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England and Wales High Court (Patents Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Patents Court) Decisions >> Lonsdale Sports Ltd v Erol [2013] EWHC 2956 (Pat) (04 October 2013) URL: http://www.bailii.org/ew/cases/EWHC/Patents/2013/2956.html Cite as: [2014] RPC 15, [2013] EWHC 2956 (Pat), [2013] ECC 33 |
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CHANCERY DIVISION
PATENTS COURT
Strand, London, WC2A 2LL |
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B e f o r e :
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Lonsdale Sports Limited |
Appellant |
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- and - |
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Erol |
Respondent |
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Chris Pearson (instructed on a public access basis) for the Respondent
Hearing dates: 3 July 2013
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Crown Copyright ©
Mr Justice Norris :
a) The Hearing Officer selected two marks (those ending "554" and "127") which in her view represented Lonsdale's strongest case. Mark "554" was the elongated "L": Mark "127" was the word "Lonsdale" incorporating the elongated "L", employing chiselled block capitals and laid out in cinemascope style.
b) She noted that the evidence established that substantial figures had been achieved for sponsorship deals, sales in the EU (through Sports Direct sales), worldwide sales and EU royalty receipts: but she observed that those substantial figures "had not been broken down in terms of the proportion which might have accrued to the various marks used or to the goods to which those sales relate", nor had the proportion attributable to the UK been identified; and she concluded "so they are not of any great assistance to me in reaching my decision".
c) She was nonetheless satisfied that mark "127" had been used for the period relevant for the purposes of section 6A TMA 1994 and could therefore be relied upon by Lonsdale.
d) She concluded that whilst there were examples of the word "Lonsdale" incorporating the elongated "L" in a different colour from the rest of the lettering "this is not enough to persuade me that it is the use of the earlier mark ["554"] as and of itself". She therefore held that Lonsdale was not entitled to rely on mark "554".
e) She identified the average consumers as members of the public at large who purchased sportswear either as sports clothing or as casual or leisure clothing.
f) She characterised the mode of purchase as "a visual act made on the basis of self selection in either a retail environment, from a catalogue or online", the average consumer being "likely to pay at least a reasonable degree of attention to the selection of the goods at issue".
g) Correctly directing herself by reference to the usual authorities, she identified the distinctive features of mark 127 as the cinemascope style, the stylised font and the elongated "L", and identified the dominant element as being the word "Lonsdale" with the style of the letter "L" being a further distinctive element of the mark.
h) As to the Respondent's Mark she noted the cinemascope style, the elongated "L", the stylised font, the flag device and the word "England" (neither the flag nor the word "England" being distinctive in trademark terms), two other devices (the letters "NaS" and the tick device) which were distinctive but not dominant, and the word "London" which (whilst not distinctive in trademark terms) was the dominant element of the mark, with the elongated "L" adding to that distinctiveness.
i) She concluded that there was a modest degree of visual similarity between mark "127" and the Respondent's Mark and a low degree of aural similarity: and that the marks were conceptually distinct (the former being a surname and the latter a location).
j) She held that although she had been able to find that mark "127" had been used "I cannot be certain as to what degree that use will have enhanced the distinctiveness of the mark". But she continued to say that it was abundantly clear from the evidence that the word "Lonsdale" presented in the cinemascope style with the elongated "L" had a reputation and that this would have had a positive, though unquantified effect on the distinctive character of that Lonsdale mark as registered.
k) Having identified "the interdependency principle" (whereby a lesser degree of similarity between the respective trademarks may be offset by a greater degree of similarity between the respective goods), she held that, taking all relevant matters into account, there were significant visual, aural and conceptual differences in the respective marks which, given the nature of the purchasing process, outweighed any similarities. She therefore concluded that there was no likelihood of either direct or indirect confusion between the respective marks even where identical goods were involved.
a) Having found mark "127" to have a reputation, she reminded herself that it was nonetheless necessary to establish a link (i.e. a connection falling short of confusion) made by the relevant section of the public between mark "127" and the Respondent's Mark.
b) She directed herself by reference to the usual authorities that the existence of such a link must be assessed globally.
c) She held that, in order to be productive of advantage or detriment, "the link" established in the minds of the relevant members of the public had to have an effect on their economic behaviour, so that the reputation of mark "127" was transposed to the Respondent's Mark (with the result that marketing and selling of the Respondent's goods became easier).
d) On the evidence it was not exactly clear what advantage the Respondent would gain: and there was no evidence of any particular intention on his part nor was there any "added factor" that would support Lonsdale's claim.
e) So far as the possibility of dilution of Lonsdale's marks was concerned, the Hearing Officer saw no reason why the capacity of the registered Lonsdale marks to distinguish Lonsdale's goods would be diminished to any extent and certainly not such as to impact upon the economic behaviour of the relevant public.
a) The Hearing Officer erred in selecting only marks "554" and "127" for consideration. She ought to have considered mark "935" (the word "Lonsdale" with the elongated "L", the stylised font and the cinemascope style over the word "London"). Had she done so the results of the visual, aural and conceptual comparison would have meant that she could not fairly have concluded that there was no likelihood of either direct or indirect confusion in relation to identical goods.
b) In selecting only two of Lonsdale's Marks for the purposes of comparison, the Hearing Officer failed to give proper consideration to the fact that these two marks were part of a "family" of marks which had been the subject of extensive use.
c) The Hearing Officer was wrong to exclude from consideration mark "554" on the grounds that it had not been used "as and of itself" because there is no essential requirement of independent use. The mark had been used (albeit with additional material which did not alter its distinctive character).
d) Although the Hearing Officer correctly directed herself on the relevant law, she misapplied it to the facts which she had found. The word "London" could not be the dominant element of the Respondent's Mark if it was not distinctive in a trademark sense, so that the only remaining distinctive elements were the elongated "L" and the cinemascope styling which were features that the Hearing Officer had found enhanced "as a result of extensive use over time" the otherwise averagely distinctive word "Lonsdale". Given that the purchasing act had been found to be a visual act, these visual similarities should have outweighed any aural or conceptual distinctions.
e) Although the Hearing Officer appeared to accept that there was a link created in the minds of a consumer between Lonsdale's Marks and the Respondent's Mark she then concluded that there would be no unfair advantage gained by the Respondent, but gave no grounds for that conclusion. The proper inference (from the absence of any evidence adduced by the Respondent as to why he had adopted the elongated "L" and the cinemascope style, neither of which was common in the trade) was that there was an intention to "free ride" on Lonsdale's family of marks (an inference supported by the adoption of the "NaS" device and the tick device that bore a resemblance to the Nike "swoosh").
Failure to consider mark "935"
Failure to consider a "Family" of marks
"The concept of a "family" of trademarks simply allows the proprietor of such a family to demonstrate that a likelihood of confusion may be created by the possibility of association between the trademark applied for and the earlier marks forming part of his family… From that point of view, the existence of a family of marks may be regarded… as merely one of the factors to be taken into account in establishing whether there is a connection between the mark applied for and one of the earlier marks forming part of that family, insofar as that earlier mark enjoys a reputation".
So the question is whether the Hearing Officer correctly assessed the reputation of Lonsdale's marks when she apparently considered only one of those marks and not the entire "family".
"..abundantly clear from the evidence that the word "Lonsdale" presented in the cinemascope style with the elongated L has a reputation as it has been used extensively in a variety of marks in relation to the sale of a wide variety of clothing, footwear and headgear over many decades and this will have a positive, though unquantified effect on the distinctive character of the mark as registered".
Failure to consider mark "554"
"… may be a result both of the use, as part of a registered trademark, of a component thereof and of the use of a separate mark in conjunction with a registered trademark".
If the relevant consumers perceived the product, designated exclusively by the mark applied for, as originating from a given undertaking it did not matter in which of those two ways the mark had been used: see paragraph [30]. The use sufficed to enable the mark to be registered.
"… the conclusion reached by the court in [30] of the judgment in Nestlé must also be applied in respect of "genuine use" for the purpose of preserving the rights of the proprietor of a registered trademark…[T]he criterion of use, which continues to be fundamental, cannot be assessed in the light of different considerations according to whether the issue to be decided is whether use is capable of giving rise to rights relating to a mark or for ensuring that such rights are preserved. If it is possible to acquire trademark protection for a sign through a specific use made of the sign, that same form of use must also be capable of ensuring that such protection is preserved".
In the light of that clear statement of the law, in my judgment the Hearing Officer can be seen to have erred in principle in holding that Lonsdale could not rely on mark "554" because that mark had not been used "as and of itself".
"I found [mark "127"] to have at best, an average degree of inherent distinctive character and that the word Lonsdale, presented in the cinemascope style with the elongated L has been used extensively in relation to the sale of clothing over many decades which will have had an unquantified positive effect on the distinctive character of the mark as registered".
Given that her assessment of the evidence leading to those findings has not been challenged, and given that from that evidence it is not possible to identify any particular distinctiveness that attached to the mark "554" as a component part of the other marks (and that did not attach to the marks "127" and "935" as a whole), I do not consider that her error of principle in excluding mark "554" affected the actual outcome. The evidence did not support a different conclusion.
Misapplication of the relevant tests
Assessment of unfair advantage/detriment
a) That the goods under consideration were identical:
b) That there was near identity between the relevant sections of the public to which the goods were sold:
c) That the use of Lonsdale's marks in relation to the sale of a wide variety of clothing, footwear and headgear over many decades had a positive (albeit unquantified) effect on the distinctive character of (at least) mark "127":
d) That at least the elongated "L" and the cinemascope style were present in the Respondent's Mark:
e) That Lonsdale had a long-established business and had sold its goods very successfully over a number of years.
In the light of those considerations I consider that the Hearing Officer's reference in paragraph [54] of her decision to "those people who make a link between the respective marks" must be read as a recognition by her that a link existed between Lonsdale's marks and the Respondent's mark.
a) That she failed to appreciate that because Lonsdale was opposing the Respondent's Mark (which had yet to be used) it would not be possible to prove events which demonstrated actual detriment. All that could be done would be to draw appropriate inferences from such facts as were known at the date of the Decision and to assess the reasonably foreseeable consequences.
b) That Lonsdale led evidence and set out the inferences which it asked the Hearing Officer to draw; but the Respondent filed no evidence in answer. So the only question for the Hearing Officer was whether the inferences could properly be drawn from Lonsdale's evidence.
c) The Respondent advanced no positive case of "due cause" to use the Respondent's Mark. The Respondent did not make a case of innocent adoption or set out any circumstances which made the registration and use of the Respondent's Mark appropriate irrespective of its consequences for Lonsdale.
d) Where the Hearing Officer held (in paragraph [55] of the Decision) that "it was not clear exactly what advantage [the Respondent] would gain" she was failing to consider the plain inference that ought to have been drawn from the unexplained adoption of the elongated "L" and cinemascope styling which were distinctive of mark "127" (and also of mark "935" and "Lonsdale's family" of marks). It was self-evident that the Respondent saw an "advantage" in seeking to register the Respondent's Mark and it was a legitimate inference (not mere speculation) that that "advantage" derived from an association with the long established reputation of Lonsdale's Mark.
e) Where the Hearing Officer decided (in paragraph [55] of her Decision) that "there [was] no evidence of any intention of [the Respondent's] part" she erred in law. From the face of the Respondent's Mark itself, the inference could properly be drawn that the Respondent intended to appropriate for himself the reputation that attached to the marks of Lonsdale and others and thereby endeavoured to put his goods in the same league as those with established international reputations. Judicial notice should be taken (in the absence of any evidence) that the mark "NaS" is that used by the rap artist Nasir Bin Olu Dara Jones: and that the "swoosh" is a minor variation on the Nike symbol. The intention "to ride upon the coat tails" of other marks is clear.
f) Where the Hearing Officer decided (in paragraph [55] of the Decision) that she could "see no reason why the capacity of the earlier marks to distinguish [Lonsdale's] goods would be diminished to any extent, and certainly not one that would have any impact on the economic behaviour of the relevant public" she was failing to give any adequate reason for rejecting Lonsdale's case that (on the evidence before the Hearing Officer) there was no other undertaking that had used the elongated "L" or the cinemascope style (or that neither was in any sense common in the trade) and that these features had been "used extensively in various marks by Lonsdale, acquiring a reputation which had a positive effect on the distinctive character of Lonsdale's Marks". The Respondent's use of Lonsdale's famous mark would inevitably erode the distinctiveness of that mark and diminish the ability of the Lonsdale marks to distinguish the goods of Lonsdale from those of other traders. As it was expressed in Intel Corporation [2009] RPC 15 at paragraph 29:-
"… detriment to the distinctive character of the earlier mark, also referred to as "dilution", "whittling away" or "blurring" … is caused when that mark's ability to identify the goods or services for which it is registered and used as coming from the proprietor of that mark is weakened, since use of the later mark leads to dispersion of the identity and hold upon the public mind of the earlier mark".