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T-463-87
Dennison Manufacturing Company and Dennison Manufacturing Canada Inc. (Applicants)
v.
Minister of National Revenue (Respondent)
INDEXED AS: DENNISON MANUFACTURING CO. v. M.N.R.
Trial Division, Dubé J.—Ottawa, April 9 and May 7, 1987.
Copyright — Infringement — Motion for mandamus pursu ant to Copyright Act, s. 27 compelling Minister to deem copies of attachment tags to be included in Schedule C, Customs Tariff — No legal right to performance of duty — Goods must be included in Schedule C to be prohibited — Only tariff item referring to copyright works merely stating "reprints of Canadian copyrighted works" — Uncertain whether copyright in design extending to three-dimensional models, or whether goods subject to copyright as "artistic works" — Registrabili- ty under Industrial Design Act may also bar goods from copyright.
Customs and Excise — Customs Tariff — S. 14 prohibiting importation of goods in Schedule C — Only tariff item referring to copyrighted works merely stating "reprints of Canadian copyrighted works" — Copyright Act, s. 27 enabling owner of infringed copyright work falling under specific tariff item to give notice to Department to bar importation of infringing copies — Questionable whether goods in question (attachment tags) subject to copyright.
Industrial design — Attachment tags or cavity attachment molds — Likely registrable under Industrial Design Act, based on registration of similar goods — Barred from copyright pursuant to Copyright Act, s. 46.
Judicial review — Prerogative writs — Mandamus — Motion for mandamus compelling Minister to deem copies of attachment tags to be included in Schedule C, Customs Tariff pursuant to Copyright Act, s. 27 — No legal right to perform ance of duty — Goods must be included in Schedule C to be prohibited — Goods may not be subject to copyright as required by tariff item.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Copyright Act, R.S.C. 1970, c. C-30, ss. 2, 27, 46.
Customs Tariff, R.S.C. 1970, c. C-41, s. 14 (as am. by
S.C. 1986, c. 1, s. 175), Schedule C.
Industrial Design Act, R.S.C. 1970, c. I-8.
Industrial Designs Rules, C.R.C., c. 964, s. 11(1)(a).
CASES JUDICIALLY CONSIDERED
CONSIDERED:
Bayliner Marine Corp. v. Dorai Boats Ltd., [1986] 3 F.C. 421; 10 C.P.R. (3d) 289 (C.A.); Cimon Ltd. et al v. Bench Made Furniture Corpn. et al, [1965] 1 Ex.C.R. 811; (1964), 48 C.P.R. 31; 30 Fox Pat. C. 77.
REFERRED TO:
Monsanto Canada Inc. v. Minister of Agriculture (1986), 8 C.P.R. (3d) 517 (F.C.T.D.).
COUNSEL:
John S. Macera for applicants. Meg Kinnear for respondent.
SOLICITORS:
Macera & Jarzyna, Ottawa, for applicants.
Deputy Attorney General of Canada for respondent.
The following are the reasons for order ren dered in English by
Dust J.: This originating motion seeks a man- damus compelling the Minister of National Reve nue ("the Minister") to deem, under section 27 of the Copyright Act,' to be included in Schedule C of the Customs Tariff , 2 copies of the attachment tags or cavity attachment molds in which copy right subsists in Canada pursuant to copyright registration number 355,058, and compelling the Minister to authorize customs officers to prohibit the importation into Canada of any three-dimen-
R.S.C. 1970, c. C-30. 2 R.S.C. 1970, c. C-41.
sional copies of the attachments which infringe the copyright of the applicants ("Dennison").
On November 26, 1986 Dennison wrote to the Minister indicating that the above copyright was being infringed by the importation into Canada of three-dimensional copies from South Korea, requesting pursuant to section 27 of the Copyright Act that such infringing copies be deemed to be included in Schedule C of the Customs Tariff, and seeking to prohibit the importation of the copies. Section 27 reads as follows:
27. Copies made out of Canada of any work in which copyright subsists that if made in Canada would infringe copyright and as to which the owner of the copyright gives notice in writing to the Department of National Revenue that he is desirous that such copies should not be so imported into Canada, shall not be so imported, and shall be deemed to be included in Schedule C to the Customs Tariff, and that Schedule applies accordingly.
Under section 14 of the Customs Tariff [as am. by S.C. 1986, c. 1, s. 175] the importation into Canada of any goods enumerated, described or referred to in Schedule C is prohibited. The only reference to copyright works in Schedule C is tariff item 99202-1:
99202-1. Reprints of Canadian copyrighted works, and reprints of British copyrighted works which have been copyrighted in Canada.
By letter dated January 12, 1987 the Minister outlined his position. In his view, although section 27 of the Copyright Act provides for the owner to give notice to the Department, it does not follow that all works referred to in such notice would automatically be prohibited: the Copyright Act has to be read in conjunction with the Customs Tariff and accordingly the goods in question must be included in Schedule C in order to be so prohibited.
In my view mandamus ought not to issue in this matter. Mandamus is a discretionary remedy and
question.' In the instant case the applicants have not demonstrated a clear legal right to the performance of the duty to be carried out by the Minister under section 27 of the Copyright Act, for these four reasons.
Firstly, although Dennison has a copyright registration for the design itself, it has no clear legal right to extend that copyright protection to three-dimensional models derived therefrom. In Bayliner Marine Corp. v. Dorai Boats Ltd. 4 the respondent had taken an action for a copyright infringement against the appellant in respect of plans for the fibreglass hull and deck for two boats. The Court found [at pages 432 F.C.; 297 C.P.R.] that the plans were "designs capable of being registered under the Industrial Design Act" and therefore not subject to copyright. Having come to that conclusion, the Court did not find it necessary to deal with the remaining issue in the appeal, namely whether as a matter of law the copyright in a plan is infringed by the making of a copy of an object made according to the plan. Mahoney J. was convinced [at pages 433 F.C.; 297 C.P.R.] "that it would be especially unwise to express an opinion on this remaining issue by way of obiter dicta." Mandamus, therefore, is not the proper vehicle to resolve that highly debatable issue.
Secondly, section 46 of the Copyright Act pro vides that the Act does not apply to designs cap able of being registered under the Industrial Design Act, 5 except designs that are not intended to be used as models to be multiplied by any industrial process. Paragraph 11(1)(a) of the Industrial Designs Rules [C.R.C., c. 964] provides that a design shall be deemed to be used as a model under section 46 of the Copyright Act where it is reproduced in more than 50 single articles. Clearly, the attachments in question are
3 See Monsanto Canada Inc. v. Minister of Agriculture (1986), 8 C.P.R. (3d) 517 (F.C.T.D.).
4 [1986] 3 F.C. 421; 10 C.P.R. (3d) 289 (C.A.).
5 R.S.C. 1970, c. I-8.
ought not to be granted without proof of a specific legal right to the performance of the duty in intended to be and have been so multiplied.
In the Bayliner case aforementioned, the Feder al Court of Appeal adopted the definition of the word "design" from the decision of Jackett P. in Cimon Ltd. et al v. Bench Made Furniture Corpn. et ale' at pages 831 Ex.C.R.; 49-51 C.P.R. which reads as follows:
The sort of design that can be registered is therefore a design to be "applied" to "the ornamenting" of an article. It must therefore be something that determines the appearance of an article, or some part of an article, because ornamenting relates to appearance. And it must have as its objective making the appearance of an article more attractive because that is the purpose of ornamenting. It cannot be something that deter mines the nature of an article as such (as opposed to mere appearance) and it cannot be something that determines how an article is to be created. In other words, it cannot create a monopoly in "a product" or "a process" such as can be acquired by a patent for an invention. There is, moreover, nothing in the legislation that limits the type of design that may be registered (as was suggested in argument) to those providing for something that is applied to an article after the article comes into existence.
In short, a design relates to the appearance of an article and is meant to make the article more attractive. At first blush, it would appear that the goods in question are amenable to registration under the Industrial Design Act. Very similar items have been registered as industrial designs as revealed by a search of the records of the Copy right and Industrial Design Branch'. The Denni- son design would therefore be barred from copy right pursuant to section 46 of the Copyright Act.
Thirdly, there is at least an arguable case that these goods are not of a type subject to be copy righted. They would not appear to be "artistic works" as defined under section 2 of the Copyright Act:
"artistic work" includes works of painting, drawing, sculpture and artistic craftsmanship, and architectural works of art and engravings and photographs;
6 [1965] 1 Ex.C.R. 811; (1964), 48 C.P.R. 31; 30 Fox Pat. C. 77.
' See paragraph 5 of the affidavit of Thomas R. Boyd, Chief of Examination of the Department.
Fourthly, in my view, the Copyright Act and the Customs Tariff have to be read together. Section 14 of the Customs Tariff stipulates that importa tion into Canada of any goods enumerated in Schedule C is prohibited. Item 99202-1 under Schedule C, the only item dealing with copyright, merely lists reprints of Canadian copyrighted works as prohibited goods. Section 27 of the Copyright Act is a trigger section enabling the owner of an infringed copyright work that would fall under a specific tariff item to give notice to the Department to bar the infringing copies from Canada. Thereupon such infringing copies shall not be imported and shall be deemed to be includ ed in Schedule C. To construe section 27 of the Copyright Act otherwise would mean in effect that the owner of any copyrighted item would unilater ally amend the Customs Tariff merely by giving notice to the Department that its goods have been infringed upon.
Consequently, the motion is denied with costs.
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