FEDERAL COURT OF AUSTRALIA
Flexopack S.A. Plastics Industry v Flexopack Australia Pty Ltd [2016] FCA 235
File numbers: VID 650 of 2014
VID 52 of 2015Judge: BEACH J Date of judgment: 11 March 2016 Catchwords: TRADE MARKS – infringement – thermoplastic polymers – packaging goods – goods falling within the scope of the registration – goods of the same description – services closely related to registered goods – operation of ss 120(1) and (2) of Trade Marks Act 1995 (Cth) – defences to infringement – defence of use of own name – s 122(1)(a) – defence of “right to register” – s 122(1)(fa) – block to hypothetical registration by s 44(1) – counter-response of honest concurrent use – s 44(3)(a) – block to hypothetical registration by s 60 – further block to hypothetical registration by s 62A – proviso under s 120(2) – defences rejected – infringement claims established
TRADE MARKS – removal from the Register for non-use – application under s 92 – application dismissed – removal from the Register for lack of distinctiveness – application under s 88 – ground under s 41 – operation of the then s 41(5) – grounds not established – s 88 application dismissed
TRADE PRACTICES – misleading or deceptive conduct – ss 18 and 29(1)(a), (g) and (h) of Australian Consumer Law – knowing involvement of director – elements of claims established – passing off – reputation – whether director a joint tortfeasor – elements of claims established
Legislation: Competition and Consumer Act 2010 (Cth) Sch 2, ss 2(1), 18, 29(1)(a), (g), (h)
Evidence Act 1995 (Cth) s 64(2)
Trade Marks Act 1995 (Cth) ss 41, 42(b), 44(1), (3), 57, 60, 62A, 88, 92, 100, 101, 120(1), (2), 122(1)(a), (fa)
Trade Marks Regulations 1995 (Cth) Sch 1Cases cited: Accor Australia & New Zealand Hospitality Pty Ltd v Liv Pty Ltd (2015) 112 IPR 494
Anchorage Capital Partners Pty Ltd v ACPA Pty Ltd (2015) 115 IPR 67; [2015] FCA 882
Anheuser-Busch, Inc v Budějovický Budvar, Národní Podnik [2002] FCA 390; (2002) 56 IPR 182
Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Limited (2014) 317 ALR 73
Australian Competition and Consumer Commission v Dukemaster Pty Ltd [2009] FCA 682
Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640
Australian Postal Corporation v Digital Post Australia Pty Ltd (2013) 105 IPR 1
Bob Jane Corporation Pty Ltd v ACN 149 801 141 Pty Ltd (2013) 97 ACSR 127
Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (2007) 159 FCR 397
Campomar Sociedad, Limitada v Nike International Ltd (2000) 202 CLR 45
Cantarella Bros Pty Ltd v Modena Trading Pty Ltd (2014) 254 CLR 337
Caterpillar Loader Hire (Holdings) Pty Ltd v Caterpillar Tractor Co (1983) 48 ALR 511; 77 FLR 139; 1 IPR 265
Chocolaterie Guylian NV v Registrar of Trade Marks (2009) 180 FCR 60
Comité Interprofessionnel du Vin de Champagne v Powell (2015) 115 IPR…
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- Case
- [2016] FCA 235
- Decision Date
CaseChat Overview and Summary
The court examined the defendant's defences, including the "own name" defence and the defence of honest concurrent use. It found that the defendant's use of the term "Flexopack" without the addition of "Australia" constituted trademark infringement as the goods and services offered by both parties were of the same description or closely related. The court also dismissed the defendant's arguments that it had a right to register the trademark and that it had been using the name in good faith. The court held that the defendant's failure to conduct proper inquiries regarding the plaintiff's trademark did not provide a valid defence.
Regarding the misleading or deceptive conduct claims, the court found that the defendant's actions had indeed created relevant confusion and met the threshold for misleading or deceptive conduct under the Australian Consumer Law. The court also established that Mr Katelis, as a director, was personally liable for the company's actions due to his close involvement in the infringing activities. The court concluded that the defendant's conduct was not merely transitory or ephemeral and that it was likely to mislead a significant number of customers.
The court ordered that the plaintiff prepare and serve proposed minutes of orders within 14 days, followed by the defendant's response. Costs were reserved for a later determination.
Orders
Orders of the court
1. The Applicant file and serve within 14 days of the date hereof proposed minutes of orders and short submissions (no more than three pages) to give effect to these reasons.
2. The Respondents file and serve within 14 days of receipt of the Applicant’s minutes and submissions proposed minutes of orders and short submissions (no more than three pages) to give effect to these reasons.
3. Costs reserved.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Finally, and as I have said, the First Respondent has used the word “Flexopack” without “Australia” in its domain name, on the First Respondent’s website and on a quotation. The “own name” defence does not apply to that use.(d) Failing to cease conduct once put on notice of the Applicant and the Flexopack Registration Further, even if the First Respondent initially adopted its name in good faith, it and Mr Katelis were on notice of the Applicant and its rights by at least 15 May 2014 and the potentiality for confusion. Moreover, Mr Katelis must have known by the conversation with Mr Georgakakis in early 2014 that the Applicant was conducting business in Australia. From that time, the “own name” defence was not available. There was knowledge at that time of the Applicant’s position and the potentiality for confusion. Seventh, for the purposes of s 18, the words “likely to mislead or deceive” demonstrate that it is not necessary to show actual deception. Relatedly, it is not necessary to adduce evidence from persons to show that they were actually misled or deceived. Eighth, there must be a sufficient nexus between the impugned conduct or apprehended conduct and the customer’s misconception or deception. As was said in SAP Australia Pty Ltd v Sapient Australia Pty Ltd (1999) 169 ALR 1 at [51] by French, Heerey and Lindgren JJ:The characterisation of conduct as “misleading or deceptive or likely to mislead or deceive” involves a judgment of a notional cause and effect relationship between the conduct and the putative consumer’s state of mind. Implicit in that judgment is a selection process which can reject some causal connections, which, although theoretically open, are too tenuous or impose responsibility otherwise than in accordance with the policy of the legislation. Subject to one qualification, the error or misconception must result from the respondent’s conduct and not from other circumstances for which the respondent was not responsible. But conduct that exploits or feeds into and thereby reinforces the pre-existing mistaken views of members of the relevant class may be misleading or deceptive or likely to mislead or deceive. Ninth, conduct that is merely transitory or ephemeral where any likely misleading impression is likely to be readily or quickly dispelled or corrected does not constitute conduct that would infringe s 18 (Knight v Beyond Properties Pty Ltd (2007) 242 ALR 586 at [58] per French, Tamberlin and Rares JJ). Tenth, and relatedly, it is one thing to say that the conduct must be more than transitory or ephemeral, but it is another thing to say that the conduct or its effect must endure up to some “point of sale”. There is no such requirement to establish a s 18 contravention. Relatedly, it is not necessary to show any actual or completed transaction entered into. Eleventh, in determining whether a contravention of s 18 has occurred, the focus of the inquiry is on whether a not insignificant number within the class have been misled or deceived or are likely to have been misled or deceived by the respondent’s conduct. There has been some debate about the meaning of “a not insignificant number”. The Campomar formulation looks at the issue in a normative sense. The reactions of the hypothetical individual within the class are considered. The hypothetical individual is a reasonable or ordinary member of the class. Does satisfying the Campomar formulation satisfy the “not insignificant number” requirement? I am inclined to the view that if, applying the Campomar test, reasonable members of the class would be likely to be misled, then such a finding carries with it that a significant proportion of the class would be likely to be misled. But if I am wrong and that a finding of a “not insignificant number” of members of the class being likely to be misled is an additional requirement that needs to be satisfied, then I would make that finding in the present case. For a discussion of these issues, see Greenwood J’s analysis in Peter Bodum A/S v DKSH Australia Pty Ltd (2011) 280 ALR 639 at [206] to [210] and National Exchange Pty Ltd v Australian Securities and Investments Commission (2004) 61 IPR 420 at [70] and [71] per Jacobson and Bennett JJ.