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A-170-79
Commissioner of Patents and the Minister of Consumer and Corporate Affairs (Appellants) (Respondents)
v.
Goodyear Tire & Rubber Company (Respondent) (Applicant)
Court of Appeal, Pratte, Ryan and Le Dain JJ.— Ottawa, March 26 and 30, 1979.
Patents — Industrial design Prerogative writs — Man- damus — Appeal from decision of Trial Judge granting mandamus on application requiring registration of design pur suant to Industrial Design Act — Mandamus application brought following examiner's request for supplementary infor mation and his rejection of submission that this request be withdrawn — Trial Judge accepting argument that registra tion only be refused because of design's being identical with or closely resembling another design already registered so as to be confounded with it — Whether or not application for mandamus should be rejected — Industrial Design Act, R.S.C. 1970, c. I-8, ss. 3, 4, 5, 6, 7.
This is an appeal from a judgment of the Trial Division directing the issue of a writ of mandamus requiring the two appellants, who are responsible for the administration of the Industrial Design Act to register under that Act the design submitted by the respondent "unless he or they find the said design to be identical with or so closely to resemble any other design already registered as to be confounded therewith." An examiner from the Commissioner of Patents' office had requested supplementary information from respondent before making his determination as to registration and rejected its submissions that this request be withdrawn. The Trial Judge upheld respondent's argument that the only ground on which registration of a design could be refused was that it was identical with or closely resembled another design already registered.
Held, the appeal is allowed.
Per Pratte J.: Respondent, when it applied for a mandamus against the appellants, was seeking to enforce the duty imposed on the Minister by section 6 of the Act. The duty imposed by that section, however, relates only to industrial designs which are the only designs that are registrable under the Act; it does not relate to every design that may be submitted for registra tion. When an application is made for registration of a design, the Minister must determine, first, whether the design in question is an industrial design, and, second, whether it is an industrial design that he has a duty to register pursuant to section 6. The purpose of the questions put by the examiner to the respondent was to obtain information that would enable him to determine whether the respondent's design was an industrial design since a design which is not to be applied to the ornamentation of an article is not an industrial design within
the meaning of the Act. A design which is not, by reason of its purely functional character, an industrial design is not a design "within the provisions of this Part". The registration of such a design may be refused by the Minister.
Also, per Le Dain J.: The qualities required for valid regis tration have been deduced by judicial affirmation from the language of the Act. It was not intended that the Minister should be obliged to register designs which in his opinion are not designs as defined by judicial decisions which speak of what may and may not be registered. What is contemplated is not merely the application of the explicit, formal requirements of the Act but the exercise of some judgment which is what the question of the proper subject matter is, as determined in the light of judicial decisions. It is a power of refusal which the Minister may or may not exercise according to his judgment and necessarily implies the power or right to satisfy himself by examination that a design is a proper subject matter for registration. The appeal to the Governor in Council is not the only recourse open to applicant from a refusal to register. Since the latter words of section 22 of the Industrial Design Act clearly confer a jurisdiction to expunge the registration of a design that is not properly the subject matter for registration, the former words confer a jurisdiction to order registration of a design which has been refused registration on such a ground.
APPEAL. COUNSEL:
H. Erlichman and Leslie Holland for appel lants (respondents).
D. F. Sim, Q.C. and John Macera for respondent (applicant).
SOLICITORS:
Deputy Attorney General of Canada for
appellants (respondents).
Donald F. Sim, Q. C., Toronto, for respondent
(applicant).
The following are the reasons for judgment delivered orally in English by
PRATTE J.: This is an appeal from a judgment of the Trial Division [[1979] 2 F.C. 401] directing the issue of a writ of mandamus requiring the two appellants, who are responsible for the administra tion of the Industrial Design Act, R.S.C. 1970, c.
I-8, to register under that Act the design submit ted by the respondent "unless he or they find the said design to be identical with or so closely to resemble any other design already registered as to be confounded therewith."
On June 14, 1978, the respondent applied under the Industrial Design Act' for the registration of a design for a tire. That application was considered by an examiner from the Commissioner of Patents' office who wrote the applicant on July 6, 1978, in the following terms:
The application cited above has been reached for examination.
Applications for an industrial design that pertain merely to functional or utilitarian features of an article, and do not indicate any evident visual features are not registrable.
From what is disclosed in the drawings the design looks as though it may be entirely utilitarian and without visual appeal. In order to assist the examiner, the applicant is requested to answer the following questions, so that a proper evaluation may be made as to whether the design is solely functional or whether there are visual features which merit registration.
1. What is the purpose of each element of the design?
' Sections 3 to 7 of that Act are relevant to the decision of this case. They read as follows:
3. The Minister shall cause to be kept a book called the Register of Industrial Designs for the registration therein of industrial designs.
4. The proprietor applying for the registration of any design shall deposit with the Minister a drawing and descrip tion in duplicate of the design, together with a declaration that the design was not in use to his knowledge by any other person than himself at the time of his adoption thereof.
5. On receipt of the fee prescribed by this Act in that behalf, the Minister shall cause any design for which the proprietor has made application for registry to be examined to ascertain whether it resembles any other design already registered.
6. The Minister shall register the design if he finds that it is not identical with or does not so closely resemble any other design already registered as to be confounded therewith; and he shall return to the proprietor thereof one copy of the drawing and description with the certificate required by this Part; but he may refuse, subject to appeal to the Governor in Council, to register such designs as do not appear to him to be within the provisions of this Part or any design that is contrary to public morality or order.
7. (1) On the copy of the drawing and description returned to the person registering, a certificate shall be given signed by the Minister or the Commissioner of Patents to the effect that such design has been duly registered in accord ance with this Act.
(2) Such certificate shall show the date of registration including the day, month and year of the entry thereof in the proper register, the name and address of the registered proprietor, the number of such design and the number or letter employed to denote or correspond to the registration.
(3) The said certificate, in the absence of proof to the contrary, is sufficient evidence of the design, of the original ity of the design, of the name of the proprietor, of the person named as proprietor being proprietor, of the commencement and term of registry, and of compliance with this Act.
2. Identify the visual features if any which the design has beyond those necessary to enable it to fulfil its purpose?
3. Does the article have any utilitarian advantages over prior articles intended for the same purpose? If so, what are those advantages?
4. Does the shape of the article result in any advantages in the apparatus or methods used in manufacturing the article?
5. Have any patent applications been filed or patents issued for the article in question? If so, copies should be provided (to be kept in confidence if the document is a pending patent application).
6. Is there any advertising or promotional material in respect of the article? If so, such material should be submitted.
Further action to register this design can only be taken upon receipt of complete answers to the above questions, and an indication that the design applied for contains visual features beyond those necessary for the article to fulfil its function.
Failure to reply to this action on/or before January 8, 1979, will result in this application being placed in the inactive files.
On October 30, 1978, the respondent's solicitors wrote to the Commissioner of Patents asking him to withdraw that request for additional informa tion which, it was submitted, the examiner had no authority to make since his sole duty, under the Act, is to determine whether the design submitted for registration "is not identical with or does not so closely resemble any other design already regis tered as to be confounded therewith".
The examiner rejected the respondent's submis sions and reiterated his request for supplementary information. The respondent then made the application for a writ of mandamus which was granted by the judgment under attack.
It should be stressed at this point that the respondent's grievance against the examiner was neither that the examiner had failed to decide in the light of the material submitted to him whether or not to register the design, nor that the validity of the registration of a design could not be affected by its purely functional character. 2 The respon dent's position was merely that the examiner had erred when he had claimed to have the right to refuse to register the respondent's design on the ground that it was purely functional and did not
2 Counsel for the respondent expressly acknowledged during the hearing of this appeal that the registration of a design which is purely functional and has no ornamental features is invalid.
involve any ornamental features. According to the respondent, the only ground on which the registra tion of a design could be refused was that it was identical with or closely resembled another design already registered. That position was upheld by the Judge of First Instance for reasons that he expressed as follows [at pp. 404-405]:
The issue is whether, under the Act, the Minister is author ized to make the determination that the design is or is not a proper subject matter for registration and whether it had been published more than a year before. In my view, he is not so authorized. Certainly, he is not expressly required to do so.
If the Minister refuses registration, the appeal from that refusal lies to the Governor in Council under section 6. If he registers a design that, for some reason, ought not to have been registered, the authority to expunge lies in this Court under section 22. It is, I think, obviously to be preferred that ques tions such as whether a design is a proper subject matter of registration or whether and when it was published be finally disposed of in a conventional forum. Without suggesting it could not be done, I have some difficulty envisaging the me chanics of the Governor in Council dealing with the appeal in, for example, the Cimon case, had it ensued upon the Minister's determination that the design of the sofa in issue was not a proper subject matter of registration.
The certificate that issues upon registration is prima facie, not conclusive, evidence of compliance with the Act. The registration is valid for, at most, ten years. Finally, section 28 provides:
28. Where any industrial design in respect of which application for registry is made under this Act is not regis tered, all fees paid to the Minister for registration shall be returned to the applicant or his agent, less the sum of two dollars, which shall be retained as compensation for office expenses.
Parliament envisaged $2 as compensation for the Minister's office expenses in the processing of an unsuccessful application. Even taking account of inflation, that was not a great deal of money when Parliament prescribed it.
The whole scheme of the Act is simply not consistent with the assumption by the Minister of a duty to undertake an elaborate, extensive and costly inquiry in the processing of an application. Parliament intended that he limit his examination to the matters expressly required by sections 4, 5 and 6. The questions posed by the examiner have nothing at all to do with any of the matters with which the Minister is required to deal in determining whether or not the applicant is entitled to have the design registered.
I regret to say that these reasons do not convince me. I am rather of the view that the appeal should succeed and that the respondent's application for mandamus should be rejected.
When it applied for a mandamus against the appellants, the respondent was seeking to enforce the duty imposed on the Minister by section 6 of the Act, the first part of which reads as follows:
6. The Minister shall register the design, if he finds that it is not identical with or does not so closely resemble any other design already registered as to be confounded therewith;
The duty imposed by that section, however, relates only to industrial designs which are the only designs that are registrable under the Act (see section 3); it does not relate to every design that may be submitted for registration. - When an application is made for registration of a design, the Minister must, in my view, determine, first, wheth er the design in question is an industrial design, and, second, whether it is an industrial design that he has the duty to register pursuant to section 6. As I understand the questions put by the examiner to the respondent, their purpose was to obtain information that would enable him to determine whether the respondent's design was an industrial design since, in my view, a design which is not to be applied to the ornamentation of an article is not an industrial design within the meaning of the Act. 3
This view is confirmed by the last part of section 6 which expressly empowers the Minister to
... refuse, subject to appeal to the Governor in Council, to register such designs as do not appear to him to be within the provisions of this Part or any design that is contrary to public morality or order. 4
A design which is not, by reason of its purely functional character, an industrial design is not a design "within the provisions of this Part". The registration of such a design may, therefore, be refused by the Minister.
For these reasons, I would allow the appeal, set aside the decision of the Trial Division and dismiss the respondent's application with costs both in this Court and in the Trial Division.
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3 See Cimon Limited v. Bench Made Furniture Corp. [1965] 1 Ex.C.R. 811 at 830 et seq.
° That part of section 6 has its origin in a pre-confederation statute of the old Province of Canada, chapter 21 of the Statutes of Canada, 1861. Section 27 of that Act reads as follows:
27. The said Secretary shall have power to refuse to register such designs as do not appear to him to be within the provisions of this Act, as of a thing not intended to be applied to an article of manufacture, but only as a wrapper, label or covering, in which an article might be exposed for sale, or when the design is contrary to public morality or order, subject, however, to appeal to the Governor in Council.
RYAN J. concurred.
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The following are the reasons for judgment delivered orally in English by
LE DAIN J.: I agree that the appeal should be allowed for the reasons given by my brother Pratte but because of the difficulty I have experienced I should like briefly to indicate the view that I have formed of the issue.
The examiner has requested certain information of the applicant for registration of an industrial design to determine "whether the design is solely functional or whether there are visual features which merit registration" and has indicated that if the information is not provided the application will be "placed in the inactive files". The applicant contends in effect that the Minister is not empow ered by the Industrial Design Act, R.S.C. 1970, c. I-8, to refuse to register a design on the ground that it is solely functional and that he is, therefore, exceeding his statutory authority in causing the examiner to make such an inquiry. The applicant relies particularly, as I understand the thrust of its argument, on sections 4, 5 and 6 of the Act as indicating what the Act contemplates as the scope of the examination to be made and the matters to be considered by the Minister. Section 4 requires the applicant to deposit with the Minister "a draw ing and description in duplicate of the design, together with a declaration that the design was not in use to his knowledge by any other person than himself at the time of his adoption thereof'. Sec tion 5 provides that the Minister "shall cause any design for which the proprietor has made applica tion for registry to be examined to ascertain whether it resembles any other design already registered". Section 6 provides that the Minister "shall register the design if he finds that it is not identical with or does not so closely resemble any other design already registered as to be confound ed therewith ...". From these provisions the appli cant argues that the scope of the examination contemplated by the Act and the duty of the Minister are confined to determining whether the design resembles any other design already regis tered. But section 6 goes on to provide that the Minister "may refuse, subject to appeal to the Governor in Council, to register such designs as do not appear to him to be within the provisions of
this Part or any design that is contrary to public morality or order". The question, as I see it, is whether the words "within the provisions of this Part" contemplate grounds on which the courts have held that a design is not registrable.
After considerable difficulty I have come to the conclusion that they must be so construed. The Act does not contain a definition of industrial design, but drawing on certain language of the Aët the courts have affirmed requirements for valid registration. In Clatworthy & Son Limited v. Dale Display Fixtures Limited [1929] S.C.R. 429, for example, the Supreme Court of Canada held that the provision which is now section 7(3) of the Act indicated that to be entitled to registration a design must be original. In Cimon Limited v. Bench Made Furniture Corporation [1965] 1 Ex.C.R. 811, the Exchequer Court held that sec tion 11 of the Act indicated that to be entitled to registration a design must be one that is applied to the ornamenting of an article. These qualities required for valid registration have been deduced from the language of the Act and as such indicate the kind of designs that are within the provisions of Part I of the Act which create the right to registration and the protection afforded by it. I cannot think it was intended that the Minister should be obliged to register designs which in his opinion are not designs as defined by judicial decisions which speak of what may and may not be registered. The quotation from In re Clarke's Design [[1896] 2 Ch. 38, at p. 42], for example, at page 435 of the Clatworthy case speaks of designs "which have escaped the vigilance of the comp troller and been improperly registered". The words "as do not appear to him" in section 6 suggest that what is contemplated is not merely the application of the explicit, formal requirements of the Act but the exercise of some judgment which is what the question of proper subject matter is, as determined in the light of the judicial decisions. It is a power of refusal which the Minister may or may not exercise according to his judgment. As such it necessarily implies in my opinion the power or right to satisfy himself by examination that a design is a proper subject matter for registration.
Much was made in argument of the provision in section 6 of the Act of an appeal to the Governor in Council as indicating the kind of objection to registration that must be contemplated. On any view of the requirements contemplated by the words "within the provisions of this Part" an appeal to the Governor in Council on subject matter of this kind is a curious remedy in this day and age. But there appears to have been an assumption that this appeal would be the only recourse open to the applicant from a refusal to register. I do not so read the provisions of the Act. The words "subject to appeal to the Governor in Council" create a right of appeal but not in lan guage that would exclude, or even make such an appeal a condition precedent to the exercise of, the recourse provided by section 22 of the Act. That section provides a recourse to the Federal Court from "any omission, without sufficient cause, to make any entry in the register of industrial designs," or from "any entry made without suffi cient cause in any such register". Since the latter words clearly confer a jurisdiction to expunge the registration of a design that is not a proper subject matter for registration I cannot see why the former words do not confer a jurisdiction to order regis tration of a design which has been refused regis tration on such a ground. It appears to have been taken for granted by the Exchequer Court in Rose v. Commissioner of Patents [1935] Ex.C.R. 188 that the recourse provided by what was then sec tion 45 of the Trade Mark and Design Act, R.S.C. 1927, c. 201 and is now section 22 was the appro priate recourse for a refusal to register, although it was held in that case that the recourse could not be brought by way of motion.
Some stress in argument was also laid on the requirement in section 14 of the Act that a design be registered within one year from publication in Canada as indicating the kind of ground of refusal to register that must be contemplated by section 6. I do not find this argument convincing. As much time, it seems to me, may be consumed by a refusal to register on the ground that a design so closely resembles another design as to be con founded with it, and by the ensuing recourse from such refusal, as by a refusal to register on the ground that the design is not an industrial design within the contemplation of the Act.
In conclusion, then, I am of the opinion that in causing the examiner to consider whether the design was purely functional or whether it had visual features which merit registration the Minis ter was not exceeding his statutory authority, and mandamus will therefore not lie to compel him to consider the application for registration without regard to this question.
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