Case Law[2022] ZASCA 20South Africa
LA Group (Pty) Ltd v Stable Brands (Pty) Ltd and Another (650/2020) [2022] ZASCA 20; [2022] 2 All SA 678 (SCA); 2022 (4) SA 448 (SCA); 2022 BIP 336 (SCA); [2022] HIPR 185 (SCA) (22 February 2022)
Supreme Court of Appeal of South Africa
22 February 2022
Headnotes
Summary: Trade marks – whether marks liable to be removed from register – lack of distinctiveness in terms of s 24 read with ss 10(2)(a), (b) and (c) of Trade Marks Act 194 of 1993 (the Act) – non-use for five years or longer under s 27(1)(b) of the Act – registration without a genuine intention to use coupled with non-use under s 27(1)(a) – likelihood of confusion or deception arising from manner of use of mark under s 10(13).
Judgment
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## LA Group (Pty) Ltd v Stable Brands (Pty) Ltd and Another (650/2020) [2022] ZASCA 20; [2022] 2 All SA 678 (SCA); 2022 (4) SA 448 (SCA); 2022 BIP 336 (SCA); [2022] HIPR 185 (SCA) (22 February 2022)
LA Group (Pty) Ltd v Stable Brands (Pty) Ltd and Another (650/2020) [2022] ZASCA 20; [2022] 2 All SA 678 (SCA); 2022 (4) SA 448 (SCA); 2022 BIP 336 (SCA); [2022] HIPR 185 (SCA) (22 February 2022)
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sino date 22 February 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case no: 650/2020
In the matter
between:
LA GROUP (PTY)
LTD
APPELLANT
and
STABLE BRANDS
(PTY) LTD
FIRST RESPONDENT
THE REGISTRAR OF
TRADE MARKS
SECOND RESPONDENT
Neutral
citation:
LA
Group (Pty) Ltd v Stable Brands (Pty) Ltd and Another
(Case
no 650/2020)
[2022] ZASCA 20
(22 February 2022)
Coram:
PONNAN,
MAKGOKA, SCHIPPERS and PLASKET JJA and PHATSHOANE AJA
Heard:
17
August 2021
Delivered:
This
judgment was handed down electronically by circulation to the
parties’ representatives via email, publication on the Supreme
Court of Appeal website and release to SAFLII. The date and time for
hand-down is deemed to be 10h00 on 22 February 2022.
Summary:
Trade
marks – whether marks liable to be removed from register –
lack of distinctiveness in terms of s 24 read with ss
10(2)
(a)
,
(b)
and
(c)
of
Trade Marks Act 194 of 1993 (the Act) – non-use for five years or
longer under s 27(1)
(b)
of
the Act – registration without a genuine intention to use
coupled with non-use under s 27(1)
(a)
– likelihood
of confusion or deception arising from manner of use of mark under s
10(13).
ORDER
On
appeal from:
Gauteng
Division of the High Court of South Africa, Pretoria (Van der
Westhuizen J sitting as a court of first instance):
1
The appeal is upheld with costs, including the costs of two counsel.
The costs in relation to
the preparation of the appeal record are
disallowed.
2
Paragraphs 1, 2, 3, 4, 5 and 6 of the order of the high court are set
aside and replaced by
the following:
‘
1
The first respondent’s counter-application for the removal from the
register of trade marks, in
terms of s 27(1)
(b)
of
the Trade Marks Act 194 of 1993 (the Act), of the following trade
mark registration numbers is upheld:
(a)
1978/01082 DOUBLE POLO PONY (device) in class 25;
(b)
1985/08367 POLO COMPANY & DOUBLE POLO PLAYER (word and device) in
class 25; and
(c)
2009/26481 POLO PONY & PLAYER (device) in class 6.
2
The first respondent’s counter-application for the removal from the
register of trade marks,
in terms of s 27(1)
(a)
of the Act, of
the following trade mark registration numbers is upheld:
(a)
1987/01937 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(b)
2003/02681 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(c)
2013/31832 POLO PONY & PLAYER DEVICE in class 9, save for
‘glasses, spectacles, sunglasses’;
(d)
2009/26481 POLO PONY & PLAYER DEVICE in class 6, save for ‘key
rings’;
(e)
2009/26482 POLO in class 6, save for ‘key rings’.
3
Save as aforesaid (and excluding the trade mark registration numbers
1996/06818 POLO in class
27 and 2003/02685 POLO in class 43 which the
applicant conceded had not been used), the first respondent’s
counter-application
for the removal from the trade marks register, in
terms of s 27(1)
(b)
and s 27(1)
(a)
of the Act, of the
following trade mark registration numbers is dismissed:
(a)
1981/03857 POLO (Special Form) (word and stripe device) in class 25
in respect of shirts;
(b)
1982/06101 POLO (word) and 2009/20235 POLO (word) both in class 16 in
respect of paper articles, books,
stationery, pens, journals and
notebooks;
(c)
1982/06100 POLO and 2004/03775 POLO PONY & PLAYER (device) both
in class 14 in respect of watches,
cufflinks, keyrings, collar-shirt
bones and tie pins;
(d)
1982/06102 POLO (word) and 1988/11680 SINGLE POLO PLAYER (device)
both in class 26 in respect of buttons,
rivets, press studs, poppers,
zip pullers, sew-on plates, lapel pins, fobs, patches, hooks and
bars, cord ends and eyelets;
(e)
1982/06103 POLO (word) and 2013/32408 POLO (word) both in class 28 in
respect of toys, playthings, golf
balls, golf-tees, soft ponies,
teddy bears;
(f)
1985/01834 SINGLE POLO PLAYER (device) in class 18 in respect of
luggage, bags, handbags, wallets,
folders, purses;
(g)
1985/01835 SINGLE POLO PLAYER (device) in class 25 in respect of
clothing, including boots, shoes and
slippers.
(h)
1985/08368 POLO COMPANY in class 25;
(i)
1994/14433 POLO (word) and 1985/01836 SINGLE POLO PLAYER (device)
both in class 42 in respect of
retail, sale, distribution, marketing
and merchandising and wholesale services but excluding services
connected with goods in class
3;
(j)
2009/20234 SINGLE POLO PLAYER DEVICE in class 16 in respect of paper
articles, books, stationery
and pens;
(k)
2009/22109 POLO PONY & PLAYER DEVICE and 2011/06471 POLO (word)
both in class 20 in respect of cushions,
picture frames and pillows;
(l)
1982/06101 POLO in class 16;
(m)
1994/14433 POLO in class 42;
(n)
2013/07082 DOUBLE POLO PONY & PLAYER DEVICE in class 25.
4
The trade mark registrations referred to in paragraphs 1 and 2 above
as well as the trade mark
registration numbers 1996/06818 POLO in
class 27 and 2003/02685 POLO in class 43, are removed from the trade
marks register and the
Registrar of Trade Marks is ordered to effect
the necessary rectification in relation to the trade mark
registrations removed and
those referred to in paragraph 3 of this
order.
5
The first respondent’s counter-application for the removal from the
trade marks register,
in terms of s 24 read with s 10(2)
(a)
,
(b)
and
(c)
of the Act, of the trade mark registration
numbers listed in paragraphs 1, 2 and 3 of its further amended notice
of counter-application
dated 9 November 2018, is dismissed.
6
The first respondent’s counter-application for the removal from the
trade marks register,
in terms of s 24 read with s 10(13) of the
Act, of the trade mark registration numbers listed in paragraph 4 of
its further
amended notice of counter- application dated 9 November
2018, is dismissed.
7
The first respondent is ordered to pay the costs of the
counter-application which shall include
the costs of two counsel.’
JUDGMENT
Ponnan JA
(Plasket JA concurring):
[1]
This is an appeal against a judgment of the Gauteng Division of the
High Court, Pretoria (per Van der
Westhuizen J) ordering the removal
of 46 of the appellant’s trade mark registrations from the register
of trade marks, in terms
of ss 10(2)
(a)
,
(b)
and
(c)
,
s 10(13) and ss 27(1)
(a)
and
(b)
of the Trade Marks Act 194 of 1993 (the Act).
[1]
[2]
The trade marks relevant to this appeal are registered across 14
classes. T
here
are essentially three main visual and conceptual features that the
trade marks embody, namely: (a) the word POLO; (b) pictorial
devices
of single polo players, each astride a pony engaged in play (the
SINGLE POLO PLAYER devices) and (c) pictorial devices of
two polo
ponies, each with polo players astride them engaged in play (the
DOUBLE POLO PLAYER devices).
[2]
[3]
In May 2018, LA Group (Pty) Ltd (the appellant) launched an
application seeking interdictory relief for
trade mark infringement
against,
inter alia
, Stable Brands (Pty) Ltd (the respondent)
in respect of the latter’s use, under licence, of certain trade
marks of the United States
Polo Association (the USPA) (the main
application). In response to the main application, the respondent
instituted a counter application
for the cancellation of the 46 trade
mark registrations relied upon by the appellant for the relief sought
in the main application.
[4]
Each of the appellant’s trade mark registrations were attacked on
at least one, and in most instances
on more than one, ground.
Although the appellant withdrew the main application at the
commencement of the hearing on 5 November 2018,
the respondent
nevertheless persisted with its counter application on the basis that
all of the appellant’s trade mark registrations
were entries
wrongly made and/or wrongly remaining on the register in terms of s
24 of the Act.
[3]
[5]
The
respondent succeeded in its counter application, with the
registrations being cancelled on various grounds, including: (i) that
the marks -
are
not capable of distinguishing (ss 10(2)
(a)
),
are descriptive and non-distinctive (s 10(2)
(b)
)
and have become customary in the
bona
fide
and established practices of the trade (s 10(2)
(c)
);
(ii) non-use for five years or longer (s 27(1)
(b)
);
(iii) registration, without a genuine intention to use, coupled with
non-use (s 27(1)
(a)
);
and, (iv) the likelihood of confusion or deception arising from the
manner in which the registrations had been used (s 10(13)).
[6]
As
all
46 of the appellant’s trade mark registrations formed the subject
of the s 10(13) attack, it may be convenient to commence with
that
ground, because as counsel for the appellant accepted, if the high
court was correct in its conclusion on that score, then the
appeal in
its entirety must fail.
[7]
Section 10 of the Act is headed: ‘Unregistrable trade marks’. To
the extent here relevant, it provides:
‘
The following
marks shall not be registered as trade marks or, if registered,
shall, subject to the provisions of sections 3 and 70,
be liable to
be removed from the register:
. . .
(2)
a mark which –
(a)
is not capable of
distinguishing within the meaning of section 9; or
(b)
consists exclusively
of a sign or an indication which may serve, in trade, to designate
the kind, quality, quantity, intended purpose,
value, geographical
origin or other characteristics of the goods or services, or the mode
or time of production of the goods or of
rendering of the services;
or
(c)
consists exclusively
of a sign or an indication which has become customary in the current
language or in the
bona
fide
and established practices of the trade;
. . .
(13)
a mark which, as a result of the manner in which it has been used,
would be likely to cause deception
or confusion;
(14)
subject to the provisions of section 14, a mark which is identical to
a registered trade mark belonging
to a different proprietor or so
similar thereto that the use thereof in relation to goods or services
in respect of which it is sought
to be registered and which are the
same as or similar to the goods or services in respect of which such
trade mark is registered,
would be likely to deceive or cause
confusion, unless the proprietor of such trade mark consents to the
registration of such mark;
(15)
subject to the provisions of section 14 and paragraph (16), a mark
which is identical to a mark which
is the subject of an earlier
application by a different person, or so similar thereto that the use
thereof in relation to goods or
services in respect of which it is
sought to be registered and which are the same as or similar to the
goods or services in respect
of which the mark in respect of which
the earlier application is made, would be likely to deceive or cause
confusion, unless the
person making the earlier application consents
to the registration of such mark.
. . .
Provided that a mark
shall not be refused registration by virtue of the provisions of
paragraph (2) or, if registered, shall not be
liable to be removed
from the register by virtue of the said provisions if at the date of
the application for registration or at
the date of an application for
removal from the register, as the case may be, it has in fact become
capable of distinguishing within
the meaning of section 9 as a result
of use made of the mark.’
[8]
Section 10(13) of the Act prohibits the registration of a mark,
‘which, as a result of the manner it
has been used, would be likely
to cause deception or confusion’; and, where such a mark has been
registered, provides for the expungement
thereof from the register.
[9]
The essence of the respondent’s case under s 10(13) is that the
appellant has made use of its various
marks,
alongside
the marks of the Polo/Ralph Lauren Company LP (Ralph Lauren), which
are virtually identical to some of the marks of the
appellant. This,
in circumstances where the appellant, so it seems, had entered into
an agreement with Ralph Lauren, pursuant to
which it has allowed the
registration and use by Ralph Lauren of marks (including POLO
simpliciter and the POLO PONY & PLAYER
device marks) in South
Africa. The appellant accordingly agreed to use (and has in fact
used) its marks, alongside those of Ralph
Lauren, without ensuring
that it distinguishes its goods from those of the latter.
[10] It
would seem that when Ralph Lauren sought to enter the South African
market and to register its trade marks, it
encountered opposition
from the appellant (or its predecessor). Ralph Lauren and the
appellant (or its predecessor) then entered
into litigation. In terms
of a settlement agreement (which the appellant chose not to introduce
into evidence), the parties appear
to have agreed to a delineation of
goods in respect of which each would be able to use the marks POLO,
POLO PONY & PLAYER device,
POLO JEANS Co and POLO SPORT in South
Africa.
[11]
Following upon the settlement, the following statement was placed on
the appellant’s website (www.polo.co.za):
‘
Trading
out of 27 Old Bond Street in London, Joffe encountered a similar
brand under the trade mark Ralph Lauren Polo. A dispute was
resolved
and the two parties signed a license agreement in 1987 clarifying the
production and trade of the respective brands into
agreed territories
with POLO South Africa retaining the exclusive rights to Sub-Saharan
Africa. The agreement allowed for the continued
use of the name
‘POLO’ but differentiated by POLO South Africa presenting the
pony facing to the right, whereas Ralph Lauren
Polo’s pony faces to
the left.’
[12]
The statement is deliberately vague and perhaps even decidedly
euphemistic. ‘POLO South Africa’, whoever or whatever
that may
be, is not identified. How long that agreement was intended to endure
is not divulged; we thus simply do not even know whether
the
agreement is still extant. Nor, are the material terms of the
agreement. What is more, the distinction sought to be drawn between
the right and left facing pony is more illusory than real. As pointed
out in
Royal
County of Berkshire Polo Club Lt v OHIM – Lifestyle Equities CV
:
‘
It
is true that, in the mark applied for, the polo player is facing left
and holding his mallet upright, while in the earlier marks
the polo
player is facing right and holding his mallet ready to strike the
ball. However, those slight differences are not sufficient
to reduce
significantly the similarity deriving from the fact that both the
signs at issue display the figure of a polo player astride
a
galloping horse. In both cases, the general public will recognise
clearly and remember the image of a mounted polo player’.
[4]
[13]
Going by what appeared on the appellant’s website, the import of
the agreement would appear to be that the appellant
effectively
agreed to share the South African market with Ralph Lauren (with both
of them using similar or identical trade marks)
and either acquiesced
in or did not object to the registration of various POLO marks in the
name of Ralph Lauren in class 3.
[5]
However, in the answering affidavit filed in the counter application
and, at odds with what is contained in the statement earlier
placed
on the appellant’s website,
Ms
Rae James,
the
Group Legal Advisor of the appellant, stated:
‘
[t]here
is no licensing or agency relationship between the [appellant] and
The Polo/Lauren Company LP. The statement referring to
a licensing
relationship . . . is incorrect and has long been removed from the
[appellant’s] website. The correct position is as
evidenced on the
official trade marks register.’
Why
it was described as such in the statement remains unexplained. The
trade mark register hardly assists. If not a licensing agreement,
then what? Whatever the true nature of the agreement, it seems
inconceivable that, if favourable, the appellant chose not to
introduce
it into evidence. After all, this was evidence that was
peculiarly within knowledge of the appellant, which it appears to
have self-consciously
chosen not to place before the court. In the
circumstances, there is simply no evidence to support the conclusion
that: ‘
[t]he
appellant and Ralph Lauren reached a valid compromise (whatever that
is supposed to mean or intended to convey) and their respective
trade
marks have coexisted in the marketplace since 2011’.
[6]
Nor,
does
any warrant exist for the adoption of
speculative
or conjectural
hypotheses
favourable to the appellant, such as ‘it is apparent that the
effect of their agreement is to give the appellant free
rein in the
field of clothing and similar items, while leaving Ralph Lauren to
import and sell its brand of cosmetics and skincare
products’.
[14]
But, even without sight of the agreement and on the assumption in
favour of the appellant that the matter can be
approached on the
footing postulated above, the appellant’s case in relation to the s
10(13) enquiry still does not survive scrutiny.
The appellant
contends that:
‘
The
Court
a
quo
incorrectly interpreted section 10(13) as involving a comparison
between the use of LA Group’s POLO trade marks, and the use of
Ralph Lauren’s POLO trade marks. We submit that section 10(13), on
its plain meaning, can only relate to the manner in which LA
Group
has itself used its own trade marks (in the past), and whether, as a
result, such use would now be likely to cause deception
or confusion.
There is no suggestion in section 10(13) that any consideration
should be given to a comparison between LA Group’s
trade marks and
those of Ralph Lauren.’
[15]
In this regard, the appellant calls in aid the comments in
Kerly
[7]
in respect of s 46(1)
(d)
of
the UK Trade Marks Act 1994, as amended (UK s 46(1)
(d)
),
which, so it is suggested, is in substance, an equivalent section to
our s 10(13). UK s 46(1)
(d)
provides:
‘
The
registration of a trade mark may be revoked on any of the following
grounds-
. . .
(d)
that in consequence of the use made of it by the proprietor or with
his consent in relation
to the goods or services for which it is
registered, it is liable to mislead the public, particularly as to
the nature, quality or
geographical origin of those goods or
services.’
[16] Of
UK s 46(1)
(d)
,
Kerly
observes:
‘
Absolute
ground (g) (UK Act s.3(3)(b); TMD art.3(1)(g): EUTMR art. 7(1)(g))
forbids the registration of a mark if it is of such a
nature as to
deceive the public. For instance, as to the nature, quality or
geographical origin of the goods or service. Thus, the
same examples
are used, yet slightly different expressions define the heart of the
provision: liable to mislead the public/of such
a nature as to
deceive the public. The difference appears to lie in the fact that
the vice caught by absolute ground (g) is inherent
in the meaning of
the mark itself, absent use, whereas the vice caught by s. 46(1)(d)
is a consequence of use. Apart from that, they
are aimed at the same
vice.
There are two
differences of significance between absolute ground (g) and this
ground for revocation. The first relates to the date
at which the
position is assessed. The absolute ground for refusal (and
invalidity) requires the position to be assessed at the date
of
application for the mark. This revocation ground requires the
position to be assessed as at the date of application for revocation.
The second concerns the cause of the deceptiveness. Under absolute
ground (g), the cause does not matter: a deceptive mark shall
not be
registered. The revocation ground only operates if the deceptiveness
has been caused by the use which has been made of the
mark by the
proprietor or with their consent. In other words it is deceptiveness
for which the proprietor is responsible, although
there is no
requirement to prove “blameworthy conduct”. In these respects,
this revocation ground has a narrower ambit than absolute
ground (g).
This ground for
revocation (like absolute ground (g)) looks to the mark itself and
whether the mark itself is liable to mislead the
public. However, the
liability to mislead must arise from the use made of the mark,
something not required for absolute ground (g).
Either way, “the
court must have due regard . . . to the message which [the] trade
mark conveys” – it is that which must mislead.
This ground for
revocation does not encompass passing off-type deceptiveness. It is
in the nature of an absolute objection – not
a relative objection
based on the mark of a different trader.’
[17] The
manner in which the appellant seeks to interpret s 10(13) of the Act
disregards the clear wording chosen by the
Legislature. The
Legislature did not choose to limit the nature of the confusion which
may result from the appellant’s use of its
trade marks and
certainly does not preclude a comparison of the appellant’s trade
marks (as used by it) with other marks available
in the market.
Textually, according to UK s 46(1)
(d)
, the public should be
misled by the use of the trade mark, as opposed to the use being
likely to cause deception or confusion as
provided for in s 10(13).
The former specifies the manner in which the public should be misled,
namely ‘as to the nature, quality
or geographical origin of [the]
goods or services’.
[18]
What is more, the verb ‘mislead’ is defined in the
Merriam-Webster Dictionary,
[8]
inter
alia
,
as ‘
to
lead in a wrong direction or into a mistaken action or belief often
by deliberate deceit’.
[9]
Section
10(13) contemplates not just deception, but also confusion; the words
‘deception’ and ‘confusion’ being separated
by the
disjunctive ‘or’. Two possible circumstances are thus envisaged
by our Legislature, namely either deception or confusion.
For
confusion, as opposed to deception, a lower threshold appears to be
envisaged. Thus, whilst ‘mislead’ is perhaps linguistically
and
conceptually analogous to ‘deception’, and may well contemplate
‘deliberate deceit’, the same does not hold true for
‘confusion’.
Confusion connotes ‘uncertainty’ or ‘the mistaking of one thing
for another’.
[10]
To borrow from Lord Denning in
Parker-Knoll
Limited v Knoll International Limited
:
‘…
.“to
deceive” is one thing. To “cause confusion” is another. The
difference is this: When you deceive a man, you tell him
a lie. You
make a false representation to him and thereby cause him to believe a
thing to be true which is false. You may not do
it knowingly, or
intentionally, but still you do it, and so you deceive him. But you
may cause confusion without telling him a lie
at all, and without
making any false representation to him. You may indeed tell him the
truth, the whole truth and nothing but the
truth, but still you may
cause confusion in his mind, not by any fault of yours, but because
he has not the knowledge or ability
to distinguish it from the other
pieces of truth known to him or because he may not even take the
trouble to do so.’
[11]
[19] The
reliance on the commentary in
Kerly
is thus misplaced. The
comments in
Kerly
are made in the context of the specific
wording of the UK section, which differs from s 10(13). The UK
authorities relied upon are
equally inapplicable. Section 10(13)
simply requires a situation to exist where the manner of use by a
trade mark proprietor is likely
to cause deception or confusion. The
Act neither prescribes, nor limits in any way, the manner of use from
which such a likelihood
of either deception or confusion is likely to
arise.
[20] The
appellant further contends that to ‘find that section 10(13)
envisages a comparison between two trade marks,
would mean that
section 10(13) serves the same object and purpose as sections 10(14)
and 10(15)’. Sections 10(14) and (15) apply
where a party claims an
earlier and better right to a trade mark. That is not so when it
comes to s 10(13). As far as s 10(13) is
concerned, it matters not
whether the user of a mark has earlier rights in and to the trade
mark. The question is whether the manner
of use of the trade mark is
likely to result in deception or confusion. So, whereas initially a
trade mark may have been validly
registered, it may become invalid as
a result of the manner in which it has been used, including to seek
to derive a benefit from
another party’s performance by creating
confusion between the registered trade mark and the trade mark used
by such other party.
That is not covered by the provisions of ss
10(14) or (15).
[21]
As it was put by Harms DP in the
Century
City
matter
:
‘
The point is well
illustrated by the facts in
Compass
Publishing BV v Compass Logistics Ltd
[2004]
EWHC 520
(Ch).
The registered mark was the word “Compass” in relation, in
simplified terms, to computer and computer related services.
The
defendant traded in the same fields under the name Compass Logistics.
After pointing out that the two marks were not identical
in the light
of
LTJ
Diffusion SA v Sadas Vertbaudet SA
the court proceeded to consider whether they were confusingly
similar. Laddie J said this (paras 24-25):
“
The
likelihood of confusion must be appreciated globally, taking account
of all relevant factors. It must be judged through the eyes
of the
average consumer of the goods or services in question. That customer
is to be taken to be reasonably well informed and reasonably
circumspect and observant, but he may have to rely upon an imperfect
picture or recollection of the marks. The court should factor
in the
recognition that the average consumer normally perceives a mark as a
whole and does not analyse its various details. The visual,
aural and
conceptual similarities of the marks must be assessed by reference to
the overall impressions created by the marks bearing
in mind their
distinctive and dominant components.
Furthermore,
if the association between the marks causes the public to wrongly
believe that the respective goods come from the same
or economically
linked undertakings, there is a likelihood of confusion
”.’
[12]
(My underlining for emphasis.)
[22]
The court should transport itself, notionally to the market place and
consider the marks, as they will be seen, by
the hypothetical
consumers of the goods concerned.
[13]
The main or dominant features of the marks in question, as well as
the general impression and any striking features, together with
their
likely impact on the mind of the consumer, are all factors to be
considered in deciding whether there is a likelihood of confusion
or
deception.
[14]
It is not required that the consumer’s confusion be lasting. It is
sufficient if it is confusing only for a short time; sufficient
to
attract initial interest, albeit that the confusion might be later
cleared up.
[15]
[23] In
answer to the main application, Mr David Cummings, an executive
director of the USPA, stated:
‘
52.
Apart from the fact that the applicant has contractually permitted
this to happen, it is also occurring
in practice, as is evident from
the photographs of perfumes (produced by Ralph Lauren Polo) and men’s
clothing (produced by the
applicant) taken at Edgars (attached hereto
marked
“
DC51”
and “DC52” respectively, and discussed later in this affidavit).
There is no discernible difference in the origin of the
products
(except if one
accepts
that the POLO PONY DEVICE pointing right rather than left is
distinctive, which will be dealt with in legal argument) and
I have
little doubt that the majority of the South African public does not
know that these products originate from different parties.
. . .
92.
On 17 May 2018, Ms Engelbrecht again visited the V&A Waterfront.
On this visit, she firstly
visited Clicks, a well-known South African
retailer and pharmacy. The particular store is located at shop 7109 -
7113, Lower Level,
Victoria Wharf in the V&A Waterfront, Cape
Town. Ms Engelbrecht saw for sale a selection of Ralph Lauren Polo
fragrances, which
packaging clearly displayed a horse and polo player
device. I attach marked “
DC50
” a photograph taken by
Ms Engelbrecht on that day.
93.
Ms Engelbrecht then visited Edgars, another well-known South African
retailer which is referred
to by Ms James (James, paragraph 55). This
particular store was located at shop 6206, Upper Level, Victoria
Wharf in the V&A
Waterfront, Cape Town, the same level on which
both the POLO and LA MARTINA stores are located. She again saw for
sale a selection
of Ralph Lauren Polo fragrances, which packaging
clearly displayed a horse
and
polo player device. I attach marked “
DC51
”
a photograph taken by Ms Engelbrecht on that day. As she strolled
through the store, she also came across various items of what
appeared to be the applicant’s POLO-branded clothing for sale, all
branded with the horse and polo player device. I attach marked
“
DC52
”
photographs taken by Ms Engelbrecht on that day.
94.
On 21 May 2018, Ms Engelbrecht visited the Edgars online store at
https://www.edgars.co.za
. She typed the following search terms
into the search function on the website: “
Ralph Lauren Polo
”
.
The search results returned for “
Ralph Lauren Polo
”
included a number of fragrances (which were indeed Ralph Lauren Polo)
and various clothing items for sale such as jeans, thongs,
peak caps,
shirts, handbags and dresses from various parties, all displayed on
the same page. I attach marked “
DC53
” a printout of the
search results made by Ms Engelbrecht on 21 May 2018. Some of the
clothing items appear to be the applicants,
but others are clearly
not – such as the “
Nike Woven Polo Shirt
”
,
the
“
Puma Stipe Polo Jersey
” or the “
Guess Venice Polo
Shirt
” for example. The search results clearly lumped together
one party’s POLO fragrances, with the applicant’s POLO clothing
and
various third parties’ clothing that was POLO-related.
95.
On
21 May 2018, Ms Engelbrecht also conducted a search on
www.google.co.za
for the search terms: ‘
Ralph
Lauren Polo
’
.
Amongst the search results was a link to a website
www.smartbuyglasses.co.za
(“the Smartbuy website”). This website appears to offer for sale
Ralph Lauren Polo Eyewear. I attach marked “
DC54
”
a printout of the Smartbuy website listing the sunglasses for sale.
96.
On 21 May 2018, Ms Engelbrecht conducted further research into the
coexistence between the
POLO and RALPH LAUREN POLO marks in the South
African market and found numerous articles written as far back as
2012 which point
to the fact that consumers are not aware of the
relationship between the applicant and Ralph Lauren Polo, or even
that they are different
entities. In particular, I attach copies of
the following articles:
96.1.
An article entitled “
What’s in
a
name
”
,
by
Emma Jordan, published on 28 March 2012 and which appears on the
website
www.ifashion.co.za
. A copy of this article, printed on
21 May 2018, is attached marked “
DC55
”.
96.2.
An article entitled “
Polo
SA
not Polo Ralph Lauren
”
published on 10 March 2014 in
The Times
(both in hard
newspaper copy and online on
www.timeslive.co.za
), a copy of
which is attached marked “
DC56
”. This is an extensive
article on the co-existence arrangement and the confusion it has
caused, recording in the article comments
by Ms James to questions it
had raised with her as the applicant’s representative.
96.3.
An article entitled “
Do People Still Think Polo SA Is
Part
of Ralph Lauren?
” by Seth Rotherham, published on 11 March 2014
and which appears on the website
www.2oceansvibe.com
. A copy
of this article, printed on 21 May 2018, is attached marked “
DC57
”.
96.4
An article entitled “
Does
the V&A Waterfront Stock Fake Luxury Brands?
”,
by Seth Rotherham, published on 17 March 2014 and which appears on
the website
www.2oceansvibe.com.
A copy of
this
article, printed on 21 May 2018, is attached marked “
DC58
”.
96.5
An
article entitled “
This
Is How You Buy The REAL Ralph Lauren Polo Shirts In South Africa (For
A Great Price, Nogal)
”,
by Seth Rotherham, published on 4 July 2017 and which appears on the
website
www.2oceansvibe.com
.
A copy of this article, printed on 21 May 2018 is attached marked
“
DC59
”.’
[24]
In the article entitled
‘
What’s
in a name’ by Emma Jordan
,
the following is recorded:
‘
And for all those
buying polo shirts at Polo, do you know that Polo South Africa is not
Ralph Lauren Polo? Yes, there is similar iconography,
styling end
branding but it’s not part of the Ralph Lauren stable. Look closely
and you’ll see the horse is facing the wrong
way around. When
questioned, Rae James, legal advisor for Polo South Africa said: “We
have an agreement with Ralph Lauren which
gives us rights to the Polo
brand. The pony in Africa faces the left and in Ralph Lauren Polo
[it] faces the right”.’
This, as well, is
not consistent with the statement that was placed on the appellant’s
website at the time when the settlement was
allegedly concluded with
Ralph Lauren (see paragraph 11 above). In that statement it is
indicated ‘POLO South Africa presenting
the pony facing to the
right, whereas Ralph Lauren Polo’s pony faces to the left’.
[25] The
article entitled ‘Polo SA not Polo Ralph Lauren’ by Megan Power
states:
‘
But what happens
when the iconic brand you are buying is not actually what you think
it is? Like finding out that Polo in South Africa
has no link to the
multi-billion-dollar Polo Ralph Lauren brand in the US.
. . .
It is an easy
mistake to make. The two brands share a name and a similar range of
premium goods. But, more significantly, they use
an almost identical
motif: a polo player on a horse.
. . .
I asked the LA
Group, which owns Polo South Africa, why it would choose to produce a
brand so similar to the US version? If the name
and motif were not
“borrowed” from Polo Ralph Lauren, was it just an incredible
coincidence?
I got nowhere with
group legal adviser Rae James, who refused to answer such questions
either by email or on the telephone, saying
they had “no
relevance”. Instead, she reiterated her e-mailed statement that
Polo South Africa has a “use agreement” with
Ralph Lauren that
entitles the company to use the Polo trademark in Africa and prevents
Ralph Lauren from trading in the same territories.
“
To differentiate
the product, it was agreed that the polo pony would face
differently,” the statement read. The trademarks were
registered
and owned by the company throughout Africa, she said, and had been
used for more than 35 years.
“
There’s nothing
more to it,” said James when I asked for more details. When I
suggested there was, asking whether she did not
think Polo South
Africa was misleading consumers, she said the company was unaware of
any market confusion.
A simple query on
where the local garments were made went unanswered.
. . .
Polo South Africa
sells its products through at least six stand-alone stores as well as
in selected Stuttafords, Edgars and John Craig
branches countrywide.
On the Edgars website, the local Polo logo is listed under
“international” brands, alongside the likes
of Levi's, Billabong
and Jeep.
Stuttafords, which
sells Polo Ralph Lauren perfume and Polo South Africa garments, lists
Polo Ralph Lauren’s logo alongside top
names such as Prada, Gucci
and Guess in its “brands” listing.
Then there is the
Branded website. The independent retailer of premier brands in
Gauteng dedicates a page to the Polo South Africa
brand with a link
that takes users to Ralph Lauren’s website.
When I called two
Branded stores asking whether the Polo products it sold were the US
Ralph Lauren products, one admitted it was a
local brand. The other
said it was Polo Ralph Lauren. Ditto for three John Craig stores
phoned: one said the product was local, another
suggested it came
from Poland and another said it was Polo Ralph Lauren. And Polo South
Africa thinks there is no confusion.’
[26] In
the counter application, Ms Monica Lee Hanf, a director of the
respondent, added:
‘
109.
That the difference between the applicant and Ralph Lauren Polo’s
trade marks are so subtle that the reasonable
consumer will not
immediately notice the difference (especially having an imperfect
recollection of either one of the parties trade
marks) is evident
from the articles annexed to Mr Cumming’s answering affidavit
(specifically “DC55” to “DC59” record pages
1467-1482). I
refer in this regard to the statements by Mr Cumming’s in his
answering affidavit paragraphs 96 - 97 (record pages
1281 - 1285) and
the various articles documenting consumer’s confusion and deception
regarding the goods sold by the applicant
and Ralph Lauren
respectively.
110.
In addition to the above, I annex hereto marked “
MLH20
” a
printout taken from the website at
www.satcopshops.co.za
,
providing a “
Ralph Lauren Store locator
” for outlets in
South Africa. The outlets listed on this website are those of the
applicant and not Ralph Lauren Polo.
111.
The same website also lists (as shown in annexure “
MLH21
”
as forming part of the “
Ralph Lauren Autumn/Winter 2018
selection
”) a baseball jacket which shows the trade mark POLO
PONY & PLAYER device used by the applicant, and not Ralph Lauren
Polo.
The listing also contains a link to the applicant’s website
at
www.polo.co.za
. I annex hereto marked “
MLH22
” a
printout taken from the applicant’s website where the exact jacket
is offered for sale.’
[27]
The appellant, whilst not denying the instances of actual confusion
alluded to by the respondent, objects to the
use of much of the
evidence on the basis that it constitutes hearsay evidence. First, as
Nugent JA pointed out in
The
Public Protector v Mail & Guardian Limited and Others
:
[16]
‘
.
. . Courts will generally not rely upon reported statements by
persons who do not give evidence (hearsay) for the truth of their
contents. Because that is not acceptable evidence upon which the
court will rely for factual findings, such statements are not
admissible
in trial proceedings and are liable to be struck out from
affidavits in application proceedings. But there are cases in which
the
relevance of the statement lies in the fact that it was made,
irrespective of the truth of the statement. In those cases the
statement
is not hearsay and is admissible to prove the fact that it
was made. In this case many such reported statements, mainly in
documents,
have been placed before us. What is relevant to this case
is that the document exists or that the statement was made and for
that
purpose those documents and statements are admissible evidence.’
[28]
Second, on 23 October 2018, the appellant filed an application with
the high court giving notice that ‘at the hearing
of the
application . . . [it would] apply to strike out the following
annexures on the grounds that they constitute inadmissible
hearsay
and unauthenticated evidence’. In all 75 annexures, the subject of
the respondent’s counter application, were identified.
Applications
to strike out are set down for hearing at the same time as the
hearing on the merits.
[17]
Evidently, that did not happen here. There is nothing in the judgment
of the high court or any other indication on the record that
at the
hearing of the counter application, the application to strike out was
persisted in. Third, some of the evidence objected to,
such as
printouts from websites and social media pages (particularly where,
as here, trading has been conducted online) have been
accepted by our
courts, especially in matters such as this.
[18]
[29]
Fourth, and perhaps most importantly, Ms James
did
not: (a) dispute that the issues reported on were indeed raised with
her; or (b) disavow any of the statements attributed to her
in the
articles. She stated in the replying affidavit filed in the main
application: ‘[m]ost of the assertions made in these paragraphs
are
repeated in Stable Brands’ counter-application. They will be
properly dealt with in the counter-application and should not
be
regarded as being admitted.’ In her answering affidavit filed in
the counter application she said the following: ‘I only deal
with
the inadmissible evidence . . . in the event of it not being struck
out’ (which it was not). She then proceeded, in essence,
to
describe the articles as outdated opinion pieces and denied that they
constituted evidence of deception or confusion. But, she
left
undisputed that she had indeed been contacted for comment as well as
the statements attributed to her in the various articles.
A party
intending to apply to strike out should not anticipate the findings
of the court but deal with the allegations on the merits.
[19]
In this regard, it has long been held that ‘what a party [herself]
admits to be true may reasonably be presumed to be so’.
[20]
It must follow that the failure by Ms James to deal at all with those
allegations amounts to an admission of them.
[21]
[30] The
affidavits in the matter thus evidence Ralph Lauren’s POLO
fragrances being sold at the same department stores
and fashion
outlets, where the appellant’s POLO-branded clothing is also
offered for sale. In this regard the judgment of the full
court in
Chantelle v Designer Co (Pty) Ltd
is apposite. In that matter,
in the context of an opposition to the registration of the mark
CHANTELLE in class 3, in the face of
an existing registration for the
mark CHANTELLE in class 25, the court concluded:
‘
In
all the circumstances, and on the weight of the evidence, I have come
to the conclusion that it is likely that the average observant
consumer of the appellant’s goods, stumbling upon the respondent’s
cosmetics, bearing the identical mark, notionally in the same
shop
and notionally a few counters away, would be confused and deceived
into believing, albeit perhaps momentarily, that the cosmetics
of the
respondent originate from the same source as the clothing of the
appellant.’
[22]
[31] In
addition, according to the respondent, the appellant appears to have
chosen to mimic the Ralph Lauren POLO business.
As Ms Hanf points
out:
‘
120.
The statement made by these various consumers and bloggers are
supported by the following:
(a)
When one compares the appearance of Polo Ralph Lauren outlets with
those of the applicant’s
outlets in South Africa, it is clear that
the South African outlets are designed to mimic their international
counterparts. In this
regard, the trade mark POLO appears in a golden
colour against a navy blue background in the same font as the Ralph
Lauren’s outlet.
In addition, Ralph Lauren Polo favours shop
fittings with elegant wooden shelving. The applicant has adopted the
same design for
the interior of its South African outlets, as
evidenced by the photographs of the applicant’s outlet as show in
annexure “DC49”
to Mr Cummings answering affidavit (record page
1445-1446).
(b)
Ralph Lauren Polo introduced a “pink pony” campaign in support of
breast cancer awareness.
I annex hereto marked “
MLH28
”
a printout taken from Ralph Lauren’s website showing its current
pink pony merchandise. I also
annex
hereto marked “
MLH29
”
,
a
printout taken from the website from the Vanity fair magazine dated
15 October 2015
entitled
“Fighting for the cure: Ralph Lauren’s Pink Pony Fund”
.
121.
The applicant, in about 2014, launched its range of Pink Polo
clothing for cancer featuring a Polo Player
Device in pink, with the
mark “pink pony”, also in support of breast cancer awareness. I
annex hereto marked “
MLH30
”
,
a printout of an
article taken from the website of the
Elle
magazine dated 23
October 2014.
122.
The manner in which the applicant has introduced ranges of “
Polo
Jeans
Co” and “
Polo Sport
” mimics the Polo Jeans
Company, operated by Ralph Lauren Corporations subsidiary Polo Jeans
Company LLC, which had previously been
sold by Ralph Lauren Company.
I annex hereto marked “
MLH31
”, a printout taken from the
website
www.threadup.com
, offering for sale products bearing
the brand “Polo Jeans”. I annex hereto, marked “
MLH32
”,
a printout taken from local online retailer Spree’s website,
showing its use of a mark “Polo Jeans” on the applicant’s
goods. The same applies to Ralph Lauren’s use of the mark Polo
Sport, used in relation to its fragrance range (also available in
South Africa) compared with the category of Polo Sport clothing, as
indicated on its website and sold in South Africa through the
online
retailer Zando.co.za.
123.
The applicant’s expansion of its range of Polo branded goods into
homeware also mimics the extension
of Ralph Lauren of goods to home
products including bedding, towels and the like.’
[32]
However, whereas the Ralph Lauren products bear the RALPH LAUREN
trade marks, the appellant does not distinguish
its products clearly
from those of Ralph Lauren and simply makes use of those marks which
it has in common with the latter.
Ms
James asserts that:
‘
There
is nothing unlawful or irregular about the fact that the applicant
and The Polo/Lauren Company LP co-exist in the marketplace.
The
commercial reality of the marketplace often requires entities with
similar or identical trade marks to co-exist’.
Implicit
in this, however, as also the statement placed on the appellant’s
website and the other undisputed evidence, is an admission
by the
appellant that its marks are indeed confusingly similar to those used
by Ralph Lauren.
[33]
This is consistent with the stance adopted by the appellant in the
matter of
LA
Group Limited and Another v B&J Meltz (Pty) Ltd and Others
(
Meltz
).
[23]
In
Meltz
,
the appellant sought to prevent the sale of,
inter
alia
,
clothing emanating from Ralph Lauren. It did so well knowing that it
had agreed to Ralph Lauren selling goods bearing similar or
identical
marks (albeit in relation to cosmetics), alongside its own marks in
the South African market. The court found:
‘
[Polo]
by Ralph Lauren infringes upon the POLO mark. Some customers might
know that Ralph Lauren is a company different from the South
African
proprietors of POLO, but the accent is on POLO and that lies at the
heart of the attached articles with this inscription.
A substantial
number of customers are likely to be confused by the addition of “by
Ralph Lauren”, not knowing or at least being
confused as to whether
all Polo shirts are not from Ralph Lauren. The Polo is dominant in
the mark.
As
to the horse device, it is irrelevant whether the horse faces the
left or the right. Although the registered single horse faces
the
right, it is unlikely that more than the highly informed would
remember this . . . .’
[24]
Despite adopting
this attitude in
Meltz
, the appellant nevertheless proceeded
to place its goods for sale in the same outlets and on the same
online retailers, where goods
carrying the Ralph Lauren trade marks
were available for sale.
[34] In
Century City
, Harms DP observed:
‘
I can do no
better than to refer to the facts in
10
Royal Berkshire Polo Club Trade Mark
[2001]
RPC 643
esp
at 653. The question was whether this mark was confusingly similar to
the well known Polo mark. The court held that it was
not because
it did not capture the distinctiveness of the trade mark owner’s
mark; that the message of the mark came from the words
in
combination; and that the word Polo functioned adjectivally in the
context of the applicant’s mark. Adjectival use may be distinctive
from the use of a word as a noun. The same considerations apply too
in the present case to exclude the reasonable possibility of
confusion or deception.’
[25]
[35] In
10
Royal Berkshire Polo Club Trade Mark
,
[26]
the applicant, the Royal County of Berkshire Polo Club Limited, had
applied on 4 August 1995 (which was opposed by Ralph Lauren)
to
register the sign 10 Royal Berkshire Polo Club as a trade mark for
use in relation to ‘perfumery, aftershave, preparations for
hair,
shampoo, soaps, essential oils, cosmetics, hair lotion, deodorants,
eau de toilette, body sprays, bath oils, bubble bath and
shower gel’
in Class 3. The hearing officer concluded that the application for
registration was objectionable and rejected the
application. On
appeal, the Appointed Person, Geoffrey Hobbs QC, reasoned (at 653)
that:
‘
. . . I am
satisfied that the use of the word POLO as part of the applicant’s
mark does not capture the distinctiveness of [Ralph
Lauren’s]
earlier trade marks. I do not think that people exposed to the use of
the applicant’s mark would notice that it contained
the word POLO
without also noticing that it contained the words ROYAL BERKSHIRE and
CLUB. The message of the mark comes from the
words in combination and
that is not something that I would expect people to overlook or
ignore in the ordinary way of things.
The applicant’s
mark would naturally be understood to represent that the ROYAL
BERKSHIRE POLO CLUB was directly or indirectly responsible
for the
goods to which it was applied. The presence of the numeral 10 in the
applicant’s mark adds to the individuality of the
mark (whether or
not it is appreciated that 10 is the highest handicap a polo player
can have). Abbreviations and approximations
would, in my view, be
likely to centre on the words ROYAL BERKSHIRE because they contribute
more than the other words to the identification
of the club named in
the mark.
The word POLO
functions adjectivally in the context of the applicant’s mark
whereas [Ralph Lauren’s] earlier trade mark registration
envisaged
use of the word POLO in a manner that would, most likely, be
perceived as a noun and the resulting differences of perception
may
be sufficient to preclude a likelihood of confusion . . . In my view
the semantic content of the marks in issue is (and was at
the
relevant date) insufficiently similar or analogous to give rise to
the mistaken belief that POLO brand toiletries and ROYAL BERKSHIRE
POLO CLUB toiletries come from the same undertaking or
economically-linked undertakings.’
[36]
What distinguishes the
10
Royal Berkshire Polo Club Trade Mark
matter
from the present is that here the message of the appellant’s mark
comes exclusively from the word POLO or the pictorial
devices. There
is no additional element, such as the 10 or Royal Berkshire in that
case, that captures its distinctiveness. Nothing
in the word POLO or
the pictorial devices would naturally cause it to be understood to
represent that the appellant was directly
or indirectly responsible
for the goods to which it was applied. The essence of a trade mark
has always been a badge of origin or
source. It indicates a trade
source: a connection in the course of trade between the goods and
proprietor of the mark.
[27]
As
Lord Nicholls explained in
Scandecor
Developments AB v Scandecor Marketing AV & Others
:
‘
A
trade mark is a badge of origin or source. The function of a trade
mark is to distinguish goods having one business source from
goods
having a different business source. It must be “distinctive”.
That is to say, it must be recognisable by a buyer of goods
to which
it has been affixed as indicating that they are of the same origin as
other goods which bear the mark and whose quality
has engendered
goodwill. . . .’
[28]
[37] A
disquieting feature of this case is that despite a record in excess
of 2000 pages we have not been told how, precisely
when or why the
appellants fixed on the marks. What we do know is that because of the
political climate in this country, as an American
company, Ralph
Lauren would have been under a number of financial, political and
legislative constraints that precluded expansion
into South Africa.
Importantly, although the applicant’s marks were held not to be
infringing in
10 Royal Berkshire Polo Club Trade Mark
, it
was accepted that:
‘
. . . [Ralph
Lauren’s] trade marks enjoyed a high degree of recognition and
popularity among purchasers of toiletries at the date
of the
application for registration (August 4, 1995). The evidence also
suggests that [Ralph Lauren] was at that date unique among
suppliers
of toiletries in marketing its products under and by reference to the
word POLO. It had a long history of using the word
POLO with graphics
linking it to the game of the same name. I think it is clear that in
August 1995 the average consumer would naturally
have expected POLO
brand toiletries to come directly or indirectly from one and the same
undertaking (i.e. [Ralph Lauren]).’
[38] The
appellants must therefore surely have recognised the value and
attractiveness of the trade marks and the association
of their marks
with Ralph Lauren, which they no doubt appreciated were well-known.
The Ralph Lauren Corporation, it bears noting,
was originally founded
in 1967 by Ralph Lauren. Drawing on his interest in sport, he named
his first full line of menswear ‘POLO’
in 1968. In 1971, Ralph
Lauren launched a line of tailored shirts for women, which introduced
the polo player emblem that appeared
on the shirt cuff. In 1978, the
first Ralph Lauren fragrances were launched, with the men’s cologne
named POLO. They entered the
European market and went international
in 1981 with the first freestanding store in New Bond Street in the
West End of London. On
12 June 1997, the company became a public
traded company on the New York Stock Exchange.
[39]
Before turning from this issue, one aspect remains: In his judgment
(which I have read in draft), Schippers JA appears
to place great
store by the approach, reasoning and conclusion adopted in
Anabi
Blanga v EUIPO — Polo/Lauren (HPC POLO)
(
Blanga
).
[29]
Neither party relied on that judgment. They may well have had good
reason for not doing so.
[30]
In that matter, the General Court of the European Union (GC) ruled on
20 June 2018, that the trade mark ‘POLO’ of Ralph
Lauren’s
eponymic fashion brand is indeed so famous that it requires broader
legal protection against similar trade marks.
[40]
In
Blanga
,
the applicant, Mr Gidon Anabi Blanga, a resident of Mexico, had filed
an European Union (EU) trade mark with the European Union
Intellectual Property Office (EUIPO), for the word sign HPC
POLO. Ralph Lauren filed a notice of opposition, based in particular
on the earlier EU word mark ‘POLO’. EUIPO’s Opposition Division
upheld the opposition, after which Mr Blanga filed a notice
of
appeal, which was dismissed by First Board of Appeal of EUIPO. Mr
Blanga then turned to the General Court of the European Union
(GC),
seeking the annulment of the Board of Appeal’s decision.
[41] The
GC upheld the findings of the Board of Appeal (which were not
disputed) that: first, the relevant public, was
the public at large
located in the European Union, with an average degree of
attentiveness; and, second, the goods were identical.
It also agreed
with the Board of Appeal’s conclusion that the signs HPC POLO and
POLO were visually, phonetically and conceptually
similar to an
average degree, and that the Board had correctly taken the mark
applied for into consideration as a whole, including
its element,
‘HPC’. (Mr Blanga had not claimed that this element, when
combined with the element ‘POLO’, results in a sign
the overall
meaning of which is completely different to that of the latter
element, taken alone).
[42] In
the context of an examination of the similarity of the marks in
issue, namely the applicant’s ‘HPC POLO’
mark and the Ralph
Lauren POLO mark,
Blanga
held that there was the likelihood of
confusion on the part of the relevant public and a trade mark, such
as Ralph Lauren’s ‘POLO’,
‘with a highly distinctive
character, either intrinsically or because of the reputation they
possess on the market, enjoy broader
protection than marks with a
less distinctive character’. It was accordingly accepted that the
marks were visually, phonetically
and conceptually similar on account
of the common element ‘polo’ and that the element ‘hpc’ was
not sufficient to introduce
differences neutralising that common
element. Here, the appellant’s marks have no additional element,
such as the ‘HPC’ in
that case. There is thus nothing to
distinguish the marks of the appellant from those of Ralph Lauren.
Leaving aside the fact that
in the one, the pony faces right and, in
the other, left (which as I have sought to show is a distinction
without a difference),
the marks are to all intents and purposes
identical.
[43] If
it is accepted, as I believe that it must be, that the marks are
identical then, so it seems to me, the real question
in this case is
whether the public might believe that the goods of the appellant and
those of Ralph Lauren come from the same undertaking
or
economically-linked undertakings. For, as it was stated in
Royal
County of Berkshire Polo Club
:
‘
According to
settled case-law, the risk that the public might believe that the
goods or services in question come from the same undertaking
or from
economically-linked undertakings constitutes a likelihood of
confusion.’
[31]
This accords with
our approach.
[32]
This is
ultimately a matter of impression; the perception of the relevant
customer, and not the intellectual analysis of the trade
mark
lawyer.
[33]
Thus, even were it
to be accepted in the appellant’s favour that there is still a
valid agreement in place (the effect of which
‘is to give the
appellant free rein in the field of clothing and similar items, while
leaving Ralph Lauren to import and sell its
brand of cosmetics and
skincare products’), that hardly assists the appellant. This is
because it must be looked at through the
eyes of the reasonable and
sensible consumer to determine what impression would be given. It
follows that I cannot agree with the
conclusion that ‘it matters
not that they [customers] think that they are buying from a
well-known US fashion house’.
[34]
[44] It
may also be as well to remind ourselves, as pointed out in
Beecham
Group Plc v Triomed (Pty) Ltd,
that
ours is a South African statute, which must ‘be interpreted and
applied in the light of our law and circumstances. Local policy
considerations may differ from those applicable in Europe. The
application of rules remains, even in Europe, a matter for local
Courts
and they differ occasionally amongst themselves’.
[35]
In a similar vein, it was stated by this Court in
Laugh
It Off Promotions CC v South African Breweries International
:
‘
Although reliance
will be placed in the course of this judgment on foreign case law it
must be understood that it is done principally
in order to
illustrate or to compare. The different statutory setting of all
these cases must always be kept in mind. It is
also not suggested
that the outcome in those cases would necessarily have been the
same had the case been decided under our
legislation and in our
social context’.
[36]
[45]
The basic purpose of
a trade mark is the same in any national economic system – it
is a guarantee of commercial origin.
[37]
As
Mr Cummings correctly pointed out:
‘
There is no
discernible difference in the origin of the products (except if one
accepts that
the POLO PONY DEVICE pointing right rather than left is distinctive .
. . ) and I have little doubt that the majority
of the South African
public does not know that these products originate from different
parties.’
Thus,
in
adopting visually similar elements, the appellant appears to have
been intent on capturing the distinctive character of the Ralph
Lauren marks. In my view the reasonable and sensible consumers in
this country will not be aware that: (i) there is in existence
an
agreement between Ralph Lauren and the appellant, which gives ‘the
appellant free rein in the field of clothing and similar
items, while
leaving Ralph Lauren to import and sell its brand of cosmetics and
skincare products’
or
(ii) that the goods issued as vendible goods under the aegis of the
appellant as the proprietor of its trade marks have no connection
whatsoever with Ralph Lauren or the Ralph Lauren fashion brand.
It
follows that the manner in which the appellant has made use of its
various POLO and POLO PONY & PLAYER device marks has been
such
that members of the public are likely to be confused or deceived as
to whether the marks used by the appellant in relation to
the goods
sold by it and/or services offered by it are associated with that of
Ralph Lauren or
vice
versa
.
[46]
I accordingly agree with the high court’s conclusion on the s
10(13) leg of the case. That, ordinarily at any rate,
would render it
unnecessary for me to enter into the other grounds of attack.
However, given the divergence of view
amongst
us, it may be desirable for me to record (albeit by no means
comprehensively) why I would probably be inclined to hold against
the
appellant on the other grounds as well.
[47] The
respondent sought the cancellation of the mark POLO simpliciter or
the mark POLO with the addition of a simple
device (such as a simple
stripe device) in classes 9, 18, 25 and 28 in terms of s 24 read with
ss 10(2)
(a)
,
(b)
and
(c)
.
[48]
Section 10(2)
(a)
bars the continued registration of a mark which ‘is not capable of
distinguishing within the meaning of section 9’. What is required
is that the mark must be capable of distinguishing the goods or
services of the person in respect of which it is registered, or
proposed
to be registered, from the goods or services of another
person, either generally, or where the trade mark is registered or
proposed
to be registered, subject to limitations, in relation to use
within those limitations.
[38]
A mark that consists merely of words descriptive of goods or services
in a particular class, is not inherently capable of distinguishing
the goods or services of a particular person in that class.
[39]
[49] It
was contended that as a result of the general public’s
understanding of the word POLO, these marks cannot fulfil
the
function of a trade mark. The relevant question is whether the
perceptions and recollections of the mark would trigger the mind
of
the average consumer of the specified goods or services to be origin
specific or origin neutral.
[40]
[50] A
word, to be distinctive of a person’s goods must, generally
speaking, be incapable of application to the goods
of anyone
else.
[41]
The word ‘polo’ is defined in the Merriam-Webster Dictionary with
reference to the sport of polo, as well as types of clothing,
such as
‘polo shirt’, ‘polo coat’ and ‘polo neck’. The dictionary
definitions are an indication of how members of the
public will
understand the word. An ordinary member of the public is not likely
to associate this word exclusively with one entity.
The respondent
adduced evidence to demonstrate that there are several clothing
brands that describe items in their lines of clothing
with reference
to the word ‘polo’. The word polo is also used in many
specifications of goods to describe types of clothing in
respect of
which registration of a trade mark is sought. In addition, the word
‘polo’ forms part of other trade marks applied
to clothing
available in the South African market, alongside the appellant’s
goods, including the marks SANTA MONICA POLO CLUB
and LA MARTINA
TRADICION DEL POLO ARGENTINO.
[51]
These instances of use illustrate that to the public the word ‘polo’
is in fact not capable of fulfilling the
function of a trade mark and
in the mind of the consumer, the mark is not exclusively associated
with the appellant. The evidence
thus shows that the word ‘polo’
has a universal, ordinary meaning in respect of clothing, fashion
items and related goods, which
is equally capable of application to
the goods of other traders, as evidenced by: (a) the dictionary
definitions of the word; (b)
the wide use made in the fashion
industry of the mark; and, (c) other proprietors of trade marks
incorporating the word in relation
to their fashion.
[52]
Unlike
s 10(2)
(a)
, which
is the counterpart of s 9, s 10(2)
(b)
is not concerned with distinctiveness or its loss.
The
application in terms of s 10(2)
(b)
was on the basis that each of the marks consists exclusively of a
sign indication which may serve in trade to designate the kind,
intended purpose or other characteristics of the goods to which these
trade mark registrations relate.
The
prohibition in this subsection is not directed at protecting trade
mark use only but goes wider.
[42]
It has been said that the provision serves a public interest
permitting all to use such descriptive signs freely by preventing
them
from being reserved to one undertaking alone because they have
been registered as trade marks.
[43]
[53] As
emerges from what has already been said, the word ‘polo’
constitutes a generic description of the goods to
which those trade
registrations relate and may serve to designate the kind, quality,
quantity, intended purpose, value or other characteristics
of such
goods or services.
[44]
Use of the word ‘polo’ in respect of clothing cannot, without
more, render the trade mark capable of distinguishing. The addition
of the depiction of a polo player on a polo pony only serves to
perpetuate the concept of the sport of polo. The respondent adduced
the evidence of the managing director of the South African Polo
Association (SAPA) that related not just to the sport of polo in
the
country, but also the use of the mark South African Polo Association
in relation to various branded merchandise. SAPA is the
administrative controlling body of the sport in South Africa. All
clubs in the country affiliate through their provincial associations
to SAPA which, in turn, is affiliated to the two administrative world
bodies of polo.
[54]
Polo, generally described as the ‘Game of Kings’, is believed to
be over 2000 years old. Although initially the
province of the
British cavalry regiments, the infantry is credited with starting the
game in this country. The first game is recorded
to have taken place
in 1874 at the Parade Ground in Cape Town. SAPA has a constitution
that was first adopted in 1905, making it
one of the oldest sporting
bodies in the country. It uses the following trade mark, which
includes the words ‘SOUTH AFRICAN POLO
ASSOCIATION’ and the
depiction of a polo player on a polo pony with a raised mallet:
SAPA also makes use
of an abbreviated version of the mark that includes the words ‘SA
POLO’ and a depiction of the polo player
and pony device. The South
African national team wears the mark on its apparel.
[55]
Section 10(2)
(c)
is intended to prevent signs which have come
into general use from being monopolised. The respondent provided
evidence that it is
an established trend that sporting bodies in
various sporting codes merchandise their brands, not only in respect
of clothing suitable
for the relevant sport, but also beyond that to
items for the supporters of such sport. In that event, the name of
the sport is still
used as part of the name and/or trade mark of the
relevant sports body in respect of those merchandised goods.
[56]
Accordingly, the use of the name of a sport in the appellant’s
trade mark registrations for POLO simpliciter consist
exclusively of
a sign or indication that has become customary in the current
language or in the
bona fide
and established practice of the
trade. Apart from the everyday clothing items already alluded to with
reference to the word ‘polo’,
there is a whole range of clothing
and equipment associated with the sport of polo, including a helmet,
riding boots, riding gear,
saddlery, etc. Indeed, licensing and
commercial and brand marketing is now an essential feature of sport.
It follows that the appellant
cannot claim a monopoly.
[57]
There are indeed many cases in which it has been said that it is not
the purpose of trade marks or copyright to enable
people to secure
monopolies on the commons of the English language.
[45]
‘Polo’ is ‘not a coined or invented word, inherently adapted to
distinguish the goods to which it relates’.
[46]
It appears to have its origins in the word ‘pulu’ from Balti, a
Tibetan language of Kashmir and can be traced back to the 19
th
Century.
[47]
In
addition to what has been stated earlier, Polo is more fully defined
as:
‘
1. a game similar
to hockey played on horseback using long-handled mallets (polo
sticks) and a wooden ball
2. any of several
similar games such as one played on bicycles
3. short for water
polo
4.
Also called:
polo neck
a. a collar on a
garment, worn rolled over to fit closely round the neck
b. a garment, esp a
sweater, with such a collar.’
[48]
And, ‘polo
shirt’.
[49]
Popular collocations
include: field; ground, player, pony, match and team.
[50]
[58] In
upholding an attack under ss 10(2)
(b)
and
(c)
of the Act in relation to the mark, ‘THE LOOK’, it was stated in
Pepkor
Retail
:
‘
The mark has no
figurative element. Its words have a generic descriptive meaning in
general use in the industry. Truworths can have
no monopoly over
these words. On the evidence, the mark consists exclusively of words
that serve to designate the kind of goods in
the trade or at least a
characteristic thereof, namely fashionable clothes or outfits. The
evidence similarly established that the
mark consists exclusively of
words which have become customary in the current language of the
trade.’
[51]
Likewise, all of
those considerations apply here as well.
[59] The
further contention advanced on behalf of the appellant is that at the
date of the counter-application, the mark
had as a result of the use
thereof nevertheless become capable of distinguishing the goods of
the appellant. Distinctiveness may
be acquired within the meaning of
the proviso to s 10(2) of the Act, if, as a result of the use of
a mark, it is recognised
by the average consumer in the industry as
belonging to a particular person.
[52]
But, here there is nothing in the manner of use of the marks that
would indicate to the average consumer that the marks indeed belong
to the appellant. Quite the contrary, as the evidence seems to make
plain, the appellant has been careful to avoid any such connection.
It chose instead to trade in the same marketplace as Ralph Lauren,
with goods bearing marks that were largely indistinguishable from
those of the latter. It must follow that absent a connection in the
course of trade between the goods and the appellant (as the
proprietor
of the marks) and for so long as reasonable consumers
continue to associate the goods of the appellant with the iconic
Ralph Lauren
fashion brand, the fact that there has been use of the
marks (however extensive and for however long) can hardly assist the
appellant.
In
any event, use does not equal distinctiveness. The use of a mark in
itself will not render it capable of distinguishing. The question
is
whether the use resulted in distinctiveness.
[53]
[60] In
First
National Bank of Southern Africa Ltd v Barclays Bank Plc and
Another
,
[54]
which was concerned with applications for the registration of the
trade marks ‘Premier’ and ‘Premier Package’ in relation
to
cheques and banking and credit card services, Harms JA quoted the
following from
British
Sugar PLC v James Robertson & Sons Ltd
[1996]
RPC 281
(ChD)
at 302 (per Jacob J):
‘
I have already
described the evidence used to support the original registration. It
was really no more than evidence of use. Now it
is all too easy to be
beguiled by such evidence. There is an unspoken and illogical
assumption that “use equals distinctiveness”.
The illogicality
can be seen from an example: no matter how much use a manufacturer
made of the word “Soap” as a purported trade
mark for soap the
word would not be distinctive of his goods. He could use fancy
lettering as much as he liked, whatever he did would
not turn the
word into a trade mark. Again, a manufacturer may coin a new word for
a new product and be able to show massive use
by him and him alone of
that word for the product. Nonetheless the word is apt to be the name
of the product, not a trade mark. Examples
from old well-known cases
of this sort of thing abound. The
Shredded
Wheat
saga
is a good example: the Canadian case is
The
Canadian Shredded Wheat Co Ltd v Kellogg Co of Canada Ltd
in
the Privy Council and the United Kingdom case
The
Shredded Wheat Co Ltd v Kellogg Co of Great Britain Ltd
in
the House of Lords. In the former case Lord Russell said.
“
A word or words
to be really distinctive of a person’s goods must generally
speaking be incapable of application to the goods of
anyone else.”.’
[61]
Harms JA added:
‘
It is precisely
because a common laudatory word is naturally capable of application
to the goods of any trader that one must be careful
before concluding
that merely its use, however substantial, has displaced its common
meaning and has come to denote the mark of a
particular trader. This
is all the more so when the mark has been used in conjunction with
what is obviously taken as a trade mark.’
[55]
[62] It
is indeed so that the appellant adduced a great deal of evidence, but
very little, if any, relevant evidence,
reflecting the public
perception of the mark in the market place. Some reliance was sought
to be placed on what was described as
a ‘Generation Next’ survey
conducted by the
Sunday Times
, a weekly newspaper, in
conjunction with HDI Youth Marketeers, an agency that allegedly ‘runs
campaigns and builds platforms for
both youth and brands’. The CEO
of the latter stated that:
‘
HDI’s survey,
which was conducted administering face-to-face written questionnaires
in 8 provinces during January to March 2018.
The youth from the
Northern Cape province were excluded. The sample size for the survey
was 7019 persons for the polling data and
5225 for the lifestyle
data’.
Little else is known
about the design of the survey or methodology employed. That aside,
of the ten brands in the part of the survey
that related to ‘Coolest
Clothing Brand by Age’, ‘Polo’ ranked last. All but one of the
other nine namely, Redbat (which
is owned by the local Foschini
Retail Fashion Group (Pty) Ltd and ranked fifth), are international
fashion brands. In order of ranking,
they are: Adidas, Nike, Gucci,
Puma, Lacoste, Guess, Jordan and Versace. There is no evidence
however that the ‘Polo’ brand referred
to in the survey is indeed
a reference to the goods of the appellant and not that of Ralph
Lauren.
[63] For
the rest, the bulk of the evidence indicated no more than that the
mark had been put to use and emanated from
witnesses who are not
qualified to speak for the average consumer in the industry. The
evidence emphasised the substantial combined
sales by the appellant.
But, as already pointed out, use does not
equal
distinctiveness;
the
question being whether the use resulted in distinctiveness. Were such
evidence available, the appellant would no doubt have adduced
it. The
lack of evidence that the mark acquired distinctiveness through use
is telling and must indubitably count against the
appellant.
[64]
Turning to the question of non-use: It seems to be the habit of the
appellant generally to file trade mark applications
in classes 9, 18,
24, 25 and 35. Use by a proprietor of a trade mark is indeed a
central and essential element of ownership. A trader
registers a
trade mark primarily not in order to prevent others from using it but
in order to use it herself.
[56]
The high court held that because of non-use of the trade marks by the
appellant, the respondent was entitled to an order expunging
those
registrations in terms of ss 27(1)
(a)
or
(b)
of the Act.
[57]
[65] The
appellant appears to approach the appeal on the basis that the
different trade marks form part of a unitary brand,
which deserves
protection, with the result (so the suggestion seems to go) that each
separate trade mark registration that forms
part of the brand
(irrespective of each separate mark’s validity) is entitled to
protection. This approach was adopted for the
first time by the
appellant at the hearing of the application for leave to appeal
before the high court. Prior to that, the appellant
sought to
establish use of each mark, the subject of an attack, separately. The
appellant now seeks to avoid the need to do so. No
explanation is
advanced for this significant change of stance or why it is even
permissible or open to it to do so for the first
time on appeal.
[66] It
is necessary at this juncture to pass certain observations about the
record because, so it seems to me, the state
of the record may impact
in a direct and substantial way on this enquiry. It may also perhaps
render explicable the change of stance
on the part of the appellant.
The record consists of thirteen volumes; eleven, running to 2064
pages, styled the ‘main record’
and two of 392 pages, the ‘core
bundle’. In the preparation of the record no regard was paid to the
rules of this Court. To the
extent that there was any observance of
the rules, it was purely fortuitous and not by design. Portions
considered relevant were
simply lifted from the main record and
incorporated into the core bundle. This pertains to both the
affidavits as well as the annexures.
Both are compiled in a
completely haphazard and incoherent fashion. Some portions of
documents are to be found in the core bundle
and other portions of
the same document in the main record. Why this is so has not been
explained.
[67]
Annexures are dispersed randomly across both records. How it was
divined what should be incorporated where remains
a complete mystery.
The result is an indigestible mass of paper. Navigating through the
mass with any coherence is well-nigh impossible.
To meaningfully
traverse the evidence, requires a constant back and forth between the
core and main bundles. Often enough one searches,
but searches in
vain, for the relevant annexures. Matters are not made any the easier
by the woefully inadequate cross referencing.
It should not be for
the respondent in this matter to trawl through lengthy annexures and
to speculate on the possible relevance
of facts contained
therein.
[58]
Nor, should it be expected of this Court to do so.
[68] No
doubt, in an attempt to escape the consequences of what can only be
described as a chaotic record, reference is
made to a ‘Trade Mark
Matrix’ in the heads of argument filed on behalf of the appellant.
It is said:
‘
In view of the
considerable detail involved in relation to these trade marks, and in
order to facilitate the hearing and to identify
the evidence of use
of the POLO trade marks . . . This matrix indicates the references to
the use that has been made of each POLO
trade mark in issue. The
yellow highlighting indicates the use of the POLO trade marks in the
relevant five year period . . . The
grey highlighting indicates the
use of the POLO trade marks outside that period.’
[69] In
addition, the appellant also seeks to rely on a ‘graphic diagram of
the associated registrations’ and what
it calls an ‘Association
Diagram’. The use to which these are sought to be put, is explained
as follows in the appellant’s
heads of argument:
‘
Of particular
relevance is trade mark registration . . . [device], which has not
been used in the relevant five year period. However,
with reference
to the Association Diagram. . . , it will be seen that this
registration is directly or indirectly associated with
a host of
other . . . device trade mark registrations, and we submit that where
use of these other trademark registrations has been
proved . . . such
use should be considered equivalent to use of this . . . device.’
[70] The
thrust of the appellant’s approach thus appears to be a reliance on
use of one mark as use of another mark
as long as each is within the
brand. But, this was not the approach taken at the hearing of the
counter application before the high
court. There would seem to be no
merit in the appellant’s reliance on a unitary brand made up of a
combination of a separate and
disparate set of rights. What the
appellant’s contention seems to boil down to is that it should be
allowed a monopoly in relation
to a concept, namely the sport of
polo.
[71]
What was actually required of the appellant is an analysis of the
evidence relating, separately, to each mark and
whether the use
relied upon is actual use of the mark itself or use by association
with another registered or similar mark. If the
latter, the specific
mark or marks relied on for associated use should have been
identified, and their actual use established. It
would have been
necessary for the purpose of this exercise to have regard to all the
trade marks as depicted on the Association Diagram
that are said to
be ‘directly or indirectly associated with one another’. It would
then further have been necessary to analyse
the evidence relied on in
order to establish the ‘use’ of each of them in support of the
appellant’s case on ‘use by association’.
This the appellant
has failed to do. What is more, all of the associated marks are
themselves the subject of an attack on one or
more grounds. If the
attack on any one of those grounds in respect of any of the
associated marks is good then reliance can hardly
be placed on the
fact of the association.
[72] In
my view, even with the aid of the Trade Mark Matrix, there can be no
escape for the appellant from the pleaded
case and the case sought to
be advanced on the record before the high court. In motion
proceedings, the affidavits constitute both
the pleadings and the
evidence.
[59]
The issues and averments in support of the appellant’s case should
thus appear clearly therefrom. The affidavits serve, not just
to
define the issues between the parties, but also to place the
essential evidence before the court.
[60]
In a matter such as this, it is for the parties to set out and define
the nature of their dispute in the affidavits and for the court
to
adjudicate the issues as defined by the parties.
[61]
With that perambulation I turn to the non-use enquiry.
[73]
There is considerable overlap between the trade mark registrations
that are the subject of the counter application
in terms of s
27(1)
(a)
and s 27(1)
(b)
. According to the respondent,
insofar as the former is concerned, having had regard to the nature
of the appellant’s business over
the four years preceding the
counter application, it had established that the appellant’s
business was limited to the branding
and selling of clothing,
footwear, headgear, eyewear, bags, luggage, wallets, purses and bed
linen. Those being the only goods and
services in respect of which
the appellant could seriously be said to have had an intention to
make use of its trade marks. To that
extent, the respondent then
sought the cancellation in terms of s 27(1)
(a)
of the
appellant’s trade marks falling outside the scope of its interest.
[74] In
addition, the appellant had historically used the word mark POLO and
the depiction of a single polo player on
a single polo pony. The
application for registration of the DOUBLE POLO PONY & PLAYER
device appeared sufficiently incongruous
to raise doubt as to the
appellant’s intention to make use of the latter. In other words, it
appears incongruous that the appellant
would choose to depart from
the POLO and single polo player on a single polo pony trade marks
around which, on its own version, its
entire brand has been built.
These circumstances, so the submission goes, is sufficient to justify
the conclusion, at least on a
prima facie
basis, that the
appellant did not have the requisite intention to make use of each of
the marks concerned in relation to the goods
and/or services for
which they are registered.
[75] The
relevant period in which the appellant failed to make use of the
various trade marks, the subject of the attack
under s 27(1)
(b)
,
is 2 April 2013 to 2 April 2018. What must be considered is
whether: (a) the marks were used during that period; (b) the
marks
were used by the proprietor or a permitted user; (c) the use was
bona
fide
; and (d) the use was in relation to all of the goods covered
by the trade mark registration under attack?
[76] As
it was put in
Truworths Ltd
:
‘
Bona
fide use of a trade mark is use in relation to goods or services of
the type in respect of which the mark is registered. The
use must be
use as a trade mark, for the commercial purposes that trade mark
registration exists to protect. It must be use in the
course of trade
and for the purpose of establishing, creating or promoting trade in
the goods to which the mark is attached. The
use must be
genuine. Genuineness is to be contrasted with use that is merely
token, but the line is a fine one, because the
use may be
minimal. Whether use of the mark was bona fide is a question to
be determined on the facts of the particular case.’
[62]
[77]
Thus, although the onus is on the appellant
[63]
to prove relevant use (meaning use by a proprietor or
bona
fide
use by a third party with the licence of the proprietor (permitted
use)), it chose not to deal with the evidence relevant to each
specific trade mark registration. Instead, before this Court, it
sought to rely on its Trade Mark Matrix, all too frequently in a
most
tangential and confusing manner. What exactly a court, particularly
one sitting on appeal, is supposed to make of this in these
circumstances, is far from clear.
[78] In
proceedings of this nature, a proprietor, who bears the onus of
proving relevant use, should be expected
to have comprehensive
and peculiar knowledge of that fact if it has occurred. It should
thus be expected that ‘clear and compelling
evidence to that
effect’ will be advanced. The appellant therefore ought not ‘to
expect that the evidential burden will be discharged
by allegations
that are sparse, ambiguous, or lacking in conviction’.
[64]
The fact of the matter is that in relation to each of the trade
marks, the subject of an attack under this section, there is no clear
evidence that the alleged use occurred during the relevant period,
and the surrounding circumstances revealed in the affidavits provide
insufficient basis for inferring that this must have occurred.
[79] The
high court reasoned:
‘
Mr Ginsburg SC,
who appeared with Ms Cirone on behalf of the [appellant] was at pains
to draw a correlation between each specific
registered mark, an
invoice or a catalogue or photograph. No clear and unambiguous proof
could be indicated along the aforementioned
approach and Mr Ginsburg
was compelled to concede that it eventually boils down to an
inference to be drawn in each instance. The
obvious question then
arises, is it the only inference to be drawn in each instance. I am
not so convinced. It is within the [appellant’s]
clear, peculiar
and comprehensive knowledge whether the goods, the marks, the
invoice, the photograph and/or catalogue indeed correlated.
The
[appellant] was compelled to follow a tedious and time-consuming
exercise to prove use, whether
bona
fide
or otherwise, but failed to do so and was driven to concede that
inferential determinations are at the fore. It does not muster the
test. The concession puts paid to the question to be determined.’
Even accepting that
the high court may have misconceived the test, I would hesitate to
depart from its assessment that the evidence
adduced by the appellant
falls far short of what one would ordinarily expect in the
circumstances. Nor can the high court be faulted
in its conclusion
that given the shortcomings in the evidence, the case sought to be
advanced on behalf of the appellant rested,
in the main, on
inferential reasoning. This is borne out by the approach adopted by
the appellant on appeal. It goes a long way to
explaining the change
of stance and why the appellant has chosen on appeal to advance a
case based on a unitary brand. However, it
is not open to a court to
reason by way of an inference upon an inference. Inferences must rest
upon a proper factual foundation.
[80]
Generally, the appellant relies, to a large extent, on what it
alleges to be permitted use of its trade marks by
a variety of
entities in relation to different goods, and for different time
periods. The appellant further relies on photographs
that it claims
constitute evidence of use of some of the trade marks in relation to
the relevant goods and services. Most of these
photographs are either
undated or were taken outside the relevant period and are therefore
irrelevant to the attack under s 27(1).
The appellant also
relies on copies of invoices issued by permitted users, which it
claims evidence the sale of goods bearing the
relevant trade marks in
question to third parties. As the respondent correctly points out,
the invoices in and of themselves, do
not constitute clear and
unambiguous use of the trade marks concerned and a proper analysis of
the evidence on which the appellant
relies (which has been
comprehensively undertaken in the heads of argument filed on behalf
of the respondent), does not show requisite
use of the marks.
[81] In
my view, the appellant’s allegations are lacking in detail of the
kind one would expect to be within the knowledge
of a trade mark
proprietor (either from its own records or those of a licensee). More
often than not, the appellant has provided
no detail as to the item
codes appearing on the invoices and to what extent it can be said
that the description assigned to the goods
sold under the particular
item codes is correct or reflective of the trade marks used in
relation to the goods sold. It cannot therefore
be said, without
more, that the invoices in all instances constitute evidence of use
of the marks in question. This is especially
so as the appellant on
occasion relies on the same invoices and therefore the same item
codes to claim use of more than one trade
mark.
[82]
Moreover, as the respondent demonstrates in its heads of argument,
the reliance on certain parts of the evidence
is often misplaced.
Illustrative of this are the first two items on the Trade Mark
Matrix. The first is trade mark registration no
2009/26482 POLO in
class 6, being one of the marks in respect of which cancellation was
sought and granted under s 27(1)
(a)
of the Act. However, the
affidavit evidence, pictorial evidence, invoices and spreadsheets
alluded to all relate to trade mark no
2009/2648, a device mark (the
POLO PONY & PLAYER mark), not the word mark under discussion.
[83] The
second item is trade mark registration no 1987/01937 POLO in class 9,
in respect of which cancellation was sought
in terms of s 27(1)
(a)
or
(b)
. The ‘affidavit evidence’ relied upon, does not
specifically refer to this particular trade mark. The ‘pictorial
evidence’
is described in the evidence as ‘examples of how the
POLO marks are displayed and affixed to goods in classes 18 and 25’.
The
‘invoices/spreadsheets’ are said to depict either ‘the use
of the POLO mark in respect of class 28 goods’ or ‘use of the
POLO and POLO & PLAYER Device mark’ in class 6, not the POLO
mark in question in class 9.
[84]
Given the clear requirement of the section that use be demonstrated
during a specific period, even with the aid of
the Trade Mark Matrix,
as the analysis in relation to the first two items shows, the
evidence relied upon generally falls far short
of meeting the
requirement. The confusion is compounded when regard is had to the
appellant’s approach to proof of use by ‘association’.
I have
confined myself to the first two items. In the respondent’s heads
of argument filed with this Court, a detailed analysis
has been
undertaken of the evidence relied upon by the appellant in the Trade
Mark Matrix in respect of each of the other trade marks,
the subject
of the s 27(1) attack. In my view, that analysis demonstrates that
the appellant has failed to overcome the onus of establishing
a
defence to the attack under s 27(1)
(a)
and
(b).
[85] The
circumstances of this case are such that the failure to deal with the
evidence relevant to each specific trade
mark registration is fatal
to the appellant. The information was peculiarly within its
knowledge. It ought to have been a relatively
straight forward
exercise for it to have placed the requisite evidence before the
court. ‘Whatever corroborating evidence might
or might not be
required in proceedings of this kind, what is called for, at the
least, is clear and unambiguous factual evidence
that brings the
matter within the terms of the section’.
[65]
The conclusion ought therefore to be that in each instance the
appellant has not discharged the onus on it and the high court’s
finding were correct.
[86] In
the result, I would dismiss the appeal with costs, including those of
two counsel.
V M PONNAN
JUDGE OF APPEAL
Annexure A
Class
Sections of
the Act in terms of which the trade mark has been challenged
Representation
of the mark & trade mark number
Registered
specification
6
10(13) and
27(1)(a)
POLO
2009/26482
Common metals and
their alloys; metal building materials; transportable buildings of
metal; materials of metal for railway tracks;
non-electric cables
and wires of common metal; ironmongery, small items of metal
hardware; pipes and tubes of metal; safes;
goods of common metal
not included in other class; ores; key rings.
9
10(2)(a) - (c),
10(13) and 27(1)(a)
POLO
1987/01937
Scientific
apparatus and instruments; photographic and cinematographic
apparatus and instruments; optical apparatus and instruments;
binoculars; opera-glasses, field-glasses, eye pieces, glasses,
spectacles, sun-glasses, sun-visas, sunshades, eye-shades;
protective clothing; apparatus and instruments and equipment for
use in connection with aquatic activities; water sport equipment;
parts, accessories for the aforesaid.
POLO
2003/02681
Scientific
apparatus and instruments; photographic and cinematographic
apparatus and instruments; optical apparatus and instruments;
binoculars; opera-glasses, field-glasses, eye pieces, glasses,
spectacles, sun-glasses, sun-visas, sunshades, eye-shades;
protective clothing; products, apparatus, instruments and
equipment for use in connection with aquatic activities; water
sport equipment; parts, accessories, fittings and components for
the aforementioned all in class 9.
14
10(13) and
27(1)(b)
POLO
1982/06100
Precious metals
and their alloys and goods in precious metals or coated therewith
(except cutlery, forks and spoons); jewellery;
precious stones;
horological and other chronometric instruments.
16
10(13) and
27(1)(a) –(b)
POLO
1982/06101
Paper and paper
articles, cardboard and cardboard articles; printed matter,
newspapers and periodicals, books; book-binding
material;
photographs, stationery, adhesive materials (stationery); artists’
materials, paint brushes; typewriters and office
requisites (other
than furniture); instructional and teaching material (other than
apparatus); playing cards; (printers’)
type and cliches
(stereotype).
POLO
2009/20235
Paper, cardboard
and goods made from these materials, not included in other
classes; printed matter; book binding materials;
photographs;
stationery; adhesives for stationery or household purposes;
artists’ materials, paint brushes; typewriters and
office
requisites (except furniture); instructional and teaching material
(except apparatus); plastic materials for packaging
(not included
in other classes), printers’ type; printing blocks.
18
10(2)(a) –(c),
10(13)
POLO
1982/02863
Leather and
imitations of leather, and articles made from these materials and
not included in other classes; skins, hides; trunks
and travelling
bags; umbrellas, parasols and walking sticks, whips, harness and
saddlery.
20
10(13), 27(1)(b)
POLO
2011/06471
Furniture,
cushions, mirrors, picture frames; goods (not included in other
classes) of wood, cork, reed, cane, wicker, horn,
done, ivory,
whalebone, shell, amber, mother-of-pearl, meerschaum and
substitutes for all these materials, or of plastics.
24
10(13)
POLO
1987/01938
Tissues (piece
goods); bed and table covers; textile articles not included in
other Classes.
24
10(13)
POLO
2003/02682
Tissues (piece
goods); bed and table covers; textile products and articles not
included in other classes.
25
10(2)(a) – (c),
10(13)
POLO
B1976/00659
Shirts.
POLO
1982/02787
Articles of
clothing including footwear.
26
10(13), 27(1)(b)
POLO
1982/06102
Lace and
embroidery; ribbons, press buttons, hooks and eyes; pins and
needles; artificial flowers.
28
10(13), 10(2)(a)
–
(c),27(1)(b)
POLO
1982/06103
Games and
playthings; gymnastic and sporting articles (except clothing);
ornaments and decorations for Christmas trees.
28
10(13), 10(2)(a)
– (c),27(1)(b)
POLO
2013/32408*
Games and
playthings; gymnastic and sporting articles (except clothing);
ornaments and decorations for Christmas trees.
35
10(13)
POLO
2003/02684
Retail, selling,
wholesale, marketing, distribution, export and import services;
advertising; business management; business
administration; office
functions; services ancillary or related to the aforementioned all
in class 35; but excluding all such
services relating to motor
land vehicles and their parts and fittings and services relating
to motor land vehicles.
42
10(13), 27(1)(a)
– (b)
POLO
1984/05447
Manufacturing,
sale, distribution, marketing and merchandising services in this
class; the aforesaid services connected with
clothing and clothing
accessories; but excluding services connected with goods in Class
3.
42
10(13), 27(1)(a)
– (b)
POLO
1994/14433
Retail,
wholesale, selling, marketing, distribution, promotion,
merchandising, import, export and mail order services and services
ancillary to the aforegoing excluding those connected with
clothing, clothing accessories and goods classifying it into class
3 (Schedule III); medical, hygienic and health care services;
scientific and industrial research, development and advisory
services relating to clothing; computer programming.
6
10(13), 27(1)(a)
– (b)
2009/26481
Common metals and
their alloys; metal building materials; transportable buildings of
metal; materials of metal for railway tracks;
non-electric cables
and wires of common metal; ironmongery, small items of metal
hardware; pipes and tubes of metal; safes;
goods of common metal
not included in other classes; ores; key rings.
9
10(13), 27(1)(a)
2014/31832*
14
10(13), 27(1)(b)
2004/03775
Precious metals
and their alloys and goods in precious metals or coated therewith
(except cutlery, forks and spoons); jewellery;
precious stones;
horological and other chronometric instruments, watches.
16
10(13), 27(1)(b)
2009/20234
Paper, cardboard
and goods made from these materials, not included in other
classes; printed matter; book binding materials;
photographs;
stationery; adhesives for stationery or household purposes;
artists’ materials , paint brushes; typewriters
and office
requisites (except furniture); instructional and teaching material
(except apparatus); plastic materials for packaging
(not included
in other classes), printers’ type; printing blocks.
18
10(13)
1988/11678
Leather and
imitations of leather, and articles made from these materials and
not included in other classes; skins, hides; trunks
and travelling
bags; umbrellas, parasols and walking sticks, whips, harness and
saddlery.
20
10(13), 27(1)(b)
2009/22109
Furniture,
cushions, mirrors, picture frames; goods (not included in other
classes) of wood, cork, reed, cane, wicker, horn,
done, ivory,
whalebone, shell, amber, mother-of-pearl, meerschaum and
substitutes for all these materials, or of plastics
24
10(13)
1988/11679
Tissues (piece
goods); bed and table covers; textile articles not included in
other classes.
2009/21684
Textiles and
textile goods, not included in other classes; bed and table
covers, curtains.
25
10(13)
1988/08915
Clothing,
including boots, shoes and slippers; parts and accessories for the
aforegoing.
2010/05609
Clothing,
footwear, headgear.
26
10(13), 27(1)(b)
1988/11680
Lace and
embroidery; ribbons, press buttons, hooks and eyes; pins and
needles; artificial flowers.
28
10(13)
2013/32407*
42
10(13)
1988/11681
Manufacturing,
sale, distribution, marketing and merchandising services in the
class; the aforesaid services connected with
clothing and clothing
accessories.
25
10(13), 27(1)(a)
2013/07082
Clothing,
footgear, headgear.
25
10(13), 27(1)(b)
1
1978/01082
Articles of
clothing including footwear.
18
10(13)
2011/27901
Leather and
imitations of leather, and goods made of these materials and not
included in other classes; animal skins, wallets;
purses; hides;
trunks, handbags and travelling bags; umbrellas, parasols and
walking sticks; whips, harness and saddlery.
25
10(13)
2011/27902
Clothing,
footwear, headgear.
43
10(13)
2011/27904
Services for
providing food and drink, restaurant, diner, pub, tavern, eatery,
coffee bar and fast food; temporary accommodation;
hotel; services
ancillary or related to the aforementioned all in class 43.
25
10(13)
2013/07215
Clothing,
footwear, headgear.
25
10(13)
POLO COMPANY
1985/08368
Articles of
clothing, including boots, shoes and slippers; parts and
accessories for the aforegoing.
25
10(13), 27(1)(b)
1985/08367
Articles of
clothing, including boots, shoes and slippers; parts and
accessories for the aforegoing.
25
10(2)(a),
10(2)(c), 10(13), 27(1)(b)
1981/03857
Shirts.
41
10(13)
2013/23367
Education,
providing of training, entertainment, sporting and cultural
activities.
18
10(13), 27(1)(b)
1985/01834
Leather and
imitations of leather, and articles made from these materials and
not included in other classes; skins; hides; trunks
and travelling
bags; umbrellas, parasols and walking sticks; whips, harness and
saddlery; luggage and luggage craft; bags;
suitcases; briefcases,
wallets and purses; parts and accessories for the aforegoing.
25
10(13), 27(1)(b)
1985/01835
Clothing,
including boots, shoes and slippers; parts and accessories for the
aforegoing.
42
10(13), 27(1)(b)
1985/01836
Import, export,
manufacturing, distribution and marketing services, including but
not limited to the aforesaid services in relation
to leather and
imitations of leather and articles and articles made therefrom or
therewith, skins and hides; trunks and travelling
bags, umbrellas,
parasols and walking sticks; whips, harness and saddlery, luggage
and luggage craft, bags, suitcases briefcases,
wallets and purses,
clothing including boots, shoes and slippers and parts and
accessories for all the aforegoing.
* Represents those
instances where the trade mark registration certificates do not
appear in the record.
Schippers JA
(Makgoka JA and Phatshoane AJA concurring):
[87]
The
appellant, LA Group (Pty) Ltd and the first respondent, Stable
Brands(Pty) Ltd (the respondent), are competitors in retail clothing
and accessories. In May 2018 the appellant applied to the Gauteng
Division of the High Court, Pretoria (the high court), for an
interdict
to restrain, amongst others, the respondent and its
licensor, US Polo Association (USPA), from infringing the appellant’s
POLO
word, and POLO PONY & PLAYER device trade marks (the main
application).
[88]
There
are essentially three main visual and conceptual features that the
POLO trade marks embody, namely: (a) the word POLO; (b) pictorial
devices of single polo players each astride a pony engaged in play
(SINGLE POLO PLAYER devices); and (c) pictorial devices of two
polo
ponies each with polo players astride them engaged in play (DOUBLE
POLO PLAYER devices). These trade marks have been registered
and are
used either on their own or, in the case of the SINGLE POLO PLAYER
devices and the DOUBLE POLO PLAYER devices, often in combination
with
the word mark POLO. The POLO word trade mark has also been registered
and used in combination with the word COMPANY and a STRIPE
device.
[89]
The
respondent opposed the main application and launched a
counter-application to remove all 46 of the appellant’s trade marks
from
the Register of Trade Marks (the register), in terms of s 24
read with ss 10(2)
(a)
,
10(2)
(b)
and 10(2)
(c)
;
and ss 10(13), 27(1)
(a)
and 27(1)
(b)
of
the Trade Marks Act 94 of 1993 (the Act). The registrations generally
challenged were the POLO word and POLO PONY & PLAYER
device trade
marks.
[90]
The
second respondent, the Registrar of Trade Marks, did not participate
in the proceedings below or in this Court. On the day that
the main
application was to be heard in November 2018, the appellant withdrew
it. The respondent persisted in its counter-application,
with
success. The high court (Van der Westhuizen J) made an order
cancelling the appellant’s registered trade marks. The order
was
all encompassing and far-reaching. It directed the removal of
all 46 of the appellant’s well-known trade mark registrations
in
issue on various grounds, namely lack of distinctiveness; non-use for
five years or longer; registration without a genuine intention
to use
coupled with non-use; and likelihood of confusion or deception
arising from the manner in which the trade marks had been used.
[91]
The
appeal is before us with the leave of this Court. The respondent’s
various challenges to the trade marks are considered below.
Removal
under s 24 read with s 10(2)
(a)
[92]
The
attack based on s 24 read with s 10(2)
(a)
of the Act was directed at the following registered trade marks of
the appellant:
(a)
B1976/00659 POLO in class 25;
(b)
1981/03857 POLO (Special Form) in class 25;
(c)
1982/02787 POLO in class 25;
(d)
1982/02863 POLO in class 18;
(e)
1982/06103 POLO in class 28;
(f)
1987/01937 POLO in class 9;
(g)
2003/02681 POLO in class 9; and
(h)
2013/32408 POLO in class 28.
[93]
It is
necessary firstly to address the appellant’s overall approach to
the counter-application based on s 24 read with s 10(2)
(a)
,
(b)
and
(c)
of the Act. For present purposes, s 24 of the Act states that an
interested person may apply to court for the desired relief in the
event of an entry wrongly made in or wrongly remaining on the
register, and the court may make an order removing or varying such
entry.
[94]
The
appellant raised two main arguments. The first was that where removal
of an entry wrongly remaining on the register was sought
and the
entry was validly made, the interested person bore the onus of
showing that circumstances had changed after the original
entry, in
order to demonstrate that the entry was one wrongly remaining on the
register.
[95]
The
argument is unsound. The respondent’s application for removal was
brought on all the grounds in s 24, namely whether the trade
mark
registration was an entry wrongly made in, or wrongly remaining on,
the register, or both. Furthermore, if at the date of the
application
for removal a trade mark factually falls foul of a provision of the
Act that prevents its continued registration, then
it is a mark
wrongly remaining on the register and liable to be removed. This is
regardless of the validity of the mark at the time
of its initial
entry in the register. As was stated by this Court in
Roodezandt
,
[66]
when the validity of a trade mark is formally challenged, the date of
the application for removal is the determining date.
[96]
The
second argument was that certain of the trade marks referred to in
paragraph 92 above, had been registered in part A of the register
under the former Trade Marks Act 62 of 1963 (the 1963 Act) and a
period of seven years had expired from the date of their
registration.
Therefore, so it was argued, the original registration
of these trade marks was immune from attack because they had to be
regarded
as valid in all respects as envisaged in the 1963 Act.
[67]
[97]
Section
70(1) of the Act requires that prior to its commencement, the
validity of the original entry of a mark must be determined
in
accordance with the law in force at the date of the entry. The
Legislature thus intended to preserve existing trade mark rights.
Trade marks registered in part A of the 1963 Act for seven years or
longer when the 1993 Act came into force are protected under
the
deeming provisions of the 1963 Act.
[68]
But it is only the original entry of trade marks registered in part A
for seven years or longer, that is deemed to be valid.
[69]
Section 42 of the 1963 Act does not extend to an application for
removal on the basis that the registration is an entry wrongly
remaining
on the register.
[70]
[98]
In
terms of s 10(2)
(a)
of
the Act, a trade mark which ‘is not capable of distinguishing
within the meaning of s 9’ is liable to be removed from the
register.
Section 9 reads:
‘
(1) In order to
be registrable, a trade mark shall be capable of distinguishing the
goods or services of a person in respect of which
it is registered or
proposed to be registered from the goods or services of another
person either generally or, where the trade mark
is registered or
proposed to be registered subject to limitations, in relation to use
within those limitations.
(2) A mark shall be
considered to be capable of distinguishing within the meaning of
subsection (1) if, at the date of application
for registration, it is
inherently capable of so distinguishing or it is capable of
distinguishing by reason of prior use thereof.’
[71]
[99]
The
respondent sought cancellation in terms of s 10(2)
(a)
of marks consisting of the POLO mark (simpliciter) or the mark POLO
with the addition of a simple device in classes 9, 18, 25 and
28, on
the ground that these trade marks were merely descriptive of goods or
services in a particular class and not inherently capable
of
distinguishing the goods or services of a particular person in that
class. The respondent contended that the word ‘polo’ was
not
distinctive of the appellant’s goods and could be applied to those
of anyone else.
[72]
[100]
Where
a trade mark consists of words that are merely descriptive of goods
or services in a particular class, that mark is not inherently
capable of distinguishing the goods or services of a particular
person in that class. The question is whether the perceptions and
recollections of the mark would trigger the mind of the average
consumer of the specified goods or services to be origin specific
or
origin neutral.
[73]
[101]
The
respondent contended that the word ‘polo’ is defined in the
Merriam-Webster dictionary with reference to a sport as well as
types
of clothing, such as a ‘polo-shirt’, ‘polo-coat’ and
‘polo-neck’. The latter definitions were an indication of
how
ordinary members of the public would understand the word ‘polo’:
they were not likely to associate the word exclusively with
one
entity.
[102]
The
respondent alleged that numerous clothing brands describe items in
their lines of clothing with reference to the word ‘polo’.
However, these items of clothing were predominantly ‘polo shirts’.
The word is also used in specifications of goods to describe
types of
clothing in respect of which registration of a trade mark is sought.
But these goods were exclusively ‘polo shirts’.
It was also
contended that the word ‘polo’ forms a part of other trade marks
applied to clothing available in the South African
market, alongside
the appellant’s goods. These include THE SANTA MONICA POLO CLUB and
LA MARTINA TRADICION DEL POLO ARGENTINO.
[103]
The
respondent accordingly submitted that to the public, the word ‘polo’
is incapable of fulfilling the function of a trade mark,
and in the
mind of the consumer, ‘polo’ is not exclusively associated with
the appellant.
This
applies not only to clothing but also related items such as
sunglasses, belts and the like, and the goods covered by the trade
marks sought to be removed in terms of s 24 read with s 10(2)
(a)
of the Act.
[104]
The
appellant’s defence to the s 10(2)
(a)
challenge, in sum, was this. The meaning ascribed to the word ‘polo’
in a dictionary could not without more constitute proof
of the view
of the fashion industry at large. The respondent failed to adduce
evidence about the fashion industry. The use of the
word polo by THE
SANTA MONICA POLO CLUB and LA MARTINA TRADICION DEL POLO ARGENTINO in
relation to clothing, on the authority of
Orange
Brand Services
,
[74]
did not undermine the distinctiveness of the appellant’s trade
marks. The POLO trade marks had acquired the requisite
distinctiveness
as a result of their use by the appellant.
[105]
I
propose to deal firstly with the defence that the POLO trade marks
(words and devices), through their use, have become well-known
and
enjoy a substantial reputation and goodwill. The evidence presented
by the appellant was that its predecessor, L’Uomo (Pty)
Ltd, was
formed in January 1976 to manufacture men’s shirts for the top end
of the market. Its former managing director, Mr Gordon
Joffe,
was one of South Africa’s experts in fabric selection and designing
men’s shirts. These shirts were branded and sold with
the POLO MARK
and the POLO PONY device trade marks with registration numbers
1976/00659 and 1978/01082. The appellant asserted that
at the date of
their application for removal from the register, the marks had in
fact become capable of distinguishing as a result
of their use, as
contemplated in the proviso to s 10(2) of the Act.
[106]
In
Beecham
Group Plc
[75]
Harms JA, following the approach in
British
Sugar Plc
,
[76]
said:
‘
The factual
enquiry under s 9 read with the proviso to s 10 is done in two
stages. The first is whether the mark, at the date of application
for
registration, was capable of distinguishing the goods of its
proprietor from those of another person. If the answer is no, the
next inquiry is whether the mark is presently so capable of
distinguishing by reason of its use to date.’
[107]
The
first stage of the enquiry does not apply in relation to the
following trade marks listed in paragraph 92 above, by virtue of
the
seven-year incontestability clause: 1981/03857 POLO (Special Form) in
class 25; 1982/02787 POLO in class 25; 1982/02863 POLO
in class 18;
1982/06103 POLO in class 28; and 1987/01937 POLO in class 9.
[108]
As to
the second inquiry, the caution sounded by Jacob J in
British
Sugar Plc
,
[77]
endorsed by this Court in
First
National Bank v Barclays
,
[78]
bears repetition: ‘There is an unspoken and illogical assumption
that “use equals distinctiveness”.’ Jacob J stated that
precisely because a common laudatory word (in that case ‘TREAT’)
could naturally be applied to the goods of any trader, ‘one
must be
careful before concluding that merely its use, however substantial,
has displaced its common meaning and has come to denote
the mark of a
particular trader’. He approved the approach in
Canadian
Shredded Wheat Co
,
[79]
in which Lord Russell said:
‘
A word or words
to be really distinctive of a person’s goods must generally
speaking be incapable of application to the goods of
anyone else.’
[109]
As to
whether a mark is capable of distinguishing
by
reason of its prior use, the dictum by the Court of First Instance of
the European Communities (Fourth Chamber) in
Storck
v OHIM
[80]
is instructive:
‘
. . . in
assessing, in a particular case, whether a mark has become
distinctive through use, account must be taken of factors such
as,
inter alia, the market share held by the mark, how intensive,
geographically widespread and long-standing use of the mark has
been,
the amount invested by the undertaking in promoting the mark, the
proportion of the relevant class of persons who, because
of the mark,
identify goods as originating from a particular undertaking and
statements from chambers of commerce and industry or
other trade and
professional associations. If, on the basis of those factors, the
relevant class of persons, or at least a significant
proportion
thereof, identifies goods as originating from a particular
undertaking because of the trade mark, it must be concluded
that the
requirement for registering the mark laid down in Article 7(3) of
Regulation No 40/94 is satisfied (
Windsurfing
Chiemsee
,
paragraph 51 and 52;
Philips
,
paragraphs 60 and 61, and
Shape
of a beer bottle
,
paragraph 44).’
[81]
[110]
The
appellant adduced evidence that its POLO (word) trade mark had been
used continuously for a long time since its registration in
1976 –
more than 40 years at the time when the counter-application was
heard. The appellant’s predecessor in title, L’Uomo
(Pty) Ltd was
formed in January 1976 by Mr Ronald Lange, Mr Gordon Joffe and
Mr Freddy Barnett. The company was established
to manufacture men’s
shirts for the top end of the market. Mr Joffe, who recently passed
away, was one of South Africa’s experts
in fabric selection and
designing men’s shirts, and was appointed as the managing director.
The shirts were marketed and branded
with the mark POLO and the POLO
PONY device depicted in registration nos. 1976/00659 and 1978/01082.
[111]
The
appellant annexed a newspaper article in May 1976 showing the early
popularity of the POLO trade marks amongst consumers of goods
bearing
the mark. From May 1978 an average of 1000 shirts branded with the
POLO trade marks were sold in a day and POLO shirts became
the most
sought-after garment in the marketplace. The appellant has more than
340 retail customers who have in excess of 600 stores
across South
Africa, at which goods branded with its POLO and POLO PONY &
PLAYER device trade marks have been sold. These include
stores in all
the provinces of South Africa – Gauteng, Eastern Cape, Limpopo,
North West, Western Cape, KwaZulu-Natal, Free State,
Mpumalanga and
the Northern Cape. As far back as 1988 Edgars has been selling goods
with the POLO and POLO PONY & PLAYER device
trade marks. There
are some 106 John Craig stores that sell goods bearing the POLO and
POLO PONY & PLAYER device marks. These
marks have been used on a
wide variety of goods such as sportswear, casualwear, corporate wear,
footwear, bags, luggage, sunglasses
and home textile goods.
[112]
The
appellant’s POLO stand-alone stores are located in major shopping
malls in the country, namely Sandton City, Eastgate Mall in
Johannesburg, Menlyn Shopping Centre in Pretoria and the V&A
Waterfront in Cape Town. It provided statistics which showed that
between March 2013 and February 2014 a total number of 250200 people
visited these stores. During 2011 and 2012 goods bearing the
POLO
trade marks were advertised on billboards situated on roads that
carry high volumes of traffic. These advertisements were viewed
almost 300 000 times a day over a 90-day period.
[113]
Through
the use of its POLO and POLO PONY & PLAYER device trade marks the
appellant has generated net sales in excess of R1.2
billion only
between 2012 and 2015. The appellant and its permitted users
generated net sales in excess of R300 million per annum
from goods
bearing these marks for every financial year since 2012. In the 2017
and 2018 financial years the net sales figures increased
to more than
R400 million per annum. These sales figures alone show that the
appellant’s goods sold under the POLO trade marks
have become
well-known and popular amongst South African consumers. Moreover, the
appellant’s advertising expenditure in promoting
its POLO and POLO
PONY & PLAYER device trade marks between 2007 and 2018 was
substantial: approximately R62.5 million.
[114]
In
1997 the appellant custom-designed and manufactured POLO shirts for
the late former President Nelson Mandela. The evidence in this
regard
is a photograph with the inscription ‘Shirts for an Icon’, which
depicts President Mandela, the appellant’s director,
Mr Joffe, and
the two ladies who made the shirts. Also part of the evidence is an
article published in the
Cape
Times
newspaper on 26 August 1997, describing how the appellant had
specially manufactured a shirt for President Mandela which became
known
as the Olympic Shirt, worn by the President when the City of
Cape Town launched its bid to host the Olympic games in 2004, and how
it came about that the appellant started making shirts for the
President. The publicity the appellant got from this event,
publicised
to the entire nation, was immeasurable: it was marketing
gold. There is no doubt that the overwhelming majority of people in
the
country would have identified the Olympic Shirt and with it the
POLO trade mark, as emanating from the appellant.
[115]
The
appellant presented evidence proving the use of its trade marks on
social media and other advertising media. Between 1 April 2017
and 31
March 2018 the appellant had 151424 unique visits to its internet
website
www.polo.co.za
, which is
just over 12000 people per month on average. The appellant provided
more than 40 examples of the widespread advertising
of its POLO
branded goods in magazines dating back to 1981, including GQ, Men’s
Health, Living and Loving, Golf Digest and Edgars
Club magazines.
[116]
The
appellant also advertised its POLO branded goods through the
sponsorship of various public events that reached a wide segment
of
the population, such as the Western Province Rugby Team in 1983, the
South African Polo team in 2005, the POLO Africa Cup event
in 2006
(4500 people attended this event over a three-day period) and the
Cape Town International Jazz Festival in 2010, 2011 and
2012. The
latter event, widely covered online and by the print and broadcast
media, was attended by some 33500 people from all parts
of the
country in 2010 and 2011, respectively. The appellant sponsored the
South African Rugby team (the Springboks) during the 1999
Rugby World
Cup. The shirts, suits and ties worn by the team were custom made by
the appellant. It annexed a newspaper article published
in
Die
Burger
newspaper of 6 September 1999, containing a photograph of Mr Joffe
and the clothing branded with its trade marks. The article stated
that the appellant had sponsored all the clothing that the Springboks
would wear when they did not play rugby. Virtually the entire
country
followed the Rugby World Cup in 1999 and the majority of people would
have identified the POLO trade marks with the appellant’s
goods.
[117]
The
appellant has also participated in other promotional and social
responsibility activities in which the POLO trade marks featured,
that were widely publicised and reached a significant part of the
population. These were the Pink Pony campaigns in 2011 to 2013
to
raise awareness of breast cancer and funds for the Cancer Association
of South Africa. The well-known Springbok rugby player,
the late Mr
Chester Williams, and Ms Leanne Manas, the presenter of
Morning
Live
,
a national television breakfast show, were POLO brand ambassadors.
The appellant also sponsors the clothing worn by the presenters
of
the ‘Toks and Tjops’ television show, screened on ‘Kyknet’
and ‘SuperSport 1’ channels on the DStv pay-channel.
[118]
All of
this evidence makes four things clear. First, there has been
intensive, widespread, long-standing and continuous use of the
appellant’s POLO and POLO PONY & PLAYER device trade marks
since 1976. Second, the appellant has made significant financial
investments, established numerous stores and set up a considerable
wholesale and retail infrastructure in its promotion and use of
the
marks. Its advertising expenditure alone over some ten years amounted
to R62.5 million. Third, the marks have generated
significant
amounts in net sales – R1.2 billion over a three-year period – a
clear indicator that they have earned and still
enjoy an immense
goodwill and reputation. Finally, the POLO trade marks have become
firmly established in South Africa and have been
operating in the
marketplace as indicators of origin for more than 40 years. The
general public or a wide segment thereof, more specifically
consumers
who buy clothing, footwear, bags and the like, would identify goods
bearing the POLO trade marks as originating from the
appellant. It
has thus established that its trade marks have in fact become
distinctive through their use.
[119]
The
evidence outlined above was not challenged by the respondent. An
attack that a trade mark registration is one wrongly remaining
on the
register is intended to cover cases where the trade mark has lost its
distinctiveness as a result of circumstances arising
after
registration.
[82]
The respondent failed to identify any such facts or circumstances in
its papers and made no attempt to show any change in circumstances
that resulted in the appellant’s POLO (word) trade marks losing
their distinctiveness, and becoming descriptive and incapable of
distinguishing.
[120]
The
high court disregarded the evidence and failed to consider the
proviso in s 10(2) of the Act in ordering the removal of the
appellant’s POLO trade marks under s 10(2)
(a)
,
(b)
and
(c)
.
The court referred to the proviso in s 10(2) for the first time in
its judgment refusing leave to appeal. It stated that the appellant
had conceded that it could not prove the use of the ‘relevant
registered trade mark in respect of the particular item upon which
it
is alleged to have been used’. Counsel for the appellant however
submitted that no such concession was made. Indeed, such a
concession
would not make sense in the light of the evidence referred to above.
[121]
The
appellant had established that its POLO (word) trade marks were
capable of distinguishing its goods from those of another person
by
reason of their use, as envisaged in the proviso to s 10(2). It
follows that the trade marks referred to in paragraph 92 above
were
not liable to be removed from the register, despite the fact that the
original registrations of some of them were not protected
under the
seven year incontestability clause in the 1963 Act. The
appellant has demonstrated the response of a proprietor to
lack of
distinctiveness at the time of registration, aptly described by Jacob
J in
British
Sugar Plc
,
[83]
as follows: ‘never mind, I can show the mark is distinctive now’.
[122]
The
recent decision in June 2018 of the General Court (Sixth Chamber) of
the European Union (the GC) in
Gidon
Anabi Blanga v European Union Intellectual Property Office (EUIPO)
and the Polo/Lauren Company LP
,
[84]
in my view, is a case in point. Mr Blanga applied to EUIPO for the
registration of a mark HPC POLO in classes 18 and 25 of the Nice
Agreement concerning the International Classification of Goods and
Services for the Purposes of the Registration of Marks of 15 June
1957. Class 18 includes leather goods such as handbags, briefcases,
wallets, purses, travelling bags, umbrellas and walking sticks.
Class
25 comprises ‘Clothing; Footwear; Headgear; Leather belts
[clothing]’.
[123]
The
Polo/Lauren Company LP (Polo/Lauren), established in New York, filed
a notice of opposition to the registration of the mark based
on the
EU word mark POLO, registered on 12 August 2010 and covering goods in
classes 18 and 25 – the appellant’s POLO trade marks
in classes
18 and 25 were registered in 1982. The grounds of opposition were
twofold. First, there was a likelihood of confusion
between the marks
in issue, because the signs were similar, the goods and services were
identical and the POLO trade mark had acquired
a distinctive
character through its use. Second, the mark sought to be registered
would take unfair advantage of the distinctive
character or
reputation of the registered mark.
[85]
[124]
The
Opposition Division upheld Polo/Lauren’s opposition to the
registration of the HPC POLO mark. Mr Blanga appealed to the First
Board of Appeal of EUIPO (the Board of Appeal), which dismissed the
appeal and upheld the opposition. It found that the goods covered
by
the marks in issue were identical; that the signs were similar on
account of their common element ‘polo’, which has a normal
intrinsic distinctive character in the light of the goods concerned,
with the exception of ‘whips harness and saddlery’ (the
excluded
goods, which had a weak inherent distinctive character given their
close connection to the playing of polo); and that the
earlier mark
POLO enjoyed, in relation to clothing, a distinctive character
enhanced by its recognition by the public together with
a reputation.
In the light of these findings, inter alia, the Board of Appeal
concluded that it was more than likely that the average
consumer
would believe that the marks in issue came from the same undertaking
or economically-linked undertakings; and accordingly
that there was a
likelihood of confusion in respect of all of the goods concerned,
with the exception of the excluded goods. The
mark applied for was
likely to bring the earlier mark to mind in relation to all of
Polo/Lauren’s goods, regard being had to the
latter’s reputation,
and to take unfair advantage of that reputation.
[86]
[125]
In an
action in the GC, Mr Blanga sought the annulment of the Board of
Appeal’s decision in its entirety, but that relief was confined
to
‘that part of the decision in which the Board of Appeal upheld the
merits of the opposition on account of the likelihood of
confusion
between the marks at issue with regard to the goods concerned’.
[87]
He contended that it failed to assess the marks in their entirety and
did not ‘take due account of the weak distinctive character
of the
word “polo”’, which led the Board of Appeal to recognise,
wrongly, that there was a likelihood of confusion.
[126]
The GC
dismissed the action and gave short shrift to these contentions. It
held:
‘
So far as
concerns the first group of arguments put forward by the applicant,
it is clear, contrary to the latter’s submissions,
that the Board
of Appeal, in concluding that the signs HPC POLO and POLO visually,
phonetically and conceptually similar to an average
degree, took the
mark applied for into consideration as a whole, including therefore
its element “hpc”, which is expressly mentioned
in paragraphs 31,
37 and 39 of the contested decision. Were it otherwise, the Board of
Appeal could have found only that the signs
at issue were identical.
The applicant is therefore wrong to claim that the Board of Appeal
omitted to take the element “hpc”
into account.
In this context, it
should be recalled that, according to the case-law, when the sole
component of the earlier mark is included in
its entirety within the
mark applied for, the signs at issue are partially identical in such
a manner as to create a certain impression
of visual similarity in
the mind of the relevant public (see, to that effect, judgements of
10 September 2008,
Boston
Scientific v OHIM
–
Terumo
(CAPIO)
,
T-325/06, not published, EU:T:2008:338, paragraph 92, and of 23 April
2015,
Iglotex
v OHIM
–
Igloo
Foods Group (IGLOTEX)
,
T-282/13, not published, EU:T:2015:226, paragraph 65). That case-law
was delivered with regard to signs comprising a number of letters
comparable to that of the signs concerned in the present case; the
Board of Appeal cannot, therefore, be criticised for having applied
that principle.’
[88]
[127]
As to
the distinctive character acquired by the POLO trade mark through its
use, the GC said:
‘
In
addition, and above all, it should be recalled that, in paragraphs 46
to 51 of the contested decision, the Board of Appeal
noted that the
evidence submitted by the intervener demonstrated intensive use of
the earlier mark for clothing, in particular, in
catalogues,
magazines, on websites owned by the intervener or third parties and
in promotional material. The Board of Appeal also
observed that it
had been demonstrated that the earlier mark had been chosen to be the
official outfitter of international events
such as The Wimbledon
Championships, the Open Championship golf tournament in Scotland, the
American team for the Olympic and Paralympic
Games in London (United
Kingdom) in 2012 and in Sochi (Russia) in 2014, and that the ranking,
by an independent company, of the earlier
mark for the years 2012 to
2014 positioned it respectively as the 91
st
,
88
th
and
83
rd
most
influential trade mark in the world. Lastly, the Board of Appeal
emphasised that, even though the evidence submitted included
the mark
RALPH LAUREN, it also proved the intensive use of the earlier mark
POLO, which, whilst being associated with the other mark,
played an
independent role, given that it was positioned above the other mark
and was in a larger font.
On
the basis of those documents, the Board of Appeal’s findings, with
regard to which, moreover, the applicant does not put forward
any
argument capable of refuting them, must be approved
.’
[89]
[128]
By
reason of the conclusion to which I have come, it is unnecessary to
consider in any detail the respondent’s argument that the
marks
under discussion are merely descriptive. As Jeremy Phillips puts
it:
[90]
‘
Once acquired
distinctiveness is proved, the trade mark ceases to be descriptive in
the eyes of the consuming public for whom it has
become distinctive.
It also ceases to be a term which is customary in trade. Nor is such
a mark even deceptive.’
[129]
The
high court found that the POLO (word) trade marks were not capable of
distinguishing within the meaning of s 9 of the Act on the
basis that
the fashion industry did not consider the word ‘polo’ as a badge
of origin. In reaching this conclusion the high court
stated that the
ordinary, dictionary meaning of the word ‘polo’ is the sport of
polo; that in the fashion industry it is also
used to describe an
Ernie Els Solid Polo Tee Putter and specific items of clothing, such
as a polo shirt, polo coat, polo dress and
polo jersey; and that it
was ‘common cause’ that the word had been used with other trade
marks used in South Africa and applied
to clothing.
[130]
The
high court erred. The fact that the word ‘polo’ is defined in a
dictionary as meaning the sport of polo and specific items
of
clothing, such as a polo shirt and a polo coat, does not mean that
the trade mark POLO is generally descriptive of clothing or
the other
goods covered by the specifications of the POLO (word) trade mark
registrations in classes 9, 18, 25 and 28. And as shown
above, the
appellant has established that the POLO (word) trade mark has become
distinctive as a trade source of its goods, irrespective
of the
dictionary meaning of the word ‘polo’.
[131]
Similar
arguments – that the word ‘polo’ cannot be monopolised by one
company; that it has weak intrinsic distinctive character
particularly in relation to clothing; that it refers to a type of
clothing; and that numerous registered trade marks containing the
word further weakens its distinctive character – were essayed in
Blanga.
These arguments were
rejected.
[132]
Concerning
the dictionary definition, the Board of Appeals said:
‘
[T]he word “polo”
appears alone only to designate the sport of polo, while to designate
a “polo neck” the word always appears
followed by the word
“neck”. The applicant, without submitting evidence, argued that
the same applies to a ‘polo shirt’ which
can only be designated
with the word “polo”. However, the Board could not find any
evidence supporting this argument. Therefore
these arguments must be
rejected as unfounded.
’
[91]
[133]
As to
the applicant’s argument that there were a large number of trade
marks containing the word ‘POLO’ throughout the world
and within
the European Union in classes 18 and 25, the Board said:
‘
However, in order
to demonstrate “dilution” of the distinctive character of the
mark, it is not the abstract situation in the
trade mark register but
the actual use of trade marks on the market in relation to the goods
in question that is relevant . . . The
applicant submitted
screenshots of some website pages, namely nine. Nevertheless, those
screenshots are not sufficient; they do not
give enough information
as to what exactly is included in those website pages. This is
clearly insufficient evidence to show actual
use of trade marks on
the market in relation to the relevant goods.’
[92]
[134]
This
case is no different in my view. The meaning ascribed to the word
‘polo’ in a dictionary cannot, without cogent supporting
evidence, constitute proof of how the word is perceived by the
fashion industry at large. The high court relied on seven examples
of
the use of the word ‘polo’ in the ‘fashion industry’, derived
from a printout of one Internet website, namely
www.zando.co.za
.
However, there was no evidence before the high court about the
fashion industry, the actual use of the relevant trade marks, such
as
the extent of sales or advertising of the items displayed on the
printout, or whether the fashion industry considers that the
POLO
(word) trade mark has a distinctive character. Aside from this, the
printout was not authenticated,
[93]
and constitutes inadmissible hearsay.
[94]
[135]
Regarding
the contention that numerous registered trade marks containing the
word POLO weakened its distinctive character, the GC
held:
‘
So far as
concerns the second set of arguments put forward by the applicant,
relating to the distinctive character of the word “polo”,
it
should, as a preliminary point, be recalled that the case law
has recognised that the expression “polo club” has normal,
or
even enhanced, intrinsic distinctive character, with regard to the
goods in Classes 18 and 25 which are not specifically linked
to the
playing of polo (see, to that effect, judgment of 26 March 2015,
Royal
County of Berkshire POLO CLUB
,
T-581/13 not published, EU:T:2015:192, paragraph 49).’
[95]
[136]
The GC
concluded that even though the word mark POLO may not be
exceptionally distinctive, its recognition by the public combined
with its acquired reputation was enough to grant the mark enhanced
protection. It said:
‘
[T]rade marks
with a highly distinctive character, either intrinsically or because
of the reputation they possess on the market, enjoy
broader
protection than marks with a less distinctive character.’
[96]
[137]
Moreover,
the appellant does not seek to acquire nor assert a monopoly in the
use of the word ‘polo’ in a bona fide descriptive
context (in a
non-trade mark manner). It could not object to the use of the word by
traders to identify a specific type of shirt
or coat used in playing
the game of polo. The rights of traders wishing to make such use of a
word which is a registered trade mark
of another are protected by s
34(2)
(b)
of the Act, which allows a registered mark to be used for the purpose
of making a bona fide description or indication of the kind,
quality,
quantity, intended purpose, value, geographical origin or other
characteristics of the relevant goods or services. And in
Verimark
v BMW
[97]
this Court held that
the use of the registered trade mark of another (which would include
a word mark) by a person for purely descriptive,
non-trade mark
purposes, does not amount to trade mark infringement.
Removal
under s 24 read with s 10(2)
(b) and (c)
[138]
The
respondent sought removal of the following registrations on the
grounds of s 10(2)
(b)
of the Act:
(a)
1987/01937 POLO in class 9;
(b)
2003/02681 POLO in class 9;
(c)
1982/02863 POLO in class 18;
(d)
B1976/00659 POLO in class 25;
(e)
1982/02787 POLO in class 25; and
(f)
1982/06103 POLO in class 28.
[139]
The
following registrations were sought to be removed in terms of
s 10(2)
(c)
:
(a)
1987/01937 POLO in class 9;
(b)
2003/02681 POLO in class 9;
(c)
1982/02863 POLO in class 18;
(d)
B1976/00659 POLO in class 25;
(e)
1981/03857 POLO (Special Form) in class 25;
(f)
1982/02787 POLO in class 25;
(g)
1982/06103 POLO in class 28; and
(h)
2013/32408 POLO in class 28.
[140]
In
terms of s 10(2) of the Act a trade mark is liable to be removed from
the register if it:
‘
(b)
consists exclusively of a sign or an indication which may serve, in
trade, to designate the kind, quality, quantity, intended purpose,
value, geographical origin or other characteristics of the goods or
services, or the mode or time of production of the goods or of
rendering of the services; or
(c)
consists exclusively
of a sign or an indication which has become customary in the current
language or in the bona fide and established
practices of the trade.’
[141]
The
attack based on s 10(2)
(b)
and
(c)
can be dealt with shortly. Trade marks falling within the ambit of
s 10(2)
(a)
,
(b)
and
(c)
of the Act are not liable to be removed from the register if at the
date of the application for removal they have in fact become
capable
of distinguishing the proprietor’s goods from those of another
person.
[98]
The marks challenged under 10(2)
(b)
and
(c)
were thus not liable to be removed from the register.
[142]
Apart
from this, in considering removal of the trade marks under s 10(2)
(b)
of the Act, the high court erroneously applied the test applicable to
s 10(2)
(a)
.
It ordered removal under s 10(2)
(b)
because the word ‘polo’ is a generic term used widely in the
fashion industry and,
‘
. . . is first
and foremost a word of description. Its ordinary grammatical meaning
proves that. Thus one trader can therefore not
usurp the word polo
for its own exclusive use, where the mark is generic and thus cannot
operate as a badge of origin in those circumstances.’
[143]
Section
10(2)
(b)
does not relate to marks that have lost distinctiveness and are
generic, and on this basis alone, the order for the removal of the
appellant’s trade marks in terms of s 10(2)
(b)
falls
to be set aside. In
Century
City Apartments
[99]
this Court stated:
‘
. . . section
10(2)
(b)
must be read in context. It also deals on the same basis with marks
that may designate kind, quality, quantity, intended purpose,
value,
or other characteristics of the goods or services. It is not
concerned with distinctiveness or its loss. That is dealt with
in s
10(2)
(a)
,
which in turn is the counterpart of s 9 to which it refers.’
(Footnotes omitted.)
[144]
In
addition, the respondent’s case for removal of the POLO (word)
trade marks
in
terms of s 10(2)
(b)
,
was confined to the goods in class 25. The founding affidavit in the
counter-application states:
‘
79.
The applicant’s trademark registrations constitute generic
descriptions of its goods of interest
in class 25 and in fact are apt
to describe these goods. As set out above, the word “polo” has a
defined meaning in respect of
various clothing items.
80.
The addition of the depiction of a polo player on a polo pony only
serves to perpetuate the
concept of the sport polo, . . . No amount
of use of the word “polo” in respect of clothing can render the
trademark capable
of distinguishing without more. When the word is
used on its own, it is apt to describe the goods in respect of which
the trademarks
are registered.’
[145]
Despite
this, the high court found that all the POLO trade marks registered
in classes 9, 18, 25 and 28 consisted exclusively of a
sign which
served in trade to designate the kind, quality, quantity, intended
purpose, value, geographical origin or other characteristics
of the
goods covered by the trade mark registrations. Furthermore, it did
this in circumstances where classes 9, 18, 25 and 28 cover
a wide and
diverse range of goods such as, for example, clothing, footwear,
headgear, items of leather, trunks, travelling bags,
playthings and
glasses, which the court did not consider in conjunction with the
requirements of s 10(2)
(b).
[146]
The
high court also erred in failing to properly apply the provisions of
10(2)
(c)
:
it did not separately consider whether the POLO (word) trade mark
consists exclusively of a sign, or an indication which has become
customary in the current language, or in the bona fide and
established practices of the trade to describe each item of goods
listed
in the classes 9, 18, 25 and 28 specifications.
[147]
Finally,
on this aspect of the case, the fact that the word ‘polo’ is
included in the trade mark of the South African Polo Association
(SAPA) or that it uses an abbreviated version of the mark on its
clothing, is immaterial. SAPA is an official administrative body
that
regulates the sport of polo in South Africa and the promotional use
of its trade mark on clothing is ancillary to that function.
SAPA is
not in the business
of making clothing, footwear, headgear, watches, eyewear, bags,
luggage and home furnishings, and related goods.
The evidence was
that the use of the word ‘polo’ by SAPA did not constitute the
use of a trade mark, or use in the course of
trade. There are no SAPA
clothing stores and there is no range of SAPA branded clothing in
retail outlets to which consumers would
be exposed. That evidence was
not disputed.
Removal under s
27(1)
(b)
[148]
It is
convenient, firstly, to deal with the challenge under s 27(1)
(b)
of the Act because the bona fide use of a trade mark is relevant to
both s 27(1)
(a)
and 27(1)
(b)
.
Such use for the purposes of both subsections must have occurred in
the time period up to three months before the date of the application
for removal. Section 27(1)
(a)
prescribes
no time period during which bona fide use should have taken place
after registration. In terms of section 27(1)
(b)
a registered trade mark may be removed from the register if the
proprietor has not used it bona fide for a continuous period of five
years, up to three months before the date of the application for
removal.
[100]
In this case that period is 2 April 2013 to 2 April 2018 (the
relevant period).
[149]
The
respondent alleged that investigations into the trade to determine
whether the POLO and POLO PONY & PLAYER device trade marks
were
in fact used by the appellant in relation to all the goods and
services in respect of which they were registered, revealed that
the
following trade marks had not been used during the relevant period:
(a)
1978/01082 DOUBLE POLO PONY DEVICE in class 25;
(b)
1981/03857 POLO (Special Form) in class 25;
(c)
1982/06101 POLO in class 16;
(d)
1982/06100 POLO in class 14;
(e)
1982/06102 POLO in class 26;
(f)
1982/06103 POLO in class 28;
(g)
1985/01834-36 POLO PONY & PLAYER DEVICE in classes 18, 25 and 42;
(h)
1985/08367 POLO COMPANY & DOUBLE POLO PONY & PLAYER DEVICE in
class 25;
(i)
1985/08368 POLO COMPANY in class 25;
(j)
1988/11680 POLO PONY & PLAYER DEVICE in class 26;
(k)
1994/14433 POLO in class 42;
(l)
1996/06818 POLO in class 27;
(m)
2003/02685 POLO in class 43;
(n)
2004/03775 POLO PONY & PLAYER DEVICE in class 14;
(o)
2009/20234 POLO PONY & PLAYER DEVICE in class 16;
(p)
2009/20235 POLO in class 16;
(q)
2009/22109 POLO PONY & PLAYER DEVICE in class 20;
(r)
2009/26481 POLO PONY & PLAYER DEVICE in class 6; and
(s)
2011/06471 POLO in class 20.
[150]
The
appellant has not sought leave to appeal in respect of trade mark
registration no. 1996/06818 POLO in class 27; and registration
no.
2003/02685 POLO in class 43. There was no evidence that trade mark
registration no. 1978/01082 DOUBLE POLO PONY DEVICE in class
25 had
been used in trade during the relevant period. In fact, on its own
version, the appellant had undertaken in terms of an agreement
with
Ralph Lauren Company LP (Ralph Lauren) not to use a depiction of a
polo pony and player which faces to the left. Thus, it has
not used
and has no intention of using this mark. Its submission that this
Court should accept use of the mark with additions or
alterations not
substantially affecting its identity, as equivalent to proof of the
use required to be proved as contemplated in
s 31(1) of the Act, is
unsustainable. The appellant also conceded that it could not defend
certain of its trade mark registrations
in respect of the whole
specification of goods to which those registrations relate.
[151]
The
appellant alleged that the respondent had no
locus
standi
to attack the trade marks in classes 6, 14, 16, 18, 20, 26, 27, 28,
42 and 43. However, the appellant rightly did not persist in
this
point in either written or oral argument, as the respondent was
entitled to apply for the removal of the appellant’s trade
marks
because the appellant had sought an interdict to restrain the
respondent and USPA from infringing its trade marks.
[101]
[152]
In
A
M Moolla Group Ltd v The Gap Inc
,
[102]
Harms JA described the concept of bona fide user of a trade mark as:
‘
. . . a user by
the proprietor of his registered trade mark in connection with the
particular goods in respect of which it is registered
with the object
or intention primarily of protecting, facilitating, and furthering
his trading in such goods, and not for some other,
ulterior
object.’
[103]
[153]
More
recently, in
Westminster
Tobacco Company (Pty) Ltd v Philip Morris Products SA
,
[104]
concerning the bona fide use of a trade mark, Wallis JA said:
‘
In summary, bona
fide use is use of the trade mark in relation to goods of the type in
respect of which the mark is registered. The
use must be use as a
trade mark, for the commercial purposes that trade mark registration
exists to protect. It must be use in the
course of trade and for the
purpose of establishing, creating or promoting trade in the goods to
which the mark is attached. The
use does not have to be extensive but
it must be genuine. Genuineness is to be contrasted with use that is
merely token, but the
line is a fine one, because the use may be
minimal. It may in part be prompted by the fear of removal from the
register and be directed
at protecting the proprietor’s trade
generally or preventing the mark from falling into the hands of a
competitor. Provided, however,
the use is bona fide and genuine and
principally directed at promoting trade in goods bearing the mark,
these further purposes, however
important, are irrelevant. What is
impermissible is:
“
user for an
ulterior purpose, and associated with a genuine intention of pursuing
the object for which the Act allows the registration
of a trademark
and protects its use …”.’ (Footnotes omitted.)
[154]
Whether
use of a trade mark was bona fide is a question to be determined on
the facts of a particular case.
[105]
Section 27(3) of the Act places the onus on the proprietor to prove
use of the trade mark (relevant use) or bona fide use by a third
party with the licence of the proprietor (permitted use). The
proprietor is expected to have comprehensive and peculiar knowledge
of the use of its trade marks and should advance ‘clear and
compelling evidence’ of such use – allegations that are sparse,
ambiguous or lacking in conviction are insufficient to discharge the
onus.
[106]
[155]
In the
high court the appellant endeavoured to establish the use of each of
its trade marks challenged under s 27(1)
(b)
with reference to invoices, catalogues and photographs. However, in
this Court the appellant changed tack. It tried to avoid the
requirement of proof of the use of each trade mark sought to be
removed on the ground of non-use. It contended that all its different
trade marks formed a ‘unitary brand’, and that each individual
trade mark registration was protected as part of this brand, by
resort to s 31(1) of the Act,
[107]
and use of a particular ‘associated trade mark’, ‘with
additions or alterations not substantially affecting its identity’.
[156]
To
this end, the appellant relied on a ‘graphic diagram of the
associated registrations’ relevant to the attack under s 27(1)
(b)
,
annexed to its heads of argument. The appellant’s attempt to prove
use of a trade mark by reference to the so-called unitary brand
is
illustrated by the following submission in its heads of argument:
‘
. . . of
particular relevance is trade mark registration no. 1978/01082 DOUBLE
POLO PLAYER device in class 25 (Trade Mark Matrix “A”
page 8),
which has not been used in the relevant five year period.
However, with reference to the Association Diagram “C”,
it will
be seen that this registration is directly or indirectly associated
with a host of other POLO and POLO PLAYER device trade
mark
registrations, and we submit that where the use of these other trade
mark registrations has been proved . . . such use should
be
considered equivalent to the use of this DOUBLE POLO PLAYER device.’
[157]
This
approach is impermissible. The appellant was required to adduce
evidence showing the use of each registered trade mark during
the
relevant period, whether the use relied upon was actual use of the
mark itself, or use ‘by association’ with another registered
or
similar mark. In the latter event, the specific mark or marks relied
on for ‘associated use’ had to be identified and the
actual use
established. The appellant had to demonstrate use in relation to the
goods covered by the trade mark registration under
attack. After all,
the use of a trade mark must be consistent with the essential
function of the mark – to guarantee the origin
of the goods or
services to consumers by enabling them to distinguish the goods or
services from others which have another origin.
[158]
The
high court concluded that the appellant failed to provide clear and
compelling evidence of bona fide use; that the photographs
tendered
by the appellant as evidence of use taken at a store owned by the
appellant’s subsidiary, LA Retail Holdings (Pty) Ltd
t/a
International Brands Outlet (IBO) on 1 August 2018, were outside the
relevant period; that there was no causal connection between
invoices
and the photographs; and that any inference of use had to be the only
inference to be drawn from the proved facts.
[159]
The
latter conclusion however is inconsistent with the principles of
inferential reasoning in civil cases. It is not necessary for
a party
in a civil case to prove that the inference which the court is asked
to draw is the only reasonable inference. The onus will
be discharged
if inference is the most readily apparent or acceptable one from a
number of possible inferences.
[108]
[160]
The
evidence adduced by the appellant to demonstrate the use of its trade
marks referred to in paragraph 149 above, was mainly permitted
use by
IBO, concerning different goods sold within the relevant period. IBO
has various multi-brand retail outlets, one of which
is located in
Woodmead, Gauteng. The appellant relied on photographs, invoices and
catalogues, supported by affidavits by Mr Mark
Oliver, the managing
director of IBO and Mr Akbar Karolia, its manager.
[161]
Mr
Karolia, who has been the manager of IBO since 2008, stated that he
has extensive knowledge of the goods sold by IBO, including
those
bearing the appellant’s POLO and POLO PONY device trade marks. He
confirmed the authenticity and correctness of the IBO invoices
and
specifically the photographs and invoices relating to the use of
trade mark registration nos. 1981/03857 POLO & STRIPE device
mark
(a modified version of the mark that closely resembled the use of the
mark under enquiry, visually and conceptually)
[109]
and 1985/08368 POLO COMPANY. Mr Karolia (and Mr Oliver) also
confirmed that the goods depicted in photographs bearing the
appellant’s
POLO and POLO PONY device marks had been sold in the
course of trade throughout the country from at least 2015. The
respondent did
not dispute this evidence, save to allege that there
was no indication in Mr Karolia’s affidavit where certain IBO
invoices
could be found. In my view, the evidence demonstrates bona
fide use aimed at promoting trade in the goods bearing the relevant
marks.
It is not a ‘vague statement’ as to alleged use, as the
respondent contended.
[162]
Prior
to assuming the position of managing director in 2016, Mr Oliver was
the General Manager of two companies in the United Arab
Emirates and
the Operations Executive for Truworths, a position he held for 21
years. He has extensive knowledge of the apparel,
footwear and
accessories industry. He knows the appellant’s history and the
goods and services it offers under its POLO and POLO
PONY &
PLAYER device trade marks. He confirmed that photographs annexed to
the answering affidavit depicted a number of the appellant’s
retail
and wholesale outlets in major shopping centres which had been in
operation for the relevant period. This was evidence of
use of the
trade mark registration nos. 1994/14433 POLO and 1985/01836 POLO PONY
& PLAYER device.
[163]
The
respondent made much of the fact that photographs taken by Mr William
Badenhorst-Rossouw, an assistant employed by IBO, of
the goods sold
in IBO outlets which IBO purchases from the appellant’s licensees
identified in the answering affidavit, were taken
outside the
relevant period. It is however clear from the context of the
affidavit by Ms Rae James, the appellant’s main deponent,
that
these photographs related to the sale of the same goods that took
place during the relevant period, for which there were invoices
confirming the sales. It was obviously impossible to produce
photographs of the actual goods sold. What is more, in their
affidavits
Mr Oliver and Mr Karolia confirmed that the goods shown in
the photographs taken at the IBO store were sold in the course of
trade
throughout the country from at least 2015. Apart from this, the
evidence shows that the appellant has established bona fide use in
promoting trade in the goods bearing a number of its marks challenged
under s 27(1)
(b)
.
[164]
So,
for example, the appellant produced a printout of a catalogue of its
2016 and 2017 collection as evidence of the use of its POLO
and POLO
PONY & PLAYER device marks in respect of class 16 goods (annexure
RJ8 to the answering affidavit). The catalogue depicts
leather and
writing instruments showing use of its trade marks on inter alia,
pens, notebooks and leather tablet covers. There were
invoices
proving the sale of class 16 goods in the relevant period and
photographs of these goods as they were displayed and offered
for
sale in the retail environment. Mr Karolia confirmed the authenticity
of the invoices (some of which show sales in 2017) and
photographs.
Both Mr Oliver and Mr Karolia confirmed that the goods
identified in annexures RJ8 to RJ17 to the answering affidavit,
were
goods bearing the appellant’s trade marks sold in the course of
trade since 2015. The appellant thus demonstrated bona fide
use of
the trade mark registration nos. 1982/06101 POLO, 2009/20234 POLO
PONY & PLAYER and 2009/20235 POLO.
[165]
Further
examples are trade mark registration nos. 1982/06100 POLO and
2004/03775 POLO PONY & PLAYER DEVICE in class 14. The appellant
relied on a printout of its 2016 and 2017 collection containing
photographs of watches, jewellery and cufflinks showing the POLO
PONY
and POLO PONY & PLAYER device marks applied to the goods. The
respondent however contended that the photographs were ‘undated’
and speculated that if they were taken by Mr Rossouw, then they were
outside the relevant period. The appellant also relied on IBO
invoices within the relevant period showing the sale of cufflinks,
watches and a tie pin. These invoices, dated 2016 and 2017, are
confirmed by the evidence on affidavit that the goods in class 14
had, in the course of trade, been offered for sale and sold.
[166]
It is
unnecessary to undertake this analysis in relation to the remaining
trade marks removed from the register under s 27(1)
(b)
of
the Act. Suffice it to say that the evidence shows that the use of
the following marks was bona fide, not merely token, in the
course of
trade, and principally directed at promoting trade in the goods
bearing the marks: 1982/06102 in class 26; POLO and 1988/11680
POLO
PONY & PLAYER device in class 16; 1982/06103 POLO in class 28;
2009/22109 POLO PONY & PLAYER device and 2011/06471 POLO
both in
class 20.
[167]
As
stated, the appellant did not make out a case of bona fide use in
relation to the trade mark registration no. 1978/01082 DOUBLE
POLO
PONY (device) in class 25. It also did not establish use of the trade
mark 1985/08367 POLO COMPANY & DOUBLE POLO PLAYER
(word and
device) in class 25, as registered. Instead, the appellant relied on
the use of a different device incorporating a DOUBLE
POLO PONY &
PLAYER device together with the word mark POLO Company, which it
alleged was use of the registered mark with ‘additions
or
alterations which do not substantially affect [its] identity’. This
however was not the case made out in the answering affidavit.
Regarding trade mark registration number 2009/26481 POLO PONY &
PLAYER (device) in class 6, there was no evidence that the goods
referred to in the relevant invoice were made of metal, ie the kind
of goods specified in class 6. Save as aforesaid, the appeal
in
relation to the attack based on s 27(1)
(b)
of the Act must succeed.
Removal under s
27(1)
(a)
[168]
In
terms of s 27(1)
(a)
of the Act, a registered trade mark may be removed from the register
on the ground that it was registered without any bona fide intention
on the part of the applicant to use it in relation to the goods or
services in respect of which the mark was registered, and that
there
has in fact been no bona fide use by the proprietor up to the date
three months before the date of the application.
[110]
[169]
The
trade mark registration nos. sought to be removed under s 27(1)
(a)
were the following:
(a)
1982/06101 POLO in class 16;
(b)
1987/01937 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(c)
1994/14433 POLO in class 42;
(d)
2003/02681 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(e)
2009/26481 POLO PONY & PLAYER DEVICE in class 6, save for ‘key
rings’;
(f)
2009/26482 POLO in class 6, save for ‘key rings’;
(g)
2013/31832 POLO PONY & PLAYER DEVICE in class 9, save for
‘glasses, spectacles, sunglasses’; and
(h)
2013/07082 DOUBLE POLO PONY & PLAYER DEVICE in class 25.
[170]
Some
of these trade marks were registered in respect of goods such as
newspapers and periodicals; bookbinding material and stationery;
scientific, photographic and cinematographic apparatus and
instruments; materials of metal for railway tracks, pipes and tubes
of
metal and safes; computer software; and medical, hygienic and
healthcare services.
[171]
The
respondent contended that the trade marks were registered in
circumstances where the appellant had no intention of using them
in
relation to the goods or services for which they had been registered
and there had in fact been no bona fide use of the trade
marks. The
appellant’s business, conducted for some 42 years, was limited
to the branding and selling of clothing, footwear,
headgear, eyewear,
bags, luggage, wallets, purses and bed linen. These were the only
goods and services in respect of which the appellant
could have had
any intention of using its trade marks.
[172]
It was
further contended that the appellant had historically used specific
marks, namely the word mark POLO and the depiction of a
single polo
player on a single polo pony. The application for registration of a
mark completely different from those registered in
the name of the
appellant raised doubt as to its intention to make use of its trade
mark registration 2013/07082 DOUBLE POLO PONY
& PLAYER device in
class 25. On these grounds the respondent alleged that the appellant
was required to provide evidence of its
intention in relation to the
marks listed in paragraph 149 above.
[173]
Trade
mark registration no. 2013/31832 POLO PONY& PLAYER device was
cancelled in terms of paragraph 5(g) of the high court’s
order,
save in respect of ‘glasses, spectacles, sunglasses’. According
to the appellant’s Goods and Services Matrix B, these
are the only
goods in respect of which it seeks to retain this registration. There
is accordingly no true appeal against the partial
cancellation of
this mark in terms of s 27(1)
(a)
.
The same applies to trade mark registration no. 2003/02681 POLO. The
appellant has asked that the specification of this trade mark
registration be amended to read ‘glasses, spectacles and
sun-glasses (paragraph 5(d) of the court order)’.
[174]
Concerning
trade mark registration no. 2013/07082 DOUBLE POLO PONY & PLAYER
device mark, the respondent contended that the appellant
had sought
registration of this mark only in class 25, whereas it appeared to be
in the habit of generally filing trade mark applications
in classes
9, 18, 24, 25 and 35. Then it was said that the appellant had mostly
made use of the single POLO PONY & PLAYER devices
and that it
appeared incongruous that it would choose to depart from the trade
marks on which its entire brand had been built.
[175]
The
bona fide use of a trade mark entails an intention to trade
commercially in the goods for which the mark is registered.
[111]
The high court found that there was no ‘proven use’ of the DOUBLE
POLO PLAYER device trade mark registration no. 2013/07082 by
the
appellant, other than photographs taken on 1 August 2018,
outside the relevant period.
[176]
This
finding is erroneous. The appellant demonstrated extensive use of the
DOUBLE POLO PLAYER device mark by its licensees: Polo Distribution
(Pty) Ltd, Polo Management (Pty) Ltd and IBO. Evidence of this use
included photographs depicting the use of the DOUBLE POLO PLAYER
device mark on goods in class 25, invoices recording the sale of
goods bearing the mark for the period 4 November 2017 to 10 July
2018, and sales by IBO of clothing to the value of some R400 000.
Moreover, the respondent did not deny the appellant’s statement
in
the answering affidavit that it had the requisite bona fide intention
to use the DOUBLE POLO PLAYER device mark and that it had
in fact
commenced use of the mark. The respondent however sought to distance
itself from this acknowledgment on the basis that it
was a ‘bald
statement’. This is untenable.
[177]
The
high court also failed to consider evidence of the use of trade mark
registration no. 1982/06101 POLO in class 16 and ordered
the removal
of trade mark registration no. 1994/14433 in class 42 in its
entirety, despite the evidence of Mr Oliver demonstrating
its
use, and the respondent’s statement that the appellant’s business
was limited to the branding and selling of clothing and
the like, in
respect of which it had in fact used its trade marks.
[178]
The
evidence tendered by the appellant concerning trade mark registration
no. 1987/01937 POLO in class 9, in my view did not establish
the
requisite intention in terms of s 27(1)
(a)
of the Act. It relied on ‘affidavit evidence’ and ‘pictorial
evidence’ to establish bona fide use. In the affidavits however
there was no reference to trade mark no. 1987/01937 POLO in class 9.
The pictorial evidence related to POLO marks displayed and affixed
to
goods in classes 18 and 25. The invoices and spreadsheets on which
the appellant relied depicted the use of the POLO mark in respect
of
class 28 goods, and use of the POLO and POLO & POLO PLAYER device
mark in class 6, not the POLO word mark in class 9. Aside
from this,
the appellant relied on its ‘associated diagram’ for its stance
that trade mark registration no. 1987/01937 POLO in
class 9 in effect
was part of its so-called unitary brand.
[179]
In the
result the appeal against removal in terms of s 27(1)
(a)
should succeed only in respect of the following trade mark
registration nos.: 1982/06101 POLO in class 16; 1994/14433 POLO in
class
42; 2013/07082 DOUBLE POLO PONY & PLAYER DEVICE in class
25.
Removal
under s 24 read with s 10(13)
[180]
The
respondent’s application for removal in terms of s 10(13) was
expressly confined to the appellant’s trade marks that
survived
removal under ss 10(2)
(a)
,
(b)
or
(c)
and 27(1)
(a)
or
(b)
of the Act. Section 10(13) provides that ‘a mark which, as a result
of the manner in which it has been used, would be likely to
cause
deception or confusion’, is liable to be removed from the register.
[181]
The
basic grounds upon which the respondent sought removal of the
appellant’s marks in terms of s 10(13) were these. The appellant
and Ralph Lauren concluded an agreement concerning the use by Ralph
Lauren of the POLO and POLO PONY & PLAYER device. Although
the
respondent could ‘only speculate as to its terms’, the agreement
resulted in ‘the use by these parties of essentially identical
trade marks in South Africa in the same market in relation to similar
goods’. This was likely to result in deception and confusion
amongst consumers. Consumers believe that when they buy the
appellant’s goods they are buying goods ‘from the international
fashion
house Ralph Lauren’. The latter’s trade marks are
well-known to the purchasing public in this country and South African
travellers
have encountered Ralph Lauren’s trade marks used abroad.
[182]
The
high court cancelled all 46 of the appellant’s POLO trade mark
registrations (words and devices) in terms of s 10(13) of the
Act. It
found that the appellant had entered into an agreement with a
competing trader, Ralph Lauren, in terms of which the latter
was
allowed to register its POLO and POLO PONY & PLAYER device marks
in South Africa, and that the two traders could use their
respective
POLO and POLO PONY & PLAYER device, POLO JEANS CO and POLO SPORT
marks in the country alongside each other in the
same industry.
[183]
The
high court held that the ‘fact of confusion or deception is a
reality’ and that the appellant had,
‘
mimicked the
sales approach of Ralph Lauren in outlet appearance in respect of
colouring and interior design; a pink pony campaign
in support of
breast cancer awareness; clothes ranges of specific brands such as
‘Polo Jeans Co’ and ‘Polo Sport’, and expansion
into other
branded goods other than clothing, footwear and headgear and in
respect of homeware goods.’
[184]
As
regards its interpretation of s 10(13) of the Act, the high court
referred to the following comment by Webster and Page:
[112]
‘
Section 10(13)
precludes the registration of a mark which, as a result of the manner
in which it has been used, would be likely to
cause deception or
confusion. This subsection applies equally to use after registration
leading to deception or confusion. This subsection
relates to marks
which by reason of the manner of being used have led or would lead to
the expectations of the public being unfulfilled.’
[113]
[185]
Counsel
for the appellant argued that this comment – a trade mark being
used in a way that the expectations of the public are likely
to be
unfulfilled – accords with the appellant’s interpretation of s
10(13) and that on its plain meaning, the provision requires
that the
proprietor must use the trade mark in a manner that the use of the
mark itself is likely to cause deception or confusion.
He referred to
a similar provision in the United Kingdom Trade Marks Act 1994,
namely s 46(1)(d) which provides that the registration
of a
trade mark may be revoked if:
‘
. . . in
consequence of the use made of it by the proprietor or with his
consent in relation to the goods or services for which it
is
registered, it is liable to mislead the public, particularly as to
the nature, quality or geographical origin of those goods or
services.’
[186]
Section
s 46(1)(d) of the UK Act, the argument proceeded, is in substance
equivalent to s 10(13) of the Act, although s 46(1)(d) contains
particular examples of the manner of use of a mark likely to mislead
the public, which are not exhaustive. In this regard the appellant’s
counsel relied on the following passage in
Kerly
:
[114]
‘
Absolute ground
(g) (UK Act s.3(3)(b); TMD art.3(1)(g): EUTMR art.7(1)(g)) forbids
the registration of a mark if it is of such a nature,
as to deceive
the public. For instance, as to the nature, quality or geographical
origin of the goods or service. Thus, the same
examples are used, yet
slightly different expressions define the heart of the provision:
liable to mislead the public/of such a nature
as to deceive the
public. The difference appears to lie in the fact that the vice
caught by absolute ground (g) is inherent in the
meaning of the mark
itself, absent use, whereas the vice caught by s.46(1)(d) is a
consequence of use. Apart from that, they are
aimed at the same vice.
There are two
differences of significance between absolute ground (g) and this
ground for the revocation. The first relates to the
date at which the
position is assessed. The absolute ground for refusal (and
invalidity) requires the position to be assessed at
the date of
application for the mark. This revocation ground requires the
position to be assessed as at the date of application for
revocation.
The second concerns the cause of the deceptiveness. Under absolute
ground (g), the cause does not matter: a deceptive
mark shall not be
registered. The revocation ground only operates if the deceptiveness
has been caused by the use which has been
made of the mark by the
proprietor or with their consent. In other words it is deceptiveness
for which the proprietor is responsible,
although there is no
requirement to prove “blameworthy conduct”. In these respects,
this revocation ground has a narrower ambit
than absolute ground (g).
This ground for
revocation (like absolute ground (g)) looks to the mark itself and
whether the mark itself is liable to mislead the
public. However, the
liability to mislead must arise from the use made of the mark,
something not required for absolute ground (g).
Either way, “the
court must have due regard … To the message which [the] trade mark
conveys” – it is that which must mislead.
This ground for
revocation does not encompass passing off-type deceptiveness. It is
in the nature of an absolute objection – not
a relative objection
based on the mark of a different trader.’
[187]
Counsel
for the respondent submitted that the reliance on
Kerly
was misplaced because it was made in the context of the specific
wording of s 46(1)
(d)
of the UK Act not found in s 10(13). The latter provision, so it was
submitted, merely requires a situation to exist where the manner
of
use by a trade mark proprietor was likely to cause deception or
confusion. The Act neither prescribes nor limits the way in which
the
mark should be used before such use is considered likely to cause
deception or confusion.
[188]
The
respondent’s counsel argued that it was the combined effect of the
appellant entering into the agreement with Ralph Lauren in
relation
to goods which had been found in this country to be so similar that
confusion was likely to result from the use of a confusingly
similar
trade mark by two different entities. The appellant failed to ensure
that its goods were distinguishable from those of Ralph
Lauren by the
addition of any distinguishing features, which constituted the ‘use’
of the appellant’s trade marks forming the
subject of the s 10(13)
attack. It is in this context that the ‘manner’ in which the
appellant has used its various trade marks
must be considered, in
order to determine whether such use is likely to lead to deception or
confusion.
[189]
In my
opinion, this argument fails both on the level of the law and the
facts. Section 10(13) is aimed at use of a mark in a deceptive
or
confusing manner. That suggests that the
use
is what must lead to the likelihood of deception or confusion. In
this respect s 10(13) is no different in principle and in its
operation
from s 46(1)(d) of the UK Act: the likelihood of
deception or confusion, or the liability to mislead, must arise from
the use
of the mark itself. Put differently, it is the message which
the mark conveys that must deceive or mislead. The fact that the UK
Act provides instances of misleading, or that it uses the term
‘mislead’ as opposed to ‘deception or confusion’, in my view
does not detract from this. The ground for removal under s 10(13)
operates only when the deception or confusion has been caused by
the
use which has been made of the mark by the proprietor. What is
envisaged in s 10(13) is whether the mark itself is likely
to
cause deception or confusion. It does not contemplate passing-off
type deceptiveness or the use of a mark based on the trade mark
of a
different trader.
[190]
As
stated in
Kerly
,
the ground of revocation under s 46(1)(d) raises a question of fact
which must be decided ‘from the viewpoint of the average consumer
of the products who is reasonably well informed and reasonably
observant and circumspect’, and that the application of the
provision
is likely to be rare.
[115]
The authors cite the following examples. A mark as originally
registered and used contained a correct reference to the nature of
the goods or services. There may however be a change in the use so
that the mark is then used on goods or services which do not possess
the quality to which the mark refers. The mark is then liable to
mislead the public (or likely to cause deception or confusion) as
a
result of the use made of it. In this sense the expectations of the
public are unlikely to be fulfilled by reason of the manner
in which
the mark has been used. The same would apply in the case of a mark
that referred to the quality or geographical origin of
the goods or
services.
[191]
Applied
to the present case, if the well-known PURE WOOL mark were to be
added to the POLO trade mark and applied to a garment not
made of
pure wool but some synthetic material, the use of the latter mark
would fall foul of s 10(13). Likewise, if the trade mark
POLO is used
in the context of ‘POLO of Knightsbridge’, where the relevant
goods have no connection with Knightsbridge or the
city of London,
such use would be likely to cause deception or confusion.
[192]
On
this construction, the respondent had to show that the appellant had
itself used its own trade marks in a way that was likely to
cause
deception or confusion. The point may be illustrated by reference to
Anne
Frank Trade Mark
.
[116]
The dispute involved two organisations with rival claims to rights
arising from the name ANNE FRANK, contained in two registered
trade
marks. The applicants applied for revocation of the registrations in
terms of s 46(1)(d) of the UK Act on the basis that as
a result of
the use made of the trade mark by the proprietor, it was liable to
mislead the public, in view of the applicants’ right
to publicise,
promote and generally exploit the name Anne Frank. The Registrar
concluded that the requirements of s 46(1)(d) had
not been met and
said:
‘
However, section
46(1)(d) requires me to consider the position not in relation to
another party’s claim but “in consequence of
the use made of it
by the proprietor”. I do not therefore think that the applicants’
case is well-founded under this subsection
which is concerned with
the position arising from the actions of the registered proprietor
himself.’
[117]
[193]
It
follows that the high court erred in its construction of s 10(13) of
the Act. It did not consider the appellant’s ‘manner of
use’ of
its own trade marks. Instead, it compared the appellant’s trade
marks to those of Ralph Lauren and determined the likelihood
of
deception and confusion with reference to the test that is inter alia
a value judgment: ‘. . . largely a matter of first impression,
without undue peering at the two marks to be considered’.
[194]
The
manner in which the appellant has used its trade marks has at all
times been lawful. The respondent did not contend otherwise.
Such use
could not have constituted use in a manner that was likely to result
in deception or confusion as envisaged in s 10(13).
And the
appellant’s conclusion of the agreement with Ralph Lauren,
indispensable for the respondent’s case, did not constitute
a use
of its trade marks.
[195]
Counsel
for the appellant also submitted that its interpretation of s 10(13)
is supported by the immediate context, because comparisons
between
trade marks are dealt with in s 10(14) and s 10(15) of the Act, which
require two marks to be compared in order to determine
the likelihood
of public deception or confusion between them in use. It was
submitted that an interpretation that s 10(13) envisages
a comparison
between two trade marks would mean that s 10(13) serves the same
purpose as ss 10(14) and 10(15), a result which the
Legislature could
not have intended.
[196]
The
submission, as far as it goes, is incorrect, because s 10(13) is
dealing with a different situation to ss 10(14) and 10(15). Those
sections deal with applications for registration, where there is
already a registered trade mark or an earlier application for
registration,
and the mark sought to be registered is likely to
deceive or cause confusion.
[118]
As stated by this Court in
Orange
Brand Services
,
[119]
s 10(15) ‘applies to competing applications, while s 10(14) applies
to applications that compete with trade marks already registered’.
In both cases the proprietor or the person making the earlier
application may consent to registration of the mark sought to be
registered.
Section 10(13) is not concerned with the registration of
a mark but with the use to which the mark is put and the impact of
that
use. However, that does not mean that the relationship between s
10(13) and ss 10(14) and (15) is irrelevant.
[197]
Under
s 10(14), if the owner of the registered mark consents, the competing
mark can be registered. Similarly, the party with the
prior
application for registration can under s 10(15) consent to the
registration of the competing mark. Both cases will bring about
a
situation where there are marks on the register that as between those
marks may cause deception or confusion as to the origin of
the goods.
Almost certainly, in order to procure consent, the person seeking
registration of the competing mark will conclude an
agreement with
the party having the prior right to enable the two to co-exist. That
is what has occurred in this case.
[120]
Importantly, at the stage of registration, no third party has any
standing to object to this situation being created by the
registration
of the competing mark.
[198]
On the
respondent’s interpretation however, if the mark is then used in
terms of that consent, its use renders it liable to removal
under s
10(13) at the instance of a third party. In effect then, the
registration is entirely valid, but the moment an attempt is
made to
enforce it, the potentially ‘infringing’ party in the position of
the present respondent becomes a person interested
in the mark and
they can undermine the agreement by having the mark expunged under s
10(13). That would be a very peculiar result
as it would nullify the
clear statutory entitlement to obtain registration on this basis.
Even more peculiarly, if the mark was expunged
at the instance of a
third party, there appears to be nothing to stop the parties who
agree to its registration in the first place
from doing the same
again and securing registration under ss 10(14) and (15).
[199]
On the
facts, whilst the high court had not been provided with the terms of
the agreement between the appellant and Ralph Lauren,
the evidence
shows the following. Ralph Lauren is the registered proprietor of
inter alia a POLO and a POLO PONY & PLAYER device
trade mark
registered in class 3, covering in particular perfumes and cosmetics.
At the outset of the proceedings the appellant disclosed
that the use
of the Ralph Lauren trade marks had always been restricted to class 3
goods as a result of litigation between the appellant’s
predecessor
and Ralph Lauren in the 1980s. Ralph Lauren has used its POLO and
POLO PONY & PLAYER device marks in the marketplace
only on
perfumes and cosmetics, and then with the clearly identifiable RALPH
LAUREN trade mark. The appellant has used its trade
marks on all the
goods and services of interest to it, but excluding class 3 goods.
[200]
The
appellant and Ralph Lauren reached a valid compromise and their
respective trade marks have coexisted in the marketplace since
2011.
Trade mark co-existence, a situation in which two different
enterprises use a similar trade mark to market a product without
interfering with each other’s businesses, is neither novel nor
unique.
[121]
It is apparent that the effect of their agreement is to give the
appellant free rein in the field of clothing and similar items,
while
leaving Ralph Lauren to import and sell its brand of cosmetics and
skincare products. In the result, consumers who buy items
of clothing
in South Africa bearing the mark POLO, or the device of a left facing
pony, are buying goods of the appellant. It matters
not that they
think that they are buying from a well-known US fashion house. The
badge of origin function of a trade mark is fulfilled
provided that
all items bearing that badge come from the same source.
[201]
The
same applies to consumers buying cosmetics or perfume bearing the
Ralph Lauren trade marks: they are buying the goods of Ralph
Lauren.
The latter’s marks distinguish its goods from those having a
different source and thus the badge of origin function of
the Ralph
Lauren marks is fulfilled. On the facts, there is thus no potential
of any confusion or deception.
[202]
The
appellant has used its trade marks in the marketplace for more than
30 years, during which there was no Ralph Lauren perfume.
The
latter’s perfume has always been branded with the RALPH LAUREN
trade mark and the goods sold by the appellant bearing its trade
marks have always excluded perfume. Ralph Lauren does not use its
POLO trade marks on, for example, clothing, footwear, sunglasses,
bags, and bed linen or any of the other goods bearing the appellant’s
trade marks in South Africa. Therefore, consumers would not
have
encountered, for example, an item of clothing bearing Ralph Lauren’s
trade marks. Neither would they have been exposed to
any Ralph Lauren
product bearing the appellant’s trade marks.
[203]
Contrary
to the high court’s finding, the goods of the appellant and Ralph
Lauren would not have been encountered in the marketplace
next to
each other. There was no reasonable likelihood of deception or
confusion. In addition, Ralph Lauren has never used, and does
not
use, the marks POLO JEANS CO and POLO SPORT in South Africa.
Moreover, Ralph Lauren has no stores in South Africa and has never
had any. So a South African consumer could not walk into a Ralph
Lauren store, be exposed to store get-up or presentation and then
be
deceived or confused in any way. The high court thus erred in finding
that the appellant ‘mimicked’ the sales approach of
Ralph
Lauren.
[122]
To the extent that the court was referring to Ralph Lauren’s stores
and sales approach in the United States, this consideration
is
irrelevant since trade marks are territorial.
[123]
[204]
The
annexures upon which the respondent relied for the allegation that
the appellant’s trade marks and those of Ralph Lauren were
likely
to cause deception or confusion, constitute inadmissible hearsay.
These were copies of articles from various websites, none
of which
were proved to have originated from the appellant. They included
articles published in March 2012 and March 2014 expressing
opinions
as to whether, for example, the appellant was part of Ralph Lauren.
These articles, which do not show evidence of deception
or confusion,
are all archived, outdated and not reflective of the position in July
2018 when the counter-application was launched.
Three of the articles
appear to have been authored by the same person.
[205]
Similarly,
there were articles from websites incorrectly stating that there are
Ralph Lauren stores in South Africa and opinions in
2014 about why
the local POLO pony faces the other way, none of which was evidence
of consumer deception or confusion. Most of the
annexures were
attached to USPA’s answering affidavit made in 2016 in trade mark
opposition cancellation proceedings. The goods
depicted on an extract
from a website showing Ralph Lauren’s Pink Pony perfume, are sold
exclusively to American and Canadian consumers.
[206]
The
respondent did not bring this hearsay within one of the recognised
exceptions to the rule against the admission of hearsay, as
envisaged
in the
Law of Evidence Amendment Act 45 of 1988
.
[124]
In
Vulcan
Rubber Works
[125]
Schreiner JA said:
‘
. . . hearsay,
unless it is brought within one of the recognised exceptions, is not
evidence, i.e. legal evidence, at all.’
This rule was
affirmed in
Ndhlovu
,
[126]
in which this Court
stated:
‘
The 1988 Act does
not change that starting point. Subject to the framework it creates,
its provisions are exclusionary. Hearsay not
admitted in accordance
with its provisions is not evidence at all.’
[207]
For
these reasons, the respondent did not in my view establish that 46 of
the appellant’s trade marks – the lifeblood of its business
–
were liable to be removed from the register in terms of s 24
read with s 10(13) of the Act.
[208]
On the
issue of costs, in my view there is no reason why costs should not
follow the result, both in relation to the appeal and the
proceedings
in the high court. However, the appellant is not entitled to the
costs of the preparation of the appeal record. This
Court was
compelled to trawl through a complex and confusing record accompanied
by core bundles, all of which were in total disarray.
This, when the
respondent advised the appellant well in advance to prepare a proper
record.
Order
[209] In the
light of the above, the following order is issued:
1
The appeal is upheld with costs, including the costs of two counsel.
The costs in relation to
the preparation of the appeal record are
disallowed.
2
Paragraphs 1, 2, 3, 4, 5 and 6 of the order of the high court are set
aside and replaced by
the following:
‘
1
The first respondent’s counter-application for the removal from the
register of trade marks, in
terms of s 27(1)
(b)
of
the Trade Marks Act 194 of 1993 (the Act), of the following trade
mark registration numbers is upheld:
(a)
1978/01082 DOUBLE POLO PONY (device) in class 25;
(b)
1985/08367 POLO COMPANY & DOUBLE POLO PLAYER (word and device) in
class 25; and
(c)
2009/26481 POLO PONY & PLAYER (device) in class 6.
2
The first respondent’s counter-application for the removal from the
register of trade marks,
in terms of s 27(1)
(a)
of the Act, of
the following trade mark registration numbers is upheld:
(a)
1987/01937 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(b)
2003/02681 POLO in class 9, save for ‘glasses, spectacles,
sunglasses’;
(c)
2013/31832 POLO PONY & PLAYER DEVICE in class 9, save for
‘glasses, spectacles, sunglasses’;
(d)
2009/26481 POLO PONY & PLAYER DEVICE in class 6, save for ‘key
rings’;
(e)
2009/26482 POLO in class 6, save for ‘key rings’.
3
Save as aforesaid (and excluding the trade mark registration numbers
1996/06818 POLO in class
27 and 2003/02685 POLO in class 43 which the
applicant conceded had not been used), the first respondent’s
counter-application
for the removal from the trade marks register, in
terms of s 27(1)
(b)
and s 27(1)
(a)
of the Act, of the
following trade mark registration numbers is dismissed:
(a)
1981/03857 POLO (Special Form) (word and stripe device) in class 25
in respect of shirts;
(b)
1982/06101 POLO (word) and 2009/20235 POLO (word) both in class 16 in
respect of paper articles, books,
stationery, pens, journals and
notebooks;
(c)
1982/06100 POLO and 2004/03775 POLO PONY & PLAYER (device) both
in class 14 in respect of watches,
cufflinks, keyrings, collar-shirt
bones and tie pins;
(d)
1982/06102 POLO (word) and 1988/11680 SINGLE POLO PLAYER (device)
both in class 26 in respect of buttons,
rivets, press studs, poppers,
zip pullers, sew-on plates, lapel pins, fobs, patches, hooks and
bars, cord ends and eyelets;
(e)
1982/06103 POLO (word) and 2013/32408 POLO (word) both in class 28 in
respect of toys, playthings, golf
balls, golf-tees, soft ponies,
teddy bears;
(f)
1985/01834 SINGLE POLO PLAYER (device) in class 18 in respect of
luggage, bags, handbags, wallets,
folders, purses;
(g)
1985/01835 SINGLE POLO PLAYER (device) in class 25 in respect of
clothing, including boots, shoes and
slippers.
(h)
1985/08368 POLO COMPANY in class 25;
(i)
1994/14433 POLO (word) and 1985/01836 SINGLE POLO PLAYER (device)
both in class 42 in respect of
retail, sale, distribution, marketing
and merchandising and wholesale services but excluding services
connected with goods in class
3;
(j)
2009/20234 SINGLE POLO PLAYER DEVICE in class 16 in respect of paper
articles, books, stationery
and pens;
(k)
2009/22109 POLO PONY & PLAYER DEVICE and 2011/06471 POLO (word)
both in class 20 in respect of cushions,
picture frames and pillows;
(l)
1982/06101 POLO in class 16;
(m)
1994/14433 POLO in class 42;
(n)
2013/07082 DOUBLE POLO PONY & PLAYER DEVICE in class 25.
4
The trade mark registrations referred to in paragraphs 1 and 2 above
as well as the trade mark
registration numbers 1996/06818 POLO in
class 27 and 2003/02685 POLO in class 43 are removed from the trade
marks register and the
Registrar of Trade Marks is ordered to effect
the necessary rectification in relation to the trade mark
registrations removed and
those referred to in paragraph 3 of this
order.
5
The first respondent’s counter-application for the removal from the
trade marks register,
in terms of s 24 read with s 10(2)
(a)
,
(b)
and
(c)
of the Act, of the trade mark registration
numbers listed in paragraphs 1, 2 and 3 of its further amended notice
of counter-application
dated 9 November 2018, is dismissed.
6
The first respondent’s counter-application for the removal from the
trade marks register,
in terms of s 24 read with s 10(13) of the
Act, of the trade mark registration numbers listed in paragraph 4 of
its further
amended notice of counter- application dated 9 November
2018, is dismissed.
7
The first respondent is ordered to pay the costs of the
counter-application which shall include
the costs of two counsel.’
A SCHIPPERS
JUDGE OF APPEAL
APPEARANCES
For
appellant:
P Ginsburg SC (with P Cirone and
N
Nyembe)
Instructed
by:
Adams
& Adams Attorneys, Pretoria
Honey Attorneys,
Bloemfontein
For
first respondent:
L
G Bowman SC (with I Joubert SC)
Instructed
by:
Spoor
& Fisher Attorneys, Pretoria
Phatshoane Henney
Attorneys, Bloemfontein.
## [1]The
judgment of Van der Westhuizen J is reported sub nomStable
Brands (Pty) Ltd v LA Group (Pty) Ltd and Another[2019] ZAGPPHC 567.
[1]
The
judgment of Van der Westhuizen J is reported sub nom
Stable
Brands (Pty) Ltd v LA Group (Pty) Ltd and Another
[2019] ZAGPPHC 567.
[2]
The class, sections of the Act
under which each trade mark has been challenged, representation of
the mark, trade mark number and
registered specification are
depicted on Annexure A.
[3]
Section 24 of the Act headed:
‘General power to rectify entries in register’, provides:
‘
(1)
In the event of non-insertion in or omission from the register of
any entry, or of an entry wrongly made in or wrongly remaining
on
the register, or of any error or defect in any entry in the
register, any interested person may apply to the court or, at the
option of the applicant and subject to the provisions of section 59,
in the prescribed manner, to the registrar, for the desired
relief,
and thereupon the court or the registrar, as the case may be, may
make such order for making, removing or varying the entry
as it or
he may deem fit.
(2)
The court or the registrar, as the case may be, may in any
proceedings under this section decide any question that may be
necessary
or expedient to decide in connection with the
rectification of the register.
(3)
In the event of the registrar being satisfied that any entry
relating to the registration, assignment or transmission of a trade
mark has been secured
mala fide
or by misrepresentation or
that any such entry was wrongly made or wrongly remains on the
register, he shall also have
locus standi
to apply to the
court under the provisions of this section.’
[4]
Royal County of Berkshire
Polo Club Lt v OHIM – Lifestyle Equities CV
–
Case T-581/13 - judgment of the General Court (Ninth Chamber) (
Royal
County of Berkshire Polo Club
).
[5]
The marks entered in the name of
Ralph Lauren in South Africa include: trade mark registration no.
1973/01593 POLO; trade mark registration
no. 1981/03635; trade mark
registration no. 1981/03633; trade mark registration no.
B1992/07397; trade mark registration no. 1997/10815;
trade mark
registration no. 1998/21059 POLO JEANS CO.; trade mark registration
no. 2005/00819 PINK PONY RALPH LAUREN; trade mark
registration no.
2005/25304 POLO SPORT: trade mark registration no. 2006/15021 POLO;
trade mark registration no. 2009/14874 POLO
RED WHITE & BLUE.
[6]
See paragraph 200 of the
judgment of Schippers JA.
[7]
J Mellor QC
et
al. Kerly’s Law of Trade Marks and Trade Names
(2018,
16 ed. London: Sweet & Maxwell) paras 12-155 to 157.
[8]
Merriam Webster Dictionary, available at
https://www
.merriam webster.com.
[9]
‘
Mislead’ is defined in The
Concise Oxford English Dictionary 12 ed as: ‘cause to have a wrong
impression about someone or something’.
[10]
Ibid. ‘Confusion’ is defined
as: ‘1 uncertainty about what is happening, intended or required.
[A] situation of panic or disorder
.
A disorderly jumble. 2 the state of being bewildered. [T]he
mistaking of one person or thing for another’.
[11]
Parker-Knoll Limited v Knoll
International Limited
[1962]
RPC 265
at 274.
[12]
Century City Apartments
Property Services CC and Another v Century City Property Owners
Association
[2009]
ZASCA 157
;
2010 (3) SA 1
(SCA) (
Century City
)
para 13.
[13]
Roodezandt Ko-Operatiewe
Wynmakery Ltd v Robertson Winery (Pty) Ltd and Another
[2014] ZASCA 173
; 2014 BIP 294 (SCA) para 5.
[14]
Bata Ltd v Face Fashions CC
2001 (1) SA 844
(SCA)
at 850D-F.
[15]
Orange Brand Services Ltd v
Account Works Software (Pty) Ltd
[2013]
ZASCA 158
; 2013 BIP 313 (SCA) para 13.
[16]
The Public Protector v Mail &
Guardian and Others
[2011] ZASCA 108
;
2011 (4) SA 420
(SCA) para 14.
[17]
D Harms
Civil
Procedure in the Supreme Court
(2021) B-6.74;
Club
Mykonos Langebaan Ltd v Langebaan Country Estate Joint Venture and
Others
2009 (3) SA
546
(C) para 65.
[18]
See inter alia
Truworths
Ltd v Primark Holdings
[2018]
ZASCA 108
;
2019 (1) SA 179
(SCA) (
Truworths
Ltd
) paras 27 – 32;
Lotte Confectionary Co
Ltd v Orion Corporation
[2015]
ZAGPPHC 316 para 20; and
Cochrane
Steel Products (Pty) Ltd v M-Systems Group (Pty) Ltd and Another
[2016] ZASCA 74; [2016] 3 All SA 345 (SCA); 2016 (6) SA 1 (SCA).
[19]
D Harms fn 17;
Langham
and Another, NNO v Milne, NO and Others
1961 (1) SA 811 (N) at 816C-G.
[20]
Slatterie v Pooley
(1840) 6 M & W 664 (151 ER 579) cited
in
Makhathini v Road
Accident Fund
[2001]
ZASCA 120
;
2002 (1) SA 511
para 21.
[21]
Traut v Fiorine and Another
[2007] 4 All SA 1317
(C) para 35 citing with the approval the
following from
LAWSA
,
Vol 3(1)
(1st
re-issue, paragraph 137):
‘
In
dealing with the Applicant’s allegations of fact, the Respondent
should bear in mind that the affidavit is not a pleading and
that a
statement of lack of knowledge coupled with a challenge to Applicant
to prove part of his case does not amount to a denial
of the
averments of the Applicant. It follows that failure to deal at all
with an allegation by the Applicant amounts to an admission
of such
allegation. It is normally not sufficient for the Respondent to
content himself with a bare and unsubstantiated denial.’
[22]
Chantelle v Designer Group
(Pty) Ltd
[2015]
ZAGPPHC 222 para 72.
## [23]LA
Group Limited and Another v B & J Meltz (Pty) Limited and Others[2005] ZAGPHC 23.
[23]
LA
Group Limited and Another v B & J Meltz (Pty) Limited and Others
[2005] ZAGPHC 23.
[24]
Ibid paras 38 and 39.
[25]
Century City
fn
12 para 15.
[26]
10 Royal Berkshire Polo Club
Trade Mark
[2001]
R.P.C. 32.
[27]
R
v Johnstone
[2003]
1 WLR 1736
para
13.
[28]
Scandecor
Developments AB v Scandecor Marketing AV & Others
[2001]
UKHL 21
,
[2002] FSR 122
(HL) para 16. (Cited with approval in
AM
Moolla Group Ltd and Others v Gap Inc and Others
[2005] ZASCA 72
;
[2005] 4 All SA 245
(SCA) para 38 (
AM
Moolla
).)
[29]
Anabi Blanga v EUIPO —
Polo/Lauren (HPC POLO)
(Case
T-657/17) - 20 June 2018.
[30]
Fischer and Another v
Ramahlele and Others
[2014] ZASCA 88
;
2014 (4) SA 614
(SCA);
[2014] 3 All SA 395
(SCA)
paras 13 and 14.
[31]
Royal County of Berkshire
Polo Club
fn 4 para
28.
[32]
See ibid para 21.
[33]
Apple
Corps Ltd v Apple Computer Inc
[2006] EWHC 996
(Ch) para 90.
[34]
See paragraph 200 of the
judgment of Schippers JA.
[35]
Beecham Group Plc and Another
v Triomed (Pty) Ltd
[2002]
ZASCA 109
;
2003 (3) SA 639
(SCA) para 7. See for example
Royal
County of Berkshire Polo Club
fn
4 above.
[36]
Laugh It Off Promotions CC v
South African Breweries International (Finance) BV t/a Sabmark
International
[2004]
ZASCA 76
;
[2004] 4 All SA 151
para
19.
[37]
R v Johnstone
[2003]
1 WLR 1736
para
63.
## [38]On-line
Lottery Services (Pty) Ltd v National Lotteries Board and Another[2009] ZASCA 86; [2009] 4 All SA 470 (SCA); 2010 (5) SA 349 (SCA)
(On-line
Lottery)
para 13.
[38]
On-line
Lottery Services (Pty) Ltd v National Lotteries Board and Another
[2009] ZASCA 86; [2009] 4 All SA 470 (SCA); 2010 (5) SA 349 (SCA)
(
On-line
Lottery
)
para 13.
[39]
Pepkor Retail (Proprietary)
Limited v Truworths Limited
[2016] ZASCA 146
para 15 (
Pepkor
Retail
).
## [40]Ibid
para 15.
[40]
Ibid
para 15.
[41]
The Canadian Shredded Wheat
Co Ltd v Kellogg Co of Canada Ltd
[1938]
55 RPC 125
at
145 (cited with approval in
On-line
Lottery
fn 38 para
16).
[42]
Century City
fn
12 paras 30 – 31.
[43]
Peek & Cloppenburg KG’s
Application
[2006]
ETMR 33
para
34 (cited in
Century
City
fn 12 para 31).
[44]
Century City
fn
12 para 31.
[45]
Yuppiechef
Holdings (Pty) Ltd v Yuppie Gadgets Holdings (Pty) Ltd
2016
ZASCA 118
para
38;
Quad
Africa Energy (Pty) Ltd v The Sugarless Company (Pty) Ltd and
Another
[2020] ZASCA 37
;
[2020] 2 All SA 687
(SCA);
2020 (6) SA 90
(SCA) para 15. See also
Pepkor
Retail
fn
39.
[46]
I borrow from Trollip JA, who
was dealing with the mark ‘Meester’ in
Distillers
Corporation (SA) Ltd v SA Breweries Ltd and Another; Oude Meester
Groep Bpk and Another v SA Breweries Ltd
1976
(3) SA 514
(A)
at 552H-553C. He added:
‘
It is, like its
English equivalent, Master, an ordinary, well known word to be found
in any dictionary. As a noun it ordinarily
connotes a superior
person of knowledge, experience, competence, skill, or authority;
therefore, when used in a trade mark in relation
to goods, normally
it impliedly lauds the quality of those goods. The same commendation
is usually conveyed when it is used adjectivally
of a person; and
when so used of a thing, that the thing is made by a “master”.
It is understandable, therefore, that the word
is often used as part
of a trade mark. Evidence was adduced for Breweries indicating that
some 50 trade marks on the register contain
Master or Meester as
part of the mark, in many cases the right to the exclusive use of
the word being disclaimed. In
International
Harvester Company’s Application
,
(1953)
70 R.P.C. 141
,
the hearing officer, in giving judgment, mentioned that “in the
past few years” the Register in England had received some
300
applications for registering compound words as trade marks which
terminated in “master”. All the above information (which
is
admissible for the present enquiry ─ see
Coca-Cola
Co. of Canada Ltd. V Pepsi-Cola Co. of Canada Ltd.,
59
R.P.C. 127
(P.C.)
at p. 1331. 28-51) shows that, not only in popular parlance, but in
trade parlance too, Meester is an ordinary, well known,
laudatory
word, not inherently distinctive or characteristic of the goods in
respect of which it is used’.
[47]
https://www.collinsdictionary.com/dictionary/english/polo
.
[48]
https://www.collinsdictionary.com/dictionary/english/polo
.
[49]
https://www.merriam-webster.com/dictionary/polo
.
[50]
https://dictionary.cambridge.org/collocation/english/polo
.
[51]
Pepkor Retail
fn
39 para 18.
[52]
Ibid
para 19.
[53]
Ibid para 21.
[54]
First National Bank of
Southern Africa Ltd v Barclays Bank Plc and Another
[2003]
ZASCA 12
;
[2003] 2 All SA 1
(SCA) para 15.
[55]
Ibid.
[56]
AM
Moolla
fn
28 para 26.
[57]
Section 27 of the Act headed
‘Removal from register on ground of non-use’, provides:
‘
(1) Subject to the provisions
of sections 13 and 70(2), a registered trade mark may, on
application to the court, or, at the option
of the applicant and
subject to the provisions of section 59 and in the prescribed
manner, to the registrar by any interested person,
be removed from
the register in respect of any of the goods or services in respect
of which it is registered, on the ground either
–
(a)
that the trade mark was
registered without any
bona
fide
intention on the
part of the applicant for registration that it should be used in
relation to those goods or services by him or
any person permitted
to use the trade mark as contemplated by section 38, and that there
has in fact been no
bona
fide
use of the trade
mark in relation to those goods or services by any proprietor
thereof or any person so permitted for the time
being up to the date
three months before the date of the application;
(b)
that up to the date three months
before the date of the application, a continuous period of five
years or longer has elapsed from
the date of issue of the
certificate of registration during which the trade mark was
registered and during which there was no
bona
fide
use thereof in
relation to those goods or services by any proprietor thereof or any
person permitted to use the trade mark as contemplated
in section 38
during the period concerned’.
[58]
Minister of Land Affairs and
Agriculture and Others v D & F Wevell Trust and Others
[2007] ZASCA 153
;
2008 (2) SA 184
(SCA) para 43.
[59]
Transnet Ltd v Rubenstein
[2005] ZASCA 60
;
[2005] 3 All SA 425
(SCA) para 28.
[60]
Global Environmental Trust
and Others v Tendele Coal Mining (Pty) Ltd and Others
[2021] ZASCA 13
;
[2021] 2 All SA 1
(SCA) para 95.
[61]
Fischer and Another v
Ramahlele and Others
fn 30 para 12.
[62]
Truworths
Ltd
fn 18
para
61 [footnotes omitted].
[63]
S
27(3) of the Act reads:
‘
In
the case of an application in terms of paragraph
(a)
or
(b)
of subsection (1) the onus of proving, if alleged, that there has
been relevant use of the trade mark shall rest upon the proprietor
thereof.’
## [64]New
Balance Athletic Shoe Inc v Dajee NO and Others[2012] ZASCA 3 para 17.
[64]
New
Balance Athletic Shoe Inc v Dajee NO and Others
[2012] ZASCA 3 para 17.
[65]
Ibid para 22.
[66]
Roodezandt Ko-operatiewe
Wynmakery Ltd v Robertson Winery (Pty) Ltd
[2014] ZASCA 173
; 2014 BIP 294 (SCA) para 14.
[67]
Section 42 of the Trade Marks
Act 62 of 1963 provided in relevant part:
‘
In
all legal proceedings relating to trade mark registered in Part A of
the register . . . The original registration of the trade
mark in
Part A of the register shall, after the expiration of seven years
from the date of that registration, be taken to be valid
in all
respects unless
(a)
registration was obtained
by fraud; or
(b)
the trade mark offends
against the provisions of either section sixteen or section 41.’
[68]
C E Webster and I Joubert
Webster and Page South
African Law of Trade Marks
Service Issue 21 4 ed para 13.14.
[69]
Mars Incorporated v Cadbury
(Swaziland) (Pty) Ltd
[2000] ZASCA 36
;
2000 (4) SA 1010
(SCA) para 10.
[70]
Die Bergkelder Bpk v
Vredendal Koöp Wynmakery and Others
[2006] ZASCA 5
;
2006 (4) SA 275
(SCA) para 14.
[71]
On-line Lottery Services v
National Lotteries Board
[2009]
ZASCA 86
;
2010 (5) SA 349
(SCA) (
On-line
Lottery
) paras 13 and
15.
[72]
The
C
anadian
Shredded Wheat Co Ltd v Kellogg Co of Canada Ltd
(1938) 55 RPC 125
(PC) (
Canadian
Shredded Wheat Co
),
affirmed in
On-line
Lottery
para 16.
[73]
Pepkor Retail (Proprietary)
Limited v Truworths Limited
[2016] ZASCA 146
para 16.
[74]
Orange Brand Services Ltd v
Account Works Software (Pty) Ltd
2013
BIP 313 (SCA) (
Orange
Brand Services
) para
12.
[75]
Beecham Group Plc and others
v Triomed (Pty) Ltd
[2002] ZASCA 109
,
[2002] 4 All SA 193
(SCA) (
Beecham
Group Plc
) para 20.
[76]
British Sugar Plc v James
Robertson & Sons Ltd
[1996] RPC 281
(Ch D) (
British
Sugar Plc
) at
305-306.
[77]
British Sugar
Plc
fn 76 at 302.
[78]
First National Bank of
Southern Africa v Barclays Bank Plc
[2003] ZASCA 12
;
[2003] 2 All SA 1
para 15.
[79]
Canadian Shredded Wheat Co
fn
72 at 145.
[80]
August Storck KG v Office for
Harmonisation in the Internal Market (Trademarks and Designs) (OHIM)
10.11. 2004 Case T-402/02 para 79.
[81]
The references to
Chiemsee,
Philips
and
Shape
of a beer bottle
are
:
Windsurfing Chiemsee
Produktions- und Vertriebs GmBH (WSC) v Boots-und Segelzubehör
Walter Huber and Attenberger
4.5. 1999 Cases C-108/97 and C-109/97;
Koninklijke
Philips Electronics NV v Remington Consumer Products Ltd
18.6.2002 Case C-299/9; and
Eurocermex
v OHIM (Shape of a beer bottle)
[2004] ECR II-1391
Case T-305/02.
[82]
Cadbury (Pty) Ltd v Beacon
Sweets and Chocolates (Pty) Ltd and Another
1998 (1) SA 59
(T) (
Cadbury
)
para 12; C E Webster and I Joubert
Webster
and Page South African Law of Trade Marks
Service Issue 21 4 ed at 3-48 (14) para 13.17.1.
[83]
British Sugar Plc
fn 76 at 302.
[84]
Judgment of the General Court of
20 June 2018 -
Anabi
Blanga v EUIPO — Polo/Lauren (HPC POLO)
(Case
T-657/17) (
Blanga
).
[85]
The grounds of opposition were
based on Articles 8(1)
(b)
and 8(5) of the European Union
Trade Mark Regulations (EUTMR
). Under
Article 8(1)
(b)
a trade mark applied for shall not be registered upon opposition by
the proprietor of an earlier mark, if there exists a likelihood
of
confusion on the part of the public, because of its identity with or
similarity to the earlier trade mark or the goods and services
covered by the trade marks. In terms of Article 8(5), upon
opposition, the trade mark applied for shall not be registered where
use of the trade mark applied for would take unfair advantage of, or
be detrimental to, the distinctive character or repute of
the
earlier trade mark.
[86]
Blanga
fn 84 paras 8-10.
[87]
Ibid fn 84 paras 8-10.
[88]
Ibid fn 84 paras 29 and 30.
[89]
Ibid fn 84 paras 35 and 36.
[90]
Jeremy Phillips
Trade
Mark Law, A Practical Anatomy
(2003, Oxford) at 113.
[91]
Decision of the First Board of
Appeal of EUIPO of 14 June 2017 (Case R 2368/2016-1) para 26.
[92]
Ibid para 28.
[93]
I O Tech Manufacturing (Pty)
Ltd v Gallagher Group Ltd
[2013] ZASCA 180
;
[2014] 2 All SA 134
(SCA) para 9.
[94]
Vulcan Rubber Works v South
African Railways and Harbours
1958
(3) SA 285
(A) (
Vulcan
Rubber Works
) at
296F;
S v Ndhlovu
and Others
2002
(6) SA 305
(SCA) (
Ndhlovu
)
at 316C-D.
[95]
Blanga
fn
84 para 33.
[96]
Ibid fn 84 para 38.
[97]
Verimark
(Pty)
Ltd
v
Bayerische Motoren Werke
AktienGesellschaft
;
Bayersiche
Motoren Werken
AktienGesellschaft
v
Verimark
(Pty)
Ltd
[2007]
ZASCA 53
;
2007 (6)
SA
263
(SCA)
paras
6 and 7.
[98]
C E Webster and I Joubert
Webster and Page South
African Law of Trade Marks
Service Issue 21 4 ed at 3-48 (14) para 3.43.
[99]
Century City Apartments
Property Services CC and Others v Century Property Owners'
Association
[2009]
ZASCA 157
;
2010 (3) SA 1
(SCA) para 30.
[100]
Section 27(1)
(b)
of the Act, in relevant part, provides:
‘
. . . [A] registered trade
mark may, on application to the court, . . . be removed from the
register in respect of any of the goods
or services in respect of
which it is registered on the ground . . . that up to the date three
months before the date of the application,
a continuous period of
five years or longer has elapsed from the date of issue of the
certificate of registration during which
the trade mark was
registered and during which there was no
bona
fide
use thereof in
relation to those goods or services by any proprietor thereof or any
person permitted to use the trade mark as contemplated
in section 38
during the period concerned.’
[101]
C E Webster and I Joubert
Webster and Page South
African Law of Trade Marks
Service Issue 21 4 ed para 13.2.
[102]
A M Moolla Group Ltd and
Others v The Gap Inc and Others
[2005] ZASCA 72
;
[2005] 4 All SA 245
;
2005 (6) SA 568
(SCA) (
A
M Moolla Group
).
[103]
A M Moolla Group Ltd
fn 102 para 42, citing Steyn CJ in
Gulf
Oil Corporation v Rembrandt Fabrikante en Handelars (Edms) Bpk
1963
(3) SA 341
(A) at 347B-C.
[104]
Westminster Tobacco Company
(Pty) Ltd v Philip Morris Products S.A. and Others
[2017] ZASCA 10
;
[2017] 2 All SA 389
(SCA) para 7.
[105]
Ibid.
[106]
New Balance Athletic Shoe Inc
v Dajee and Others NNO
[2012] ZASCA 3
(SCA) paras 16-17.
[107]
In terms of s 31(1) of the Act,
when use of a registered trade mark is required to be proved for any
purpose, a court may accept
proof of the use of an associated
registered trade mark or of the trade mark with additions or
alterations not substantially affecting
its identity, as equivalent
to proof of the use required to be proved.
[108]
Ocean Accident and Guarantee
Corporation Ltd v Koch
1963 (4) SA 147
(A) at 159A-D, affirmed in
Kruger
v National Director of Public Prosecutions
[2019] ZACC 13
;
2019 (6) BCLR 703
(CC) para 79.
[109]
Distillers’ Corporation
(SA) Ltd v SA Breweries Ltd and Another; Oude Meester Groep Bpk and
Another v SA Breweries Ltd
1976 (3) SA 514
(A) at 539B-D.
[110]
Section 27(1)
(a)
inter alia reads:
‘
.
. . [A] registered trade mark may, on application to the court . . .
be removed from the register in respect of any of the goods
or
services in respect of which it is registered, on the ground . . .
that the trade mark was registered without any
bona
fide
intention on the
part of the applicant for registration that it should be used in
relation to those goods or services by him .
. . and that there has
in fact been no
bona
fide
use of the trade
mark in relation to those goods or services by any proprietor
thereof . . . up to the date three months before
the date of the
application.’
[111]
Gulf Oil Corporation v
Rembrandt Fabrikante en Handelaars (Edms) Bpk
1963 (2) SA 10
(T) at 24A, approved in
Arjo
Wiggins Ltd v Idem (Pty) Ltd and Another
[2002] 2 All SA 147
(A);
2002 (1) SA 591
(SCA) para 6.
[112]
Stable Brands (Pty) Ltd
v LA Group (Pty) Ltd
2020
JDR 0311 (GP) para 65.
[113]
C E Webster and I Joubert
Webster and Page South
African Law of Trade Marks
Service Issue 21 4 ed para 3.56.
[114]
J Mellor QC
et
al
,
Kerly’s
Law of Trade Marks and Trade Names
(2018, 16 ed. London: Sweet & Maxwell) paras 12-156 to 12-157.
[115]
Ibid paras 12-158-12-159.
[116]
Anne Frank Trade Mark
[1998] 12 RPC 379.
[117]
Ibid at 394:10-20.
[118]
Section 10(14) and (15) of the
Act provides:
Or ‘
10
Unregistrable
trade marks
The following marks
shall not be registered as trade marks or, if registered, shall,
subject to the provisions of sections 3 and
70, be liable to be
removed from the register:
. . .
(14)
subject
to the provisions of section 14, a mark which is identical to a
registered trade mark belonging to a different
proprietor or so
similar thereto that the use thereof in relation to goods or
services in respect of which it is sought to be registered
and which
are the same as or similar to the goods or services in respect of
which such trade mark is registered, would be likely
to deceive or
cause confusion, unless the proprietor of such trade mark consents
to the registration of such mark.
(15) subject to the
provisions of section 14 and paragraph (16), a mark which is
identical to a mark which is the subject
of an earlier application
by a different person, or so similar thereto that the use thereof in
relation to goods or services in
respect of which it is sought to be
registered and which are the same as or similar to the goods or
services in respect of which
the mark in respect of which the
earlier application is made, would be likely to deceive or cause
confusion, unless the person
making the earlier application consents
to the registration of such mark.’
## [119]Orange
Brand Services Limitedfn
74 para 8.
[119]
Orange
Brand Services Limited
fn
74 para 8.
[120]
The parties to such an agreement
may think that by doing this the reputation attaching to both their
marks will be enhanced.
[121]
Apple Corps Limited v Apple
Computer Inc
[2006]
EWHC 996 (Ch).
[122]
Fn 112 para 63.
[123]
Cadbury
fn
82 para 18.
[124]
S v Shaik
[2006] ZASCA 105
;
2007 (1) SA 240
(SCA) para 170, affirmed in
S
v Molimi
[2008] ZACC
2
;
2008 (3) SA 608
(CC);
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector including
Organs
of State v Zuma and Others
[2021] ZACC 18
; 2021 (9) BCLR (CC) (
Judicial
Commission of Inquiry into Allegations of State Capture
).
[125]
Vulcan Rubber Works
fn
94 at 296G-F.
[126]
Ndhlovu
fn
94 at paras 13-14. Most recently, the Constitutional Court in
Judicial Commission of
Inquiry into Allegations of State Capture
para 23, affirmed the principle in
Ndhlovu
(para 15) that ‘the intention behind section 3(1)
(c)
of the [Law of Evidence Amendment Act 45 of 1988] is to create
flexibility so that hearsay evidence may be admitted when the
interests
of justice, and indeed common sense, demand it.’
sino noindex
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