PTL Services Pty Limited (t/as Fantasy Nightclub) v The Sailaway Corp Pty Limited & the Watermark Corporation Pty Ltd (t/as Maroubra Fantasy Dance Club)

PTL Services Pty Limited (trading as Fantasy Nightclub) brought proceedings against The Sailaway Corp Pty Limited and The Watermark Corporation Pty Limited (trading as Maroubra Fantasy Dance Club) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the alleged infringement of PTL Services' trade mark.

The central legal issue before the Court of Appeal was whether the defendants' use of the name "Maroubra Fantasy Dance Club" constituted a deceptive or confusing use of PTL Services' registered trade mark "Fantasy Nightclub" under the relevant trade practices legislation. This involved determining the likelihood of deception or confusion among the relevant class of consumers.

The Court of Appeal considered the similarities between the names, the nature of the businesses conducted by the parties, and the likely audience. It applied the principles of trade mark law, focusing on the overall impression created by the names and the potential for consumers to be misled into believing that the defendants' business was associated with, or an extension of, PTL Services' business. The Court found that the use of the word "Fantasy" in conjunction with the descriptive terms "Nightclub" and "Dance Club" respectively, in relation to similar entertainment venues, was likely to cause deception or confusion.

Consequently, the Court of Appeal upheld the primary judge's finding of trade mark infringement and dismissed the defendants' appeal.