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T-59-82
Ports International Limited (Appellant) v.
Registrar of Trade Marks and Alex E. MacRae & Co. (Respondents)
Trial Division, Jerome A.C.J.—Toronto, March 15; Ottawa, December 15, 1983.
Trade marks — Appeal from Registrar's decision expunging appellant's registration of trade mark "Ciao" — Affidavit filed showing use in response to s. 44 application alleging donation of clothing bearing trade mark to Toronto Symphony for fund-raising sale — Appeal dismissed — Normal course of trade being commercial sale of garments — Charitable donations of garments normal course of trade, but not when standing alone isolated from any proof of normal sales activity — No evidence of trading in garments — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 44, 56.
COUNSEL:
D. R. Bereskin, Q.C. for appellant.
M. I. Thomas for respondent, Registrar of
Trade Marks.
S. Anissimoff and P. Salsbury for respond
ent, Alex E. MacRae & Co.
SOLICITORS:
Rogers, Bereskin & Parr, Toronto, for appellant.
Deputy Attorney General of Canada for respondent, Registrar of Trade Marks. MacBeth & Johnson, Toronto, for respond ent, Alex E. MacRae & Co.
The following are the reasons for judgment rendered in English by
JEROME A.C.J.: This appeal under section 56 of the Trade Marks Act' came on for hearing before me at Toronto, Ontario, on March 15, 1983. The appeal is taken from a decision of the Registrar of Trade Marks dated November 9, 1981, upon an application taken pursuant to section 44 of the
' R.S.C. 1970, c. T-10.
Trade Marks Act, expunging the appellant's Canadian registration for the trade mark "Ciao".
The facts are quite simple and not in dispute. The trade mark in issue was registered on Novem- ber 28, 1975. The respondent, Alex E. MacRae & Co. requested the Registrar of Trade Marks to issue a notice under section 44, which he did on March 2, 1980. In response to the notice, the appellant filed the affidavit of Ephraim Harold Shapiro. The relevant portions of the affidavit are as follows:
The CIAO line of wearing apparel has continuously been on sale in Canada by Ports International Limited since 1970.
The last use of the trade mark prior to the date of the Section 44 Notice occurred in about March, 1980... .
The document goes on to explain that a number of garments with the label affixed were delivered to The Toronto Symphony for the purpose of a fund- raising sale. The Registrar was unsatisfied with that response and so indicated in a letter dated September 9, 1980. In response to that letter, the appellant filed a second affidavit. Counsel for the applicant referred to portions which confirm that both the section 44 notice and the delivery of the goods to The Toronto Symphony were in the same month, that the donation was on the understanding that the Symphony was going to sell all dresses and more particularly in paragraph 4:
In the normal course of trade, the applicant donates various items of ladies and mens clothing to charitable foundations for resale. These donations have in the past proven to be very effective in promoting the applicant's lines of men's and ladies' clothing.
I also permitted the use of a second affidavit, that of Claire M. King, the co-convenor of The Toronto Symphony event, as clarification of the following statement in the Shapiro affidavit:
I am informed by Claire M. King, co-convenor of The New Shop of The Toronto Symphony Women's Committee, and verily believe, that a quantity of women's clothing was received by The Toronto Symphony Women's Committee within one month of February 4, 1980 from Ports as a donation for resale at said Committee's Rummage Sale.
During his submission, counsel for the appellant conceded that these affidavits constituted the only evidence of use and that in order to succeed upon
the appeal, he must persuade me in the language of subsection 44(3) that this was a use in the normal course of trade, for the purpose of distin guishing the wares of the owner of the trade mark from the goods of others. During the course of his very able submission, I indicated from the bench that he had not done so, but that I would give the matter some consideration. These reasons confirm that the appeal must fail.
There is no evidence of trading in these gar ments. The Shapiro affidavit alleges that garments under this label have been continuously on sale in Canada since 1970 and yet there is not a scrap of evidence either before the Registrar or before me to support that contention. The normal course of trade in this matter is commercial sale of dresses either as manufacturer, wholesaler or retailer. It is, of course, normal that those in the garment business would give dresses to charity auctions in the anticipation of engendering goodwill and wider identification of the label. It is normal that such things would be done in the hope of increasing sales, the normal course of trade. That does not make the charitable donation a transaction in the normal course of trade when it stands alone and in complete isolation from any proof of normal sales activity. Since the only evidence that the appellant could point to was the charitable donation, it seems to me that it is not only not evidence of use in the normal course of trade, it is evidence which is more consistent with non-use in the commercial sense.
There is nothing in the material or in the sub mission of counsel before me that persuades me that the conditions of subsection 44(3) have been met. The appeal is therefore dismissed with costs.
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