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2010 MarsdenLR 3693

HIGH COURT MALAYA KUALA LUMPUR
LAM SOON EDIBLE SDN BHD – Appellant
Versus
HUP SENG PERUSAHAAN MAKANAN (M) SDN BHD – Respondent
[Originating Motion No: D5 (IP)-25-7-2009]



Petitioner Advocates:HL Yau,Josephie Sui,Abigail Lai,Harjinder Kaur ,Respondent Advocate: Michael Seo,Olivia Khoo

The applicant must establish a prima facie case of non-use of a trademark, failing which there is no burden on the respondent to prove use.

Headnote:(A) Trade Marks Act 1976 - Sections 45 and 46 - The applicant seeks to expunge the respondent's trademark 'NATURELL' based on alleged non-use for three years prior to the application. The applicant asserts that it has the requisite locus standi as an aggrieved person due to its registered mark 'NATUREL'. (Para 9)

(B) The applicant claims non-use by the respondent; however, the court identifies that the applicant has not met the burden of establishing a prima facie case of non-use, blaming insufficient evidence and failure to meet admissibility standards. (Para 15)

(C) The respondent demonstrated sufficient use of the 'NATURELL' mark, including advertising, sales, and preparations for re-launching the product, thus countering the claim of non-use. (Para 21)

Facts of the case:
The applicant has been in the palm oil and consumer goods business since 1973 while being the owner of 'NATUREL'. The respondent registered 'NATURELL' in 1997, which led to the applicant's application to have it expunged due to claimed non-use.

Findings of Court:
The applicant failed to establish a prima facie case for non-use; thus, the application to expunge was dismissed.

Issues: Determination of the applicant's status as a 'person aggrieved' and the proof of non-use of the trademark by the respondent.

Ratio Decidendi: The court concluded that the applicant had not demonstrated a prima facie case of non-use, citing deficient evidence and establishing that the respondent had been actively using the mark.

Result: Application dismissed with costs.

Table of Content
1. registration and non-use of trademarks (Para 1 , 2 , 3 , 4 , 5)
2. locus standi and non-use argument (Para 6 , 8 , 9 , 10)
3. admissibility of survey evidence (Para 11 , 12 , 13 , 14)
4. decision on trademark validity and conclusion (Para 15 , 21)
5. evidence of active use of trademarks (Para 18 , 19 , 20)
Azahar Mohamed J:

[1] This is the applicant's application that the Malaysian Trade Mark Registration No. 97012526 for "NATURELL" in Class 30 be expunged and removed from the Register of Trade Marks, pursuant to ss 45 and/or 46 of the Trade Marks Act 1976 (the Act).

[2] The applicant is in the business of processing and refining of palm oil, manufacturing, distributing, supplying, selling and offering for supply various consumer goods in Malaysia in its current name since 1973 and prior to that in the name of Lam Soon Oil and Soap Manufacturing Sdn Bhd.

[3] The applicant is the owner of the trademark "NATUREL" (hereinafter referred to as the "said trade mark") included in Class 29 products within the applicant's range of products bearing Registration No 91008179.

[4] The applicant has been using the said trademark on its products since the late 1980's. The sales volume and promotional and advertising expenditure of the said trademark are clearly demonstrated in its supporting affidavit.

[5] The respondent is the registered proprietor of the trademark "NATURELL" (hereinafter referred to as the "respondent's trade mark") registered under Class 30 bearing Registration No 97012526.

[6] The applicant, in its attempt to extend and market the use of its trade Mark to include Class 30 products was unsuccessful when its application to register the "Naturel & Device" trade mark was objected, inter alia, on the basis that the mark is identical or confusingly similar to the respondent's trade mark, and as such, contrary to s 14(1)(a), s 19(1) and s 19(2) of the Act. The applicant filed a written submission against the examiner's objection on 29 September 2008 and is pending the examiner's decision.

[7] The respondent's trademark "NATURELL" registered under Class 30 bearing Registration No 97012526 since 4 September 1997 is the subject matter, which was relied on by the examiner in raising an objection to the applicant's application.

[8] Now, the main basis for the applicant in filing this application is due to the non-use by the respondent for any of the respondent's products under the Class 30 range of products.

[9] The first question for determination is whether the applicant is a person aggrieved by the respondent's trademark "NATURELL". Learned counsel for the respondent argued that the applicant did not have the locus standi to file the present action, as the applicant was not a "person aggrieved" within s 46(1) of the Act. He referred to the judgment of the Federal Court in McLaren International Limited v. Lim Yat Meen , 2009 MarsdenLR 960 . He argued that since the decision of the Federal Court, "persons aggrieved" was given a more stringent approach. It is true in that case, the Federal Court held that it could not be right the mere filing of its application can confer the necessary locus standi on the applicant for rectifying proceedings. However, the facts in the present case are somewhat different. The applicant has a registered mark "NATUREL" and there has been substantial use of this mark by the applicant in Class 29 products. There is goodwill in the applicant's Class 29 "NATUREL" mark. With the intention to market different products using the applicant's "NATUREL" mark, the applicant had embarked on registering its intended mark in Class 30. The applicant had taken preparatory steps and made the application to register the intended mark. Therefore, the case of McLaren International Limited v. Lim Yat Meen is distinguishable and not applicable on the facts in the present case. In my view, the applicant on the facts of the present case is clearly an aggrieved person as it is substantially interested in having the mar

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