Judgments

Decision Information

Decision Content

A-140-87
Kellogg Salada Canada Inc. (Appellant) (Appellant)
v.
The Registrar of Trade Marks and Maximum Nutrition Limited (Respondents) (Respondents)
INDEXED AS.' KELLOGG SALADA CANADA INC. Y. CANADA (REGISTRAR OF TRADE MARKS) (CA.)
Court of Appeal, Mahoney and Stone JJ.A. and Gray D.J.—Toronto, June 10; Ottawa, June 29, 1992.
Trade marks — Registration — Appeal from trial judgment upholding Opposition Board's rejection for registration of "Nutri-Vite" for use in association with breakfast and snack foods as likely to be confused with respondent's registered marks "Nutri-Max" and "Nutri-Fibre" — More than 225 marks incorporating "Nutri" registered — Appeal allowed — (1) Issue of confusion to be determined as of date opposition disposed of — (2) Pepsi-Cola Company of Canada, Ltd. v. The Coca-Cola Company of Canada, Ltd., [1940] S.C.R. 17 applied although infringement, not registration, case — Rules of comparison similar in both types of cases, although closer likeness must be shown in infringement case — All relevant evidence to be considered in determining whether appellant discharging burden of showing little likelihood of confusion — (3) No likelihood of confusion — Common element in mark causing purchasers to distinguish between marks by other fea tures — Where marks having common characteristics owned by different persons less proprietorial significance of common feature — Suffixes herein different and serving to distinguish marks.
This was an appeal from the trial judgment upholding the Opposition Board's rejection of "Nutri-Vite" for registration as a trade mark for use in association with breakfast and snack foods. The Trial Judge held that "Nutri-Vite" would likely be confused with the respondent's registered trade marks "Nutri- Max" and "Nutri-Fibre", used in Canada in association with health food products. At trial, the appellant filed new affidavits not before the Opposition Board showing registration of more than 225 different trade marks and trade names incorporating the word "Nutri". The Opposition Board had disallowed evi dence of the state of the register because the trade mark search report post-dated the original statement of opposition by many months. The Opposition Board held that the appellant had failed to meet the onus of showing that there was no reasona ble likelihood of confusion between the marks. The Trial Judge
found that the appellant had not discharged the onus of show ing that little likelihood of confusion existed, that the Court should not interfere with the finding of the Opposition Board and that as the validity of the respondent's trade marks was not in issue, there was no onus on the respondent to demonstrate that its trade marks were not confusing with those of any third party. He found that the common use of the prefix "Nutri" was more relevant to the question of "inherent distinctiveness". He distinguished Pepsi-Cola Company of Canada, Ltd. v. The Coca-Cola Company of Canada, Ltd., [1940] S.C.R. 17, on the basis that it was a case of infringement rather than one of registration. The appellant submitted that the Trial Judge erred in the consideration he gave to the general criteria in subsec tion 6(5) ("regard to all the surrounding circumstances") by ignoring relevant evidence establishing that many trade marks and trade names containing the word "Nutri" are in use in Canada. The issues were: (1) the date as of which the issue of confusion must be determined; (2) whether the Pepsi-Cola decision was relevant notwithstanding that it was an infringe ment case; and (3) whether there was a likelihood of confusion.
Held, the appeal should be allowed.
(1) The issue of confusion must be determined as of the date that the opposition is disposed of. All of the evidence filed in the Trial Division must be considered in determining the issue of confusion.
(2) Pepsi-Cola should not be distinguished simply because it was an infringement case. The Supreme Court of Canada there held that the rules of comparison in an infringement case resemble those in a registration case, although a closer likeness must be shown in an infringement case and the standard of proof of confusion to be met differs. Pepsi-Cola did not hold that register evidence is not to be considered in a registration case. Therefore, all of the relevant evidence must be consid ered in determining whether the appellant has discharged the burden of proof. Furthermore, distinguishing Pepsi-Cola solely because it was concerned with infringement would cause evi- dentiary difficulty and produce inconsistency in the decided cases.
(3) The appellant has discharged the onus of showing that there is no likelihood of confusion between its trade mark and either of the respondent's trade marks. The presence of a com mon element causes purchasers to pay more attention to the other features of the respective marks and to distinguish between them by those other features. The fact that marks which have a common characteristic are owned by different persons tends to negative any proprietorial significance of the common feature. The Opposition Board and the Trial Judge held that none of the marks in issue was inherently distinctive. Where marks possess little or no inherent distinctiveness, "small differences will serve to distinguish". "Nutri" has been
commonly adopted in the food trade as suggestive of a desira ble attribute of foods, particularly health foods. Consumers are accustomed to making fine distinctions between the various "Nutri" trade marks. The suffixes herein are totally different and are sufficient to distinguish the marks. The respondent's marks may have acquired distinctiveness only in relation to those portions that are different from all the other "Nutri" marks. To the extent that the appellant is already the owner of two trade mark registrations which incorporate the word "Nutri", it is already entitled to use the prefix "Nutri".
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Trade Marks Act, R.S.C. 1970, c. T-10, ss. 6(5), 12(1)(d),
16(3)(a), 29(b), 39(2), 44.
CASES JUDICIALLY CONSIDERED
APPLIED:
Pepsi-Cola Company of Canada, Ltd v. The Coca-Cola Company of Canada, Ltd., [1940] S.C.R. 17; [1940] 1 D.L.R. 161; affd Coca-Cola Co. v. Pepsi-Cola Co. (1942), 2 D.L.R. 657; [1942] 2 W.W.R. 257; (1942), 1 C.P.R. 293; 2 Fox Pat. C. 143; [1942] 1 All E.R. 615 (P.C.); Park Avenue Furniture Corp. v. Wickes/Simmons Bedding Ltd. (1991), 37 C.P.R. (3d) 413 (F.C.A.); Molson Cos. v. Distilleries Corby Ltée/Corby Distilleries Ltd. (1987), 17 C.I.P.R. 19; 18 C.P.R. (3d) 55 (T.M. Opp. Bd.).
CONSIDERED:
Molnlycke Aktiebolag v. Kimberly-Clark of Canada Ltd. (1982), 61 C.P.R. (2d) 42 (F.C.T.D.).
REFERRED TO:
Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corporation, [1969] S.C.R. 192; (1968), 1 D.L.R. (3d) 462; 57 C.P.R. 1; 39 Fox Pat. C. 207; Andres Wines Ltd. v. Canadian Marketing International Ltd, [1987] 2 F.C. 159; (1986), 10 C.I.P.R. 206; 13 C.P.R. (3d) 253; 8 F.T.R. 173 (T.D.); affd (1988), 22 C.P.R. (3d) 289; 93 N.R. 253 (F.C.A.); Laurentide Chemicals Inc. v. Les Marchands Deco Inc. (1985), 7 C.P.R. (3d) 357 (F.C.T.D.); Esprit de Corp v. S.C. Johnson & Co. (1986), 11 C.I.P.R. 192; 13 C.P.R. (3d) 235; 8 F.T.R. 81 (F.C.T.D.); Beck, Koller & Coy. (England) Ld's Application for a Trade Mark (1947), 64 R.P.C. 76; Harrods Ld. — In the Matter of an Application by — to Register a Trade Mark (1934), 52 R.P.C. 65; Oshawa Group Ltd. v. Creative Resources Co. Ltd. (1982), 61 C.P.R. (2d) 29 (F.C.A.).
AUTHORS CITED
Fox, Harold G. The Canadian Law of Trade Marks and Unfair Competition, 3rd ed. Toronto: Carswell Co. Ltd., 1972.
APPEAL from trial judgment (Maximum Nutrition Ltd. v. Kellogg Salada Can. Inc. (1987), 11 C.I.P.R. 1; 14 C.P.R. (3d) 133; 9 F.T.R. 136 (F.C.T.D.)) upholding Opposition Board's rejection of "Nutri- Vite" for registration as a trade mark for use in asso ciation with breakfast and snack foods. Appeal allowed.
COUNSEL:
Frank Farfan and Tony Bortolin for appellant (appellant).
Roger T. Hughes, Q. C. for respondents (respon- dents).
SOLICITORS:
MacBeth & Johnson, Toronto, for appellant (appellant).
Sim, Hughes, Dimock, Toronto, for respondents (respondents).
The following are the reasons for judgment ren dered in English by
STONE J.A.: This appeal, and the appeal in Court File No. A-141-87, were heard together. Both are from a judgment of the Trial Division rendered Feb- ruary 9, 1987, in appeal proceedings under the Trade Marks Act, R.S.C. 1970, c. T-10, as amended, whereby decisions of the Opposition Board, giving effect to amended oppositions filed on December 18, 1981, to the registration of the appellant's marks "Nutri-Bran" and "Nutri-Vite" for use in association with "cereal and vegetable-derived food products to be used as a breakfast food and snack food", were upheld. That judgment is fully reported as Maximum Nutrition Ltd. v. Kellogg Salada Can. Inc. (1987), 11 C.I.P.R. 1 (F.C.T.D.). The present appeal is in respect of the rejection of "Nutri-Vite" for registration as a trade mark in Canada.
The application for registration of both marks was based on proposed use. The respondent's position before the Opposition Board, as in the Trial Division, was that the mark "Nutri-Vite" would likely be con fused with its registered trade marks "Nutri-Max" and "Nutri-Fibre", both of which had been in use in Canada for some considerable periods in association with health food products in the same trade. The Trial Judge agreed. In doing so, he had regard to the provi sions of subsection 6(5) of the Act, which reads:
6....
(5) In determining whether trade marks or trade names are confusing, the court or the Registrar, as the case may be, shall have regard to all the surrounding circumstances including
(a) the inherent distinctiveness of the trade marks or trade names and the extent to which they have become known;
(b) the length of time the trade marks or trade names have been in use;
(e) the nature of the wares, services or business;
(d) the nature of the trade; and
(e) the degree of resemblance between the trade marks or trade names in appearance or sound or in the ideas sug gested by them.
In the Trial Division proceeding, the appellant filed affidavit material in addition to that which had been filed before the Opposition Board. This new material consisted of two affidavits of Michael Godwin sworn March 20, 1986, the affidavit of Jennifer Stecyk sworn March 20, 1986 and the affidavit on the regis ter of Catherine Brunelle sworn April 18, 1986. These affidavits show more than 225 different trade marks and trade names registration by different per sons in Canada which incorporate the word "Nutri" as a prefix or otherwise. In the proceeding before the Opposition Board, the appellant filed the affidavit of a legal secretary to which was attached a copy of a trade mark search conducted by an agent. This was found to be inadequate because it constituted hearsay evidence and also because the search report post dated the original statement of opposition by many months. A second affidavit, that of Paul Corimé who was National Sales Manager of the appellant, was in large measure ruled inadmissible to the extent that it too was hearsay.
The Opposition Board held that the onus of show ing that there was no reasonable likelihood of confu sion between the marks rested with the appellant. After finding that none of the marks possessed a great deal of inherent distinctiveness and weighing the factors enumerated in subsection 6(5) of the Act, the Opposition Board, in rejecting registration of the mark "Nutri-Vite", came to the following conclusion:
Having regard to the above, and bearing in mind that the legal burden is upon the applicant to establish that there would be no reasonable likelihood of confusion between the trade marks at issue, I have concluded that the applicant has failed to meet this onus in that there would be a reasonable likelihood of con fusion between the applicant's trade mark NUTRI-VITE applied to the applicant's wares and to the opponent's regis tered trade mark NUTRI-MAX as applied to the wares covered in the opponent's trade mark registration and, in particular, the cereals and cereal-type products covered in its trade mark registration. In so concluding, I find that despite the fact that the trade marks at issue do not possess a great deal of inherent distinctiveness, the opponent by its evidence has established that its NUTRI-MAX trade mark has become known in Canada in association with the wares covered in its trade mark registration and that there is some similarity between the trade marks in appearance and sounding and that the applicant's wares and certain of the opponent's wares are related and would travel through the same channels of trade.
It reached an identical conclusion in rejecting regis tration of the mark "Nutri-Bran".
The issue before the Trial Judge was whether there was a likelihood of confusion between the appellant's mark and those of the respondent, particularly "Nutri- Max". In upholding the opposition the Trial Judge found: that the appellant had not discharged the onus of showing that little likelihood of confusion existed, that the Court should not interfere with the finding of the Opposition Board and that, as the validity of the respondent's trade marks was not in issue, there was
no onus on the respondent to demonstrate that its trade marks were not confusing with those of any third party. While the Opposition Board's decision is entitled to great weight, it did not relieve the Trial Judge of the responsibility of determining the issues in the light of the circumstances: Benson & Hedges (Canada) Limited v. St. Regis Tobacco Corporation, [ 1969] S.C.R. 192, at page 200. As we shall see, the case had also to be considered in the light of all the evidence including, that which was not before the Opposition Board.
The appellant does not quarrel with the Trial Judge's treatment of the specific criteria set forth in paragraphs 6(5)(a) to (e). Mr. Farfan, counsel for the appellant, conceded that if the case was properly con fined to the statutory criteria contained in these paragraphs, he could not take issue with the result. He submits, however, that the Trial Judge erred in the consideration he gave to the general criteria con tained in that subsection i.e. that the likelihood of confusion be determined by reference "to all the sur rounding circumstances" in light of the evidence. This aspect of the matter was dealt with by the Trial Judge at pages 5-6, where he stated:
The appellant contends that there is compelling evidence of another circumstance, a lack of distinctiveness of the respon dent's registered trade marks in relation to the trade marks and trade names of third parties, which should have led the Regis trar or should lead the Court to conclude that there is no likeli hood of confusion between the appellant's proposed trade marks and the respondent's registered trade marks. The appel lant sought to demonstrate through evidence submitted to the Chairman that the word "NUTRI" is in such common use in other trade marks, trade names and company names that it is in no way distinctive. Most of this evidence was held to be defec tive by the Chairman. New affidavits were filed before me to overcome those defects. Counsel for the appellant states, and this was not refuted by counsel for the respondent, that accord ing to the evidence now on file as of the filing date of the applicant's applications, May 19, 1981, there were at least 47 trade mark registrations and 43 trade names using the word "NUTRI". As of the opposition date, December 17, 1981 there were at least a further three trade names. Since that time there have been 18 further trade mark registrations or applications therefor and 66 trade names adopted using this word. I am not
satisfied that such a "surrounding circumstance" adds much to the appellant's case. It may well be, in fact, that this is more relevant to the question of "inherent distinctiveness", which the Chairman and I have both already found the respondent's trade marks to lack. Further, I reiterate that the trade marks of the respondent are in no way on trial here. Nor is the respon dent suing the applicant for infringement of the former's regis tered trade marks. What the Chairman had to decide on behalf of the Registrar, and what I have to decide, is whether the appellant has demonstrated that there is no likelihood of confu sion between its proposed trade marks and the proposed trade marks of the respondent referred to in its opposition. Having regard to the nature of the products and of these particular trade marks I do not think the appellant has met the onus on it at least with respect to possible confusion with NUTRI-MAX. The fact that there are many other trade marks, trade names and businesses which use the word "NUTRI" is only margin ally relevant to the issues which must be decided in these pro ceedings.
He proceeded to distinguish the decision of the Supreme Court of Canada in Pepsi-Cola Company of Canada, Ltd. v. The Coca-Cola Company of Canada, Ltd., [1940] S.C.R. 17, and on appeal to the Privy Council in Coca-Cola Co. v. Pepsi-Cola Co. (1942), 2 D.L.R. 657 on the basis that it was a case of infringement rather than one of registration. He based the distinction on the following passage in the judg ment of Davis J., at page 32:
The authorities are plain, we think, that the rules of compari son for testing an alleged infringement of a registered mark resemble those rules by which the question of similarity on an application for registration is tested but that it is necessary to establish a closer likeness in order to make out an actual infringement than would justify the refusal of an application to register. The burden on a plaintiff in an infringement action is to show reasonable probability of confusion, while an applicant for registration must establish, if challenged, the absence of all reasonable prospect of confusion.
Mr. Farfan submits that the Trial Judge erred fun damentally in that the conclusion he reached ignored relevant evidence of user contained in the register and elsewhere. That evidence, he says, establishes that many trade marks and trade names containing the word "Nutri" are in use in Canada. Actual use in
Canada had to be shown before any of these marks could be registered 1 and non-use may lead to expungement. 2 He submits that some admissible evi dence before the Opposition Board did establish use of "Nutri" in the market place, that being the portions of Mr. Corimé's affidavit which were not based on hearsay. Had all of this evidence been properly con sidered, he submits, the Trial Judge would have con cluded that the burden of proof had been met, that no confusion existed and that registration of "Nutri- Vite" as a trade mark in Canada would have been approved.
Mr. Hughes, for the respondent, emphasizes the statutory scheme within which the opposition had to be determined. Since the opposition was based on the assertion that "the trade mark is not registrable", the provisions of paragraph 12(1)(d) 3 were rendered applicable, and since it was also based on the asser tion that "the trade mark is not distinctive", the provi sions of paragraph 16(3)(a) 4 were rendered applica ble. Both of those paragraphs bring in the element of "confusion" which, as we have seen, must be deter mined by reference to subsection 6(5) of the Act. He submits that the onus of showing that no likelihood of confusion exists rests with the appellant as estab lished by Cattanach J. in Molnlycke Aktiebolag v.
1 See ss. 29(b) and 39(2) of the Act.
2 See s. 44 of the Act.
3 S. 12(1)(d) reads:
12. (1) Subject to section 13, a trade mark is registrable if it is not
(d) confusing with a registered trade mark; or ....
4 S. 16(3)(a) reads: 16....
(3) Any applicant who has filed an application in accor dance with section 29 for registration of a proposed trade mark that is registrable is entitled, subject to sections 37 and 39, to secure its registration in respect of the wares or ser vices specified in the application, unless at the date of filing of the application it was confusing with
(a) a trade mark that had been previously used in Canada
or made known in Canada by any other person;....
Kimberly-Clark of Canada Ltd. (1982), 61 C.P.R. (2d) 42 (F.C.T.D.), at page 45:
The classic statement of where the onus lies is that of Lord Watson in Eno v. Dunn (1890), 15 A.C. 252, where he summed up the position of an applicant for registration in these words at p. 257:
... here he is in petitorio, and must justify the registration of his trade-mark by sheaving affirmatively that it is not calculated to deceive. It appears to me to be a necessary consequence that, in dubio, his application ought to be disallowed.
Therefore, where there is a question of confusion between a trade mark for which an application for registration is being made and a registered trade mark the onus is on the applicant for registration to establish no reasonable probability of confu sion and if that onus is not discharged the application ought not to be allowed.
This is a constant onus and remains as such. It is not compa rable to a shifting burden of proof.
Mr. Hughes submits that the Opposition Board and the Trial Judge correctly decided that the appellant had failed to discharge this onus. As registration was opposed, he contends that the appellant was required to show, at a minimum, actual use in the market place of the word "Nutri", alone or in combination, as a trade mark. He turns again to Molnlycke, for the proposition that in opposition proceedings use of a trade mark must be established on the evidence and cannot be presumed. Indeed, at page 48, Cattanach J. stated:
These considerations apply in the preliminary stages of application before the Registrar and gives rise to the presump tion of use of some of the marks unless there is evidence to the contrary but in opposition proceedings no such presumption will be made because the opponent is in a position to file such evidence: see Re Beck, Koller & Co. (England), Ltds. Appl'n (1947), 64 R.P.C. 76, and Re Harrods Ltds. Appl'n (1934), 52 R.P.C. 65.
Mr. Farfan contends that the decision in Moln- lycke, when viewed in its totality, does not support this submission. He draws attention to page 49 of Molnlycke, supra, where Cattanach J. stated:
This being the case there has been no series of trade marks enjoying common features which have been adopted by the respondent but, on the contrary, there have been a plethora of marks registered for use in association with ladies intimate wear all using the word "free" with the connotation of freedom of movement from which it follows the word is one commonly used in this particular trade without any particular proprietorial signification. [Emphasis added.]
This view, he says, was based upon evidence of the state of the register. He cites several additional cases in the Trial Division and in this Court in which evi dence of user appears to have been drawn exclusively from the state of the register: Andres Wines Ltd. v. Canadian Marketing International Ltd., [ 1987] 2 F.C. 159 (T.D.), at pages 162-163; and on appeal (1988), 22 C.P.R. (3d) 289 (F.C.A.), at page 290; Laurentide Chemicals Inc. v. Les Marchands Deco Inc. (1985), 7 C.P.R. (3d) 357 (F.C.T.D.), at pages 359-360; Esprit de Corp v. S.C. Johnson & Co. (1986), 11 C.I.P.R. 192 (F.C.T.D.); Park Avenue Fur niture Corp. v. Wickes/Simmons Bedding Ltd. (1991), 37 C.P.R. (3d) 413 (F.C.A.), at pages 427-428. Most of all, he relies on Pepsi Cola, supra, and Coca-Cola, supra. In Pepsi-Cola, at page 33, it appears that the evidence of user consisted of a number of registra tions of trade marks and trade names in some form of the word "cola". At that same page, the Court viewed these registrations "as some evidence of the general adoption of the word in names for different beverages or tonics". That view appears to have found favour with the Privy Council when the case reached it by way of final appeal. At page 661 of Coca-Cola, Lord Russell of Killowen stated:
The defendant put in evidence a series of 22 trade marks registered in Canada from time to time during a period of 29 years, viz, from 1902 to 1930, in connection with beverages. They include the mark of the plaintiff and the registered mark of the defendant. The other 20 marks consist of two or more words or a compound word, but always containing the word "Cola" or "Kola" .... Their Lordships agree with the Supreme Court in attributing weight to these registrations as showing that the word Cola ... had been adopted in Canada as an item in the naming of different beverages.
Beck, Koller & Coy. (England)14's Application for a Trade Mark (1947), 64 R.P.C. 76 and Harrods 14. — In the Matter of an Application by — to Register a
Trade Mark (1934), 52 R.P.C. 65, referred to by Cat- tanach J. in Molnlycke, supra, were both decided in the office of the Comptroller General. The latter deci sion post-dated Pepsi-Cola and Coca-Cola, but made no reference to either of them.
Before addressing the overall issue of confusion, I wish to deal with two sub-issues which arose in argu ment: the date as of which that issue must be deter mined and whether the decision of the Supreme Court of Canada in Pepsi-Cola is relevant to that issue notwithstanding that it was an infringement case. The relevant date has been the subject of some controversy, but the position has recently become clear in this Court. In the present case, the point has some significance because state of the register evi dence, which was largely ruled inadmissible by the Opposition Board, was admitted in the Trial Division proceeding. In some of the earlier Trial Division decisions, the date of application for registration, the date of opposition and the date an opposition is dis posed of were each regarded as relevant dates. It is now established, however, that the date as of which an opposition is disposed of is the only relevant date: Park Avenue, supra. There, additional evidence was filed subsequent to the filing of the application. After reviewing the cases including that of Oshawa Group Ltd. v. Creative Resources Co. Ltd. (1982), 61 C.P.R. (2d) 29 (F.C.A.), Desjardins J.A. stated, at page 424:
In an opposition to registrability, the view adopted by Heald J.A. in Oshawa appears to me to be the most logical one. I find no fallacy in the possibility of an update of the situation by the parties when the issue is whether statutory recognition should be given to a mark. It is important, it would seem to me, that the decision of the Registrar or the court be taken on an accu rate state of the record. Registrability should be decided at the date of registration or at the date of refusal of registration.
The relevant date, in the case at bar, was the day the Regis trar disposed of the opposition on the evidence adduced .... [Footnote omitted.]
The result here is that all of the evidence filed in the Trial Division must be considered in determining the issue of confusion.
Secondly, I am unable, with respect, to distinguish Pepsi-Cola, on the simple ground that it was an infringement case. As I understand it, the Supreme Court of Canada there held, indeed, that the rules of comparison in an infringement case resemble those in a registration case although a closer likeness must be shown in an infringement case and that the stan dard of proof of confusion which a plaintiff in an infringement case or an applicant in a registration case must meet differs. I do not read that decision as holding that while in an infringement case state of the register evidence may be considered on the issue of confusion, it is not to be considered on that same issue in a registration case. If that be the case, the case at bar cannot be disposed of without considering all of the relevant evidence in determining whether the appellant has discharged the burden of proof.
To distinguish Pepsi-Cola from the case at bar solely because it was concerned with infringement, it seems, causes evidentiary difficulty and produces inconsistency in the decided cases. That view was recently expressed by the Opposition Board in Mol - son Cos. v. Distilleries Corby Ltée/Corby Distilleries Ltd. (1987), 17 C.I.P.R. 19 where, at pages 25-26, Chairman Martin stated:
The opponent further submitted that the state of the register evidence in the present case can be given little, if any, signifi cance in view of the decision in Maximum Nutrition Ltd. v. Kellogg Salada Can. Inc. (1987), 11 C.I.P.R. 1 (sub nom. Kel- logg Salada Can. Inc. v. Reg. T.M.), 14 C.P.R. (3d) 133, 9 F.T.R. 136 (Fed. T.D.). At p. 138 [C.P.R., p. 6 C.I.P.R.] of that decision, Mr. Justice Strayer commented as follows on the state of the register evidence before him:
"The fact that there are many other trade marks, trade names and businesses which use the word `nutri' is only marginally relevant to the issues which must be decided in these pro ceedings."
Mr. Justice Strayer goes on to distinguish the Pepsi-Cola case noted above on the basis that it was an infringement action
although his reasons for doing so are unclear. Furthermore, his approach would seem to be at odds with other Federal Court decisions including the following three recent decisions of the Trial Division: Laurentide Chemicals Inc. v. Marchands Deco Inc. (1985), 7 C.P.R. (3d) 357 at p. 365; Esprit de Corp v. S.C. Johnson & Co. (1986), 1I C.I.P.R. 192; 8 F.T.R. 81 (sub nom. S.C. Johnson & Son Inc. v. Esprit de Corp), 13 C.P.R. (3d) 235 at pp. 247-48, and Andres Wines Ltd. v. Cdn. Marketing Ltd., [1987] 2 F.C. 159, 10 C.I.P.R. 206; 8 F.T.R. 173; 13 C.P.R. (3d) 253 at 259-60. In the face of this apparent contradiction and in view of the ambiguity in the Maximum Nutrition case, I feel obliged to follow the line of decisions supporting the rele vance of state of the register evidence in cases such as the pre sent.
The presence of a common element in trade marks has been held to have an important bearing on the issue of confusion for, as was stated by the Comptrol ler General in Harrods Ld., supra, at page 70:
Now it is a well recognised principle, that has to be taken into account in considering the possibility of confusion arising between any two trade marks, that, where those two marks contain a common element which is also contained in a num ber of other marks in use in the same market, such a common occurrence in the market tends to cause purchasers to pay more attention to the other features of the respective marks and to distinguish between them by those other features.
Much the same point was made in Beck, Koller & Coy. (England), Ld's, supra. In Molnlycke, supra, Cattanach J. commented on the significance of a common feature and on the nature of evidence required. At page 48, he stated:
If those marks which have common characteristics are regis tered in the names of different owners then the presumption is that the common characteristic is a common feature in the trade and registration ought to be allowed. The fact that the marks are owned by different persons tends to negative any proprietorial significance of the common feature and so assists an applicant.
See also the decisions of this Court in Park Avenue, supra, at page 428 and Andres Wines, supra, at page 290. In Fox, The Canadian Law of Trade Marks and Unfair Competition, (3rd ed.), Toronto, 1972, at page 351, the learned editors stated:
It is seldom that only parts common to the trade are taken and used without the addition of other and possibly distinguishing features. The usual circumstance is that a part of a trade mark such as a prefix or suffix of a word, is taken, or in other cases, only one of the words of a trade mark consisting of a plurality of words. In considering the possibility of confusion between any two trade marks, it is a well recognized principle that, where those two marks contain a common element that is also contained in a number of other marks in use in the same mar ket, such a common occurrence in the market tends to cause purchasers to pay more attention to the other or non-common features of the respective marks and to distinguish between them by those other features. This principle, however, requires that the marks comprising the common elements shall be in fairly extensive use in the market in which the marks under consideration are being used or will be used. (Per the Comp- troller-General in Harrods Ld. (1935), 52 R.P.C. 65 at 70; Dia mond T. Motor Car Co. Ltd.'s Application (1921), 38 R.P.C. 373 at 378; Bale & Church Ltd. v. Sutton, Parsons & Sutton (1934), 51 R.P.C. 129 at 144; and see also Marshall's Applica tion (1943), 60 R.P.C. 147 at 150.)
In the case at bar, both the Opposition Board and the learned Trial. Judge were of the view that none of the marks in issue was inherently distinctive. I agree. Where marks possess little or no inherent distinctive ness, as is pointed out in Fox, supra, at pages 152- 153, "small differences will serve to distinguish".
The evidence does show that the word "Nutri", as a prefix or otherwise, has been generally adopted and used in the food trade in Canada. As of the filing date, the evidence shows at least 47 trade mark regis trations and 43 trade names; as of the amended oppo sition date, a further 3 trade names existed; since that date, there has been at least 18 additional trade mark registrations and applications. I agree with counsel's submission that it is reasonable from all of this evi dence to conclude that the word "Nutri" has been commonly adopted in the food trade as suggestive of a desirable attribute of foods, particularly health foods. I think it may be inferred that consumers of these products are accustomed to making fine distinc tions between the various "Nutri" trade marks in the marketplace, by paying more attention to any small differences between marks. I accept the appellant's contention that the respondent's marks are weak because they incorporated a word that is commonly
used in the trade. The suffix "Vite" in the appellant's mark and the suffixes "Max" and "Fibre" in the respondent's marks are totally different and appear sufficient to distinguish them. To the extent that the respondent's marks may have acquired distinctive ness, they could only have done so in relation to those portions that are different (the portions which do not include the word "Nutri") from all the other "Nutri" marks. It is noteworthy as well that the appel lant is itself already the owner of two trade mark registrations which incorporate the word "Nutri", "Nutri-Grain" and "Nutri Grain and Design". To that extent, the appellant is already entitled to use the pre fix "Nutri".
Based on all of the evidence of surrounding cir cumstances, I have concluded that the appellant has discharged the onus of showing that there is no likeli hood of confusion between the appellant's trade mark "Nutri-Vite" and either of the respondent's trade marks "Nutri-Max" and "Nutri-Fibre" notwithstand ing that they are in respect of food products which are sold in the same trade. To allow the opposition would, in the words of Davis J. in Pepsi-Cola, supra, at page 32, make the respondent "virtually .. . the possessor of an exclusive proprietary right" in rela tion to the word "Nutri" in respect of such products.
I would allow the appeal, set aside the judgment of the Trial Division rendered February 9, 1987, and the decision of the Opposition Board dated November 29, 1985, and would refer the matter back to the Reg istrar of Trade Marks on the basis that application No. 470,140 for registration of the trade mark "Nutri- Vite" be granted. As this appeal and the appeal in Court File No. A-141-87 were heard together there should be one set of costs but with disbursements in both files.
MAHONEY J.A.: I agree. GRAY D.J.: I agree.
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