Interlocutory injunctions are rarely granted in trademark and
trade name cases in Canada owing, particularly, to evidence of
irreparable harm – one of the parts of the injunction test
– being examined by Canadian Courts with a very careful
eye.
In a recent decision of the British Columbia Supreme Court, an
interlocutory injunction has notably been granted, restraining a
defendant against using its business name.
The defendant had owned a business known as "Alpha Neon
Ltd.", which made and sold neon signs for approximately 20
years. Alpha Neon Ltd., however, had gone into bankruptcy in
2012.
That same year, the defendant agreed to let the plaintiff
incorporate under the name "Alpha Neon (2012) Ltd.", and
claimed that this consent was conditional on acquiring shares in
the plaintiff's business. There was no evidence to support the
assertion about the shares. The plaintiff was also sold the assets
of the defendant's bankrupt business by order of the Court;
that
