Nicholas Weston - Guylian sells chocolate sea shells, but Court not so sure

In a recent decision handed down by the Federal Court, long time chocolate manufacturer, Chocolaterie Guylian N.V. (Guylian) has been unsuccessful in its attempt to register as a trade mark its seahorse-like shape praline chocolate: (Chocolaterie Guylian N.V. v Registrar of Trade Marks [2009] FCA 891 (18 August 2009). Sundberg J., dismissed Guylian’s application, finding that the chocolate seahorse shape was not sufficiently inherently distinctive to the extent required by Section 41(3) of the Trade Marks Act 1995 (Cth) (the Act), and that the seahorse shape did not distinguish the designated goods as being Guylian’s to satisfy Section 41(5) of the Act.

 

A Brief Word on Shape Marks

Although previously registrable as 'devices', the Act introduced shape marks as a separate category of protectable marks in Australia. Section 17 defines a ‘trade mark’ as ‘a sign used, or intended to be used, to distinguish goods or services dealt with or provided in the course of trade by a person from goods or services so dealt with or provided by any other person’ and a ‘sign’ in defined in Section 10 of the Act as including a ‘shape’.

 

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No shape mark injunction in fight between two armless chairs

In Sebel Furniture Limited v Acoustic & Felts Pty Limited [2009] FCA 6 (12 January 2009), the applicant (Sebel) is the Registered Owner of Trade Mark No 1054076 in respect of a shape kind of sign or shape device (Sebel’s trade mark). Sebel’s trade mark is registered in Class 20 in respect of plastic, moulded chairs without arms, also known as 'sidechairs'. The trade mark was registered with effect from 6 May 2005 and is subject to an endorsement that sub-section 41(5) of the Trade Marks Act 1995 (Cth) was applied meaning that when it was applied for, it was not sufficiently inherently distinctive to achieve registration on that basis alone, but that registration was granted because it was or would become distinctive through use. Sebel’s trade mark chair, known as the 'Postura', is widely used in educational institutions.

The respondent (Reed Furniture) recently commenced to import into Australia and to supply to the same educational market which, for many years, has been supplied with Sebel’s Postura, a moulded plastic chair known as the 'Titan'.

Sebel sought various injunctions based on allegations that the Titan chair infringed Sebel’s trade mark by using the shape in respect of which Sebel’s trade mark is registered and that Reed Furniture had engaged in passing off and in misleading and deceptive conduct within the meaning of s 52 of the Trade Practices Act 1974 (Cth) (TPA) by promoting, offering to supply and supplying the Titan chair. Sebel also sought an order to restrain Reed Furniture from making each of the following representations in trade or commerce in Australia in relation to chairs:

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Singapore Treaty takes effect March 2009

Australia has become the 10th State to ratify the Singapore Treaty on the Law of Trade Marks (the Singapore Treaty), allowing the Treaty to come into force on 16 March 2009.  The treaty establishes common standards for procedural aspects of trade mark registration and licensing between the contracting States.

According to the Federal Minister for Innovation, Industry, Science and Research, Senator The Hon. Kim Carr, signing on “offers a positive example for Australia’s trading partners, thereby increasing the capacity of regionally based trade”.  

The Treaty is also intended to encourage national trade mark offices to take advantage of modern communication technologies.  Most significantly, for the first time in any international instrument dealing with trade mark law, non-traditional marks are explicitely recognised.

 

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Nicholas Weston ranked by Managing Intellectual Property World Intellectual Property Survey 2008 and IP Handbook (Update)

The Managing IP World Intellectual Property Survey 2008, which publishes detailed rankings of the leading firms practising intellectual property in each country, has listed Nicholas Weston for the first time since the firm was founded in 2005.

The firm is ranked in two categories: for Trade Mark Prosecution in Australia and for Trade Marks Contentious in Australia. Rankings are based on surveys of clients and recommendations from clients and other practitioners.

According to Managing IP magazine:

"The World IP Survey is not simply a list of the biggest firms, or a list of those that have the biggest case load or are the oldest. Instead it is a qualitative ranking of the leading firms in each category and reveals which firms are rated by their peers for the strength of their expertise and the depth of their ability to service clients."

The IP Handbook 2008, published by Managing IP, includes full results of the survey, stating:

"Clients noted the thoroughness of the firm's paperwork and "attention to detail" ".

No firm can vote for its own inclusion or purchase a listing in the MIP World Intellectual Property Survey 2008 or the IP Handbook, which lists the leading firms in trade marks prosecution and contentious work in 65 jurisdictions. The survey is described by its publisher as “the world’s most detailed and authoritative survey of the IP market."

Details of the survey methodology can be found HERE

Survey results for Asia can be found HERE .

About Managing IP

Managing Intellectual Property is the leading international magazine for IP owners, with more than 8,000 readers across the globe. About two-thirds of readers are senior in-house counsel in multinational companies.

Published 10 times a year, Managing IP provides news, comment, data and analysis. Managing IP is part of the Euromoney Legal Media Group, with offices in Hong Kong, London and New York.

About Nicholas Weston

Founded in 2005, Nicholas Weston is small but mighty Australian law firm delivering trade marks and other commercial legal services to clients worldwide in core sectors of disputes, technology, and brands.

Each professional is a dual qualified lawyer and registered trade marks attorney. Nicholas Weston claims practical implementation of thought leadership. The firm is located on Collins Street, Melbourne in the historic Assembly Hall.

For further details contact Nick Weston or Lea Lewin.

Shoe Shape Marks Ship Shape

In Global Brand Marketing Inc v YD Pty Ltd [2008] FCA 605 (7 May 2008) the applicants, Global Brand Marketing Inc (Global) and Diesel Spa (Diesel), contended that by s 120 of the Act, the respondents' (YD) shoes infringed two shape trade marks registered by Diesel in class 25 for 'footwear'. The respondents' cross-claim attacked the validity of the applicants' registrations pursuant to ss 41 (not inherently distinctive) and 58 of the Act (applicant not the owner) and sought to have them removed from the register.

The claims of both sides failed. The Honourable Justice Sundberg held on the claim that the rival’s shoes are not substantially identical or deceptively similar to the registered shape marks, and on the cross-claim, that the shape marks are inherently distinctive due to the use of a stylised 'D' device.

His Honour noted that shape mark cases fall between the ends of a spectrum ranging from 'purely functional' shapes or features to those that are 'concocted', 'non-descriptive' and 'non-functional'. These cases, he held, 'involve consideration of whether one set of features supersedes, submerges or overwhelms the other.'

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Nicholas Weston moves to browser-based trade mark management

Nicholas Weston, the law firm behind the Australian Trade Marks Law Blog has moved to so-called 'cloud computing' technology architecture with the adoption of the WebTMS browser-based trade mark management system. According to Nicholas Weston, this infrastructure purchase will significantly strengthen this practice area and prove a real asset to the firm.

WebTMS enables Nicholas Weston to offer clients browser-based trade marks portfolio management applications that utilise the same infrastructure powering major US and UK law firms, and US Fortune 500 corporate IP departments. A list of users can be found HERE.

Key Features of WebTMS

The following key features of WebTMS are set out in detail below and can be summarised as follows:

  • the most secure, robust and advanced trade mark management and docketing system available and has been used by the world’s leading firms for over 5 years;
  • real time access for Clients to the cases Nicholas Weston is handling for them with 24/7 worldwide secure access to a Client's trade mark portfolio details from any computer with an internet connection;
  • foreign Agents can update the cases they are handing for Nicholas Weston;
  • a repository for all trade mark and intellectual property data, with images and supporting documents;
  • database links to the trade marks offices of 12 jurisdictions, for click throughs, data audits and automatic data loading;
  • built in trade mark searching for the 12 online trade marks offices, with search results management;
  • workflow wizards to maximize efficiency;
  • designed by trade mark attorneys for trade mark attorneys, and supported by extensive user input.
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Cadbury's purple patch comes to an end for now

Cadbury has lost the latest battle over the exclusive use of the colour purple on chocolate wrapping but, regrettably, the chocolate wars are probably still far from over. On Friday 11th April, Justice Heerey in the Federal Court gave his judgment in respect of the ‘further trial’ of the action brought by Cadbury against Darrell Lea for having the temerity to use purple in some of its chocolate wrapping. (Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (No 8) [2008] FCA 470). The action was based on passing off and an alleged breach of s52 of the Trade Practices Act which prohibits corporations from engaging in conduct that is misleading or deceptive or which is likely to mislead or deceive.

A little bit of background to this latest decision is probably necessary for those who, for reasons only known to them, have failed to follow the fate of purple in Australian litigation. At the original trial in 2006, Justice Heerey found for Darrell Lea and held certain expert evidence from Cadbury inadmissible. While there was a lot of evidence that consumers associated purple with Cadbury chocolate, there was also a lot of evidence of uses by other chocolate makers of purple and many factors which distinguished Darrell Lea from Cadbury chocolate. For example, the words Darrell Lea written prominently on Darrell Lea chocolate were subtle hints to consumers that the chocolate in question was not Cadbury. Some consumers actually picked up on the point.

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Cadbury purple to be put on hold

The most recent development in a protracted legal battle between two chocolate heavy weights, Cadbury Schweppes and Darrell Lea, is a decision by the Trade Marks Office (copy available HERE) to suspend three pending opposition proceedings which relate to some trade mark applications made by Cadbury for certain shades of the colour purple.  The oppositions have been suspended pending final determination of a related passing-off proceeding in the Federal Court. 

Background (in Brief)

In February 2003, Cadbury commenced proceedings against Darrell Lea in the Federal Court of Australia claiming that Darrell Lea's use of a shade of purple in connection with its chocolate confectionary business amounted to conduct that was misleading and deceptive, and also constituted passing off ("the passing off proceeding").  For those who have, understandably, lost track of the course of these proceedings, a comprehensive summary of the numerous court decisions is provided by the Delegate at paragraph 50 of the present decision. The next stage in the passing off proceeding will be mediation likely to be followed by a further hearing before Heerey J., if it does not settle. 

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Shape trade mark not a means to protect an article formerly exploited under a patent

In Mayne Industries Pty Ltd v Advanced Engineering Group Pty Ltd [2008] FCA 27, Mayne Industries Pty Ltd (Mayne) was the registered owner of ‘a shape kind of sign’ for goods in class 6 described as ‘fence droppers’ comprising ‘a rod bent to an S shape.’ A fence dropper is a galvanised metal article designed to attach to agricultural fences to maintain a constant distance between the horizontal wires, and to act as a substitute for fence posts. Mayne commenced infringement proceedings under s 120(1) of the Trade Marks Act 1995 (Act) against Advanced Engineering Group Pty Ltd (Advanced), the importer of fence droppers containing an S loop substantially identical with the shape of the S loop depicted in the applicant’s trade mark.

Advanced contended that Mayne sought to enforce a monopoly over certain ‘functional features’ and that once the evidence demonstrates that the shape serves some functional significance, use of the shape (the trade mark) cannot be use as a trade mark. Advanced also relied upon a defence under s 25 of the Act that the trade mark contained a sign (the S loop shape) that described a fence dropper that was formerly exploited by Mayne under an expired patent and, under its cross-application, sought to have the Register rectified by cancelling the registration under s 87(1) of the Act.

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Lleyton Hewitt's trade marks may over-reach

It is Australian Open time again, so this seems topical. According to Melbourne newspaper The Age, local hope, tennis player Lleyton Hewitt “is trademarking his "C'mon" celebration and is going into business.” The article is here.

A quick search of the trade mark applications revealed that Lleyton Hewitt Marketing Pty Ltd has applied for the following to be registered:

  • Lleyton & Bec Hewitt” in class 41
  • C’mon” (stylised device) in classes 9, 14, 16, 25, 28, 32 and 41
  • A stylised logo representing a man wearing a cap with a hand pointing to his face in classes 9, 14, 16, 25, 28, 32 and 41
  • C’mon” together with the stylised logo representing a man wearing a cap with a hand pointing to his face in classes 16, 25, 28 and 41
  • Lleyton Hewitt” in classes 9, 14, 16, 25, 28, 32 and 41

The goods and services sought to be protected cover items including sunglasses, watches, plastic jewellery, party hats, hooded pullovers, frocks, blouses, playing cards, beer, health club services and many others. A copy of the Search Report can be downloaded here.

So what?

As Lleyton Hewitt knows, wanty wanty does not mean getty getty. The Hewitt applications will need to get past someone else’s prior trade mark application for “C’mon” covering goods in class 25.

The goods and services applied for are far-reaching, possibly over-reaching. Once registered, each mark will need to be used on the relevant goods or services covered by each application within 3 years (of the application date) or -- by the operation of section 92 of the Trade Marks Act 1995 (Cth) (Act) -- the relevant mark will be vulnerable to removal from the register for non-use in respect of those goods or services. "Use" within this context means "use of a trade mark in relation to goods" and "use of a trade mark in relation to services" within the meaning of section 7 of the Act and the attendant case law.

The Age reports that Hewitt’s characteristic hand signal was invented in the 1980’s by a Swede called Niclas Kroon who called it “the vight”: meaning in Swedish something like ‘for sure’. It was popularised by another Swede, Mats Wilander. On some reports, Kroon is cross that he let his registered trade mark lapse and has now learned that Hewitt is applying for it. This idea is misconceived.

A trade mark that depicts a gesture may well be registrable in Australia under sections 41(5) or 41(6) of the Act, but they enjoy no separate status as a 'gesture mark'. There are examples of this type of non-traditional mark overseas, for example on the UK Register for a person tapping his nose and in the United States, there was a dispute between a wrestler and some rapper over use of a 'diamond cutter' hand gesture: details here and here. Hewitt is not seeking to register a 'gesture mark' but simply a stylised device, possibly because Niclas Kroon would have 'priority' as the first user of his 'gesture mark' and may well have 'used' the gesture in Australia in a trade mark sense: (see Carnival Cruise Lines Inc v Sitmar Cruises Ltd 1994 FCA 936, AIPC 91-049, 120 ALR 495.  If the Hewitt applications eventually achieve registration, they will not prevent others from performing "the vight". Unfortunately.

Scent Marks Unpopular in 2007

Although specifically mentioned in section 6 of the Trade Marks Act 1995 under the definition of "sign", it appears unlikely that any Australian applications will be filed in 2007 for protection of a scent mark.  In fact, there are currently no live applications on the Australian Register.  Regardless, there is increasing discussion and attention on non-conventional marks, particularly smells, in the light of brand owners being under a constant challenge to release products that are more distinctive than those of their competitors.  The use of "white tea, the calming new scent of Westin" is a good example of how traders are seeking to lure customers by appealing to their noses.

Different approaches for dealing with scent marks have been adopted across numerous jurisdictions.  In summary, European Offices have rejected them, the United States is generally more liberal in accepting them and Australia falls somewhere in the middle.

Australia

The Australian Trade Marks Office Manual of Practice and Procedure states that the capability of a scent to distingush goods and/or services should be decided "on the basis of whether other traders would want or need to use it in the ordinary course of their business, without improper motive".

The registrability requirements are outlined as follows:

  • the application must include a graphical representation of the scent mark.  This could be a precise verbal desciption.
  • the graphical representation must be in a form that conveys information to the ordinary person allowing them to identify the mark.  Highly technical data will not be accepted as a graphical representation.
  • an actual sample of the scent is not required but may need to be adduced during examination.
  • a precise and accurate description to be included as an endorsement in the application must also be provided.

A total of 7 applications have been filed so far in Australia.  The only application found to be acceptable by the Australian Trade Marks Office was Trade Mark No 700019 covering darts in Class 28 having the strong smell of beer.  Despite its inaugral success this application never proceeded to registration.

United States

In the United States scents can be protected as trade marks provided they do not serve a functional purpose (TMEP § 1202.13).  In a landmark decision, (Re. Clarke, 17 U.S.P, 1990) the Trade Mark Trial Appeal Board allowed registration of an arbitrary, non-functional scent ("high impact, fresh floral fragrance reminiscent of plumeria blossoms") for sewing thread and embroidery yarn, Reg. No. 1639128, but subsequently abandoned.  Current registrations include "a grape scent" and "a strawberry scent" for "lubricants and motor fules for land, vehicles, aircraft, and watercraft" Reg. No. 2568512 and Reg. No.2596156 respectively. However, to date few scent marks have been registered or even applied for. 

Europe

Theoretically, the European Union Office for Harmonisation for the Internal Market (OHIM) recognises that scent marks are eligible for trade mark registration.  However, in practice a contradictory position exists; there is no bar to filing an application for a scent mark, but at the same time, there are no acceptable methods or techniques for describing such scents.  The 2002 decision “Sieckmann” of the European Court of Justice (ECJ) essentially concerned the question of what is an acceptable representation of an olfactory trade mark.  The ECJ held that “a trademark may consist of a sign which is not in itself capable of being perceived visually, as long as it can be presented graphically by means of images, lines or characters and that the representation is clear, precise, self-contained, easily accessible, intelligible, durable and objective”.

As a result of the Sieckmann decision, it has and will continue to be very difficult, perhaps impossible, to register scents regardless of whether they are intelligible to the majority of the public and capable of depiction in the form of a written description. 

As marketing techniques continue to develop and technology further enhances ways to recreate and infuse odours, there is a possibility that we will see an increase in interest towards scent marks.  A recently published paper by Bhagwan., et al (MPRA)  that explores the economic rationale for scent marks makes further interesting reading on this topic.

 

 

 

 

Sound marks give Tarzan something to yell about

Sonic branding is the term used when a brand makes use of sound to communicate with consumers. Growing in popularity, and taking a variety of forms such as ring tones and jingles, sound marks are increasingly popping up in the IT, automotive and media industries.

Most recently, an application to protect the famous cry that Tarzan characteristically screams as he swings through the jungle was decided in Europe.  The Office for Harmonisation in the Internal Market (OHIM) refused the application on appeal; a copy of the decision can be read here.

Article 4 of the relevant Council Regulations states that a community trade mark may consist of “any sign capable of being represented graphically…provided that such signs are capable of distinguishing the goods or services of one undertaking from those of other undertakings”. The Tarzan application included two pictures: (i) an image of a wave form representation of the sound; and (ii) a spectrograph of the frequencies of the yell. The OHIM ruling provides that “what has been filed as a graphic representation is from the outset not capable of serving as a graphic representation of the applied for sound”.

The difficulty with the approach taken in Europe is that whilst musical tunes that can be represented graphically using musical notation are clearly registrable, other noises and auditory sounds which cannot be recorded as musical notation will evidently fail.

By way of contrast, the Trade Marks Office in Australia has been quite specific about acceptability of representations and descriptions of sound trade marks. An application for a sound trade mark that cannot be represented with musical notation must include the following:

  • a graphical representation of the mark, which may be a simple verbal description of the sound such as "CLIP CLOP MOO"
  • a clear and concise description of the trade mark to serve as an endorsement, for example: The trade mark consists of the sound of two steps taken by cow on pavement, followed by the sound of a cow mooing as rendered in the recording accompanying the application.
  • a recording of the trade mark on a medium which allows for easy replaying.

Currently, 33 sound marks have been registered in Australia but, as yet, creator Edgar Rice Burroughs' company does not appear to have sought protection for the famous cry here. Tarzan would go ape. Again.

 

Non-conventional trade marks - not conventionally successful

Non-conventional trade marks in Australia

The potential to register what are often referred to as non-conventional trade marks such as three dimensional shapes, sounds and scents was considerably expanded under the Trade Marks Act 1995 (Cth). Yet a recent analysis presented by a Principal Examiner in the Australian trade marks office to the annual IPSANZ conference has revealed that applications to register these trade marks have a poor record compared to more conventional trade marks.

Ms Alison Windsor’s analysis states that about 65% of trade mark applications are ultimately successful but the success rate for non-conventional trade marks lags well behind that rate. For example, only about 32% of applications for registration of shapes are successful. No scent has yet been registered in Australia.

Her paper suggested the two most likely difficulties with these applications.

  1. The written descriptions of the trade marks are not sufficiently clear and precise. See the Full Federal Court decision in Woolworths v BP for an example of the need for precision.
  2. The applications often fail to demonstrate the distinctiveness required under s41 of the Act and, in particular, insufficient use, as a trade mark, to demonstrate distinctiveness on the basis of use.

The lack of success on the basis of lack of distinctiveness is probably due to a number of factors but one is easily identified and explained. Applicants are seeking to obtain competitive edges by obtaining exclusive rights over shapes and other signs that other competitors would naturally wish to use. Obtaining registration in those circumstances will be difficult in the absence of distinctiveness obtained through use. Yet, the incentive to obtain such a competitive advantage outweighs the costs of unsuccessful applications.

 Professor Mark Davison

 

Professor Mark Davison joins the Australian Trade Marks Law Blog

Nicholas Weston, Lawyers & Trade Marks Attorneys is pleased to announce that Professor Mark Davison has joined the firm as a contributor to the Australian Trade Marks Law Blog.

Mark is currently Associate Dean (Undergraduate Studies) at Australia’s Monash University, and the author of several major works relating to intellectual property and competition law. He is the co-author of the third edition of Shanahan’s Australian Law of Trade Mark and Passing Off, the leading reference work on Australian trade mark law and has written The Legal Protection of Databases, a book published in the intellectual property series of Cambridge University Press. He has also published two casebooks dealing with competition law and aspects of consumer protection. In addition to his doctorate on sui generis protection of databases, he has a diploma in Indonesian language and studies and he is the winner of three Australian Research Council large grants.

Besides teaching Contract Law, Intellectual Property, Trade Marks and Commercial Designations and Copyright in the postgraduate and undergraduate courses at Monash, he has taught in various projects in Thailand, Vietnam and Indonesia.

Nicholas Weston Lawyer Appointed to INTA Sub-Committee

On 25 September, 2007, Nicholas Weston Principal Nick Weston was appointed to the International Trademark Association’s (INTA) Law Firm Outreach Sub-Committee of the Alternative Dispute Resolution Committee (ADR) for the 2008 – 2009 committee term.

This year, 2,300 volunteers applied to serve on INTA committees. The INTA Law Firm Outreach Sub-Committee promotes the use of ADR and the INTA Panel of Neutrals to law firms, including INTA Associate member law firms.

INTA describes itself as “a not-for-profit membership association founded in 1878 of more than 5,000 trade mark owners and professionals, from more than 190 countries, dedicated to the support and advancement of trade marks and related intellectual property as elements of fair and effective national and international commerce.”

Nicholas Weston celebrates launch of the Australian Trade Marks Law Blog

On 29 October, 2007, Nicholas Weston, Lawyers & Trade Marks Attorneys celebrated the launch of the Australian Trade Marks Law Blog. The initiative is designed to complement the high-quality intellectual property services and high level of service the firm provides to its clients.

Since its inception in February, 2005, Nicholas Weston has focussed on trade marks as a core practice area. Nicholas Weston is an unstuffy Australian law firm delivering trade mark and other commercial legal services to clients worldwide in our core sectors of fashion, technology and U.S. law firms. Each member of the firm holds dual qualifications as a lawyer and also as a registered trade marks attorney. The firm claims practical implementation of thought leadership. In mid 2007, the firm re-located from its office in the Paris end of Collins Street, Melbourne to the historic Assembly Hall, in the heart of Collins Street, Melbourne. Details of the firm’s trade marks services can be found here. Details of the firm’s commercial services can be found here.

The Australian Trade Marks Law Blog is designed to communicate with U.S. law firms and others seeking a reliable source of information and commentary on Australian Trade Marks. The platypus is adopted as our masthead because the platypus -- like Australian Trade Marks Law (and the Australian version of English) -- can seem odd at first encounter. It is efficiently adapted to its environment. It looks like you could pat it. But it has a venomous spur on its hind legs that can cause excruciating pain. Nicholas Weston publishes the Australian Trade Marks Law Blog as a useful resource.