Use as a Company Name Distinct from Use of a Trade-Mark Rules Federal Court of Appeal in Medos Expungement Case

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USEASACOMPANYNAMEDISTINCTFROMUSEOFATRADE-MARK
RULESFEDERALCOURTOFAPPEALINMEDOSEXPUNGEMENTCASE

B
ARRYGAMACHE*
ROBIC,
LLP
L
AWYERS,PATENT&TRADEMARKAGENTS

Inadecisionthathighlightswhatdoesnotconstitutetrade-markuse,Canada’s
FederalCourtofAppealrecentlyconfirmedanearlierdecisionbytheFederalCourt
thatorderedtheexpungementofthetrade-markMEDOSfurthertoproceedings
undersection45ofCanada’sTrade-marksAct,R.S.C.1985,c.T-13(the“Act”)
(MedosServicesCorporationvRidoutandMaybeeLLP,2015FCA77(F.C.A.,Noël
C.J.,GauthierandScottJJ.A.,March18,2015)).
Thetrade-markMEDOS,ownedbyMedosServicesCorporation,wasregisteredin
1990inassociationwiththeoperationofawholesaleandretailbusinessdealingin
thedistributionandsaleofmedicalandhealthcaresuppliesandequipmentthrough
multipledistributioncenters.
OnDecember23,2010,furthertotherequestbythelawfirmRidoutandMaybee
LLP,Canada’sRegistrarofTrade-marksissuedanoticeundersection45oftheAct
toMedosServicesCorporationasregisteredownerofthetrade-markMEDOS.

Section45oftheActprovidesthattheRegistrarofTrade-marksmayatanytimeand,
attherequestmadeafterthreeyearsfromthedateofregistrationofatrade-markby
anypersonwhopaystheprescribedfeeshall,unlessheseesgoodreasontothe
contrary,givenoticetotheregisteredownerofthetrade-markrequiringtheregistered
ownertofurnishwithinthreemonthsanaffidavitorastatutorydeclarationshowing,
withrespecttoeachofthegoodsorservicesspecifiedintheregistration,whetherthe
trade-markwasinuseinCanadaatanytimeduringthethreeyearperiod
immediatelyprecedingthedateofthenoticeand,ifnot,thedatewhenitwaslastso
inuseandthereasonfortheabsenceofsuchusesincethatdate.Whenthe
registeredownerfailstofurnishanyevidenceorwhereitappearsthattheevidence
doesnotrevealuseinaccordancewiththerequirementsoftheAct,theregistrationof
thetrade-markisliabletobeexpungedoramendedaccordingly.ThisisCanada’s
“useorloseit”provisionrelatingtotrade-marks.

©CIPS,2015.*LawyerofROBIC,LLP,afirmoflawyers,patentandtrade-markagents.Publishedunderthetitle
CanadaCourtRulesUseofCompanyNameDistinctFromUseasTrade-Mark(2015)29:5World
IntellectualPropertyReport6-7.Publication142.297.

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2
AstheRegistrardidnotreceiveanyreplyfromtheregisteredownerofthetrade-mark
MEDOSbyMarch23,2011,heorderedthatthetrade-markbeexpungedonApril26,
2011.TheprincipalofMedosServicesCorporation,Mr.AlexanderVlasseros,
becameawareoftheRegistrar’sdecisionandhe,alongwithMedosServices
CorporationandMarathonMedicalInc.,arelatedcorporation,allappealedthe
decision.
Duringtheappeal,Mr.Vlasseros,whoisnotanattorney,wasgrantedleavetoacton
behalfofbothMedosServicesCorporationandMarathonMedicalInc.

Onappeal,Mr.Vlasserosarguedthatnaturaljusticewasdeniedtotheappellants
sincethesection45noticewasneverreceivedbytheregisteredownerofthetrade-
markMEDOS(thusexplainingwhynoevidenceofusewasfiled)butthatthe
Registrardecidedtoexpungetheregistrationinanyevent.Thisargumentwas
dismissedbyMr.JusticeHarringtonoftheFederalCourtwhostatedthattheappeal
broughtbytheappellantsundersection56oftheActinthiscasewasaperfectly
adequaterecourseprovidedbytheActitselfwhentheRegistrarordersthe
expungementofatrade-markundersection45oftheAct(forwhateverreason)since
section56providesthatanappellantmayfilebeforetheCourtanyevidence
highlightingtheuseofitstrade-mark(evenifnoevidencewasfiledbeforethe
Registrar).Thus,theappealprocessprovidesamechanismagainsttheunjustified
expungementofaregisteredtrade-markincases,forexample,wheretheregistered
ownerdidnotreceivethesection45noticeinatimelyfashion.

BeforetheFederalCourt,Mr.Vlasserosfiledtelephonebillsfor,apparently,Yellow
Pageadvertisementofthetrade-mark.However,thebillsinthemselvesdidnot
provideanyevidenceofuseofthetrade-markandMr.Vlasseros’commentsduring
argumentsbeforetheCourtwererejectedsincetheyshouldhavebeenincludedin
theaffidavitfiledinsupportofthetelephonebills.

CorrespondencewithforeignsupplierswasalsorelieduponbyMr.Vlasseros.Again,
thesedocumentsdidnotshowuseofthetrade-markMEDOSbutratherprovided
speculationastofutureprojectswiththetrade-markinCanada.

Invoicesregardingthesaleofmedicalequipmentwerealsosubmitted.Thisevidence
wasalsodismissed,theCourtconcludingthatifmedicalequipmenthadbeensold
undertrade-markMEDOS,thisoccurreddecadesearlier.

TheFederalCourtconcludedthatnoevidenceofusewasfiledbytheownerofthe
trade-markMEDOSatanymomentduringthethreeyearsprecedingthenoticedate
ofDecember23,2010.TheCourtthereforeorderedthattheappealbedismissed.

MedosServicesCorporation,MarathonMedicalInc.andMr.Vlasserosallappealed
theFederalCourt’sOrderandarguedthatthejudgeerredinhisanalysisofwhathe
describedas“correspondencewithforeignsuppliers”.Inthosedocuments,argued
theappellants,evidenceofuseofthetrade-markMEDOScouldbefound.The

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3
appellantspointedtouseoftheword“medos”incommunicationswithforeign
suppliersthatwerefiledintoevidencebeforetheFederalCourt.

TheFederalCourtofAppealacknowledgedthepresenceoftheword“medos”in
thesecommunicationsbutemphasizedthatnomentionwasmadeinsaiddocuments
ofthetrade-markMEDOS.Forexample,theword“medos”appearedinanemail
addressusedbyMr.Vlasseros,namelyalexmedossys@hotmail.com.TheFederal
CourtofAppealinsistedthatatrade-markisnotusedwhenitisnotdistinguished
fromsurroundingtext.TheemailaddressusedbyMr.Vlasseroscouldthereforenot
bereliedupontoestablishtrade-markuse.
Afurtherexampleconcernedtheuseofthecompanyname“MEDOSSERVICES
corp”inthebodyofanemail.Again,theuseofacompanynamecouldnotberelied
upontoestablishuseofthetrade-markMEDOS.ThewordMEDOSwasnot
distinguishedfromthesurroundingtext.
Otherexamplesofso-calleduserelieduponbytheappellantswerealsorejected
sincetheyweredatedafterDecember23,2010.
Theappellants’appealwasthereforedismissedandtheRegistrar’sOrderforthe
expungementofthetrade-markMEDOSremainedundisturbed.

Thiscaseillustrateswhytheconceptoftrade-markuseisimportantandmustbe
distinguishedfromtrade-nameuseorevenemailaddressuse.Accordingtothe
FederalCourtofAppeal,foratrade-marktobeused,itmuststandoutfromthe
surroundingtext.Whenthisoccurs,andprovidingallotherlegalrequirementsare
satisfied,useofatrade-markcanbeestablished.Contrarytopopularbelief,just
becausewords(thatalsohappentobeatrade-mark)aresomehowprintedona
document,trade-markuseisnotnecessarilyestablished.

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neighbouringrights;computer,softwareandintegratedcircuits;
biotechnologies,pharmaceuticalsandplantbreeders;tradesecrets,know-
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