FOR “GROUND TRANSPORTATION SERVICES”

NO “WHEELS ON THE GROUND” FOR “GROUND TRANSPORTATION
SERVICES” LEADS TO EXPUNGEMENT OF SUPERSHUTTLE TRADEMARK
*
STELLA SYRIANOS
ROBIC, LLP
LAWYERS, PATENT & TRADEMARK AGENTS
In a decision highlighting that for a trademark to be considered “used” in Canada in
association with services they must be offered in Canada, the Federal Court of
Canada upheld the Opposition Board’s decision in an administrative cancellation
proceeding to expunge the SUPERSHUTTLE trademark [Supershuttle International,
Inc. v. Fetherstonhaugh & Co., 2015 FC 1259 (Docket T-2036-14) November 6,
2015].
Background Information
Section 45 of Canada’s Trade-marks Act is the "use it or lose it" provision allowing the
Registrar, via administrative proceedings, to expunge trademark registrations for
marks not in use in Canada. Following a request made by any third party and upon
payment of the prescribed fee, the Registrar gives Notice to the registered Owner of a
trademark to prove use of its registered trademark in Canada with respect to each of
the goods or services specified in the registration, at any time during the three year
period immediately preceding the date of the Notice. Failing to establish use (or justify
its non-use due to special circumstances) may lead to the expungement of the
trademark.
The administrative cancellation proceeding
The SUPERSHUTTLE trademark was registered on December 15, 2003 in
association with “airport passenger ground transportation services” (“Registered
Services”). On February 14, 2012, at the request of Fetherstonhaugh (“Respondent”),
the Registrar of Trade-marks forwarded a Notice to Supershuttle International, Inc.
(“Applicant”) to furnish evidence of use of the SUPERSHUTTLE trademark between
February 14, 2012 and February 14, 2015 (“Material Period”) in association with the
Registered Services.
© CIPS, 2016.
*
Of ROBIC, LLP, a multidisciplinary firm of lawyers, patent and trade-mark agents. Published in the
March 2016 of World Intellectual Property Report. Publication 142.305.
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Applicant’s evidence
In response to the notice, the Applicant filed the affidavit of Ms. Judy Robinson, VicePresident of Regulatory Affairs, which established several facts, including that
approximately 19 million Canadians visited the Applicant’s website during the Material
Period which displayed its trademark, that at least 61,000 Canadians made
reservations for transportation services during the Material Period and that Canadian
tour operators utilized Supershuttle as part of their tour packages offered to
Canadians by providing pre-paid vouchers to over 10,000 individuals.
However, most notably, the evidence also established that while the Applicant
provides approximately 8 million airline passengers worldwide with ground
transportation to and from airports in the United States and France and that
approximately 1,200 vans in the United States display the SUPERSHUTTLE
trademarks, the Applicant did not operate vans in Canada during the Material Period.
Opposition Board decision
Hearing Officer Andrew Bene (“Officer”) had to decide if the advertisement of the
Applicant’s services and their use by Canadians was sufficient to constitute use of the
SUPERSHUTTLE trademark in Canada within the meaning of the Trade-marks Act.
Based on the evidence and the Registered Services in issue, the lack of “wheels on
the ground” in Canada during the Material Period ultimately proved fatal for the
Applicant.
The Applicant argued that while it did not operate airport shuttle vans in Canada
during the Material Period, the Officer should give a broad interpretation to “airport
passenger ground transportation services” and accept that these registered services
should include “airport passenger ground transportation reservation and ticketing
services” (emphasis added) in so far as Canadians had the ability to reserve the
Applicant’s services in Canada.
Based on his review of the Federal Court jurisprudence, the Officer held that
advertising in Canada for a service that was not available for performance in Canada
was insufficient to support the requisite use criteria. The fact that Canadians were
only allowed to book the Applicant’s Registered Services in Canada was not
tantamount to the Registered Services being offered in Canada. Notably, the Officer
opined that since “reservation services” were not included in the Registered Services,
the SUPERSHUTTLE trademark could not be maintained based solely on the
reservation services being available in Canada.
Appeal before the Federal Court
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On appeal, the Applicant questioned if the offering an essential step in the
performance of the service, including the provision of a benefit to consumers,
occurring in Canada, constituted “use” of a trademark in Canada with the service. The
Applicant submitted the Officer ignored the jurisprudence that states “services” should
be given a liberal interpretation in that a service only requires that Canadian
consumers receive a benefit from the activity and that this activity may be ancillary to
the registered services. In addition, the Applicant contended that a narrow
interpretation of “services” led to an unreasonable result given that the purpose of a
summary cancellation action is to remove “deadwood” from the Register. In this case,
the Applicant argued that its method of reservations involved Canadian consumers
viewing the SUPERSHUTTLE trademark in Canada on its website and that
Canadians had made reservations in Canada for the Applicant’s transportation
services.
The Court noted that while “services” are not defined in the Trade-marks Act and
generally, are to be given a liberal interpretation without distinction between, primary,
incidental or ancillary services, so long as Canadians receive a benefit from the
activity, such an interpretation is not unlimited. Therefore, even though individuals on
their computers in Canada may observe a trademark, the services registered in
association therewith must still be offered in Canada.
As the use of a trademark is decided on a case by case basis and in applying the
reasonableness standard of review, the Court dismissed the appeal having decided
that the Officer’s conclusion was reasonable in light of the evidence before him and
his application of the relevant jurisprudence.
Conclusion
This decision falls squarely in line with the established jurisprudence regarding the
two-pronged test for proving use of a trademark in association with services: the
advertisement of the trademark in Canada is not enough─ the advertised services
must also be available for performance in Canada. However, it may nonetheless be
viewed as instructive for trademark professionals in that it reminds them of how “it all
starts with the contents of an application”. Had the impugned mark been registered in
association with “reservation and ticketing services for ground transportation” the
Applicant may have faced a different outcome. [Nota: A fresh application was filed for
the SUPERSHUTTLE mark on May 6, 2015 in association with “reservation services
for ground transportation; software enabling the tracking of travel reservations,
advertising of transportation services”. An examiner’s report was issued and a
response is due on May 25, 2016.].
Hence trademark practitioners are best advised to vigilantly contemplate a description
of services from the prism of “use” requirements and adopt a proactive approach with
applicants in describing their services at the filing stage of an application.
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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, LLP
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MONTREAL
1001 Square-Victoria - Bloc E - 8th Floor
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2828 Laurier Boulevard, Tower 1, Suite 925
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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 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, knowhow, 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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IDEAS LIVE HERE ®/MD
IL A TOUT DE MÊME FALLU L'INVENTER!
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/
LA MAÎTRISE DES INTANGIBLES ®/MD
LEGER ROBIC RICHARD ®/MD
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PATENTER®/MD
or stylizedR®/MD
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Tel.: +1 418 653-1888 Fax.: +1 418 653-0006
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Trade-marks of ROBIC, LLP for its services pertaining to intellectual
property, technology and communication law and related matters
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services
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Montreal, Quebec, Canada H2Z 2B7
Tel.: +1 514 987-6242 Fax: +1 514 845-7874
QUEBEC
2828 Laurier Boulevard, Tower 1, Suite 925
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Tel.: +1 418 653-1888 Fax.: +1 418 653-0006