Nikken Wellness Pty Ltd v van Voorst

Link copied
Case Copied 29 min read

FEDERAL COURT OF AUSTRALIA

Nikken Wellness Pty Ltd v van Voorst [2003] FCA 816

TRADE MARKS -  Action to restrain repetition of claims of infringement of registered trade mark – Whether activities of applicant were an infringement – Trade mark registered in respect of two described categories – Proper approach to interpreting description of categories of registration – Whether it is legitimate to have regard to previous activities of registered owner in construing descriptions – Whether applicant’s goods can be described as ‘magnets’ – Infringement not established – Application for removal of mark from Trade Marks Register – Onus of proof – Whether applicant has established lack of intention to use in good faith and non-use during relevant period – Removal order made.

Trade Marks Act 1995 (Cth) ss 6, 27, 92, 129, 209, 210, 211

Trade Marks Regulations 1995 (Cth) cl 4.4, Schedule 1

NIKKEN WELLNESS PTY LIMITED v NICOLAAS VAN VOORST
N 1232 of 2001

WILCOX J
8 AUGUST 2003
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N1232 of 2001

BETWEEN:

NIKKEN WELLNESS PTY LIMITED
APPLICANT/CROSS-RESPONDENT

AND:

NICOLAAS VAN VOORST
RESPONDENT/CROSS-CLAIMANT

JUDGE:

WILCOX J

DATE OF ORDER:

8 AUGUST 2003

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.It be declared that the respondent, Nicolaas van Voorst, had no grounds for making the threats referred to in paragraph 4 of the Statement of Claim that distribution or other conduct in relation to products of the applicant, Nikken Wellness Pty Ltd, infringed the respondent’s registered trade mark.

2.        The respondent be restrained from:
           (a)       continuing to make the threats referred to in order 1; and

(b)representing to distributors of the applicant’s products and persons who are, or are likely to be, involved in the promotion or the facilitation of the promotion of the applicant’s products that:

(i)they are infringing the respondent’s trade mark;

(ii)they are liable to have legal proceedings commenced against them on the ground that they had infringed or would infringe the respondent’s registered trade mark;

(iii)the applicant is not entitled to distribute its products;

(iv)the applicant is distributing therapeutic magnets under the respondent’s trade mark without his permission;

(v)the activity of housing meetings by distributors of the applicant’s products for the purpose of selling those products, is illegal; and

(vi)they should cease such illegal activity.

3.Australian registered trade mark no 837953, being NIKKEN registered in classes 10 and 35, be removed from the Register of Trade Marks.

4.The respondent’s counter-claim be dismissed.

5.The respondent pay the costs incurred by the applicant in connection with the proceeding.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N1232 of 2001

BETWEEN:

NIKKEN WELLNESS PTY LIMITED
APPLICANT/CROSS-RESPONDENT

AND:

NICOLAAS VAN VOORST
RESPONDENT/CROSS-CLAIMANT

JUDGE:

WILCOX J

DATE:

8 AUGUST 2003

PLACE:

SYDNEY

REASONS FOR JUDGMENT

WILCOX J:

  1. This proceeding arises under the Trade Marks Act 1995 (Cth) (‘the Act’). The applicant, Nikken Wellness Pty Ltd (‘Nikken Wellness’),…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Nikken Wellness Pty Ltd v van Voorst and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2003] FCA 816
Decision Date

CaseChat Overview and Summary

Nikken Wellness Pty Ltd filed a proceeding against Mr van Voorst, alleging he had threatened to sue Nikken Wellness for infringing his registered trade mark MAGNA. Mr van Voorst resisted the action and counterclaimed, seeking a declaration of the validity of his trade mark, an injunction against Nikken Wellness's use of the mark in respect of its products and services, and either damages or an account of profits. Nikken Wellness sought a declaration that Mr van Voorst had no grounds to make the threats, an injunction restraining Mr van Voorst from continuing to make such threats and misrepresenting the law to Nikken Wellness's distributors, and the removal of the NIKKEN trade mark from the Trade Marks Register. The legal issues before the court were whether Nikken Wellness's activities constituted an infringement of Mr van Voorst's trade mark, the proper approach to interpreting the description of categories of registration, and whether it was legitimate to consider the registered owner's previous activities in construing descriptions. The court found that Nikken Wellness's products did not fall within the description of 'magnets' and that the activities of Nikken Wellness did not constitute an infringement of Mr van Voorst's trade mark. The court also found that it was not legitimate to consider the registered owner's previous activities in construing descriptions. Nikken Wellness's application for the removal of the NIKKEN trade mark from the Trade Marks Register was successful, as the applicant had not established that Nikken Wellness lacked the intention to use the mark in good faith or that it had not used the mark during the relevant period. Mr van Voorst's counter-claim was dismissed, and he was ordered to pay Nikken Wellness's costs.

Orders

Orders of the court

1. It be declared that the respondent, Nicolaas van Voorst, had no grounds for making the threats referred to in paragraph 4 of the Statement of Claim that distribution or other conduct in relation to products of the applicant, Nikken Wellness Pty Ltd, infringed the respondent’s registered trade mark.

2. The respondent be restrained from:

(a) continuing to make the threats referred to in order 1; and

(b) representing to distributors of the applicant’s products and persons who are, or are likely to be, involved in the promotion or the facilitation of the promotion of the applicant’s products that:

(i) they are infringing the respondent’s trade mark;

(ii) they are liable to have legal proceedings commenced against them on the ground that they had infringed or would infringe the respondent’s registered trade mark;

(iii) the applicant is not entitled to distribute its products;

(iv) the applicant is distributing therapeutic magnets under the respondent’s trade mark without his permission;

(v) the activity of housing meetings by distributors of the applicant’s products for the purpose of selling those products, is illegal; and

(vi) they should cease such illegal activity.

3. Australian registered trade mark no 837953, being NIKKEN registered in classes 10 and 35, be removed from the Register of Trade Marks.

4. The respondent’s counter-claim be dismissed.

5. The respondent pay the costs incurred by the applicant in connection with the proceeding.

Background

Background to the litigation

Mr van Voorst admits making allegations of infringement; but he claims these allegations were justified as Nikken Wellness infringed, and continues to infringe, his trade mark. He resists the claim for a removal order. By a counter-claim, Mr van Voorst seeks a declaration of the validity of the trade mark registration; an injunction restraining Nikken Wellness from using the mark, in the course of trade, in respect of the products and services for which it is registered; and either damages or an account of profits.The facts Both parties adduced extensive evidence; excessively extensive in my opinion. The salient facts are relatively brief and substantially uncontroversial. Nikken Wellness is an Australian corporation. It was registered on 20 March 2000. The company is a subsidiary of an American company, Nikken International. That company is owned by Nikken Inc, also an American corporation. It was established in 1989 and has conducted business since then from premises in Irvine, California. Nikken Inc is connected with a Japanese company, Nikkenkenkozoshinkenkyukai Co Limited (‘the Japanese company’), that was established in 1975 by Isamu Masuda. The Japanese company and its affiliates market products built upon a concept of ‘total wellness’ devised by Mr Masuda. In the years since 1975, the Nikken Group has expanded to comprise companies in some 30 countries. Nikken Wellness commenced business in September 2000. Since that time, it has been the exclusive distributor in Australia of Nikken products. These products are manufactured in the United States by Nikken International and imported, fully packaged, into Australia by Nikken Wellness. Nikken Wellness does not sell products directly to the public. It has a network of ‘distributors’, people who are given information about the company’s products, purchase stock from Nikken Wellness and on-sell the products to members of the public. Nikken Wellness publishes brochures extolling its products, but it does not engage in large-scale advertising. Rather, it relies on sales being generated by small-scale activities by its distributors, such as classes and demonstrations, and word-of-mouth promotion. Nikken Wellness markets a wide range of products: nutritional and health supplements, furniture, bedding, massage equipment and similar items. Most of the products are irrelevant to this case. However, some products contain magnetic technology. It was those products that attracted the claims made by Mr van Voorst. Mr van Voorst was born in South Africa, apparently in 1954. He was brought up in Australia. He claims to have become interested in natural therapies and self healing methods in the 1970s and to have first encountered the use of magnets for health purposes in 1980. At that time, he said in his affidavit, he designed wrist bands which were marketed under the trademark MAGNA. Mr van Voorst said he opened a naturopathic clinic on the Sunshine Coast in Queensland in 1981. He said he used magnets in the clinic and, since that time, has sold and distributed many types of magnets.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

WILCOX J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: WILCOX J

Full text does not contain this section.