec.Indeed,theCCQprovidesalready
forthesublicensingandassignmentofalease/licence[1875]!Of
course,theregistrationofsuchahypothecmaytriggerthe
defaultingclauseoftheLicenceAgreementbutsuchisnotthe
point.
Amoveablehypothecmaybecreatedwithorwithoutthedeliveryofthe
moveablehypothecated[art.2665(2)CCQ].Ifthereisnodelivery,thenthe
hypothecshallberegisterdtobeopposedtothirdparties[art.2663CCQ];if
thereisdelivery[pledge/gage],publicationismadethroughpossessionofthe
property[art.2703and2705CCQ].
Asageneralrule,art.2683CCQstatesthatanaturalpersoncouldonlygrant
amovablehypothecwithoutdeliveryonthepropertyofthatenterprise,
otherwisedeliveryiscompulsory.
Deliveryofintellectualpropertyhasalwayscreateddifficultiesas,bytheir
nature,thoserightsareincorporeal.However,deliveryofthetitleevidencing
this”I.P.”right[forinstance,theletterspatentforaninvention,thecertificate


ofcopyrightorthecertificateofplantbreeders’rights]shouldbeconsidered
toavailforthedeliveryrequiredbytheCode[art.2703CCQ].
2684.Onlyaperson
[legalornatural]oratrusteecarryingonan
enterprise[withinthemeaningofart.1525]maygranta
hypotheconauniversalityofproperty,movableorimmovable,
presentorfuture,corporealorincorporeal.
Theperson
ortrusteemaythushypothecateanimals,
toolsorequipmentpertainingtotheentreprise,claimsand
customersaccounts,patentsandtrademarks
[whythoseandnot
theothers?]orcorporealmovablesincludedintheassetsofany
ofhisenterpriseskeptforsale,leaseorprocessinginthe
manufactureortransformationofpropertyintendedforsale,for
leaseorforuseinprovidingaservice.
ThishypothecreplacesthetrustdeedwhichexistedundertheSpecial
CorporatePowersActandwasapplicabletowhoeverisoperatingan
enterprise[i.e.,aneconomicactivity,whetherornotofacommercialnature]
aswellastheequivalentprovisionundertheActrespectingbillsoflading,
receiptsandtransfersofpropertyinstock(R.S.Q.,c.C-53),nowrepealed.
Section27oftheSpecialCorporatePowersActnowsreads:
°Anyjointstocklegalpersonwhichdoesnotcarrryonan
enterprise,
¬constitutedasalegalpersonunderanActorbyletters
patentand
¬empoweredtoborrowandtohypothecateor
°anylegalperson
¬thusconstitutedoutsideQuébec,
¬ifsoempoweredbyitscharterorbythelawgoverningit
°mayavailitselfoftheprovisionsoftheCivilCodeofQuébec
and
°grantahypothec,evenafloatinghypothec,onauniversalityof
property,movableorimmovable,presentorfuture,corporealor
incorporeal.

Quaere:Couldasecurityinterestbetakenagainstpartofatrademark[for
instance,theclothingpartofatrademarkregisteredforcosmeticsand
clothing]?Whynot?Indeed,Rules59and60oftheTrade-marksRules
alreadyprovideforthepossibilityoftheassignmentofpartofatrademark,
whetherregistredornot;therefore,thehypothecationofonlypartofthe
trademarkthatissusceptibleofbeingassignedshouldbepermitted.
However,intheeventofadefaultunderthehypothec,theRegistrarofTrade-
markswouldpresumablyonlyrecognizeanewownershipofthe


hypothecatedpartofthetrademarkinasmuchasitconformswiththeTrade-
MarksActandtheRulesadoptedthereunder.Subsection15(3)oftheTrade-
MarksAct,forinstance,wouldprohibitanamendmentoftheregister
recordinganychangeintheownershipoftheownerofanyoneofagroupof
associatedtrademarksunlessthesamechangehasoccurredwithrespectto
allthetrademarksofthesamegroups.Onthesametoken,shouldthe
hypothecbegrantedforonlypartoftherelatedwaresofoneclass[e.g.
cosmeticsandperfumes],theRegistrarwillmostprobably,underthecurrent
practice,refusestorecognizethetransferonhisregister,evenifperfectly
validunderthehypothecaryprovisionsoftheCCQ.

Finally,sections133to140oftheTransitionalProvisionsdealwithPriorClaims
andHypothecsgrantedbeforethecomingintoforceoftheCCQ.Basically,
propertychargedassecurityandforwhichtherighttotherealizationofthe
securitywasacquiredbeforethecomingintoforceoftheCCQare
governedbytheformerlegislation.Iftherighttotherealizationwasnotthen
acquired,thenewlegislationisapplicable.
BookSeven:Evidence
Thegeneralprinciple
ofwhoisassertingarightshallprovethefactsonwhich
hisclaimisbased[art.2803CCQ]hasbeenmaintainedaswellasthe
presumptionofgoodfaith[art.2805CCQ]
Judicialknowledge
hasnowbeencodifiedandincludesfactsthatare
generallyknown[art.2808CCQ]aswellasforeignlaw[art.2809CCQ]
providedithasbeenpleaded.So,ifthelicenceagreementuponwhich
yourclaimisbasedisgovernedbythelawsofNebraskaorOntario,youmust
alledgeit,failingwhichthecourtwillapplytheQuébeclawonthematter.
Inaidsometimestosection24(a)oftheCanadaEvidenceAct(R.S.C.1985,c.
C-5),art.2813-2820CCQallowstheintroductioninevidenceof”authentic
acts”,whicharethosereceivedorattestedbyacompetentpublicofficer
accordingtothelawsofQuébecorofCanada,withtheformalitiesrequired
bythelaw.Suchwouldbethecaseforthedocumentsattestedby(orfor!)
theRegistrarofTrade-marksorofCopyrights,irrespectiveoftheprovisionsof
sections53or54ofthesestatutes.Therecital,inanauthenticact,ofthefacts
whichthepublicofficerhadthetaskofobservingorrecordingmakesproof
againstallpersons.


Computerizedrecordsrespectingajuridicalactarenowadmissible,subject
tothereliabilityoftheentryofthedata:art.2837-2839CCQ.
Proofofadocumentcouldnowbemadebythefilingofthereproduction

thereofsubjecttocertainconditionsastoitsaccuracyandidentification:art.
2840-2842CCQ.
Admissibilityofevidenceandproof.
Threearticlesofacuteinterest:
2857.Allevidence
ofanyfactrelevanttoadisputeisadmissible
andmaybepresentedbyanymeans.
2858.Thecourtshall,evenofitsownmotion,rejectanyevidence
obtainedundersuchcircumstancesthatfundamentalrightsand
freedomsarebreachedandthatitsusewouldtendtobringthe
adminsitrationofjusticeintodiserupte.
(…)
2867.Anadmissionmadeoutside
theproceedinginwhichitis
invokedisprovedbythemeansadmissibleasproofofthefact
whichisitsobject.
BookEight:Prescription
Thatwhichisnotanobjectofcommerceornottransferablemaynotbe
prescribed[art.2876CCQ];easytounderstandandapplyforhumantissues
butwhatwouldbethesituationwithrespecttopersonalityrightslikename
andimage?
Quaere.Wouldadistantrelative,ultimateheirofthe”fame”ofacomposer
otherwiseignored/unknownsinceeightyyearsbutnowdiscoveredandӈla
mode”beentitledtoprotectthisfame;andwhataboutthecomposerwho
becomesknownposthumously,forwhichtheheirsofthefirstgenerationhave
neverreactedtothecommercialuseoftheimageofthedeceasedbutfor
whichheirsofthesecondorthirdgenerationinvestthemselvesofamissionto
protecttheworkandthecommercailexploiatationoftheimageofthis
composer?.
Applicablelimitationperiod.
Section41oftheCopyrightActprovidesfora
threeyearlimitationperiod,section18oftheIndustrialDesignsActprovides
foratwelvemonthlimitationperiodandsection12oftheIntegratedCircuit
TopographyActprovidesforathreeyearlimitationperiod.Astotheother
“I.P.”federalstatutesthelawissilent:thereforethelimitationapplicableto


patent,trademarkorplantbreeders’rightinfringementwouldobeytothe
qualificationoftheactsreproachedinthejurisdictionchosen.InQuébec,an
actionforinfringementoftheserightswouldconstitute”anactiontoenforce
apersonalrightormovablerealright”andwouldobeytothethreeyear
limitationperiod:art.2925CCQ.
Careshouldbetakenintheframingofanactionundersection22ofthe
Trade-MarksActastrademarkdilutionorinterferencewithgoodwill(which
indeedisanotherwordforreputation)couldbeconsideredasfallingunder
theoneyearshortprescriptionfordefamation:art.2929CCQ.
Astoactionsforpassingoff,encroachmentofanunregistredtrademark,
unfaircompetion,parasitism,genericide,abuseofconfidence,breachof
trustorwrongfulappropriationoftradesecrets,theywillbesubjecttothe
threeyearslimitation.
Prescriptionmustbepleaded
.Thecourtcannotofitsownmotionsupplythe
plearesultingofprecription,exceptwhentheforfeitureoftherightisexpressly
statedinthetextoflaw:art.2878CCQ.UndertheCivilCodeofQuebec,
contrarytothesituationprevailingunder2267CCLC,theshortprescriptionsof
articles2925and2929CCQarenotdeclaredasextinguishingtherightandas
acompletebartoaction.Itfollowsthatthecourtshouldnottakethese
limitationsinconsiderationunlesstheyarepleaded.
Wrongjurisdiction
.Anactiondismissedwithoutadecisionhavingbeen
madeonthemeritswillinterruptthelimitationperiodprovidedafreshaction
istakenwithinthreemonthsofthisdecision:art.2895CCQ.
Thisisofgreatinterestwhenanactionisdismissed,forinstanceforforumnon
conveniensorwantofjurisdictionorformereproceduralflaws.Typicallythis
mightinvolveanactionbeforetheFederalCourttobedeclaredtheowner
ofanunregistredtrademarkbyvirtueofawilloranactionforgenericuseof
aanunregistredtrademarkorforunfaircompetition.
Solidarity.
Asstatedbyart.2900CCQ,interruptionwithregardtooneofthe
creditorsordebtorsofasolidaryorindivisibleobligationhaseffectwith
regardtoothers.Extracontractualobligations,like”I.P.”rightsinfringements
aresolidary:art.1526.
BookNine:PublicationofRights

 
An”I.P.”right,aswehaveseenalready,isaformofincorporealmoveable
property.Assuchitcouldbetheobjectofvariouscontracts,beit
sale/assignment,lease/licence,usufruct,co-ownership,hypothec,or
otherwise.
Thesetransactionsover”I.P.”mayberecordedattheproperbranchofthe
CIPO;theymayalso[andeven,sometimes,theyshall]bepublishedby
registrationintheregisterofpersonalandmoveablerealpropertysotohave
effectagainstthirdparties.
Indeed,thepublicationof”I.P.”rightsiseffectedbytheirregistrationinthe
centralregisterofpersonalandmoveablerealrightsinMontreal,presumably
byusingaRGcompulsoryformforageneralinscriptionoraRHcompulsory
formformoveablehypothec.
2941.Publicationofrightsallowsthemtobesetupagainstthird
partpersons,establishestheirrankandwherethelawso
provides,givesthemeffect.
Rightsproducetheireffectsbetweentheparties
evenbeforepublication,unlessthelawexpresslyprovides
otherwise.

Aninterestingquestionmightarisehereinthecaseofconflictualrecordalof
grantofinterestorassignmentunderthosefederal”I.P.”statuteswhich
provideforapriorityofrighttothefirstbonafiderecordingassigneeanda
priorpublicationundertheCCQ.
Seeforinstancesubsection31(3)ofthePlantBreeders’RightsAct:
Anassignmentofplantbreeder’srightsisvoidagainsta
subsequentassigneethereofforvaluableconsideration
withoutnoticewhoisregisteredastheholderoftherights
unless,beforethesubsequentassigneeissoregistered,the
persontowhomthatassignmentismadeisregisteredas
holderoftherights.

section51ofthePatentAct:
51.Everyassignmentaffectingapatentforinvention,
whetheritisonereferredtoinsection49or50,isvoid
againstanysubsequentassignne,unlesstheassignmentis
registeredasprescribedbythosesections,beforethe
registrationoftheinstrumentunderwhichthesubsequent
assigneeclaims.



orsubsection57(3)oftheCopyrightAct:
Anygrantofaninterestinacopyright,eitherby
assignmentorlicence,shallbeadjudgedvoidagainstany
subsequentassigneeorlicenseeforvaluableconsideration
withoutactualnotice,unlessthepriorassignmentor
licenceisregisteredinthemannerprescribedbythisAct
beforetheregisteringoftheinstrumentunderwhichthe
subsequentassigneeorlicenseeclaims.
Insuchacase,whatwouldbethesituationofthesubsequentassigneewho
recordshisrightsattheCIPOagainsttheinitialassigneewhohasnot
recordedhisrightsatCIPObuthascausedthemtobepublishedunderthe
CCQbeforethemakingoftherecordalofthesubsequent/secondassignee?
CouldtherecordalmadeundertheCCQbeopposedtotheonemadeat
CIPO?[WhatabouttheparamountcyoftheFederallegislation,insucha
case?]WouldthepublicationundertheCCQbesufficienttogivetothe
subsequentassigneetheactualknowledgeornoticeofthefirstnon-CIPO
recordedassignmentsoastorenderthesubsequent-butfirstCIPO!-
assignmentvoid?
Interesting,isn’it.
BookTen:PrivateInternationalLaw
Let’ssummarize/selectsomeoftheprovisionsoftheBookonPrivate
InternationalLaw.
°Characterizationismadeaccordingtothelegalsystemofthecourtseised
ofthematter:art.3078CCQ.
°Theobligationtomakereparationforinjurycausedtoanotherisgoverned
bythelawofthecountrywheretheinjuriousactoccurred:art.3126CCQ.
°Evidenceisgovernedbythelawapplicabletothemeritsofthedispute:art.
3130CCQ.
°Prescriptionisgovernedbythelawapplicabletothemeritsofthedispute:
art.3131CCQ.
Procedureisgovernedbythelawofthecourtseisedofthematter:art.3132
CCQ.
Thedocrineofforumnonconveniensisnowaccepted:art.3135CCQ.


Inpersonalactionsofpatrimonialnature(asareinfringementof”I.P.”rights),
Québeccourtshavejurisdictionwherethedefendanthashishead
office/domicileorhasaplaceofbusiness/residenceinQuébec,afaultwas
committedinQuébecordamageswerecommittedinQuébecorthereis
consentoracquiescencetothejurisdictionofQuébeccourts:art.3148CCQ.
Asageneralrule,Québeccourtswillnowrecognizeandenforcedecisions
renderedoutsideQuébec:art.3155CCQ.
Let’sillustratebyanexample:theinfringementofaregistredtrademark
belongingtoaUScorporation,committedinQuébecbyapersondomiciled
inOntario.
Québeccourtscertainlyhavejurisdictionoversuchanaction[art.3148(3)
CCQ]whichobligationwouldbequalifiedunderQuébeclawasapersonal
actionofapatrimonialnature[art.3126CCQ];theapplicableprescription
wouldthenbegovernedbythelawofQuébec[art.3126&3131CCQ]and
thereforetheappropriatelimitationperiodwouldbethreeyears[art.2295
CCQ].Ontheotherhand,inviewofthedomicileofdefendant,itisassumed
thatOnariocourtswillalsoacceptjurisdiction,inwhichcasethelimitation
periodwillbesixyears,thereforeincreasingconsiderablytheexposureofthe
defendantandtheamountsofdamagesthatcouldthenbeclaimed.
Let’sconcludethisBookbysayingthatitmayworthtakingsometimeto
makesome”forumshopping”beforelaunchingcourtaction.
Conclusion
Inconclusion,weshallborrowthewordsofPortalis(1746-18070,oneofthe
draftersoftheFrenchCivilCode:
“Uncode,quelquecompletqu’ilpuisseparaître,n’estpasplutôt
achevé,quemillequestionsinattenduesviennents’offrirau
magistrat.Carleslois,unefoisrédigées,demeurenttelles
qu’ellesontétéécrites;leshommes,aucontraire,nesereposent
jamais;ilsagissenttoujours;etcemouvement,quines’arrête
pas,etdontleseffetssontdiversementmodifiésparles
circonstances,produitàchaqueinstantquelquecombinaison
nouvelle,quelquenouveaufait,quelquerésultatnouveau.



Unefouledechosessontdoncnécessairementabandonnéesà
l’empiredel’usage,àladiscussiondeshommesinstruits,à
l’arbitragedesjuges.
L’officedelaloiestdefixer,pardegrandesvues,lesmaximes
généralesdudroit;d’établirdesprincipesfécondsen
conséquence,etnondedescendredansledétaildesquestions
quipeuventnaîtresurchaquematière.
C’estaumagistratetaujurisconsulte,pénétrésdel’espritgénéral
deslois,àendirigerl’application.
Delà,cheztouteslesnationspolicées,onvoittoujoursseformer,
àcotédusanctuairedeslois,etsouslasurveillancedu
législateur,undépôtdemaximes,dedécisionsetdedoctrines
quis’épurejournellementparlapratiqueetparlechocdes
débatsjudiciaires,quis’accroîtsanscessedetoutesles
connaissanceacquises,etquiaconstammentétéregardé
commelevraisupplémentdelalégislation.”
¬Jean-Étienne-MariePORTALIS,Discourspréliminairesurleprojet
decodecivil(1801),inÉcritsetdiscoursjuridiquesetpolitiques,
CollectiondesPublicationsduCentredePhilosophieduDroit
(Aix,Pressesuniversitairesd’Aix-Marseille,1988),atp.26[Emphasis
added.]


APPENDIXA
Authors
Authors-Introduction
BERGEL(Jean-Louis),Spécificitésdescodesetautonomiedeleur
interprétation,inLenouveauCodecivil:interprétationetapplication-Les
journéesMaximilien-Caron1992(Montréal,Thémis,1993),pp.5-23
BISSON(Alain-François),NouveauCodeciviletjalonspourl’interprétation:
traditionsettransitions(1992),23Revuededroitdel’universitédeSherbrooke
1-25
BISSON(Alain-François),Dualitédesystèmesetcodificationciviliste,in
ConférencessurlenouveauCodecivilduQuébec(Cowansville,Blais,1992),
atpp.39-53
BRIERLEY(JohnE.C.),LeslanguesduCodecivilduQuébec,inLenouveau
Codecivil:interprétationetapplication-LesjournéesMaximilien-Caron1992
(Montréal,Thémis,1993),pp.129-146

BRISSON(Jean-Maurice),LeCodecivil,droitcommun?,inLenouveauCode
civil:interprétationetapplication-LesjournéesMaximilien-Caron1992
(Montréal,Thémis,1993),pp.293-315
BRISSON(Jean-Maurice),L’impactduCodecivilduQuébecsurledroit
fédéral:uneproblématique(1992),52RevueduBarreau,345-360
FABIEN(Claude),LesloisdutravailsousleprismedunouveauCodecivil-
intervention,inLeCodeciviletlesrelationsdutravail,Collectioninstruments
detravail(Québec,départementdesrelationsindustriellesdel’université
Laval,1993),atpp.16-24
GLENN(Patrick),LacivilisationdelaCommonLaw,inMélangesGermain
Brière,CollectionBleue(Montréal,Wilson&Lafleur,1993),pp.595-616
GUY(Marcel),LeCodecivilduQuébec:unpeud’histoire,beaucoup
d’espoir(1993),23Revuededroitdel’UniversitédeSherbrtooke453-499
MOREL(André),L’émergencedunouvelordrejuridiqueinstauréparleCode
civilduBasCanada(1866-1890),inLenouveauCodecivil:interprétationet
application-LesjournéesMaximilien-Caron1992(Montréal,Thémis,1993),pp.
54-60


PINEAU(Jean),LaphilosophiegénéraledunouveauCodecivilduQuébec,in
LenouveauCodecivil:interprétationetapplication-Lesjournées
Maximilien-Caron1992(Montréal,Thémis,1993),pp.269-291;reprintedin
(1992),71CanadianBarReview423-44
Authors-Persons-Integrityoftheperson
DELEURY(Édith),Lapersonneetsoncorps:l’éclatementdusujet(1991),70
CanadianBarReview448-472
DELEURY(Édith)etal.,Ledroitdespersonnesphysiques(Cowansville,Blais,
1994),640pages
GALLOUX(Jean-Christophe),Réflexionssurlacatégoriedeschoseshorsdu
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*TAMARO(Normand),Certainesdifficultésquantàlaconcession,parvente,
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*TAMARO(Normand),LenouveauCodecivil,droitcommundescontratsen
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*GILKER(Stéphane),Lelocusstandidutitulaired’unelicencededroit
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*LAMBERT(Jean),Letélécopieur,unmerveilleuxcauchemarjuridiqueoules
aspectsjuridiquesdel’utilisationdutélécopieurendroitquébécois[1992]2
Coursdeperfectionnementdunotariat461-532
MARSEILLE(Claude),Survoldunouveaulivredelapreuve(1993),1Repères1-
3;(1993),2Repères9-10
*PATENAUDE(Pierre),Sciencesettechniquesenpreuve:nécessaireréforme
dudroitcivil,indispensableadaptationdusystèmeetacteurs,in
Développementsrécentsendroitcivil(1992)(Cowansville,Blais,1992),pp.77-
100
PINEAU(Jean),Lesgrandeslignesdelaréformeportantsurledroitdela
preuveetdelaprescription[1989]1Coursdeperfectionnementdunotariat
1-28,atnos.1-62
Authors-Prescription
BAUDOUIN(Jean-Louis),Lesobligations,4thed.(Cowansville,Blais,1993),825
pages,atnos.1022-1070


CANTINCUMYN(Madeleine),Lesprincipauxélémentsdelarévisiondesrègles
delaprescription(1989),30LesCahiersdedroit611-625
*CARRIÈRE(Laurent),Prescriptionetpropriétéintellectuelleoulaprescription
extinctivecommefindenon-recevoirenmatièredepropriétéintellectuelle
(1993),10CanadianIntellectualPropertyReview357-401
LAFOND(Pierre-Claude),Droitdesbiens,CollectionMémentosThémis
(Montréal,Thémis,1991),790pages,atpp.664-724
PINEAU(Jean),Lesgrandeslignesdelaréformeportantsurledroitdela
preuveetdelaprescription[1989]1Coursdeperfectionnementdunotariat
1-28,atnos.63-101
Authors-PublicationofRights
CARON(Camille),Delapublicitédesdroits,inLaréformeduCodecivil
(Québec,P.U.L.,1993),vol.3,pp.589-668
LAMONTAGNE(Denys-Claude),Lapublicitéfoncière(Cowansville,Blais,
1994),350p.
Manueldel’inscriptionetdelaconsultationdesdroitspersonnelsetréels
mobiliers(Québec,PublicationsduQuébec,1993)
PAYETTE(Louis),Lapublicitédessûretés,inFinancingandFinancialPlanning
UndertheNewCivilCodeofQuébec-WhatToDoandWhatNotToDoin
CommercialFianancingforthe90s(Montreal,McGillUniversityFacultyofLaw,
1993)
Authors-PrivateInternationalLaw
GLENN(H.Patrick),Droitinternationalprivé,inLaréformeduCodecivil
(Québec,P.U.L.,1993),vol.3,pp.669-800
GOLDSTEIN(Gérald),L’interprétationdudomained’applicationinternational
dunouveauCodecivilduQuébec,inLenouveauCodecivil-Interprétation
etapplication(Montréal,Thémis,1993),pp.83-127
GROFFIER(Ethel),Précisdedroitinternationalprivéquébécois,4thed.
(Cowansville,Blais,1990),393p.;Laréformedudroitinternationalprivé
québécois-SupplémentauPrécisdedroitinternationalprivéquébécois
(Cowansville,Blais,1993),186p.


TALPIS(JeffreyA.)etal.,LeCodecivilduQuébec-Interprétationdesrègles
dedroitinternationalprivé,inLaréformeduCodecivil(Québec,P.U.L.,1993),
pp.801-933
Authors-Transitional
CÔTÉ(Pierre-André),Leprojetdeloisurl’applicationdelaréformeduCode
civil-Lesdispositionstransitoires[1992]2Coursdeperfectionnementdu
notariat337-367
CÔTÉ(Pierre-André),Ladistinctioneffetrétroactifeteffetimmédiatdelaloi
nouvelle:aspectshistoriquesetcomparatifs,inLenouveauCodecivil-
Interprétationetapplication(Montréal,Thémis,1993),pp.69-80
CÔTÉ(Pierre-André)etal.,LedroittransitoirerelatifàlarédormeduCode
civil,inLaréformeduCodecivil(Québec,P.U.L.,1993),vol.3,atpp.935-1058
HELEINE(François),Petitvade-mecumdesétapesdedéroulementdesrègles
deconflitdedroittransitoire(1994),96Revuedunotariat367-385
Loisurl’applicationdelaréformeducodeciviletcommentrairesduministre
delajustice(Montréal,Dafco,1994),237pagaes
ROUBIER(Paul),Ledroittransitoire,2nded.(Paris,Dalloz,1993),590pages

 
Postface
Ledemandeurn’atrouvéqu’uneréponseàcesautoritésetces
arrêts,cefutdedirequecen’estpasledroitfrançaisninotre
codecivil,maisledroitanglaisquirégitcesmatières;pourquoi,
envertudequelleloi?ilnel’apasdit.C’estunedeces
suggestionsjetéesàtouthazard,dansl’espoirqu’elleferapeut-
être,soncheminauprèsdequelquejuge,maisqui,pourmoi,est
unaveuquelesopinionsnevarientpassurlaquestion,etquela
discussionn’estpaspossibled’aprèsledroitfrançais.
¬Wardv.TheMontrealColdStorage&FreezingCo.(1904),
26C.S.310(Que.Sup.Ct.-Rev.),PagnueloJ.,atp.348
EnglishdecisionscanbeofvalueinQuebeccasesinvolving
questionsofcivillawonlywhenithasbeenfirstascertainedthatin
thelawofEnglandandthatofQuebectheprinciplesupon
whichtheparticularsubjectmatterisdealtwitharethesame
andaregiventhelikescopeintheirapplication,andeventhen
notasbindingauthoritiesbutratherasrationesscriptae:anditis
onlyonthatfootingandforpurposesofcomparisononlythatI
shallrefertothem.
¬Curleyv.Latreille(1920),60S.C.R.131(S.C.C.)AnglinJ.,at
pp.133-134
Withrespect,itseemstomethatitistimetoreactagainstthe
habit,incasesfromtheProvinceofQuebec,ofresortingto
Englishcommonlawprecedents,onthegroundthattheCivil
Codecontainsarulewhichisinaccordancewitharuleof
Englishlaw.Onmanypoints[…]theCivilCodeandthecommon
lawdohavesimilarrules.Howeverthecivillawisacomplete
systeminitselfandmustbeinterpretedinaccordancewithits
ownrules.If,wheneverthelegalprinciplesarethesame,the
courtscanresorttoEnglishlawinordertointerpretFrenchcivil
law,themonumentofFrenchjurisprudencemightequallybe
citedtothrowlightupontherulesofEnglishlaw.Irepeat,each
systemiscompleteinitself,andapartfromthecasewhereone
systemtakesfromtheotherarulethatwasformerlyforeigntoit,
thereisnoneedtogobeyonditinsearchoftherulewhich
shouldbeappliedtovariedsituationsthatariseindailypractice.
¬Desrosiersv.TheKing(1920),60S.C.R.105(S.C.C.)
MignaultJ.,atp.126[translatedandcitedinRubisv.GrayRocks
InnLtd.(1982),[1982]1S.C.R.452(S.C.C.)BeetzJ.,atp.469)



Cependant,jeregretted’avoiràledire,lesavocatsdel’intimée,
lorsdel’auditiondelacause,ontpersistésàneciter,outreles
articlesducode,quedesautoritéstiréesducommonlaw.Ce
n’estpasainsiquel’onconserveradanstoutesonintégritéledroit
civildanslaprovincedeQuébec.Etj’ajoutequ’ilest
grandementtempsquel’onseconvainquequecedroitest
assezricheendoctrineetenjurisprudencepourfournirune
solutionconformeàsongénieàtouteslesdifficultésquise
rencontrentdanslapratique.
¬TheMileEndMillingCompanyv.PeterboroughCereal
Company(1924),[1924]S.C.R.120(S.C.C.),MignaultJ.,atp.129



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