Académique Documents
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PASSING OFF
Passing Off
• The Underlying Principle
• James LJ in Singer v Loog (1880) 18 Ch D 395 atE
p 412 "... no man is entitled to represent his
goods as being the goods of another man; and no
man is permitted to use any mark, sign or symbol,
device or other means, whereby, without making
a direct false representation himself to a
purchaser who purchases from him, he enables
such purchaser to tell a lie or to make a false
representation to somebody else who is the
ultimate customer."
Passing Off
• The Underlying Principle
• Reddaway v. Banham [1896] AC 199, HL Lord Macnaghten
at page 231, “(After quoting Lord Justice James in Singer
Manufacturing Company v. Loog) That being, as it appears
to me, a comprehensive statement of what the law is upon
the question of Trade Mark or trade designation, I am of
the opinion that there is no such thing as a monopoly, or a
property, in the nature of copyright, or in the nature of a
patent, in the use of any name. What ever name is used to
designate goods, anybody may use that name to designate
goods; always subject to this, that he must not, as I said,
make directly, or‘ through the median of another person, a
false representation that his goods are the goods of
another person. That I take to be the law."'
Passing Off
• Relation between registered TM and unregistered
TM
• S. 82(1) Trade Marks Act 1976 -"No person shall
be entitled to initiate any action to prevent or
recover damages for the infringement of an
unregistered mark."
• S. 82 (2) Trade marks Act 1976 - "Notwithstanding
subsection (1), nothing in this Act shall be
deemed to affect the right of action against any
person from passing off goods as those of
another person or the remedies thereof."
Passing Off
• The tort of deceit. The existing of a triangle.
The deceiver, the audience and the victim
• The victim has locus standi
Nature of Interest Protected
• Star Industrial Co Ltd v Yap Kwee Kor [1976] 2 FSR 256 at 269, per Lord
Diplock
• ‘Whatever doubts there may have previously been as to the legal
nature of courts of law or equity, these were laid to rest more than 66
years ago by the speech of Lord Parker A.G. Spalding & Bros. v. A. W.
Gamage Ltd.
• - A passing off action is a remedy for the invasion of a right of property
not in the mark, name or get-up improperly used, but in the business
or goodwill likely to be injured by the misrepresentation made by
passing-off one person's goods as the goods of another.
• - Goodwill as the subject of proprietary rights, is incapable of
subsisting by itself. It has no independent existence apart from the
business to which it is attached it is local in character and divisible; if
the business is carried on in several countries a separate goodwill
attaches to it in each. So when the business is abandoned in one
country in which it has acquired a goodwill the goodwill in that
country perishes with it although the business may continue to be
carried on in other countries."
Nature of Interest Protected
Goodwill of Business, etc protected
as a form of property
• Proof of reputation
• Use of: evidence of sales and turnover within the jurisdiction
• evidence of advertising and the extent of, nature and frequency of
these
• oral or affidavit evidence of persons who have bought or have dealt in
or know of the plaintiffs product
• the number of branches or outlets for the plaintiffs product or
business and their geographical spread
• the length of time over which the plaintiff‘ has traded and/or
advertised his products or business within the jurisdiction
• evidence of any exhibitions or show at which the piaintiff has
promoted his products.
• survey evidence.
Reputation
• Distinctiveness of the Plaintiffs name, mark or get-up
• In establishing his reputation, it is not enough for a plaintiff to
point to the duration and extent of his user of his name etc.;
he must also show that it has become distinctive of his goods
etc‘ in the sense that it distinguishes these from others of the
same type in the market.
• This does not mean that the goods etc. bearing the name etc.
must; specifically identify the plaintiff as the source of those
goods etc
• In many cases, the identity of the supplier will remain
unknown; what is important is that a significant number of
consumers in that market identify the plaintiffs goods etc. as
coming from; some one trade source.
Reputation
• Distinctiveness of the Plaintiffs name, mark or get-up
• - The Binningham Vinegar Brewery Co. Ltd v. Powell [I897] AC
710, (1897) RPC 720 I
• - Lord Herschel] at page 730 line I, " I think the fallacy of the
Appellants argument rests on this: that it is assumed that one
trader cannot be passing off his goods as the manufacture of
another unless it be shown that the persons purchasing the
goods know of the manufacturer by name, and have in their
mind when they purchase the goods that they are made by a
particular individual It seems to me that one man may quite
well pass off his goods as the goods of another if he passes
them off to people who will accept them as the manufacture of
another, though they do not know that other by name at all."
Reputation
• Distinctiveness of the Plaintiffs name, mark or get-up
• Morning Star Co-op Soc. Ltd v. Express Newspapers [1979] FSR 113
• The plaintiff had since l966 published a national morning daily‘ newspaper
under the title MORNING STAR of continental broadsheet size, It contains
mainly news column and reflecting communist or lefl-wing political views.
It has a daily circulation of 2 1,000 copies in the UK and was usually
obtainable ag news vendors only if ordered in advance.
• The defendant proposed to publish a new national daily morning
newspaper under the title DAILY STAR. It was to be a "popular" tabloid
designed to compete with the SUN and the DAILY MIRROR with an initial
circulation of one million copies. The front page was to consist mainly of
large headlines; the paper was to contain pictures of female models as
one of its principal features. The plaintiff sought an interlocutory
injunction on ground of passing off.
Reputation
• - Distinctiveness of the Plaintiffs name, mark or get-up
• - Morning Star C0-op Soc. Ltd v. Express Newspapers [1979]
FSR 113
• - Held: The word STAR was in the case of newspapers a
descriptive rather than a fancy or distinctive word.
• - Per Foster J, at page H7, after comparing the various
differences between the two newspapers, "These differences
lead me to answer the question whether the plaintiffs have
any real chance of succeeding at the trial in the negative, and
without any analysis such as I have just given if one puts the
two papers side by side I for myself would feel that the two
papers are so different in every way that only a moron in a
hurry would be misled."
Reputation
• Distinctiveness of the Plaintiffs name, mark or get-up
• McCain International Ltd v. Country Fair Foods Ltd [1981] RPC 69 In [975
the plaintiffs introduced into the UK market a novel product- chips which
could be cooked in the oven or baked under the grill and sold the product
under the name ‘McCain Oven Chips"
• In 1980 the defendants sought to launch their version of the product
under the names "Country Fair Oven Chips" and "Birds Eye Oven Chip".
The defendants appealed against the interlocutory injunction on the
ground that the name "Oven Chip" was descriptive of the product.
• In allowing the appeal it was held that as the plaintiffs had consistently
advertised and sold their product under the name “McCain oven chips"
this was strong evidence that the name “oven chip" was descriptive of the
product and the name "McCain" indicated the source of origin of the
product
Reputation
• Distinctiveness of the Plaintiffs name, mark or get-up
• McCain International Ltd v. Country Fair Foods Ltd [1981] RPC 69
• Further, while a descriptive term may acquire a secondary meaning, the
period in the present case was far too shor1 for such a secondary meaning
to have been acquired, particularly in view of the plaintiffs‘ constant
reference to their product as "McCain oven chip". That where a person
introduces a new product to the market, gives it a name descriptive of the
product and has a monopoly, whether legal or de facto, in that product he
cannot claim a monopoly in that name. He can only require that other
persons who make the same product distinguish their products by
appropriate means.
Reputation
• Secondary Meaning
• Reddaway v. Banham [[896] AC 199
• The plaintiffs brought an action to restrain the defendants from selling
machine belting as "Camel-hair Belting" so as to lead purchasers to
believe that the belting was of the plaintiffs manufacture, and from
passing off their goods as the plaintiffs‘. The plaintiffs alleged that "Camel-
hair Belting" meant exclusively their goods. The defendants alleged that
their belting was made substantially of camel hair and that they were
entitled to describe it as such.
• It was held by the House of Lords that when word which are descriptive of
an article has come to denote the goods of a particular manufacturer, he is
entitled to restrain others from using them so as to deceive purchasers,
notwithstanding that the words are a description of the goods. The
plaintiffs are entitled to an injunction.
Reputation
• Secondary Meaning - Reddaway v. Banham [1896] AC I99
• - Per Lord Herschel] at page 230, ''In the present case the jury have. found,
and in my opinion there was ample evidence to justify it, that the words
"Camel Hair" had in the trade acquired a secondary signification in
connection with belting; that they did not convey to persons dealing in
belting the idea that it was made of camel hair, but that it was belting
manufactured by the plaintiffs. They have: found that the effect of using
the words in the manner in which they were used by the defendants
would be to lead purchasers to believe that they were obtaining goods
manufactured by the plaintiffs, and thus both to deceive them and to
injure the plaintiffs. On authority as well as on principle, I think the
plaintiffs are, on these facts, entitled to relief."
Reputation
• Word becoming generic
• There is also a possibility that words, once distinctive
of the plaintiffs’ goods etc, may have become so
well-known as to have become a generic description
for all goods etc of that type. If this is s. then the
reverse process will have occurred. The word's
distinctiveness has become dissipated and it has
become purely descriptive.
• Linoleum Co. v. Naim (l878) 7 Ch D 834 Linoleum
descriptive or generic, no more distinctive
Reputation
• Mark Distinctive • Mark Descriptive
• Consumers regard the • Consumers regard
mark as indicating a the mark etc as
particular manufacturer describing the type
etc. of goods sold etc
• Regarded as a badge • Not protected
of business-therefore under the law of
reputation established passing off
• Descriptive mark
• Distinctive mark
acquiring a secondary
becoming generic
meaning
• Consumers regard the
• Consumers regard the
mark etc as
mark as indicating a
describing the type of
particular manufacturer
goods sold etc
etc
• Therefore not
• Therefore distinctive
distinctive anymore
• Protected under the law
• Not protected under
of passing off
the law of passing off
Reputation
• Cessation of Business — Residual Goodwill
• Ad-Lib Club Ltd v Granville [1972] RPC 673
• Pennycuick V-C. , “The basis of the present action, to quote the words of Lord
Parker of Waddington in A G Spalding Brothers v A W Gamage Ltde (I915) 113
LT I98, All ER Rep 147, is a proprietary right not so much in the name itself but
in the goodwill established through use of the name in connection with the
plaintiffs establishment l have no doubt that on the evidence the plaintiff
company had by the end of I965 established a substantial goodwill to which the
name Ad-Lib Club was attached and that name had become distinctive of the
plaintiff company's establishment. It follows beyond a doubt that if at the end
of I965 and other person had sought to use the name Ad-Lib in connection with
a club of this character that would have been a plain invasion of the plaintiff
company's goodwill. The question which is raised by the present action is
simply whether by the interval of some five years which has passed since the
plaintiff company's club was closed the plaintiff company must be regarded as
having ceased to have any goodwill to which this name could fairly be said to be
attached…
Reputation
• Cessation of Business — Residual Goodwill - Ad-Lib Club Ltd v. Granville
[1972] RFC 673
• ~ Pennycuick "lt seems to me clear on principle and on, authority that
where a trader ceases to carry on his business he may nonetheless retain
for at any rate some period of time the goodwill attached to that business.
Indeed it is obvious. He may wish to re-open the business or he may wish
to sell it. It further seems to me clear in principle and on authority that so
long as he’ does retain the goodwill in connection with his business he
must also be able to enforce his rights in respect of any name which is
attached to that goodwill. It must be a question of fact and degree at what
point in time a trader who has either temporarily or permanently closed
down his business should be treated as no" longer having any goodwill in
that business or in any name attached to it which he is entitled to have
protected by law.
• Local and concurrent reputation - expanding business –
• Evans v. Eradicure Ltd [1972] RPC 808
• The plaintiff is in the wood preservation business in Kent and
trades under the business name ERADICARE (before the
defendants started business). The defendants are a limited
company and incorporated under the name "ERADICURE
limited.They built up their business in the Welling and Bexleyl
Heath areas. The names of the business were chosen honestly
and independently. As their business grew, the plaintiff
expanded westwards and the defendants expanded
eastwards with the result that they clash. The plaintiff move
for interlocutory relief.
• Local and concurrent reputation - expanding business
• Evans v. Eradicure Ltd [1972] RPC 808
• Per Goff J,It is a novel problem where the plaintiff acquires a reputation in
a limited area and at the same time another person is acquiring a like
reputation in a nearby area. whether when they come to clash the plaintiff
in those circumstances has any remedy against that defendant at all. It
may be that he has, although logically it would seem, if the plaintiff is
right, that the defendant would then be restrained altogether, and yet that
would hardly appear to be a correct conclusion
• It may well be that the answer is in such circumstances that there is a
stalemate and, unless the parties can resolve the matter by agreement.
neither can obtain relief against the other and each may take the name he
has used and in respect of which he has acquired the reputation into the
alleged territory of the other. I do not say, of course, that he will not
proceed at the trail, but he has not in my view discharged the onus upon
him that he has to discharge in order to obtain interlocutory relief."
• Reputation in different field of activity
• Lego System v. Lego M. Lemelstrich Ltd {I983} FSR I55
• Per Falconer L at pages "As I have already stated… the plaintiff have extensively used
that trade mark LEGO in this country and have built up a high‘ reputation in it as
denoting their products - indeed I consider Mr Aldous is justified in his claim that Lego
has become a household word - of course, as indicating the plaintiffs‘ products."
• At pages 185-] 86, “My finding that the use by the defendants of the trade mark or
name LEGO on or In relation to their products would mislead a very substantial number
of persons into thinking that those products were the goods of the’ plaintiffs or of a
company or concern associated or connected wnh the plaintiffs…. establishes, in my
judgment the presence in the case of characteristics (1) (2) and (3) of the five necessary
characteristics of Lord Diplock‘s formulation. However, as l have indicated, the
defendants‘ case is essentially that the parties are in very different fields and the
respective goods of the plaintiffs (toys such as construction sets and building bricks) and
those of the pendants (irrigation equipment, particularly for gardens) are so far apart
that there could be no misrepresentation, actionable misrepresentation, or any damage
or likelihood of damage by the defendants‘ use of Lego on their goods.
Need for Trading / Commercial
Activity
• Day v. Brownrigg [1878] Ch D 294
• The plaintiffs‘ house had been called "Ashford
Lodge" for 60 years and the defendant's adjoining
house had been called "Ashford Villa" for 40 years.
For some unexplained reason, the defendant
changed the name to "Ashford Lodge". The plaintiffs
sued to restrain the defendant from continuing to
use the name of their house.
• Held the alleged act of the defendant was not a
violation of any legal right of the plaintiffs and and
there being no allegation of malicious intention
Passing Off — The Defendant’s Act