Trade-Mark Licensing In Canada

Canada's Federal Court of Appeal recently issued a decision regarding section 50 of Canada's Trade-Marks Act, the governing provision regarding licensing of a trade-mark. In Spirits International BV v. BCF and Registrar of Trade-marks, 2012 FCA 131, the Court of Appeal set aside the Federal Court's decision from 2011. The lower court decision was an appeal from a summary expungement decision of the Registrar of Trade-marks, wherein the Federal Court upheld the Registrar's decision to expunge the registered trade-mark since the mark had not been used during the relevant time period. The lower court had concluded that the requirements of section 50 had not been met and, as such, the trade-mark owner was not entitled to the benefit of the licensee's use of the mark in Canada.