Judgments

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T-415-76
Ron MacKenzie (Applicant) v.
Busy Bee Enterprises International Ltd. (Respondent)
Trial Division, Mahoney J.—Vancouver, Novem- ber 23; Ottawa, December 22, 1976.
Trade marks—Application to strike two entries from regis- ter—Whether first mark registrable—Whether second mark can stand on its own Public policy—Trade Marks Act, R.S.C. 1970, c. T-10, s. 57(1).
Applicant seeks an order that two entries be struck from the register of trade marks on the ground that they do not accu rately express or define the rights of their owner.
Held, the application is allowed. The first trade mark is in respect of services only and, not being distinctive of the owner's services, was not registrable and should be expunged. The second mark, in so far as it pertains to the services of the owner, cannot stand on its own once the first mark has been expunged since it would constitute a monopoly to traffic in the trade mark itself, which is contrary to public policy.
APPLICATION to strike out trade marks.
COUNSEL:
T. D. Devitt for applicant. D. A. Race for respondent.
SOLICITORS:
Barbeau, McKercher, Collingwood & Hanna, Vancouver, for applicant.
Goldman, Kemp & Craig, Vancouver, for respondent.
The following are the reasons for judgment rendered in English by
MAHONEY J.: The applicant seeks an order under section 57(1) of the Trade Marks Act, that the entries of numbers 183,692 and 195,822 be struck from the register of trade marks on the ground that they do not accurately express or define the existing rights of their registered owner, the respondent. The date as of which that determi nation of fact is to be made is the date of the
application, January 27, 1976; however, one of the grounds for such a finding is that the trade mark in question was not registrable in the first place.
Trade mark 183,692 was applied for by Garfin & Wener Enterprises Ltd. on June 16, 1971. That company, hereinafter called G & W, sold all of its rights in the trade mark to the respondent March 17, 1972. Registration issued June 9, 1972. No. 183,692 is for the phrase BUSY BEE ONE HOUR CLEANERS in respect of services only with right to the exclusive use of the last three words dis claimed apart from the trade mark. The services in respect of which it is registered are: "cleaners, pressers, dryers, launderers and repairers of cloth ing, fabrics, goods and household furnishings".
Trade mark 195,822, applied for by the respond ent September 21, 1972 and registered November 30, 1973 is for the phrase busy bee 1 Hour Clean ers together with a logogram representing a bee to distinguish both wares and services. The exclusive use of the numeral and words "1 Hour Cleaners" are disclaimed apart from the trade mark. The services in respect of which it is registered are: "granting of licences, leases, concessions or fran chises to others for the operation of cleaners, pressers, dryers, launderers, repairers of clothing, fabrics, goods and household furnishings". It is unnecessary to detail the wares which No. 195,822 distinguishes; no evidence whatever was adduced in support of the application that dealt with the trade mark as it relates to the wares.
The respondent was incorporated June 21, 1966 under the name Busy Bee Enterprises Ltd. and on April 2, 1970, duly adopted its present corporate name. From its inception it has actively engaged in the business of opening dry-cleaning stores in Brit- ish Columbia. Its avowed modus operandi is to sell a store once set up and to enter into a franchise agreement with the purchaser.
The evidence leads to the inference that the respondent and G & W were, in some way, relat ed; there was some community of their corporate officers, however, the precise relationship is not
disclosed. The respondent sold its first five stores to G & W in 1966. It sold five more to G & W prior to September, 1969. It also sold stores direct to third parties. G & W, in turn, sold stores or interests in stores to third parties. In the case of the G & W stores, actual ownership of each appears to have been vested in a distinct corporate entity, no doubt, initially a wholly owned subsidi ary of G & W, with the third parties obtaining their interests by purchasing shares in the subsidi aries from G & W.
Well before G & W's application that led to registration of trade mark 183,692 either or both G & W and the respondent had permitted a number of third parties to use the words "Busy Bee" in a variety of combinations in connection with their operation of dry cleaning establish ments. The trade mark was not distinctive of G & W's services when it applied to register it and was not then registrable; it should be expunged.
Strictly speaking, as the respondent argues, there is no satisfactory evidence that anyone, other than the respondent, has used trade mark 195,822 in connection with the services it covers, that is, the licensing, etc. of the operation of dry cleaning establishments. That said, I do not think that, as it pertains to those services, No. 195,822 can stand on its own once No. 183,692 is expunged. A monopoly on the use of "Busy Bee" in connection with the licensing, leasing, franchising and so on of dry cleaning stores, where the same monopoly does not exist in respect of the services offered to the public by those stores, is nothing more than a monopoly to traffic in the trade mark itself and void, being contrary to public policy.
In the result, trade mark 183,692 will be expunged from the register and the entry of trade mark 195,822 will be amended by striking out the services in respect of which it was registered. It is an appropriate, in the circumstances, for the par ties to bear their own costs.
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