To reinstate or not reinstate : That was a question
T
OREINSTATEORNOTTOREINSTATE:THATWASAQUESTION…
A
LEXANDRASTEELE*
LEGERROBICRICHARD,
LLP
L
AWYERS,PATENT&TRADEMARKAGENTS
TheFederalCourtofAppealrecentlyconfirmedthatithasjurisdictiontoorderto
reinstatementoftrade-marksthathavebeenorderedtobeexpungedbytheFederal
CourtofCanada,andwhichhaveinfactbeenexpungedbytheRegistrarofTrade-
markspursuanttosuchorder.[CheapticketsandTravelInc.v.Emall.caIncetal.,
2008FCA50,Décary,SharlowandTrudelJJ.A.,February7,2008]
TheFacts
Emall.caInc.andEmallInc.(“Emall”)appliedtotheFederalCourtofCanadaforthe
expungementoftworegisteredtrade-marks,CHEAPTICKETSandCHEAP
TICKETSANDTRAVEL&DESIGN(the“CHEAPTICKETStrade-marks”),ownedby
CheapticketsandTravelInc.(“Cheaptickets”).
ThebasisfortheapplicationforexpungementwasthattheCHEAPTICKETStrade-
markswereclearlydescriptiveofthequalityandcharacterofthewareandservices
withwhichtheywereused,contrarytosections12(1)(b)and18(1)(a)oftheTrade-
marksAct(R.S.C.1985,c.T-13).
JusticeStrayeroftheFederalCourtgrantedEmall’sapplicationandCheaptickets
appealedthedecisiontotheFederalCourtofAppeal.
BetweenthetimetheFederalCourtjudgementwasrenderedandtheappealwas
lodged,andsincetherehadbeennorequestorordertostaythejudgementofthe
FederalCourt,theRegistrarofTrade-marksgaveeffecttotheorderofJustice
StrayerandstrucktheCHEAPTICKETStrade-marksfromtheregistersome13days
beforetheexpiryofthedelaytoappeal.
©CIPS,2008.*Lawyer,AlexandraSteeleisamemberofLEGERROBICRICHARD,L.L.P.,amultidisciplinaryfirmof
lawyers,andpatentandtrademarkagents.PublishedintheMarch2008issueoftheWorldIntellectual
PropertyReport.Publication142.211.
2
TheFederalCourtofAppealJudgement
TheFederalCourtofAppealfirstconsideredthepreliminaryissueofitsjurisdiction
overtheCHEAPTICKETStrade-markssincetheyhadbeenexpungedfromthe
Canadianregister.
Undersection57oftheTrade-marksAct,theFederalCourthasoriginaland
exclusivejurisdictiontoorderthestrikingoutofatrade-mark.Ajudgementordering
theexpungementofaregisteredmarkisafinaljudgement.Accordingto
Cheaptickets,nothingintheFederalCourtsAct(R.S.C.1985,c.F-7),ortheTrade-
marksAct,givestheFederalCourtofAppealtheauthoritytoorderthereinstatement
ofanexpungedtrade-mark.TheCourtofAppealdisagreedwithCheaptickets’
positiononthebasisthatsection52oftheFederalCourtsActgivestheCourtof
Appealjurisdictiontoeitherdismissanappealorallowsame,andinthelattercase,if
theappealisallowed,theCourtofAppealmayrenderthedecisionthattheFederal
Courtshouldhaverenderedinfirstinstance.TheCourtofAppealconcludedthat,as
aresultofthepowersconferredupontheCourtbyoperationofthelaw,theRegistrar
ofTrade-markswillberequiredtoreinstateanytrade-markithasstruckupon
receivingnoticeofajudgementoftheFederalCourtofAppealorderingsuch
reinstatement.
Thesecondpreliminaryissueconcernedthescopeofthepresumptionofvalidityofa
registeredtrade-mark.Pursuanttosection19oftheTrade-marksAct,atrade-markis
validunlessitisshowntobeinvalid.Apartyapplyingfortheexpungementofatrade-
markwillsucceedonlyifitcanconvincetheCourtthattheevidenceestablishesthat
thetrade-markwasnotregisterableattherelevanttime.Thepresumptionofvalidity
isthereforearebuttableoneandislimitedinscopeandweight.
Onthemeritsofthecase,theFederalCourtofAppealreviewedsubsections12(1)(b)
and18(1)(a)oftheTrade-marksActwhichstatethatatrade-markmustbe
registerableatthedateofregistrationanditmustnotbeclearlydescriptiveor
deceptivelymisdescriptiveofthecharacterorqualityofthewaresorservicesin
associationwithwhichitisused.JusticeStrayerhadruledthattheCHEAPTICKETS
trade-markswereclearlydescriptiveofthecharacterorqualityoftheservicesand
waresinassociationwithwhichtheywereusedbyCheaptickets.TheCourtofAppeal
foundnopalpable,oroverriding,orreadilyextricableerroroflaworfactinthe
FederalCourtrulingandthereforerefusedtooverturnJusticeStrayer’sdecisionon
thispoint.
Onappeal,CheapticketsalsoarguedthatJusticeStrayerfailedtoconsiderthatthe
CHEAPTICKETStrade-markshadacquireddistinctivenessatthedateoffilingofthe
applicationsforregistration,pursuanttosubsection12(2)oftheTrade-marksAct.
Emallarguedthatthissubsectionhadnoapplicationinjudicialexpungement
proceedings:Cheapticketscouldonlyrelyonsubsection18(2)oftheTrade-marks
3
Actwhichenablesatrade-markholdertoraiseaspecificdefenceofacquired
distinctivenessatthetimeofregistration,eveniftheRegistrarofTrade-markswas
notgivenevidenceofdistinctivenessatthetimeofapplicationofthemarkinissue.
EmallclaimedthatifCheapticketswasunabletoestablishthatitstrade-markswere
distinctiveatthedateofregistration,itwasbarredfromestablishingthe
distinctivenessofitstrade-marksatthecommencementoftheregistrationprocess.
TheFederalCourtofAppealdisagreedwithEmall’sinterpretationonthebasisthatit
hadnotpresentedanyauthoritiestosupportsuchanarrowinterpretationof
subsections12(2)and18(2)oftheTrade-marksAct.TheCourtofAppealalsonoted
thattherewasnoevidenceontherecordtosupportCheaptickets’argumentthatthe
CHEAPTICKETStrade-markshadacquiredanydistinctiveness.SinceJustice
StrayerhadalreadyconcludedthattheCHEAPTICKETStrade-markswereclearly
descriptive,theCourtofAppealrefusedtointerferewithhisjudgement,orabsence
thereof,ontheissueofacquireddistinctiveness.
Lastly,theFederalCourtofAppealstatedthattheCHEAPTICKETSANDTRAVEL&
DESIGNtrade-markdidnothavetobetreatedseparateandapartfromtheCHEAP
TICKETSwordmark:thewords“CheapTickets”wereanintegralpartofthedesign
markinissueandwerenotdisclaimed.Sinceatrade-markmustbeconsideredasa
whole,theFederalCourtofAppealrefusedtointerferewithJusticeStrayer’sfinding
thattheCHEAPTICKETSANDTRAVEL&DESIGNtrade-markwasalsoclearly
descriptiveofthewaresandservicesassociatedwithitandshouldbeexpunged.
Forallthesereasons,theFederalCourtofAppealdismissedtheappealwithcosts.
Conclusion
Thiscaseconstitutesaremindertotrade-marksownersthatweaktrade-marks
remainvulnerabledespitetheirregistration.Atrade-markownercannotrelysolelyon
itsregistrationtoprotectitsrights:itmustalsoensurethatitstrade-markswere,are
andwillremaindistinctive.Trade-markownersshouldbeconsciousoftheburden
thatmayfalluponthemintheeventofjudicialexpungementproceedings:evidence
ofuse,bothpriortotheregistrationandaftertheregistrationshouldthereforebe
diligentlykeptinordertoensurethetrade-markcanbedefendedintheeventofan
attackonthereigistration.
4
5
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