TLG Canada Corp. v. Product Source International LLC, (2014) 465 F.T.R. 1 (FC)

• Judge: McVeigh, J.
• Court: Federal Court (Canada)
• Case Date: April 01, 2014
• Jurisdiction: Canada (Federal)
• Citations: (2014), 465 F.T.R. 1 (FC);2014 FC 924

TLG Can. Corp. v. Product Source Intl. (2014), 465 F.T.R. 1 (FC)

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[French language version follows English language version]

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Temp. Cite: [2014] F.T.R. TBEd. OC.010

TLG Canada Corp. (applicant) v. Product Source International LLC (respondent)

(T-380-13; 2014 FC 924; 2014 CF 924)

Indexed As: TLG Canada Corp. v. Product Source International LLC

Federal Court

McVeigh, J.

September 29, 2014.

Summary:

Product Source International LLC brought an infringement action against TLG Canada Corp. for selling NIC-OUT (with a hyphen) cigarette filters. NIC OUT (no hyphen) filters were cigarette filters that Product Source registered a trademark for in Canada in 2008. TLG applied to expunge the trademark, contending that Product Source should not have been able to register NIC OUT as the marks were confusing and not distinguishable.

The Federal Court granted the application and expunged the trademark from the Registry. When Product Source registered the trademark NIC OUT, it already knew that the confusing mark NIC-OUT was being used to sell the same product in Canada for at least two years. Product Source was not entitled to register the mark pursuant to s. 18(1)(a) of the Trade-marks Act as the mark was not registerable at the time it registered it. It was not registerable under s. 16(1)(a) as the trademark that Product Source was registering was "a trade-mark that had been previously used in Canada or made known in Canada by any other person", Product Source knew it was being used in Canada, and it was confusing. In addition, the trademark was not distinctive at the time of these proceedings making the registration invalid pursuant to s. 18(1)(b).

Trademarks, Names and Designs - Topic 889.1

Trademarks - Registration - Expungement of mark - Grounds - Loss of distinctiveness (incl. non-distinctiveness) - [See Trademarks, Names and Designs - Topic 889.5 ].

Trademarks, Names and Designs - Topic 889.5

Trademarks - Registration - Expungement of mark - Grounds - Confusion - Product Source International LLC brought an infringement action against TLG Canada Corp. for selling NIC-OUT (with a hyphen) cigarette filters - NIC OUT (no hyphen) filters were cigarette filters that Product Source registered a trademark for in Canada in 2008 - It claimed it first sold NIC OUT cigarette filters in Canada in 2003 - TLG applied to expunge the trademark, contending that Product Source should not have been able to register NIC OUT as the marks were confusing and not distinguishable - The Federal Court expunged the trademark NIC OUT from the Registry - The registration was invalid under s. 18(1)(a) of the Trade-marks Act because it was not registrable on the date it was registered - It was confusing to the NIC-OUT mark (ss. 6, 16(1)) and Product Source knew at the time of the application that the confusing mark NIC-OUT was previously used in Canada by others (s. 16(1)(a)) - Further Product Source knew at the time of the proceedings that the mark NIC OUT was not distinctive (s. 18(1)(b) - See paragraphs 46, 91.

Cases Noticed:

PRV Co. v. Decosol (Canada) Ltd. (1972), 10 C.P.R.(2d) 203 (F.C.T.D.), refd to. [para. 34].

Labatt (John) Ltd. v. Carling Breweries Ltd. (1974), 18 C.P.R.(2d) 15 (F.C.T.D.), refd to. [para. 39].

Havana House Cigar & Tobacco Merchants Ltd. et al. v. Skyway Cigar Store (1998), 147 F.T.R. 54; 81 C.P.R.(3d) 203, rev. in part (1999), 251 N.R. 215; 3 C.P.R.(4th) 501 (F.C.A.), refd to. [para. 40].

Candrug Health Solutions Inc. et al. v. Thorkelson (2007), 312 F.T.R. 13; 2007 FC 411, refd to. [para. 40].

General Motors du Canada et al. v. Décarie Motors Inc. et al., [2001] 1 F.C. 665; 264 N.R. 69 (F.C.A.), refd to. [para. 47].

Emall.ca Inc. et al. v. Cheap Tickets and Travel Inc. (2008), 375 N.R. 350; 2008 FCA 50, refd to. [para. 47].

Masterpiece Inc. v. Alavida Lifestyles Inc., [2011] 2 S.C.R. 387; 416 N.R. 307; 2011 SCC 27, refd to. [para. 49].

Baylor University v. Hudson's Bay Co. (2000), 257 N.R. 231; 8 C.P.R.(4th) 64 (F.C.A.), refd to. [para. 51].

Remo Imports Ltd. v. Jaguar Cars Ltd. et al. (2007), 367 N.R. 177; 2007 FCA 258, refd to. [para. 52].

Veuve Clicquot Ponsardin v. Boutiques Cliquot ltée et al. (2006), 349 N.R. 111; 2006 SCC 23, refd to. [para. 53].

Mattel Inc. v. 3894207 Canada Inc. et al. (2006), 348 N.R. 340; 2006 SCC 22, refd to. [para. 54].

Hughes (W.J.) & Sons "Corn Flower" Ltd. v. Morawiec (1970), 44 Fox Pat. C. 88 (Ex. Ct.), refd to. [para. 57].

United Artists Corp. v. Pink Panther Beauty Corp. et al., [1998] 3 F.C. 534; 225 N.R. 82 (F.C.A.), refd to. [para. 59].

Reynolds Consumer Products Inc. v. P.R.S. Mediterranean Ltd. (2013), 444 N.R. 223; 2013 FCA 119, refd to. [para. 60].

Saputo Groupe Boulangerie v. National Importers Inc. (2005), 275 F.T.R. 207; 2005 FC 1460, refd to. [para. 60].

Lin Trading Co. v. CBM Kabushi Kaisha and Registrar of Trademarks, [1989] 1 F.C. 620; 93 N.R. 321 (F.C.A.), refd to. [para. 65].

Hortilux Schreder B.V. v. Iwasaki Electric Co. (2012), 442 N.R. 310; 2012 FCA 321, refd to. [para. 87].

Statutes Noticed:

Trade-marks Act, R.S.C. 1985, c. T-13, sect. 12(1)(d), sect. 16(1)(a), sect. 18(1) [Appendix].

Authors and Works Noticed:

Fox, Harold G., The Canadian Law of Trademarks and Unfair Competition (4th Ed. 2002), s. 8.6(c) [para. 57].

Gill, Kelly, Fox on Canadian Law of Trademarks and Unfair Competition - see Fox, Harold G., The Canadian Law of Trademarks and Unfair Competition.

Counsel:

Heather Gallant and Nathasha Sutherland, for the applicant, TLG Canada Corp.;

Glen Perinot, for the respondent, Product Source International LLC.

Solicitors of Record:

Duncan Craig LLP, Edmonton, Alberta, for the applicant, TLG Canada Corp.;

Navarrete Perinot PC, Lawyers & Trade-Marks Agents, Woodbridge, Ontario, for the respondent, Product Source International LLC.

This application was heard at Edmonton, Alberta, on April 1, 2014, before McVeigh, J., of the Federal Court, who delivered the following judgment and reasons, dated September 29, 2014, at Ottawa, Ontario.