RESTRICTED
WORLD TRADE IP/C/W/51
11November 1996
ORGANIZATION(96-4776)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
REVIEW OFLEGISLATION ONTRADEMARKS, GEOGRAPHICAL
INDICATIONS AND INDUSTRIAL DESIGNS
Replies from Canada toquestions posed bytheEuropean Community
anditsMember States1andtheUnited States2
Thefollowing communication, dated 8November 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
1Document IP/C/W/37
2Document IP/C/W/39IP/C/W/51
Page2
REPLIES TOQUESTIONS POSED BYTHE EUROPEAN
COMMUNITY AND ITSMEMBER STATES
Geographical Indications
1. Could Canada explain indetail howtheCanadian lawprotects geographical indications for
products other thanwines andspirits? Isthislegislation incompliance withArticle 22oftheTRIPS
Agreement? Please explain.
Canada complies withArticle 22oftheTRIPS Agreement. TRIPS Article 22.2requires Canada
toprovide alegalmeans forinterested parties toprevent certain misleading andunfair practices. In
Canada, arightholder could bring aprivate action against aperson whomade useofamark which
waslikely tomislead thepublic astothegeographical origin ofproducts other thanwines andspirits
under sub-paragraph 7(d)(ii) oftheTrade-marks Act,which provides asfollows:
"Noperson shall...make use,inassociation withwares orservices, ofanydescription that
isfalseinamaterial respect andlikely tomislead thepublic asto...the geographical origin...of
thewares orservices."
Inappropriate circumstances, arightholder could alsobring anaction under paragraph 7(b)
oftheTrade-marks Act,which provides asfollows:
"Noperson shall...(b) direct public attention tohiswares, services orbusiness insuchaway
astocause orbelikely tocause confusion inCanada, atthetimehecommenced sotodirection
attention tothem, between hiswares, services orbusiness andthewares, services orbusiness
ofanother."
orunder sub-paragraph 7(d)(i), which provides that:
"Noperson shall...(d) make use,inassociation withwares orservices, ofanydescription
thatisfalseinamaterial respect andlikely tomislead thepublic asto:
(i) thecharacter, quality, quantity orcomposition ...ofthewares orservices;"
Another possible ground foranaction would beSection 10oftheTrade-marks Act,which
provides asfollows:
"WhereanymarkhasbyordinaryandbonafidecommercialusagebecomerecognizedinCanada
asdesignatingthekind,quality,quantity,destination,value,placeoforiginordateofproduction
ofanywares orservices, noperson shalladopt itasatrade-mark inassociation withsuchwares
orservices orothers ofthesame general classoruseitinawaylikely tomislead, norshall
anyperson soadopt orsouseanymark sonearly resembling thatmark astobelikely tobe
mistaken therefore."
Ofcourse, arightholder might alsoapply toacourt toprevent theimportation intoCanada
ofgoods containing anindication ofplace oforigin thathasbeenunlawfully applied tothem under
sub-section 53(1) oftheTrade-marks Act,which provides asfollows:
"Where acourt issatisfied, onapplication ofanyinterested person, thatanyregistered trade-
mark oranytrade-name hasbeenapplied toanywares thathavebeenimported intoCanada
orareabout tobedistributed inCanada insuchamanner thatthedistribution ofthewaresIP/C/W/51
Page3
would becontrary tothisAct,orthatanyindication ofaplace oforigin hasbeenunlawfully
applied toanywares, thecourt maymake anorder fortheinterim custody ofthewares, pending
afinaldetermination ofthelegality oftheirimportation ordistribution inanaction commenced
within suchtimeasisprescribed bytheorder."
Ofcourse, organizations responsible forgeographical indications might availthemselves of
thecertification marks provisions oftheTrade-marks Act(ss.23-25), which provide asfollows:
"23. (1) Acertification mark maybeadopted andregistered onlybyaperson whois
notengaged inthemanufacture, sale,leasing orhiring ofwares ortheperformance ofservices
suchasthose inassociation withwhich thecertification mark isused.
(2) Theowner ofacertification mark maylicense others tousethemark in
association withwares orservices thatmeet thedefined standard, andtheuseofthemark
accordingly shallbedeemed tobeusethereof bytheowner.
(3) Theowner ofaregistered certification mark mayprevent itsusebyunlicensed
persons orinassociation withanywares orservices inrespect ofwhich themark isregistered
buttowhich thelicence doesnotextend.
(4) Where theowner ofaregistered certification mark isanunincorporated body,
anyaction orproceeding toprevent unauthorized useofthemark maybebrought byany
member ofthatbody onbehalf ofhimself andallother members thereof.
24. With theconsent oftheowner ofacertification mark, atrade-mark confusing with
thecertification mark may,ifitexhibits anappropriate difference, beregistered bysome other
person toindicate thatthewares orservices inassociation withwhich itisusedhavebeen
manufactured, sold, leased, hired orperformed byhimasoneofthepersons entitled touse
thecertification mark, buttheregistration thereof shallbeexpunged bytheRegistrar onthe
withdrawal atanytimeoftheconsent oftheowner ofthecertification mark oronthe
cancellation oftheregistration ofthecertification mark.
25. Acertification mark descriptive oftheplace oforigin ofwares orservices, andnot
confusing withanyregistered trade-mark, isregistrable iftheapplicant istheadministrative
authority ofacountry, state, province ormunicipality including orforming partofthearea
indicated bythemark, orisacommercial association having anoffice orrepresentative in
thatarea, buttheowner ofanymark registered under thissection shallpermit theuseofthe
mark inassociation withanywares orservices produced orperformed intheareaofwhich
themark isdescriptive."
Inaddition, there isthepossibility ofbringing anaction forthecommon lawtortofpassing
offoranaction forthecivillawdélitdelaconfusion, délitdelasubstitution ordélitdudénigrement ,
under Article 1457oftheCivilCode ofQuebec ,(which dealswithunfair competition), which provides
asfollows:
"Every person hasadutytoabide bytherules ofconduct which lieupon him,according to
thecircumstances, usage orlaw,soasnottocause injury toanother.
Where heisendowed withreason andfailsinthisduty, heisresponsible foranyinjury he
causes toanother person andisliable toreparation fortheinjury, whether itbebodily, moral
ormaterial innature.IP/C/W/51
Page4
Heisalsoliable, incertain cases, toreparation forinjury caused toanother bytheactorfault
ofanother person orbytheactofthings inhiscustody."
Inaddition, prosecutions maybebrought bythestate, inresponse tocomplaints ofmisleading
advertising under Section 52oftheCompetition Actoranyprovincial consumer protection legislation.
Section 52oftheCompetition Actprovides asfollows:
"1. Noperson shall, forthepurpose ofpromoting, directly orindirectly, thesupply or
useofaproduct orforthepurpose ofpromoting, directly orindirectly, anybusiness interest,
byanymeans whatever:
(a) make arepresentation tothepublic thatisfalseormisleading inamaterial
respect;
(b) make arepresentation tothepublic intheform ofastatement, warranty or
guarantee oftheperformance, efficacy orlength oflifeofaproduct thatis
notbased onanadequate andproper testthereof, theproof ofwhich lieson
theperson making therepresentation;
(c) make arepresentation tothepublic inaform thatpurports tobe:
(i) awarranty orguarantee ofaproduct; or
(ii) apromise toreplace, maintain orrepair anarticle oranypartthereof
ortorepeat orcontinue aservice untilithasachieved aspecified result;
iftheform ofpurported warranty orguarantee orpromise ismaterially
misleading orifthere isnoreasonable prospect thatitwillbecarried out;
or
(d) make amaterially misleading representation tothepublic concerning theprice
atwhich aproduct orlikeproducts havebeen, areorwillbeordinarily sold,
andforthepurposes ofthisparagraph arepresentation astoprice isdeemed
torefertotheprice atwhich theproduct hasbeensoldbysellers generally
intherelevant market unless itisclearly specified tobetheprice atwhich
theproduct hasbeensoldbytheperson bywhom oronwhose behalf the
representation ismade.
2. Forthepurposes ofthisSection andSection 53,arepresentation thatis:
(a) expressed onanarticle offered ordisplayed forsale,itswrapper orcontainer;
(b) expressed onanything attached to,inserted inoraccompanying anarticle
offered ordisplayed forsale,itswrapper orcontainer, oranything onwhich
thearticle ismounted fordisplay orsale;
(c) expressed onanin-store orother point-of-purchase display;
(d) made inthecourse ofin-store, door-to-door ortelephone selling toaperson
asultimate user; orIP/C/W/51
Page5
(e) contained inoronanything thatissold,sent,delivered, transmitted orinany
other manner whatever made available toamember ofthepublic;
shall bedeemed tobemade tothepublic byandonly bytheperson whocaused the
representation tobesoexpressed, made orcontained and,where thatperson isoutside Canada,
by:
(f) theperson whoimported thearticle intoCanada, inacasedescribed in
paragraph (a),(b)or(e);and
(g) theperson whoimported thedisplay intoCanada, inacasedescribed in
paragraph (c).
Idem
3. Subject tosub-section (2),everyone who, forthepurpose ofpromoting, directly or
indirectly, thesupply oruseofaproduct oranybusiness interest, supplies toawholesaler,
retailer orother distributor ofaproduct anymaterial orthing thatcontains arepresentation
ofanature referred toinsubsection (1)shallbedeemed tohavemade thatrepresentation to
thepublic.
4. Inanyprosecution foracontravention ofthisSection, thegeneral impression conveyed
byarepresentation aswellastheliteral meaning thereof shall betaken intoaccount in
determining whether ornottherepresentation isfalseormisleading inamaterial respect.
5. Anyperson whocontravenes subsection (1)isguilty ofanoffence andliable:
(a) onconviction onindictment, toafineinthediscretion ofthecourt orto
imprisonment foratermnotexceeding fiveyears ortoboth; or
(b) onsummary conviction, toafinenotexceeding twenty-five thousand dollars
ortoimprisonment foratermnotexceeding oneyearortoboth."
TRIPS Article 22.3requires Canada torefuse orinvalidate theregistration ofatrademark in
certain circumstances.
Sub-section 12(1) oftheTrade-marks Actprovides asfollows:
"Subject toSection 13,atrade-mark isregistrable ifitisnot...
(b) whether depicted, written orsounded, either clearly descriptive ordeceptively
misdescriptive intheEnglish orFrench language ofthecharacter orquality
ofthewares orservices inassociation withwhich itisusedorproposed to
beusedoroftheconditions oforthepersons employed intheirproduction
oroftheirplace oforigin...
(e) amark ofwhich theadoption isprohibited bysection 9or10..."
(Section 10isquoted above.)IP/C/W/51
Page6
2. Following TRIPS Article 23.1, whatarethelegal means available inCanadian legislation to
prevent themisuse ofageographical indication identifying awineoraspirit, where:
(a) thetrueorigin ofthegoods isindicated?
(b) thegeographical indication isaccompanied byexpressions suchas"kind", "type",
"style", "imitation", orthelike?
Sections 11.14 and11.15 oftheTrade-marks Actcreate anabsolute baragainst theadoption
oruseofaprotected geographical indication inrespect ofawineorspirit notoriginating intheterritory
indicated bythatprotected geographical indication. Suchabarwould include usesinwhich thetrue
origin ofthegoods wasindicated andusesinwhich other information -suchas“type”,“style”or
“imitation ”-wasindicated. Arightholder insuchasituation could commence anaction against the
infringer, under Section 53.2oftheActand,ifsuccessful, could obtain damages, anaccounting of
profits, andaninjunction against thatinfringer. Thisprotection isofcourse subject tovarious
exceptions, inconformity withTRIPS Article 24.
3. Under Canadian law,where arightholder ofageographical indication forwines orspirits
disputes therights ofatrademark owner, userorapplicant whoclaims hisgood faithunder this
subsection, willtheburden ofproof beonthelatter (TRIPS Article 24.5)?
Under Canadian law,theburden would beontheperson opposing therightholder ’slawful
continuing useunder Section 11.17 oftheTrade-marks Act.Trademark rights involve private rights
ofaction and,inCanada ’ssystem oflitigation, thelegalburden isalways onthemoving party toprove
itscase. (However, there would beanevidentiary burden ontheparty claiming theSection 11.17
exception toprove thefactsnecessary toenable ittoclaim thebenefit ofthatexception.) Itshould
beemphasized thatSection 11.17 isarelatively narrow Section inthatitonlyprovides anexception
tothenewrights conferred bySections 11.14 and11.15 oftheTrade-marks Act.
4. CanCanada explain whether theadoption, utilisation orregistration asterms customary in
common language ofprotected geographical indications, under subsection 11.18(2) oftheCanadian
Trade-marks Act,isinlinewiththestandstill obligation ofTRIPS Article 24.3?
The“standstill provision ”(TRIPS Article 24.3) iscontained inSection 3-Geographical
Indications. Inenacting sub-section 11.18(2) oftheTrade-marks Act,Canada complied withTRIPS
Article 24.6which, byvirtue ofitsopening words, excludes theapplication ofTRIPS Article 24.3
inthecaseofterms customary incommon language forwines andspirits andcustomary names of
grape varieties.
Moreover, sub-section 11.18(2) oftheTrade-marks Actcreates anexception (asallowed by
TRIPS Article 24.6) tothenewrights provided insub-sections 11.14 and11.15 oftheAct. Thus,
itwould havenoeffect onanyrights thatexisted forprotecting geographical indications inCanada
prior tothecoming intoforce oftheWTO Agreement.IP/C/W/51
Page7
5. Section 11.18(3) oftheCanadian Trade-marks Act,adopted intheframework oftheWTO
implementing legislation, provides foralistofindications inrespect ofwines whose registration as
geographicalindicationsdoesnotpreventtheiradoption,useorregistrationastrade-marksorotherwise.
CanCanada substantiate itsclaim thatthenames included intheabove-mentioned listshavebecome
terms customary inthecommon language (TRIPS Article 24.6)?
Canada hasconsulted withitsindustries andisconfident that,onahistorical basis, itcan
substantiate inrespect ofeachandevery name included inthelistofsub-section 11.18(3) oftheTrade-
marks Act,thattheyhavebecome customary inthecommon language(s) ofCanada.
6. Could Canada explain, inparticular, howithasdetermined thatnames, likeChampagne,
Madeira, PortandSherry, which werepreviously protected inCanada asgeographical indications
forwines fromFrance, Portugal orSpain through bilateral agreements withthose countries, canbe
nowdefined ascustomary inthecommon language inCanadian law(TRIPS Article 24.3standstill
obligation)?
Canada disagrees thatChampagne ,Madeira ,PortandSherry wereprotected asgeographical
indications“immediatelypriortothedateofentryintoforceoftheWTOAgreement”withinthemeaning
ofTRIPS Article 24.3.
TheCanada-France Trade Agreement ,of1933, under which "Champagne" wasprotected in
Canada,wasterminatedin1978.TheCanadiancourtshavepermittedtheuseofchampagnebyCanadian
producers (seeInstitut National desAppellations d’Origine desVinsetEaux-de-Vie etalv.Andres
Wines Ltdetalandtwoother actions ,40DLR (4th) 239(Ontario High Court); 71DLR (4th)575
(Ontario Court ofAppeal); 74DLR (4th)viii(note) (Supreme Court ofCanada).
TheCanada-Portugal Trade Agreement ,of1954, inArticle IV(2), provided thatCanada
undertook tomake available inrespect of"Port" and"Madeira" onlytheprotection provided byits
national legislation concerning false, misleading anddeceptive labelling andadvertising. IntheCanada-
Spain Trade Agreement (alsoof1954), Article VIII, Canada onlyundertook thesame obligation with
respect to"theSpanish wines known asJerez, Xeres, Sherry". Ofcourse, Canadian lawsconcerning
false, misleading anddeceptive labelling andadvertising continue inforce.
7. CouldCanadaexplainhowtheamendmentstotheTrade-marksActconcerningtheimplementation
ofanewsystem toregister andprotect geographical indications forwines andspirits, which hasbeen
published asanIndustry NotebytheAgriculture andAgri-food Canada (AAFC) on31July1996,
operates? Could Canada elaborate onitscompliance withTRIPS Articles 22to24?
Theapplications andreview process published asanIndustry NotebyAgriculture andAgri-food
Canada (AAFC) on31July1996, isintended asanadministrative procedure toallow forgeographical
indications forwines andspirits tobeadded tothelistofprotected geographical indications asprovided
inSection 11.12 oftheTrade-marks Act,provided thatthecriteria oftheActarecomplied with. The
newrights conferred bySections 11.14 and11.15 oftheTrade-marks Actapply onlytothose
geographical indications entered ontothelistofprotected geographical indications.
Onlythosegeographicalindicationsforwinesandspiritswhichmeetthecriteriaofageographical
indication, asdefined inArticle 22.1oftheTRIPS Agreement, andwhich areprotected andusedin
thecountry oforigin asprovided forinArticle 24.9oftheTRIPS Agreement, maybeadded tothe
listofprotected geographical indications. Theinformation tobeprovided foreachgeographical
indication through theapplication process isnecessary inorder toestablish conformity withtheabove
criteria andisconsistent withthatrequired under Section 11.12(3) oftheTrade-marks Act.IP/C/W/51
Page8
Foradministrative purposes, theapplication mustbesubmitted byaresponsible authority for
thewineorspirit inquestion. Aresponsible authority is,inrelation toawineorspirit, theperson,
firm, orother entity, thatbyreason ofstateorcommercial interest, issufficiently connected withand
knowledgeable ofthatwine orspirit tobeparty toanyproceedings inrespect ofanobjection filed
under sub-section 11.13(1) oftheTrade-marks Act.
Within threemonths afterthepublication intheCanada Gazette oftheintention bytheMinister
ofIndustry toinclude aparticular wine orspirit geographical indication onthelistofprotected
geographical indications, anyperson interested mayfileastatement ofobjection withtheRegistrar
ofTrade-marks. Objections maybebased onlyontheground thattheproposed indication isnota
geographical indication, within themeaning ofSection 2oftheTrade-marks Act(which isconsistent
withTRIPS Article 22.1).
(Additional information ontheapplications and review process isavailable at
"http://www.agr.ca/cb/newsrle.htlm".)
Trademarks
8. Given therestrictions setoutinsection 34oftheCanadian Trade-marks Actconcerning the
applications upon which aclaim ofpriority maybebased, itappears thatCanada isnotentirely in
compliance withArticle 4A(1) oftheParis Convention (1967) asisrequired byArticle 2,paragraph 2.1
oftheTRIPS Agreement, since priority mayonlybebased onanapplication filedinacountry ofwhich
theapplicant wasacitizen orinwhich theapplicant hadarealandeffective industrial orcommercial
establishment. Please clarify thisissue.
Canada 'sTrade-marks Act,Section 34,includes apriority rightwithrespect toafiling date
inaParis/WTO country inwhich anon-Paris/WTO applicant isadomiciliary orhasarealandeffective
industrialorcommercialestablishment.However,Section34doesnotpermitapriorityrightwithrespect
toafiling inaParis/WTO country byanon-Paris/WTO applicant whoisadomiciliary orhasareal
andeffective industrial orcommercial establishment inanother Paris/WTO country. Todate, the
Canadian government hasnotreceived acomplaint fromaParis/WTO country alleging denial ofthe
Section 34priority righttoitsnon-national domiciliary ortoanon-national having arealandeffective
industrial orcommercial establishment onitsterritory.
9. There isnomention ofcollective marks intheCanadian Trade-marks Act. Inlightofthis,
please confirm thatCanada isincompliance withArticle 7bisoftheParis Convention (1967) in
conjunction withArticle 2.1oftheTRIPS Agreement.
Canada fullycomplies withArticle 7bisoftheParis Convention, viatheTrade-marks Act
provisions withrespect tocertification marks. Seethedefinition inSection 2(2)andthesubstantive
provisions inSections 23-25.
Sections 23through 25oftheTrade-marks Actprovide forprotection ofcertification marks,
which aredefined as:
“amark thatisusedforthepurpose ofdistinguishing orsoastodistinguish wares orservices
thatareofadefined standard withrespect to
(a) thecharacter orquality ofthewares orservices;IP/C/W/51
Page9
(b) theworking conditions under which thewares havebeen produced orthe
services performed;
(c) theclassofpersons bywhom thewares havebeenproduced ortheservices
performed; or
(d) theareawithin which thewares havebeenproduced ortheservices performed;
from wares orservices thatarenotofthatdefined standard. ”
Theexpression “collective mark”isnotdefined intheParis Convention (1967). However,
p.130oftheGuide totheApplication oftheParisConvention fortheProtection ofIndustrial Property,
G.H.C. Bodenhausen, states that:
“...These marks...can roughly besaidtobesigns which serve nottodistinguish thegoods
orservices ofoneenterprise fromthose ofotherenterprises, buttodistinguish thegeographical
origin orother common characteristics ofgoods orservices ofdifferent enterprises which use
thecollective mark under thecontrol ofitsowner .These marks generally imply acertain
guarantee ofquality. ”(italics inoriginal)
ItisCanada 'sposition thatcertification marks under theTrade-marks Actfallwithin theconcept
ofcollective marks, asunderstood intheParis Convention (1967).
Industrial Designs
10. DoesCanadianlegislationprovidefortemporaryprotectionofindustrialdesignsandtrade-marks
thatareexhibited"atofficialorofficiallyrecognizedinternationalexhibitions"heldinCanada(Article11
oftheParis Convention (1967) inconjunction withArticle 2.1oftheTRIPS Agreement), andifyes,
onwhatbasis andunder whatconditions?
Canada hasnodiscrete provision governing temporary protection forindustrial designs and
trademarks thatareexhibited. Such items would beprotectable bythegrace period provided under
sub-section 6(3)oftheIndustrial Designs Act.
With respect totrademarks, under sub-section 16(3) oftheTrade-marks Act,aperson may
apply foratrademark registration onthebasisoftheproposed useofthatmark inCanada. According
totheGuide totheApplication oftheParis Convention fortheProtection ofIndustrial Property,
G.H.C. Bodenhausen, Article 11"...leaves thedomestic legislation ofamember Statefreetochoose
themeans foroffering suchprotection." (p.150).
REPLIES TOQUESTIONS POSED BYTHE UNITED STATES
1. Please explain whether, inthedetermination ofwhether amarkis"well-known" under Canadian
law,account istaken ofknowledge ofthemark intherelevant sector ofthepublic andofthemark
inthepublic atlarge. Ifnot,please explain howCanadian lawisconsistent withTRIPS Article 16.2.
According totheGuide totheParis Convention fortheProtection ofIndustrial Property,
G.H.C. Bodenhausen, "Thepurpose of[Article 6bis]istoavoid theregistration anduseofatrademark,
liable tocreate confusion withanother mark already wellknown inthecountry ofsuchregistrationIP/C/W/51
Page10
oruse,although thelatter well-known mark isnot,ornotyet,protected inthatcountry byaregistration
which would normally prevent theregistration oruseofaconflicting mark." (p.90).Also, "Whether
atrademark iswellknown inacountry willbedetermined byitscompetent administrative orjudicial
authorities."
Under paragraph 16(1)(a) oftheTrade-marks Act,atrademark isnotregistrable ifithasbeen
previously usedinCanada ormade known inCanada byanyother person. Thatdetermination ismade
bytheRegistrar, either during theexamination process or,based onevidence provided byanopponent,
during anopposition. Itmayalsobedetermined bythecourt onanexpungement proceeding under
Section 45orSection 57.
Rightholders ofwell-known marks would havetherighttobring anaction against acompeting
userunder paragraph 7(b)orparagraph 7(d)oftheTrade-marks Act,forthecommon lawtortofpassing
off,orforthedelicts ofunfair competition (délitdelaconfusion, délitdelasubstitution ,ordélitdu
dénigrement )under Article 1457 oftheCivilCode ofQuébec .
Inallofthese procedures thecompetent authority would takeintoaccount allthesurrounding
circumstances, including knowledge ofthemark intherelevant sector (andinthepublic atlarge).
2. Pursuant totheCharter oftheFrench Language (1977, Province ofQuebec), marks registered
bybusinesses inQuebec mustbeintheFrench language unless thereisnoFrench language equivalent
forthemark. Please explain howthisprovision isconsistent withTRIPS Article 20,which states that
useofatrademark shallnotbeunjustifiably encumbered byspecial requirements, suchasuseofthe
mark inaspecial form.
Section 51oftheCharter oftheFrench Language requires that"Every inscription onaproduct,
onitscontainer oronitswrapping, oronaleaflet, brochure orcardsupplied withit....must bedrafted
inFrench...." However, pursuant toSection 53ofthesame statute, thegovernment ofQuebec is
authorized tomake specific derogations fromthegeneral rule. TheRegulation respecting thelanguage
ofcommerce andbusiness (partofDecree 1756-93, of8December 1993, published intheOfficial
Gazette ofQuebec of22December 1993), provides thattrademarks recognized under theTrade-marks
Actmaybewritten exclusively inalanguage other thanFrench, except ifaFrench version ofthe
trademark hasbeen registered. Therefore, thisisnotaninstance ofanencumbrance byspecial
requirements.
3. Please explain howgeographical indications areprotected under Canadian law,asrequired
byTRIPS Articles 22and23.
Canada complies withArticle 22oftheTRIPS Agreement. TRIPS Article 22.2requires Canada
toprovide alegalmeans forinterested parties toprevent certain misleading andunfair practices. In
Canada, arightholder could bring aprivate action against aperson whomade useofamark which
waslikely tomislead thepublic astothegeographical origin ofproducts other thanwines andspirits
under sub-paragraph 7(d)(ii) oftheTrade-marks Act,which provides asfollows:
"Noperson shall...make use,inassociation withwares orservices, ofanydescription that
isfalseinamaterial respect andlikely tomislead thepublic asto...the geographical origin...of
thewares orservices."IP/C/W/51
Page11
Inappropriate circumstances, arightholder could alsobring anaction under paragraph 7(b)
oftheTrade-marks Act,which provides asfollows:
"Noperson shall...(b) direct public attention tohiswares, services orbusiness insuchaway
astocause orbelikely tocause confusion inCanada, atthetimehecommenced sotodirect
attention tothem, between hiswares, services orbusiness andthewares, services orbusiness
ofanother."
orunder sub-paragraph 7(d)(i), which provides that:
"Noperson shall...(d) make use,inassociation withwares orservices, ofanydescription
thatisfalseinamaterial respect andlikely tomislead thepublic asto:
(i) thecharacter, quality, quantity orcomposition ...ofthewares orservices."
Another possible ground foranaction would beSection 10oftheTrade-marks Act,which
provides asfollows:
"WhereanymarkhasbyordinaryandbonafidecommercialusagebecomerecognizedinCanada
asdesignatingthekind,quality,quantity,destination,value,placeoforiginordateofproduction
ofanywares orservices, noperson shalladopt itasatrade-mark inassociation withsuchwares
orservices orothers ofthesame general classoruseitinawaylikely tomislead, norshall
anyperson soadopt orsouseanymark sonearly resembling thatmark astobelikely tobe
mistaken therefore."
Ofcourse, arightholder might alsoapply toacourt toprevent theimportation intoCanada
ofgoods containing anindication ofplace oforigin thathasbeenunlawfully applied tothem under
sub-section 53(i)oftheTrade-marks Act,which provides asfollows:
"Where acourt issatisfied, onapplication ofanyinterested person, thatanyregistered trade-
mark oranytrade-name hasbeenapplied toanywares thathavebeenimported intoCanada
orareabout tobedistributed inCanada insuchamanner thatthedistribution ofthewares
would becontrary tothisAct,orthatanyindication ofaplace oforigin hasbeenunlawfully
applied toanywares, thecourtmaymake anorder fortheinterim custody ofthewares, pending
afinaldetermination ofthelegality oftheirimportation ordistribution inanaction commenced
within suchtimeasisprescribed bytheorder."
Organizationsresponsibleforgeographicalindicationsmightavailthemselvesofthecertification
marks provisions oftheTrade-marks Act(ss.23-25), which provide asfollows:
"23. (1) Acertification mark maybeadopted andregistered onlybyaperson whois
notengaged inthemanufacture, sale,leasing orhiring ofwares ortheperformance ofservices
suchasthose inassociation withwhich thecertification mark isused.
(2) Theowner ofacertification mark maylicense others tousethemark in
association withwares orservices thatmeet thedefined standard, andtheuseofthemark
accordingly shallbedeemed tobeusedthereof bytheowner.
(3) Theowner ofaregistered certification mark mayprevent itsusebyunlicensed
persons orinassociation withanywares orservices inrespect ofwhich themark isregistered
buttowhich thelicence doesnotextend.IP/C/W/51
Page12
(4) Where theowner ofaregistered certification mark isanunincorporated body,
anyaction orproceeding toprevent unauthorized useofthemark maybebrought byany
member ofthatbody onbehalf ofhimself andallother members thereof.
24. With theconsent oftheowner ofacertification mark, atrade-mark confusing with
thecertification mark may,ifitexhibits anappropriate difference, beregistered bysome other
person toindicate thatthewares orservices inassociation withwhich itisusedhavebeen
manufactured, sold, leased, hired orperformed byhimasoneofthepersons entitled touse
thecertification mark, buttheregistration thereof shallbeexpunged bytheRegistrar onthe
withdrawal atanytimeoftheconsent oftheowner ofthecertification mark oronthe
cancellation oftheregistration ofthecertification mark.
25. Acertification mark descriptive oftheplace oforigin ofwares orservices, andnot
confusing withanyregistered trade-mark, isregistrable iftheapplicant istheadministrative
authority ofacountry, state, province ormunicipality including orforming partofthearea
indicated bythemark, orisacommercial association having anoffice orrepresentative in
thatarea, buttheowner ofanymark registered under thisSection shallpermit theuseofthe
mark inassociation withanywares orservices produced orperformed intheareaofwhich
themark isdescriptive."
Inaddition, there isthepossibility ofbringing anaction forthecommon lawtortofpassing
offoranaction forthecivillawdélitdelaconfusion, délitdelasubstitution ordélitdudénigrement ,
under Article 1457oftheCivilCode ofQuebec ,(which dealswithunfair competition), which provides
asfollows:
"Every person hasadutytoabide bytherules ofconduct which lieupon him,according to
thecircumstances, usage orlaw,soasnottocause injury toanother.
Where heisendowed withreason andfailsinthisduty, heisresponsible foranyinjury he
causes toanother person andisliable toreparation fortheinjury, whether itbebodily, moral
ormaterial innature.
Heisalsoliable, incertain cases, forreparation forinjury caused toanother byanyactor
faultofanother person orbythethings inhiscustody."
Inaddition, prosecutions maybebrought bythestate, inresponse tocomplaints ofmisleading
advertising under Section 52oftheCompetition Actoranyprovincial consumer protection legislation.
Section 52oftheCompetition Actprovides asfollows:
"(1) Noperson shall, forthepurpose ofpromoting, directly orindirectly, thesupply or
useofaproduct orforthepurpose ofpromoting, directly orindirectly, anybusiness interest,
byanymeans whatever:
(a) make arepresentation tothepublic thatisfalseormisleading inamaterial
respect;
(b) make arepresentation tothepublic intheform ofastatement, warranty or
guarantee oftheperformance, efficacy orlength oflifeofaproduct thatis
notbased onanadequate andproper testthereof, theproof ofwhich lieson
theperson making therepresentation;IP/C/W/51
Page13
(c) make arepresentation tothepublic inaform thatpurports tobe:
(i) awarranty orguarantee ofaproduct; or
(ii) apromise toreplace, maintain orrepair anarticle oranypartthereof
ortorepeat orcontinue aservice untilithasachieved aspecified result;
iftheform ofpurported warranty orguarantee orpromise ismaterially
misleading orifthere isnoreasonable prospect thatitwillbecarried out;
or
(d) make amaterially misleading representation tothepublic concerning theprice
atwhich aproduct orlikeproducts havebeen, areorwillbeordinarily sold,
andforthepurposes ofthisparagraph arepresentation astoprice isdeemed
torefertotheprice atwhich theproduct hasbeensoldbysellers generally
intherelevant market unless itisclearly specified tobetheprice atwhich
theproduct hasbeensoldbytheperson bywhom oronwhose behalf the
representation ismade.
2. Forthepurposes ofthissection andsection 53,arepresentation thatis:
(a) expressed onanarticle offered ordisplayed forsale,itswrapper orcontainer;
(b) expressed onanything attached to,inserted inoraccompanying anarticle
offered ordisplayed forsale,itswrapper orcontainer, oranything onwhich
thearticle ismounted fordisplay orsale;
(c) expressed onanin-store orother point-of-purchase display;
(d) made inthecourse ofin-store, door-to-door ortelephone selling toaperson
asultimate user; or
(e) contained inoronanything thatissold,sent,delivered, transmitted orinany
other manner whatever made available toamember ofthepublic;
shallbedeemed tobemade tothepublic byandonlybytheperson whocaused therepresntation
tobesoexpressed, made orcontained and,where thatperson isoutside Canada, by:
(f) theperson whoimported thearticle intoCanada, inacasedescribed in
paragraph (a),(b)or(e);and
(g) theperson whoimported thedisplay intoCanada, inacasedescribed in
paragraph (c).
Idem
3. Subject tosub-section (2),everyone who, forthepurpose ofpromoting, directly or
indirectly, thesupply oruseofaproduct oranybusiness interest, supplies toawholesaler,
retailer orother distributor ofaproduct anymaterial orthing thatcontains arepresentation
ofanature referred toinsubsection (1)shallbedeemed tohavemade thatrepresentation to
thepublic.IP/C/W/51
Page14
4. Inanyprosecution foracontravention ofthisSection, thegeneral impression conveyed
byarepresentation aswellastheliteral meaning thereof shall betaken intoaccount in
determining whether ornottherepresentation isfalseormisleading inamaterial respect.
5. Anyperson whocontravenes subsection (1)isguilty ofanoffence andliable:
(a) onconviction onindictment, toafineinthediscretion ofthecourt orto
imprisonment foratermnotexceeding fiveyears ortoboth; or
(b) onsummary conviction, toafinenotexceeding twenty-five thousand dollars
ortoimprisonment foratermnotexceeding oneyearortoboth."
TRIPS Article 22.3requires Canada torefuse orinvalidate theregistration ofatrademark in
certain circumstances.
Sub-section 12(1) oftheTrade-marks Actprovides asfollows:
"Subject toSection 13,atrade-mark isregistrable ifitisnot...
(b) whether depicted, written orsounded, either clearly descriptive ordeceptively
misdescriptive intheEnglish orFrench language ofthecharacter orquality
ofthewares orservices inassociation withwhich itisusedorproposed to
beusedoroftheconditions oforthepersons employed intheirproduction
oroftheirplace oforigin...
(e) amark ofwhich theadoption isprohibited bysection 9or10..."
(Section 10isquoted above.)
Geographical indications forwines andspirits areprotected inaccordance withSections 11.11
to11.19, Section 11.2, andparagraphs 12(1)(g) and(h)oftheTrade-marks Act.Theprocedure for
requesting thatprotection isexplained inthefollowing paragraphs.
Theapplications andreview process published asanIndustry NotebyAgriculture andAgri-food
Canada (AAFC) on31July1996, isintended asanadministrative procedure toallow forgeographical
indications forwines andspirits tobeadded tothelistofprotected geographical indications asprovided
inSection 11.12 oftheTrade-marks Act,provided thatthecriteria oftheActarecomplied with. The
newrightsconferredbySections11.14and11.5oftheTrade-marksActapplyonlytothosegeographical
indications entered ontothelistofprotected geographical indications.
Onlythosegeographicalindicationsforwinesandspiritswhichmeetthecriteriaofageographical
indication, asdefined inArticle 22.1oftheTRIPS Agreement, andwhich areprotected andusedin
thecountry oforigin asprovided forinArticle 24.9oftheTRIPS Agreement, maybeadded tothe
listofprotected geographical indications. Theinformation tobeprovided foreachgeographical
indication through theapplication process isnecessary inorder toestablish conformity withtheabove
criteria andisconsistent withthatrequired under Section 11.12(3) oftheTrade-marks Act.
Foradministrative purposes, theapplication mustbesubmitted byaresponsible authority for
thewineorspirit inquestion. Aresponsible authority is,inrelation toawineorspirit, theperson,
firm, orother entity, thatbyreason ofstateorcommercial interest, issufficiently connected withand
knowledgeable ofthatwine orspirit tobeparty toanyproceedings inrespect ofanobjection filed
under sub-section 11.13(1) oftheTrade-marks Act.IP/C/W/51
Page15
Within threemonths afterthepublication intheCanada Gazette oftheintention bytheMinister
ofIndustry toinclude aparticular wine orspirit geographical indication onthelistofprotected
geographical indications, anyperson interested mayfileastatement ofobjection withtheRegistrar
ofTrade-marks. Objections maybebased onlyonthegrounds thattheproposed indication isnota
geographical indication, within themeaning ofSection 2oftheTrade-marks Act(which isconsistent
withTRIPS Article 22.1).
(Additional information ontheapplications and review process isavailable at
"http://www.agr.ca/cb/newsrle.htlm".)
4. Please describe themethods bywhich industrial designs areprotected inCanada, inparticular:
- theformorforms ofintellectual property usedtoprotect thedesign
(e.g., patent, copyright, suigeneris);
- theconditions thatmustbesatisfied toobtain thegrant ofsuchprotection
(e.g., whether designs mustbenewororiginal andtheparameters ofthese concepts),
andabriefdescription oftheregistration orgranting procedure;
- thenature oftherights granted andthetermofprotection provided;
- thenature ofremedies available totheowner ofeachtypeofprotection, including
adescription oftheconditions thatmaybeimposed (e.g., whether commercial use
isrequired); and
- whether anyexceptions toprotection orrights existforeachtypeofintellectual property
involved.
(a) Protection forindustrial designs isdependent onregistration under theIndustrial Design
Act.Copyright protection isalsoautomatic under theCopyright Actforanydesign
originally created asawork ofart.Subject tocertain exceptions, thecopyright ina
design willbeunenforceable where thedesign isapplied toauseful article andthe
article isreproduced inaquantity ofmore than50orusedtoproduce more than50
useful articles.
(b) Industrial design. Adesign mustbebothoriginal andnovel. Original, meaning
thatthedesign wasdeveloped independently bythefirstproprietor and,novel, inthat
thedesign isnotidentical withorclosely resembles aregistered design. (Applicants
arerequired tomake adeclaration oforiginality intheapplication form.)
Theregistration process inCanada begins onthedatethatanapplication isfiledwith
theCanadian Intellectual Property Office. Applications aredealtwithinorder offiling
date. Theapplication isfirstclassified andthenundergoes aformal examination by
which thedesign iscompared against registered designs fornovelty andregistrability.
Ifapproved, thedesign isregistered andacertificate ofregistration issenttotheowner.
Copyright. Copyright protection fordesigns arises automatically without a
registration requirement. However, registration canbeuseful inalitigation context,
since under Section 53oftheCopyright Actitcreates arebuttable presumption of
ownershipofcopyrightanditeliminatesthe"innocentinfringer"limitationinSection39
oftheAct.IP/C/W/51
Page16
(c) Industrial Design. Registration ofanindustrial design provides theowner with
theexclusive righttoprevent others frommaking, using, renting orselling thedesign
inCanada. Thetermofprotection is10years from thedateofregistration, subject
tothepayment ofmaintenance fees.
Copyright. Copyright inCanada istheexclusive righttoreproduce awork orto
allow someone elsetoreproduce it.Subject tocertain exceptions, copyright expires
attheendofthecalendar year, 50years fromthedeath oftheauthor. Adesign that
isnever published hasunlimited copyright protection. Asinother members ofthe
Berne Convention, inCanada, copyright protects onlytheformofexpression ofawork
anddoesnotprotect against theindependent creation ofthesame orasimilar work.
(d) Industrial Design. Anactionforinfringementofanexclusiverightmaybebrought
bytheowner ofthedesign orbyanexclusive licensee ofanyright therein. The
remedies thatmaybemade byacourt under infringement proceedings include orders
forrelief bywayofinjunction andtherecovery ofdamages orprofits; forpunitive
damages; andforthedisposal ofanyinfringing article orkit.Commercial useisnot
required byanowner inorder tohaveaccess toavailable remedies.
Copyright. Copyright owners havebothcivilandcriminal remedies available to
themwhere awork hasbeeninfringed. Thecivilremedies are"bywayofinjunction,
damages, accounts ordelivery upandotherwise thatmaybeconferred bylawforthe
infringement ofaright" (Copyright Act,Section 34).
Alternatively, acopyright owner maysuefortheinfringer 'sprofits from theactof
infringement (Section 35).Where, however, adefendant isnotaware oftheexistence
ofcopyright inawork, thecopyright owner isrestricted totheremedy ofinjunction
(Section 39),unless thecopyright wasregistered. Under Section 44.1, acopyright
owner mayapply totheFederal Court foranorder detaining goods imported into
Canada iftheyinfringe copyright.
Section 42makes itanoffence toknowingly reproduce, sell,exhibit, perform orimport
infringing works onacommercial scale.
(e) With respect toindustrial design rights, competition lawprovides thatcompulsory
licences maybeordered inrespect ofaregistered design where there hasbeencertain
anti-competitive behaviour.
Sub-sections 27(2) and(3)oftheCopyright Actcontain anumber ofexceptions to
copyright infringement, many ofwhich aretechnical innature. Paragraph 27(2)(a)
contains anexception for"anyfairdealing withawork forthepurpose ofprivate study
orresearch". Theconcept offairdealing ismuch narrower thantheUSconcept of
"fairuse". Inaddition, paragraph 27(2)(b) deals withtheuseofmoulds, casts, etc.,
andparagraph 26(2)(c) deals withworks ofartistic craftsmanship.
5. Please explain howtextile designs areprotected under yourlaw.
Such designs areprotectable under theIndustrial Designs Act.
Inaddition, suchdesigns areprotectable under theCopyright Act.Ifthose designs areused
for"material thathasawoven orknitted pattern orthatissuitable forpiece goods orsurface coveringsIP/C/W/51
Page17
orformaking wearing apparel" (within themeaning ofparagraph 64(3)(c)), theremedies mentioned
intheanswer toquestion 4forinfringement ofcopyright would apply totheinfringement ofatextile
design, eventhough thatdesign hadbeenreproduced onmore than50copies ofauseful article.