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2023 MarsdenLR 1030

HIGH COURT MALAYA KUALA LUMPUR
COMMERCIAL MARKETERS AND DISTRIBUTORS SDN BHD – Appellant
Versus
KARELIA TOBACCO COMPANY INC – Respondent
[Originating Summons No: WA-24IP-16-10-2021]



A trademark may be revoked for non-use if an aggrieved person can establish prima facie non-use for three years, shifting the burden to the trademark owner to prove actual use.

Headnote:(A) Trademarks Act, 2019 - Section 46(1) - Revocation of trademark registration for non-use - Plaintiff filed application to revoke Defendant's Marks citing non-use for three years - Court found Plaintiff established prima facie case of non-use and Defendant failed to show use - Plaintiff's Application allowed. (Paras 2, 34)

(B) Aggrieved Person - Definition and criteria for establishing aggrieved status - A person aggrieved must have used their mark or have a genuine intention to use it in trade similar to that of the registered trademark owner. (Paras 18-21)

(C) Burden of Proof - Upon establishing prima facie non-use, the burden shifts to the Defendant to demonstrate actual use of the trademark, which was not done in this case. (Paras 30-33)

Facts of the case:
The Plaintiff, a subsidiary of a tobacco company, sought to revoke the Defendant's trademark registrations due to non-use over the prescribed periods. The Defendant did not contest the application. (Paras 2, 16)

Findings of Court:
The Plaintiff established its status as an aggrieved person and demonstrated prima facie non-use of the Defendant's Marks, while the Defendant failed to provide evidence of use. (Paras 24, 34)

Issues: The main issues were whether the Plaintiff was an aggrieved person and whether it established non-use of the Defendant's Marks. (Paras 18, 24)

Ratio Decidendi: The court emphasized that a person aggrieved is one who has used their mark or has a genuine intention to use it in a similar trade, and that the burden shifts to the Defendant to prove use once non-use is established. (Paras 18-21, 30-33)

Result: Plaintiff's Application allowed.

Judgement Key Points

Key Points: - (!) (!) Section 46(1) grounds for revocation by Court for non-use within three years of notification of registration; or three years’ uninterrupted suspension with no proper reasons (!) . - (!) (!) Three-stage inquiry: (i) aggrieved person, (ii) prima facie non-use for three years, (iii) whether owner has shown use during the period. - (!) (!) (!) Definition and criteria of an aggrieved person: must have used the mark, or have a genuine present intention to use it in trade similar to the registered owner's trade. - (!) (!) Once prima facie non-use is established, burden shifts to the owner to prove actual use; in this case, the defendant did not show use and failed to file affidavits. - (!) (!) Plaintiff established non-use for specified periods (three years from respective dates and the 2018-2021 window); market survey evidence supported non-use. - (!) (!) Plaintiff’s application succeeded; defendant failed to provide any evidence of use. - (!) (!) Practical note on procedural scope: proceeding under s 46, not s 47 (invalidations), and the court limited to revocation under s 46.

What is the test to revoke a trademark registration for non-use under Section 46(1) of the Trademarks Act 2019?

What constitutes an aggrieved person and what are the criteria to establish aggrieved status under Section 46(1)?

What is the burden of proof once prima facie non-use is established, and how is use by the trademark owner determined?


Table of Content
1. trademark registration details and plaintiff's application. (Para 1 , 2 , 3)
2. requirements for revocation under s 46(1). (Para 4 , 5 , 6 , 7)
3. observations on the plaintiff's application and procedural issues. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. criteria for being an aggrieved person. (Para 18 , 19 , 20 , 21 , 22)
5. establishing prima facie non-use and burden of proof. (Para 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33)
6. conclusion and order on the plaintiff's application. (Para 34 , 35)
Azlan Sulaiman JC:

[1] By Trademark Registration Nos 07024580 and 2012004033, the Defendant registered the following trademarks (collectively, "the Defendant's Marks"), both in Class 34 for "cigarettes, tobacco products, matches, smokers' articles, all included in Class 34". The details of the Defendant's Marks are in the Table below:

[2] On 29 October 2021, the Plaintiff filed this Originating Summons ("the Plaintiff's Application") under s 46(1) of the Trademarks Act, 2019 ("the Act"), for an order, inter alia, that the Defendant's Marks be declared invalid and be revoked from the Register of Trademarks.

[3] This is the Judgment in the Plaintiff's Application.

Section 46(1) Of The Act

[4] Section 46(1) (a) and (b) of the Act, under the heading "Revocation of registration by Court as to non-use of trademark", provide:

"(1) The registration of a trademark may be revoked by the Court on an application by an aggrieved person on any of the grounds as follows:

(a) where within a period of three years following the date of issuance of the notification of registration, the trademark has not been put to use in good faith in Malaysia, by the registered proprietor or with his consent, in relation to the goods or services for which the trademark is registered, and there are no proper reasons for non-use;

(b) where the use of the goods or services under paragraph (a) has been suspended for an uninterrupted period of three years, and there are no proper reasons for non-use;"

[5] Under limb (a), the three-year period of non-use in good faith of a trademark is pegged to the "notification of registration". Under s 36(2) of the Act, the Registrar issues such notification of registration to the successful applicant / proprietor. Under s 36(3) of the Act, a certificate of registration is equivalent to the notification of registration issued under s 36(2). The certificate of registration for the Defendant's Marks are dated 12 December 2012 and 8 March 2013.

[6] Thus, for the purpose of limb (a), the Plaintiff would have to show non-use of the Defendant's Marks for the period of three years from those dates.

[7] For limb (b), the Plaintiff would have to show that the use of the goods or services for which the Marks were registered had been suspended from 29 October 2018 to 28 October 2021, being the three-year period leading up to the date the Plaintiff filed the Plaintiff's Application.

The Three Stages Of Inquiry For An Application Under Section 46

[8] An application to revoke a trademark under s 46(1) involves the following three stages of enquiry:

(i) whether the applicant is an aggrieved person, because only aggrieved persons can have recourse to s 46(1);

(ii) whether the applicant had established a prima facie case of non-use of the trademarks sought to be revoked in the goods or services for which the trademark was registered, for the three-year period in question; and

(iii) if stages (i) and (ii) have been successfully navigated by the applicant, whether the registered trademark owner has shown use of the trademarks sought to be revoked in the goods or services for which the trademark was registered.

Two Observations

[9] Before proceeding to the first stage, there are two observations I wish to make.

[10] Firstly, as stated in the heading under which it appears in the Act, s 46(1) of the Act is specifically for revocation of the registration of a trademark by Court for non-use. On a successful application under s 46, the Cou

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