Bentley Fragrances Pty Ltd & Charles of the Ritz Group Ltd v Simes Australia Pty Ltd

[1981] FCA 27

27' ' J

I N THE FEDERAL COU.?T OF AUSTFSLIA

NEW SOUTfi WALES DISTRICT REGISTi?Y No. G 17 of 1981

GENERAL DIVISION 1

Between

BENTLEY FRAGRANCES FTY. LIMlTED

and CHARLES OF THE X I T Z CXOUP

LINIITZD

A p p h c a n t s

- and

SIYiZS AUSTRALIA R Y . LIXCTZD

Respondent

CORAM:  SFiEPPARD J. 16 MAXCH, 1901

JUDGMENT

( o n a D p l i c a t l o n f o r l n t e r l o c u t o r y r e l l e f )

Thls a p p l i c a n t s s e e k t o r e s t r a l n u n t l l t h e f i n a l h e a r l n g i s a n a p p l i c a t l o n f o r l n t e r l o c u t o r y r e l l e f . The

o f t h e

proceedings the market lng by the respondent of a range of

perfumes and associated products known a s O r l e n t . The

second appl lcent , which 1s i n c o r p o r a t e d i n t h e S t a t e o f

Delaware In the Unl ted S te tes o f America, carr les on buslness

a s a manufacturer , marketer and d l s t r l b u t o r of f r a g r a n c e s ,

cosmetlcs and t o l l e t r l e s , l n c l u d l n g t h o s e s o l d under the

t r a d e name Yves Sa ln t Laurent . Amongst tine second

a p p l i c a n t ’ s p r o d u c t s 1s a range of products so ld uncer

the brand name Opium. This range lnc ludes Oplum eau de

t o i l e t t e , c o n c e n t r a t e p e r f u m e s , d u s t l n g p o w d e r s , s o a p s ,

ba th 011s and body creams. The eau de t o i l e t t e and

perfumes are	made	up	from	e s s e n t i a l o i l s p r o d u c e d I n F r a n c e
and purchased	by	t h e first applicant	from a	r e l a t ed F rench

company, Parfums Yves S t .Laurent S.L. Both these perfume

products were f i rs t s o l d I n Europe i n 1977 ar,d were in t ro-

duced i n t o t h e U n i t e d S t a t e s m a r k e t i n 1978. They were

first s o l d i n Aus t r a l i a i n Sep tember 1978. The concen t r a t e

i s s o l d i n t h r e e s i z e s o f c o z t a l n e r s , and. the eau de

t o i l e t t e 1s s o l d i n f i v e s i z e s . S h o r t l y a f t e r t h e I n t r o -

d u c t i o n i n t o t h e A u s t r a l i a n m e r k e t o f the Oplum perfume

products , t h s o ther Cpim products (dus t ing powder , sza? ,

ba th 011 ana body cream) were Introduced.

From in to the Aus t ra l lan marke t In Se7tember t h e tune Opium perfume products were Introduced

1978 until t h e end

of November 1980, t o t a l r e t a l l s a l e s o f t h e F r o d u c t s In

A u s t r a l i a amounted t o a b o u t 5 2 , 7 0 0 , 0 0 0 . T o t a l r e t a i l s a l e s

I n A u s t r a l l a of a l l Oplun products up to tne end o f Ncvencer

1980 amounted to about $2,900,000. The Opium brand of

products 1s s o l d In 99 c o u n t r i e s , a n d t o t a l r e t a l l s a l e s

worldwlde between the time o f l n t roduc t lon o f t he p roduc t s

and the end of Kovenber 1580 aicoLnted t o 2bout sUSlBO,CGO,OK.

The first appllcant is a company incorporated m

Australia.	It 1 s the distrlbutor for the second a2pllcant's
products In Australia. Opium perfumes arc sold	in all
States of Australia except Queensland. There	have been

no sales in Queensland because the Department of Yealth In that State has notlfied the flrst ap2llcan.t that the

department would regard sale of the products as belng	in
contravention of the Health Acts	1937-1976.

The first applicant sells Oplm brano products to

retailers throughout Australla. At present there are

about 435 retail outlets selling.	Of these outlets, 27
are duty-free stores,	285 are pharmacles, 55 are perfumery
stores and 68 arc department stores.	There are 175 outlets
in New South Wales, 183 In Vlctorla and Tasmanla,	10 in
South Austrella and	36 In Western Australia.

O?iurn brand perfumes have Seen extenslveiy promoted

to the publlc In Australla. In the August 1978 issue of

Vogue magazlne there was i? four page advcrtlsement f o r

Oplum perfumes. Slnce then the advertlslng for.C?lun

perfumes has lncluded numbers of full page and couble gEge

advertlsements in magazmes	intended to be read prlnclpally
by women.	The magazines are In the naln 'Joeue, Cosmo?olitan
and Mode.	The most receni advcrtlsement is that appearing
in the issue of Cosmopoliten for i)ece.sber 1980.	In total,

t he expend l tu re on magazlne advertlsing has been In

excess of $48,GOO. Total expendi ture on provot ion,

inc luding media adver t i s ing , d l sp lays and publ ic

r e l a t i o n s , h a s b e e n i n the o rde r o f $120,000.

The respondent 1 s a company inco rpora t ed i n Sou th

Aus t r a l i a . I t has produced several ranges oT >erfumes

and	t o i l e t r i e s .	One	of	i t s d l r e c t o r s 1s Mr.	H.	J.	Nlnlo,
who	is a	r eg i s t e red	pha rmac i s t .	Mr.	h n l o and	one	other

shareholder ho ld a l l t h e l s s u e d c a p l t a l , b o t h I n t h e

respondent and in another company, 'Xestab Pty. Limited,

whlch has for many years conducted the busmess of a

spec la l l s t pe r fume and toiletries r e t a i l e r I n Adelaide.

I n 1979, t h a t i s a f t e r t h e Opium range of products

had become e s t a b l i s h e d on t h e Australian market , the

respondent, through Mr. Nlnlo, declded t o l m n c 9 a new

range of products. As a r e s u l t of t h a t d e c l s l o n , tne

respondent 1 s about to launch on to the market a range of

perfumes an.l a s soc ia t ed p roduc t s known a s C r l e r ~ t . The

a p p l i c a n t s l e a r n e d o f The respondent ' s In ten t lor , Tron a

brochure, bhlch came t o t h e l r a t t e n t l m ln Febrkary and

whlch had been c i r c u l a t e d t o r e t a i l s t o r e s I n Victoria,

New South 'wales and Liueensland, and from an sdvert lse-aent

I n t h e	Narch	1981 i s s u e o f Pharmacy Trade,	a	magazlne
c i r c u l a t e d t o ? h e r m a c l e s	and	companles	whzch	supply them.

Both the b rochure and the adve r t l s emen t showed

coloured p ic tures o f boxes and bo t t les containing t h e

Or ien t p roducts . They also s a l d t h a t t h e r e WGIS to be

s u ' x t a n t i a l a d v e r t l s i n g	m	c e r t a i n women's	magazmes,
includlng Cosmopohtan,	commencing l n May	1981 and	con-

t inu ing each month u n t i l t h e end of the year . O f t h e

product , the b rochure sa ld :

"The 'Orient ' perfume ... a s p e c l z l p l a c e I n

the market .

"Orient ' i s the cu lmlna t lon o f e x t e n s l v e

research commlssloned by S m e s I n t o t h e m a r k e t

needs and a t t i t udes o f t he Aus t r a l i an f ema le

and her resea rch highlighted the perfume. Interest lczly enokgh, this

need for a p r o d u c t t h a t

fo l lowed t he t r end l n s t lga t ed by t h e g r e a t

f ragrance c rea tors o f our t lme ... t n a t ls, a

French f rzgrance wl th a s u b t l e h l n t o f O r l e n t .

Furthermore,	th is	perfume	had	t o	be w i th ln	t he
reach of	the	widest	xarket	segment	pr lce-wlse	...

and	the	f r ag rance	hzd	t o	be	long- l a s t lng .	You
c o u l d	c a l l	I t a	'Super	Fragrdnce ' .	de	ca l l	It

' O r l e n t ' . We packaged I t t o c a p t b r e a n u n s t l n t -

l ng l ook o f q u a l l t y . Then we p - l ced I t t o .

c a p t u r e t h e attention of t h e t h r l f t l c s t cf buyers."

A f a c s l m l l e o f one o f t ne p ro2osed adve r t z sevn t s t o

be p l a c e d I n t h e magazines t o whlch I h a v e r e f e r r e d s a d :

'Or i en t ' - It was c rea t ed t o be c l l f f e ren t ,

bo rn t o cap tu re t he full rlchnesc. end mystery

o f l l f e t h a t 1s t he Eas t . I'

I n add l t lon t o t he b rochure ana t he advc r t l s emen t In

Pharmacy Trade, there hsve been placed I n e v l a e n c e f u r t h e r

a d v e r t l s l n g m a t e r i a l a n a a d l s p l a y c a s e c o n t a n l n q t h e

range of Or ien t p roducts .

A s ea r l i c r nen t ioned , t hc re had been comrr,enced I n 1978

J . c.

an ex ter , s lve p romot ion of the appl icants ' Oplum range

of	p roducts .	This	had	empnas lsed	the	o r len ta l	cnarac te r
of	the	p roduct .	Thus	I n a	la rge	adver t l sement	publ l shed
i n t h e	August	1978	i s s u e	o f	Vogue	magazine	a t t h e k e p l n n l n g

of the Opium ?romotion, the following appeared:

"Captured f rom the Orient - Opium perfume is a

r i c h and sp icy conpos i t lon o f Jasmine , Xyrrh ,

Coriander, Opopanax, BenJamln from Slam and

o t h e r l n t r l g u i n g a r o m a s , woven I n t o t h e rnost

sensual, mysterious and smouldering perfume ever

t o come f rom tne c r ea t lve gen lus o f Yves S t

Laurent . I)

Counse l fo r t he app l i can t s subml t t ed add l t lona l ly t ' na t t he

name "Opium" i t s e l f lmplled a connection wltn the East and

i t s myster ies .

Each of the products was s a l d t o be a French perfume.

Each o f t h e c o n t a m e r s o f t h e Oplum range o f p roducts kears

the words, "made In F rance" , a s we l l es t h e name Yves St

Laurent. The respondent ' s p roduct 1 s d e s c r l k e d a s e Frpnch

f r ag rance	w i th	a	h m t of	t he	Or l en t .	The	Grlent	product
packages	bear	the	words,	"Parfums	E&o	- Par is" .	That	l s7bus lness

nzns r z g s t e r e d i n S o u t h A L s t r a l l a aRd Intended tQ h-. ree:stere:!

I n F r a n c e , b u t t h e r e 1 s no thmg on t h e c o n t a m e r t o l n d l c e t e

t h d t t h i s t h a t t h e p r o d u c t 1 s so. C lea r ly , o rd ina ry peo;le \>ould uneerstand

was In some way of French or lEi r? .

I t i s now necessary to s a y sorncth~n,; of th? pack,lglng

of eacn product. Most of the p z c k a g ~ n g 1s I n b o t t l e s or

other conta iners which a re themselves encased In

cardboard boxes. Ths predomlnat colour has a black of the Oplum

boxes i s brown. Each box top ana bottom

and a surroundlng i t s top d i s t i n c t b l z c k band o f a cen t ime t re o r l e s s

and bottom edges. Each of the

brown f a c e s i s d iv lded by three bleck-edged, narrow gold

bands. Upon t h e brown f a c e s a r e a l s o p o r t r a y e d g o l d e n

l eaves . The name Oplum a p p e a r s i n g o l d on t h e c e n t r e

of one o f t h e brown faces of each box. The name Yves

S t L a u r e n t a p p a r s a l s o I n eo ld on the lower black

surround of each. There 1 s o t h e r n o t a t i o n on each , bjut

I t 1s n o t d l s t l n c t l v e and It 1 s no t necessa ry 50 r e f e r

to It.

The predominant colour 3f the Orlenz boxes 1s red .

L i k e t h e Opium	boxes	they	have	bleck	tops	and	bottoms	end
b l a c k	s u r r o u n d s	a t	t h e i r	t o p	and	bottom.	They	CO not

have gold bands on the red background, bu t there a re go ld

bands whlch border the black edges of leaves . the red faces. On

each red of a d i fPerent face a re pa ln ted go lden Th? l e z v e s a r e

snape f rom those on the Op lm boxes . The

gold 1s a somewhat d i f f e ren t shade o f go ld . Upon each o f

the Or ien t boxes 1s t h e word "Or len t" wr l t ten In , ;o ld In

t h e c e n t r e o f o n e o f t h e r e d f a c e s . ' d r l t t e n i n g o l d on

The	bot	tom black edglng are	the	i .ords	"Parfms	C&o	- +.rls"
A s	i n t h e c a s e	o f	t h e	Oplum	boxes ,	there	j s o t h e r
n o t a t i o n	on	each	t o	which	i t	1s	u n n e c e s s a r y t o r e f e r .

Each product can be d l sp l ayed i n a speclal . ly Tade

disp lay s tand . These a re des lgned to ho ld each product

i n t h e r a n g e and could be used to display promlnently

t h e a r t i c l e s I n a r e t a i l shop vhere they were sold. From

a d l s t ance one ' s lmpress ion i s of a red an5 gold display

i n t h e c a s e o f t h e Orient s t m d , and a brown and gold

d i s p l a y I n t h e c a s e o f t h e Oplum s t and . The d i f f e r e n c e s

whlch t h e r e a r e i n the shape of the l eaves ar.6 the shades

of gold which have been used tend to be obscured. One

is a lso consc ious o f the b lack edglng , a l though In the

c a s e of	the lower	Or ien t	p roducts ,	the	d l sp lay	s t a d I t s e l f
obscures	the	b lack	sur romd.	Tne	names	Oplum and

Or len t a r e p romlnen t ly d i sp l ayed on each stecd.

Mr. Nlnio was c ross -exammed to sugges t thz t the

respondent had de l lbera te ly iml ta ted the ge t -up o f t h e

applicants' product . He den led t h l s , bu t he d l d ag ree

t h a t t h e r e was some resemblance between t h e t i r o packages

and s a l d t h a t t h l s h a d b e e n p e r c e i v e d b e f o r e I t was

declded to adopt the packaglng which has been selected.

Other	suggested	forms	of	packaglng	were	dlsczrded.	Mr.
N i n l o s a l d t h a t	o f	a l l	the	forms	of	packagln:-	?..hch had
been cons ldered ,	he	thought	tha t	the	one	se lec ted	was

c l o s e s t t o t h a t o f t h e	Oplum	products	whlch he	knew	had
been	very	successfu l .	He was asken why he	chose	one
which was	c l o s e	a t	a l l .	He	s a i d :

"Well, we comparlson. h o n e s t l y b e l l e v e d t h a t t h e r e

was no	real	We	thought
t h a t I t was	q u i t e d i s t l n c t	and	q u i t e
different."

I express no f m a l n e w on t h e v e r a c l t y o f t h a t e v l d e n c e ,

b u t f o r t h e p u r p o s e s o f t h i s a p p l l c a t l o n f o r l n t e r l o c u t o r y

r e l i e f I th ink I should proceed on the assumption that It

i s cor rec t . There was argument a s to t he r e l evance o f

eviden2.e which would tend t o show a c snsc1ods l n t en t lon

t o l m t a t e . a p p l i c a t l o n t o I t 1s n o t a p p r o p r i a t e I n a n m I e r l o c u t o r y

come t o any f lna l conc lus lon abous t h s

s ignif icance whlch such evldence could have. I n t h e h g h t

of the evldence given by Mr. Nlnlo, It can I n any event

p l a y no p a r t i n t h e outcome of the procecdlngs. I should

assume the re fo re , w i thou t my dec l s lon hav lng any e f f ec t

f o r t h e f i n a l h e a r l n g , t h a t t h e r e was no conscious d e c i s l o n

t o l m l t a t e o r copy the Opium get-up.

I should next rnent lon that evidence hss l e d on behalf

o f t he r e sponden t t ha t t he Or l en t r ange o f p roduc t s was

in t ended t o	s e l l	i n a	d i f f e r e n t s e c t l o n o f	t h e	market	from
t h a t I n whlch	t h e 0plu.n	products	a r e sold.	In	paragraph	6

of h l s a f f i d a v l t Mr. Nlnio sa ld :

W l t h i n t h e Australian perfumery market there

a r e t h r e e d i s t i n c t s u b - m a r k e t s c a t e r e d f o r by

the fo l lowing ca t egor l es of market:

( a ) 'Premium' o r ' h a u t e c o u t u r e ' b r a n d s s e l l m g

a t r e t a i l u n i t p r l c e s g e n e r a l l y i n e x c e s s

of $20;

(b) P r o d u c t s s p e c l f l c a l l y c o m p r l s l n g t h o s e

products by t h e Avon group,	marketed	by
d o o r t o d o o r s e l l l n g ;

( c ) A grou;, o f products comnocly referred to I n

t h e t r a d e a s ' l l f e - s t y l e f r a g r a n c e s ' selling

a t r e t a l l unit p r l c e s l e s s t h a n ::10."

M r . Nin io ' s ev i5ence was t h a t t n c O?ium rznce o f

p roducts was of 7remium q u a l l t y w h l l s t r h e O r l e n t r a g e

was	not .	I t was	i n	t h e	l l f e - s t y l e	c a t e , p o r y .	If	t h i s
evldence	were	accepted,	one	would	be	i n c l l n e d	t o	conclude

t h a t t h e r e was l e s s l ike l lhood of decept lon becsuse the

two products would not be in compet l t lon wl th one another .

However, I do not accept the ev idence . Amongst t h e

documents produced by the respondent pursuent to a n o t l c e

to produce was e document prepared i n i t s o f f l c e f o r t n e

company whlcn had deslgned I t s packaging. Arnon-gst o t h e r

tn ings , the docunent sa id :

" A l l packaging	and	POS	rna ter la l	to	be	as
c l o s e	as	economica l ly	f ea s lb l e	t o	t he	b e s t

q u a l l t y a v a l l a b l e from competltlve perfumes

on the marke t p lace , 1 .e . French Srznds . "

I n r e l a t i o n t o t h a t document Mr.. Ninlo C1;ave t h e

fol lowlng evidence:

"What i s t'ne obJect of packagmg it i n t h a t

way? (That ls, I n the way pro7osed In the

document t o whlch I have Zus t re fe r red)

--- , The i n f e r e n c e 1s t h a t I t should be packaged

i n a packaging. good-looking coctalner and gooc-looklng

I n a s good a look ing package a s , w l th ln - r eason ,

the h lgh qua l i ty French per fume?	----	That	1s
c o r r e c t .
Would you p l e a s e t e l l	me	why,	whzt 1s t h e

objec t o f do ing tha t , where does i t l e a d t o ?

---- S a l e s .

On	what	basis?-----	Appearance end peckagmg.
Your	cus toners a re no t buylng	t h +	cackaglng,
t h e y a re buying	what	1s i n s i d e ?	---- Yes.

Is n o t t h e o b J e c t t o make them t h m k t h e t they

a re ge t t l ng someth lng wh ich ,	lf	n o t a s	good	as ,
i s	n e a r l y a s	good	as	tne h lgh qua l l t y p roduc t?

---- Yes, I suppose thz t would be r l g h t .

So	t o t h a t e x t e n t	you	a r e I n c o m p e t l t l s n	w i t h
a	h i g h q u a l i t y p r o d u c t s u c h a s	t h i s	O?ium?	----To

t ha t ex ten t , yes . "

I t 1 s t r u e t h a t t h e O r l e n t ran;? wlll be marketed a t

p r l c e s s u b s t a n t l a l l y l e s s t h a n t h 3 s e a t vhlck: the Oplux

range of p roduc t s s e l l s . Bu t the evldence to whlc? I

have re fer red establishes, I n my o?lnlo:1, t n a t t o a n

a p p r e c l a b l e	e x t e n t	t h s two	Groducts,	If	the	Or len t	range
comes	on	t o t h e m a r k e t ,	w	l	l	l	neve r the l e s s be In com3e t l t l on .

Furthermore, Yr. Nlnlo had elso given evldence to

t h e f o l l o w l n g e f f e c t :

"The perfune market had for zany ye&rs been

d l v l d e d , I suggest tc you, betwecr. Srench 2r.d

non-French	perfumes,	had It not? ---- Yes.
"And	French be ing the expens ive ,	p res t lg ious

perfumes,	1s t h a t c o r r e c t ?	---	That	1 s c o r r e c t .
And	the o the r s be ing	less	p r e s t l g i o u s	and not

commanding such a premium? --- That 1s r l g h t . "

Notwlthstanding that evldence, and Nr. X l n l o ' s

a f f l d a v i t , t o whlch I h a v e e a r l l e r r e f e r r e d , t h e f a c t

r ema lns t ha t t he Or l en t r ange	wlll	be marketed as	a
French	perfume.	So much	1s c l e a r from t h e name Parfums

I

Deco-Parls which appears on ecch o f the boxes, and from

t h e a d v e r t l s i n g m a t e r l a l which descr lbed the product as

'la French f ragrance wl th a s u b t l e h i n t o f Or len t" . For

t h e p u r p o s e s o f t h i s a p p l i c a t i o n I c o n c l u d e t n a t t h e two

p r o d u c t s a r e l l k e l y t o De i n c o m 7 e t l t l o n with one enother.

That belng a f m d i n g i n a n i n t e r l o c u t o r y a ? p l l c a t l c n , I t

i s n o t a f lnd lng in tended . to b lnd the cour t when It comes

t o c o n s l d e r t h e m a t t e r o n t h e f l n a l h e a r l n g .

The remalning evldent lary mat ter to whlch I should

r e f e r is t h a t It was the packaging a lme whlch was r c l ~ e d

upon by t h e a p p l i c a n t . I t was n o t t h e q u a l l t y o r essential

c h a r a c t e r i s t l c s o f t h e two produ,cts whlc:I w e r e I n q u c s t l m .

It seemecl t o be assured that purchases would be on the

bns ls	o f	appearance ,	no twl ths tandlng tha t	there	w%s e v ~ d e n c e
t h a t many	purchasers	of	perfume	t r y i t on	before dec ld lng
t o buy.

Fo r t he r e l l e f wh lch t hey c l a l rn , t he ; p l l cnn t r , r e ly

upon threatened breaches of s.52 o f t h e T r a d e P r - c c u c e s

Act 1974 and upon pass ing o f f . For t h e Toment I s h a l l

p u t p a s s l n g o f f on one s ide. Sect lon 52(1) oi the Trade

P r a c t l c e s Act provldes:

"P. c o r p o r a t l o n s h a l l n o t I n t r a d e o r .

commerce	engage	I n c o n d u c t t h a t	i s mls-
l e a d i n g	o r decept lve	or	t h a t 1 s l l k e l y

to mi s l ead o r dece ive . "

I n s u p p o r t o f t hem case, based upon th rea t ened

b reaches o f t he s ec t lon , t he apa l i can t - - e l i ed , bo th

a l t e r n a t l v e l y a n d c u m u l a t i v e l y ,	upon	t h e	following	propos-
l t l o n s :

( a ) MeTbers of t he pub l l c or s i g n l f i c a n t s e c t l o n s

of	t h e p u b l i c	w l l l be	mlsled	or	d e c e l v e d i n t o
b e l i e v m g t h a t t h e	two	products	a re	the	sane .

( b ) Members of t h e p u b l i c or s i g n l f l c a n z s e c t l o n s

o f It w i l l be mlsled or d e c e l v e d m t a b e l l e v n g

t n a t t h e two p roduc t s o r ig ina t e f r cm t h p same

t r a d e s o u r c e , or have a b u s m e s s connection wlth

the saine sou rce , or t h a t t h e O r l e n t p r o d u c t hes

the sponsorsh lp o f the a p p l l c a n t s .

The f i rs t of t hese con ten t lons was no t s t r o n g l y p r e s s e d

a l though it was s a i d t h a t where the Or l en t r ange was t h e

only p roduct so ld , e l ther because I t was s o l d I n a s e c t l o n

of a s t o r e away f r o 7 t h a t where t h e Opium range was s o l d or

because the Opium range was no t s tocked , t he re would be

l l k e l y t o be s l g n i f i c a n t c o n f u s l o n and thus decept lon .

However, i t was the second proposl t ion whlcn was t h e

m o s t s t r o n g l y r e l i e d upon. Importantly It w a s s a l d t h a t

members o f t he pub l l c would be dece lved in to ih lnklng tha t

Or l en t was a cheaper vers ion o f t h e Opium product .

I n suppor t of t h e i r s u b m l s s l o n t h e a p p l l c a n t s r e l l e d

upon	t h e f o l l o w m g m a t t e r s o f d e t a i l :
(a) Both products go o r w l l l EO t o t h e p u b l l c

as French perfumes.

(b) Both a r e a l s o o r i e n t a l f r a g r a n c e s .

( c ) Tne names Opium an5 Orienr; are slrnllar. Eoth

commence wl th t he l e t t e r 0. Both a r e s h o r t

t h ree sy l l ab le words .

(d) Both have an Eastern theme.

( e ) The p a c k a g l n g h a s s i n l l a r f l o r a l x o t i f s a g a l n s t

a dark coloured background, In the one case red

and I n t h & t h e r brown, co lou r s whlcR a r e o f t he

same group.	Both	have	black edelng	on	the showed	top
and	bottom.	Some	o f	t h e	a d v e r t l s i n g	t h e

red as a lmost brown. That I S t r u e o d y o f t he

f a c s l n l l e magazlne page shown 13 t ne Pha rmcy

Trade magazlne.

( f )	The b o t t l e s , some of whlch were on d l s p l a y
were o f s i m i l a r s l z e and design.

(g) Nothing on the Or ien t packaglng mdlca ted

t h e name of the manufacturer o r t h e s o u r c e

from whlck the goods have cone. The name

Parfums Deco-Pans was no t necesse r i ly an

i n d i c a t l o n o f t h i s , I t would nGt r e a d l l y

o c c u r t o o n e t h a t	It	was	a	r e g i s t e r e d b u s m e s s
name.

( h ) The Or len t p roduc t s were t o be s o l d In t h e

same market as t h e Cpium products .

Counsel f o r t h e applicants r e l i e d upon t h e a c c m u l a t l o n

o f a l l to t a l l t y o f t h e s e f a c t o r s . He acknowledged t h z t I t was t h e

t he impress ion conveyed by the get-up looked a t

o v e r a l l , whlch was the c r l t l c e l c o n s l d e r a t l o n . PeFhaps

because the Or ien t p roduct 1 s not ye t on the marke t , o r

p e r h a p s f o r o t h e r r e a s o n s , t h e r e was n o t a v a i l a o l e e v l d e n c e

of t he k ind no t uncommonly c a l l e d I n t h e s e c a s e s f r o m

members o f t h e p u b l i c , who mlght say t h d t they were o r were

not mls led , dece lved o r confused by the appearcnce G f t h e

Orlent get-up. Such evldence 1s u s u a l l y h e l p f u l . I n th l s

c a s e I must do t h e b e s t I can wlthout i t . 1 must brlne; whether t o

bear ugon t he app l i can t s have t h e m a t e r i a l q u e s t l o n t o be declded, naxely

made o u t a p r i w f a c l e c a s e , a Judgment

on whether	members	o f t he pub l i c	wlll	be misled	o r
deceived o r w i l l be	l i k e l y t o	be	misled	o r	dece lved ,

when the Or len t range of p roducts comes on t o t h e

m a r k e t , i n t o t h l n k l n g e i t h e r t h a t t h e p r o d u c t s a r e t h e

same a s t h o s e I n t h e Opium range, o r come from the same

source - uslng	that	expresslon	compendiously	to	embrace
a l l t h e m a t t e r s r e l i e d	on	by	the applicants l	n	tha t
regard.

I n coming t o a conclusion I must bear In mind t h a t

t h i s	i s	a n i n t e r l o c u t o r y a p p l i c a t l o n	and	n o t	a	f l n e l
hear lng .	The	appl lcants	must	demonsrrate	that	i f

the ev idence remalns as It 1 s they w l l l ?robably succeed.

I n t ha t c o n t e x t , t h e word "probably" i s n o t u s e d i n t h e

sense o f more probably than f io t bu t in the sense o f

there be ing , upon the bas i s of the evidence 13 t h e

l n t e r l o c u t o r y p r o a e e d l n g s , a s i g n l f i c a n t o r real ques t ion

t o b e t r l e d . s h o u l d a l s o b e a r I n On the o the r hand , so It seeps t o -e, I

mind t h a t It 1s unlikely t h c r e rill

be, u7on a f l n a l h e a r l n g of t h e m a t t e r , much a d c l t l o f i a l

evidence which w l l l b e a r d l r e c t l y on t h e u l t l m e t e q u e s t i o n

t o be declded. The I s sues o f conscious lml ta t lon and

market remain to be declded. Xowever, i n t h e end It wlll

be a ques t ion of assessing, upon the b s l s o f t he a ? p a r -

ance of the two p roduc t s , t he l l ke l lhood o f mexbers of

the publ ic be lng mis led o r deceived. I should ~ d d t h s t

i f	i n t e r l o c u t o r y r e l i e f w e r e g r a n t e d	It	would	seem
u n l l k e l y t h a t a n y	o f	t h e u s e r	or	p o t e n t i a l u s e r e v i d e n c e

c a l l e d I n some of these cases would be a v e l l a b l e . The

p roduc t cou ld no t be r e l eased on to the marke t a t l e a s t

before the f ina l hear ing had concluded .

I n r e l a t i o n t o t h e s p e c l f i c m a t t e r s r e l l e d on by

the app l i can t s t he re can be no ques t lon bu t t hac t ne

m a t t e r s s t a t e d i n t h e v a r l o u s p a r a z r a p h s are a l l p roper

to be t aken in to account . Nor can there be any gues t lon

as t o t h e c o r r e c t n e s s o f b h z t t n e a p p l i c a n t s a s s e r t I n

each of those paragraphs. Eacr. i s f a c t u a l l y c 3 r r e c t .

However, d e s p l t e t h e s l m l l a r l t l e s t h e d l f f e r e n c e s re321r..

The packages	to	be	used	and	t h e i r p o r t r a y a l	l n a o s t	o f	t h e
a d v e r t i s i n g	m a t e r i a l	a r e	a	d i s t lnc t	red .	Those	o f	tne

Opium ran ,se a re a a l s t i n c t brown. The boxes a r e a l s o

d l f f e ren t because t he shapes o f t he l eaves 2r:i t h e t v o

shades o f go ld a re fa r f rom be ing ident lc2 . l . Tht Or ie r , t

boxes do not have gold bands except a t t he t op and bo t tom

edges. The nnmes Oplum and O r l e n t a r e n o t t h e s h e .

Counsel for t h e a p p l l c a n t s r l g h t l y c z u t l o n e d me Egalcs t

a l l o w l n g t h e f a c t t h a t t h e c a s e h a s b e e n b e f c r e me f o r a

week or so t o c o n c e n t r a t e my a t t e n t i o n too mucn on t h e

d l s s m l l a r i t l e s and away f r o m t h e o v e r a l l e f f e c t of t n e

packeging on the mnds of custoners End pa tcr . t l a1 cus tsmers

In the envl ronnent o f re ta i l s tores , be tney pharmacles or

otherwlse.	I have	endeavoured	to	heed	that	warnmg.
The	d i f f e r e n c e s n e v e r t h e l e s s a r e t h e r e	a	d	i n	my	view
make	t h e	p r o d u c t s	d l s t m c t .	Red	m d brown may	be

from t h e same group of colours kut they are n o t t h e

same. The words "Oplumll and "Crlsnt" may b e s h o r t ,

th ree sy l lab le words whlch may t o some n lnds conJure

up some of the mystery of the East , a l thou5h -whether

Opium has the same c o n n o t a t l o n a s O r i e n t i n t h l s r e s p e c t

I am n o t N o t w l t h s t a n d i n g s u r e . But t h e words a r e d i f f e r e n c e s d l f f e r e n t w o r d s .

t h e s l m i l a r l t l e s , t h e whlch

e x i s t a r e p r o d u c t s l n d l v i d u a l l y a s In my vlew marked. If one looks a t t h e

by p ick lng U? two ?ackages,

t h o s e d i f f e r e n c e s a r e r e a d i l y p e r c e l v e d . If one locks

a t	the d i sp l ay s t ends f rom	a	dls t snce ,	E l though	It 1s t r u e
t h a t t h e l e a v e s a p p e a r	mucn	t h e	same	anC	t h e d l f f e r e n c e s
I n	t n e	two	s h a d e s o f g o l d a r e n o t d l s t ~ n c t ,	Lhe	d l f f e r e n c e s

a re neve r the l e s s t he re , b rou ,h t abou t Ta ln ly In ~y o>lnlon

by the names o f	t he	two	products	ann	t h e d l s t m c t r e d
co lou r	on	t h e o n e h z n d a n d t n e d l s t ~ n c t	browr.	co lou r	on

t h e o t h e r .

In s ay lng whe t I have I bea r I n mind tn::t c:lstovers

nay no t a lways have the Senef l t o f ke lng n t le to cont ras t

t h e two. That 1 s a n i r p o r t a n t f a c t o r t o rernellker. !jut,

no t over looklng I t , I have to dec lde ',he ma t t e r on t h e

over211 impresslon I hzve of b e e f f e c t o r t'ne l i k e l y e f f e c t

of t h e two p roduc t s on t h e m n d o f t h e p o t e n t i a l

customer. I n t h i s r e s p e c t I th ink i t e p p m p r i a t e

ts mention tha t wnen t h e two products were f l rs t

shown t o me i n chambers on the app l i ca t lon wh ich was

made f o r e x p a r t e re l l e f on 6 i4arch l a s t , i t d i d n c t

t hen occu l n l t i a l and unalded lmpresslon r t o me t h a t t h e case was a c l e w one. My

a t t h l t t l n e ?cas t h a t

the cnance of confuslon was s l i g h t . T h e t was one

reason why I r e f u s e d t h e e x p a r t e r e l i e f whlch was

then sought.

Hav ing r e f l ec t ed on t h ? a a t t e r f o r ti.o o r t!lree

days s ince c l e a r c o n c l u s l o n t h a t I r e se rved my d e c l s l o n , I have reeched t i e

the app l l can t s have no t , as t n e

evldence now s t e n d s , e s t a b l l s h e a B p r o b s h l l l t y o f s u c c e s s

I n t h e s e n s e i n w h l c h t h a t e x p r e s s l o n i s used I n th;

cases . I do n o t t h m k po ten t l a l cus tomers will De -?ls led

l n t o t h l n k i n g t h a t t h e p r o d u c t s a r e t h e same, nor do I

c o n s i d e r t h a t c u s t o n e r s wlll think they come from t h e

same	saurce .
I have not ut11 now cons ldered the cdsc made by tIle

app l l can t s based on p a s s i n g o f f . It r a l s e s somewhat

different c o n s l d e r a t i o n s , b u t t h e e s s e n t i a l m a t t e r for

cons ide ra t lon i s very much t h e same a s I t 1 s under the

Trade Prac t lces Act . No separate argument based on

pass ing o f f was addressed to me. It f o l l o w s t h a t I

do n o t c o n s l d e r t h a t t h e a p p l l c a n t s h s v e made o u t a

case o f th rea tened pass ing of f any more than they have

made o u t a case of threatened breaches o f t h e TrE.de

Prac t lces Act .

My conclus ions make It unnecessa ry fo r me t o con-

s lder	the	balance	of	convenlence.	The evldence	concern-
l n g i t was	n o t	I n	contes t and	I t	a p p e a r s c l e a r l y	and

conc i se ly i n t h e a f f l d a v i t s , t h e e x h l b l t s a n d t h e o r a l

evldence. I do no t need t o make f i n d i n g s on I t . For

t h e reasons 1 h a v e g l v e n , t h e a p p l l c a t l o n f o r l n t e r l o c u t o r y

re l ief 1s re fused .

(There ensued dlscussion wlth coucsel concerning

c o s t s a n d d i r e c t i o n s ) .

The fo rma l o rde r s I make a r e a s fo l lo-ds : Tn e

a p p l i c a t i o n f o r l n t e r l o c u t o r y r e l l e f 1s r e fused . The

the d i r e c t t h e a p p l i c a n t s t o f l l e t h e l r s t a t e m e n t mot lon w i l l be reserved to t h e hear lng . I

cos ts o f

o f c la im OR

o r b e f o r e defence 20 March. I d i r e c t t h e r e s p o n d e n t t o f l l e Its

on or befo re 27 March. L l s t s o f documents are

t o be exchanged on or before 3 Lpr l l . I r spec t lo r . 1s t o

take place forthwith. Any lntcrrogatorles by elther

party are to be served by 22 Aprll and answered by

6 May.	The matter will be mentloned on 27 Msrch next
at 9.30 for further directions,	including a date €or
hearing.	Exhlbits to be returned.