Case Law[2022] ZAWCHC 21South Africa
Golden Fried Chicken (Pty) Ltd v Soul Kitchen Restaurant (14634/2021) [2022] ZAWCHC 21; [2022] 4 All SA 768 (WCC); 2022 BIP 417 (WCC); [2022] HIPR 186 (WCC) (1 March 2022)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Golden Fried Chicken (Pty) Ltd v Soul Kitchen Restaurant (14634/2021) [2022] ZAWCHC 21; [2022] 4 All SA 768 (WCC); 2022 BIP 417 (WCC); [2022] HIPR 186 (WCC) (1 March 2022)
Golden Fried Chicken (Pty) Ltd v Soul Kitchen Restaurant (14634/2021) [2022] ZAWCHC 21; [2022] 4 All SA 768 (WCC); 2022 BIP 417 (WCC); [2022] HIPR 186 (WCC) (1 March 2022)
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sino date 1 March 2022
IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
REPORTABLE
CASE
NO: 14634/2021
In
the matter between:
GOLDEN
FRIED CHICKEN (PTY)
LTD
Applicant
and
SOUL
KITCHEN
RESTUARANT
Respondent
Bench:
P.A.L. Gamble, J
Heard:
11 & 15 November 2021
Delivered:
1 March 2022
This
judgment was handed down electronically by circulation to the
parties' representatives via email and release to SAFLII. The
date
and time for hand-down is deemed to be 10h00 on 1 March 2022.
JUDGMENT
GAMBLE,
J:
INTRODUCTION
1.
The applicant, as its name suggests, is a
manufacturer and purveyor of fried chicken of the golden-coloured
variety. It trades under
the name “Chicken Licken” and
claims to be well-known in the market place. As such, the applicant
is the owner of all
intellectual property rights created and used in
respect of the Chicken Licken business and has registered various
marks under
the Trade Marks Act, 194 of 1993 (“the Act”).
2.
The respondent is the revised trading name
of a small bistro-type restaurant situated within the jurisdiction of
this court at Main
Street, Plettenberg Bay (“the restaurant”).
As will appear later, the restaurant is owned by a company with share
capital
under the directorship of a certain Mr. George Alexander
Frost, evidently a resident of Plettenberg Bay. During July 2021 the
restaurant
traded as “East Coast Soul Kitchen”.
3.
During July 2021 it came to the attention
of the applicant’s ever-vigilant attorney, Mr. Ronald Wheeldon
of Johannesburg,
that by trading as “East Coast Soul Kitchen”,
the restaurant had infringed certain of the applicant’s trade
marks.
As the long-time attorney for the applicant, and on the
instructions of its director Ms. Chantal Sombonos-van Tonder, Mr.
Wheeldon
wrote to the restaurant on 21 July 2021, informing it of the
existence of the applicant’s trade marks and seeking an
undertaking
that it would desist from using same. The restaurant was
informed that should it not so desist, the applicant would approach
court
for appropriate orders. I shall deal with the contents of this
letter and the replies and follow-ups thereto in more detail below.
4.
On 27 July 2021 the restaurant’s
attorney, Mr. Hardy Mills of HDRS Attorneys in Plettenberg Bay,
replied to Mr. Wheeldon’s
letter and stated that his client
would not desist as requested. Serious accusations were made of
malicious conduct and vexatious
litigation on the part of the
applicant and a threat was made that the restaurant would seek a
punitive costs order against it
in the event that litigation ensued.
5.
On 28 July 2021 Mr. Wheeldon replied to Mr.
Mills’ letter, giving a more detailed explanation of the facts
and highlighting
certain of the legal principles involved. The
restaurant was invited to reconsider its position in light thereof.
6.
On 6 August 2021 Mr. Mills replied to Mr.
Wheeldon and called for a round-table meeting between the parties
sans
lawyers
in an endeavour to reach a without prejudice settlement of the
dispute. No such meeting ensued. Instead, on Friday 27 August
2021
the applicant launched an urgent application in this court for a
hearing the following Friday, 3 September 2021, for extensive
interdictory relief against the restaurant under the Act. That
application was formally served on the restaurant’s manager
at
its premises at 13h10 on Tuesday 31 August 2021 and a notice of
opposition was filed swiftly by Mr. Mills’ Cape Town
correspondents just 3 minutes later.
7.
When the matter came before Fortuin J on 3
September 2021, the parties took an order by agreement postponing the
application for
hearing on the semi-urgent roll on 11 November 2021,
with a timetable fixed for the filing of further papers. In the
interim there
was some procedural sparring and the filing of further
papers to which reference will be made later.
8.
The application was heard virtually by this
Court on Thursday 11 November 2021. At that hearing Mr. M.C. Seale SC
appeared on behalf
of the applicant and Mr. Mills on behalf of the
restaurant. During the hearing Mr. Mills became indisposed and the
matter stood
down until Monday 15 November 2021, when the restaurant
was represented by Mr. P.P Ferreira of the Pretoria Bar on
instructions
of Mr. Mills, then of Boqwana Burns Attorneys,
Plettenberg Bay. The Court is indebted to Mr. Seale SC for his
comprehensive heads
of argument and bundle of authorities which have
assisted in the preparation of this judgment. The Court is indebted,
too, to Mr.
Ferreira for stepping into the breach at short notice and
for his helpful analysis of the relevant authorities during argument.
9.
The facts, while detailed, are not
controversial and can be adequately addressed by reciting the
correspondence between the attorneys
to which I have already alluded.
The letters also provided the legal basis for the applicant’s
case.
MR WHEELDON’S
LETTER OF 21
ST
JULY 2021
10.
The relevant part of this letter reads as
follows –
“
SOUTH
AFRICA - Infringement of trade marks 2014/00044 SOUL KITCHEN in class
43, 2001/12904-5 SOUL in classes 29 and 30 and 2001/12909
SOUL in
class 43 all in the name Golden Fried Chicken (Pty) Ltd by East Coast
Kitchen.
We act on behalf of
Golden Fried Chicken (Pty) Ltd (“our client”)
It has come to the
attention of our client that you are operating what appears to be a
restaurant under the trading name
EAST COAST SOUL KITCHEN
and
that you using (sic) the trade mark
SOUL KITCHEN
on what
appears to be your official Facebook page which is accessible here
https//: www.facebook.com/EastCoastSOULkitchen. Our client
further
notes your use of the trade mark
SOUL
to describe your pizza
and burger offerings on your menu.
Our client is the
proprietor of trade mark registrations 2014/00044
SOUL KITCHEN
in class 43, 2001/12904-5
SOUL
in classes 29 and 30 and
2001/12909
SOUL
in class 43. It is our client’s belief
that there can be little doubt that your use of the trade mark
SOUL
KITCHEN
is identical to our clients (sic) registered trade mark
SOUL KITCHEN.
This is because by using “
SOUL KITCHEN
”
our clients registered mark is used for goods or services which do
not emanate from our client, and which are used without
its
authorization.
It is also our clients
belief that your use of the trade mark
EAST COAST SOUL KITCHEN
is
confusingly and deceptively similar to our clients registered trade
mark
SOUL KITCHEN
. The use of the words
EAST COAST
act
only as a descriptor of a location (the East Coast) and is (sic)
likely to cause confusion as members of the public may be
under the
misapprehension that your goods and services are in some way
connected to our client.
It is further our clients
belief that by using the trade marks
SOUL PIZZA
and
SOUL
SMASH BURGER
our clients registered trade mark
SOUL
is
used on goods which do not emanate from our client and which are sold
without its authorization. The mark
SOUL
as used is
distinctive and identical to our clients registered trade mark
SOUL
.
Section 34
(1) (a), (b)
and (c) of the
Trade Marks Act, 1993
provide that:
“
The
rights acquired by registration of a trade mark shall be infringed
by-
a) the unauthorized
use in the course of trade in relation to goods or services in
respect of which the trade mark is registered,
of an identical mark
or of a mark so nearly resembling it as to be likely to deceive or
cause confusion;
b) the unauthorized
use of a mark which is identical or similar to the trade mark
registered, in the course of trade in relation
to goods or services
which are so similar to the goods or services in respect of which the
trade mark is registered, that in such
use there exists the
likelihood of deception or confusion;
c) the unauthorized
use in the course of trade in relation to any goods or services of a
mark which is identical or similar to a
trade mark registered, if
such trade mark is well known in the Republic and the use of the said
mark would be likely to take unfair
advantage of, or be detrimental
to, the distinctive character or the repute of the registered trade
mark, notwithstanding the absence
of confusion or deception;”
Where infringement is
proven, the proprietor of a trade mark is entitled in terms of
Section 34
(3) to claim:
“
(a)
an interdict;
(b) an order for the
removal of the infringing mark from all material and, where the
infringing mark is inseparable or incapable
of being removed from the
material, an order that all such material be delivered to the
proprietor;
(c) damages, including
those arising from acts performed after advertisement of the
acceptance of an application for registration
which, if performed
after registration would amount to infringement of the rights
acquired by registration;
(d)
in lieu of damages, at the option of the proprietor, a reasonable
royalty which would have been payable by a licensee for the
use of
the trademark concerned, including any use which took place after
advertisement of the acceptance of an application for
registration
and which, if taking place after registration, would amount to
infringement of the rights acquired by registration.
”
Our client has instructed
us to call upon you, as we hereby do, immediately to desist from use
of the trade marks
SOUL
,
SOUL KITCHEN
and
EAST COAST
SOUL KITCHEN
.
We will need you to
undertake not to recommence use. If you will stop promptly and give
the undertaking, our client will, entirely
without prejudice to its
formal rights, not take formal action. Obviously, if you will not
stop promptly, our client reserves its
rights to take whatever steps
it deems necessary - including High Court proceedings.
Will you co-operate?
Please let us hear from you by close of business day Tuesday, 27
th
July 2021. Silence will be interpreted as an unwillingness to
co-operate. Kindly be guided accordingly.”
MR MILLS’ REPLY
ON 27
TH
JULY 2021
11.
The response to the applicant’s first
communication was as follows –
“
1.
We refer to your letter dated 21 July 2020 and confirm that we act on
behalf of the above mentioned client on whose instructions
we write
this letter.
2.
We do not intend to, in this letter, respond to each and every
allegation contained in your correspondence under reply. Our client
reserves the right to do so at the appropriate time, and in the
appropriate forum. As such, a failure to respond to a specific
allegation and/or contention should not be construed to be an
admission of the correctness thereof.
3.
We have taken note of the various contentions advanced in your letter
under reply. Without limiting our client’s right
to respond
thereto in future and if necessary, we wish to place the following on
record:
3.1 It is plain that the
impugned statements were made without first taking any reasonable
steps to research the true facts, including
the nature of our
client’s business and the services delivered.
3.2 Our client is not
exploiting any trade mark or damaging any brand, nor possibly or
potentially causing any loss of sales caused
by confusion.
3.3 The use of the word
“soul” is not taking any unfair advantage of or is it
anyway detrimental to the distinctive
character and repute of your
client’s trade mark.
3.4 To quote justice D.
Pillay J (sic) in his (sic) judgment delivered in
Golden Fried
Chicken (Pty) Ltd v Oh My Soul (Pty) Ltd t/a Oh My Soul Café
(1739/2019 [2019] ZAKZDHC 30 (25 March 2019): “
and if,
indeed, the applicant’s ‘SOUL’ brand has the
remarkable capacity to communicate to its consumers ‘African
cool, a pride in an Afrocentric heritage typified by success against
adversity, a rising above racial prejudice and stereotypes
where
‘blackness’is not a shortcoming but a positive advantage’
then in the spirit of ubuntu, which is the South
African conception
of humanity and Africanism, the applicant should, in the national
interest, encourage rather than restrain the
use of ‘SOUL’
to mend our social fractures and fissures. ‘Success against
adversity’ also means allowing
small businesses to survive
onslaughts by large, economically powerful corporates like the
applicant.’
3.5 Moreover, we wish to
quote and echo the words of justice S. Yacoob in
Golden Fried
Chicken (Pty) Ltd v Vlachos and Another
(4923/2018) [2020]
ZAGPJHC 284 (20 October 2020): “
I agree with Souvlaki that
Golden cannot contend that only it has the right to exploit the
culture and meanings associated with
the words “soul” and
“soul food”. This would be impractical and chilling not
only on businesses wishing
to use the words but also on the manner in
which the associated culture may be disseminated and grown in the
marked (sic). Certainly,
for example, Golden cannot claim to have
sole benefit of the popularity of American soul music, or of American
soul food, particularly
when people’s exposure to such things
has been exponentially increased as a result of many factors,
including the expansion
of Internet access.”
4. In the circumstances,
your conduct is indefensible and wholly unreasonable. The letter
concerning our client and the demands
made are malicious and
opportunistic.
5. Regard had to the
circumstances, a punitive costs order will be sought against your
client and against your firm
de bonis propriis,
jointly and
severally in the event that we are forced to defend vicious and
vexatious litigation.
6. Our client’s
rights remain reserved.”
MR WHEELDON’S
LETTER OF 28
TH
JULY 2021
12.
The following day, the applicant’s
attorney penned a detailed reply to Mr. Mills to the following
effect.
“
Re:
South Africa: -
1. Infringement of
trademark registrations 2014/00042-4 SOUL KITCHEN in classes 29, 30
and 43;
2. Infringement of
trade mark registrations numbers 2001/12904-5 and -9 SOUL in classes
29, 30 and 43 all in the name of Golden
Fried Chicken (Pty) Ltd by
someone trading as Soul Kitchen.
We acknowledge receipt of
your letter of the 27
th
inst. At the outset we must point
out that you have failed to identify the client for whom you act. We
are aware that it uses the
trading style (or trade mark) Soul
Kitchen, but - as no doubt you are fully aware - that does not
identify the person using that
style. Please identify the person for
whom you act.
Our letter of demand
simply identifies in general terms the complaint that our client has
about unlawful uses of its trade marks
as trade marks by your client.
It quotes the statutory remedies available to a trade mark proprietor
where its statutory rights
are infringed as defined in the
Trade
Marks Act, 1993
.
Given the vehemence of
your reply (which appears designed to embroil your client in
litigation) we are directed to explain our client’s
position in
more detail and point out where we believe your reading of the two
cases you cited may have led you into error. We
have started this
effort by dividing our heading so as to make it clear that we are
alleging two quite distinct infringements on
our client’s
behalf.
The first is clear cut:
Our client is the
registered owner of the trade mark registration 2014/00044
SOUL
KITCHEN
in class 43 for the service of providing food or drink
which includes,
inter alia
, restaurants. A copy of the
register page is attached for convenience of reference. You have
yourselves identified your client
by the trade mark
SOUL KITCHEN
,
so it seems that there is no dispute that your client is trading
under our client’s registered trade mark and is offering
the
service of providing food or drink. This seems clear enough from the
Facebook page at
https://www.facebook.com/EastCoastSOULkitchen/
.
On that page, the following appears:
“
We
invite you to celebrate this vibrant melting pot of people, cultures,
sights, music, and, of course, food and drink with us at
Soul kitchen
[sic] where…”
We have also found online
your client’s menu. The particulars of that we will deal with
later in this letter. For the moment
let us deal with item #3.1 in
your letter under reply:
“
It
is plain that the impugned statements were made without first taking
any reasonable steps to research the true facts, including
the nature
of our client’s business and the services delivered.
”
On the contrary, we have
established that your client is operating a restaurant, or some
similar service, involved in the supply
of food and drink to the
consuming public. It seems to us that there can be no doubt as to the
nature of your client’s business.
If it is not selling food and
drink to consumers, we would be pleased to know what it actually
does.
Where there is use of a
trade mark identical to a registered mark for the goods or services
(here we are discussing services) actually
covered by the registered
trade mark, it is trite that nothing further is required to establish
infringement of the registered
trade mark. In this regard you may
wish to see
Commercial Auto Glass (Pty) Ltd Bayerische Motoren
Werke AG
[2007] SCA 96 RSA at [3]. The appellant in that case was
held to be using the identical mark to
BMW
through use of,
inter alia
, “BMW E30 3 Series 83-92.”
It follows that your
client’s use of
SOUL KITCHEN
as a trade mark is,
absolutely, an infringement of 2014/00044
SOUL KITCHEN
. Our
client requires that this infringement stop, and that it stops
promptly. In order to obtain a quick result, avoid putting
your
client (and ours) to the cost of High Court litigation and to avoid
burdening the court system with a matter that is trite,
the letter of
demand calls upon your client to desist and offers it the opportunity
to also avoid the claims for financial remedies
which the statute
gives our client.
You characterize this as
conduct which is ‘
indefensible and wholly unreasonable’.
With all due respect, we have to disagree. Your client now has a
clear choice - it can desist from the use of our client’s
registered trade mark
SOUL KITCHEN
on a timetable to be
agreed, or it can refuse to do so. If it refuses, it will be up to a
court to decide.
The second issue of
infringement concerns our client’s registered trade mark
SOUL
.
This is less clear cut
because the menu uses are arguably not of the identical mark, if the
judgments you cited are correct (we
respectfully disagree with Judge
Pillay and Judge Yacoob and the latter judgment is under appeal to
the SCA at present). We believe
that the use of the registered trade
mark
SOUL
in conjunction with a descriptor like ‘pizza’
or ‘burger’ or ‘salad’ is the use of a trade
mark
identical to the registered trade mark as the designator of
origin for the pizza, salad, or other dish.
The two judgments, we
must remind you, were not concerned with infringement use of
identical marks, where confusion or deception
are presumed, but marks
which the court in both instances regarded as non-identical. Judge
Pillay found that
OH MY SOUL
with the device of a cow’s
head was not confusingly or deceptively similar to
BLESS MY SOUL
or
SOUL
alone. Her interesting comments concerning ubuntu
were
obiter
and are unlikely to assist your client. Judge
Yacoob found that
SOUL
and
SOUL FOOD
were not identical
to
SOUL SOUVLAKI
and decided that it also was not confusingly
similar to either, although she did find that our client’s
marks are well-known.
She also refused to remove our client’s
trade marks from the register. Neither her refusal to remove our
client’s
SOUL
and
SOUL FOOD
trade marks from the
register, nor her finding that they are well-known within the meaning
of the
Trade Marks Act, 1993
is under appeal.
In any event each case
turns on its own facts and the facts here are different. Your client
has had our client’s registered
trade mark
SOUL
made
into a logo and is using it for a family of trade marks “# soul
family”.
We are satisfied that
this, too, is infringement. We hardly think that it is improper for
attorneys to warn of enforcement of registered
statutory rights. So,
while we note your intemperate language and your apparent confidence
in your client’s case, we must
once more state that our
client’s registered rights are infringed and add that we hold
instructions to proceed with the utmost
urgency to enforce them.
Given our more detailed
explanation of the issues and of the law, we trust that you are now
in a better position to counsel your
client. It is afforded this
final opportunity to avoid litigation by desisting from its
infringement. Due to the urgency of the
matter, we must ask for its
final decision, within 48 hours please. Naturally, this letter will
be placed on record with the court.
All of our client’s
rights are fully reserved, including its right to claim damages or a
reasonable royalty.”
MR MILLS’ EMAIL
OF 6 AUGUST 2021
13.
Just over a week later, Mr. Mills sent the
following email to his opposite number.
“
We
acknowledge receipt of your letter dated 28 July 2021 and note the
contents thereof.
Further to our letter
dated 27 July 2021, the caveats of which are still applicable, we
confirm that we act on behalf of East Coast
Soul Kitchen.
Writer hereof is
disinclined to litigate by way of correspondence, but on instructions
of my abovementioned client, I wish to place
the following on record:
-
1. Client is not a fast
food restaurant.
2. Client trades as ‘East
Coast Soul Kitchen’ and all signage bears this name.
3. The business is
situated more than 100 km from the nearest Chicken Licken outlet in
the Western Cape.
4. The logo bears no
resemblance to Chicken Licken and could never, by any reasonable
person, be confused or misled thereby.
5. Client is not a
competitor in the market to your client.
6. Client is not part of
any chain, brand-named (sic) or franchise.
7. Client poses no threat
to your client’s business or reputation.
8. In the circumstances,
your client’s demand is unreasonable and without justification.
East Coast Soul Kitchen
is more than just a business to client, it is a project of passion; a
dedication to the essential human
virtues of compassion, love,
conscientiousness, humanity and humility.
Our client hereby wish
(sic) to invite your client to round table discussions with the view
of reaching an amicable solution between
the parties,
without
legal representatives present, and on a ‘without prejudice’
basis.
We trust you find the
above in order and look forward to hearing from you.”
THE ENSUING LITIGATION
14.
As I have said, there was no round table
discussion and the applicant set matters in motion by lodging its
application for urgent
relief on Friday 27 August 2021. Just what the
degree of urgency was which necessitated a hearing within a week and
on 4 working
days’ notice to the restaurant escapes me but, in
the result, sanity prevailed and the matter was afforded a place on
the
semi-urgent some 2 months later.
15.
The relief sought in the notice of motion,
besides the customary prayers for urgency, costs and alternative
relief, is as follows.
“
2.
That the Respondent be interdicted and restrained from infringing the
applicant’s
trade mark registration nos.:
2.1
1994/12139
SOULSLAW
in class 29;
2.2
1994/12137
SOUL
in class 29;
2.3
1994/12138
SOUL
in class 30;
2.4
1996/10062
SOUL
in class 29;
2.5
2001/12909
SOUL
in class 43;
2.6
2014/00044
SOUL KITCHEN
in class 43;
2.7
2019/04573
SOUL BOWL
in class 29.
(‘the applicant’s
trade mark registrations’)
in terms of
section 34(1)
(a), and in the alternative in terms of Section 34 (1) (b), of the
Trade Marks Act, No. 194 of 1993 (“the Act”), by
making
unauthorized use, in the course of trade, of the mark
SOUL
and/or
SOUL KITCHEN
, or any mark identical, or confusingly and/or
deceptively similar, to the applicant’s trade mark
registrations.
3.
That, in the alternative, paragraph 2 above shall operate as an
interim interdict
pending the outcome of such procedures, including
any appeals arising therefrom, as the Court may prescribe.
4.
Directing an inquiry into the damages suffered by the Applicant,
alternatively
the reasonable royalty payable to the applicant by the
Respondent, arising out of the infringement of the Applicant’s
trade
mark registration be held.
5.
Directing that, if the parties cannot agree upon the procedure to be
adopted
for the aforegoing inquiry, any party may approach the Court
to prescribe such procedures for conducting such an enquiry.
6.
That the Respondent be directed to remove all material, including
letterheads,
business cards, signage and printed material, in its
possession or under its control, which makes or contains any
reference to
the mark
SOUL
or
SOUL KITCHEN
, and any
other confusingly and/or deceptively similar marks; alternatively,
and in the event of such removal not being capable
to deliver-up all
matter to the Applicant’s attorneys, Ron Wheeldon Attorneys,
for destruction.”
16.
The founding affidavit in the application
was made by Mr. Wheeldon personally at the direction of Ms.
Sombonos-van Tonder, who was
overseas at that time: on 7 October 2021
she deposed to an affidavit confirming the accuracy of the founding
affidavit. I shall
discuss the relevant contents of the founding
affidavit in due course.
17.
An advance copy of the application was sent
by email to the offices of Mr. Mills’ Cape Town correspondents
during the course
of the afternoon of Sunday 29 August 2021 and
immediately forwarded on to Mr. Mills, hence the extraordinary
alacrity in the filing
of the notice of intention to oppose on the
following Tuesday.
18.
The application was accompanied by a notice
issued in terms of Rule 14(5)(a) in which the restaurant was called
upon to provide
the name and address of its proprietor within 10
days. Seemingly by way of riposte, the restaurant filed a Rule 7(1)
notice together
with its notice of opposition calling on the
applicant to file (i) a copy of a power of attorney held by Mr.
Wheeldon and (ii)
any resolution by its directors authorizing Mr.
Wheeldon and his firm to act on its behalf in this matter. This
formality was duly
attended to by Mr. Wheeldon on 1 September 2021
and there is no issue between the parties in this regard.
19.
As far as the correct identity of the
proprietor of the restaurant is concerned, it filed a reply to the
Rule 14(5)(a) notice on
29 October 2020, attaching the relevant
extract from the Companies and Intellectual Property Commission
(“CIPC”) which
shows that the restaurant is owned by
Actualiz Business Consulting (Pty) Ltd with registration number
2018/292389/07 (“Actualiz
Consulting”) with its
registered office at a residential address in Plettenberg Bay. A
certificate issued by the CIPC also
reflects that, as of February
2020, the company had four directors, one of whom was Mr. Frost.
20.
In the answering affidavit dated 29 October
2021, Mr. Frost confirms that the restaurant had previously traded as
“East Coast
Soul Kitchen” but that it had changed its
trading name to “Sol Kitchen”. However, he states that he
is a director
of Actualiz Holdings (Pty) Ltd, reg. no. 2021/514314/07
(“Actualiz Holdings”) rather than Actualiz Consulting.
This
discrepancy was seized upon by Ms. Sombonos-van Tonder in the
replying affidavit, pointing out that the restaurant appeared to be
owned by two distinct corporate entities.
21.
In an affidavit filed shortly before the
hearing (dubbed a “Status
Quo
Affidavit”), Mr. Frost sought to
explain the transition of the restaurant’s trading name from
“East Coast Soul
Kitchen” to “Sol Kitchen”
through the attachment of various annexures bearing visual images
such as a menu, a
wine list and advertising bunting mounted outside
the restaurant. Regrettably that affidavit did not clarify the
conundrum as to
who the proprietor of the restaurant was but it was
common cause (and subject to what is set forth hereunder) that by the
time
of the hearing of the matter, the restaurant traded as “Sol
Kitchen”.
THE FOUNDING AFFIDAVIT
22.
Mr. Wheeldon tells the Court in the
founding affidavit that he has represented the applicant in the
administration of its trade
mark portfolio since 2004: he thus has
extensive knowledge of its operations. Yet, the affidavit is
extremely scant on detail and
all that Mr. Wheeldon elects to tell
the Court is that the applicant is the owner of all the intellectual
property rights in respect
of a business known as “Chicken
Licken” which was started by Ms. Sombonos-van Tonder’s
father in 1981 and has
since “grown to be a very substantial
business”.
23.
Just how and where the applicant operates
Chicken Licken and what its product range and menu items comprise,
the Court does not
know. All that can be vaguely concluded is from
what Mr. Mills says in the email of 6 August 2021 – that
Chicken Licken might
be a fast food restaurant and that it has an
outlet in the Western Cape which is more than 100km distant from
Plettenberg Bay.
This Court has no inkling of the fare on offer at
any of the applicant’s outlets.
24.
However,
after perusing the applicant’s trade mark information sheets in
respect of the registered trade marks sought to be
protected, the
Court knows that, generally speaking, the marks are registered in
respect of services rendered for the provision
of food and drink at
restaurants, cafes, fast food outlets and the like. In any event, Mr.
Wheeldon claims on behalf of the applicant
that there have been two
distinct trade mark infringements by the restaurant, the first
whereof is based on the provisions of s34(1)(a)
of the Act.
[1]
THE FIRST ALLEGED
INFRINGEMENT
25.
The applicant’s attorney explains
that the applicant registered the mark
SOUL
in class 43 which affords it protection in relation to the provision
of “
Goods/services
”
at “
Restaurants, snack bars,
cafes, fast food outlets, canteens and roadhouses; services connected
with the sale and distribution of
foodstuffs and refreshments;
catering.
” Further, says Mr.
Wheeldon, the mark
SOUL KITCHEN
was
also registered in class 43 in respect of “
Goods/services
”
for the provision of “
Food and
drink; temporary accommodation.”
26.
Mr.
Wheeldon claims that, where the mark is registered in plain block
capitals (as in the instant case and in black), by virtue
of the
provisions of s32(2) of the Act
[2]
,
use of the mark in any differing colour constitutes an infringement
thereof. This allegation is not substantially challenged by
Mr. Frost
in the answering affidavit.
27.
Mr. Wheeldon reproduces the restaurant’s
initial logo as follows.
(See Picture in PDF)
28.
Mr. Wheeldon offers the following comments
regarding the use by the restaurant of the logo and the words “Soul
Kitchen”
and “Soul”, which for the sake of
convenience I will recite in detail.
“
[19]
It will be seen that the emphasis is placed on the word SOUL
illustrated in red with a stylized letter “S” and
that
the word KITCHEN is also quite prominent in a somewhat unusual
script. EAST COAST also appears but seems intended to be read
more as
a location than as a distinguishing feature, given especially that
Plettenberg Bay could be described as being on the East
Coast of
South Africa. It seems to me that the trade mark use is either of
SOUL
or
of
SOUL
KITCHEN
,
or both. The word
SOUL
does
not describe the restaurant, but it seems intended by the Respondent
to replace the previous name of the restaurant or a restaurant
at the
same location known as
LM
.
[3]
It is used to identify the restaurant and is part of how the
Respondent evidently wants the public to remember it, as a restaurant
called
SOUL
,
or
SOUL
KITCHEN
.
[20] This comes into
sharper focus if reference is had to the description used by the
Respondent on its [Facebook] page. This reads
as follows:
“
We
invite you to celebrate this vibrant melting pot of people, cultures,
sights, music and, of course, food and drink with us at
Soul kitchen
where we do everything with love, dedication, passion, attention to
detail and, above all, Soul”…
22. The following
advertisement appearing on the Facebook page uses the mark “
SOUL
KITCHEN
” in an italicized form as the sole identifier on
the source. The remaining wording in the advertisement is generic and
descriptive
and could relate to any number of different restaurants.
To find this restaurant a consumer would go to the address which is
given
but would be looking for and expecting to see an establishment
called
SOUL KITCHEN
as the identity of the advertiser.
The advertisement is reproduced below….
(See Picture in PDF)
[24] The email address
used [by the restaurant] is soulkitchenplett@gmail.com , which
further supports that the main identifier
used by the Respondent is
SOUL KITCHEN
, although there is also the use of
EAST COAST
SOUL KITCHEN
. It appears that the use started in the latter part
of May, 2021, but Applicant only became aware of it in the latter
part of July,
2021.”
29.
After referencing the aforementioned
exchange of correspondence with Mr. Mills, Mr. Wheeldon asserts that
the restaurant has repeatedly
failed to recognize the applicant’s
registered rights and, asserting that there has been a clear
infringement of such rights,
asks the Court to grant the applicant a
final interdict in respect of the use of the marks
SOUL
and
SOUL
KITCHEN
in accordance with prayer 2 of
the notice of motion.
THE SECOND ALLEGED
INFRINGEMENT
30.
The second ground for complaint on the part
of the applicant relates to the alleged use by the restaurant of the
registered mark
SOUL
in conjunction with various descriptive words regarding items on
offer on its menu. Mr. Wheeldon attaches to the founding affidavit
(as annexure FA 9) a copy of the restaurant’s menu and claims
that it includes the following items:
[30.1.]
GOOD FOR THE SOUL BEEF TRINCHADO;
[30.2.]
SOUL SOUP;
[30.3.]
SOUL SMASH BURGERS;
[30.4.]
CHEF’S SOUL VENISON; and
[30.5.]
SOUL SIDE SALAD.
31.
Having carefully perused the said annexure,
I must confess that I am unable to detect any of the alleged items
featuring on the
menu as stand-alone dishes. The only reference which
remotely accords with the ground of complaint is under the heading
“
Main Courses
”
where “
Mama’s Bobotie
”
is described as follows:
“
Classic
Cape Malay sweet ‘n sour mince curry, savoury egg topping,
served with yellow rice, sambals and
Soul
Salad
” (Emphasis added)
But even then, the
reference to a “Soul Salad” does not fall foul of the
applicant’s registered trade mark “
SOUL SIDE SALAD
”
32.
There is a category of dishes classified on
the menu in question as “
Side
Dishes
” which includes a side
salad comprising -
“
Mixed
greens, roasted beetroot, feta, pine nuts and green beans”.
The salad on offer is
self-evidently bereft of any
SOUL
.
33.
Under the heading “
Starters
and Light Meals
” there is a
reference to a Portuguese favourite called “
Trinchado
”,
and described as follows:
“
Tender
cubes of Sirloin beef OR Chicken breast, marinated in red wine,
garlic and chilli, grilled and finished with gremolata.”
The words “GOOD FOR
THE SOUL BEEF” are not employed at all on the menu to describe
the restaurant’s trinchado
dish, much as the applicant would
wish it did.
34.
The menu does include a category of food
classified as so-called “
Smash
Burgers
” but once again the item
does not include any reference to the registered trade mark “
SOUL
SMASH BURGER
”. Lastly, the menu
does not offer any soup dishes or venison to clients, hence no “
SOUL
SOUP”
or “
CHEF’S
SOUL VENISON”
is offered for
consumption by patrons at the restaurant. In the circumstances, it is
difficult to understand on what facts the
complaint regarding the
alleged second infringement is founded.
EVIDENCE ADDUCED IN
SUPPORT OF THE ALLEGED INFRINGEMENTS
35.
In
dealing with the first ground of infringement, Mr. Wheeldon
incorporates by reference in Annexure FA 4, extracts from the
restaurant’s
Facebook page. These total some 19 A4 pages and
contain a vast array of references to food, drink, entertainment and
the like on
offer at an establishment that was then known as “East
Coast Soul Kitchen”. In accordance with the practice that a
deponent should refer to the passages expressly relied upon in an
annexure and that it is not for the Court to trawl through it
and
make assumptions on the possible relevance thereof
[4]
,
Mr. Wheeldon does so in the manner alluded above: to highlight the
references therein to the alleged unlawful use of the
SOUL
KITCHEN
mark.
36.
Notwithstanding the fact that one of the
menu’s reproduced on the said Facebook page under an entry for
28 June 2021 (Record
p 49) does indeed refer to (i) the description
of the bobotie set out above; (ii) a category of food called “Soul
Smash Burgers”
and (iii) a “Side Dish” called a
“Soul Side Salad” (comprising the same ingredients as the
“Side
Salad” already referred to), these references are
not relied upon in the case for the second infringement. The failure
by
the applicant to rely thereon suggests that, notwithstanding the
initial failure to remedy its original name, the restaurant had
at
least tinkered with its menu somewhat to remove a large part of the
applicant’s cause for complaint.
37.
On this score, the answering affidavit by
Mr. Frost of 29 October 2021 asserts that the name of the restaurant
was changed to “Sol
Kitchen” to avoid “unnecessary
and costly litigation”. Although he does not say exactly when
that change took
place, it is referred to in the context of the
invitation to attend a round table conference and so one would be
entitled to infer
that it was intended to allege that the change
occurred sometime in August – September 2021. Further, in the
so-called
status quo
affidavit
there are photographs of the restaurant’s external signage and
bunting and a copy of the revised menu, all of which
confirm the new
name. This fact is not disputed by the applicant, which has not
elected to revise the relief sought in the notice
of motion to take
account of the change. One must accept therefore that the applicant
is not offended or prejudiced by the use
of the mark “Sol
Kitchen.”
THE ANSWERING
AFFIDAVIT
38.
In the short answering affidavit deposed to
by Mr. Frost on 29 October 2021, he says, as already explained above,
that the name
of the restaurant was changed to “Sol Kitchen”
and that its proprietor was Actualiz Holdings. There is an attack on
the urgency of the matter and the applicant is accused of behaving so
unreasonably to the extent that a punitive costs order is
sought. The
restaurant’s answer is, however, short on detail in response to
the evidence and causes of action expressly set
forth in the founding
affidavit.
39.
In the introductory paragraphs of the
answer, Mr. Frost explains the change of name and the restaurant’s
overall stance as
follows.
“
[4]
Members of the public are not confused or deceived into believing
that the business of the Respondent is linked to or associated
with
that of the Applicant and are ‘horses from the same stable’.
This is clearly illustrated in the Applicant’s
own papers. If
members of the public merely look at the two names of the two
different entities as well as the premises, styles
and character,
there is no real likelihood that they will be misled by the
similarity of the word ‘soul’ and ‘sol’.
[5] The respondent is not
exploiting any trademark or damaging any brand, nor possibly or
potentially causing any loss of sales
caused by confusion. The use of
the words ‘soul and ‘sol’ are not taking any unfair
advantage of or is (sic)
in any way detrimental to the distinctive
character and repute of the Applicant’s trade mark.
[6] Despite of (sic) the
above, the Applicant (sic) nevertheless decided to change the name in
order to avoid unnecessary and costly
litigation. In our letter dated
6 August 2021… the Applicant was invited to round table
discussions so that a new name that
meets the Applicant’s
approval could be discussed. This invitation was answered by the
launching of these proceedings. Dismissal
of the application will be
asked as this constitutes inappropriate preliminary litigation. The
application is moreover moot since
the Respondent took the decision
(without the benefit and willingness of the Applicant’s (sic)
to be a part of the decision),
to change the name to ‘Sol
Kitchen’.
[7] A quick search of the
word ‘soul’ at the Companies and Intellectual Property
Office (Cipro), which is part of the
Department of Trade and
Industry, and its use in the food industry it (sic) was found that
there were more than 230 companies using
the word ‘soul’,
and half were related to food. Many of the food companies and/or
restaurants had registered their
companies more than 12 to 15 years
ago. The Applicant’s strategy has been to intimidate the owners
with aggressive legal
letters and litigation demanding that they
cease to trade and disclose their earnings so that they can calculate
an appropriate
royalty payment.
[8] The Applicant
obviously have (sic) deeper pockets than the Respondent, and even
though we have an exceptionally strong case,
a victory for us could
cost us our entire business and livelihood to legal costs, as well as
those of our employees. Very few if
any small business like ours can
survive a legal onslaught by large, economically powerful,
multi-billion-rand corporates like
the Applicant.
[9]
It is submitted that this is a frivolous and vexatious SLAPP
[5]
lawsuit, not undertaken to be won necessarily, but to intimidate us.
It is a misuse and abuse of our legal system and constitutes
nothing
else than LAWFARE
[6]
.
[10] It is further
submitted that the idea that one company should have the monopoly on
a term which represents the cuisine of a
group of people and their
culture is
contra bonos mores.”
40.
The remainder of the answering affidavit contains the briefest of
responses to the substance
of the founding affidavit and its
paragraphs contain a series of rote responses. In that regard, I
refer to para 20 to demonstrate
how unhelpful the answer on the
merits really is.
“
Ad
para 8 – 37
20. The contents of the
paragraphs under reply are noted and denied insofar it is
inconsistent with what is stated by me elsewhere.
All opinions,
speculations, legal argument, and assumptions made by the deponent
are denied and he is put to the proof thereof.”
Regrettably, the
answering affidavit fails to engage adequately with the applicant’s
case as set out in the founding affidavit
and consequently the case
must be decided, in the main, on the applicant’s version.
THE REPLYING AFFIDAVIT
41.
The applicant’s replying affidavit was deposed to by Ms.
Sombonos-van Tonder on 5
November 2021, less than a week before the
date of the hearing. The affidavit deals, firstly, with the identity
of the proprietor
of the restaurant. The deponent points out that,
while the reply to the Rule 14(5)(a) notice identified Actualiz
Consulting as
the respondent, Mr. Frost claimed in the answering
affidavit that he was a director of Actualiz Holdings. The conclusion
was drawn
that either the restaurant was owned by two corporate
entities or it was attempting to mislead the Court as to the true
identity
of the proprietor of the restaurant.
42.
At the conclusion of Mr. Ferreira’s address on 15 November
2021, an undertaking was
given that the restaurant’s attorneys
would file an affidavit later that day to clarify the question of
proprietorship. That
was not done and now, more than 3 months later,
the Court is none the wiser as to the correct state of affairs. The
failure of
the restaurant’s attorneys to make good on an
undertaking given to the Court is to be deprecated in the strongest
terms.
43.
While complaining that the answering affidavit was almost six weeks
late and that no heads
of argument had been filed by the restaurant,
Ms. Sombonos-van Tonder goes on to castigate the respondent for
failing to take the
Court into its confidence and to provide tangible
proof of the alleged changes made to the name of the restaurant. For
example,
where were the annexures with photographs of the new signage
and revised menus, she asked.
44.
Noting that the answering affidavit is both dismissive of the
applicant and belligerent
in its tone while containing nothing of
substance, Ms. Sombonos-van der Merwe asks the Court to determine the
case on the founding
papers. The replying affidavit nevertheless
contains an
ad seriatim
response to certain of the allegations
contained in the answering affidavit.
45.
On the issue of the request by the restaurant for a round-table
meeting of the parties,
Ms. Sombonos-van Tonder explains that the
email of Mr. Mills of 6 August 2021 had been preceded by a combative
and dismissive response
which was hardly conducive to settlement
negotiations, and, more particularly, because the response had failed
to appreciate that
the restaurant was not entitled to use the
applicant’s registered trade mark
per se.
Effectively,
she says, there was nothing to talk about.
THE
STATUS QUO
AFFIDAVIT
46.
As already recorded, this document was filed the day before the
hearing on 11 November 2021
and was intended to update the court as
to “the current factual state of affairs”. Firstly, the
name change to “Sol
Kitchen” is said to be corroborated
by 5 annexures to that affidavit. These include a flyer advertising
certain weekday specials
at “Sol Kitchen” as well as the
restaurant’s wine list (with the same trading name thereon) and
a triangular
banner prominently erected outside the premises. The
affidavit also furnishes the restaurant’s website address at
https://sol-kitchen-plett.business.site/?utm_source=gmb&utm_medium=referral
and suggests that the public might find it there.
47.
When the Court accepted the invitation to view the website during
preparation of this judgment
in February 2022, it was apparent that
there had been a concerted attempt to change the name to “Sol
Kitchen” throughout
the website. There were, however, two
entries on the website which were cause for some concern in light of
the allusion in para
6 of Mr. Frost’s answering affidavit that
there had been a decision to change the name of the restaurant, which
was clearly
meant to convey to the Court and the applicant that the
change had occurred sometime in the past.
48.
Firstly, there is a hyperlink under the heading “VIEW ALL”
which, when clicked
on, takes the reader to a series of updates
furnishing details of special events and menu items.
[7]
Under the heading “
Updates
”
for “Nov 6, 2021” the following lyrical entry appears.
(The entry is reproduced with the spelling and syntax
as in the
original).
“
Jambo
(Hello)
Things happen for a
reason and the power of change, when embraced, is a magnificent
thing!
Our short exciting
evolution has taught us some valuable lessons and the most important
of these is to take the cues that are presented
to us and run with
them…
Our beautiful Pizza oven
was hand built and fashioned to represent the rising East Coast Sun –
the Dhow Sails are all pointing
East as the fishermen (and women)
head out to sea for a day of bountiful harvest, they arrive back
safely, guided by the setting
Sun in the West, to prepare for the
feast to follow…
On
Monday 15, November 21, ‘East Coast Soul Kitchen’ will
become ‘Sol Kitchen’
as we
sail into the rising/setting Sun!
Join us in our Welcoming,
Friendly, Fun and Happy place for our now famous Cocktails, Meals,
Desserts and MORE!!
See you soon!
Asante! (Thank You).”
(Emphasis added)
The update suggests that
the restaurant had buckled under the pressure of this application,
and then only at a very late stage of
the proceedings. But there is
more.
49.
Under the heading “
ABOUT US
” on the webpage, there
is a recitation of the history of the business in an endeavour to
explain its multi-faceted cuisine
through a series of exotic
geographic locations. One finds in this recitation some repetition of
the Facebook page extract referred
to in part by Mr. Wheeldon in para
20 of the founding affidavit and also the introduction to the revised
menu attached as “FA
9” to the founding affidavit. The
webpage presently reads as follows.
“
Welcomt
to our tribute life on the East coast of Africa:
East
Coast Soul Kitchen
– The new “LM
in Plett”. We invite you to celebrate this vibrant melting post
of people, cultures, sights, music,
and, of course, food and drink
with us at East Coast Soul Kitchen where we do everything with love,
dedication, passion, attention
to detal and, abouve all, soul. So
relax, take a load off and picture yourself in a little bay in the
middle of nowhere, dhows
sailng into the distance – sipping on
a Dhawa cocktail and enjoying a feast with family and friends. Our
menu will keep evolving
as we explore influences as diverse as the
people – from Somalia to South Africa. Our first edition menu
include dishes from
Tanzania, Mozambique and South Africa with
influences from acorss the globe – Portuguese, Persian, Cape
Malay, Italian, Middle
Eastern, French and German. At
East
Coast Soul Kitchen
our produce is
self-grown or sourced liocally wherever possible. Your hosts;
Jacques, George and Len. Cheers!”. (Emphasis
added)
50.
During his address, Mr. Seale complained that there were still
remnants of the restaurant’s
original name circulating in
cyberspace, despite the declared intention by the restaurant to
change it to “Sol Kitchen”.
In consequence hereof, said
counsel, a person searching the internet for “
SOUL KITCHEN
”
might be inadvertently directed to the restaurant’s current
website. Also, it was suggested that earlier restaurant
reviews of
East Coast Soul Kitchen which were still in cyberspace might confuse
prospective diners in Plettenberg Bay trawling
the internet via a
search engine into believing that it was still the trading name of
the restaurant. The concern seems rather
misplaced: prospective
diners seeing such a review would ultimately find their way to the
restaurant’s current website where
they would see the change of
name and revised menu.
51.
And, I suppose Mr. Seale’s concern might have been valid if the
applicant had explained
to the Court where and how it uses that
registered mark, and, importantly, under what circumstances such a
search might be envisaged
commercially. Regrettably (and perhaps by
design), the applicant has failed to tell the Court what the extent
of the business of
Golden Fried Chicken (Pty) Ltd is. All that it has
said in these papers is that it runs a business called Chicken
Licken.
52.
The response of Mr. Mills in the email of 6 August 2021 suggests that
Chicken Licken might
be sold at fast food outlets, the nearest of
which is said to be more than 100km from Plettenberg Bay. There are
any number of
questions that then arise. Are these outlets perhaps
known as Chicken Licken’s “Soul Kitchen”? Or is the
applicant’s
“
SOUL KITCHEN”
the place where
its golden fried chicken is prepared for sale at such a Chicken
Licken outlet? Or has the applicant registered
the trade mark
defensively, mindful of the fact that some day in the future it may
expand its business into the preparation and
sale of food which is
generically described as “soul food” ?
53.
This Court is none the wiser and is left to speculate as to the true
nature and origin of
“soul food”. Is it food which has
its roots in the eponymous Afro-American music genre of the 1960’s
and 1970’s
pioneered by such favourites as James Brown and
Aretha Franklin? Or is it wholesome food which is perhaps intended to
assuage the
soul of a hungry or troubled diner?
54.
In the status quo affidavit Mr. Frost refers the Court to the
judgment of Ms. Justice D.Pillay
in the matter mentioned in para 3.4
of Mr. Mills’ letter of 27 July 2021
[8]
and attaches a copy thereof to the affidavit. From the judgment it is
apparent that Mr. Wheeldon represented Golden Fried Chicken
in that
matter too while the respondent there was represented by the same Mr.
Ferreira who ultimately appeared for the restaurant
herein. In the
course of her judgment, D. Pillay J deals at length with the nature
and extent of Golden Fried Chicken’s business
as it was set out
in the papers before her. But, in light of the fact that the
applicant has not considered it necessary to place
those facts before
this Court, it would be inappropriate and impermissible to have
regard to them in this judgment.
55.
In the same letter Mr. Mills referred to the judgment of Yacoob J in
another trade mark
application involving Golden Fried Chicken
[9]
.
A copy of that judgment is contained in the bundle of authorities
prepared for the Court’s convenience by Mr. Seale from
which it
is evident that Mr. Wheeldon was also the attorney of record there
for Golden Fried Chicken.
[10]
The judgment of Yacoob J reflects that in the Vlachos matter too the
court was provided with details of the nature and extent of
Golden
Fried Chicken’s operations. Those facts are similarly not
cognizable before this Court. So, at the end of the day,
this Court
has precious little before it to evaluate the complaint by the
applicant of the prospect of confusion arising on the
part of patrons
of the two businesses which are the parties to this litigation.
HAS THE FIRST
INFRINGEMENT BEEN ESTABLISHED BY THE APPLICANT?
56.
It must be stressed that this matter does not involve a claim of
passing off or unlawful
competition: the applicant seeks relief based
solely on trade mark infringement under s34 of the Act. In
considering whether the
applicant had established the first
infringement contended for under s34(1)(a) of the Act, Mr. Seale
relied on the judgment of
Harms ADP in
BMW
[11]
,
to demonstrate what the applicant was required to establish. I shall
cite in full from the relevant passage.
“
[3]
This means that BMW had to establish (a) its trade mark
registrations; (b) unauthorized use in the course of trade by the
appellant
of those trade marks; (c) of an identical mark; (d) in
relation to the goods in respect of which the mark is registered.
Concerning
(c), BMW could, on different facts, have relied on the use
of a mark so nearly resembling its registered trade mark ‘as to
be likely to deceive or cause confusion’ but that is not its
case. It relies on the use of an identical mark and that by
its very
nature deceives and confuses. (cf
Berman
Brothers (Pty) Ltd v Sodastream Ltd and another
1986 (3) SA 209
(A) at 232H -233A.) In addition as this court
recently held [in
Verimark
[12]
]
in line with developments in Europe and the United Kingdom, the
defendant’s use must have been ‘trade mark use’,
meaning that –
‘
[5]…[t]here
can only be a primary trade mark infringement if it is established
that consumers are likely to interpret the
mark,
as
it is used by the third party
,
as designating or tending to designate the undertaking from which the
third party’s goods originate…
[7]…What
is accordingly required is an interpretation of the mark through the
eyes of the consumer as used by the alleged
infringer. If the use
creates an impression of a material link between the product and the
owner of the mark there is infringement;
otherwise there is not. The
use of a mark for purely descriptive purposes will not create that
impression but it is also clear
that this is not necessarily the
definitive test.’
”
57.
Mr. Seale contended that the applicant’s registered mark “
SOUL
KITCHEN
” had been directly copied and unlawfully
appropriated by the restaurant, plain and simple, and that that was
the end of the
matter. It was said that the original description of
the restaurant as “East Coast Soul Kitchen” was a copy of
an identical
mark in the same class (i.e. class 43 for the provision
of food services) and the fact that the type face and colour of the
words
was obviously dissimilar and, further, that it was qualified by
the words “East Coast”, was irrelevant in the
circumstances.
Counsel contended for a measure of strict liability,
if I may be permitted to mix legal parlance.
58.
The point of departure in relation to the applicant’s
persistence in moving for an
interdict under s34(1)(a) in relation to
the use of its mark “
SOUL KITCHEN
” is, in my view,
whether the restaurant is presently using an identical mark. It is
manifestly not doing so. It has changed
its name to “Sol
Kitchen” and has adduced more than sufficient evidence to
demonstrate this. Indeed, the remark on
the webpage referred to in
para 48 above demonstrates that the restaurant appreciated that it
was prudent to change its name and
that it has done so immutably.
59.
“Sol Kitchen” is not an identical mark, nor does the
applicant claim that it
is. While the case was originally brought on
the basis that the restaurant was making unauthorized use of the
“
SOUL
KITCHEN
”
mark, the applicant has not amended its notice of motion to seek any
relief in relation to the revised name, “Sol
Kitchen”.
There can no longer be any apprehension of harm on the part of the
applicant and the relief sought is thus redundant
as the issue is
moot. Interdicts are not granted to address past wrongs. In the
circumstances, an interdict under s34(3)(a) of
the Act serves no
purpose and is not warranted.
[13]
60.
To the extent that it was suggested by counsel that the “East
Coast Soul Kitchen”
mark was still accessible in cyberspace by
virtue of restaurant reviews and the like which originated while the
restaurant still
traded under that name, and further that prospective
customers might come upon that name during a search of the internet,
I am
of the view that there is nothing that the restaurant can do to
correct that misdescription. Accordingly, the interdict sought in
prayer 2 of the notice of motion will not, and cannot, address that
situation.
61.
In relation to the first alleged infringement, there remains the
isolated reference to “East
Coast Soul Kitchen” in the
“
ABOUT US
” hyperlink referred to in para 49 above.
I have little doubt that this is an oversight on the part of the
restaurant in reconfiguring
its website and I am certain that if it
is offered the opportunity to correct same it will do so. I shall
according make an appropriate
order to that effect utilizing my right
to grant the applicant alternative relief.
62.
If I am wrong in relation to my approach to the first alleged
infringement, I would add
the following. Reliance on relief under
s34(1)(a) requires the applicant to show that the offending mark is
identical to the registered
mark or is “
a mark so nearly
resembling it as to be likely to deceive or cause confusion.
”
I have already observed that I do not regard the offending mark as
identical to the registered mark. While it manifestly
contains the
words “soul kitchen”, the offending mark incorporates the
additional words “East Coast” and
is wholly different in
regard to the type-face and colours utilized thereon. In such
circumstances, the applicant bears the onus
of showing that the
offending mark is likely to deceive or cause confusion.
IS THE RESTAURANT’S
ORIGINAL MARK LIKELY TO DECEIVE OR CAUSE CONFUSION?
63.
In answering this question, the point of departure is the approach
advocated by Harms ADP
in
Verimark
at [7] and as set out in
[56] above. Thus, the applicant was required to adduce evidence to
establish that a diner at the restaurant
is likely to interpret the
offending mark, “East Coast Soul Kitchen”, as materially
linked to the registered mark,
“
SOUL KITCHEN
”. How
should it have gone about discharging this onus?
64.
The approach is usefully summarized in
LAWSA
[14]
as follows.
“
Infringement
is proved if it is established that there is a likelihood that a
substantial number of people who buy or are interested
in the
particular goods or services will be confused or deceived. The
deception or confusion, which is mainly relevant, exists
when a
person is deceived into the belief that there is a material
connection between the goods or services bearing the allegedly
infringing trade mark and the owner of the other trade mark, or when
a person is confused as to the existence or non-existence
of such a
connection. The factors to be considered (which are not exhaustive)
have been stated in a number of cases and will not
re-stated here.
The test is an objective one. It is important for the court to be
informed as to the nature of the market for the
goods, in order that
the court may nationally transport itself into the shoes of the
potential customer.
A major consideration,
which can be overlooked, is to determine the how the marks in issue
would be perceived by the consumer.”
(Internal references
omitted)
65.
Accordingly, before the Court can make such an assessment, it must be
informed of the circumstances
under which the registered mark is used
– the nature of the market in which the applicant operates and
where its “
SOUL
KITCHEN
”
fits in to its overall product presentation. Absent this, there is no
basis upon which this Court can begin to assess the
possibility (or
extent) of confusion in the food services market in which the parties
to this dispute evidently operate
[15]
.
66.
It follows, in my view, that the applicant has failed to discharge
the onus incumbent on
it under s34(1)(a) and hence the alleged first
infringement has not been established.
EVIDENCE IN SUPPORT OF
THE SECOND ALLEGED INFRINGEMENT
67.
The second alleged infringement suffers much the same fate as the
first. In the first place
the applicant has not established the
on-going use by the restaurant of any of its other registered trade
marks. In the founding
affidavit Mr. Wheeldon refers, initially, to
menu items in which the marks “
SOUL
” and “
SOUL
SMASH BURGER
” are used by the restaurant (see Annexure FA4;
Record p49). But then, he goes on to refer in Annexure FA9 (Record pp
72 -3)
to a menu on the restaurant’s Facebook and webpages,
where the mark “
SOUL
” is no longer employed.
68.
The uncontested evidence in the
status quo
affidavit shows
that the restaurant intentionally revised its trading name and menu
to avoid any potential for unlawful use of
the applicant’s
registered marks and that it is now free of any reference to the
applicant’s “
SOUL
” mark, whether as a
stand-alone mark or in combination with other words.
69.
In the circumstances, there is no evidence before the court to
sustain any contention that
the restaurant is currently infringing
the applicant’s “
SOUL
” and
SOUL
-related
marks as contemplated under s34(1)(b) of the Act. Accordingly, it is
not necessary to debate whether the possibility of
deception or
confusion exists. The claim for the second infringement and the
consequential interdictory relief must similarly fail.
COSTS
70.
As I have indicated, both parties sought to proverbially “up
the ante” and seek
punitive costs orders, the one from the
other. While the applicant might have been entitled to consider
approaching the Court for
trade mark protection in the light of the
dismissive stance adopted by the restaurant in Mr. Mills’
letter of 27 July 2021,
it chose not to do so immediately. Rather, it
elected to spell out its position in greater detail in Mr. Wheeldon’s
letter
of 28 July 2021 which demonstrated that, while preparing for
war, it was amenable to a last-minute truce.
71.
In his email of 6 August 2021, Mr. Mills suggested just such a truce
to enable the parties
to engage meaningfully and avert the battle
which seemingly lay ahead. Rather surprisingly, in the circumstances,
the applicant
did not respond but forged ahead with an application
for urgent relief which did not adhere to the principle that in
amending the
“rules of the game” it was obliged to do so
with circumspection and afford the restaurant reasonable time limits
within
which to assess its position and respond.
[16]
72.
When it fired the first salvo in the battle, the applicant must have
known that, at best,
it might obtain relief under ss34(1)(a) or (b)
in respect of its “
SOUL KITCHEN
” mark in class 43.
For the rest, its case was without merit – firstly, because
Annexure FA 9 to the founding affidavit
put paid to any use by the
restaurant of the remaining registered marks, and, secondly, because
it had omitted to contextualize
the use of its marks to enable the
Court to assess the likelihood of confusion or deception.
73.
When the restaurant strategically changed its name to “Sol
Kitchen”, the battle
was effectively over and all that remained
was a potential skirmish about costs. The fact that the restaurant
prevaricated until
a couple of days before the hearing to inform the
Court and the enemy of the change of name, might have entitled the
applicant
to assume that it was necessary to soldier on and obtain
final interdictory relief. But the folly of that decision is
demonstrated
by the manifest short-comings in its founding affidavit.
74.
In the result, it cannot be said that either party has achieved
substantial success in this
battle and it seems to me that the most
equitable decision would be to order each to bear its own costs.
IN THE RESULT THE
FOLLOWING ORDER IS MADE
A.
The respondent is ordered to remove, within
1 week of this order, the remaining references to “East Coast
Soul Kitchen”
from its webpage and/or Facebook page as
reflected in para 49 of this judgment.
B.
Save as aforesaid the application is
dismissed.
C.
Each party is ordered to bear its own costs
of suit.
__________________
GAMBLE,
J
Appearances
For
the applicant:
Mr. M.C.Seale
Instructed by Ron
Wheeldon Attorneys
Greenside
Johannesburg
c/o England Slabbert
Attorneys Inc.
Cape Town.
For
the respondent: Mr. P.P. Ferreira
Instructed by Boqwana
Burns Attorneys
Plettenberg Bay
c/o Macgregor Erasmus
Attorneys
Cape Town
[1]
34
Infringement of registered trade mark
The
rights acquired by registration of a trade mark shall be infringed
by –
(a)
the unauthorized use in the course of trade in relation to goods or
services in respect of which the trade mark is registered,
of an
identical mark or of a mark so nearly resembling it as to be likely
to deceive or cause confusion;
[2]
S32 Limitation of trade mark as to particular
colours
(1) A trade mark may be
limited in whole or in part to a particular colour or colours, and
in case of any application for the
registration of a trade mark the
fact that the trademark is so limited shall be taken into
consideration in deciding whether
it is capable of distinguishing.
(2)
If and in so far as a trademark is registered without limitation of
colour, it shall be deemed to be registered for all colours.
[3]
Before
its name change to Maputo, the capital of Mozambique was Lourenco
Marques, which in local parlance was abbreviated to “LM”.
There can be little doubt that Mozambique is located on the eastern
coast of the African continent.
[4]
Minister
of Land Affairs and Agriculture v D&F Wevell Trust
2008
(2) SA 184
(SCA) at [43]
[5]
The
acronym for a “Strategic Lawsuit against Public
Participation.”
[6]
Wikipedia
Online Encyclopaedia
defines
“lawfare” as “the misuse of legal systems and
principles against an enemy, such as by damaging or delegitimizing
them, wasting their time and money (e.g. SLAPP suits), or winning a
public relations victory.”
[7]
The
entry is contained in Annexure SA 3 to Mr Wheeldon’s
supplementary affidavit of 10 November 2021 drawn in response to
the
restaurant’s
status
quo
affidavit (See Record p188)
[8]
Golden
Fried Chicken (Pty) Ltd v Oh My Soul (Pty) Ltd t/a Oh My Soul Café
[2019] ZAKZDHC 30 (25 March 2019)
[9]
Golden
Fried Chicken (Pty) Ltd v Vlachos and another
[2020] ZAGPJHC 284 (20 October 2020)
[10]
That matter is the subject of a pending appeal to the SCA and under
cover of a follow up note after the hearing, and at the Court’s
request, the parties forwarded a copy of the notice of appeal
inorder that the Court could assess whether there were any issues
to
be determined herein, which are the subject of that appeal. There do
not appear to be any issues.
[11]
Commercial
Auto Glass (Pty) Ltd v BMW AG
2007 (6) SA 637
(SCA). The claim was based on an alleged
infringement of a trade mark registered in favour of the BMW motor
manufacturer
[12]
Verimark
(Pty) Ltd v BMG AG
2007 (6) SA 263
(SCA) at [5] & [7]
[13]
Smith
and Nephew Ltd v Mediplast Pharmaceutical Sales CC
1999
(2) SA 647
(D) at 655 C-F.
[14]
LAWSA
Vol.
29 ‘Trade Marks’ at p134 para 211
[15]
See
Kraft
Foods Inc. v All Joy Foods (Pty) Ltd
1999
BIP 122 (T) at 127-9 and the authorities there cited.
[16]
Gallagher
v Norman’s Transport Lines (Pty) Ltd
1992
(3) SA 500
(W) at 502F – 503D
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