Dragona Carpet Supplies Mississauga Inc. v. Dragona Carpet Supplies Ltd.

Dragona Carpet Supplies Mississauga Inc. v. Dragona Carpet Supplies Ltd.

Appeal dismissed because the Federal Court’s factual findings were supported by the evidence: goodwill overlapped between the parties, an oral licence and sufficient control by Dragona Scarborough under s.50(1) caused any goodwill earned by the appellant to be deemed that of Dragona Scarborough, and respondents’ use...

Source-derived case information.

Citation
2023 FCA 228
Parties
Appellant: Dragona Carpet Supplies Mississauga Inc.; Respondent: Dragona Carpet Supplies Ltd.; Respondent: FlooReno Building Supplies Inc.
Court
Federal Court of Appeal
Jurisdiction
Canada
Judgment Date
22 November 2023
Procedural Posture
Trademark / Passing Off Appeal / Appeal to the Federal Court of Appeal From Federal Court Decision (a 202 22)
Outcome
Appeal dismissed with costs.
Legal Topics
Goodwill Assessment, Misrepresentation, Subsection 50(1) Control, Concurrent Use, Expungement
Source Language
en
Trademark Law Unfair Competition Passing Off Licensing Law Goodwill Assessment Misrepresentation Subsection 50(1) Control Concurrent Use +1 more

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Parties

Dragona Carpet Supplies Mississauga Inc.

Appellant

Dragona Carpet Supplies Ltd.

Respondent

FlooReno Building Supplies Inc.

Respondent

Procedural Posture

Trademark / Passing Off Appeal / Appeal to the Federal Court of Appeal From Federal Court Decision (a 202 22)

  1. 1 Whether the Federal Court erred in assessing goodwill and failing to identify relevant customer classes
  2. 2 Whether an oral licence existed and whether the owner exercised sufficient control over quality under s.50(1) of the Trademarks Act
  3. 3 Whether respondents’ use of the DRAGONA mark amounted to misrepresentation for passing off

Ratio Decidendi

Appeal dismissed because the Federal Court’s factual findings were supported by the evidence: goodwill overlapped between the parties, an oral licence and sufficient control by Dragona Scarborough under s.50(1) caused any goodwill earned by the appellant to be deemed that of Dragona Scarborough, and respondents’ use of the mark in Mississauga constituted lawful use by the owner (competition), not actionable misrepresentation for passing off.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs