Judgments

Decision Information

Decision Content

A-603-86
Mr. Submarine Limited (Appellant) (Plaintiff)
v.
Amandista Investments Limited carrying on busi ness as Mr. Subs'N Pizza and Mr. 29 Minite Subs'N Pizza (Respondent) (Defendant)
INDEXED AS: MR. SUBMARINE LTD. V. AMANDISTA INVEST MENTS LTD.
Court of Appeal, Thurlow C.J., Urie and Desjar- dins JJ.—Halifax, November 25; Ottawa, Decem- ber 16, 1987.
Trade marks — Infringement — Appellant registered owner of trade mark "Mr. Submarine" — Denied injunction to prevent respondent from using trade marks "Mr. Subs'N Pizza" and "Mr. 29 Minite Subs'N Pizza" — Infringement claim based on ss. 19 and 20 Trade Marks Act — Right of action for infringement based on taking of part of registered mark not maintainable under s. 19 alone — Must arise, if at all, under s. 20 or 22 — No taking or use by respondent of appellant's mark — Marks manifestly similar in some respects — Likelihood of confusion — Appeal allowed.
The appellant, registered owner of the trade mark "Mr. Submarine", specializes in the sale of submarine sandwiches. It sought, but was denied, an injunction to prevent the defendant from using the trade marks "Mr. Subs'N Pizza" and "Mr. 29 Minite Subs'N Pizza" in relation to the sale of submarine sandwiches and pizza. The facts show that the appellant's mark has been used and advertised extensively, that its business focusses on walk-in trade while that of the respondent focusses on telephone orders, and that both businesses have been operat ing since 1976 in the Halifax-Dartmouth area. The appellant submits that by using "Mr. Subs" as part of its trade mark, the respondent has taken an essential element of the appellant's trade mark, thereby infringing section 19 of the Trade Marks Act which gives to the owner of a registered trade mark the exclusive right to the use of that mark. The appellant also submits that the Trial Judge erred in finding that the respond ent's marks were not confusing with those of the appellant.
Held, the appeal should be allowed.
The appellant's submission that its exclusive right has been infringed by the respondent on the basis of section 19 alone is rejected. It would appear that only the taking of a trade mark as registered can maintain an action based solely on section 19, without reference to any likelihood of confusion (section 20) or depreciation of goodwill (section 22). A right of action based on the taking of a part of the registered mark or on the use of a
similar trade mark must arise, if at all, under section 20 or 22. Support for this view could be found in the reasoning of Noël J. (as he then was) in Schaeren, (Mido G.) and Co. S.A. v. Turcotte et al., [1965] 2 Ex.C.R. 451. That issue was not finally determined since it was clear from the facts of the case that the trade mark "Mr. Submarine" had neither been taken nor used by the respondent.
The Trial Judge was wrong in emphasizing the differences between the trade marks rather than considering their similari ties from the point of view of a consumer with an imperfect recollection of the appellant's mark or business. The Trial Judge also erred in taking into account the parties' different business systems (telephone and delivery system as opposed to walk-in trade), and the fact that the respondent's business is predominantly that of selling pizza. Furthermore, he should not have taken into account the style of lettering, the colouring of the signs and the appearances of the marks on signs, boxes, etc. The latter are relevant considerations in a passing off action. They are irrelevant in a proceeding for infringement of a registered trade mark. They should be given no weight in determining the issue of confusion.
Reference was made to subsection 6(5) of the Act to deter mine the issue of likelihood of confusion. Although no instance of actual confusion had come to light, it was nevertheless found that the use of the marks in the same geographical area was likely to lead to the conclusion that the marks are in some way associated with one another. While the degree of resemblance between the marks is small when the marks are considered as a whole, there are respects in which they are manifestly similar, in particular in the combination of "Mr." with "Submarine" and "Mr." with "Subs". They have partial similarity in appear ance, whether written or printed, in sound, and in ideas sug gested by them. All the marks suggest a business in which submarine sandwiches are sold. Both "Mr. Submarine" and the respondent's marks depend for their distinctiveness in whole or in part on the association of a word meaning a submarine sandwich with the courtesy title "Mr.". The respondent is enjoined from using the word "Mr." in association with the word "submarine" or "subs" or any other word suggestive of submarine sandwiches.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Trade Marks Act, R.S.C. 1970, c. T-10, ss. 6(1),(2), (4),(5), 19, 20.
CASES JUDICIALLY CONSIDERED APPLIED:
Schaeren, (Mido G.) and Co. S.A. v. Turcotte et al., [1965] 2 Ex.C.R. 451.
DISTINGUISHED:
Saville Perfumery Ld. v. June Perfect Ld. and Wool- worth (F.W.) & Co. Ld. (1941), 58 R.P.C. 147 (H.L.).
AUTHORS CITED
Fox, H. G. The Canadian Law of Trade Marks and Unfair Competition, 3rd ed. Toronto: The Carswell Company Limited, 1972.
COUNSEL:
Gregory A. Piasetzki and Robert Wilkes for appellant (plaintiff).
William M. Leahey and Craig R. Berryman for respondent (defendant).
SOLICITORS:
Rogers, Bereskin & Parr, Toronto, for appel lant (plaintiff).
Burton, Lynch, Armsworthy, Ward & O'Neill, Halifax, for respondent (defendant).
The following are the reasons for judgment rendered in English by
THURLOW C.J.: This appeal is from a judgment of the Trial Division [(1986), 9 C.I.P.R. 164; 11 C.P.R. (3d) 425; (1987), 6 F.T.R. 189] which dismissed the appellant's action for infringement of three registered trade marks.
The issue in the appeal is whether the learned Trial Judge erred in failing to find infringement either by the taking and using of an essential part of the appellant's registered trade marks or by using a trade mark or trade name that is confusing with the appellant's marks. On the first point the appellant relied' on section 19 of the Trade Marks Act [R.S.C. 1970, c. T-10] and on the second on section 20. The validity of the appellant's registra tions is not in issue.
The sections referred to provide:
19. Subject to sections 21, 31 and 67, the registration of a trade mark in respect of any wares or services, unless shown to be invalid, gives to the owner the exclusive right to the use
' At the opening of the trial counsel stated that the appellant was not relying on section 7 or on section 22 of the Trade Marks Act.
throughout Canada of such trade mark in respect of such wares or services.
20. The right of the owner of a registered trade mark to its exclusive use shall be deemed to be infringed by a person not entitled to its use under this Act who sells, distributes or advertises wares or services in association with a confusing trade mark or trade name, but no registration of a trade mark prevents a person from making
(a) any bona fide use of his personal name as a trade name, or
(b) any bona fide use, other than as a trade mark,
(i) of the geographical name of his place of business, or
(ii) of any accurate description of the character or quality of his wares or services,
in such a manner as is not likely to have the effect of depreciat ing the value of the goodwill attaching to the trade mark.
As no issue was taken as to the facts as found by the learned Trial Judge, it will be convenient to repeat her summary of them [at pages 165-167 C.I.P.R.; 426-428 C.P.R.; 190-192 F.T.R.]:
The plaintiff seeks an injunction to prevent the defendant using the trade marks "MR. SUBS'N PIZZA" AND "MR. 29 MIN. SUBS'N PIZZA". The plaintiff is the registered owner of the trade mark MR. SUBMARINE, registered December 29, 1972 for use in relation to sandwiches (registration No. 187,539) and registered September 26, 1975 for use in relation to services connected with the operation of restaurants, or the counselling and assisting of others in the operation of restau rants (registration No. 209,714). The first registration was based on use in Canada at least as early as March 15, 1968, the second on use from October 1, 1971. The plaintiff also holds a design registration dated September 1, 1978. It shows the trade mark MR. SUBMARINE in "Cooper Block" lettering dis played in a horizontal format similar to its appearance above. It is registered in relation to sandwiches, cooked or prepared meats such as salami, the operation of restaurants and the counselling and assisting of others in the operation of restaurants.
The plaintiff's business specializes in the sale of submarine sandwiches: an oversized elongated bread roll which is filled with various combinations of meats, vegetables and sauces. The term "submarine" and its diminutive "subs" are generic terms used to describe this particular type of sandwich.
The plaintiff commenced business, with one location, in Toronto in 1968. By 1975 there were 78 locations: 48 in the Toronto area, 24 in Ontario but outside the Toronto area, 5 in Western Canada, 1 in Quebec and none in the Atlantic prov inces. Some of the stores were owned and operated by the plaintiff itself; most, however, were franchise operations.
In 1975 a Mr. Murphy began operating a "subs and pizza" business in Dartmouth, Nova Scotia, at a Windmill Road location. This was eventually to become what is now the defendant's business. The business was run under the name "subs and pizza". It concentrated on delivering those products to customers in response to telephone orders. Some time after 1975 but before 1977 the name was changed to MR. SUBS 'N PIZZA because the Nova Scotia Companies Branch refused to register, as the name of a business, the words "subs and pizza" by themselves; both those words are generic. At approximately the same time that the defendant started calling its business MR. SUBS 'N PIZZA the plaintiff opened a Mr. Submarine franchise on Main Street, in Dartmouth. The two stores are and were approximately 3 miles apart.
It is unclear as to exactly when the name MR. 29 MINITE (Sometimes MIN., sometimes MINIT) SUBS'N PIZZA was adopted but it is clear that by at least 1981 both that and the earlier name, MR. SUBS'N PIZZA, were being used in con nection with defendant's Windmill Road business. In 1983 the defendant opened a second store, at a Quinpool Road location, in Halifax; a third and fourth were opened in 1985. One of these is located at the Woodlawn Shopping Centre in Dart- mouth, three-quarters of a mile distant from the plaintiff's Main Street location.
The plaintiff, at the present time, continues to have only one franchise location in the Halifax-Dartmouth area, that on Main Street, although several other locations (Herring Cove and Quinpool Road) would appear to have been in operation during the years 1980 to 1983. On a country-wide basis the plaintiff now has 234 locations: 73 in the Toronto area; 98 in Ontario but outside the Toronto area; 51 in Western Canada; 6 in Quebec and 6 in the Atlantic provinces (4 of these are in St. John's, Newfoundland, 1 in Saint John, New Brunswick and 1 at the Main Street location in Dartmouth). In general the plaintiff's stores do not deliver the food products they sell to customers. Certainly the Dartmouth operation does not do so. The plaintiff's business is that of selling submarine sandwiches, beverages, etc. to walk-in customers.
As noted above the bulk of the defendant's business comes through telephone orders, not from walk-in trade. The focus of its business is on the speedy delivery of the items ordered. This explains the significance of the "29 min." element of the defendant's trade mark. The defendant promises to deliver an order within 29 minutes from the time at which the telephone order is received. The sale of pizza is a much more significant part of the defendant's business than is the sale of submarine sandwiches. About 70 to 75 per cent of the revenue of the defendant's business comes from the sale of pizza.
It is common ground that the plaintiff's registration gives it the exclusive right, throughout Canada, to the use of its mark
in association with the wares and services described in the registration: s. 19 of the Trade Marks Act, R.S.C. 1970, c. T-10. An infringement of that right occurs when a person uses a trade name or a trade mark which causes confusion with the registered mark.
Further facts which appear from the evidence and which were stressed by the appellant were that the trade mark "Mr. Submarine" has been used and advertised extensively and has become very well known particularly in Toronto and the rest of Ontario and in Western Canada, that sales of sandwiches and drinks by the appellant and its licensees using the trade mark amounted in 1985 to some $58,000,000 and that the Mr. Murphy who began operating the "subs and pizza" business in Dartmouth in 1975 knew of "Mr. Submarine" when in that year he adopted the trade name and trade mark "Mr. Subs'N Pizza".
The appellant's first submission was that, by using "Mr. Subs" as part of its trade mark or trade name, the respondent had taken "an actual or substantial copy of the appellant's trade mark" or "an essential element" of it, that it has thereby infringed the exclusive rights conferred by section 19 and that in such a case it is unnecessary to show a likelihood of confusion. Simply put, the submission is that liability follows from the respondent having done without permission what the appellant had the exclusive right to do.
In support of the submission counsel referred to the following passage from the third edition of The Canadian Law of Trade Marks and Unfair Competition 2 but conceded that there is no Canadian case law to support it.
The taking of an actual or substantial copy of the plaintiffs mark is the easiest method by which infringement may be shown. In such case the plaintiff proves his case by the produc tion of his certificate of registration under s. 53 of the Act. Section 19 gives him the exclusive use of such mark and s. 20 prohibits infringement. It is unnecessary to show that actual deception of customers has taken place or that the use is calculated to deceive. Where the action is based upon appro priation of the plaintiffs mark as registered the plaintiffs action is based on the infringement of his property right and
2 Fox, The Canadian Law of Trade Marks and Unfair Competition, (3rd ed., 1972), at pp. 374-375.
upon the provisions of s. 19 of the Act, giving to the owner of a registered trade mark "the exclusive right to the use throughout Canada of such trade mark". There is no necessity for proving probability of deception but only that the trade mark or a similar trade mark has been used without authorization. Where the trade marks and the wares of the parties are identical it is not necessary to refer to the catalogue of factors in s. 6 of the Act for the purpose of determining the issue of "confusing". It may be noted in passing that the statute law has adopted the criterion of the common law on this particular point. In every case of infringement except that of mere copying, there must be either deception in fact or the reason able probability of deception. Even copying of parts of a mark will not amount to infringement unless there is such a resem blance as to make the copy a confusing mark although it is a matter to be considered in arriving at a decision. [Emphasis added.]
The authority cited by the learned author for what I have italicized is Saville Perfumery Ld. v. June Perfect Ld. and Woolworth (F. W.) & Co. Ld., 3 a case that turned on the effect of amend ments to the English statute law made in 1938, the language of which, at least on the point under consideration, differs materially from that of the Canadian statute though perhaps not materially in the end result. It refers to infringement by the use of an identical mark or a mark so nearly resem bling it as to be likely to deceive or cause confu sion. I have not been able to discern in the reason ing of Sir Wilfrid Greene in that case any support for the italicized portion of the learned author's sentence either in the English or the Canadian law.
It will be observed that the author first refers to the appropriation of the trade mark "as regis tered" as giving rise to a right of action based on the infringement of the exclusive property right conferred by section 19 but that in the next sen tence what is referred to is expanded to include the taking of "the trade mark or a similar trade mark".
This expansion appears to me to be at variance with both what had been said earlier in referring to the taking of the trade mark "as registered" and in what follows in the paragraph, and to have no basis in section 19. The extent of the exclusive
3 (1941), 58 R.P.C. 147 (H.L.), at p. 161.
right given by section 19 is defined by the mark as registered. The ambit of protection for it is expanded by section 20 when what is done by another is likely to cause confusion and by section 22 when what is done is likely to depreciate the value of the goodwill attached to the trade mark. If, indeed, a right of action for infringement arises under section 19 on the taking of the registered mark, without reference to any likelihood of confu sion or of such depreciation, it seems to me that it is only the taking of the mark as registered on which such an action could be maintained and that any right of action for infringement that the regis tered owner may have in the taking of a part of the registered mark or in the use of a similar trade mark must arise, if at all, under section 20 or possibly under section 22. Support for this view may be found in the reasoning of Noël J. (as he then was) in Schaeren, (Mido G.) and Co. S.A. v. Turcotte et a1. 4 where, in an action for infringe ment of the trade mark "Mido", registered for clocks, watches and parts thereof, by the use of the trade mark "Vido", Noël J. said [at pages 455-456]:
It seems clear that there was no infringement of the plain tiffs trade mark in the sense that the defendants did anything which only the plaintiff was entitled to do. Section 19 does not give the plaintiff an exclusive right to use "VIDO" as a trade mark in association with watches.
At the hearing the argument between the parties and the only point at issue in connection with the infringement of plaintiffs rights, as well as the evidence presented, was limited to the single question of whether, as a consequence of s. 20 of the Trade Marks Act, the trade mark "VIDO" is deemed to be an infringement of the plaintiff's trade mark "MIDO".
It accordingly appears that the only point to be decided is whether the plaintiffs registered mark should be regarded as having been infringed pursuant to s. 20 when the defendants sold their watches in association with the trade mark "VIDO". The answer to this question will depend on the answer I give to another question, namely whether the trade mark "VIDO" is, in relation to the trade mark "MIDO", a trade mark "creating confusion" within the meaning of the phrase used in s. 20.
4 [1965] 2 Ex.C.R. 451.
In the result the use of "Vido" was held to be confusing with "Mido" and thus to infringe the plaintiff's rights.
Assuming, without deciding, that an action for infringement may be based on section 19 alone, on the facts of this case it is apparent that the trade mark "Mr. Submarine" has not been taken or used by the respondent. Accordingly I would reject the appellant's submission that on the basis of section 19 alone its exclusive rights have been infringed by the respondent.
This brings me to the second issue, that of whether on the facts the learned Trial Judge erred in failing to find infringement by the respondent by the use of a confusing trade mark or trade name.
On this issue the appellant's submissions were that the learned Trial Judge erred in emphasizing the differences between the trade marks rather than considering their similarities from the point of view of a consumer with imperfect recollection, in emphasizing the lack of evidence of actual confusion having occurred and the differences in the manner of delivery of the goods and services associated with the trade marks instead of consid ering the likelihood of confusion if the two busi nesses were carried on in the same area in the same manner.
Save with respect to the absence of evidence of actual confusion I am of the opinion the appel lant's criticism of the reasons of the learned Judge is warranted.
In the course of her reasons the learned Trial Judge said [at pages 169 C.I.P.R.; 429-430 C.P.R.; 193 F.T.R.]:
I accept counsel's argument that in this case the distinctive ness of the plaintiffs mark resides in the use of the courtesy title MR. in conjunction with the descriptive term SUBMA RINE ... However, I cannot conclude that, in the context of this case, what the defendant has done is merely appropriate the plaintiffs mark in total and add, as a suffix, additional words thereto. The use of the diminutive "subs" and not the word "submarine" lends force to that conclusion. Also, the use of the diminutive "subs" does not create confusion, when pronounced orally, with the word submarine. Such confusion pertained in the Conde Nast case, supra. It seems to me the defendant's mark (either version thereof) is clearly distinguish able from that of the plaintiff.
Here the learned Judge finds the respondent's marks to be clearly distinguishable from those of the appellant. That is without doubt true. But it is not a test of whether the respondent's trade marks or trade names are similar. It says nothing of their similarities or of whether they are likely to be distinguished by an ordinary person having a vague recollection of the appellant's mark or business.
Later the learned Judge said [at pages 169-170 C.I.P.R.; 430 C.P.R.; 193 F.T.R.]:
In considering whether the defendant's mark is confusing with that of the plaintiff, it is not sufficient to merely focus on the courtesy title MR. and the initial word SUBS. One must consider the mark as a whole. In doing so I cannot find any implication arising from the defendant's mark which would lead one to think that the goods sold by the defendant were those of the plaintiff. The defendant's mark gives the appear ance of being descriptive of an entirely different business from that of the plaintiff.
This conclusion is reinforced by the fact that while there is some overlap between the two businesses in that they both sell submarine sandwiches, the defendant focuses on telephone orders; the plaintiff focuses on the walk-in trade. Also, the defendant's business is predominantly that of selling pizza. The sale of submarine sandwiches is not its major enterprise.
In this passage the learned Judge first finds that no implication from the respondent's mark would lead one to think that its goods were those of the appellant and then goes on to conclude that the respondent's mark gives the appearance of being descriptive of an entirely different business from that of the appellant. In the next paragraph, how ever, she concedes some overlap of the businesses (so they are not entirely different) and cites in support the focussing of the respondent on tele phone orders in contrast to the appellant's "walk- in" trade and the sale of pizza in the respondent's business. In my opinion, neither the difference in systems employed nor in the focussing by the respondent on the sale of pizza is relevant in this context and neither should have been given weight.
In a further passage the learned Judge wrote [at pages 171 C.I.P.R.; 432 C.P.R.; 194 F.T.R.]:
With respect to the degree of resemblance between the names in appearance or sound or in the ideas suggested by them, I did not understand any argument to be made that there was a similarity of visual appearance. Nor could any convinc ingly be made. There is no similarity in the style of lettering used: the plaintiff uses "Copper [sic *] Block" lettering; the defendant's signs are in "hot dog" style. More recently a stylized script logo has been adopted by the defendant for many uses such as on boxes and menus. The plaintiff's signs consist of red-orange lettering on a white background; those of the defendant comprise and yellow and white lettering on an orange background. Indeed, to my eyes the most dominant part of the defendant's signs is the word PIZZA, not the other elements. The appearance of the two marks as actually used on signs, boxes etc., is quite different.
At this point the learned Judge considered and appears to have taken into account that there was no similarity in the style of lettering used and the colouring of the signs of the parties and that the appearances of the two marks as actually used on signs, boxes etc., is quite different. These in my opinion would be very relevant considerations if the proceeding were a passing off action at common law. They are irrelevant in a proceeding for infringement of a registered trade mark and should have been given no weight in determining whether the trade marks and trade names in issue are confusing with the appellant's registered mark.
As the facts on which the appeal is to be deter mined do not depend on the credibility of witnesses and are not in dispute, this Court is in as good a position as was the learned Trial Judge to draw what it considers to be the proper inferences from those facts and to make a finding as to the likeli hood of confusion of the trade marks and, in view of the errors to which I have referred, in my opinion the Court should proceed to do so.
The relevant provisions of the Act are:
6. (1) For the purposes of this Act a trade mark or trade name is confusing with another trade mark or trade name if the use of such first mentioned trade mark or trade name would cause confusion with such last mentioned trade mark or trade name in the manner and circumstances described in this section.
* Editor's Note: The word "Copper" should read "Cooper".
(2) The use of a trade mark causes confusion with another trade mark if the use of both trade marks in the same area would be likely to lead to the inference that the wares or services associated with such trade marks are manufactured, sold, leased, hired or performed by the same person, whether or not such wares or services are of the same general class.
(4) The use of a trade name causes confusion with a trade mark if the use of both the trade name and the trade mark in the same area would be likely to lead to the inference that the wares or services associated with the business carried on under such trade name and those associated with such trade mark are manufactured, sold, leased, hired or performed by the same person, whether or not such wares or services are of the same general class.
(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 suggested by them.
Before addressing these considerations it should be noted that the appellant's right to the exclusive use of "Mr. Submarine" is not confined to those parts of Canada in which the appellant and its licensees have carried on business but extends throughout Canada. The appellant is thus entitled to its exclusive use in any additional outlets for its sandwiches that it may see fit to establish. Nor is the appellant's exclusive right confined to the sale of sandwiches by the methods it now employs or has employed in the past. Nothing restricts the appellant from changing the colour of its signs or the style of lettering of "Mr. Submarine" or from engaging in a telephone and delivery system such as that followed by the respondent or any other suitable system for the sale of its sandwiches. Were it to make any of these changes its exclusive right to the use of "Mr. Submarine" would apply just as it applies to its use in the appellant's business as presently carried on. Whether the respondent's trade marks or trade names are con-
fusing with the appellant's registered trade mark must accordingly be considered not only having regard to the appellant's present business in the area of the respondent's operations but having regard as well to whether confusion would be likely if the appellant were to operate in that area in any way open to it using its trade mark in association with the sandwiches or services sold or provided in the operation.
I turn now to the circumstances to be considered as enumerated in subsection 6(5) of the Act.
(a) The appellant's trade mark consists of two words, one of which is descriptive and is dis claimed apart from the trade mark, the other of which is what is referred to as the courtesy title "Mr.". The evidence discloses that the same courtesy title is in common use as the first word of a large number of other trade marks or trade names. Examples from the telephone directories in evidence are Mr. Filter, Mr. Ice, Mr. Ice Cube, Mister Muffler, Mister Muffler Limited, Mr. Plumber, Mister Transmission, Mr. Groom Prod ucts Distributor, Mister Donut, Mr. Doner, Mr. Fish, Mister Mac's Pharmacy Ltd., Mr. Seamless, Mr. Vinyl, Mr. European Boutique for Men, Mister Carpet Ltd., Mr. Handy Man Services, Mister Sweeper, Mr. Cobbler Shoe Repair, Mr. I Got It, Mr. M's Warehouse Limited, Mr. Renova tor. On the face of it at least two of these, Mr. Fish and Mister Donut, are related to food prod ucts and the latter to prepared food. In my view, neither word of the appellant's trade mark should be regarded as its dominant or distinctive feature. The essence of the trade mark, that which alone gives it distinctiveness, is the combination of the two common and by themselves quite undistinctive words.
This trade mark has been extensively advertised and used and a large volume of sandwiches has been sold in association with it. It is I think to be inferred that the trade mark has become very well known in Toronto and the rest of Ontario and in
Western Canada and it is known to a lesser extent in Eastern Canada and in particular in the Hali- fax-Dartmouth area where the respondent present ly carries on its business.
As "Mr. Subs'N Pizza" is also composed of common words, a common courtesy title together with words descriptive of the respondent's wares, its inherent distinctiveness, as well, in my opinion, arises solely from the combination of its several elements. In my view, because of its elements and its length, it is not as distinctive as "Mr. Subma rine". "Mr. 29 Minite Subs'N Pizza" is also com posed of common undistinctive words and as in the other cases its distinctiveness in my view arises from the combination but in this case it arises as well from the suggestion of fast service that it includes. Though both trade marks are probably as well or better known in the Halifax-Dartmouth area than "Mr. Submarine" it is unlikely that either is known to any substantial or practical extent elsewhere.
(b) The appellant's trade mark has been in use in Canada since 1968 and in the Dartmouth area since about 1976. The use of the respondent's trade mark or trade name "Mr. Subs'N Pizza" has been in use in the Dartmouth area since about 1976, that of "Mr. 29 Minit Subs'N Pizza" since 1981.
(c) The nature of the wares is the same with respect to sandwiches. It differs only in that the respondent also sells pizzas. The nature of the services being rendered differs in that the appel lant does not provide a telephone ordering and delivery service which the respondent does. The nature of the business, that of the sale of prepared food, is the same.
(d) The nature of the trade, as I see it, is the sale at the retail or consumer level of food pre pared for eating, in the case of the appellant, in a restaurant setting, in the case of the respondent, at the address to which the purchaser asks that the food be delivered. In both cases the area from which customers are likely to be attracted for any one outlet is comparatively small, though probably
larger for the respondent's business because of the telephone call and delivery system.
(e) The degree of resemblance is, in my opinion, small when the marks are considered as a whole. But there is resemblance and in my view it cannot be ignored.
Neither the mark of the appellant nor either of those of the respondent consists of the same group of words but one of the words is common to all three trade marks. The marks do not look alike when written or printed but they have the word "Mr." in common. When spoken they do not sound alike, save for the sound of "Mr.". The ideas suggested by them, as well, are not the same in total but what both of the respondent's marks suggest includes the elongated bread roll sand wiches which the appellant's mark suggests.
Having regard to the circumstances disclosed I reach the conclusion, and this notwithstanding the very weighty fact referred to by the learned Trial Judge that in the ten years of operation of both businesses in the Dartmouth area prior to the trial of the action no instance of any actual confusion had come to light, that the use by the respondent of its trade marks or trade names "Mr. Subs'N Pizza" and "Mr. 29 Min. Subs'N Pizza" and of "Mr. Submarine" by the appellant in the same area is likely to lead to the conclusion that the wares and services of the respondent are sold or performed by the same person as those sold by the appellant. While the marks are manifestly differ ent in many respects there are also respects in which they are manifestly similar, in particular in the combination of "Mr." with "Submarine" and "Mr." with "Subs". The marks, in my view, have at least partial similarity in appearance, whether written or printed, in sound, and in ideas suggested by them. All three suggest a business in which submarine sandwiches are sold. Both "Mr. Subma rine" and the respondent's marks depend for their distinctiveness in whole or in part on the associa tion of a word meaning a submarine sandwich with the courtesy title "Mr.". In my view it is not
unlikely that someone, whether vaguely or even precisely, familiar with "Mr. Submarine" on look ing for it in a telephone directory where it is not listed (examples are to be found at pages 81, 83 and 89 of the case) and finding "Mr. Subs'N Pizza" could mistakenly conclude that the name, if not indeed that of the appellant, was in some way associated with "Mr. Submarine" as licensee or otherwise. The same applies where they appear close together in ordinary telephone listings. It is also not unlikely that such a person would draw a similar conclusion from seeing "Mr. Subs'N Piz za" on a sign whether in the original or the 29-minute version and in either case conclude as well that the business was that of "Mr. Subma rine" or one of its licensees with a variation to indicate that at the particular outlet it had pizza for sale as well as submarine sandwiches. It follows in my view that the appellant's trade mark is infringed by the respondent's use of its trade marks and trade names.
I would accordingly allow the appeal and enjoin the respondent from using the word "Mr." in association with the word "submarine" or "subs" or any other word suggestive of submarine sand wiches. The appellant is also entitled to an order for destruction or delivery up, under oath, of the respondent's signs, packages, napkins and other articles on which the words "Mr. Subs" appear. In the particular situation, having regard to the fact that no instance of actual confusion has been established, in my opinion, the discretion of the Court to order an account of profits should be exercised by refusing it. The appellant is entitled to a reference to assess damages but at its option it may have judgment for $300 as damages without a reference. If the appellant requires that a reference be held and recovers $300 or less the respondent's costs on the reference as between solicitor and client should be paid by the appellant.
The appellant should have its costs in the Trial Division and of this appeal.
URIE J.: I agree.
DESJARDINS J.: I agree.
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