Colorado Group Ltd v Strandbags Group Pty Ltd (No 2)

The case of Colorado Group Ltd v Strandbags Group Pty Ltd (No 2) dealt with disputes concerning the ownership and use of the trade mark “Colorado” for backpacks. Colorado Group, the applicant, alleged that Strandbags Group, the respondent, had infringed upon their trade mark rights by selling backpacks under the same name. The case was heard by the Federal Court of Australia. The primary legal issues in the case revolved around the validity of Colorado Group’s trade mark registration, the scope of that registration, and whether Strandbags Group had infringed upon Colorado Group’s rights by selling backpacks under the “Colorado” brand.

The court examined the scope of the trade mark registration held by Colorado Group, specifically whether it included backpacks. It was found that the registration did not cover backpacks. Consequently, Strandbags Group was not found to be infringing upon Colorado Group’s trade mark rights with respect to backpacks. The court also considered the passing off and Trade Practices Act claims brought by Colorado Group, which were dismissed. The court ruled that the registration should be rectified to remove references to bags, belts, wallets, and purses, and that Strandbags Group should not sell or promote backpacks under the “Colorado” mark.

In summary, the court decided in favor of Strandbags Group on the primary issues of trade mark infringement and the scope of the registration. The court mandated that Strandbags Group provide an affidavit detailing their sales of “Colorado” branded backpacks, and restrained them from selling or promoting such backpacks. The court also ordered the rectification of the trade mark registration to exclude certain items and dismissed Colorado Group’s passing off and Trade Practices Act claims. Costs orders were made, with Strandbags Group required to pay certain costs related to an accounting of profits or assessment of damages.