Not All Alcoholic Beverages are Created Equal, Reveals

NOT ALL ALCOHOLIC BEVERAGES ARE CREATED EQUAL, REVEALS
CANADA’S TRADEMARK OPPOSITON BOARD
“In wine there is wisdom, in beer there is Freedom, in water there is bacteria.”
― Benjamin Franklin
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STELLA SYRIANOS
ROBIC, LLP
LAWYERS, PATENT & TRADEMARK AGENTS
In an interesting summary expungement proceeding under section 45 of the Trademarks Act, R.S.C. 1985, c. T-13 (hereafter: the "Act"), involving a trademark
associated with alcoholic beverages, the Trademarks Opposition Board expunged the
mark DA VINCI because its owner failed to prove use its use in association with each
of the goods specified in the impugned registration (Smart & Biggar v. Constellation
Brands Québec, Inc., 2015 COMC 82 (Member Céline Tremblay, April 28, 2015).
Cancellation proceedings in Canada
Section 45 is the Act's "use it or lose it" provision which permits the Registrar of
Trademarks, by way of an administrative cancellation proceeding, to expunge
trademark registrations which are not in use. Following a request made by any third
party, the Registrar will issue a notice requiring that an owner show use of its
registered trademark within a specified time frame or, based on exceptional
circumstances, justify its non-use, failing which such mark will be expunged.
It is trite law that the purpose and the scope of a section 45 proceeding is to provide
for an expeditious procedure for removing “deadwood” from the register. An
overabundance of evidence is unnecessary although sufficient facts must be
presented by the owner to allow the Registrar to conclude that the trademark was
used in association with each of the goods or services mentioned in the registration.
Factual background
© CIPS, 2015.
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Lawyer of ROBIC, LLP, a multidisciplinary firm of lawyers, patent and trade-mark agents. Published
under the title Not All Alcoholic Beverages Are Created Equal, Rules Canada TMOB (2015), 29:6
World Intellectual Property Report 3-4. Publication 142.198.
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On April 5, 2013, at the request of Smart & Biggar (hereafter the “Requesting Party”,
the Registrar addressed a notice under section 45 of the Act to Constellation Brands
Quebec, Inc. (hereafter “Constellation”), owner of the registered trademark DA VINCI
(TMA 303,667)(hereafter the “Mark”). Constellation was therefore tasked with proving
use of the Mark in Canada, between April 5, 2010 and April 5, 2013 (hereafter the
“Relevant Period”), in association with the goods specified in its registration:
“boissons alcoolisées distillées; liqueurs”(“distilled alcoholic beverages; liquors”).
As evidence, Constellation filed the affidavit of Ms. Berberi, Brand Manager at
Constellation. Attached to Ms. Berberi’s affidavit were exhibits comprised of a photo
of a bottle, specimen labels and copies of purchase orders covering the years 1998,
2003, 2004 and 2006 for DA VINCI Amaretto goods. Constellation also filed a
photograph of a DA VINCI wine bottle and related purchase orders for the years 2006
to 2010 for DA VINCI wines. Both parties filed written representations and a hearing
was held on February 10, 2015.
The decision of the Trademarks Opposition Board
During the hearing, Constellation acknowledged its evidence illustrated that sales of
the DA VINCI Amaretto goods had ceased in 2006 and thereafter, only wines were
sold in association with the Mark. Nonetheless, Constellation argued evidence of use
of the Mark in association with “wines” constituted evidence of use in association with
"liqueurs" based on its position that the term "liqueur" as itemised in the statement of
goods "underlies a broad interpretation of a range of alcoholic beverages, of which
wine is an integral part".
Constellation also ultimately acknowledged the absence of evidence of use of the
Mark for “distilled alcoholic beverages”. As the evidence did not show special
circumstances justifying the lack of use, the Opposition Board concluded the goods
identified as “distilled alcoholic beverages” were to be removed from Constellation’s
registration.
The Opposition Board then turned to the issue of whether use of the Mark in
association with “wines” during the relevant period, constituted evidence of use in
association with the goods specified in the registration as “liqueurs”. While
acknowledging that “liqueurs” and “wines” correspond to the general category of
alcoholic beverages, the Opposition Board did not accept Constellation's position that
(i) the French term “liqueurs” encompasses wines on the basis of their affiant’s mere
assertion to that effect in her affidavit and that (ii) as a result, evidence of use of the
Mark in association with “wine” would allow for the maintenance of the registration for
the goods identified as “liqueurs”. To quote: “I will not normally call wine a liqueur”.
In ordering the expungement of the Mark, the Opposition Board took the liberty of
adding it strongly doubted that if the DA VINCI Amaretto goods had been sold during
the Relevant Period, Constellation would have presented these goods as a wine
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rather than a fine liqueur, as indicated on the product label. The Board further stated
Constellation’s interpretation of the registered goods appeared excessive as it would
be akin to allowing evidence of use of the Mark with any alcoholic beverage other
than a liqueur, such as a beer, to maintain the registration for the goods identified as
“liqueurs”.
Conclusion
One of the most noteworthy aspects of this case is the inference that the relationship
between beer, spirits and wine does not provide for an interchangeable application in
all trademark matters. While these types of alcoholic beverages form part of the same
family of goods, a factor which may be sufficient in supporting a claim of confusion, in
a section 45 proceeding the playing field is different in that, even if such goods form
part of the same industry, they are not similar enough to satisfy use requirements
under the Act.
More importantly, this decision serves as a cautionary tale to trademark owners
regarding the level of vigilance required in identifying goods and services in a
registration. It also illustrates the importance of reviewing one’s trademark portfolio
and that in case of doubt, best practices dictate that a trademark owner should take
appropriate measures to ensure its registrations, particularly dated ones, accurately
represent the goods and services associated with its trademarks over the course of a
portfolio’s lifespan.
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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 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,
ROBIC, LLP
www.robic.ca
[email protected]
MONTREAL
1001 Square-Victoria - Bloc E - 8th Floor
Montreal, Quebec, Canada H2Z 2B7
Tel.: +1 514 987-6242 Fax: +1 514 845-7874
QUEBEC
2828 Laurier Boulevard, Tower 1, Suite 925
Quebec, Quebec, Canada G1V 0B9
Tel.: +1 418 653-1888 Fax.: +1 418 653-0006
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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
COPYRIGHTER TM/MC
IDEAS LIVE HERE ®/MD
IL A TOUT DE MÊME FALLU L'INVENTER!
® MD
/
LA MAÎTRISE DES INTANGIBLES ®/MD
LEGER ROBIC RICHARD ®/MD
NOS FENÊTRES GRANDES OUVERTES SUR LE MONDE DES AFFAIRES ®/MD
PATENTER®/MD
or stylizedR®/MD
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or stylized ROBIC +LAW +BUSINESS +SCIENCE +ART®/MD
THE TRADEMARKER GROUP TM/MC
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VOS IDÉES À LA PORTÉE DU MONDE , DES AFFAIRES À LA GRANDEUR DE
LA PLANÈTE®/MD
YOUR BUSINESS IS THE WORLD OF IDEAS; OUR BUSINESS BRINGS YOUR
IDEAS TO THE WORLD ®/MD
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Tel.: +1 418 653-1888 Fax.: +1 418 653-0006
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Tel.: +1 418 653-1888 Fax.: +1 418 653-0006