No Good Times for High Times Respondent in Trade-mark

NO GOOD TIMES FOR HIGH TIMES RESPONDENT IN TRADE-MARK INFRINGEMENT
CASE
*
BARRY GAMACHE
ROBIC, LLP
LAWYERS, PATENT & TRADEMARK AGENTS
A recent decision by Canada’s Federal Court has concluded that a Respondent infringed an
Applicant’s HIGH TIMES trade-mark because of the Respondent’s use of “High Times
Smoke Shop & Gifts” on its store signage (Trans-High Corporation v. Hightimes Smokeshop
and Gifts Inc., 2013 FC 1190 (F.C.), Manson J., November 26, 2013).
Trans-High Corporation (“Trans-High Corporation” or the “Applicant”) is the owner of the
trade-mark HIGH TIMES and its corresponding registration TMA 243,868 for magazines.
Applicant’s HIGH TIMES trade-mark has been used in Canada since as early as 1982. It is
associated with a monthly periodical specializing, according to the evidence, in the “interests
of counterculture, including, but not limited to, the medical and recreational uses of
marijuana”. In its reasons, the Court noted that the use of marijuana is indeed a “strong
focus” of the HIGH TIMES magazine.
The Applicant is also involved in the sale of various wares with the trade-mark HIGH TIMES
affixed thereon. These goods include “ashtrays, lighters, DVDs, tee-shirts and caps” and are
sold in Canadian retail stores, by mail order, at festivals and online. The Applicant has also
been involved with the operation of the www.hightimes.com website since 1996.
The Applicant became aware of the activities of Hightimes Smokeshop and Gifts Inc.
(“Hightimes Smokeshop and Gifts” or the “Respondent”) in the Niagara Falls area, in Ontario,
Canada. The Respondent was incorporated on March 29, 2006. It has operated a retail shop
under the name “High Times Smoke Shop & Gifts”. In its name, the words “High Times” are
given much more prominence than the much smaller words “Smoke Shop & Gifts”. The Court
noted that the parties used very similar fonts in their respective uses of the expression HIGH
TIMES.
The Applicant sued the Respondent for trade-mark infringement and passing off. However,
despite being duly served with the Applicant’s Court documents, the Respondent chose not
to file submissions or appear at the hearing before the Court.
In this context, the Court therefore had to decide whether the Applicant had made out its
case of trade-mark infringement and passing off under Canada’s Trade-marks Act, R.S.C.
© CIPS, 2014.
*
Lawyer with ROBIC, LLP, a multidisciplinary firm of lawyers, andfpatent and trade-mark agents.
Published at (2014), 28:2 World Intellectual Property Report 3-4 under the title High Times for
Established Trade-Mark Holder in Infringement Case in Canada, Publication 142.290.
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1985, c. T-13. At the outset, the Court concluded that while the Respondent’s name was High
Times Smoke Shop & Gifts, the words “High Times” were the prominent and only distinctive
portion of the Respondent’s name.
Under the circumstances, the Court had to determine if the Respondent’s name High Times
was confusing with the Applicant’s registered trade-mark HIGH TIMES. It therefore had to
consider whether, as a matter of first impression, “a casual consumer somewhat in a hurry”
who sees the Respondent’s trade-name or trade-mark, and had no more than an imperfect
recollection of the Applicant’s trade-mark, would be likely to think that the parties’ respective
wares or services originate from the same source. On this issue, the Court applied the test
described by Canada’s Supreme Court in Veuve Clicquot Ponsardin v. Boutiques Cliquot
Ltée, 2006 SCC 23 and Masterpiece Inc. v. Alavida Lifestyles Inc., 2011 SCC 27.
In analysing whether confusion was likely in this specific case, the Court examined all the
relevant surrounding circumstances including those specifically mentioned in section 6(5) of
the Trade-marks Act:
A.
B.
C.
D.
E.
the inherent distinctiveness of the marks or names and the extent to which they
have become known;
the length of time the marks or names have been in use;
the nature of the wares, services or business;
the nature of the trade; and
the degree of resemblance between the trade-marks or trade names in
appearance or sound or in the ideas suggested by them.
The circumstances relating to length of time of use and extent to which the trade-marks at
issue have become known favoured the Applicant. It’s HIGH TIMES trade-mark has been
both registered and used for decades in Canada. Furthermore, it is a well-known trade-mark
in Canada to the “relevant consumers in the counterculture community, both as a magazine
and as a source of related wares and services including smoking accessories”. For its part,
the Respondent’s retail outlet had only been in operation for a relatively short time. No
evidence was provided as to the notoriety of its name.
As for the parties’ respective activities, the Court found a “clear overlap” between the
Applicant’s magazine and its related wares and those sold in the Respondent’s retail store.
Both parties were seen as targeting the same consumers.
Finally, the factor concerning the similarity of the parties’ respective trade-marks clearly
favoured the Applicant.
The Court therefore found that there was sufficient evidence to establish a likelihood of
confusion between the parties’ respective marks. Consequently, the Respondent’s prominent
use of the words “High Times” on its storefront would therefore lead the relevant consumers
to conclude that its activities originated from the Applicant.
The Court accordingly found that the Respondent had infringed the Applicant’s HIGH TIMES
trade-mark, contrary to sections 19 and 20 of the Trade-marks Act and had passed off its
business and wares as being somehow associated or connected with the Applicant’s
business or wares, contrary to section 7(b) of the Trade-marks Act. The Court also awarded
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the Applicant $25,000 as indemnification for the Respondent’s trade-mark infringement and
passing off.
While the Applicant also raised the issue of depreciation of goodwill, the Court concluded that
the evidence was insufficient to make a finding in favour of the Applicant on this issue.
This case illustrates how every trade-mark owner, whatever its field of activity, should be
vigilant to ensure that its trade-mark is protected against infringers who ride on the coattails
of an established reputation. The relevant group of consumers (here, those from the
“counterculture community”) should also be protected against trade-mark confusion, one of
the purposes of the Trade-marks Act.
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For services pertaining to intellectual property, technology and
communication law and related matters (including patent and trade-mark
agency services) as well as legal services.
ROBIC, un groupe d'avocats et d'agents de brevets et de marques de commerce voué
depuis 1892 à la protection et à la valorisation de la propriété intellectuelle dans tous
les domaines: brevets, dessins industriels et modèles utilitaires; marques de
commerce, marques de certification et appellations d'origine; droits d'auteur, propriété
littéraire et artistique, droits voisins et de l'artiste interprète; informatique, logiciels et
ROBIC, LLP
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1001 Square-Victoria - Bloc E - 8th Floor
Montreal, Quebec, Canada H2Z 2B7
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QUEBEC
2828 Laurier Boulevard, Tower 1, Suite 925
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Tel.: +1 418 653-1888 Fax.: +1 418 653-0006
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circuits intégrés; biotechnologies, pharmaceutiques et obtentions végétales; secrets
de commerce, know-how et concurrence; licences, franchises et transferts de
technologies; commerce électronique, distribution et droit des affaires; marquage,
publicité et étiquetage; poursuite, litige et arbitrage; vérification diligente et audit.
ROBIC, a group of lawyers and of patent and trademark agents dedicated since 1892
to the protection and the valorization of all fields of intellectual property: patents,
industrial designs and utility patents; trademarks, certification marks and indications
of origin; copyright and entertainment law, artists and performers, neighbouring
rights; computer, software and integrated circuits; biotechnologies, pharmaceuticals
and plant breeders; trade secrets, know-how, competition and anti-trust; licensing,
franchising and technology transfers; e-commerce, distribution and business law;
marketing, publicity and labelling; prosecution litigation and arbitration; due diligence.
® MD
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LEGER ROBIC RICHARD ®/MD
NOS FENÊTRES GRANDES OUVERTES SUR LE MONDE DES AFFAIRES ®/MD
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