Judgments

Decision Information

Decision Content

T-2438-77
Société des Produits Marnier-Lapostolle (Appel- lant) (Opponent)
V.
Robert Macnish & Company Limited (Respond- ent) (Applicant)
and
Registrar of Trade Marks (Mis -en-cause)
Trial Division, Marcean J. Montreal, November
16; Ottawa, November 28, 1977.
Trade marks Design submitted for use with "distilled alcoholic beverages" Previous marks for whisky only Opposition summarily rejected without hearing Whether or not Registrar's decision to be overturned and normal opposi tion procedure followed Trade Marks Act, R.S.C. 1970, c. T-l6, ss. 6(2). 12(1), 16(1). 37(4).
Appellant disputes the decision of the Registrar of Trade Marks summarily rejecting, without hearing for lack of sub stantive issue, its opposition to respondent's application for the registration of a "trade mark and design". The design featured "Grand Macnish" in Gothic letters, and was intended for use with "distilled alcoholic beverages". The Registrar considered this design and the one in use by appellant and decided that there was no possibility of confusion arising. Appellant main tains that the decision should be overturned, because it was premature and erroneous in fact and law, and that the opposi tion procedure should he allowed to follow its course.
Held, the appeal is allowed and the matter is referred back to the Registrar for opposition procedure to take its course. The registered trade marks already owned by applicant apply only to a y'rticular type of alcoholic beverage—whisky or Scotch whisky. The design in the new application, however, is to be used for any kind of distilled alcoholic beverage. This informa tion gives rise to two questions. Firstly, as a question of law, can the owner of a trade mark associated with certain specific wares "extend the application" of that mark by securing the right of using for other wares a design primarily intended to display the trade mark previously used by him? Secondly, as a question of fact and law, if applicant intends to use its new design for beverages of the same type as those that have long been marketed by appellant, that is for liqueurs and in particu lar orange liqueurs, would a possibility of confusion not occur between the proposed mark and the appellant's mark? Once such a possibility is admitted, must it not be regarded as constituting an obstacle to the application as submitted? Appel lant's opposition is not futile considered in light of all the information on the record.
APPEAL. COUNSEL:
Hugues Richard for appellant-opponent. Claude Joyal for respondent-applicant and mis -en-cause.
SOLICITORS:
Léger, Robic, Rouleau & Richard, Montreal, for appellant-opponent.
Deputy Attorney General of Canada for respondent-applicant and mis -en-cause.
The following is the English version of the reasons for judgment rendered by
MARCEAU J.: The appellant disputes the deci sion of the mis -en-cause, the Registrar of Trade Marks, who, on April 18, 1977, pursuant to section 37(4) of the Trade Marks Act, R.S.C. 1970, c. T-10, rejected its opposition to respondent's application for registration of a [TRANSLATION] "trade mark and design". Section 37(4)' author izes the Registrar to reject summarily, without a hearing or presentation of evidence, any opposition that appears to him to be futile because prima facie it raises no "substantial issue for decision". Appellant maintains that the summary rejection of its opposition was premature and erroneous both in fact and in law, and that the decision should therefore be set aside and the record returned to the Registrar so that the opposition procedure may follow its normal course. Respondent did not appear before this Court; only the Registrar, as mis -en-cause, disputed the validity of the appeal.
The following facts appear to me to be relevant. The trade mark in question consists of a design that frames and sets off a number of words, in particular the words "Grand Macnish" written in Gothic letters. In December 1975 respondent applied for registration of this design, noting that it had in fact been using the design for some time and describing the wares in association with which it intended to use the design as "distilled alcoholic beverages". On December 23, 1976, appellant filed
'37....
(4) If the Registrar considers that the opposition does not raise a substantial issue for decision, he shall reject it and shall give notice of his decision to the opponent.
a formal opposition to the application for registra tion, after obtaining an extension of the time allowed for doing so. Appellant maintained that the proposed mark, to be used for distilled alcohol ic beverages, could cause confusion with its own mark consisting of the words "Grand Marnier" written in Gothic letters, which had been duly registered and which it had been using for a long time. Appellant based its opposition on the usual grounds, namely: that the mark was not distinctive or likely to become distinctive within the meaning of section 6(2) 2 ; that consequently such a mark was not registrable under section 12(1)(d) 3 ; and that in any case under section 16(1)(a) 4 applicant was not the person who would be entitled to secure its registration. The Registrar considered the oppo sition to be without substance and requested that it be explained. He found the explanations provided to be unsatisfactory, however, and on April 18, 1977 he decided to reject the opposition; it is this decision that is now being appealed. This decision is reproduced here in full, firstly because the entire line of reasoning leading to the conclusion is important, and secondly because the decision sets out a number of facts that should be known if the situation is to be properly assessed. It reads as follows:
z6....
(2) The use of a trade mark causes confusion with another trade mark if the use of both trade marks in the same area would be likely to lead to the inference that the wares or services associated with such trade marks are manufactured, sold, leased, hired or performed by the same person, whether or not such wares or services are of the same general class.
3 12. (1) Subject to section 13, a trade mark is registrable if it is not
(d) confusing with a registered trade mark; ...
16. (1) Any applicant who has filed an application in accordance with section 29 for registration of a trade mark that is registrable and that he or his predecessor in title has used in Canada or made known in Canada in association with wares or services is entitled, subject to section 37, to secure its registra tion in respect of such wares or services, unless at the date on which he or his predecessor in title first so used it or made it known it was confusing with
(a) a trade mark that had been previously used in Canada or made known in Canada by any other person;
Hull, April 18, 1977 384994
Messrs. Robic, Robic & Associates
2100 Drummond Street
Montreal, Quebec
H3G 1X5
Gentlemen:
Re: Trade Mark: GRAND MACNISH & Design
Applicant: Robert Macnish & Company Limited Opponent: Société des Produits Marnier-Lapostolle
Your letter of March 28, 1977 has been considered carefully but your comments do not persuade me that your statement of opposition raises a substantial issue for decision or that the statement should not be rejected under the provisions of s. 37(4) of the Trade Marks Act.
As you probably know the applicant is the registered owner of the following trade mark registrations:
Regn. No.: 191,979
Regn. Date: June 22, 1973
Wares: Whisky
Trade Mark: GRAND MACNISH & Design
Regn. No.: NS 27/7640
Regn. Date: January 4, 1937
Wares: Scotch Whisky
Trade Mark: THE GRAND MACNISH
Regn. No.: NS 191/48646
Regn. Date: December 23, 1953
Wares: Whiskey
Trade Mark: MACNISH
the wares being whisky or scotch whiskey, and the trade mark he now wishes to register is:
[Design of mark] 5
the wares being distilled alcoholic beverages.
In particular your attention is directed to Registration No. 191,979 for the mark GRAND MACNISH & Design in which the initial letters of each word are shown in the gothic style. This mark is based on a date of use in Canada since 1929.
[Design of mark] 5
The mark upon which the opposition is based is shown below:
[Design of mark] 5
5 The design of the mark in question, which is reproduced in the letter, is not necessary for my purposes here.
Concerning the new mark the applicant has not applied and indeed has no need to apply to register or to reregister the expression GRAND MACNISH, the mark in question being an ensemble in which the expression YE AULD FLAGON is given a particular prominence so that my first impression of the marks of the parties as totalities was that each has its own characteris tic flamboyancy and applicant's application, though indexed in the Trade Marks Office as GRAND MACNISH & Design, was not presented for the purpose of registering applicant's "GRAND MACNISH" design, that design having been registered, as noted above, on June 22, 1973, No. 191,979.
The application under consideration is in fact directed to the registration of a trade mark which when regarded as a unitary whole bears not the slightest resemblance to the prospective opponent's trade mark and could not possibly be confused with it. The fact that both marks include a gothic G and M and the word "grand" is not the proper test for determining confusion, the marks must be considered as a whole. Although your letter alleges a likelihood of confusion based on the similarities of the words "Grand",, and the gothic letters G and M in Canada since at least 1929, and that mark has been used in Canada during the same period that the mark on which the opposition is based has been used in Canada.
Assuming the facts alleged by the opponent to be true I find that there is no possibility that the applicant's and opponent's marks are likely to cause confusion in Canada. I find that the proposed opposition could not possibly succeed.
It is therefore my decision that the prospective opposition does not raise a substantial issue and I reject it under the provisions of s. 37(4) of the Act.
Yours truly
R. Carson Registrar of Trade Marks
c.c. Fetherstonhaugh & Co.,
(Dorval)
(Ref: 349-2)
At first reading it seems difficult to fault this decision: the facts reported are clearly set out, the reasoning is logical and the situation as presented certainly appears to correspond with the one
referred to in section 37(4) 6 . If one begins with the assumption that there can be no question of dis puting applicant's right to use the words "Grand Macnish" written in Gothic letters because this right has already been secured, it then becomes clear that the possibility of confusion must be seen in regard to the design as a whole, with all its details and features, and that such a possibility must be said to be non-existent. A closer look, however, reveals that the decision is far from being as satisfactory and convincing as it may at first appear. This is because its basic assumption is questionable, as it apparently fails to take into account a piece of information contained in the record that seems to be fundamental and that tends to put appellant's opposition in an entirely different perspective from that of the Registrar.
Whereas the registered trade marks already owned by applicant apply only to a particular type of alcoholic beverage—namely, whisky and Scotch whisky—the design concerned in the new applica tion for registration is to be used for any kind of distilled alcoholic beverage. In view of the opposi tion submitted, this essential piece of information from the record raises problems that may be reduced to two questions. The first is a question of law: can the owner of a trade mark associated with certain specific wares "extend the application" of that mark by securing the right of using for other wares a design primarily intended to display the trade mark previously used by him? The second is a question both of law and of fact: if applicant intends to use its new design for beverages of the same type as those that have long been marketed by appellant, that is for liqueurs and in particular orange liqueurs, would a possibility of confusion not occur, as the opposition alleged, between the proposed mark and appellant's mark; and once such a possibility is admitted, must it not be regarded as constituting an obstacle to the applica tion as submitted?
6 The interpretation of section 37(4) has been dealt with many times by this Court: see in particular Pepsico Inc., and Pepsi-Cola Canada Ltd. v. Registrar of Trade Marks [1976] 1 F.C. 202; Canadian Tampax Corp. Ltd. v. Registrar of Trade Marks 24 C.P.R. (2d) 187; David Creaghan, Executor of the Estate of Thomas Cyril Creaghan v. The Queen [1972] F.C. 732; Amoco Canada Petroleum Company Ltd. v. Texaco Exploration Canada Ltd. [1976] 1 F.C. 258.
In my view, appellant's opposition was not futile when considered, as it should have been, in light of all the information in the record. It raised ques tions that deserved consideration and could not be resolved without giving appellant an opportunity to present its arguments and introduce evidence if it wished to do so. It is true, as counsel for the Registrar points out, that neither the allegations of the initial opposition nor the subsequent explana tions of these allegations stated clearly the real questions raised by the opposition. This may account for the Registrar's reaction, but the deci sion itself, given summarily after considering only the opposition, may nevertheless be faulted as being based on a premise that failed to take into account all the information in the record.
The appeal is therefore allowed, the decision appealed from is set aside and the record is referred to the Registrar so that the opposition procedure may take its normal course.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.