Judgments

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T-1738-86
Playboy Enterprises Inc. (Appellant)
v.
Michel "Mike" Germain (Respondent)
INDEXED AS: PLAYBOY ENTERPRISES INC. V. GERMAIN
Trial Division, Pinard J.—Ottawa, June 18 and July 9, 1987.
Trade marks — Expungement — Non-user — "Playboy Men's Hair Stylist" trade mark — Special circumstances excusing absence of use — Quebec Charter of the French Language imposing use of French only in commercial advertis ing — Pressure by civic officials to use French — Contrary to public policy to permit adherence to statute to imperil validity of trade mark.
Following a section 44 request for evidence of use, by the respondent, of the trade mark "Playboy Men's Hair Stylist", the Chairman of the Opposition Board found that the trade mark had not been used for the last three years before the respondent received the notice from the Registrar. He also found, however, that this absence of use could be explained and excused by special circumstances and that the trade mark should not be expunged from the register. This is an appeal from that decision.
Held, the appeal should be dismissed.
There were special circumstances excusing the respondent's absence of use of his trade mark. In the context of the Charter of the French Language, there was pressure from civic officials of the City of Hull to require the registrant to adopt a French version of his trade mark. Thus external forces were brought to bear against the respondent in respect of his use of the trade mark and his adoption of a French translation for the operation of his hair styling business.
It would be contrary to public policy to permit adherence to one statute, under the circumstances of this particular case, to imperil the validity of a trade mark. It is also quite clear that the respondent always intended to use the trade mark, as evidenced by the use of the key word "Playboy" in the French translation.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Charter of the French Language, R.S.Q. 1977, c. C-11, s. 58.
Regulations respecting the language of commerce and business, c. C-11, r. 9, s. 16(b).
Trade Marks Act, R.S.C. 1970, c. T-10, ss. 2, 4(2), 44 (as am. by S.C. 1984, c. 40, s. 70).
CASES JUDICIALLY CONSIDERED
APPLIED:
Registrar of Trade Marks v. Harris Knitting Mills Ltd. (1985), 4 C.P.R. (3d) 488 (F.C.A.); Labatt (John) Ltd. v. The Cotton Club Bottling Co. (1976), 25 C.P.R. (2d) 115 (F.C.T.D.).
COUNSEL:
Nicholas H. Fyfe, Q.C. and Donald F. Phenix
for appellant.
Macey Schwartz for respondent.
SOLICITORS:
Smart & Biggar, Ottawa, for appellant. Macey Schwartz for respondent.
The following are the reasons for order ren dered in English by
PINARD J.: This is an appeal by the appellant Playboy Enterprises Inc. from a decision rendered May 30, 1986 on behalf of the Registrar of Trade Marks pursuant to section 44 of the Trade Marks Act, R.S.C. 1970, c. T-10 [as am. by S.C. 1984, c. 40, s. 70], wherein the Chairman of the Opposi tion Board decided that the trade mark "Playboy Men's Hair Stylist" ought not to be amended or expunged.
The respondent is recorded since December 14, 1979 as the owner in Canada of trade mark regis tration number 238,157 for the trade mark "Play- boy Men's Hair Stylist" in association with ser vices identified as "un salon de coiffure pour hommes". In response to a request from the appel lant, the Registrar of Trade Marks, on January 30, 1985 issued a notice pursuant to section 44 of the Trade Marks Act, addressed to the respondent. In response to that notice, the respondent furnished his own affidavit, dated April 30, 1985. Following receipt of that affidavit, an oral hearing was held at which both the appellant and respondent were represented.
On the basis of the evidence contained in the respondent's affidavit, the Chairman of the Oppo sition Board, on behalf of the Registrar, decided that the respondent had shown use of its registered trade mark "Playboy Men's Hair Stylist" in Canada prior to the end of 1980, but that the trade
mark had not been used by the respondent from 1981 to January 30, 1985, being the date of issu ance of the section 44 notice.
On the basis of evidence contained in the same affidavit, it was further decided that the respon dent's non-use of the trade mark could be explained by unusual, uncommon or exceptional circumstances, that these special circumstances excused the absence of use by the respondent of its registered trade mark and that registration No. 238,157 ought not be expunged from the register.
The appellant states that in both fact and law, the Chairman of the Opposition Board erred in concluding that the circumstances described by the respondent in his affidavit constituted special cir cumstances which excused non-use by the regis trant of its registered trade mark "Playboy Men's Hair Stylist" from 1981 to January 30, 1985. Accordingly, the appellant states that "the Regis trar erred in not ordering that trade mark registra tion number 238,157 for the trade mark `Playboy Men's Hair Stylist' be expunged." Therefore, the appellant seeks an order allowing this appeal and directing that "Playboy Men's Hair Stylist" Registration No. 238,157 be expunged from the register of trade marks.
In reply to the notice of appeal, the respondent essentially states that on the basis of the evidence contained in his affidavit dated April 30, 1985, the Chairman of the Opposition Board was correct in holding that special circumstances existed which excused the absence of use by the registrant of his trade mark as of the date of the section 44 notice. Beyond that affidavit, further evidence was put before me on appeal by way of an additional affidavit by the respondent, dated September 25, 1986. On the basis of the evidence contained in the latter affidavit, the respondent states that since May of 1985 he has ensured that all advertising used in relation to "un salon de coiffure pour hommes" at 33 Gamelin Boulevard in the City of Hull, Quebec, uses the English words "Men's Hair Stylist" with the word "Playboy" as well as the French words "coiffure pour hommes"; the respondent also states that during the summer of 1986, he was warned by the Commission de Pro-
tection de la Langue Française of the Government of Quebec not to use the English words; finally, this last affidavit refers to section 58 of chapter VII of the Charter of the French Language, a statute of the Province of Quebec (Revised Stat utes of Quebec, 1977, c. C-11) and to paragraph 16(b) of the Regulations respecting the language of commerce and business [c. C-11, r. 9] passed pursuant to various sections of the said chapter VII of the Charter. Those provisions [as referred to] state as follows:
S. 58
Except as may be provided under this act or the regulations of the Office de la langue française, signs and posters and commercial advertising shall be solely in the official language.
N.B. Section 1 states that French is the official language of Quebec.
16. The following may appear exclusively in one or several languages other than French on signs and posters, in commer cial advertising and in inscriptions relating to a product as well as in any other document:
(b) a trade mark recognized within the meaning of the Trade Marks Act (R.S.C., 1970, c. T-10) before 26 August 1977;
Consequently, the sole issue in this appeal is whether the registrant (the respondent) has satis fied the requirements of section 44 of the Trade Marks Act and has shown that special circum stances existed excusing the absence of use of the trade mark "Playboy Men's Hair Stylist" since 1981.
The relevant provisions of the Trade Marks Act state as follows:
2. In this Act
"use" in relating to a trade mark, means any use that by section 4 is deemed to be a use in association with wares or services;
4....
(2) A trade mark is deemed to be used in association with services if it is used or displayed in the performance or advertis ing of such services.
44. (I) The Registrar may at any time and, at the written request made after three years from the date of the registration by any person who pays the prescribed fee shall, unless he sees good reason to the contrary, give notice to the registered owner requiring him to furnish within three months an affidavit or
statutory declaration showing with respect to each of the wares or services specified in the registration, whether the trade mark is in use in Canada and, if not, the date when it was last so in use and the reason for the absence of such use since such date.
(2) The Registrar shall not receive any evidence other than such affidavit or statutory declaration, but may hear represen tations made by or on behalf of the registered owner of the trade mark or by or on behalf of the person at whose request the notice was given.
(3) Where, by reason of the evidence furnished to him or the failure to furnish such evidence, it appears to the Registrar that the trade mark, either with respect to all of the wares or services specified in the registration or with respect to any of such wares or services, is not in use in Canada and that the absence of use has not been due to special circumstances that excuse such absence of use, the registration of such trade mark is liable to be expunged or amended accordingly.
(4) When the Registrar reaches a decision as to whether or not the registration of the trade mark ought to be expunged or amended, he shall give notice of his decision with the reasons therefor to the registered owner of the trade mark and to the person at whose request the notice was given.
(5) The Registrar shall act in accordance with his decision if no appeal therefrom is taken within the time limited by this Act or, if an appeal is taken, shall act in accordance with the final judgment given in such appeal.
At this stage, it is appropriate to recall that the absence of use that must be excused is the absence of use that occurred before the owner received the section 44 notice; in Registrar of Trade Marks v. Harris Knitting Mills Ltd. (1985), 4 C.P.R. (3d) 488 (F.C.A.), Pratte J. said, at pages 492-493:
[TRANSLATION] Under section 44, where it appears from the evidence furnished to the Registrar that the trade mark is not in use, the Registrar must order that the registration of the mark be expunged unless the evidence shows that the absence of use has been "due to special circumstances that excuse such absence of use". The general rule is thus that absence of use of a mark is penalized by expungement. For an exception to be made to this rule, it is necessary, under subsection 44(3), for the absence of use to be due to special circumstances that excuse it. With regard to this provision, it should be noted first that the circumstances it mentions must excuse the absence of use in the sense that they must make it possible to conclude that, in a particular case, the absence of use should not be "punished" by expungement. These circumstances must be "special" (see John Labatt v. The Cotton Club Bottling Co. (1976), 25 C.P.R. (2d) 115) in that they must be circumstances not found in most cases of absence of use of a mark. Finally, these special circumstances that excuse the absence of use must, under subsection 44(3), be circumstances to which the absence of use is due. This means that in order to determine whether the absence of use should be excused in a given case, it
is necessary to consider the reasons for the absence of use and determine whether these reasons are such that an exception should be made to the general rule that the registration of a mark that is not in use should be expunged. I would add, finally, that the absence of use that must thus be excused is the absence of use before the owner receives the notice from the Registrar.
In the present case, it appears that the Chair man of the Opposition Board based his finding that special circumstances existed excusing the absence of use of the trade mark "Playboy Men's Hair Stylist" since 1981 on paragraphs 18 to 21 of the respondent's affidavit dated April 30, 1985. The relevant part of his decision reads as follows:
Having regard to the registrant's evidence, 1 am satisfied that the registrant has provided a sufficient showing of use of its trade mark PLAYBOY MEN'S HAIR STYLIST in Canada in association with "un salon de coiffure pour hommes" prior to the end of 1980. Further, I do not consider that the use by the registrant or his registered user of the trade marks PLAYBOY POUR LUI or PLAYBOY COIFFURE POUR HOMMES constitute use of the registered trade mark PLAYBOY MEN'S HAIR STY LIST sufficient for me to conclude that the trade mark was in use as of January 30, 1985, the date of the section 44 notice. However, the trade mark agent for the registrant at the oral hearing asserted that the registrant is relying upon special circumstances to excuse the absence of use of the registered trade mark as of the date of the section 44 notice.
The Germain affidavit establishes that the registrant has not used his registered trade mark for a period of just in excess of three years in association with the services specified in his registration. Further, I am satisfied that the reasons given by Mr. Germain explaining the absence of use of the trade mark PLAYBOY MEN'S HAIR STYLIST in association with "un salon de coiffure pour hommes" could be characterized as unusual, uncommon or exceptional and arise from forces external to the voluntary acts of the registrant. In particular, the misunder standing by the registrant of the provisions of Bill 101 of the Charter of the French Language and, more importantly, the pressure from civil officials of the City of Hull to require the registrant to adopt a French version of his trade mark in association with his commercial advertising in the Province of Quebec would point to external forces which were brought to bear against the registrant in respect of his use of the trade mark PLAYBOY MEN'S HAIR STYLIST and his adoption of a French translation of the trade mark in respect of his operation of "un salon de coiffure pour hommes" in the Province of Quebec.
In concluding that external forces exist in the present situation, I am mindful of the fact that the registrant is not a large company or organization which might have been in a position to resist the pressure brought to bear against it by municipal
officials. In view of the above, I have concluded that special circumstances exist in the present instance which excuse the absence of use by the registrant of its registered trade mark PLAYBOY MEN'S HAIR STYLIST as of the date of the section 44 notice and that the registration ought therefore to be maintained.
I agree with the Chairman of the Opposition Board when he finds that the pressure from civil officials of the City of Hull to require the regis trant to adopt a French version of his trade mark, in the context of the Charter of the French Lan guage, "would point to external forces which were brought to bear against the registrant in respect of his use of the trade mark PLAYBOY MEN'S HAIR STYLIST and his adoption of a French translation of the trade mark in respect of his operation of `un salon de coiffure pour hommes' in the Province of Quebec." That conclusion is entirely based on the evidence contained in the respondent's affidavit dated April 30, 1985, and clearly excuses absence of use prior to the section 44 notice by the Registrar.
Furthermore, such finding is in accordance with the meaning given to the words "special circum stances", in subsection 44 of the Trade Marks Act, by Pratte J., in the Harris Knitting Mills case, supra, at page 492 where he refers to Labatt (John) Ltd. v. The Cotton Club Bottling Co. (1976), 25 C.P.R. (2d) 115 (F.C.T.D.). In the latter case, Cattanach J. considered specifically the meaning to be given to "special circumstances" and said, at pages 123, 124 and 125:
The word "special" in the language of s. 44(3) "that the absence of use has not been due to special circumstances that excuse such absence of use" is an adjective modifying the word "circumstances" and the word "special" as an adjective is defined in the Shorter Oxford English Dictionary, 3rd ed., as meaning "Of such a kind as to exceed in some way that is not usual or common; exceptional in character, quality or degree." Put another way "special circumstances" means circumstances that are unusual, uncommon or exceptional.
Jackett, C.J., specifically decided in the Noxzema case, supra, (Noxzema Chemical Co. of Canada Ltd. v. Sheran Manufacturing Ltd. et al., [1968] 2 Ex.C.R. 446; 55 C.P.R. 147) that s. 44 of the Trade Marks Act is not the proper procedure to determine if a trade mark has been abandoned
and the proper procedure to raise the question of abandonment is by way of express proceedings for expungement.
However the remarks made by Evershed, L.J., (Aktiebolaget Manus v. R. J. Fullwood & Bland, Ltd. (1948), 66 R.P.C. 71 (C.A.) (in relation to U.K. Statute.)) with respect to the meaning of "special circumstances" are particularly apt in the circumstances of this appeal because it is these words that are used in s. 44(3) and in so saying I have not overlooked that the same words appear in different statutes enacted by different jurisdictions. But the subject-matter of both statutes is substan tially the same and in each instance the words "special circum stances" are to be given meaning in their common acceptance and that is what Lord Evershed did when he said (which for emphasis I repeat):
In that context it seems to me (without attempting any precise defintion) that the words must be taken to refer to circumstances which are "special" in the sense of being peculiar or abnormal and which are experienced by persons engaged in a particular trade as the result of the working of some external forces as distinct from the voluntary acts of any individual trader.
Finally, it would be contrary to public policy to permit adherence to one statute, under the circum stances of this particular case, to imperil the valid ity of a trade mark. Indeed, it was well known, at the time, that the relevant part of the Charter of the French Language and the Regulations respecting the language of commerce and business were the subject of legal and constitutional chal lenge in Court; we now know that this matter has yet to be finally decided by the Supreme Court of Canada. I am therefore satisfied that the respon dent always intended to use the trade mark; the fact that he used the key word "Playboy" with the French translation of the remainder of the mark is a clear indication of such an intent.
For all these reasons, I am in agreement with the conclusion of the Chairman of the Opposition Board from which it follows that the appeal from his decision must be dismissed with costs.
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